Document:

Stock Purchase Agreement

 Exhibit 10.1 
  
 STOCK PURCHASE AGREEMENT 
 by and among 
  
 PRICESMART, INC. 
  
 and 
  
 THE ENTITIES LISTED ON SCHEDULE I HERETO 
  
 This STOCK PURCHASE AGREEMENT (this “Agreement”) is made and
entered into effective as of April 19, 2005 by and among PriceSmart, Inc., a Delaware corporation (“PriceSmart”), and the entities listed on Schedule I hereto (each, a “Price Entity, and collectively, the “Price Entities”).
For purposes of this Agreement, each of PriceSmart and each of the Price Entities is referred to as a “Party,” and collectively, as the “Parties.” 
  
 W I T N E S S E T H: 
  
 WHEREAS, each of the Price Entities desires to sell that number of shares of capital stock of PSMT (Guatemala), S.A. (“PSMT Guatemala”) set
forth next to its name on Schedule I hereto under the heading “Number of PSMT Guatemala Shares” (the “Purchased Shares”) to PriceSmart, and PriceSmart desires to purchase those shares by exchanging those shares for the number of
shares of PriceSmart common stock, par value $0.0001 per share (“PriceSmart Common Stock”), set forth next to such Price Entity’s name on Schedule I hereto under the heading “Number of PriceSmart Shares,” on the terms and
conditions set forth in this Agreement; 
  
 WHEREAS, for the
purposes of this Agreement, the Parties have agreed that the aggregate purchase price for the Purchased Shares shall be Six Million Six Hundred Thousand United States Dollars (USD$6,600,000); and 
  
 WHEREAS, for the purposes of this Agreement, the Parties have agreed to value
the PriceSmart Common Stock at Eight United States Dollars (USD$8.00) per share. 
  
 NOW, THEREFORE, THE PARTIES HEREBY AGREE AS FOLLOWS: 
  
 1. AGREEMENT TO PURCHASE AND SELL STOCK. Each of the Price Entities, severally and not jointly, agrees to sell the number of Purchased Shares set forth next to its name on Schedule I to PriceSmart at the Closing (as
defined in Section 2), and PriceSmart agrees to purchase the Purchased Shares from the Price Entities at the Closing, for the number of shares of PriceSmart Common Stock indicated on Schedule I hereto (the “Issued Shares”). 
  
 2. CLOSING. The purchase and sale of the Purchased Shares will take place at
the offices of PriceSmart at 9740 Scranton Road, San Diego CA 92121, on April 21, 2005, or at such other time and place as PriceSmart and the Price Entities may mutually agree (which time and place are referred to in this Agreement as the
“Closing”). 
  
  

 2.1 At the Closing, each of the Price Entities will deliver or cause to be delivered to PriceSmart a
properly endorsed certificate representing the Purchased Shares owned by it, and/or any other document(s) required under Guatemala law to effectuate the transfer of the Purchased Shares to PriceSmart or its designee. 
  
 2.2 At the Closing, PriceSmart will issue irrevocable transfer agent
instructions instructing PriceSmart’s transfer agent to issue in the name of each of the Price Entities a certificate representing the number of shares of PriceSmart Common Stock to be issued to such Price Entity. 
  
 3. MUTUAL REPRESENTATIONS AND WARRANTIES. With respect to the Issued Shares,
each of the Price Entities hereby represents and warrants to PriceSmart, and with respect to the Purchased Shares, PriceSmart hereby represents and warrants to the Price Entities, as follows: 
  
 3.1 PURCHASE FOR OWN ACCOUNT. The Issued Shares or the Purchased Shares, as
the case may be, to be purchased by such Party hereunder will be acquired for investment for such Party’s own account, not as a nominee or agent, and not with a view to the resale or distribution thereof within the meaning of the Securities Act
of 1933, as amended (the “Securities Act”). Such Party also represents that such Party has not been formed for the specific purpose of acquiring the Issued Shares or the Purchased Shares or the Remaining Shares. 
  
 3.2 DISCLOSURE OF INFORMATION. Such Party has received or has had full access
to all the information it considers necessary or appropriate to make an informed investment decision with respect to the Issued Shares or the Purchased Shares, as the case may be, to be purchased by such Party under this Agreement. Such Party
further has had an opportunity to ask questions and receive answers from PriceSmart, PSMT Guatemala or the Price Entities, as the case may be, regarding the terms and conditions of the Issued Shares or the Purchased Shares and to obtain additional
information (to the extent PriceSmart, PSMT Guatemala or the Price Entities possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to such Party or to which such Party had
access. The foregoing, however, does not in any way limit or modify the representations and warranties made by such Party in this Agreement. 
  
 3.3 INVESTMENT EXPERIENCE. Such Party understands that the purchase of the Issued Shares or the Purchased Shares involves substantial risk. Such Party has
experience as an investor in securities of companies in the development stage and acknowledges that such Party is able to fend for itself, can bear the economic risk of such Party’s investment in the Issued Shares or the Purchased Shares and
has such knowledge and experience in financial or business matters that such Party is capable of evaluating the merits and risks of this investment in the Issued Shares or the Purchased Shares and protecting its own interests in connection with this
investment. 
  
 3.4 ACCREDITED INVESTOR STATUS. Such Party is an
“accredited investor” within the meaning of Regulation D promulgated under the Securities Act. 
  

