Document:

Exhibit 10.32

 

[JNI LOGO]

 

JNI Corporation

10945 Vista Sorrento Parkway

San Diego, CA 92130

 

September 13, 2002

 

 

Paul Kim

 

Re:          Twelve-Month Retention Agreement

 

Dear Paul,

 

This letter
outlines JNI Corporation’s (“JNI”) Twelve-Month Retention Agreement (the
“Agreement”) to be effective as of September 1, 2002, offered specifically to
you as a designated member of JNI’s senior management team by the Board of
Directors.  JNI’s purpose in offering
you this severance package is to ensure your continued full attention and
dedication to the performance of your job duties and to provide you with
compensation upon an involuntary termination without Cause (as defined below)
during the next twelve (12) months (September 1, 2002 through August 31, 2003,
hereinafter referred to as the “Severance Period”).

 

1.                                       Current
Agreements in Effect.  You continue
to be employed by JNI as Chief Financial Officer on an at-will basis pursuant
to the offer letter you signed dated September 18, 1999 (“Offer Letter”).  Nothing in this Agreement is intended to or
should be construed to contradict, modify or alter your at-will employment
relationship with JNI.  You and JNI are
also parties to a Severance and Change of Control Agreement dated June 21, 2002
(“Change of Control Agreement”), which provides for severance pay and
accelerated vesting of stock options if your employment terminates under
certain circumstances within twelve (12) months following a Change of Control
(as that term is defined in the Change of Control Agreement).  Nothing in this Agreement is intended to or
should be construed to contradict, modify or alter the terms of the Change of
Control Agreement and the Change of Control Agreement shall continue in full
force and effect.

 

2.                                       Severance
Package.  Although you are employed
at-will, in the event JNI terminates your employment without Cause during the
Severance Period and you are not eligible to receive the severance benefits
described in the Change of Control Agreement, JNI agrees to provide you with
the following “Severance Package,” provided you comply with the conditions set
forth in section 3 below:  a severance
payment equal to six (6) months of  your
base salary then in effect, less all appropriate deductions, including federal,
state and local income and employment taxes, payable in equal installments in
accordance with JNI’s regular payroll schedule.

 

3.                                       Conditions
To Receive Severance Package.  The
Severance Package described in section 2 above will be paid provided you meet
the following conditions: (a) you comply with all surviving provisions of any
confidentiality or proprietary rights agreement signed by you in connection
with your employment with JNI; (b) you execute a full general release, in a
form acceptable to JNI, releasing all claims, known or unknown, that you may
have against JNI, and any subsidiary or related entity, their officers,
directors, shareholders, employees and agents, arising out of or any way
related to your employment or termination of employment with JNI or any acts,
transactions or occurrences between you and JNI up through the date of
termination; and (c)  you are not
eligible to receive the severance benefits described in the Change of Control
Agreement or any other plan, policy or agreement.

 

 

4.                                       Definition
of Cause.  For purposes of this
Agreement, your employment will be considered terminated for “Cause” if the
termination is due to any of the following acts: (i) theft, dishonesty, or
falsification of any JNI records; (ii) improper disclosure of JNI’s
confidential or proprietary information or breach of JNI’s confidentiality or
proprietary rights agreement; (iii) failure or inability to perform any
reasonably assigned duties after written notice and a reasonable opportunity to
cure; or (iv) conviction of any criminal act that impairs your ability to
perform your duties as an employee of JNI, as determined by JNI.

 

5.                                       No
Other Severance Benefits.  You
acknowledge and agree that the Severance Package provided pursuant to this
Agreement is in lieu of any other severance benefits for which you may be
eligible under any other agreement, or any unearned or unvested incentive
compensation payments, and/or any other JNI severance plan or practice,
including, but not limited to, any promises regarding severance set forth in
the Offer Letter, other than those severance benefits expressly set forth in
the Change of Control Agreement.  To the
extent, however, you become eligible to receive the severance benefits
described in the Change of Control Agreement, you shall not receive, nor be
entitled to, the Severance Package described in this Agreement.  In no circumstance shall you receive the
severance benefits described in the Change of Control Agreement and  the Severance Package described in this
Agreement.

