Document:

EX-4.7

 

Exhibit 4.7

 

RSC HOLDINGS INC.

FORM OF AMENDED AND RESTATED

STOCKHOLDERS AGREEMENT

Dated as of [ ], 2007

 

 

 

Table of Contents

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page	 
	ARTICLE I	GOVERNANCE AND MANAGEMENT OF THE COMPANY	 	 	2	 
	1.1	 	Board of Directors/Committees	 	 	2	 
	1.2	 	Director Fees and Expenses	 	 	4	 
	1.3	 	Approvals	 	 	4	 
	1.4	 	Certain Actions/Voting Proxy	 	 	5	 
	1.5	 	Termination of Rights	 	 	5	 
	1.6	 	Information/Access	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE II	TRANSFERS/CERTAIN COVENANTS	 	 	8	 
	2.1	 	Transfer Restrictions	 	 	8	 
	2.2	 	Tag-Along Rights	 	 	8	 
	2.3	 	[Reserved]	 	 	11	 
	2.4	 	Legend	 	 	11	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE III	RESERVED	 	 	12	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE IV	REGISTRATION RIGHTS	 	 	12	 
	4.1	 	Piggyback Registration Rights	 	 	12	 
	4.2	 	Demand Registrations	 	 	14	 
	4.3	 	Registration Procedures	 	 	16	 
	4.4	 	Registration Expenses; Indemnification	 	 	20	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE V	DEFINITIONS	 	 	24	 
	5.1	 	Certain Definitions	 	 	24	 
	5.2	 	Terms Generally	 	 	31	 
	 
	 	 	 	 	 	 	 	 	 	 
	ARTICLE VI	MISCELLANEOUS	 	 	31	 
	6.1	 	Termination	 	 	31	 
	6.2	 	Effective Time	 	 	31	 
	6.3	 	Confidentiality	 	 	32	 
	6.4	 	Compliance	 	 	32	 
	6.5	 	Restrictions on Other Agreements; Conflicts	 	 	32	 
	6.6	 	Further Assurances	 	 	33	 
	6.7	 	No Recourse; No Stockholder Duties	 	 	33	 
	6.8	 	Amendment; Waivers, etc	 	 	34	 
	6.9	 	Assignment	 	 	34	 
	6.10	 	Binding Effect	 	 	34	 
	6.11	 	No Third Party Beneficiaries	 	 	34	 
	6.12	 	Notices	 	 	34	 
	6.13	 	Severability	 	 	36	 
	6.14	 	Headings	 	 	36	 
	6.15	 	Entire Agreement	 	 	36	 
	6.16	 	Governing Law	 	 	36	 
	 
	 	 	 	 	 	 	 	 	 	 

 i 

 

 

Table of Contents

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	6.17
	 	Consent to Jurisdiction	 	 	37	 
	6.18
	 	Waiver of Jury Trial	 	 	37	 
	6.19
	 	Enforcement	 	 	37	 
	6.20
	 	Counterparts; Facsimile Signatures	 	 	37	 

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     AMENDED AND RESTATED STOCKHOLDERS AGREEMENT, dated as of [ ], 2007, among (i) RSC
Holdings Inc., a Delaware corporation (the “Company”), (ii) each Stockholder listed
in the signature pages hereof and each other Stockholder that, immediately prior to the Effective
Time, is a party to the Original Agreement and (iii) any other Stockholder that may become
a party to this Agreement after the date and pursuant to the terms hereof. Capitalized terms used
herein without definition shall have the meanings set forth in Section 5.1.

W I T N E S S E T H:

     WHEREAS, pursuant to a Recapitalization Agreement, dated as of October 6, 2006 (the
“Recapitalization Agreement”), among Atlas Copco AB, a company organized under the laws of
Sweden, the Company, Atlas Copco Finance S.à.r.l., a company organized under the laws of Luxembourg
(“ACF”), RSC Acquisition LLC, a Delaware limited liability company (“Ripplewood
1”), RSC Acquisition II LLC, a Delaware limited liability company (“Ripplewood 2”),
OHCP II RSC, LLC, a Delaware limited liability company (“Oak Hill 1”), OHCMP II RSC, LLC, a
Delaware limited liability company (“Oak Hill 2”) and OHCP II RSC COI, LLC, a Delaware
limited liability company (“Oak Hill 3” and, together with Ripplewood 1, Ripplewood 2, Oak
Hill 1 and Oak Hill 2, the “Investors”, and each of them an “Investor”), the
Investors purchased 20,471 Shares, representing 85.47% of the total outstanding common stock of the
Company, and ACF retained 3,480 Shares, representing 14.53% of the total outstanding common stock
of the Company (such transaction, the “Acquisition”);

     WHEREAS, following the Closing, each Share was reclassified into 100 Shares and following such
reclassification, certain employees of the Company and its Subsidiaries, or trusts for the benefit
of such employees, purchased 26,366.30 Shares, representing approximately 1% of the total
outstanding common stock of the Company;

     WHEREAS, in connection with the Acquisition, the Company entered into a Stockholders
Agreement, dated as of November 27, 2006, with its stockholders as of that date (the “Original
Agreement”);

     WHEREAS, concurrently with the effectiveness of this Agreement, the Company has consummated an
initial Public Offering of its common stock (the “IPO”); and

     WHEREAS, the Principal Investors, acting pursuant to Section 6.8 of the Original Agreement,
desire to amend and restate the Original Agreement as provided herein to set forth the respective
rights and obligations of the parties to this Agreement following the IPO.

     NOW, THEREFORE, in consideration of the mutual agreements contained herein, the parties hereto
hereby agree as follows:

 

 

ARTICLE I

GOVERNANCE AND MANAGEMENT OF THE COMPANY

     1.1 Board of Directors/Committees.

     (a) Board Nominees.

     (i) Prior to a Controlled Company Event. Subject to Section 1.5 and any
rights of the holders of shares of any class or series of preferred stock of the Company to
elect additional members to the board of directors of the Company (the “Board”),
and prior to a Controlled Company Event, the Stockholders and the Company shall take all
Necessary Action to cause the Board to be comprised of up to thirteen directors:

     (A) four of whom shall be designated by Ripplewood (such persons, the “Ripplewood
Nominees”);

     (B) four of whom shall be designated by Oak Hill (such persons, the “Oak Hill
Nominees”, and collectively with the Ripplewood Nominees, the “Investor
Nominees”);

     (C) one of whom shall be Mark Cohen;

     (D) three of whom shall be Independent Directors, each of which shall be designated by
Majority Approval; and

     (E) unless otherwise agreed by Majority Approval, one of whom shall be the Chief
Executive Officer (the “CEO Nominee”).

     (ii) Following a Controlled Company Event. If, following a Controlled Company
Event and after giving effect to Section 1.5, the membership of the Board as designated in
accordance with Section 1.1(a)(i) would not comply with the requirements of Applicable Law
(after giving effect to applicable transition periods, if any), (A) the number of
Ripplewood Nominees and Oak Hill Nominees shall each be reduced by two (but in no event
reduced to less than one except as provided in Section 1.5), (B) each Principal
Investor shall cause two of its Investor Nominees to resign, and (C) the directors
remaining in office shall elect Independent Directors to fill each of the vacancies created
by such resignations. If, after giving effect to the foregoing, the membership of the
Board would still not comply with the requirements of Applicable Law (after giving effect
to applicable transition periods, if any), the Company and the Stockholders will take all
Necessary Action to cause the Company to comply with Applicable Law with respect to the
composition of the Board (which may include the election of additional Independent
Directors as members of the Board and Committees,

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either as a result of an increase in the membership of the Board or the pro rata
reduction in the number of Investor Nominees and their resignation from the Board or
Committees, or both).

     (b) Classified Board. The certificate of incorporation and the by-laws of the Company
shall provide that the directors of the Company, subject to any rights of the holders of shares of
any class or series of preferred stock of the Company, shall be classified with respect to the time
for which they severally hold office into three classes, as nearly equal in number as possible.
One class’s (“Class I”) term will expire at the first annual meeting of the stockholders
following the date hereof, another class’s (“Class II”) term will expire at the second
annual meeting of the stockholders following the date hereof and another class’s (“Class
III”) term will expire at the third annual meeting of stockholders following the date hereof;
provided that the term of each director shall continue until the election and qualification
of a successor and be subject to such director’s earlier death, resignation or removal.
Thereafter, at each annual meeting of stockholders of the Corporation, subject to any rights of the
holders of shares of any class or series of preferred stock of the Company, the successors of the
directors whose term expires at that meeting shall be elected to hold office for a term expiring at
the annual meeting of stockholders held in the third year following the year of their election.
The Investor Nominees shall be allocated among the three classes of the Board as follows:
(i) one Ripplewood Nominee shall be allocated to each of Class I and Class II and two
Ripplewood Nominees shall be allocated to Class III; and (ii) one Oak Hill Nominee shall be
allocated to each of Class I and Class II and two Oak Hill Nominees shall be allocated to Class
III; provided that if the number of Investor Nominees is reduced pursuant to Section
1.1(a)(ii) or Section 1.5, upon the resignation of an affected Investor Nominee from a class of the
Board, the right set forth in Section 1.1(d) to designate successor Investor Nominees to such class
shall expire.

     (c) Committees. The by-laws of the Company shall provide for an executive and
governance committee, a compensation committee, an audit committee and such other committees as the
Board may determine (collectively, the “Committees”); provided that, following a
Controlled Company Event, the executive and governance committee shall be renamed the executive
committee and the Committees shall include a nominating and governance committee. Each of the
audit committee and the compensation committee shall consist of at least three directors and each
other Committee shall consist of at least two directors and, subject to Section 1.5, each Principal
Investor shall have the right to designate one member thereof from among the Investor Nominees and
Independent Directors; provided that (i) the membership of each Committee shall
meet the requirements of Applicable Law (after giving effect to applicable transition periods, if
any), and (ii) each Committee shall have such additional members as the Board may
determine, which determination, if made after a Controlled Company Event, shall be made on the
recommendation of the nominating and governance committee. Each

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Committee shall have such powers and responsibilities as the Board may from time to time
authorize.

     (d) Removal and Replacement of Directors. If any Principal Investor provides written
notice to any other Stockholder of such Principal Investor’s determination that there is cause to
remove one or more Investor Nominee of such Principal Investor from the Board and that such
Principal Investor desires to remove such Investor Nominee(s), such Stockholder shall take all
Necessary Action reasonably requested by such Principal Investor to effect such removal. If a
vacancy is created on the Board or a Committee as a result of the death, disability, retirement,
resignation or removal of any Investor Nominee, then the Principal Investor that designated such
Investor Nominee shall have the right to designate such person’s replacement, subject to the final
sentence of Section 1.1(b).

     (e) RSC Board. The Company shall cause the board of directors of RSC Equipment
Rental, Inc., an Arizona corporation and wholly-owned subsidiary of the Company, to at all times be
comprised of the same persons that comprise the Board.

     1.2 Director Fees and Expenses.

     (a) Fees. The Company shall pay to the directors such fees as may be determined by
the Board. No director who is also an employee of the Company or any Company Subsidiary shall be
paid any fee for serving as a director or member of any Committee.

     (b) Expenses. The Company shall cause each non-employee director serving on the
Board, any Committees or any Company Subsidiary board to be reimbursed for all reasonable
out-of-pocket costs and expenses incurred by him or her in connection with such service, including
reasonable travel, lodging and meal expenses.

     1.3 Approvals.

     (a) General. Except as required by Applicable Law, all actions requiring the approval
of the Board shall require the approval of a majority of the directors present at any duly convened
Board meeting or by unanimous written consent of the directors without a meeting, in each case in
accordance with the provisions of the Delaware General Corporation Law and the by-laws of the
Company.

     (b) Quorum/Notice. A quorum for meetings of the Board shall consist of a majority of
the total authorized membership of the Board; provided that, prior to a Controlled Company
Event, such majority includes at least one Investor Nominee of each of the Principal Investors
entitled to designate an Investor Nominee. If a quorum is not achieved at any duly called meeting,
such meeting may be postponed to a time no earlier than 48 hours after written notice of such
postponement has been given to the directors,

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and, at any such postponed meeting, a quorum shall consist of a majority of the total
authorized membership of the Board. Meetings of the Board may be called by the Chairman of the
Board or by any other director at any time; provided that at least 48 hours’ written notice
of such meeting has been provided to the directors or notice thereof has been waived by each
director.

     1.4 Certain Actions/Voting Proxy.

     (a) Each Stockholder shall take all Necessary Action to cause the election, removal and
replacement of directors and members of Committees in the manner contemplated in, and otherwise
give the fullest effect possible to the provisions of this Article I.

     (b) [Reserved.]

     (c) Each Stockholder (other than the Principal Investors) (i) that is a Permitted
Transferee of a Principal Investor hereby irrevocably grants to and appoints the Principal Investor
that is an Affiliate of such Stockholder and (ii) that is not a Person described in clause
(i) hereby irrevocably grants to and appoints the Principal Investors collectively (to act by
unanimous consent) such Stockholder’s proxy and attorney-in-fact (with full power of substitution),
for and in the name, place and stead of such Stockholder, to vote or act by written consent with
respect to such Stockholder’s Voting Securities, and to grant a consent, proxy or approval in
respect of such Voting Securities, in the event that such Stockholder fails at any time to vote or
act by written consent with respect to any of its Voting Securities in the manner agreed by such
Stockholder in this Agreement, in each case in accordance with such Stockholder’s agreements
contained in this Section 1.4 and any other provision of this Agreement. Each Stockholder (other
than the Principal Investors) hereby affirms that the irrevocable proxy set forth in this Section
1.4(c) will be valid for the term of this Agreement and is given to secure the performance of the
obligations of such Stockholder under this Agreement. Each such Stockholder hereby further affirms
that each proxy hereby granted shall be irrevocable and shall be deemed coupled with an interest
and shall extend for the term of this Agreement, or, if earlier, until the last date permitted by
Applicable Law. For the avoidance of doubt, except as expressly contemplated by this Section 1.4,
none of the Stockholders has granted a proxy to any Person to exercise the rights of any such
Stockholder under this Agreement.

     1.5 Termination of Rights. (a) Notwithstanding anything to the contrary in this
Article I, if, at any time, any Principal Investor, together with members of its Principal Investor
Group, shall cease to own a number of Shares equal to at least:

     (i) 35% of the Shares owned by such Principal Investor and members of its Principal
Investor Group on the Closing Date (its “Original Shares”), (A) the number
of directors such Principal Investor shall have the right to nominate pursuant to Section
1.1(a) shall be reduced by three, (B) such Principal Investor

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shall cause three of its Investor Nominees to resign, and (C) the directors
remaining in office shall decrease the size of the Board to eliminate such vacancies; and

     (ii) 10% of its Original Shares, (A) such Principal Investor shall cease to
have the right to designate any directors pursuant to Section 1.1(a) or any right to
designate members of Committees pursuant to Section 1.1(c), (B) such Principal
Investor shall cause its Investor Nominees and Committee designees to resign, and
(C) the directors remaining in office shall decrease the size of the Board to
eliminate such vacancy.

     (b) Notwithstanding anything to the contrary in this Article I, (i) if, at any time,
(A) ACF shall cease to own at least 7.5% of the total Shares outstanding or (B)
Mark Cohen shall be or become a member of a Competitor, ACF shall cause Mark Cohen to resign as a
member of the Board, and (ii) upon the expiration of Mark Cohen’s first term as a member of
the Board or, if earlier, upon the resignation of Mark Cohen as a member of the Board pursuant to
clause (i) of this Section 1.5(b) or otherwise or his earlier death or removal for cause from the
Board, the directors remaining in office shall decrease the size of the Board to eliminate such
vacancy.