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 3.5 RESTRICTED SECURITIES. Such Price Entity understands that the Issued Shares are characterized as
“restricted securities” under the Securities Act. Such Price Entity further understands that the Issued Shares will be issued in a transaction not involving a public offering and that under the Securities Act and applicable regulations
thereunder such securities may be resold without registration under the Securities Act only in certain limited circumstances. In this connection, such Price Entity represents that it is familiar with Rule 144 (“Rule 144”) of the Securities
and Exchange Commission (the “Commission”) as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act. Such Price Entity understands that, other than as set forth in Section 8 of this
Agreement, PriceSmart is under no obligation to register any of the Issued Shares. 
  
 3.6 LEGEND. Such Price Entity understands that the certificates evidencing the Issued Shares will bear the legend set forth below: 
  
 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES
LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM.” 
  
 The legend set forth above shall be removed by PriceSmart from any certificate evidencing the Issued Shares upon (i) a sale by the holder pursuant to Rule 144 or pursuant to an effective registration statement or (ii) delivery to PriceSmart
of an opinion of counsel, reasonably satisfactory to PriceSmart, that a registration statement under the Securities Act is at that time in effect with respect to the legended security or that such security can be freely transferred in a public sale
without such a registration statement being in effect and that such transfer will not jeopardize the exemption or exemptions from registration pursuant to which PriceSmart issued the Issued Shares. 
  
 4. REPRESENTATIONS AND WARRANTIES OF PRICESMART. PriceSmart hereby represents
and warrants to the Price Entities as follows: 
  
 4.1
ORGANIZATION, GOOD STANDING AND QUALIFICATION. PriceSmart is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as
now conducted and as proposed to be conducted. PriceSmart is duly qualified to transact business and is in good standing in each jurisdiction in which the failure so to qualify would have a material adverse effect on its business or properties.

  
 4.2 VALID ISSUANCE OF STOCK. The Issued Shares, when issued,
sold and delivered in accordance with the terms of this Agreement for the consideration provided herein, will be duly and validly issued, fully paid and nonassessable. 
  
 4.3 AUTHORIZATION; ENFORCEABILITY. All corporate action on the part of PriceSmart and its officers, directors and
stockholders, necessary for the authorization, 
  
  

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 execution and delivery of this Agreement and the performance of all obligations of PriceSmart hereunder and the
transactions contemplated hereby have been taken or will be taken prior to the Closing, and this Agreement has been duly executed and delivered by PriceSmart and constitutes a valid and legally binding obligation of PriceSmart, enforceable in
accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, reorganization or other laws of general application relating to or affecting the enforcement of creditors’ rights generally; (ii) the effect of rules
of law governing the availability of equitable remedies; and (iii) the unenforceability under certain circumstances under law or court decisions of provisions providing for the indemnification of or contribution to a party with respect to a
liability where such indemnification or contribution is contrary to public policy or prohibited by law. 
  
 4.4 NONCONTRAVENTION. The execution, delivery and performance by PriceSmart of this Agreement will not violate or be in conflict with, result in a breach
of or constitute (with or without notice or lapse of time or both) a default under (i) any provision of PriceSmart’s certificate of incorporation or bylaws as they shall be in effect; (ii) any provision of any judgment, decree or order to which
PriceSmart is a party or by which it is bound; (iii) any material contract, obligation or commitment to which PriceSmart is a party or by which it is bound; or (iv) any statute, rule or governmental regulation applicable to PriceSmart. 

 
 4.5 ACCURACY OF EXCHANGE ACT REPORTS. PriceSmart has timely filed all
reports required to be filed by PriceSmart under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All such reports filed by PriceSmart in the preceding twelve (12) months contain all statements required to be stated
therein in accordance with the Exchange Act and do not contain any 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. 
  
 5. REPRESENTATIONS AND WARRANTIES OF THE PRICE ENTITIES. Each of the Price
Entities hereby represents and warrants to PriceSmart as follows: 
  
 5.1 ORGANIZATION, GOOD STANDING AND QUALIFICATION. Such Price Entity is duly organized and validly existing and has all requisite power and authority to enter into this Agreement and carry out its obligations hereunder. 
  
 5.2 AUTHORIZATION; ENFORCEABILITY. All action on the part of such Price
Entity necessary for its authorization, execution and delivery of this Agreement and the performance of its obligations hereunder have been taken or will be taken prior to the Closing. This Agreement has been duly executed and delivered by such
Price Entity and this Agreement constitutes a valid and legally binding obligation of such Price Entity, enforceable against it in accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, reorganization or other
laws of general application relating to or affecting the enforcement of creditors’ rights generally; (ii) the effect of rules of law governing the availability of equitable remedies; and (iii) the unenforceability under certain circumstances
under law or court decisions of provisions providing for the indemnification of or contribution to a party with respect to a liability where such indemnification or contribution is contrary to public policy or prohibited by law. 

 

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 5.3 NONCONTRAVENTION. The execution, delivery and performance by such Price Entity of this Agreement will
not violate or be in conflict with, result in a breach of or constitute (with or without notice or lapse of time or both) a default under (i) any provision of such Price Entity’s certificate of incorporation, bylaws or other governing documents
as they shall be in effect; (ii) any provision of any judgment, decree or order to which such Price Entity is a party or by which it is bound; (iii) any material contract, obligation or commitment to which such Price Entity is a party or by which it
is bound; or (iv) any applicable statute, rule or governmental regulation. 
  
 5.4 TITLE TO PURCHASED SHARES. Each Price Entity owns exactly the number of shares of capital stock of PSMT Guatemala set forth next to its name on Schedule I hereto, all of which are free and clear of all liens,
encumbrances and any liabilities, except as may be created hereby. Other than the Purchased Shares, such Price Entity owns no shares of capital stock of, or any other interest in, PSMT Guatemala. In addition, such Price Entity has no options,
warrants or other rights to acquire shares of capital stock of, or any other interest in, PSMT Guatemala. Following the Closing, such Price Entity will have transferred all of its right, title and interest in PSMT Guatemala to PriceSmart.