 

6.                                       General
Provisions.  If any provision of
this Agreement is held by a court of competent jurisdiction to be invalid, void
or unenforceable, the remaining provisions shall nevertheless continue in full
force and effect without being impaired or invalidated in any way.  In addition, the rights and obligations of
JNI under this Agreement shall inure to the benefit of and shall be binding
upon the successors and assigns of JNI. 
You shall not be entitled to assign any of your rights or obligations
under this Agreement.  Finally, this
Agreement may be amended or modified only by a written instrument executed by
both parties hereto.  No oral waiver,
amendment or modification will be effective under any circumstances whatsoever.

 

If the foregoing terms and
conditions are entirely satisfactory to you, please date and sign below and
return the original to me by September 20, 2002.

 

Sincerely,

 

	
  /s/ John C.
  Stiska

  	
   

  
	
  By:  John C. Stiska

  
	
  Chairman of
  the Board

  

 

*     *     *

 

I have read this letter
agreement in its entirely and agree to the terms and conditions contained
herein.

 

	
  Dated: 

  	
  9/20/02

  	
   

  	
  /s/ Paul Kim

  	
   

  
	
   

  	
   

  	
  Paul Kim

  
						

 

2Exhibit 10.15

 

GRANITE

BROADCASTING CORPORATION

MANAGEMENT STOCK PLAN

As

Amended and Restated January 1, 2003

 

1.                                      Purpose.

 

The purpose of this plan is to keep senior executives of experience and

ability in the employ of Granite Broadcasting Corporation and to compensate

them for their contributions to the growth and profits of the Company and its

Subsidiaries and thereby induce them to continue to make such contributions in

the future.

 

2.                                      Definitions.

 

For purposes of this Plan, the following terms will have the

definitions set forth below:

 

(a)                                  “Award”

shall mean a Bonus Share award or a Performance Award determined in accordance

with the terms of the Plan.

 

(b)                                 “Board”

shall mean the Company’s Board of Directors.

 

(c)                                  “Bonus

Shares” shall mean the shares of Common Stock (Nonvoting) of the

Company reserved pursuant to Section 3 of the Plan that are awarded to a

Participant pursuant to Section 6 of the Plan.

 

(d)                                 “Code”

shall mean the Internal Revenue Code of 1986, as amended.

 

(e)                                  “Committee” shall

mean a committee of at least two members of the Board appointed by the Board to

administer the Plan and to perform the functions set forth herein and who are

“non-employee directors” within the meaning of Rule 16b-3 as promulgated under

Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange

Act”), and who are also “outside directors” within the meaning of Section

162(m) of the Code.

 

(f)                                    “Common

Stock (Nonvoting)” shall mean the common stock (Nonvoting), par

value $0.01 per share, of the Company.

 

(g)                                 “Company”

shall mean Granite Broadcasting Corporation.

 

(h)                                 “Covered

Employee” shall have the meaning set forth in Section 162(m)(3) of

the Code.

 

(i)                                     “Effective

Date” shall have the meaning set forth in Section 16 of the Plan.

 

(j)                                     “Eligible Employee”

shall have the meaning set forth in Section 7(a) of the Plan.

 

(k)                                  “Fair Market

Value” per share of Common Stock (Nonvoting) as of a particular date

shall mean (i) the last reported sale price of a share of Common Stock

(Nonvoting) on the Nasdaq Small Cap Market or such other national quotation

system or exchange on which the Common Stock (Nonvoting) is then trading on the

last trading date immediately prior to such 

 

 

date or, if there is no such sale on the relevant date, then on the

last previous day on which a sale was reported; or (ii) if the Company’s Common

Stock (Nonvoting) is not listed or admitted to trading on any national

quotation system or exchange on such date, the Fair Market Value shall be the

value established by the Board in good faith.

 

(l)                                     “Participant”  shall mean an Eligible Employee to whom

Bonus Shares or Performance Awards are allocated under this Plan.

 

(m)                               “Performance

Award”  shall have the

meaning set forth in Section 4 of the Plan.