     1.6 Information/Access.

     (a) Information. The Company shall provide each Stockholder or its designated
representative with:

     (i) promptly upon completion after the end of each fiscal quarter of the Company for
the first three fiscal quarters of a fiscal year, the consolidated balance sheet of the
Company and its Subsidiaries as at the end of such quarter and the consolidated statements
of income, cash flows and changes in stockholders’ equity for such quarter and the portion
of the fiscal year then ended of the Company and its Subsidiaries;

     (ii) promptly upon completion after the end of each fiscal year of the Company, the
consolidated balance sheet of the Company and its Subsidiaries as at the end of each such
fiscal year and the consolidated statements of income, cash flows and changes in
stockholders’ equity for such year of the Company and its Subsidiaries, accompanied by the
report of independent certified public accountants of recognized national standing; and

     (iii) to the extent the Company or any of its Subsidiaries is required by Applicable
Law or pursuant to the terms of any outstanding indebtedness of the Company to prepare such
reports, any annual reports, quarterly reports and other periodic reports (without
exhibits) pursuant to Section 13 or 15(d) of the

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Exchange Act, actually prepared by the Company or such Subsidiary promptly after
filing.

     (b) Access. The Company shall, and shall cause its Subsidiaries, officers, directors
and employees to, (i) afford the officers, employees, auditors and other agents of each
Stockholder that is a member of a Principal Investor Group, for so long as such Stockholder is,
together with the other members of its Principal Investor Group and such Principal Investor Group’s
Permitted Transferees, the holder of an aggregate amount of Shares that have an aggregate Fair
Market Value in excess of $100 million, during normal business hours and upon reasonable notice
reasonable access at all reasonable times to its officers, employees, auditors, properties,
offices, plants and other facilities and to all books and records, and (ii) afford such
Stockholder the opportunity to consult with its officers from time to time regarding the Company’s
and its Subsidiaries’ affairs, finances and accounts as each such Stockholder may reasonably
request upon reasonable notice.

     (c) Additional Information. Each of the Stockholders agrees that, from the date of
this Agreement and for so long as it shall own any Equity Securities, it will furnish the Company
such necessary information and reasonable assistance as the Company may reasonably request in
connection with the (i) consummation of the transactions contemplated by this Agreement and
(ii) the preparation and filing of any reports, filings, applications, consents or
authorizations with any Regulatory Entity under any Applicable Law. Each Stockholder proposing to
make a Transfer pursuant to Article II and the Company shall provide the other with any information
reasonably requested in order for each of them to determine whether the proposed Transfer would be
a Prohibited Transaction.

     (d) Corporate Opportunities. Except as otherwise provided in the second sentence of
this Section 1.6(d), (i) neither Principal Investor, nor ACF, nor any stockholder, member,
manager, partner or Affiliate of such Principal Investor or ACF, or their respective officers,
directors, employees or agents (any of the foregoing, a “Stockholder Group Member”) shall
have any duty to communicate or present an investment or business opportunity or prospective
economic advantage to the Company or any of its Subsidiaries in which the Company or one of its
Subsidiaries may, but for the provisions of this Section 1.6(d), have an interest or expectancy
(“Corporate Opportunity”), and (ii) neither Principal Investor, nor ACF, nor any
Stockholder Group Member (even if also an officer or director of the Company) will be deemed to
have breached any fiduciary or other duty or obligation to the Company by reason of the fact that
any such Person pursues or acquires a Corporate Opportunity for itself or its Affiliates or
directs, sells, assigns or transfers such Corporate Opportunity to another Person or does not
communicate information regarding such Corporate Opportunity to the Company. The Company, on
behalf of itself and its Subsidiaries, renounces any interest in a Corporate Opportunity and any
expectancy that a Corporate Opportunity will

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be offered to the Company; provided that the Company does not renounce any interest or
expectancy it may have in any Corporate Opportunity that is offered to a director of the Company
whether or not such individual is also a director or officer of a Stockholder, if such opportunity
is expressly and demonstratively offered to such Person in his or her capacity as a director of the
Company and the Stockholders recognize that the Company reserves such rights.

ARTICLE II

TRANSFERS/CERTAIN COVENANTS

     2.1 Transfer Restrictions.

     (a) [Reserved.]

     (b) Notwithstanding anything to the contrary in this Agreement, no Stockholder shall Transfer
any Equity Securities (whether or not the proposed Transferee is a Permitted Transferee or such
Transfer would otherwise be permitted by Section 2.1(a)) (i) to any Competitor or
(ii) if any such Transfer would constitute a Prohibited Transaction, unless, in any such
case, such Transfer is approved by the Board.

     (c) Any Transferee (including any Permitted Transferee) that after the date of this Agreement
acquires Equity Securities, other than in connection with a Public Offering or brokers transactions
(within the meaning of Section 4(4) of the Securities Act) pursuant to Rule 144, shall, as a
condition precedent to the Transfer of such Equity Securities to such Transferee, (i)
become a party to this Agreement by completing and executing a signature page hereto (including the
address of such party), (ii) execute all such other agreements or documents as may
reasonably be requested by the Company (which may include such representations and warranties made
by the Transferee to the Company as shall be reasonably requested by the Company), (iii)
ensure with the Transferring Stockholders that any merger control or other regulatory
authorizations needed in connection with such Transfer are duly obtained, and (iv) deliver
such signature page and, if applicable, other agreements and documents to the Company at its
address specified in Section 6.12. Such Person shall, upon its satisfaction of such conditions and
acquisition of Equity Securities, be a Stockholder for all purposes of this Agreement.

     (d) Any Transfer or attempted Transfer of Equity Securities in violation of any provision of
this Agreement shall be void.

     2.2 Tag-Along Rights.

     (a) In the event of a proposed Transfer of Shares by a Stockholder (a “Transferring
Stockholder”) other than (y) to a Permitted Transferee or (z) in connection
with a Public Offering or brokers transactions (within the meaning of Section 4(4) of the

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Securities Act) pursuant to Rule 144, each Stockholder (other than the Transferring
Stockholder) shall have the right to participate on the same terms and conditions and for the same
per Share consideration as the Transferring Stockholder in the Transfer in the manner set forth in
this Section 2.2. Prior to any such Transfer, the Transferring Stockholder shall deliver to the
Company prompt written notice (the “Transfer Notice”), which the Company will forward to
the Stockholders (other than the Transferring Stockholder, the “Tag-Along Participants”)
within 5 days of receipt thereof, which notice shall state (i) the name of the proposed
Transferee, (ii) the number of Shares proposed to be Transferred (the “Transferred
Securities”) and the percentage (the “Tag Percentage”) that such number of Shares
constitute of the total number of Shares owned by such Transferring Stockholder, (iii) the
proposed purchase price therefore, including a description of any non-cash consideration
sufficiently detailed to permit the determination of the Fair Market Value thereof, and
(iv) the other material terms and conditions of the proposed Transfer, including the
proposed Transfer date (which date may not be less than 35 days after delivery to the Tag-Along
Participants of the Transfer Notice). Such notice shall be accompanied by a written offer from the
proposed Transferee to purchase the Transferred Securities, which offer may be conditioned upon the
consummation of the sale by the Transferring Stockholder, or the most recent drafts of the purchase
and sale documentation between the Transferring Stockholder and the Transferee which shall make
provision for the participation of the Tag-Along Participants in such sale consistent with this
Section 2.2.

     (b) Each Tag-Along Participant may elect to participate in the proposed Transfer to the
proposed Transferee identified in the Transfer Notice by giving written notice to the Company and
to the Transferring Stockholder within the 15 day period after the delivery of the Transfer Notice
to such Tag-Along Participant, which notice shall state that such Tag-Along Participant elects to
exercise its tag-along rights under this Section 2.2 and shall state the maximum number of shares
sought to be Transferred (which number may not exceed the product of (i) all such Shares
owned by such Tag-Along Participant plus the number of Shares owned by any Affiliate Tag-Along
Assignor of such Tag-Along Participant, multiplied by (ii) the Tag Percentage). As used in
this Agreement, the term “Affiliate Tag-Along Assignor” with respect to any Stockholder
shall mean an Affiliate of such Stockholder or, in the case of any member of a Principal Investor
Group, any other member of such Principal Investor Group that, in each case, shall have waived, by
means of written notice to the Company and the Transferring Stockholder, its tag-along rights
pursuant to this Section 2.2 with respect to the applicable Transfer in favor of such Stockholder.
Each Tag-Along Participant shall be deemed to have waived its right of tag-along with respect to
the Transferred Securities hereunder if it fails to give notice within the prescribed time period.
The proposed Transferee of Transferred Securities will not be obligated to purchase a number of
Shares exceeding that set forth in the Transfer Notice, and in the event such Transferee elects to
purchase less than all of the additional Shares sought to be Transferred by the Tag-Along
Participants, the number of Shares to be Transferred by the Transferring Stockholder and

9

 

each such Tag-Along Participant shall be reduced so that each such Stockholder is entitled to
sell its Pro Rata Portion of the number of Shares the proposed Transferee elects to purchase (which
in no event may be less than the number of Transferred Securities set forth in the Transfer
Notice).

     (c) Each Tag-Along Participant, if it is exercising its tag-along rights hereunder, shall
deliver to the Transferring Stockholder at the closing of the Transfer of the Transferring
Stockholder’s Transferred Securities to the Transferee certificates representing the Transferred
Securities to be Transferred by such holder, duly endorsed for transfer or accompanied by stock
powers duly executed, in either case executed in blank or in favor of the applicable purchaser
against payment of the aggregate purchase price therefor by wire transfer of immediately available
funds and/or any applicable non-cash consideration. Each Stockholder participating in a sale
pursuant to this Section 2.2 shall receive consideration in the same form and per share amount
after deduction of such Stockholder’s proportionate share of the related expenses. Each
Stockholder participating in a sale pursuant to this Section 2.2 shall agree to make or agree to
the same customary representations, covenants, indemnities and agreements as the Transferring
Stockholder so long as they are made severally and not jointly and the liabilities thereunder are
borne on a pro rata basis based on the consideration to be received by each Stockholder;
provided, that any general indemnity given by the Transferring Stockholder, applicable to
liabilities not specific to the Transferring Stockholder, to the Transferee in connection with such
sale shall be apportioned among the Stockholders participating in a sale pursuant to this Section
2.2 according to the consideration received by each such Stockholder and shall not exceed such
Stockholder’s net proceeds from the sale; provided, further, that any
representation relating specifically to a Stockholder and/or its ownership of the Equity Securities
to be Transferred shall be made only by that Stockholder. The fees and expenses incurred in
connection with a sale under this Section 2.2 and for the benefit of all Stockholders (it being
understood that costs incurred by or on behalf of a Stockholder for his, her or its sole benefit
will not be considered to be for the benefit of all Stockholders), to the extent not paid or
reimbursed by the Company or the Transferee or acquiring Person, shall be shared by all the
Stockholders on a pro rata basis, based on the consideration received by each Stockholder in
respect of its Equity Securities to be Transferred; provided that no Stockholder shall be
obligated to make any out-of-pocket expenditure in connection with such fees and expenses prior to
the consummation of the transaction consummated pursuant to this Section 2.2 (excluding de minimis
expenditures). The proposed Transfer date may be extended beyond the date described in the
Transfer Notice to the extent necessary to obtain required approvals of Regulatory Entities and
other required approvals and the Company and the Stockholders shall use their respective
commercially reasonable efforts to obtain such approvals.

     (d) If the Transferring Stockholder sells or otherwise Transfers to the Transferee any of its
Shares in breach of this Section 2.2, then each Tag-Along

10

 

Participant shall have the right to sell to each Transferring Stockholder, and each
Transferring Stockholder undertakes to purchase from each Tag-Along Participant, the number of
Shares that such Tag-Along Participant would have had the right to sell to the Transferee pursuant
to this Section 2.2, for a per Share amount and form of consideration and upon the terms and
conditions on which the Transferee bought such Shares from the Transferring Stockholder, but
without any indemnity being granted by any Tag-Along Participant to the Transferring Stockholder;
provided that nothing contained in this Section 2.2(d) shall preclude any Stockholder from
seeking alternative remedies against any such Transferring Stockholder as a result of its breach of
this Section 2.2.

     2.3 [Reserved.]

     2.4 Legend.

     (a) All certificates representing the Equity Securities held by each Stockholder shall bear a
legend substantially in the following form:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO A
STOCKHOLDERS AGREEMENT (A COPY OF WHICH IS ON FILE WITH THE
SECRETARY OF THE COMPANY). NO TRANSFER, SALE, ASSIGNMENT, PLEDGE,
HYPOTHECATION OR OTHER DISPOSITION OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE WITH THE
PROVISIONS OF SUCH STOCKHOLDERS AGREEMENT AND (A) PURSUANT TO A
REGISTRATION STATEMENT EFFECTIVE UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION
THEREUNDER. THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE OF THIS
CERTIFICATE, AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF SUCH
STOCKHOLDERS AGREEMENT.”

     (b) Upon the permitted sale of any Equity Securities pursuant to (i) an effective
registration statement under the Securities Act or pursuant to Rule 144 or (ii) another
exemption from registration under the Securities Act or upon the termination of this Agreement, the
certificates representing such Equity Securities shall be replaced, at the expense of the Company,
with certificates or instruments not bearing the legends required by this Section 2.4;
provided that the Company may condition such replacement of certificates under clause (ii)
upon the receipt of an opinion of securities counsel reasonably satisfactory to the Company.

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ARTICLE III

RESERVED

ARTICLE IV

REGISTRATION RIGHTS

     4.1 Piggyback Registration Rights.

     (a) If the Company at any time proposes to register any shares of Common Stock under the
Securities Act, whether or not for sale for its own account (other than (i) in connection
with a Demand Registration under Section 4.2 in which all Stockholders have the “piggyback” rights
contemplated in Section 4.2(a)(ii), (ii) relating solely to employee benefit plans or
(iii) relating solely to the sale of debt or convertible debt instruments) and the
registration form to be filed may also be used for the registration of Registrable Securities, the
Company shall promptly notify the Stockholders of its intention to effect such registration. Upon
the receipt of a written request of any Stockholder made within 20 days after such notice (which
request shall specify the Registrable Securities intended to be disposed of by such Stockholder),
the Company will, subject to the other provisions of this Section 4.1, include in such registration
all Registrable Securities with respect to which the Company has received a written request for
inclusion (a “Piggyback Registration”). Each such request shall also contain an
undertaking from the applicable Stockholder to provide all such information and material and to
take all actions as may be reasonably required by the Company in order to permit the Company to
comply with all applicable federal and state securities laws.

     (b) Underwritten Registration. If the registration referred to in Section 4.1(a) is
proposed to be underwritten, the Company will so advise the Stockholders as a part of the written
notice given pursuant to Section 4.1(a). In such event, the right of any Stockholder to
registration pursuant to this Section 4.1 will be conditioned upon such Stockholder’s participation
in such underwriting and the inclusion of such Stockholder’s Registrable Securities in the
underwriting, and each such Stockholder will (together with the Company and the other Stockholders
distributing their securities through such underwriting) enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such underwriting by the Company.
If any Stockholder disapproves of the terms of the underwriting, such Stockholder may elect to
withdraw therefrom by written notice to the Company, the managing underwriter and the other
Stockholders.

     (c) Piggyback Registration Expenses. The Company will pay all Registration Expenses
in connection with any Piggyback Registration, whether or not any registration or prospectus
becomes effective or final.

     (d) Priority on Primary Registrations. If a Piggyback Registration relates to an
underwritten primary offering on behalf of the Company, and the managing

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underwriters advise the Company that in their opinion the number of securities requested to be
included in such registration exceeds the number which can be sold without adversely affecting the
marketability of such offering, the Company will include in such registration or prospectus only
such number of securities that in the opinion of such underwriters can be sold without adversely
affecting the marketability of the offering, which securities will be so included in the following
order of priority: (i) first, the securities the Company proposes to sell,
(ii) second, the Registrable Securities requested to be included in such
registration, pro rata among the Stockholders of such Registrable Securities on the basis of the
number of Registrable Securities so requested to be included therein owned by each such
Stockholder, and (iii) third, other securities requested to be included in such
registration.