  
 6. ADDITIONAL PROVISIONS REGARDING THE ISSUED SHARES.

  
 6.1 FURTHER LIMITATIONS ON DISPOSITION. Without in any way
limiting the representations set forth above, each of the Price Entities further agrees not to make any disposition of all or any portion of the Issued Shares unless and until: 
  

	(a)	There is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in accordance with such registration
statement; or 

  

	(b)	such Price Entity shall have notified PriceSmart of the proposed disposition and shall have furnished PriceSmart with a statement of the circumstances surrounding the proposed
disposition, and such Price Entity shall have furnished PriceSmart, at such Price Entity’s expense, with an opinion of counsel, reasonably satisfactory to PriceSmart, that such disposition will not require registration of such securities under
the Securities Act. 

  
 Notwithstanding the
provisions of paragraphs (a) and (b) above, no such registration statement or opinion of counsel shall be required: (i) for any transfer of any Issued Shares in compliance with Rule 144 or (ii) for any transfer of any Issued Shares by a Party that
is a partnership, limited liability company or trust to a partner of such partnership, member of such limited liability company or grantor or beneficiary of such trust; provided that in each of the foregoing cases the transferee agrees in writing to
be subject to the terms of this Section 6.1 to the same extent as if the transferee were an original Party hereunder. 
  
 7. CONDITIONS TO CLOSING. 
  
 7.1 CONDITIONS TO OBLIGATIONS OF PRICESMART AT CLOSING. PriceSmart’s obligation to purchase the Purchased Shares at the Closing is subject to the

  

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 fulfillment to PriceSmart’s satisfaction, on or prior to the Closing, of all of the following conditions, any of
which may be waived by PriceSmart: 
  

	(a)	REPRESENTATIONS AND WARRANTIES TRUE; PERFORMANCE OF OBLIGATIONS. The representations and warranties made by the Price Entities in Sections 3 and 5 hereof shall be true and correct
in all material respects at the Closing, with the same force and effect as if they had been made on and as of the date thereof, and each of the Price Entities shall have performed and complied in all material respect with all obligations and
conditions herein required to be performed or complied with by it on or prior to the Closing. 

  

	(b)	QUALIFICATIONS, LEGAL INVESTMENT. All authorizations, approvals, or permits, if any, of any governmental authority or regulatory body of the United States or of any state or country
that are required in connection with the lawful sale and issuance of the Purchased Shares and the Issued Shares shall have been duly obtained and shall be effective on and as of the Closing. At the time of the Closing, the sale and issuance of the
Purchased Shares and the Issued Shares shall be legally permitted by all laws and regulations to which PriceSmart, PSMT Guatemala and the Price Entities are subject. 

  

	(c)	PRICE ENTITY DELIVERIES. The Price Entities shall have made the Closing deliveries contemplated by Section 2.1 hereof. 

  
 7.2 CONDITIONS TO OBLIGATIONS OF THE PRICE ENTITIES AT CLOSING. The
obligations of the Price Entities to sell the Purchased Shares to be sold at the Closing is subject to the fulfillment, to the Price Entities’ satisfaction, on or prior to the Closing of the following conditions, any of which may be waived by
the Price Entities: 
  

	(a)	REPRESENTATIONS AND WARRANTIES TRUE; PERFORMANCE OF OBLIGATIONS. The representations and warranties made by PriceSmart in Sections 3 and 4 hereof shall be true and correct in all
material respects at the date of the Closing, with the same force and effect as if they had been made on and as of the date thereof. PriceSmart shall have performed and complied with all agreements and conditions herein required to be performed or
complied with by it on or before the Closing. 

  

	(b)	QUALIFICATIONS, LEGAL INVESTMENT. All authorizations, approvals, or permits, if any, of any governmental authority or regulatory body of the United States or of any state or country
that are required in connection with the lawful sale and issuance of the Purchased Shares and the Issued Shares shall have been duly obtained and shall be effective on and as of the Closing. At the time of the Closing, the sale and issuance of the
Purchased Shares and the Issued Shares shall be legally permitted by all laws and regulations to which PriceSmart, PSMT Guatemala and the Price Entities are subject. 

  

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	(c)	PRICESMART DELIVERIES. PriceSmart shall have made the Closing deliveries contemplated by Section 2.2 hereof. 

  
 8. REGISTRATION STATEMENT FOR RESALE OF THE ISSUED SHARES. 
  
 8.1 SHELF REGISTRATION STATEMENT. Within thirty (30) days after demand by
Price Entities holding a majority of the Issued Shares, PriceSmart will prepare and file with the Commission a registration statement under the Securities Act registering all of the Issued Shares sold to the Price Entities pursuant to this Agreement
for resale to the public by such Price Entities pursuant to such registration statement (the “Shelf Registration Statement”) and the prospectus included therein, free and clear of any restrictions under the Securities Act except for
prospectus delivery requirements. For purposes of this Section 8, the term “Issued Shares” shall be deemed to include shares of PriceSmart Common Stock issued as a dividend or other distribution with respect to or in replacement of the
Issued Shares. PriceSmart shall use all reasonable efforts to cause the Shelf Registration Statement to become effective as promptly as practicable thereafter and, subject to Sections 8.2(b) and 8.3, to remain effective until the earlier of (i) two
years from the Closing and (ii) such time as the Issued Shares may be freely sold to the public without registration and without regard to volume or manner of sale (the “Registration Period”). 
  