 

(n)                                 “Performance

Goals” shall mean or may be expressed in terms of any one or more of

the following business criteria: 

revenue; earnings before interest, taxes, depreciation and amortization;

funds from operations; funds from operations per share; operating income; pre

or after tax income; cash available for distribution; cash available for

distribution per share; net earnings; earnings per share; return on equity;

return on assets; share price performance; improvements in the Company’s

attainment of expense levels; implementing or completion of critical projects,

including, without limitation, improvement in the Company’s credit and/or

achieving debt refinance; or improvement in cash-flow (before or after

tax).  A Performance Goal may be

measured over a Performance Period on a periodic, annual, cumulative or average

basis and may be established on a corporate-wide basis or established with

respect to one or more operating units, divisions, Subsidiaries, acquired

businesses, minority investments, partnerships or joint ventures.

 

(o)                                 “Performance

Objective” shall mean the level or levels of performance required to

be attained with respect to specified Performance Goals in order for a

Participant to become entitled to specified rights in connection with an

Award.  The Committee may provide for adjustments

to performance to eliminate the effects of changes for restructuring,

extraordinary items, discontinued operations, other non-recurring charges, the

cumulative effects of accounting changes, each as defined in United States

Generally Accepted Accounting Principles, that occur during a Performance

Period, in each case, to preserve the economic intent of any Performance Award;

provided, that, with respect to Performance Awards granted to

Covered Employees, any such adjustments shall only be made to the extent that

the Award will still qualify as “performance-based compensation” under Section

162(m) of the Code.

 

(p)                                 “Performance

Period” shall mean the calendar year, or such other shorter or

longer period designated by the Committee, during which performance will be

measured in order to determine a Participant’s entitlement to receive payment

of an Award.

 

(q)                                 “Plan”

shall mean the Granite Broadcasting Corporation Management Stock Plan.

 

(r)                                    “Subsidiary”

or “Subsidiaries” shall mean a corporation or corporations of which

the Company owns, directly or indirectly, shares having a majority of the

ordinary voting power for the election of directors.

 

2

 

3.                                      Share

Reserve.

 

(a)                                  Share

Reserve for Bonus Shares and Performance Awards.  The Company will establish a Bonus Share and

Performance Award reserve to which will be credited 2,000,000 shares of the

Common Stock (Nonvoting) of the Company. Should such shares, due to a stock

split or stock dividend or combination of shares or any other change, or

exchange for other securities, by reclassification, reorganization, merger,

consolidation, recapitalization or otherwise, be increased or decreased or

changed into, or exchanged for, a different number or kind of shares of stock

or other securities of the Company or of another corporation, the number of

shares then remaining in the reserve shall be appropriately adjusted to reflect

such action. If any such adjustment results in a fractional share, the fraction

shall be disregarded.

 

(b)                                 Adjustments

to Reserve. Upon the allocation of shares hereunder, the reserve

will be reduced by the number of shares so allocated and, upon the forfeiture

of any previously allocated shares, the reserve shall be increased by such

number of shares, and such shares may again be the subject of allocations

hereunder.

 

(c)                                  Payment of

Bonus Shares or Performance Awards. 

The Committee shall in its sole discretion determine the distribution of

Performance Awards and Bonus Shares, both of which, to the extent payable in

shares of Common Stock (Nonvoting), may be paid from authorized but unissued

shares or from treasury shares.  All

authorized and unissued shares of Common Stock (Nonvoting) issued in settlement

of Bonus Shares or Performance Awards in accordance with the Plan shall be

fully paid and non-assessable shares and free from preemptive rights.

 

4.                                      Awards.

 

Awards under the Plan may consist of (i) Bonus Shares or (ii) stock or

cash Awards based on achievement of Performance Goals (“Performance

Awards”).  Awards shall be subject to

the terms and conditions of the Plan and, in accordance with Section 8(a), may

be evidenced by an agreement containing such additional terms and conditions,

not inconsistent with the provisions of the Plan, as the Committee shall deem

desirable.

 

5.                                      Performance

Awards.