     (e) Priority on Secondary Registrations. If a Piggyback Registration relates to an
underwritten secondary registration on behalf of other holders of the Company’s securities other
than a registration pursuant to Section 4.2, and the managing underwriters advise the Company that
in their opinion the number of securities requested to be included in such registration exceeds the
number which can be sold without adversely affecting the marketability of the offering, the Company
will include in such registration only such number of securities that in the opinion of such
underwriters can be sold without adversely affecting the marketability of the offering, which
securities will be so included in the following order of priority: (i) first, the
securities requested to be included therein by the holders requesting such registration and the
Registrable Securities requested to be included in such registration, pro rata among the holders of
such securities and Registrable Securities on the basis of the number of securities so requested to
be included therein owned by each such holder, and (ii) second, other securities
requested to be included in such registration.

     (f) Notwithstanding the foregoing, if at any time after giving written notice to the
Stockholders of its intention to register any shares of Common Stock pursuant to subsection (a) of
this Section 4.1 and prior to the effective date of the registration statement filed in connection
with such registration, the Company shall determine for any reason not to register such Securities,
the Company may, at its election, give written notice of such determination to each Stockholder and
thereupon shall be relieved of its obligation to register Registrable Securities as part of such
terminated registration (but not from its obligation to pay expenses in connection therewith as
provided above). If a registration pursuant to this Section 4.1 involves an underwritten public
offering and a Stockholder requests to be included in such registration, such Stockholder may
elect, in writing prior to the effective date of the registration statement filed in connection
with such registration, not to participate in such registration.

     (g) Each Stockholder agrees not to sell or offer for public sale or distribution, including
pursuant to Rule 144, any of such Stockholder’s Common Stock within 15 days prior to or 90 days
after the effective date of any registration (except as part of such

13

 

registration) with respect to which piggyback registration rights are available pursuant to
this Section 4.1.

     4.2 Demand Registrations.

     (a) Request for Registration. At any time and from time to time, any of the Principal
Investors and ACF, so long as such Person holds at least 5% of the total Shares outstanding at such
time (each an “Initiating Holder”) may request in writing that the Company effect pursuant
to this Section 4.2 the registration (a “Demand Registration”) of all or any part of such
Initiating Holders’ Registrable Securities under the Securities Act, which request shall specify
the Registrable Securities so requested to be registered, the proposed amounts thereof, and the
intended method of disposition by the Initiating Holders. Promptly after its receipt of such
request, the Company shall give written notice of such requested registration to all Stockholders,
and thereupon the Company will use its best efforts to effect the registration under the Securities
Act of:

     (i) the Registrable Securities that the Company has been so requested to register, for
disposition in accordance with the intended method of disposition stated in such request,
and

     (ii) all other Registrable Securities owned by Stockholders, the holders of which
shall have made a written request to the Company for registration thereof (which request
shall specify such Registrable Securities and the proposed amounts thereof) within 30 days
after the receipt of such written notice from the Company.

     (b) Limitations on Registrations. The registration rights granted to Initiating
Holders pursuant to this Section 4.2 are subject to the following limitations:

     (i) the Initiating Holders shall determine the method of distribution of the
Securities to be registered in a Demand Registration and if an underwritten offering, shall
select the managing underwriter of such offering. If the offering is underwritten, the
right of any Stockholder to registration pursuant to this Section 4.2 will be conditioned
upon such Stockholder’s participation in such underwriting and the inclusion of such
Stockholder’s Registrable Securities in the underwriting (unless otherwise agreed by the
Initiating Holders), and each such Stockholder will (together with the Company and the
other Stockholder distributing their Securities through such underwriting) enter into an
underwriting agreement in customary form with the underwriter or underwriters selected for
such underwriting. If any Stockholder disapproves of the terms of the underwriting, such
Stockholder may elect to withdraw therefrom by written notice to the Company, the managing
underwriter and the Initiating Holders;

14

 

     (ii) the Company shall not be obligated to file a registration statement under this
Section 4.2 unless (i) the total number of shares of Registrable Securities
requested to be included in such offering by the Initiating Holders and all other
securities holders who have requested to participate in such offering equals or exceeds
2.5% of the number of shares of Common Stock outstanding on a fully diluted basis or
(ii) the aggregate gross offering price of such offering is at least $250,000,000;
and

     (iii) the Company shall be entitled to postpone for a reasonable time not exceeding
180 days at any one time, and not to exceed 360 days in any 720-day period, the filing of
any registration statement under this Section 4.2 if, at the time it receives a request for
a Demand Registration pursuant thereto, the Board shall determine in good faith that
(A) such offering will interfere with a pending financing, merger, sale of assets,
recapitalization or other similar corporation action which the Company is actively pursuing
and is material to the business of the Company or (B) the contemplated sale of
Shares pursuant to such registration statement would have a negative impact on the market
for the Common Stock.

     (c) Short-Form Registrations. The Company will use its commercially reasonable
efforts to qualify for registration on Form S-3 or any comparable or successor form or forms or any
similar short-form registration (“Short-Form Registrations”), and to that end the Company
will register (whether or not required by law to do so) the Common Stock under the Exchange Act in
accordance with the provisions of that Act following the effective date of the first registration
of any securities of the Company on Form S-1 or any comparable or successor form or forms. The
Principal Investors and ACF will be entitled to request at any time and from time to time an
unlimited number of Short-Form Registrations, provided that the Company will not be
obligated to effect any registration pursuant to Sections 4.2(a) and 4.2(c) more than once in any
one year. Promptly after its receipt of any request for a Short-Form Registration, the Company
will, if eligible for a Short-Form Registration, give written notice of such request to all other
Stockholders, and will use its best efforts to register, in accordance with the provisions of this
Agreement, all Registrable Securities that any Stockholder has requested in writing to be
registered by no later than the 15th day after the date of such notice. The Company will pay all
Registration Expenses incurred in connection with any Short-Form Registration.

     (d) Priority on Demand Registrations. If the managing underwriter advises the Company
that in its opinion the number of Registrable Securities (and, if permitted hereunder, other
securities requested to be included in such offering) exceeds the number of securities that can be
sold in such offering without adversely affecting the marketability of the offering, the Company
will include in such offering only such number of securities that in the opinion of such
underwriters can be sold without adversely affecting the marketability of the offering, which
securities will be so included in the following order of priority: (i) first, Registrable
Securities, pro rata among the

15

 

respective holders thereof on the basis of the aggregate number of Registrable Securities
owned by each such holder, and (ii) second, any other securities of the Company that have
been requested to be so included.

     (e) Each Stockholder agrees not to sell or offer for public sale or distribution including,
pursuant to Rule 144, any of such Stockholder’s Common Stock within 15 days prior to or 90 days
after the effective date of any Demand Registration (except as part of such registration).

     (f) The Company agrees not to effect any sale or distribution of any of its equity securities
or of any security convertible into or exchangeable or exercisable for any equity security of the
Company (other than such sale or distribution of such securities in connection with any merger or
consolidation by the Company or any subsidiary of the Company or the acquisition by the Company or
a subsidiary of the Company of the capital stock or substantially all the assets of any other
Person or in connection with an employee stock ownership or other benefit plan) during the 15 days
prior to, and during the 90 day period which begins on, the effective date of a registration
statement filed in connection with a Demand Registration or a Piggyback Registration (except as
part of any such registration).

     4.3 Registration Procedures. If and whenever the Company is required to use its best
efforts to effect the registration of any Registrable Securities under the Securities Act as
provided in this Agreement, the Company will promptly and expeditiously:

     (a) prepare and file with the Securities and Exchange Commission (the “Commission”) a
Registration Statement with respect to such Registrable Securities, make all required filings with
the NASD, and use its best efforts to cause such Registration Statement to become effective;

     (b) prepare and file with the Commission such amendments and supplements to such Registration
Statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective and to comply with the provisions of the Securities Act with
respect to the disposition of all Securities covered by such registration statement until such time
as all of such Securities have been disposed of in accordance with the intended methods of
disposition by the seller or sellers thereof set forth in such registration statement, but in no
event for a period of more than six months after such registration statement becomes effective;

     (c) at least five business days before filing with the Commission, furnish to counsel (if any)
to the selling Stockholders such registration copies of all documents proposed to be filed with the
Commission in connection with such registration, which documents will be subject to the review of
such counsel;

16

 

     (d) furnish to each seller of Securities such number of conformed copies of such registration
statement and of each amendment and supplement thereto (in each case including all exhibits and
other documents filed therewith, except that the Company shall not be obligated to furnish any
seller of Securities with more than two copies of such exhibits), such number of copies of the
prospectus comprised in such registration statement (including each preliminary prospectus and any
summary prospectus), in conformity with the requirements of the Securities Act, and such other
documents, as such seller may reasonably request in order to facilitate the disposition of the
Securities owned by such seller;

     (e) use its best efforts to register or qualify all Securities covered by such registration
statement under the Securities or blue sky laws of such jurisdictions as each seller shall request,
and do any and all other acts and things which may be necessary or advisable to enable such seller
to consummate the disposition in such jurisdictions of the Securities owned by such seller, except
that the Company shall not for any such purpose be required to qualify generally to do business as
a foreign corporation in any jurisdiction wherein it is not so qualified, or to consent to general
service of process in any such jurisdiction;

     (f) in connection with an underwritten offering only, use its best efforts to furnish to each
seller copies of

     (i) an opinion of counsel for the Company, dated the effective date of the
registration statement, and

     (ii) a “comfort” letter signed by the independent public accountants who have
certified the Company’s financial statements included in the registration statement,

each covering substantially the same matters with respect to the registration statement (and the
prospectus included therein) and, in the case of such accountants’ letter, with respect to events
subsequent to the date of such financial statements, as are customarily covered in opinions of
issuer’s counsel and in accountant’s letters delivered to the underwriters in underwritten public
offerings of securities;

     (g) notify each seller of any Securities covered by such registration statement, at any time
when a prospectus relating thereto is required to be delivered under the Securities Act, of the
happening of any event as a result of which the prospectus included in such registration statement,
as then in effect, includes an untrue statement of a material fact or omits to state any material
fact required to be stated therein or necessary to make the statements therein not misleading in
the light of the circumstances then existing, and at the request of any such seller prepare and
furnish to such seller a reasonable number of copies of a supplement to or an amendment of such
prospectus as may be necessary so that, as thereafter delivered to the purchasers of such
Securities, such prospectus shall not

17

 

include an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the light of the
circumstances then existing;

     (h) otherwise use its best efforts to comply with all applicable rules and regulations of the
Commission, and make available to its security holders, as soon as reasonably practicable, an
earnings statement covering the period of at least 12 months, but not more than 18 months,
beginning with the first month after the effective date of such registration statement, which
earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder;

     (i) prepare and file with the Commission such amendments and supplements to such Registration
Statement as may be necessary to keep such Registration Statement effective for a period of either
(i) not less than six months or, if such Registration Statement relates to an underwritten
offering, such longer period as in the opinion of counsel for the underwriters a prospectus is
required by law to be delivered in connection with sales of Registrable Securities by an
underwriter or dealer or (ii) such shorter period as will terminate when all of the
securities covered by such Registration Statement have been disposed of in accordance with the
intended methods of disposition by the seller or sellers thereof set forth in such Registration
Statement (but in any event not before the expiration of any longer period required under the
Securities Act), and to comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such Registration Statement until such time as all of such
securities have been disposed of in accordance with the intended methods of disposition by the
seller or sellers thereof set forth in such Registration Statement;

     (j) use its best efforts to cause all Registrable Securities covered by such Registration
Statement to be registered with or approved by such other governmental agencies, authorities or
self-regulatory bodies as may be necessary or reasonably advisable in light of the business and
operations of the Company to enable the seller or sellers thereof to consummate the disposition of
such Registrable Securities in accordance with the intended method or methods of disposition
thereof;

     (k) notify each seller of any Registrable Securities covered by such Registration Statement
(i) when the prospectus or any prospectus supplement or post-effective amendment has been
filed and, with respect to such Registration Statement or any post-effective amendment, when the
same has become effective, (ii) of any request by the Commission for amendments or
supplements to such registration statement or to amend or to supplement such prospectus or for
additional information, and (iii) of the issuance by the Commission of any stop order
suspending the effectiveness of such registration statement or the initiation of any proceedings
for any of such purposes;

18

 

     (l) use its best efforts to cause all such Registrable Securities to be listed on each
securities exchange on which similar securities issued by the Company are then listed or, if no
similar securities issued by the Company are then listed on any securities exchange, use its best
efforts to cause all such Registrable Securities to be listed on the New York Stock Exchange or
NASDAQ (as determined in connection with the IPO);

     (m) provide a transfer agent and registrar for all such Registrable Securities not later than
the effective date of such registration statement;

     (n) enter into such customary agreements (including underwriting agreements in customary form)
and take all such other actions as the holders of a majority of the Registrable Securities being
sold or the underwriters, if any, reasonably request in order to expedite or facilitate the
disposition of such Registrable Securities (including, without limitation, effecting a stock split
or a combination of shares);

     (o) in the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or of any order suspending or preventing the use of any related prospectus
or suspending the qualification of any Securities included in such registration statement for sale
in any jurisdiction, the Company will use its commercially reasonable efforts promptly to obtain
the withdrawal of such order.

     The Company may require each seller of any Securities as to which any registration is being
effected to furnish the Company such information regarding such seller and the distribution of such
Securities as the Company may from time to time reasonably request in writing in order to permit
the Company to comply with all applicable federal and state securities laws.

     The Company shall make available for inspection by any seller of Securities as to which any
registration is being effected, any underwriter participating in any disposition pursuant to the
related registration statement, and any attorney, accountant or other agent retained by any such
seller or any such underwriter (collectively, the “Inspectors”), all financial and other
records, pertinent corporate documents and properties of the Company and its subsidiaries, if any,
as shall be reasonably necessary to enable them to exercise their due diligence responsibility, and
shall cause the Company’s and its subsidiaries’ officers, directors and employees to supply all
information and respond to all inquiries reasonably requested by any such Inspector in connection
with such registration statement.

     Each Stockholder hereby agrees that upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 4.3(g), such holder will promptly
discontinue such holder’s disposition of Registrable Securities pursuant to the registration
statement covering such Registrable Securities until such holder’s receipt of the copies of the
supplemented or amended prospectus contemplated by Section 4.3(g), and, if so directed by the
Company, will deliver to the Company (at the

19

 

Company’s expense) all copies, other than permanent file copies, then in such holder’s
possession of the prospectus covering such Registrable Securities current at the time of receipt of
such notice. In the event the Company shall give such notice, the period mentioned in Section
4.3(b) shall be extended by the number of days during the period from and including the date when
each seller of any Registrable Securities covered by such Registration Statement shall have
received such notice to but not including the date when each such seller receives copies of the
supplemented or amended prospectus contemplated by Section 4.3(g).

     (p) Other Registration Rights. Except as provided in this Agreement, the Company will
not grant to any holder or prospective holder of any Securities of the Company registration rights
with respect to such Securities that are senior to or otherwise have priority over the rights
granted hereunder.

     4.4 Registration Expenses; Indemnification.

     (a) Registration Expenses.

     (i) Except as otherwise provided for herein, all expenses incidental to the Company’s
performance of or compliance with this Agreement, including, without limitation, all
registration and filing fees, fees and expenses of compliance with securities or blue sky
laws, word processing, duplicating and printing expenses, messenger and delivery expenses,
and fees and disbursements of counsel for the Company and all independent certified public
accountants, underwriters and other Persons retained by the Company (all such expenses,
“Registration Expenses”), will be borne as provided in this Agreement, except that
the Company will, in any event, pay its internal expenses (including, without limitation,
all salaries and expenses of its officers and employees performing legal or accounting
duties), the expenses of any annual audit or quarterly review, the expenses of any
liability insurance and the expenses and fees for listing the securities to be registered
on each securities exchange on which similar securities issued by the Company are then
listed or on the New York Stock Exchange or NASDAQ. All Selling Expenses will be borne by
the holders of the securities so registered pro rata on the basis of the number of their
shares so registered.