 8.2 PRICESMART OBLIGATIONS. In connection with the registration of the Issued
Shares pursuant to this Section 8, PriceSmart shall do the following: 
  

	(a)	Prepare and deliver to the Price Entities as many copies of the Prospectus (as hereafter defined) as the Price Entities may reasonably request; 

  

	(b)	Use its best efforts to comply with all requirements imposed upon it by the Securities Act, by the Exchange Act and by the undertakings in any registration statement filed pursuant
to this Section 8 (any such registration statement, including the Shelf Registration Statement, the “Registration Statement”) so far as is necessary to permit the continuance of resales of the Issued Shares by the Price Entities to the
public, free and clear of any restrictions under the Securities Act except for prospectus delivery requirements. If, at any time during the Registration Period, an event shall occur which makes it necessary to amend or supplement the Registration
Statement or the Prospectus to comply with law or with the rules and regulations of the Commission, PriceSmart shall promptly notify the Price Entities of the proposed amendment or supplement and promptly prepare and furnish to the Price Entities
such number of copies of an amended or supplemented Registration Statement and/or Prospectus that complies with law and with such rules and regulations as the Price Entities may reasonably request. Each of the Price Entities shall suspend its sales
of the Issued Shares pending the preparation and delivery of such amendment or supplement and until such time as each such amendment or amendments to the Registration Statement have been declared effective by the Commission. PriceSmart authorizes
the Price Entities, and any brokers or dealers effecting sales of the Issued Shares for the account of 

  

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 the Price Entities, to use the Prospectus, as from time to time amended or supplemented, in connection
with the sale of the Issued Shares in accordance with applicable provisions of the Securities Act and state securities laws. For purposes of this Agreement, the term “Prospectus” means the final prospectus relating to the Issued Shares
most recently included in the Registration Statement or filed by PriceSmart pursuant to Rule 424 of the Securities Act and any amendments or supplements thereto filed by PriceSmart pursuant to Rule 424 of the Securities Act and shall include all
documents or information incorporated in any such prospectus by reference; 
  

	(c)	Promptly advise the Price Entities (i) when any post-effective amendment of the Registration Statement is filed with the Commission and when any post-effective amendment becomes
effective; (ii) of any request made by the Commission for any amendment of or supplement to the Registration Statement or the Prospectus or for additional information relating thereto; (iii) of any suspension or threatened suspension of the use of
any Prospectus in any state; and (iv) of any proceedings commenced or threatened to be commenced by the Commission or any state securities commission that would result in the issuance of any stop order or other order or suspension of use. PriceSmart
agrees to use its reasonable efforts to prevent or promptly remove any stop order or other order preventing or suspending the use of the Prospectus during the Registration Period and to comply with any such request by the Commission to amend or
supplement the Prospectus; 

  

	(d)	Take such action as shall be necessary to qualify and maintain the qualification of the Issued Shares covered by such registration under such state securities or “blue
sky” laws for offers and sales to the public during the Registration Period as the Price Entities shall reasonably request; provided, however, that PriceSmart shall not be obligated to qualify as a foreign corporation to do business under the
laws of or become subject to taxation in, any jurisdiction in which it shall not be then qualified, or to file any general consent to service of process; 

  

	(e)	Permit counsel designated by the Price Entities to review the Registration Statement and all amendments and supplements thereto a reasonable time prior to their filing with the
Commission; 

  

	(f)	Provide a transfer agent and registrar, which may be a single entity, for the Issued Shares not later than the effective date of the Registration Statement;

  

	(g)	Prepare and file with the Commission, at the request of the Price Entities, such amendments (including post-effective amendments) and supplements to a Registration Statement and the
prospectus used in connection therewith as may be reasonably necessary or appropriate to change the plan of distribution set forth in the Registration Statement; and 

  

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	(h)	Cause the Issued Shares to be registered pursuant to Section 12(b) or 12(g) of the Exchange Act and continually quoted or listed, subject to notice of issuance, on the Nasdaq
National Market or a national securities exchange, if such exchange is the principal market on which the Issued Shares are traded, and not subject to any restriction or suspension from trading on the Nasdaq National Market or such national
securities exchange; provided, however, that PriceSmart may deregister PriceSmart Common Stock registered pursuant to Section 12(b) or 12(g) of the Exchange Act if such deregistration is in connection with a merger, dissolution or other transaction
in which the stockholders of PriceSmart receive prior to such deregistration either cash or securities that are listed on the Nasdaq National Market or a national securities exchange or some combination of cash and such securities; provided,
further, that PriceSmart may delist the Issued Shares from trading on the Nasdaq National Market or national securities exchange if PriceSmart is concurrently listing such stock on the New York Stock Exchange or the American Stock Exchange.

  

	(i)	With a view to making available to the Price Entities the benefits of certain rules and regulations of the Commission that at any time permit the sale of the Issued Shares to the
public without registration, PriceSmart agrees to: 

  

	 	(i)	make and keep public information available, as those terms are understood and defined in Rule 144; 

  

	 	(ii)	file with the Commission in a timely manner all reports and other documents required of PriceSmart under the Exchange Act; and 

  

	 	(iii)	so long as the Price Entities own any unregistered Issued Shares, furnish to any of the Price Entities upon any reasonable request a written statement by PriceSmart as to its
compliance with the public information requirements of Rule 144, and of the Exchange Act, a copy of the most recent annual or quarterly report of PriceSmart, and the other Commission reports and documents of PriceSmart as any of the Price Entities
may reasonably request in availing itself of any rule or regulation of the Commission allowing it to sell any Issued Shares without registration (excluding any reports or documents of PriceSmart that PriceSmart, in its sole discretion, deems
confidential). 