 

(a)                                  Types

of Performance Awards.  The

Committee may grant Performance Awards to Eligible Employees in the form of (i)

actual shares of Common Stock (Nonvoting), (ii) Common Stock (Nonvoting) units having

a value equal to an identical number of shares of Common Stock (Nonvoting) or

(iii) cash.  In the event that a share

certificate is issued in respect of a Performance Award before such Award is

earned, such certificate shall be registered in the name of the Participant,

but shall be held by the Company until the time the shares issued pursuant to a

Performance Award are earned.  The

vesting or exercise of a Performance Award may be conditioned on any combination

of the achievement of one or more Performance Objectives as the Committee shall

determine at the time of grant.  The

length of any Performance Period shall be determined by the Committee in its

sole discretion.  The Committee shall

also determine in its sole discretion whether Performance Awards shall be paid

in cash, shares of Common Stock (Nonvoting), or a combination of cash and

shares of Common Stock 

 

3

 

(Nonvoting), based on the Fair

Market Value of the Common Stock (Nonvoting) on the date the Award is earned.

 

(b)                                 Performance

Objectives. With respect to each Performance Award, the Committee shall

establish the Performance Objective consisting of one or more business criteria

permitted as Performance Goals hereunder, one or more levels of performance

with respect to each such criteria, and the amount or amounts payable or other

rights that the Participant will be entitled to upon achievement of such levels

of performance.  The Performance

Objective shall be established by the Committee prior to, or reasonably

promptly following the inception of, a Performance Period but, to the extent

required by Section 162(m) of the Code, by no later than the earlier of

the date that is ninety days after the commencement of the Performance Period

or the day prior to the date on which twenty-five percent of the Performance

Period has elapsed.  More than one

Performance Goal may be incorporated in a Performance Objective, in which case

achievement with respect to each Performance Goal may be assessed individually

or in combination with each other. 

Performance Objectives shall be objective and shall otherwise meet the

requirements of Section 162(m) of the Code. 

Performance Objectives may differ for Performance Awards granted to any

one Participant or to different Participants. 

A Performance Award to a Participant who is a Covered Employee shall

(unless the Committee determines otherwise) provide that in the event of the

Participant’s termination of service prior to the end of the Performance Period

for any reason, such Performance Award will be payable only (i) if the

applicable Performance Objectives are achieved and (ii) to the extent, if any,

as the Committee shall determine.

 

(c)                                  Certification.  Following the completion of each Performance

Period, the Committee shall certify in writing, in accordance with the

requirements of Section 162(m) of the Code, whether the Performance Objectives

and other material terms of the Performance Award have been achieved or

met.  Unless the Committee determines

otherwise, Performance Awards shall not be settled until the Committee has made

the certification specified under this Section 5(c).

 

(d)                                 Adjustment.  The Committee may, in its discretion, reduce

or eliminate the amount of payment with respect to the Performance Award to a

Covered Employee, notwithstanding the achievement of specified Performance

Objectives.

 

(e)                                  Maximum

Amount Payable.  With respect to all

Performance Periods ending in any one calendar year, the  maximum amount which may be earned by any

single Participant under all Performance Awards granted under the Plan shall be

limited to $3,500,000.  In applying this

annual limit with respect to any Performance Award that is not entirely settled

in cash, the Fair Market Value of any shares of Common Stock (Nonvoting) or

other property earned by a Participant shall be measured as of the close of the

applicable Performance Period.

 

6.                                      Bonus

Shares.

 

Subject to such performance and employment conditions as the Committee

may determine, Bonus Shares may be granted by the Committee to Eligible

Employees under the Plan.  Any Bonus

Shares granted under this Section 6 may be forfeited to the extent so provided

in the Award agreement, as determined by the Committee.  Payment of Bonus Share Awards 

 

4

 

made under this Section 6,

which are based on the value of Common Stock (Nonvoting), may be settled in

Common Stock (Nonvoting) or in cash or in a combination thereof (based upon the

Fair Market Value of the Common Stock (Nonvoting) on the date of payment), all

as determined by the Committee in its sole discretion. Any such cash payment

shall be made to the Participant as of the date or dates on which the Award

vests and/or becomes payable, and shall be equal to the Fair Market Value of

the shares of Common Stock (Nonvoting) of the Company underlying the vesting

portion of such Award that is being settled in cash.

 

7.                                      Eligibility

and Making of Grants.