     (ii) In connection with each Demand Registration and each Piggyback Registration, the
Company will reimburse the holders of Registrable Securities covered by such registration
or qualification for the reasonable fees and disbursements of one United States counsel,
who will be chosen by the Initiating Holder in the case of a Demand Registration or a
Short-Form Registration.

     (iii) To the extent Registration Expenses are not required to be paid by the Company,
each holder of securities included in any registration or qualification hereunder will pay
those Registration Expenses allocable to the

20

 

registration or qualification of such holder’s securities so included, and any
Registration Expenses not so allocable will be borne by all sellers of securities included
in such registration in proportion to the aggregate selling price of the securities to be
so registered or qualified.

     (b) Indemnification.

     (i) The Company agrees to indemnify and hold harmless, and hereby does indemnify and
hold harmless, each holder of Registrable Securities, its affiliates and their respective
officers, directors and partners and each Person who controls such holder of Registrable
Securities (within the meaning of the Securities Act) against, and pay and reimburse such
holder of Registrable Securities, affiliate, director, officer or partner or controlling
person for any losses, claims, damages, liabilities, joint or several, to which such holder
of Registrable Securities or any such affiliate, director, officer or partner or
controlling person may become subject under the Securities Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions or proceedings, whether commenced
or threatened, in respect thereof) arise out of or are based upon (i) any untrue or
alleged untrue statement of material fact contained in any Registration Statement,
prospectus or preliminary prospectus or any amendment thereof or supplement thereto,
(ii) any omission or alleged omission of a material fact from a Registration
Statement, or any amendment thereof, required to be stated therein or necessary to make the
statements therein not misleading, (iii) any omission or alleged omission of
material fact from a prospectus or preliminary prospectus, or any amendment thereof or
supplement thereto, necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading or (iv) any violation by
the Company of any rule or regulation promulgated under the Securities Act or any state
securities laws applicable to the Company and relating to action or inaction required of
the Company in connection with any such registration, and the Company will pay and
reimburse such holder of Registrable Securities and each such affiliate, director, officer,
partner and controlling person for any legal or any other expenses actually and reasonably
incurred by them in connection with investigating, defending or settling any such loss,
claim, liability, action or proceeding, provided that the Company will not be
liable in any such case to the extent that any such loss, claim, damage, liability (or
action or proceeding in respect thereof) or expense arises out of or is based upon an
untrue statement or alleged untrue statement, or omission or alleged omission, made in such
Registration Statement, any such prospectus or preliminary prospectus or any amendment or
supplement thereto, or in any application, in reliance upon, and in conformity with,
written information prepared and furnished to the Company by such holder of Registrable
Securities expressly for use therein. In connection with an underwritten offering, the
Company, if requested, will indemnify such underwriters, their officers and

21

 

directors and each Person who controls such underwriters (within the meaning of the
Securities Act) to the same extent as provided above with respect to the indemnification of
the holder of Registrable Securities.

     (ii) In connection with any Registration Statement in which a holder of Registrable
Securities is participating, each such holder of Registrable Securities will furnish to the
Company in writing such information and affidavits as the Company reasonably requests for
use in connection with any such Registration Statement or prospectus and, will indemnify
and hold harmless the Company, its directors and officers, each underwriter and each other
Person who controls the Company (within the meaning of the Securities Act) and each such
underwriter against any losses, claims, damages, liabilities, joint or several, to which
such holder of Registrable Securities or any such director or officer, any such underwriter
or controlling person may become subject under the Securities Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions or proceedings, whether commenced
or threatened, in respect thereof) arise out of or are based upon (i) any untrue or
alleged untrue statement of material fact contained in the Registration Statement,
prospectus or preliminary prospectus or any amendment thereof or supplement thereto or in
any application, (ii) any omission or alleged omission of a material fact from a
Registration Statement, or any amendment thereof, required to be stated therein or
necessary to make the statements therein not misleading or (iii) any omission or
alleged omission of material fact from a prospectus or preliminary prospectus, or any
amendment thereof or supplement thereto, necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading, but only to
the extent that such untrue statement or omission is made in such Registration Statement,
any such prospectus or preliminary prospectus or any amendment or supplement thereto, or in
any application, in reliance upon and in conformity with written information prepared and
furnished to the Company by such holder of Registrable Securities expressly for use
therein, and such holder of Registrable Securities will reimburse the Company and each such
director, officer, underwriter and controlling Person for any legal or any other expenses
actually and reasonably incurred by them in connection with investigating, defending or
settling any such loss, claim, liability, action or proceeding, provided that the
obligation to indemnify and hold harmless will be individual and several to each holder of
Registrable Securities and will be limited to the net amount of proceeds received by such
holder of Registrable Securities from the sale of Registrable Securities pursuant to such
Registration Statement.

     (iii) Any Person entitled to indemnification hereunder will (A) give prompt
written notice to the indemnifying party of any claim with respect to which it seeks
indemnification and (B) unless in such indemnified party’s reasonable judgment a
conflict of interest between such indemnified and

22

 

indemnifying parties may exist with respect to such claim, permit such indemnifying
party to assume the defense of such claim with counsel reasonably satisfactory to the
indemnified party. If such defense is assumed, the indemnifying party will not be subject
to any liability for any settlement made by the indemnified party without its consent (but
such consent will not be unreasonably withheld). An indemnifying party who is not entitled
to, or elects not to, assume the defense of a claim will not be obligated to pay the fees
and expenses of more than one counsel for all parties indemnified by such indemnifying
party with respect to such claim, unless in the reasonable judgment of any indemnified
party a conflict of interest may exist between such indemnified party and any other of such
indemnified parties with respect to such claim.

     (iv) The indemnification provided for under this Agreement will remain in full force
and effect regardless of any investigation made by or on behalf of the indemnified party or
any officer, director or controlling Person of such indemnified party and will survive the
registration and sale of any securities by any Person entitled to any indemnification
hereunder and the expiration or termination of this Agreement.

     (v) If the indemnification provided for in this Section 4.4(b) is held by a court of
competent jurisdiction to be unavailable to an indemnified party with respect to any loss,
liability, claim, damage or expense referred to therein, then the indemnifying party, in
lieu of indemnifying such indemnified party thereunder, will contribute to the amount paid
or payable by such indemnified party as a result of such loss, liability, claim, damage or
expense in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other hand in
connection with the statements or omissions which resulted in such loss, liability, claim,
damage or expense as well as any other relevant equitable considerations. The relevant
fault of the indemnifying party and the indemnified party will be determined by reference
to, among other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission.
Notwithstanding the foregoing, the amount any holder of Registrable Securities will be
obligated to contribute pursuant to this Section 4.4(b)(v) will be limited to an amount
equal to the proceeds to such holder of Registrable Securities of the Restricted Securities
sold pursuant to the registration statement which gives rise to such obligation to
contribute (less the aggregate amount of any damages which the holder of Registrable
Securities has otherwise been required to pay in respect of such loss, claim, damage,
liability or

23

 

action or any substantially similar loss, claim, damage, liability or action arising
from the sale of such Restricted Securities).

ARTICLE V

DEFINITIONS

     5.1 Certain Definitions.

     “ACF” has the meaning set forth in the Recitals.

     “Acquisition” has the meaning set forth in the Recitals.

     “Affiliate” means, with respect to any Person, (i) any Person directly or
indirectly Controlling, Controlled by or under common Control with such Person, (ii) any
Person directly or indirectly owning or Controlling 10% or more of any class of outstanding voting
securities of such Person or (iii) any officer, director, general partner or trustee of any
such Person described in clause (i) or (ii).

     “Affiliate Tag-Along Assignor” has the meaning set forth in Section 2.2(b).

     “Agreement” means this Stockholders Agreement, as amended from time to time in
accordance with Section 6.8.

     “Applicable Law” means all applicable provisions of (i) constitutions,
treaties, statutes, laws (including the common law), rules, regulations, ordinances, codes or
orders of any Regulatory Entity, (ii) any consents or approvals of any Regulatory Entity
and (iii) any orders, decisions, injunctions, judgments, awards, decrees of or agreements
with any Regulatory Entity.

     “Board” has the meaning set forth in Section 1.1(a)(i).

     “Business Day” means a day other than a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required to close.

     “CEO Nominee” has the meaning set forth in Section 1.1(a)(i)(E).

     “Chief Executive Officer” means the chief executive officer of the Company.

     “Class I,” “Class II” and “Class III” have the meanings set forth in
Section 1.1(b).

     “Closing” means the closing of the Acquisition.

     “Closing Date” means the date of the Closing.

     “Code” means the U.S. Internal Revenue Code of 1986, as amended.

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     “Commission” has the meaning set forth in Section 4.3(a).

     “Committees” has the meaning set forth in Section 1.1(c).

     “Common Stock” means the common stock, without par value, of the Company and any
securities issued in respect thereof, or in substitution therefor, in connection with any stock
split, dividend or combination, or any reclassification, recapitalization, merger, consolidation,
exchange or other similar reorganization.

     “Company” has the meaning set forth in the Preamble.

     “Competitor” means a Person, or another Person that controls or is controlled by a
Person engaged in the renting of construction, industrial and materials handling equipment used for
similar purposes as the equipment rented by the Company (and any Subsidiaries thereof) to its
customers as of the date of determination and who had total revenue in such business in excess of
$25 million for its most recently completed fiscal year in the geographic areas in which the
Company and its Subsidiaries are conducting business on such date; provided that for
purposes of this Agreement no Affiliate of ACF whose activities would be or would have been
permitted by Section 7.6(a) of the Recapitalization Agreement during the 2-year period commencing
on November 27, 2006 shall be deemed a Competitor.

     “Control” means the power to direct the affairs of a Person by reason of ownership of
voting securities, by contract or otherwise.

     “Controlled Affiliate” means, with respect to any Person, any Person directly or
indirectly Controlled by such Person; provided that the limited partners and non-managing
members of any Person that is an investment fund shall in no event be deemed Controlled Affiliates
of such fund.

     “Controlled Company Event” means the first date on which the Company ceases to qualify
as a “controlled company” as defined from time to time under the New York Stock Exchange’s
corporate governance listing standards.

     “Corporate Opportunity” has the meaning set forth in Section 1.6(d).

     “Demand Registration” has the meaning set forth in Section 4.2(a).

     “Effective Time” has the meaning set forth in Section 6.2.

     “Equity Securities” means any and all shares of Common Stock of the Company,
securities of the Company convertible into, or exchangeable or exercisable for, such shares, and
options, warrants or other rights to acquire such shares.

25

 

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time, and the rules and regulations promulgated thereunder.

     “Fair Market Value” means with respect to any non-cash asset or consideration, the
fair market value of such non-cash asset or consideration as determined in good faith by the Board.

     “Group” has the meaning assigned to such term in Section 13(d)(3) of the Exchange Act.

     “Independent Director” means an “independent director” as such term is defined from
time to time in the New York Stock Exchange’s corporate governance listing standards.

     “Information” means all information about the Company or any of its Subsidiaries that
is or has been furnished to any Stockholder or any of its Representatives by or on behalf of the
Company or any of its Subsidiaries, or any of their respective Representatives, and any other
information supplied by the Company, any Subsidiary of the Company or any Stockholder in connection
with the Acquisition (whether written or oral or in electronic or other form), together with all
written or electronically stored documentation prepared by such Stockholder or its Representatives
based on or reflecting, in whole or in part, any such information; provided that the term
“Information” does not include any information that (x) is or becomes generally available
to the public through no action or omission by any Stockholder or its Representatives or
(y) is or becomes available to such Stockholder on a nonconfidential basis from a source,
other than the Company or any of its subsidiaries, or any of their respective Representatives, that
to the best of such Stockholder’s knowledge, after reasonable inquiry, is not prohibited from
disclosing such portions to such Stockholder by a contractual, legal or fiduciary obligation.

     “Initiating Holder” has the meaning set forth in Section 4.2(a).

     “Inspectors” has the meaning set forth in Section 4.3(o).

     “Investor” has the meaning set forth in the Recitals.

     “Investor Nominees” has the meaning set forth in Section 1.1(a)(i)(B).

     “IPO” has the meaning set forth in the Recitals.

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     “Majority Approval” means the prior approval of one or more Principal Investors
having, singly or in the aggregate, the right to designate a majority of the Investor Nominees
pursuant to Section 1.1(a) at the time such approval is required.

     “NASD” means the National Association of Securities Dealers, Inc.

     “Necessary Action” means, with respect to a specified result, all actions (to the
extent permitted by Applicable Law) necessary to cause such result, including (i) voting or
providing written consent or proxy with respect to Voting Securities, (ii) calling and
attending meetings in person or by proxy for purposes of obtaining a quorum and causing the
adoption of stockholders’ resolutions and amendments to the Company’s certificate of incorporation
or by-laws, (iii) causing members of the Board (to the extent such members were nominated
or designated by the Person obligated to undertake the Necessary Action, and subject to any
fiduciary duties that such members may have as directors of the Company) to act in a certain manner
or causing them to be removed in the event they do not act in such a manner, (iv) executing
agreements and instruments and (v) making, or causing to be made, with Regulatory Entities
all filings, registrations or similar actions that are required to achieve such result.

     “Oak Hill” means Oak Hill 1, Oak Hill 2 and Oak Hill 3, acting together.

     “Oak Hill Nominees” has the meaning set forth in Section 1.1(a)(i)(B).

     “Original Agreement” has the meaning set forth in the Recitals.

     “Original Shares” has the meaning set forth in Section 1.5(a)(i).

     “Permitted Transferee” means as to any Stockholder: (i) the owners of such
Stockholder in connection with any liquidation of, or a distribution with respect to an equity
interest in, such Stockholder (including but not limited to any distribution by a Stockholder to
its limited partners); (ii) any Affiliate of such Stockholder; or (iii) any investor in any
Affiliate of such Stockholder (so long as such Affiliate remains an Affiliate of such Stockholder
after any investment by such investor); provided, that in no event shall (x) any
“portfolio company” of any Stockholder or any entity Controlled by any “portfolio company” of any
Stockholder or (y) any Competitor constitute a “Permitted Transferee”. The Company and its
Subsidiaries may be Permitted Transferees. Any Stockholder shall also be a Permitted Transferee of
the Permitted Transferees of itself.

     “Person” means any individual, corporation, limited liability company, limited or
general partnership, joint venture, association, joint-stock company, trust, unincorporated
organization, government or any agency or political subdivisions thereof or any Group comprised of
two or more of the foregoing.

27

 

     “Piggyback Registration” has the meaning set forth in Section 4.1(a).

     “Plan Assets” means assets of one or more employee benefit plans and are subject to
Part IV of Title I of ERISA.

     “Principal Investor Group” means, with respect to any Principal Investor, such
Principal Investor and its Affiliates.

     “Principal Investors” means Ripplewood and Oak Hill.

     “Prohibited Transaction” means any Transfer of Equity Securities to a Person which
(v) violates or causes a default or similar event (other than a violation, default or event
caused by or constituting a “change of control”), under any of the Company’s or any of its
Subsidiaries’ material debt agreements, indentures and other agreements or instruments evidencing
material indebtedness of the Company or any of its Subsidiaries, as such agreements, indentures and
instruments may be amended or modified from time to time in accordance with their terms,
(w) violates applicable securities laws or the Hart-Scott-Rodino Antitrust Improvements Act
of 1976 or would cause the Company to be in violation of any Applicable Law, (x) would
result in the assets of the Company constituting Plan Assets, or (y) would cause the
Company to be Controlled by or under common Control with an “investment company” for purposes of
the Investment Company Act of 1940, as amended.