  
 8.3 RESTRICTIONS ON
REGISTRATIONS. If at any time or from time to time after the effective date of the Registration Statement, PriceSmart notifies the Price Entities in writing of the existence of a Potential Material Event (as defined below), none of the Price
Entities shall offer or sell any Issued Shares or engage in any other transaction involving or relating to Issued Shares from the time of the giving of notice with respect to a Potential Material 
  

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Event until the Price Entities receive written notice from PriceSmart that such Potential Material Event either has been disclosed to the public or no longer
constitutes a Potential Material Event. If a Potential Material Event shall occur prior to the date the Registration Statement is filed, then notwithstanding Section 8.1, PriceSmart’s obligation to file the Registration Statement shall be
delayed without penalty until such Potential Material Event either has been disclosed to the public or no longer constitutes a Potential Material Event. “Potential Material Event” means any of the following: (i) the possession by
PriceSmart of material information not ripe for disclosure in the Registration Statement, as determined in good faith by the Chief Executive Officer or the Board of Directors of PriceSmart that disclosure of such information in the Registration
Statement would be detrimental to the business and affairs of PriceSmart; or (ii) any material engagement or activity by PriceSmart which would, in the good faith determination of the Chief Executive Officer or the Board of Directors of PriceSmart,
be adversely affected by disclosure in the Registration Statement at such time, which determination shall be accompanied by a good faith determination by the Chief Executive Officer or the Board of Directors of PriceSmart that the Registration
Statement would be materially misleading absent the inclusion of such information. In no event shall the suspension of the Registration Statement (or the permissible delay in filing the Registration Statement) exceed ninety (90) days as a result of
a Potential Material Event. 
  
 8.4 CERTAIN OBLIGATIONS OF
INVESTOR. In connection with the registration of the Issued Shares pursuant to this Section 8: 
  

	(a)	Each of the Price Entities shall cooperate as reasonably requested by PriceSmart with PriceSmart in connection with the preparation of the Registration Statement, and for so long as
PriceSmart is obligated to file and keep effective the Registration Statement, shall provide to PriceSmart, in writing, for use in the Registration Statement, all such information regarding the Price Entities and their plans of distribution of the
Issued Shares as may be reasonably necessary to enable PriceSmart to prepare the Registration Statement and the Prospectus, to maintain the currency and effectiveness thereof and otherwise to comply with all applicable requirements of law in
connection therewith. 

  

	(b)	Each of the Price Entities agrees to promptly furnish additional information required to be disclosed in order to make the information previously furnished to PriceSmart by the
Price Entities not materially misleading. Each of the Price Entities agrees to furnish all such information and to cooperate with and provide assistance to PriceSmart, as PriceSmart may reasonably request, in connection with any registration and
sale of the Issued Shares. 

  

	(c)	Each of the Price Entities hereby covenants with PriceSmart not to make any sale of the Issued Shares without effectively causing the prospectus delivery requirements under the
Securities Act to be satisfied unless the sale is made pursuant to an exemption from registration. 

  

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	(d)	Each of the Price Entities acknowledges and agrees that the Issued Shares sold pursuant to the Registration Statement are not transferable on the books of PriceSmart unless the
stock certificate submitted to the transfer agent evidencing the Issued Shares is accompanied by a certificate reasonably satisfactory to PriceSmart to the effect that (i) the Issued Shares have been sold in accordance with this Agreement and the
Registration Statement and (ii) the requirement of delivering a current prospectus has been satisfied. 

  

	(e)	Each of the Price Entities is hereby advised that the anti-manipulation provisions of Regulation M under the Exchange Act may apply to sales of the Issued Shares offered pursuant to
the Registration Statement and agrees not to take any action with respect to any distribution deemed to be made pursuant to the Registration Statement that constitutes a violation of Regulation M under the Exchange Act or any other applicable rule,
regulation or law. 

  

	(f)	At the end of the Registration Period, each of the Price Entities shall discontinue sales of Issued Shares pursuant to the Shelf Registration Statement upon receipt of notice from
PriceSmart of its intention to remove from registration the Issued Shares covered thereby which remain unsold, and each of the Price Entities shall promptly notify PriceSmart of the number of Issued Shares registered that remain unsold immediately
upon receipt of the notice from PriceSmart. 

  
 8.5
INDEMNIFICATION OF THE PRICE ENTITIES. PriceSmart shall indemnify, defend and hold harmless each of the Price Entities, together with their manager, members, trustees and any controlling persons against and in respect of any losses, claims, damages
or liabilities, joint or several (including legal or other fees and expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, damage or liability) to which the Price Entities or any such persons
may become subject under the Securities Act or otherwise insofar as such losses, claims, damages or liabilities (or actions with respect thereto) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact
contained in the Registration Statement or Prospectus, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading,
except to the extent that any such untrue statement or omission is based upon written information supplied by the Price Entities or by any of their representatives for use in such Registration Statement; provided, however, this indemnity agreement
shall not inure to the benefit of any of the Price Entities on account of any loss, claim, damage, liability or action arising from the sale of the Issued Shares to any person if such Price Entity fails to send or give a copy of the Prospectus (as
amended or supplemented) to such person. 
  