 

(a)                                  Eligible

Employees.  Any salaried

executive employee of the Company or any Subsidiary (including officers and

directors, except for persons serving as directors only) shall be eligible to

receive Awards pursuant to the Plan (each an “Eligible Employee”).

 

(b)                                 Selection by

the Committee.  The Committee

may from time to time select Eligible Employees to whom to award Performance

Awards and/or Bonus Shares in accordance with the other terms and conditions of

this Plan.  In selecting those Eligible

Employees to whom to allocate Bonus Shares and/or Performance Awards and in

determining the amount of Bonus Shares and/or Performance Awards to allocate,

the Committee shall consider the position and responsibilities of the Eligible

Employees, the value of their services to the Company and its Subsidiaries and

such other factors as the Committee deems pertinent.

 

(c)                                  Participation

in Stock Option Plans.  A

person who has received options to purchase stock under any stock option plan

of the Company or a Subsidiary may exercise the same in accordance with their

terms, and will not by reason thereof be ineligible to receive Awards under

this Plan.

 

(d)                                 Limit on

Number of Allocable Shares. 

The total number of shares of Common Stock (Nonvoting) that may be

allocated pursuant to this Plan shall not exceed the amount available therefor

in the share reserve specified in Section 3(a).

 

8.                                      Form

of Grants.

 

(a)                                  Award

Agreement.  If deemed

necessary by the Committee, any Award granted under the Plan may be evidenced

by an Award agreement between the Company and the Participant incorporating the

terms and conditions set forth in the Plan, together with such other terms and

conditions not inconsistent with the Plan.

 

(b)                                 Forfeiture

on Termination.  Except as

otherwise provided in an individual Award agreement, if a Participant

terminates employment with the Company or its Subsidiaries for any reason

(other than death or disability as defined in Section 22(e)(3) of the Code),

any Bonus Shares allocated to such Participant that were to be issued as of a

date following the Participant’s termination date shall be forfeited and any

Performance Award that has not been earned shall be forfeited.  If a Participant’s employment with the

Company or its Subsidiaries terminates due to death or disability (as defined

above), all outstanding Bonus Shares (whenever originally granted) of such

Participant shall vest as of the date of death or termination of employment due

to disability and in the sole discretion of the Company, any Performance Award

that has not been earned shall be paid in whole or in part or it shall

terminate without payment.

 

5

 

(c)                                  Notice.  When an Award is made, the Committee shall

advise the Participant and the Company thereof by delivery of written notice.

 

9.                                      Investment

Purpose.

 

The Company

may require that, in acquiring any shares of Common Stock (Nonvoting), the

Participant agree with, and represent to, the Company, in writing, that the

Participant is acquiring such shares of Common Stock (Nonvoting) for the

purpose of investment and with no present intent to transfer, sell, or

otherwise dispose of such shares except for such distribution by a legal

representative as shall be required by will or the laws of any jurisdiction in

winding up the estate of any Participant. Such shares shall be transferable thereafter

only if the proposed transfer is permitted under the Plan and if, in the

opinion of counsel (who shall be satisfactory to the Company), such transfer at

such time complies with applicable securities laws.

 

10.                               Issuance.

 

After a

Participant satisfies the requirements of any Award, shares of Common Stock

(Nonvoting) payable in connection with the Award shall be promptly issued to

the Participant. Unless otherwise provided in an Award agreement, the

Participant shall not be required to make any payment to the Company upon the

payment, allocation or issuance of any Award, except that the Company shall

withhold all amounts required to be withheld by law in respect of federal,

state and local taxes, social security payments and the like in accordance with

Section 12(b) of the Plan.

 

11.                               Administration

and Interpretation of the Plan.

 

(a)                                  The

Committee shall have exclusive power, discretion and final authority to

administer Awards and provisions under the Plan relating to Awards, including

but not limited to Performance Objectives, Performance Goals and Performance

Periods.  Any determination by the

Committee in carrying out, administering, or construing this Plan relating to

Awards shall be final and binding for all purposes and upon all interested

persons and their heirs, successors, and personal representatives.