     “Pro Rata Portion” means, with respect to the Transferring Stockholder or any
Tag-Along Participant, with respect to any proposed Transfer, on the applicable Transfer date, the
number of Shares equal to the product of (i) the total number of Shares to be Transferred
to the proposed Transferee and (ii) the fraction determined by dividing (A) the
total number of Shares owned by such Transferring Stockholder or Tag-Along Participant (as
applicable) as of such date plus the number of Shares owned by all Affiliate Tag-Along Assignors of
such Person by (B) the total number of Shares owned by the Transferring Stockholder and all
Tag-Along Participants and their respective Affiliate Tag-Along Assignors as of such date.

     “Public Offering” means an offering of Common Stock pursuant to a registration
statement filed in accordance with the Securities Act.

     “Registrable Securities” shall mean (i) any shares of Common Stock, or
(ii) any equity securities issued or issuable directly or indirectly with respect to the
securities referred to in the foregoing clause (i) by way of conversion or exchange thereof or
share dividend or share split or in connection with a combination of shares, recapitalization,
reclassification, merger, amalgamation, arrangement, consolidation or other reorganization. As to
any particular securities constituting Registrable Securities, such securities will cease to be
Registrable Securities when (x) they have been effectively registered or qualified for sale
by prospectus filed under the Securities Act and disposed

28

 

of in accordance with the Registration Statement covering therein, or (y) they have
been sold to the public through a broker, dealer or market maker pursuant to Rule 144 or other
exemption from registration under the Securities Act. For purposes of this Agreement, a Person
will be deemed to be a holder of Registrable Securities whenever such Person has the right to
acquire directly or indirectly such Registrable Securities (upon conversion or exercise in
connection with a transfer of securities or otherwise, but disregarding any restrictions or
limitations upon the exercise of such right), whether or not such acquisition has actually been
effected. “register,” “registered” and “registration” refers to a
registration effected by preparing and filing a Registration Statement in compliance with the
Securities Act, and the declaration or ordering of the effectiveness of such Registration
Statement, and compliance with applicable state securities laws of such states in which
Stockholders notify the Company of their intention to offer Registrable Securities.

     “Registration Expenses” has the meaning set forth in Section 4.4(a)(i).

     “Registration Statement” means the prospectus and other documents filed with the
Commission to effect a registration under the Securities Act.

     “Regulatory Entity” means any federal, state, local or foreign court, legislative,
executive or regulatory authority or agency, including (without limitation) any exchange upon which
equity securities of the Company are listed.

     “Regulatory Problem” shall mean (i) a reasonable likelihood that all or any
part of a Stockholder’s assets would be deemed to be “plan assets” for purposes of ERISA or
(ii) a change in the statute or regulation that authorizes or governs the investment by an
equityholder of a Stockholder in such Stockholder that makes investing in the Stockholder illegal
for such equityholder.

     “Representatives” means with respect to any Person, any of such Person’s, or its
Affiliates’, directors, officers, employees, general partners, Affiliates, direct or indirect
shareholders, members or limited partners, attorneys, accountants, financial and other advisers,
and other agents and representatives, including in the case of any Principal Investor any person
nominated to the Board or a Committee by such Principal Investor.

     “Ripplewood” means Ripplewood 1 and Ripplewood 2, acting together.

     “Ripplewood Nominees” has the meaning set forth in Section 1.1(a)(i)(A).

     “Rule 144” means Rule 144 under the Securities Act (or any successor rule).

     “Securities Act” means the Securities Act of 1933, as amended from time to time, and
the rules and regulations promulgated thereunder.

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     “Selling Expenses” means all underwriting discounts, selling commissions and transfer
taxes applicable to the sale of Registrable Securities hereunder.

     “Shares” means issued and outstanding shares of Common Stock (as adjusted for stock
splits, stock dividends, reclassifications, recapitalizations and similar transactions).

     “Short-Form Registrations” has the meaning set forth in Section 4.2(c).

     “Stockholder Group Member” has the meaning set forth in Section 1.6(d).

     “Stockholders” means (i) the stockholders of the Company that are parties to
this Agreement and (ii) any other holder of any Equity Securities that becomes a party to
this Agreement after the date and pursuant to the terms hereof; provided that any Person
shall cease to be a stockholder if it no longer is the holder of any Equity Securities; and
provided further that for purposes of Sections 1.6(a) and 6.5(a), the term
Stockholder shall not include any holder of any Equity Securities who is an employee or former
employee of the Company or any of its Subsidiaries that is a party to one or more subscription or
similar agreements with the Company.

     “Subsidiary” means each Person in which a Person owns or controls, directly or
indirectly, capital stock or other equity interests representing more than 50% of the outstanding
capital stock or other equity interests.

     “Tag-Along Participants” has the meaning set forth in Section 2.2(a).

     “Tag Percentage” has the meaning set forth in Section 2.2(a).

     “Transfer” means, directly or indirectly, to sell, transfer, assign, pledge, encumber,
hypothecate or similarly dispose of, either voluntarily or involuntarily, or to enter into any
contract, option or other arrangement or understanding with respect to the sale, transfer,
assignment, pledge, encumbrance, hypothecation or similar disposition of, any Equity Securities
owned by a Person or any interest (including but not limited to a beneficial interest) in any
Equity Securities owned by a Person.

     “Transferee” means any Person to whom any Stockholder or any Transferee thereof
Transfers Equity Securities of the Company in accordance with the terms hereof.

     “Transfer Notice” has the meaning set forth in Section 2.2(a).

     “Transferred Securities” has the meaning set forth in Section 2.2(a).

     “Transferring Stockholder” has the meaning set forth in Section 2.2(a).

     “Unaffiliated Person” means, with respect to any Stockholder, any other Person that is
not an Affiliate of such Stockholder.

30

 

     “Unanimous Investor Approval” means the prior approval of each Principal Investor that
has the right to designate at least one Investor Nominee pursuant to Section 1.1(a) at the time
such approval is required.

     “Voting Securities” means, at any time, shares of any class of Equity Securities of
the Company, which are then entitled to vote generally in the election of directors.

     5.2 Terms Generally. The words “hereby”, “herein”, “hereof”, “hereunder” and words of
similar import refer to this Agreement as a whole (including the Exhibits and Annexes hereto) and
not merely to the specific section, paragraph or clause in which such word appears. All references
herein to Preamble, Recitals, Articles, Sections, Exhibits and Annexes and Schedules shall be
deemed references to Preamble, Recitals, Articles and Sections of, and Exhibits and Annexes to,
this Agreement unless the context shall otherwise require. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. The definitions
given for terms in this Article V and elsewhere in this Agreement shall apply equally to both the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. References herein to any
agreement or letter shall be deemed references to such agreement or letter as it may be amended,
restated or otherwise revised from time to time.

ARTICLE VI

MISCELLANEOUS

     6.1 Termination. Subject to the early termination of any provision as a result of an
amendment to this Agreement agreed to by the Company and the Stockholders as provided under Section
6.8:

     (a) the provisions of Article I shall, with respect to each Stockholder, terminate as provided
in Section 1.5;

     (b) the provisions of Article II shall terminate upon the Principal Investors ceasing to own
(in the aggregate) at least 5% of the Voting Securities of the Company; and

     (c) all other provisions of this Agreement shall survive its termination.

Nothing in this Agreement shall relieve any party from any liability for the breach of any
obligations set forth in this Agreement.

     6.2 Effective Time. This Agreement shall be effective upon the execution hereof by
Stockholders holding in excess of 50% of the then-outstanding Voting Securities (including
Unanimous Investor Approval) (such execution constituting

31

 

approval of any amendments contained herein to the Original Agreement) and the consummation of
the IPO (the time of such effectiveness, the “Effective Time”).

     6.3 Confidentiality. Each party hereto agrees to, and shall cause its Representatives
to, keep confidential and not divulge any Information, and to use, and cause its Representatives to
use, such Information only in connection with the Acquisition and the operation of the Company and
its Subsidiaries; provided that nothing herein shall prevent any party hereto from
disclosing such Information (a) upon the order of any court or administrative agency,
(b) upon the request or demand of any regulatory agency or authority having jurisdiction
over such party, (c) to the extent required by law or stock exchange rule or compelled by
legal process or required or requested pursuant to subpoena, interrogatories or other discovery
requests, (d) to the extent necessary in connection with the exercise of any remedy
hereunder, (e) to such party’s Representatives that in the reasonable judgment of such
party need to know such Information and have agreed to abide by the terms of this Section 6.3 or
(f) to any potential Permitted Transferee or Unaffiliated Person transferee in connection
with a proposed Transfer of Equity Securities from such Stockholder as long as such transferee
agrees to be bound by the provisions of this Section 6.3 as if a Stockholder, provided
further that, in the case of clause (a), (b) or (c), such party shall notify the other
parties hereto of the proposed disclosure as far in advance of such disclosure as practicable and
use reasonable efforts to ensure that any Information so disclosed is accorded confidential
treatment, when and if available.

     6.4 Compliance.

     (a) The Stockholders shall not approve the retention by the Company or any of its Subsidiaries
of, and shall cause the Company and its Subsidiaries not to retain, the independent accountants of
any Principal Investor (or of any Principal Investor’s ultimate parent entity) for non-audit
services without the prior written consent of such Principal Investor. If required by the
Sarbanes-Oxley Act of 2002, as amended, so as not to impair the independence of the auditor of any
Principal Investor, the Stockholders shall cause the Company and its Subsidiaries to discontinue
and restrict certain relationships (as set forth in such Act) between the Company and its
Subsidiaries and the auditor of such Principal Investor.

     (b) The Stockholders shall cooperate in good faith to procure that the Company take such
necessary action and exercise all necessary powers so that the Company and its Subsidiaries are
compliant with the provisions of the Sarbanes-Oxley Act of 2002, as amended, and all other
applicable securities laws and listing exchange requirements.

     6.5 Restrictions on Other Agreements; Conflicts.

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     (a) Following the date hereof, no Stockholder shall enter into or agree to be bound by any
stockholder agreements or arrangements of any kind with any Person other than the Company with
respect to any Equity Securities except agreements with respect to any sale or other transfer of
Equity Securities permitted hereby or other matters as expressly permitted hereunder. A Principal
Investor may enter into any stockholder agreement or arrangements with a member of its or any other
Principal Investor Group.

     (b) Each of the parties covenants and agrees to vote their Voting Securities and to take any
other action reasonably requested by the Company or any Stockholder to amend the Company’s by-laws
or certificate of incorporation so as to avoid any conflict with the provisions hereof.

     6.6 Further Assurances. Each party hereto shall do and perform or cause to be done
and performed all such further acts and things, and shall execute and deliver all such further
agreements, certificates, instruments and documents, as any other party hereto reasonably may
request in order to carry out the provisions of this Agreement and the consummation of the
transactions contemplated hereby.

     6.7 No Recourse; No Stockholder Duties.

     (a) Notwithstanding anything to the contrary in this Agreement, the Company and each
Stockholder agrees and acknowledges that no recourse under this Agreement or any documents or
instruments delivered in connection with this Agreement, shall be had against any current or future
director, officer, employee, general or limited partner or member of any Stockholder or of any
Affiliate or assignee thereof, whether by the enforcement of any assessment or by any legal or
equitable proceeding, or by virtue of any statute, regulation or other Applicable Law, it being
expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed
on or otherwise be incurred by any current or future officer, agent or employee of any Stockholder
or any current or future member of any Stockholder or any current or future director, officer,
employee, partner or member of any Stockholder or of any Affiliate or assignee thereof, as such for
any obligation of any Stockholder under this Agreement or any documents or instruments delivered in
connection with this Agreement for any claim based on, in respect of or by reason of such
obligations or their creation.

     (b) The Stockholders agree, notwithstanding anything to the contrary in any other agreement or
at law or in equity, that when any Stockholder takes any action under this Agreement to give or
withhold its consent, or when any Stockholder takes any action under this Agreement to give or
withhold its consent, such Stockholder shall have no duty (fiduciary or other) to consider the
interests of the Company or the other Stockholders and may act exclusively in its own interest and
shall have no duty to act in good faith; provided that the foregoing shall in no way affect
the obligations of the parties hereto to comply with the provisions of this Agreement.

33

 

     6.8 Amendment; Waivers, etc. This Agreement may be amended, and the Company and any
Stockholder may take any action herein prohibited, or omit to perform any act herein required to be
performed by it, only if any such amendment, action or omission to act, has been approved by
Stockholders holding in excess of 50% of the then-outstanding Voting Securities of the Stockholders
including Unanimous Investor Approval, provided that this Agreement may not be amended in a
manner adversely affecting the rights or obligations of any Stockholder which does not adversely
affect the rights or obligations of all similarly situated Stockholders in the same manner without
the consent of such Stockholder. The failure of any party to enforce any of the provisions of this
Agreement shall in no way be construed as a waiver of such provisions and shall not affect the
right of such party thereafter to enforce each and every provision of this Agreement in accordance
with its terms. Any Stockholder may waive (in writing) the benefit of any provision of this
Agreement with respect to itself for any purpose. Any such waiver shall constitute a waiver only
with respect to the specific matter described in such writing and shall in no way impair the
rights of the Stockholder granting such waiver in any other respect or at any other time.

     6.9 Assignment. Neither this Agreement nor any right or obligation arising under this
Agreement may be assigned by any party without the prior written consent of the other parties,
provided that (a) any Principal Investor may assign all or a portion of its rights and
obligations hereunder to any Person that is or becomes a Stockholder and (b) ACF may assign its
rights under Section 4.2 (and related rights under Sections 4.3 and 4.4) to any transferee of 40%
or more of the number of Shares owned by ACF on the Closing Date.

     6.10 Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective heirs, successors and permitted assigns.

     6.11 No Third Party Beneficiaries. Except as contemplated in Sections 4.4(b) and 6.7,
nothing in this Agreement shall confer any rights upon any Person other than the parties hereto and
each such party’s respective heirs, successors and permitted assigns.

     6.12 Notices. All notices, requests, demands, waivers and other communications
required or permitted to be given under this Agreement shall be in writing and shall be deemed to
have been duly given if (a) delivered personally, (b) mailed, certified or
registered mail with postage prepaid, (c) sent by reputable overnight courier or
(d) sent by fax (provided a confirmation copy is sent by one of the other methods set forth
above), as follows (or to such other address as the party entitled to notice shall hereafter
designate in accordance with the terms hereof):

If to the Company, to it at:

RSC Holdings Inc.

6929 E. Greenway Parkway

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Scottsdale, Arizona 85254

Attn: Erik Olsson

Facsimile: (480) 368-4280

with a copy (which shall not constitute notice) to:

Ripplewood Holdings, L.L.C.

One Rockefeller Plaza, 32nd Floor

New York, NY 10020

Attn: Christopher P. Minnetian, Esq.

(212) 218-2778 (telecopier)

(212) 582-6700 (telephone)

cminnetian@ripplewood.com (email)

and

Oak Hill Capital Management, L.L.C.

65 E. 55th Street, 36th Floor

New York, NY 10022

Attn: John R. Monsky, Esq.

(212) 758-3572 (telecopier)

(212) 326-1590 (telephone)

jmonsky@oakhillcapital.com (email)

and

Debevoise & Plimpton LLP

919 Third Avenue

New York, NY 10022-3902

Attn: Jeffrey J. Rosen, Esq.

(212) 909-6836 (telecopier)

(212) 909-6000 (telephone)

jrosen@debevoise.com (email)

If to ACF, to it at:

c/o Atlas Copco AB

SE-105 23

Stockholm, Sweden

Attn: Håkan Osvald

011-46-8-743-8037 (telecopier)

011-46-8-743-8000 (telephone)

hakan.osvald@se.atlascopco.com (email)

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with a copy (which shall not constitute notice) to:

Pillsbury Winthrop Shaw Pittman LLP

1540 Broadway

New York, New York 10036

Attn: Stephen R. Rusmisel, Esq.