 8.6 INDEMNIFICATION
OF PRICESMART. Each of the Price Entities shall severally and not jointly indemnify, defend and hold harmless PriceSmart, its officers and its directors and any controlling persons of PriceSmart against and in respect of any losses, claims, damages
or liabilities, joint or several (including legal or other fees and expenses 
  

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 reasonably incurred by any of them in connection with investigating or defending any such loss, claim, damage or
liability) to which PriceSmart or any such persons may become subject under the Securities Act or otherwise insofar as such losses, claims, damages or liabilities (or actions with respect thereto) arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact contained in the Registration Statement, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, but only in each case to the extent that any such untrue statement or omission is based upon written information supplied by such Price Entity or its representatives for use in such Registration Statement; PROVIDED
that in no event shall any indemnification obligation on the part of any Price Entity under this Section 8.6 exceed the net proceeds from the offering received by such Price Entity. 
  
 8.7 CONTRIBUTION. If for any reason the indemnification provided for in the preceding Sections 8.5 or 8.6 is unavailable to
an indemnified party as contemplated by such clauses, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to
reflect not only the relative benefits received by the indemnified party and the indemnifying party, but also the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations; PROVIDED
that in no event shall any contribution obligation on the part of any Price Entity under this Section 8.7 exceed the net proceeds from the offering received by such Price Entity. 
  
 8.8 PROCEDURE FOR INDEMNIFICATION. The procedure for indemnification under this Section 8 shall be as follows: 

 

	(a)	NOTICE. The indemnified party shall promptly give notice to the indemnifying party of any pending or threatened claim giving rise to indemnification under Sections 8.5 or 8.6 (a
“Claim”), specifying the factual basis for the Claim and the approximate amount thereof. 

  

	(b)	CONTROL OF CLAIM AND SETTLEMENT. With respect to any Claim as to which a person is entitled to indemnification hereunder, the indemnifying party shall have the right at its own
expense to participate in or assume control of the defense of the Claim, and the indemnified party shall cooperate fully with the indemnifying party, subject to reimbursement for actual out-of-pocket expenses incurred by the indemnified party as the
result of a request by the indemnifying party; PROVIDED, HOWEVER, that such indemnifying party shall not be entitled to assume such defense and an indemnified party shall have the right to retain its own counsel with the reasonable fees and expenses
to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the indemnifying party, the representation by such counsel of the indemnified party and the indemnifying party would be inappropriate due to actual or
potential conflicts of interest between such indemnified party and any other party represented by such counsel in such proceeding or the actual or potential defendants in, or targets of, any such action include both the indemnified party and the
indemnifying party and any such indemnified party reasonably determines that there may be legal defenses available to such indemnified party which are in conflict with those available to such indemnifying party. If the indemnifying party elects to
assume control 

  

 12 

 
of the defense of any Claim, the indemnified party shall have the right to participate in the defense of the Claim at its own expense. If the indemnifying
party does not elect to assume control or otherwise participate in the defense of any Claim, it shall be bound by the results obtained by the indemnified party with respect to the Claim. No indemnifying party shall be liable for any settlement
effected without its written consent, not to be unreasonably withheld or delayed. 
  

	(c)	SURVIVAL. Notwithstanding any other provision of this Agreement, the indemnification and contribution obligations of the parties hereunder shall survive indefinitely.

  
 8.9 EXPENSES. PriceSmart shall pay all expenses
incident to the registration of the Issued Shares under this Section 8, including without limitation, all registration and filing fees, all fees and expenses of complying with securities or blue sky laws, all word processing, duplicating and
printing expenses, and the fees and disbursements of counsel for PriceSmart and its independent public accountants. With respect to sales of the Issued Shares, the Price Entities shall pay all underwriting discounts and commissions and fees of
underwriters, selling brokers, dealer managers or similar securities industry professionals relating to any resale of the Issued Shares by the Price Entities, and transfer taxes, if any. 
  
 8.11 COMPLIANCE. The Price Entities will observe and comply with the Securities Act, the Exchange Act and the general rules
and regulations thereunder, as now in effect and as from time to time amended and including those hereafter enacted or promulgated, in connection with any offer, sale, pledge, transfer or other disposition of the Issued Shares or any part thereof.

  
 9. MISCELLANEOUS. 
  
 9.1 SURVIVAL OF WARRANTIES. The representations, warranties and covenants of
the Parties contained in or made pursuant to this Agreement shall survive the execution and delivery of this Agreement and the Closing for a period of one (1) year with respect to the transactions completed at the Closing and shall in no way be
affected by any investigation of the subject matter thereof made by or on behalf of PriceSmart or the Price Entities, as the case may be. 
  
 9.2 SUCCESSORS AND ASSIGNS. None of the Price Entities nor PriceSmart shall assign or transfer any of its rights or obligations under this Agreement
without the other Party’s (taking the Price Entities together for purposes of this Section 9.2) prior written consent which shall not be unreasonably withheld, except that PriceSmart may assign its rights hereunder to any subsidiary without the
consent of any other Party and except that any of the Price Entities may assign its rights under Section 8 hereof to any person or entity to whom such Price Entity transfers at least twenty-five percent (25%) of the Issued Shares. Subject to the
restrictions on assignment set forth in this Section 9.2, this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. 
  
 9.3 GOVERNING LAW. This Agreement shall be governed by and construed under the internal laws of the State of California,
U.S.A. as applied to agreements among California residents entered into and to be performed entirely within California, without reference to principles of conflict of laws or choice of law. 
  

 13 

 9.4 COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument. 
  
 9.5 HEADINGS. The headings and captions used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. All references in this Agreement to sections,
paragraphs, exhibits and schedules shall, unless otherwise provided, refer to sections and paragraphs hereof and exhibits and schedules attached hereto, all of which exhibits and schedules are incorporated herein by this reference. 
  