 

(b)                                 It

is the intent of the Company that the Plan satisfy, and be interpreted in a

manner that satisfies, the applicable requirements of Rule 16b-3 as promulgated

under Section 16 of the Exchange Act so that Participants will be entitled to

the benefit of Rule 16b-3, or any other rule promulgated under Section 16 of

the Exchange Act, and will not be subject to short-swing liability under

Section 16 of the Exchange Act. 

Accordingly, if the operation of any provision of the Plan would

conflict with the intent expressed in this Section 11(b), such provision to the

extent possible shall be interpreted and/or deemed amended so as to avoid such

conflict.

 

(c)                                  All

costs and expenses incurred in the operation and administration of this Plan

will be borne by the Company.

 

12.                               Special

Provisions.

 

(a)                                  Deferral of

Awards. The Committee shall be authorized to establish procedures

pursuant to which the payment of any Award may be deferred voluntarily by the

Participant or 

 

6

 

mandatorily by the

Company.  Subject to the provisions of

the Plan and any Award agreement, a Participant may, if so determined by the

Committee, be entitled to receive, currently or on a deferred basis, cash

dividends, or cash payments in amounts equivalent to cash dividends on shares,

with respect to the number of shares of Common Stock (Nonvoting) covered by the

Award, as determined by the Committee, in its sole discretion, and the Committee

may provide that such amounts (if any) shall be deemed to have been reinvested

in additional shares or otherwise reinvested.

 

(b)                                 Withholding.

Upon the vesting or payment of any Award or portion thereof under the Plan, the

Committee shall, in its sole discretion, have the right to require any

Participant, and such Participant by accepting the Awards granted under the

Plan agrees, to pay to the Company the amount of any taxes which the Company

shall be required to withhold with respect thereto.  With the consent of the Committee, in its sole discretion, if the

Award is settled in shares of Common Stock (Nonvoting), a Participant may elect

to pay to the Company an amount equal to the amount of the taxes which the

Company shall be required to withhold by delivering to the Company shares of

Common Stock (Nonvoting) having a Fair Market Value equal to the amount of the

withholding tax obligation as determined by the Company.

 

(c)                                  Nontransferability.  No Award shall be assignable or transferable

by the Participant, otherwise than by will or the laws of descent and

distribution.

 

(d)                                 Unfunded

Status of Awards; Creation of Trusts.  The Plan is intended to constitute an “unfunded” plan for

incentive and deferred compensation. 

With respect to any amounts payable to a Participant pursuant to an

Award, nothing contained in the Plan (or in any documents related thereto), nor

the creation or adoption of the Plan, the grant of any Award, or the taking of

any other action pursuant to the Plan shall give any such Participant any

rights that are greater than those of a general unsecured creditor of the

Company; provided,  that, the Committee may authorize the creation

of trusts and deposit therein cash or other property or make other

arrangements, to meet the Company’s obligations under the Plan.  Such trusts or other arrangements shall be

consistent with the “unfunded” status of the Plan unless the Committee

otherwise determines with the consent of each affected Participant.  The trustee of such trusts may be authorized

to dispose of trust assets and reinvest the proceeds in alternative

investments, subject to such terms and conditions as the Committee may specify

in accordance with applicable law.

 

(e)                                  Exemption

Under Section 162(m) of the Code. Performance Awards issued under the

Plan are intended to be exempt from the application of Section 162(m) of the

Code, which restricts under certain circumstances the Federal income tax

deduction for compensation paid by a public company to Covered Employees in

excess of $1 million per year.  The

Committee may, without stockholder approval, amend the Plan retroactively or

prospectively to the extent it determines necessary in order to comply with any

subsequent clarification of Section 162(m) of the Code required to preserve the

Company’s Federal income tax deduction for compensation paid pursuant to

Performance Awards granted under the Plan.

 

7

 

13.                               Limitations.

 

(a)                                  No Right to

Allocation.  No person will

at any time have any right to receive an allocation of Bonus Shares or

Performance Awards hereunder and no person will have authority to enter into an

agreement for the making of an allocation or to make any representation or

warranty with respect thereto.