Donovan W. Burke, Esq.

(212) 858-1500 (telecopier)

(212) 858-1000 (telephone)

stephen.rusmisel@pillsburylaw.com (email)

donovan.burke@pillsburylaw.com (email)

If to any other Stockholder, to its address set forth on the signature page of such Stockholder to
this Agreement with a copy (which shall not constitute notice) to any party so indicated thereon.
All such notices, requests, demands, waivers and other communications shall be deemed to have been
received (w) if by personal delivery, on the day delivered, (x) if by certified or
registered mail, on the fifth Business Day after the mailing thereof, (y) if by overnight
courier, on the day delivered, or (z) if by fax, on the day delivered.

     6.13 Severability. Any term or provision of this Agreement which is invalid, illegal
or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent
of such invalidity, illegality or unenforceability without rendering invalid, illegal or
unenforceable the remaining terms and provisions of this Agreement or affecting the validity,
illegality or enforceability of any of the terms or provisions of this Agreement in any other
jurisdiction. If any provision of this Agreement is so broad as to be unenforceable, the provision
shall be interpreted to be only so broad as is enforceable. Upon such determination that any term
or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate
in good faith to modify this Agreement so as to effect the original intent of the Parties as
closely as possible in a mutually acceptable manner in order that the transactions contemplated
herein are consummated as originally contemplated to the fullest extent possible.

     6.14 Headings. The headings contained in this Agreement are for purposes of
convenience only and shall not affect the meaning or interpretation of this Agreement.

     6.15 Entire Agreement. This Agreement constitutes the entire agreement and supersedes
all prior agreements and understandings, both written and oral, among the parties with respect to
the subject matter hereof.

     6.16 Governing Law. This Agreement will be governed by and construed in accordance
with the laws of the State of New York (regardless of the laws that might

36

 

otherwise govern under applicable principles or rules of conflicts of law to the extent such
principles or rules are not mandatorily applicable by statute and would require the application of
the laws of another jurisdiction).

     6.17 Consent to Jurisdiction. Each party irrevocably submits to the exclusive
jurisdiction of (a) the Supreme Court of the State of New York, New York County, and
(b) the United States District Court for the Southern District of New York, for the
purposes of any suit, action or other proceeding arising out of this Agreement or any transaction
contemplated hereby (and agrees not to commence any such suit, action or other proceeding except in
such courts). Each party further agrees that service of any process, summons, notice or document
by U.S. registered mail to such party’s respective address set forth or referred to in Section 6.12
shall be effective service of process for any such suit, action or other proceeding. Each party
irrevocably and unconditionally waives any objection to the laying of venue of any such suit,
action or other proceeding in (i) the Supreme Court of the State of New York, New York
County, and (ii) the United States District Court for the Southern District of New York,
that any such suit, action or other proceeding brought in any such court has been brought in an
inconvenient forum.

     6.18 Waiver of Jury Trial. Each party hereby waives, to the fullest extent permitted
by Applicable Law, any right it may have to a trial by jury in respect of any suit, action or other
proceeding arising out of this Agreement or any transaction contemplated hereby. Each party
(a) certifies and acknowledges that no representative, agent or attorney of any other party
has represented, expressly or otherwise, that such other party would not, in the event of
litigation, seek to enforce the foregoing waiver, and (b) acknowledges that it understands
and has considered the implications of this waiver and makes this waiver voluntarily, and that it
and the other parties have been induced to enter into the Agreement by, among other things, the
mutual waivers and certifications in this Section 6.18.

     6.19 Enforcement. Each party hereto acknowledges that money damages would not be an
adequate remedy in the event that any of the covenants or agreements in this Agreement are not
performed in accordance with its terms, and it is therefore agreed that in addition to and without
limiting any other remedy or right it may have, the non-breaching party will have the right to an
injunction, temporary restraining order or other equitable relief in any court of competent
jurisdiction enjoining any such breach and enforcing specifically the terms and provisions hereof.
In the event that the Company or one or more Principal Investors shall file suit to enforce the
covenants contained in this Agreement (or obtain any other remedy in respect of any breach
thereof), the prevailing party in the suit shall be entitled to recover, in addition to all other
damages to which it may be entitled, the costs incurred by such party in conducting the suit,
including, without limitation, reasonable attorney’s fees and expenses.

     6.20 Counterparts; Facsimile Signatures. This Agreement may be executed in any number
of counterparts, each of which shall be an original, but all of which together

37

 

shall constitute one instrument. This Agreement may be executed by facsimile signature(s).

38

 

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement by their authorized
representatives as of the date first above written.

	 	 	 	 	 
	 	 	RSC HOLDINGS INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

39

 

	 	 	 	 	 	 	 
	 	 	RSC ACQUISITION LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	Ripplewood Partners II, L.P.
	 	 	 	 	its Sole Member
	 
	 	 	 	 	 	 
	 	 	By:	 	Ripplewood Partners II GP, L.P.
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 	 	By:	 	RP II GP, LLC
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christopher P. Minnetian
	 

	 	 	 	Title:
	 	Secretary
	 
	 	 	 	 	 	 
	 	 	RSC ACQUISITION II LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	Ripplewood Partners II Parallel Fund, L.P.
	 	 	 	 	its Sole Member
	 
	 	 	 	 	 	 
	 	 	By:	 	Ripplewood Partners II GP, L.P.
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 	 	By:	 	RP II GP, LLC
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Christopher P. Minnetian
	 

	 	 	 	Title:
	 	Secretary

40

 

	 	 	 	 	 	 	 
	 	 	OHCP II RSC, LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	Oak Hill Capital Parters II, L.P.
	 	 	 	 	its Sole Member
	 
	 	 	 	 	 	 
	 	 	By:	 	OHCP Gen Par II, L.P.
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 	 	By:	 	OHCP MGP II, L.L.C.
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	John R. Monsky
	 

	 	 	 	Title:
	 	Vice President
	 
	 	 	 	 	 	 
	 	 	OHCMP II RSC, LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	Oak Hill Capital Management Partners II, L.P.
	 	 	 	 	its Sole Member
	 
	 	 	 	 	 	 
	 	 	By:	 	OHCP Gen Par II, L.P.
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 	 	By:	 	OHCP MGP II, L.L.C.
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	John R. Monsky
	 

	 	 	 	Title:
	 	Vice President

41

 

	 	 	 	 	 	 	 
	 	 	OHCP II RSC COI, LLC
	 
	 	 	 	 	 	 
	 	 	By:	 	OHCP Gen Par II, L.P.
	 	 	 	 	its Sole Member
	 
	 	 	 	 	 	 
	 	 	By:	 	OHCP MGP II, L.L.C.
	 	 	 	 	its General Partner
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	John R. Monsky
	 

	 	 	 	Title:
	 	Vice President

42

 

	 	 	 	 	 
	 	 	ATLAS COPCO FINANCE S.À.R.L.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

43EX-4.1

 

Exhibit 4.1

The Sturm, Ruger & Company, Inc.

2007 Stock Incentive Plan

	1.	 	Purpose. The purpose of the Plan is (i) to enable the Company and any Related
Company to attract and retain employees and independent contractors who contribute to the
Company’s success by their ability, ingenuity and industry, and to enable such employees and
independent contractors to participate in the long-term success and growth of the Company by
giving them an equity interest in the Company and (ii) to compensate non-employee directors
and to provide incentives to such directors, which incentives are linked directly to increase
in stockholder value and will therefore inure to the benefit of all stockholders of the
Company.

	2.	 	Definitions

	 	(a)	 	“Awards” shall mean awards under the Plan in the form of (i) Non-Qualified
Stock Options, (ii) Incentive Stock Options, (iii) Restricted Stock, (iv) Deferred
Stock and (v) Stock Appreciation Rights.

	 	(b)	 	“Board” shall mean the Board of Directors of the Company.

	 	(c)	 	A “Change in Control” shall mean:

	 	(i)	 	any person is or becomes the Beneficial Owner (as defined
below), directly or indirectly, of securities of the Company representing 25%
or more of the combined voting power of the Company’s then outstanding
securities; or
	 
	 	(ii)	 	the following individuals cease for any reason to constitute
a majority of the number of Directors then serving as Directors of the
Company: individuals who, on the date hereof, constitute the Board and any
new Director (other than a Director whose initial assumption of office is in
connection with the settlement of an actual or threatened election contest,
including but not limited to a consent solicitation, relating to the election
of Directors of the Company) whose appointment or election by the Board or
nomination for election by the Company’s stockholders was approved or
recommended by a vote of at least two-thirds (2/3) of the Directors then still
in office who either were Directors on the date hereof or whose appointment,
election or nomination for election was previously so approved or recommended;
or
	 
	 	(iii)	 	a merger or consolidation of the Company is consummated with
any other corporation or entity, other than (a) a merger or consolidation
which would
result in the voting securities of the Company outstanding immediately prior
to such merger or consolidation continuing to represent (either by remaining
outstanding or by being converted into voting securities of the 

 

 

	 	 	 	surviving
entity or any Parent (as defined below) thereof), at least a majority of the
combined voting power of the securities of the Company, such surviving
entity or any Parent thereof outstanding immediately after such merger or
consolidation or (b) a merger or consolidation effected solely to implement
a recapitalization of the Company (or similar transaction) in which no
person is or becomes the Beneficial Owner, directly or indirectly, of
securities of the Company representing 25% or more of the combined voting
power of the Company’s then outstanding securities; or

	 	(iv)	 	the stockholders of the Company approve a plan of complete
liquidation or dissolution of the Company or there is consummated a sale or
disposition by the Company of any assets which individually or as part of a
series of related transactions constitute all or substantially all of the
Company’s consolidated assets; or
	 
	 	(v)	 	the execution of a binding agreement that if consummated
would result in a Change in Control of the type specified in section (i) or
(iii) above (an “Acquisition Agreement”) or of a binding agreement for the
sale or disposition of assets that, if consummated, would result in a Change
in Control of the type specified in section (iv) above (an “Asset Sale
Agreement”) or the adoption by the Board of a plan of complete liquidation or
dissolution of the Company that, if consummated, would result in a Change in
Control of a type specified in section (iv) above (a “Plan of Liquidation”);
provided however, that a Change in Control of the type specified in this
section (v) shall not be deemed to exist or to have occurred as a result of
the execution of such Acquisition Agreement or Asset Sale Agreement, or the
adoption of such a Plan of Liquidation, from and after the Abandonment Date.
	 
	 	(vi)	 	For the purposes of this definition the term “Abandonment
Date” shall mean the date on which (a) an Acquisition Agreement, Asset Sale
Agreement or Plan of Liquidation is terminated (pursuant to its terms or
otherwise) without having been consummated, (b) the parties to an Acquisition
Agreement or Asset Sale Agreement abandon the transactions contemplated
thereby, (c) the Company abandons a Plan of Liquidation or (d) a court or
regulatory body having competent jurisdiction enjoins or issues a cease and
desist or stop order with respect to or otherwise prevents the consummation
of, or a regulatory body notifies the Company that it will not approve, an
Acquisition Agreement, Asset Sale Agreement or Plan of Liquidation or the
transactions contemplated thereby and such injunction, order or notice has
become final and not subject to appeal.
	 
	 	(vii)	 	For the purposes of this definition, “Beneficial Owner”
shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

	 	(viii)	 	For the purposes of this definition, “Parent” shall mean any entity that
becomes the Beneficial Owner of at least a majority of the voting power of the
outstanding voting securities of the Company or of an entity that 

2

 

	 	 	 	survives any
merger or consolidation of the Company or any direct or indirect subsidiary of
the Company.

	 	(d)	 	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time.
	 
	 	(e)	 	“Committee” shall mean the Compensation Committee of the Board or such other
committee appointed either by the Board or by such Compensation Committee to administer
the Plan. The Committee shall be composed entirely of Directors who meet the
qualifications in Section 4 of this Plan. If at any time no Committee shall be in
office, then the functions of the Committee specified in this Plan shall be exercised
by the Board.
	 
	 	(f)	 	“Company” shall mean Sturm, Ruger & Company, Inc., a Delaware corporation.
	 
	 	(g)	 	“Deferral Period” shall mean the period during which receipt of an award of
Deferred Stock shall be deferred.
	 
	 	(h)	 	“Deferred Stock” shall mean an award of deferred stock granted to Participant
pursuant to the Plan.
	 
	 	(i)	 	“Director” shall mean any individual who is a Member of the Board
	 
	 	(j)	 	“Disability” shall mean the Participant shall be deemed to have a “Permanent
Disability” if the Participant is unable to engage in the activities required by the
Participant’s job and any other Company job suitable for Participant (as determined by
the Board of Directors of the Company) by reason of any medically determined physical
or mental impairment which can be expected to result in death or which can be expected
to last for a continuous period of not less than 120
days (in each case, as determined in good faith by a majority of the Board of
Directors of the Company, which determination shall be conclusive).

	 	(k)	 	“Effective Date” shall mean April 24, 2007.
	 
	 	(l)	 	“Employee” shall mean any employee of the Company or any Related Company.
	 
	 	(m)	 	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended from time to time, or the rules thereunder.
	 
	 	(n)	 	“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
	 
	 	(o)	 	“Fair Market Value” shall mean, with respect to Stock or other property, the
fair market value of such Stock or other property determined by such methods or
procedures as shall be established from time to time by the Committee. Unless
otherwise determined by the Committee in good faith, the per share Fair Market Value of
Stock on aparticular date shall mean (i) the closing sale price per share of
Stock on the national securities exchange on which the Stock is principally traded for
the last preceding date on which there was a sale of such Stock on such 

3

 

	 	 	 	exchange, (ii)
if the shares of Stock are then traded in an over-the-counter market, the average of
the closing bid and asked prices for the shares of Stock in such over-the-counter
market for the last preceding date on which there was a sale of such Stock in such
market or (iii) if the shares of Stock are not then listed on a national securities
exchange or traded in an over-the-counter market, such value as the Committee, in its
sole discretion, shall determine.

	 	(p)	 	“Grant Date Value” shall mean the mean between the highest and lowest
quoted sales price of a share of Stock in the New York Stock Exchange Composite
Transaction Report.
	 
	 	(q)	 	“Incentive Stock Option” shall mean a Stock Option that is an “incentive stock
option” within the meaning of Section 422 of the Code granted to an Employee of the
Company pursuant to the Plan.

	 	(r)	 	“Non-Employee Directors” shall mean those members of the Board who are not
otherwise serving as officers or Employees of the Company or any Related Company at the
same time that they are serving as members of the Board.
	 
	 	(s)	 	“Non-Qualified Stock Option” shall mean a Stock Option which is not an
Incentive Stock Option granted to a Participant pursuant to the Plan.
	 
	 	(t)	 	“Participant” shall mean an Employee, prospective Employee, Director
(including Non-Employee Directors), independent contractor, officer, advisor of the
Company, its Parent, if any, or any Related Company or other individual as designated
by the Committee, in its sole discretion, to the extent such designation does not
prevent the Plan and Awards under the Plan from being covered by Rule 701 promulgated
under the Securities Act of 1933, as amended.
	 
	 	(u)	 	“Plan” shall mean The Sturm, Ruger & Company, Inc. 2007 Stock Incentive Plan.
	 
	 	(v)	 	“Plan Year” shall mean the period (i) beginning on the date of the Company’s
Annual Stockholders meeting and (ii) ending on the day immediately prior to the
Company’s next succeeding Stockholder meeting. The first Plan Year shall begin on the
Effective Date.
	 
	 	(w)	 	“Related Company” shall mean any company during any period in which it is a
“subsidiary corporation” (as the term is defined in the Code) with respect to the
Company.
	 
	 	(x)	 	“Restricted Stock” shall mean an award of shares of Stock granted to a
Participant pursuant to the Plan.
	 
	 	(y)	 	“Stock” shall mean the common stock of the Company.
	 