 9.6 NOTICES. Unless otherwise provided, any notice required or permitted
under this Agreement shall be given in writing and shall be mailed, telecopied, sent by overnight courier or delivered to the Party to receive such notice at the address specified on the signature page hereto or at such other address as any Party
may designate by giving ten (10) days advance written notice to all other Parties. All such notices and communications shall, when mailed, telecopied or sent by overnight courier, be effective when deposited in the mails, delivered to the courier,
or transmitted by telecopier with confirmation of transmission, respectively. 
  
 9.7 NO FINDER’S FEES. PriceSmart and the Price Entities represent that they neither are, nor will be, obligated for any finder’s or broker’s fee or commission in connection with this transaction. Each
of the Price Entities agrees to indemnify and to hold harmless PriceSmart from any liability for any commission or compensation in the nature of a finders’ or broker’s fee (and any asserted liability) for which such Price Entity is
responsible. PriceSmart agrees to indemnify and hold harmless the Price Entities from any liability for any commission or compensation in the nature of a finder’s or broker’s fee (and any asserted liability) for which PriceSmart or any of
its officers, employees or representatives is responsible. 
  
 9.8
AMENDMENTS AND WAIVERS. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent
of PriceSmart, on the one hand, and the Price Entities, on the other hand. Any amendment or waiver effected in accordance with this Section shall be binding upon each holder of any Issued Shares at the time outstanding, each future holder of such
securities, and PriceSmart. 
  
 9.9 EXPENSES AND TAXES. Each of
the Parties shall pay its own fees and expenses incurred in entering into this Agreement. Transfer taxes are to be paid by the entity responsible under the law. If any arbitration or other action at law or equity is necessary to enforce or interpret
the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary disbursements in addition to any other relief to which such party may be entitled. 
  
 9.10 SEVERABILITY. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, such provision(s) shall be excluded from this Agreement and the balance of the Agreement shall be interpreted as if such provision(s) were so excluded and shall be enforceable in accordance with its terms.

  

 14 

 9.11 ENTIRE AGREEMENT. This Agreement, together with all exhibits and schedules hereto, constitutes the
entire agreement and understanding of the Parties with respect to the subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements, understandings duties or obligations between the Parties with respect to the
subject matter hereof. 
  
 9.12 FURTHER ASSURANCES. From and after
the date of this Agreement, upon the request of any of the Parties, the other Parties shall execute and deliver such instruments, documents or other writings as may be reasonably necessary or desirable to confirm and carry out and to effectuate
fully the intent and purposes of this Agreement. 
  
 9.13
CONFIDENTIALITY. The Parties agree not to disclose the price and related terms of the purchase and sale affected hereby, unless disclosure of the same is required by any applicable law. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 15 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.

  

			
	 PRICESMART, INC.

	
	 /s/    JOSÉ LUIS
LAPARTE

	 Name:
	 	 José Luis Laparte
  

	 Title:
	 	 President
  

  
 Address for Notice: 
 9740 Scranton Road 
 San Diego, CA 92121 
 Fax: (858) 581-4707 
 Attn: General Counsel 
  

 16 

 COUNTERPART SIGNATURE PAGE TO STOCK PURCHASE AGREEMENT 
  

			
	THE PRICE GROUP, LLC:
		
	 By:
	 	 /s/ Murray Galinson

	 Name:
	 	 Murray Galinson

	 Title:
	 	 Partner

	
	Address:     7979 Ivanhoe Avenue
	 	 	        Suite 520
	 	 	        La Jolla, California 92037
	
	SOL and HELEN PRICE TRUST:
		
	 By:
	 	 /s/ Sol Price

	 Name:
	 	 Sol Price

	 Title:
	 	 Trustee

	  
 Address:     7979 Ivanhoe
Avenue

	 	 	        Suite 520
	 	 	        La Jolla, California 92037
	
	ROBERT and ALLISON PRICE TRUST:
		
	 By:
	 	 /s/ Robert E. Price

	 Name:
	 	 Robert E. Price

	 Title:
	 	 Trustee

	
	Address:     7979 Ivanhoe Avenue
	 	 	        Suite 520
	 	 	        La Jolla, California 92037

  
  
  
  
  

 17 

 SCHEDULE I 
  

					
	 Name of Price Entity

	  	Number of PSMT
Guatemala Shares

	  	Number of
PriceSmart Shares

	 The Price Group, LLC
	  	2,217,500	  	412,500
	 Sol and Helen Price Trust
	  	1,343,805	  	249,975
	 Robert and Allison Price Trust
	  	873,694	  	162,525
	 Total
	  	4,434,999	  	825,000

  

 18Amended and Restated Incentive Plan

 Exhibit 4.1 
  

C-COR INCORPORATED 
 AMENDED AND
RESTATED 
 INCENTIVE PLAN 
  
 (As approved by the Board of Directors on April 29, 1998- and as amended and restated by the Board of Directors on August 15, 2000; April 18, 2001; January 4, 2002;
August 13, 2002; April 15, 2003; April 13, 2004; and August 18, 2004.) 
  
 ARTICLE 1. 
 Purpose 
  
 The purpose of the C-COR Incorporated Incentive Plan (formerly the C-COR.net Corp. Incentive Plan) (the “Plan”) is to enable C-COR Incorporated (formerly
C-COR.net Corp.) (the “Company”) to offer certain officers, key employees and directors of the Company equity interests in the Company and other incentive awards, including performance-based stock incentives, thereby attracting, retaining
and rewarding such persons, and strengthening the mutuality of interests between such persons and the Company’s shareholders. 
  