 

(b)                                 Rights of

Participants.  Participants

who receive Bonus Shares or Performance Awards allocations will have no rights

in respect thereof other than those set forth in the Plan, and such rights may

not be assigned or transferred. Before issuance of shares of Common Stock

(Nonvoting), no such shares will be earmarked for a Participant’s accounts nor

will such Participants have any rights as stockholders with respect to such

shares and, subject to Section 3, no adjustment shall be made for dividends or

distributions or other rights in respect of any share for which the record date

is prior to the date on which Participant shall become the holder of record

thereof.

 

(c)                                  No Right to

Continued Employment. 

Neither the Company’s action in establishing the Plan, nor any action

taken by it or by the Board or the Committee under the Plan, nor any provision

of the Plan, will be construed as giving any person the right to continue in

the employ of the Company or any Subsidiary.

 

(d)                                 Limitation

on Actions.  Every right of

action by or on behalf of the Company or by any shareholder against any past,

present, or future member of the Board, the Committee, or any officer or

employee of the Company arising out of or in connection with this Plan shall,

regardless of the place where the action may be brought and regardless of the

place of residence of such director, committee member, officer or employee,

cease and be barred by the expiration of three years from the later of:

 

(i)                                     the

date of the act or omission in respect of which such right of action arises; or

 

(ii)                                  the

first date upon which there has been made generally available to shareholders

an annual report of the Company and a proxy statement for the annual meeting of

shareholders following the issuance of such annual report, which annual report

and proxy statement alone, or together set forth, for the related period, the

amount of the allocations.

 

In addition,

any and all rights of action by any employee (past, present or future) against

the Company or any member of the Committee arising out of or in connection with

this Plan will, regardless of the place where the action may be brought and

regardless of the place of residence of any Committee member, cease and be

barred by the expiration of three years from the date of the act or omission in

respect of which such right of action arises.

 

14.                               Amendment,

Suspension or Termination of Plan.

 

The Board may

amend, suspend or terminate the Plan in whole or in part at any time; provided

that such amendment will not affect adversely rights or obligations with respect

to allocations previously made; and provided further, that no modification of

the Plan by the Board without approval of the stockholders will (i) increase

the maximum number of shares of 

 

8

 

Common Stock (Nonvoting) in the

share reserve pursuant to Section 3 if such approval is required under any

applicable law, regulation or listing exchange rule; (ii) change the provisions

of Section 5 with respect to the total amount payable with respect to any Performance

Awards that may be granted under the Plan; or (iii) render any member of the

Committee eligible to receive an allocation at any time while such person is

serving on the Committee.

 

15.                               Governmental

Compliance.

 

Each Award under the Plan shall be subject to the requirement that if

at any time the Committee shall determine that the listing, registration or

qualification of any shares of Common Stock (Nonvoting) issuable or deliverable

under such Award upon any national quotation system or securities exchange or

under any Federal or state law, or the consent or approval of any governmental

regulatory body, is necessary or desirable as a condition thereof or in

connection therewith, no such shares of Common Stock (Nonvoting) may be issued

or delivered unless such listing, registration, qualification, consent or

approval shall have been effected or obtained free of any conditions not

acceptable to the Committee.

 

16.                               Effective

Date.

 

The original

effective date of this Plan was April 27, 1993.  This amended and restated Plan is effective on January 1,

2003 (the “Effective Date”), subject to subsequent approval thereof by the

Company’s stockholders at the next meeting of stockholders to occur after the

Effective Date, and shall remain in effect until it has been terminated

pursuant to Section 14.  If the Plan is

not approved by the stockholders at such meeting, any Performance Awards

granted under the Plan before the date of such annual meeting shall be void ab

initio and of no further force and effect.  Unless the Company determines to submit the Plan and the

definition of “Performance Goal” to the Company’s stockholders at the first

stockholder meeting that occurs in the fifth year following the year in which

the Plan was last approved by stockholders (or any earlier meeting designated

by the Board), in accordance with the requirements of Section 162(m) of the

Code, and such stockholder approval is obtained, then no further Performance

Awards shall be made under the Plan after the date of such stockholder meeting.

 

17.                               Governing

Law.

 

The Plan will

be governed by the laws of the State of New York without regard to its conflict

of law principles.

 

9

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