	 	(z)	 	Stock Appreciation Rights” shall mean award of stock appreciation rights
granted to a Participant pursuant to the Plan.

4

 

	 	(aa)	 	“Stock Option” shall mean an option to purchase shares of Stock granted to a
Participant pursuant to the Plan, which may be either a Non-Qualified Stock Option or
an Incentive Stock Option.

	3.	 	Types of Awards. Awards under the Plan may be in the form of (a) Non-Qualified Stock
Options, (b) Incentive Stock Options, (c) Restricted Stock, (d) Deferred Stock and (e) Stock
Appreciation Rights.
	 
	4.	 	Administration

	 	(a)	 	Composition of Committee. The Plan shall be administered by the
Committee; provided, however, that to the extent determined necessary to satisfy the
requirements for exemption from Section 16(b) of the Exchange Act, with respect to the
acquisition or disposition of securities hereunder, action by the Committee may be by a
committee composed solely of two or more “non-employee directors,” within the meaning
of Rule 16b-3 as promulgated under Section 16(b) of the Exchange Act, appointed by the
Board or by the Committee, and provided further, that to the extent determined
necessary to satisfy the requirements for the exception for “qualified
performance-based compensation” under Section 162(m) of the Code, with respect to
Awards hereunder, action by the Committee may be by a committee comprised solely of two
or more “outside directors,” within the meaning of Code Section 162(m), appointed by
the Board or by the Committee. Members of the Committee shall serve at the pleasure of
the Board.

	 	(b)	 	Power and Authority of Committee. The Committee shall have the
authority to grant Awards to eligible Participants under the Plan, to adopt, alter and
repeal such administrative rules, guidelines and practices governing the Plan as it
shall deem advisable, to interpret the terms and provisions of the Plan and any Award
granted under the Plan, and to otherwise supervise the administration of the Plan. In
particular, and without limiting its authority and powers, subject to the terms of the
Plan, the Committee shall have the authority:

	 	(i)	 	to determine whether and to what extent any Award or
combination of Awards will be granted hereunder;
	 
	 	(ii)	 	to select the individuals to whom Awards will be granted;
	 
	 	(iii)	 	to determine the number of shares of Stock to be covered by
each Award granted hereunder;
	 
	 	(iv)	 	to determine the terms and conditions of any Award granted
hereunder, including, but not limited to, any vesting or other restrictions
based on performance and such other factors as the Committee may determine,
and to determine whether the terms and conditions of the Awards are satisfied;
	 
	 	(v)	 	to determine the treatment of Awards upon an Employee’s
retirement, disability, death or termination of employment, an independent
contractor’s disability, death or termination of service or a Director’s

5

 

	 	 	 	disability, death, resignation, removal from the Board or when such
Director’s successor has been elected; and
	 
	 	(vi)	 	to determine that amounts equal to the amount of any
dividends declared with respect to the number of shares covered by an Award
(including Stock Options) (a) will be paid to the holder of the Award
currently, (b) will be deferred and deemed to be reinvested, (c) will
otherwise be credited to the holder of the Award or (d) that the holder of the
Award has no rights with respect to such.

	 	(c)	 	Determinations of Committee Final and Binding. All determinations made
by the Committee pursuant to the provisions of the Plan shall be final and binding on
all persons, including the Company and Participants.

	 	(d)	 	Board Approval. Notwithstanding anything in the Plan to the contrary,
and to the extent determined to be necessary to satisfy an exemption under Rule 16b-3
with respect to the grant of an Award hereunder (and, as applicable, with respect to
the disposition to the Company of Stock hereunder), or as otherwise determined
advisable by the Committee, the terms of the grant of Awards (and, as applicable, any
related disposition to the Company) under the Plan shall be subject to the prior
approval of the Board. Any prior approval of the Board, as provided in the preceding
sentence, shall not otherwise limit or restrict the authority of the Committee to grant
awards under the Plan, including, but not limited to, the authority of the Committee to
grant Awards qualifying for the exception for qualified performance-based compensation
under Section 162(m) of the Code and the treasury regulations thereunder.

	5.	 	Stock Subject to Plan.

	 	(a)	 	Eligibility. Officers, Employees, prospective Employees, Directors
(including Non-Employee Directors), independent contractors, officers, advisors of the
Company or any Related Company are eligible to be granted Awards under the Plan.
Subject to the provisions of Section 10 and 11 of this Plan, the Participants under the
Plan shall be selected from time to time by the Committee, in its sole discretion, from
among those eligible.

	 	(b)	 	Shares of Stock Subject to Plan. The total number of shares of Stock
reserved and available for distribution under the Plan shall be 2,550,000. The shares
of Stock hereunder may consist of authorized but unissued shares or treasury shares.
The Stock reserved for issuance under the Plan shall be available for distribution with
respect to any Award. Notwithstanding the foregoing, (i) no more than 2,350,000 shares
of Stock shall be available for distribution under the Plan with respect to any Stock
Options awarded, (ii) no more than 500,000 shares of Stock shall be available for
distribution under the Plan in any one fiscal year to any single Participant with
respect to Stock Options and (iii) no single Participant shall be granted Stock
Appreciation Rights under the Plan in any one fiscal year related to more than 500,000
shares of Stock. The exercise of a Stock Appreciation Right for cash or the payment of
any other award in cash shall not count against either of

6

 

	 	 	 	these share limits, except as may otherwise be provided under Section 162(m) of the
Code. Stock reserved and available for distribution under the Plan shall further be
subject to adjustment as provided below.

	 	(c)	 	Cancellation, Surrender or Termination of Awards. To the extent a
Stock Option is surrendered, canceled or terminated without having been exercised, or
an Award is surrendered, canceled or terminated without the Award holder having
received payment of the Award, or shares awarded are surrendered, canceled, repurchased
at less than Fair Market Value or forfeited, the shares subject to such Award shall
again be available for distribution in connection with future Awards under the Plan.
Notwithstanding the foregoing, surrender, cancellation, termination, or forfeiture of a
stock option, to the extent provided under Section 162(m) of the Code and the treasure
regulations thereunder, shall not be disregarded for purposes of applying the
individual limit on available shares described in 5(b) of this Plan. At no time will
the overall number of shares issued under the Plan plus the number of shares covered by
outstanding Awards under the Plan exceed the aggregate number of shares authorized
under the Plan. The Committee may provide that any Award may be surrendered for cash
upon any terms and conditions established by the Committee.

	 	(d)	 	Capital and Corporate Changes. Subject to the provisions of Section 15
of this Plan, in the event of any merger, reorganization, consolidation, sale of all or
substantially all of the Company’s assets, recapitalization, stock dividend, stock
split, spin-off, split-up, split-off, distribution of assets (including cash) or other
change in corporate structure affecting the Stock, an equitable substitution or
adjustment, as may be determined to be appropriate by the Committee in its sole
discretion, shall be made to prevent dilution or enlargement of the rights of
participants under the Plan with respect to the aggregate number of shares reserved for
issuance under the Plan, the identity of the Stock or other securities to be issued
under the Plan, the number of shares subject to outstanding Awards and the amounts to
be paid by Award holders, the Company or any Related Company, as the case may be, with
respect to outstanding Awards. Notwithstanding the foregoing, none of the changes in
corporate structure affecting the Stock described above shall impair the rights of a
then-existing Award holder without his or her consent.

	6.	 	Stock Options. The Stock Options awarded under the Plan may be of two types: (a)
Non-Qualified Stock Options and (b) Incentive Stock Options. To the extent that any Stock
Option does not qualify as an Incentive Stock Option, it shall constitute a Non-Qualified
Stock Option. Subject to the following provisions and the provisions of Section 10 of this
Plan, Stock Options awarded under the Plan shall be in such form and shall have such terms and
conditions as the Committee may determine:

	 	(a)	 	Number of Shares Underlying Options and Option Price. The Stock Option
Award Agreement shall specify the number of shares of Stock that may be purchased, the
exercise price to be paid by the Participant and the date or dates on which, or the
conditions upon the satisfaction of which, the Stock Options will

7

 

	 	 	 	vest. The option price per share of Stock purchasable under a Stock Option shall be
determined by the Committee. The vesting of Stock Options may be conditioned upon
the completion of a specified period of service with the Company or a Related
Company, upon the attainment of specified performance goals or upon such other
criteria as the Committee may determine.

	 	(b)	 	Stock Option Term. The term of each Stock Option shall be determined
by the Committee.
	 
	 	(c)	 	Exercisability. Stock Options shall be exercisable at such time or
times and subject to such terms and conditions as shall be determined by the Committee.
If the Committee provides that any Stock Option is exercisable only in installments,
the Committee may waive such installment exercise provisions at any time in whole or in
part.
	 
	 	(d)	 	Method of Exercise. Once vested Stock Options may be exercised in
whole or in part at any time during the option period by giving written notice of
exercise to the Company specifying the number of shares to be purchased, accompanied by
payment of the purchase price. Payment of the purchase price shall be made in such
manner as the Committee may provide in the Award, which may include cash (including
cash equivalents), delivery of unrestricted shares of Stock owned by the optionee for
at least six months or subject to Awards hereunder, any other manner permitted by law
as determined by the Committee or any combination of the foregoing. The Committee may
provide that all or part of the shares received upon the exercise of a Stock Option
which are paid for using Restricted Stock or Deferred Stock shall be restricted or
deferred in accordance with the original terms of the Restricted Stock or Deferred
Stock so used.
	 
	 	(e)	 	No Stockholder Rights. An optionee shall have neither rights to
dividends (other than amounts credited in accordance with Section 4(b)(vi) of this
Plan) nor other rights of a stockholder with respect to shares subject to a Stock
Option until vested and the optionee has given written notice of exercise and has paid
for such shares.
	 
	 	(f)	 	Non-transferability. No Stock Option shall be transferable other than
by will or by the laws of descent and distribution or pursuant to a qualified domestic
relations order as defined by the Code or ERISA. During the optionee’s lifetime, all
Stock Options shall be exercisable only by the optionee. Notwithstanding the above,
the Committee may in its discretion and subject to such limitations and conditions as
the Committee deems appropriate, grant Non-Qualified Stock Options on terms that permit
the optionee to transfer the option to the optionee’s spouse, children, siblings,
parents or a trust in which these persons have more than fifty percent of the
beneficial interest.
	 
	 	(g)	 	Special Terms for Incentive Stock Options. Notwithstanding the
foregoing provisions of this Section 6, no Incentive Stock Option shall (i) have an
option price which is less than 100% of the Fair Market Value of the Stock on the date
of

8

 

	 	 	 	the award of the Incentive Stock Option (or, in the case of an Employee who owns
Stock possessing more than 10% of the total voting power of all classes of stock of
the Company (or its parent or subsidiary corporation) (a “10% shareholder”), have an
option price which is less than 110% of the Fair Market Value of the Stock on the
date of grant), (ii) be exercisable more than ten years (or, in the case of a 10%
shareholder, five years) after the date such Incentive Stock Option is awarded or
(iii) be awarded more than ten years after the date of the adoption of the Plan.
Notwithstanding anything to the contrary in this Plan, only Employees of the Company
or a parent or subsidiary of the Company (as defined in Code Sections 424(e) and
424(f)) shall be eligible to receive awards of Incentive Stock Options. By
accepting an Incentive Stock Option granted under the Plan, each such optionee
agrees, and any agreement or letter evidencing such option grant shall so provide,
that he or she will notify the Company in writing immediately after such optionee
makes a “disqualifying disposition” (as provided in Sections 421, 422 and 424 of the
Code and the treasury regulations thereunder) of any Stock acquired pursuant to the
exercise of an Incentive Stock Option granted under the Plan.

	7.	 	Restricted Stock. Subject to the following provisions and the provisions of Section
11 of this Plan, all awards of Restricted Stock shall be in such form and shall have such
terms and conditions as the Committee may determine:

	 	(a)	 	Number of Shares of Restricted Stock. The number of Shares of
Restricted Stock awarded shall be determined by the Committee. The Restricted Stock
Award Agreement shall specify the number of Restricted Stock and the date or dates on
which, or the conditions upon the satisfaction of which, the Restricted Stock will
vest.
	 
	 	(b)	 	Restricted Stock Term. The term of the Restricted Stock Award shall be
determined by the Committee.
	 
	 	(c)	 	Vesting. The vesting of Restricted Stock may be conditioned upon the
completion of a specified period of service with the Company or a Related Company, upon
the attainment of specified performance goals or upon such other criteria as the
Committee may determine.
	 
	 	(d)	 	Method of Delivery. Stock certificates representing the Restricted
Stock awarded to a Participant shall be registered in the Participant’s name, but the
Committee may direct that such certificates be held by the Company on behalf of the
Participant until vested. At the time the Restricted Stock vests, a certificate for
such vested shares shall be delivered to the Participant (or his or her designated
beneficiary in the event of death) free of all restrictions.
	 
	 	(e)	 	Non-transferability. Except as may be permitted by the Committee, no
shares of Restricted Stock may be sold, transferred, assigned, pledged or otherwise
encumbered by the Participant until such Restricted Stock is fully vested.

9

 

	8.	 	Deferred Stock Awards. Subject to the following provisions, all awards of Deferred
Stock shall be in such form and shall have such terms and conditions as the Committee may
determine:

	 	(a)	 	Number of Deferred Stock Awards. The number of shares of Deferred
Stock awarded shall be determined by the Committee. The Deferred Stock Award shall
specify the number of shares of Deferred Stock to be awarded to any Participant and the
Deferral Period during which, and the conditions under which, receipt of the shares of
Deferred Stock will be deferred.
	 
	 	(b)	 	Deferred Stock Award Term. The term of the Deferred Stock Award shall
be determined by the Committee.
	 
	 	(c)	 	Exercisability. The award of Deferred Stock, or receipt of Stock or
cash at the end of the Deferral Period, may be conditioned upon the completion of a
specified period of service with the Company or a Related Company, upon the attainment
of specified performance goals or upon such other criteria as the Committee may
determine.
	 
	 	(d)	 	Method of Settlement. At the expiration of the Deferral Period, the
Participant (or his or her designated beneficiary in the event of death) shall receive
(i) certificates for the number of shares of Stock equal to the number of shares
covered by the Deferred Stock award, (ii) cash equal to the Fair Market Value of such
Stock or (iii) a combination of shares and cash, as the Committee may determine.

	 
	 	(e)	 	No Stockholder Rights. A Participant shall have neither rights to
dividends (other than amounts credited in accordance with Section 4(b)(vi) of this
Plan) nor other rights of a stockholder with respect to the Deferred Stock until the
expiration of the Deferral Period.
	 
	 	(f)	 	Non-Transferability. Except as may be permitted by the Committee,
Deferred Stock awards may not be sold, assigned, transferred, pledged or otherwise
encumbered during the Deferral Period.

	9.	 	Stock Appreciation Rights. Subject to the following provisions, all awards of Stock
Appreciation Rights shall be in such form and shall have such terms and conditions as the
Committee may determine:

	 	(a)	 	Number of Stock Appreciation Rights. The number of Stock Appreciation
Rights Awarded shall be determined by the Committee. The Stock Appreciation Rights
Award shall specify the number of shares of Stock to be covered by each Stock
Appreciation Rights Award, the reference price thereof and the conditions and
limitations applicable to the exercise thereof. Stock Appreciation Rights may be
granted in tandem with Stock Option Awards, in addition to another Award or unrelated
to another Award. Stock Appreciation Rights granted in tandem with or in addition to
an Award may be granted either at the same time as the Award or at a later time.

10

 

	 	(b)	 	Term. The term of the Stock Appreciation Rights Award shall be
determined by the Committee. No Stock Appreciation Right granted under this Plan may
be exercised less than 6 months (except in the event of death or permanent disability
of a holder) after the date it is granted.
	 
	 	(c)	 	Exercisability. Subject to the terms of the Plan and any applicable
Award letter or agreement, the Committee shall determine, at or after the grant of a
Stock Appreciation Rights Award, the term, methods of exercise, methods and form of
settlement and any other terms and conditions of such Stock Appreciation Rights. The
award of stock or cash upon settlement may be conditioned upon the completion of a
specified period of service with the Company or a Related Company, upon the attainment
of specified performance goals or upon such other criteria as the Committee may
determine. Any such determination by the Committee may be changed by the Committee
from time to time and may govern the exercise of the Stock Appreciation Rights granted
or exercised prior to such determination as well as Stock Appreciation Rights granted
or exercised thereafter. The Committee may impose such conditions or restrictions on
the exercise of any Stock Appreciation Rights Award as it shall deem appropriate.
	 
	 	(d)	 	Settlement. Stock Appreciation Rights shall entitle the holder to
receive an amount equal to the excess of the Fair Market Value of shares of Stock to
which the Award relates on the date of exercise of the Stock Appreciation Rights over
the amount specified by the Committee. The Committee shall determine whether a Stock
Appreciation Rights shall be settled in cash, shares of Stock or a combination of cash
and Stock.
	 
	 	(e)	 	Stockholder Rights. A Participant shall have neither rights to
dividends (other than amounts credited in accordance with Section 4(b)(vi) of this
Plan) nor other rights of a stockholder with respect to the Stock Appreciation Rights
unless and until the Stock Appreciation Rights Award is settled in shares of Stock.
	 
	 	(f)	 	Non-Transferability. Except as may be permitted by the Committee,
Stock Appreciation Rights Awards may not be sold, assigned, transferred, pledged or
otherwise encumbered during unless and until the Stock Appreciation Rights Award is
settled in shares of Stock.

	10.	 	Non-Employee Director Stock Option Awards. Notwithstanding the provisions of Section
6 of this Plan, Stock Options shall be granted to each individual who becomes a Non-Employee
Director during the term of the Plan and was not serving as a Non-Employee Director on the
Effective Date on the following terms and conditions:

	 	(a)	 	Number of Shares Underlying Options and Price. Each eligible
Non-Employee Director shall be granted Stock Options to purchase 20,000 shares of
Stock. The exercise price per share of Stock purchasable under Stock Options granted
pursuant to this Section 10(a) shall be 100% of the Fair Market Value of the Stock on
the date of grant.

11

 

	 	(b)	 	Vesting. Stock Options granted pursuant to Section 10(a) shall be
exercisable commencing immediately as to 5,000 shares of Stock and on each of the first
three anniversaries of the date of grant as to 5,000 additional shares of Stock.
	 
	 	(c)	 	Limits for Stock Option Awards. The aggregate number of shares of
Stock that may be granted to any Non-Employee Director pursuant to Section 10(a) may
not exceed 20,000 shares.
	 
	 	(d)	 	Method of Exercise. Vested Stock Options granted pursuant to Section
10(a) may be exercised in whole or in part at any time during the option period by
giving written notice of exercise to the Company specifying the number of shares to be
purchased, accompanied by payment of the purchase price. Payment of the purchase price
shall be made in such manner as the Committee may provide in the Award, which may
include cash (including cash equivalents), delivery of unrestricted shares of Stock
owned by the optionee for at least six months or subject to Awards hereunder, any other
manner permitted by law as determined by the Committee, or any combination of the
foregoing. The Committee may provide that all or part of the shares received upon the
exercise of a Stock Option which are paid for using Restricted Stock or Deferred Stock
shall be restricted or deferred in accordance with the original terms of the Restricted
Stock or Deferred Stock so used. Payment of the exercise price with certificates
evidencing shares of Stock as provided above shall not increase the number of shares
available for the grant of Stock Options under the Plan.
	 
	 	(e)	 	No Stockholder Rights. An optionee granted Stock Options pursuant to
Section 10(a) shall have neither rights to dividends (other than amounts credited in
accordance with Section 4(b)(vi) of this Plan) nor other rights of a stockholder with
respect to shares subject to such Stock Option until the optionee has given written
notice of exercise and has paid for such shares.
	 
	 	(f)	 	Non-transferability. No Stock Option granted pursuant to Section 10(a)
shall be transferable other than by will or by the laws of descent and distribution or
pursuant to a qualified domestic relations order as defined by the Code or ERISA During
the optionee’s lifetime, all Stock Options granted pursuant to Section 10(a) shall be
exercisable only by the optionee. Notwithstanding the above, the Committee may, in its
discretion and subject to such limitations and conditions as the Committee deems
appropriate, grant Non-Qualified Stock Options on terms that permit the optionee to
transfer the option to the optionee’s spouse, children, siblings, parents or a trust in
which these persons have more than fifty percent of the beneficial interest.

12

 

	11.	 	Non-Employee Director Restricted Stock Awards. Notwithstanding the provisions of
Section 7 of this Plan, Restricted Stock Awards shall be granted to each individual serving as
a Non-Employee Director from time to time during the term of the Plan on the following terms
and conditions:

	 	(a)	 	Annual Grants. Each Non-Employee Director shall receive a grant of
Restricted Stock on the Effective Date and as of the date of each subsequent Annual
Meeting of Stockholders of the Company (or, if later, the date which is two business
days after the release of the Company’s earnings results for the first quarter of the
year in which such Annual Meeting of Stockholders is held).
	 
	 	(b)	 	Amount of Restricted Stock. The Restricted Stock Award granted
pursuant to Section 11(a) shall consist of shares of Stock with an aggregate Grant Date
Value of $25,000. If an individual becomes a Non-Employee Director during a Plan Year
on a date other than the date of the Annual Meeting for such Plan Year, such
Non-Employee Director shall be granted a Restricted Stock Award under Section 11(a) on
the first business day after he becomes a Non-Employee Director which shall consist of
shares of Stock with an aggregate Grant Date Value of $25,000 reduced pro-rata to
reflect the portion of the Plan Year that has elapsed prior to the date on which he
became a Non-Employee Director.
	 
	 	(c)	 	Vesting. Restricted Stock granted pursuant to Section 11(a) shall be
vested and no longer subject to a risk of forfeiture on the date of the first Annual
Meeting of Stockholders following the date of grant.
	 
	 	(d)	 	Method of Delivery. Stock certificates representing the Restricted
Stock awarded to a Non-Employee Director pursuant to Section 11(a) shall be registered
in the Non-Employee Director’s name, but the Committee may direct that such
certificates be held by the Company on behalf of the Non-Employee Director. At the
time the Restricted Stock vests, a certificate for such vested shares shall be
delivered to the Non-Employee Director (or his or her designated beneficiary in the
event of death) free of all restrictions.
	 
	 	(e)	 	Non-transferability. Except as may be permitted by the Committee, no
shares of Restricted Stock awarded pursuant to Section 11(a) may be sold, transferred,
assigned, pledged or otherwise encumbered by the Non-Employee Director until such
Restricted Stock is fully vested.

	12.	 	Tax Withholding.

	 	(a)	 	Withholding. Each Employee shall, no later than the date as of which
the value of an Award (or portion thereof) first becomes includible in the Employee’s
income for applicable tax purposes, pay to the Company, or make arrangements
satisfactory to the Committee regarding payment of, any federal, state, local or other
taxes of any kind required by law to be withheld with respect to the Award (or portion
thereof). The obligations of the Company under the Plan shall be conditional on such
payment or arrangements, and the Company (and, where

13

 

	 	 	 	applicable, any Related Company), shall, to the extent required by law, have the
right to deduct any such taxes from any payment of any kind otherwise due to the
Employee including, but not limited to, the right to withhold shares of Stock
otherwise deliverable to the Employee with respect to any Awards hereunder.

	 	(b)	 	Use of Stock to Satisfy Withholding Obligations. To the extent
permitted by the Committee, and subject to such terms and conditions as the Committee
may provide, an Employee may irrevocably elect to have the withholding tax obligation
or any additional tax obligation with respect to any Awards hereunder satisfied by (i)
having the Company withhold shares of Stock otherwise deliverable to the Employee with
respect to the Award, (ii) delivering to the Company shares of unrestricted Stock or
(iii) through any combination of withheld and delivered shares of Stock, as described
in (i) and (ii).

	13.	 	Amendments and Termination. The Board or the Committee may discontinue the Plan at
any time and may amend it from time to time. No such action of the Board or the Committee
shall require the approval of the stockholders of the Company, unless such stockholder
approval is required by applicable law or by the rules or regulations of the New York Stock
Exchange, or is otherwise determined necessary or desirable, in the sole discretion of the
Committee, to enable transactions associated with grants of Stock Options, Restricted Stock
and Deferred Stock and purchases of Stock to qualify for an exemption from Section 16(b) of
the Exchange Act or to qualify for the exception for qualified performance-based compensation
under Section 162(m) of the Code. No amendment or discontinuation of the Plan shall adversely
affect any Award previously granted without the Award holder’s written consent.

	14.	 	Termination of Employment, Independent Contractor or Board Service. If a
Participant’s employment or service with the Company or a Related Company terminates by reason
of death, disability, retirement, voluntary or involuntary termination or otherwise or a
Non-Employee Director ceases to be a member of the Board by reason of death, disability,
retirement, resignation or otherwise, the Awards granted pursuant to this Plan shall be
exercisable to the extent determined by the Committee. The Committee may provide that,
notwithstanding a previously determined Award term, an Award which is outstanding on the date
of a Participant’s death shall remain outstanding for an additional period after the date of
such death.

	15.	 	Change in Control. Unless otherwise determined by the Committee at the time of grant
or by amendment (with the holder’s consent) of such grant, in the event of a Change in Control
all outstanding Stock Option Awards under the Plan shall become fully vested and exercisable
and the restrictions and deferral limitations applicable to all outstanding Restricted Stock
and Deferred Stock awards under the Plan shall lapse and such Awards shall be deemed fully
vested immediately prior to the effective date of the Change in Control unless the surviving,
continuing, or purchasing corporation, or a parent or subsidiary thereof, as the case may be
(the “surviving corporation”), assumes such Awards or substitutes equivalent Awards therefor.
Any Stock Options which are neither assumed or substituted for by the surviving corporation in
connection with the Change in

14

 

	 	 	Control nor exercised as of the effective date of the Change in Control shall terminate and
cease to be outstanding as of the effective date of the Change in Control. 
	 
	16.	 	General Provisions.

	 	(a)	 	Additional Requirements. Each Award under the Plan shall be subject to
the requirement that, if at any time the Committee shall determine that (i) the
listing, registration or qualification of the Stock subject or related thereto upon any
securities exchange or under any state or federal law, or (ii) the consent or approval
of any government regulatory body or (iii) an agreement by the recipient of an Award
with respect to the disposition of Stock is necessary or desirable (in connection with
any requirement or interpretation of any federal or state securities law, rule or
regulation) as a condition of, or in connection with, the granting of such Award or the
issuance, purchase or delivery of Stock thereunder, such Award shall not be granted or
exercised, in whole or in part, unless such listing, registration, qualification,
consent, approval or agreement shall have been effected or obtained free of any
conditions not acceptable to the Committee.
	 
	 	(b)	 	Award Agreements. Each Award granted pursuant to the Plan shall be
evidenced by a written Award Agreement executed by the Company and the person to whom
such Award is granted or a grant letter executed by the Company.
	 
	 	(c)	 	Investment Purposes. The Committee may require a Participant to give
satisfactory assurances that the shares purchased by him or her pursuant to any Award
are being purchased for investment and not with a view to resale or distribution, and
will not be transferred in violation of applicable securities laws.
	 
	 	(d)	 	Registration. The Committee may condition the exercise of an Award
upon the listing, registration or qualification of the shares covered by such Award
upon a securities exchange or under applicable securities laws.
	 
	 	(e)	 	Plan Not a Contract of Employment. The Plan is not an employment
contract and neither the Plan nor any action taken hereunder shall be construed as
giving to a Participant the right to be retained in the employ of the Company or a
Related Company. The Company or, as applicable, the Related Company may terminate the
Participant’s employment as freely and with the same effect as if the Plan were not in
existence. Nothing set forth in the Plan shall prevent the Company or a Related
Company from adopting other or additional compensation arrangements.
	 
	 	(f)	 	Determinations Not Uniform. Determinations by the Committee under the
Plan relating to the form, amount, and terms and conditions of Awards need not be
uniform, and may be made selectively among persons who receive or are eligible to
receive Awards under the Plan, whether or not such persons are similarly situated.
	 
	 	(g)	 	Indemnification. No member of the Board or the Committee, nor any
officer or Employee of the Company or a Related Company acting on behalf of the Board
or

15

 

	 	 	 	the Committee, shall be personally liable for any action, determination or
interpretation taken or made with respect to the Plan, and all members of the Board
and the Committee, and all officers or Employees of the Company and Related
Companies acting on their behalf, shall, to the extent permitted by law, be fully
indemnified and protected by the Company in respect of any such action,
determination or interpretation.

	 	(h)	 	Awards Not Includable for Benefit Purposes. Income recognized by an
Employee pursuant to the Plan shall not be included in the determination of benefits
under any other executive compensation or Employee benefit or other compensatory plan
of the Company or a Related Company, or any entity controlled by the Company or a
Related Company, except as specifically provided in any such other plan or as otherwise
provided by the Committee.
	 
	 	(i)	 	Severability. If any provision of the Plan is held to be void,
illegal, unenforceable or otherwise in conflict with the law governing the Plan, such
provision shall be deemed to be restated to reflect as nearly as possible the original
intentions of the parties in accordance with applicable law, and the other provisions
of the Plan shall remain in full force and effect.
	 
	 	(j)	 	Headings and Governing Law. The text of the Plan shall control and the
headings to the Sections are for reference purposes only and do not limit or extend the
meaning of any of the Plan’s provisions. Except as to matters of federal law, the Plan
and all rights hereunder shall be governed by, and construed in accordance with, the
laws of the State of Delaware, without reference to the principles of conflicts of law
thereof.
	 
	 	(k)	 	Unfunded Plan. The Plan is intended to constitute an “unfunded” plan
for incentive compensation. With respect to any payments not yet made to a recipient
by the Company, nothing contained herein shall give any such recipient any rights that
are greater than those of a general creditor of the Company.
	 
	 	(l)	 	Applicable Laws. The obligation of the Company to sell or deliver
shares with respect to the Awards granted under the Plan shall be subject to all
applicable laws, rules and regulations, including all applicable federal and state
securities laws, and the obtaining of all such approvals by governmental agencies as
may be deemed necessary or appropriate by the Committee. Moreover, each Award is
subject to the requirement that, if at any time the Committee determines, in its
absolute discretion, that the listing, registration or qualification of shares issuable
pursuant to an Award is required by any securities exchange or under any state or
federal law, or the consent or approval of any governmental regulatory body is
necessary or desirable as a condition of, or in connection with, the grant of an Award,
or the issuance of shares thereunder, no Awards shall be granted or shares issued, in
whole or in part, unless such listing, registration, qualification, consent or approval
has been effected or obtained, free of any conditions, as acceptable to the Committee.
In the event that the issuance or disposition of shares acquired pursuant to an Award
is not covered by a then current registration statement under

16

 

	 	 	 	the Exchange Act and is not otherwise exempt from such registration, such shares
shall be restricted against transfer to the extent required by the Exchange Act or
regulations thereunder, and the Committee may require the holder of an Award
receiving shares pursuant to that Award, as a condition precedent to receipt of such
shares, to make such representations as the Committee deems appropriate, including,
without limitation, a representation to the Company in writing that the shares
acquired by such Participant are acquired for investment only and not with a view to
distribution.

	17.	 	Effective Date and Duration. The Plan shall be effective on the Effective Date,
subject, to the extent required by law, to approval by the Company’s stockholders. No awards
of Stock Options, Restricted Stock, Deferred Stock or Stock Appreciation Rights shall be made
under the Plan after the date that is 10 years from the Effective Date.

17

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