 ARTICLE 2. 
 Definitions

  
 For purposes of this Plan, the following terms shall have the following
meanings: 
  
 a. “Award” shall mean an
award under this Plan of Stock Options, Restricted Stock, Performance Shares or Performance Units. 
  
 b. “Board” shall mean the Board of Directors of the Company. 
  
 c. “Change of Control” shall mean the occurrence of any one of the following: 
  
 i. Any person or group of persons acting in concert shall have acquired
ownership of or the right to vote or to direct the voting of shares of capital stock of the Company representing 30% or more of the total voting power of the Company, or 
  
 ii. The Company shall have merged into or consolidated with another corporation, or merged another corporation into the
Company, on a basis whereby less than 50% of the total voting power of the surviving corporation is represented by shares held by former shareholders of the Company prior to such merger or consolidation, or 
  
 iii. The Company shall have sold more than 50% of its assets to another
corporation or other entity or person, or 
  
 iv. As the result
of, or in connection with, any cash tender or exchange offer, merger or other business combination, sale of assets or contested election, the persons who were Directors of the Company before such transaction cease to constitute a majority of
Directors of the Company. 
  
 d. “Code”
shall mean the Internal Revenue Code of 1986, as amended. 
  

 1 

 e. “Common Stock” shall mean the Common Stock, par value $.05 per share, of the
Company. 
  
 f. “Director” shall mean a
member of the Board. 
  
 g. “Disability”
shall mean Total Disability as defined in the Company’s long-term disability plan. 
  
 h. “Fair Market Value” for purposes of this Plan, unless otherwise required by any applicable provision of the Code or any regulations issued thereunder, shall mean, as of any date prior to
April 17, 2001, the closing sale price of a share of Common Stock for the preceding business day and as of any date thereafter, the closing sale price of a share of Common Stock for that date as reported on the principal national securities exchange
on which the Common Stock is listed or admitted to trading, or, if not listed or traded on any such exchange, the Nasdaq Stock Market (“Nasdaq”), or, if such sale price is not available, the average of the bid and asked prices per share
reported on Nasdaq for such day, or, if such quotations are not available, the fair market value as determined by the Board, which determination shall be conclusive. 
  
 i. “Incentive Stock Option” shall mean any Stock Option awarded under this Plan intended to be and
designated as an “Incentive Stock Option” within the meaning of Section 422 of the Code. 
  
 j. “Misconduct” shall mean, except to the extent specified otherwise by the Board, a finding by the Board that the Participant (i)
has breached his or her employment or service contract with the Company, (ii) has engaged in disloyalty to the Company, including, without limitation, fraud, embezzlement, theft, commission of a felony or proven dishonesty in the course of his or
her employment or service, (iii) has disclosed trade secrets or confidential information of the Company to persons not entitled to receive such information or (iv) has engaged in such other behavior detrimental to the interests of the Company as the
Board determines. 
  
 k. “1934 Act” shall
mean the Securities Exchange Act of 1934, as amended. 
  
 l.
“Non-Qualified Stock Option” shall mean any Stock Option awarded under this Plan that is not an Incentive Stock Option. 
  
 m. “Participant” shall mean an individual to whom an Award has been made pursuant to this Plan. 
  
 n. “Performance Cycle” shall have the meaning set
forth in Section 9.a. 
  
 o. “Performance
Period” shall have the meaning set forth in Section 8.a. 
  
 p. “Performance Share” shall mean an Award made pursuant to Article VIII of this Plan of the right to receive Common Stock at the end of a specified Performance Period if specified performance goals are met.

  

 2 

 q. “Performance Unit” shall mean an Award made pursuant to Article IX of this
Plan of the right to receive a fixed dollar amount, payable in cash or Common Stock or a combination of both, at the end of a specified Performance Cycle if specified performance goals are met. 
  
 r. “Primary Committee” shall mean a committee of two
(2) or more non-employee Board members, as defined under Rule 16b-3 under the 1934 Act, who are also “outside directors”, as defined under section 162(m) of the Code and “independent directors” as defined under the rules of
Nasdaq Stock Market or any other national securities exchange on which the securities of the Company are listed and who are appointed by the Board to oversee the administration of the Plan. 
  
 s. “Restricted Stock” shall mean an Award of shares
of Common Stock under this Plan that is subject to forfeiture under Article VII. 
  
 t. “Restriction Period” shall have the meaning set forth in Section 7.b.iii. 
  
 u. “Retirement” shall mean: 
  
 1. for options granted prior to April 13, 2004, retirement from employment with the Company or one of its subsidiaries, provided that the employee at such
time has been employed by the Company or a subsidiary of the Company for at least five years and is at least 55 years old. 
  
 2. for options granted on or after April 13, 2004, retirement from employment with the Company or one of its subsidiaries, provided that the employee at
such time has been employed by the Company or a subsidiary of the Company for at least five (5) years and has a combination of age and service of sixty years or greater. 
  
 v. “Secondary Committee” shall mean a committee of two (2) or more Board members appointed by the
Board to administer the equity incentive programs hereunder, with respect to eligible persons other than Section 16 Insiders and Covered Employees. 
  
 w. “Section 16 Insider and Covered Employee” shall mean an officer or director of the Company or a subsidiary subject to the
short-swing profit liabilities of Section 16 of the 1934 Act and to the extent not covered by such statutory provision, an officer who is subject to the cap on deductible remuneration under section 162(m)(3) of the Code, or an executive officer for
which independent director approval of compensation is required under the rules of the Nasdaq Stock Market or any other national securities exchange on which the securities of the Company are listed. 
  
 x. “Stock Option” or “Option”
shall mean any option to purchase shares of Common Stock granted pursuant to Article 6. 
  
 y. “Termination of Employment” shall mean (i) termination of an employee’s employment with the Company and all of its subsidiaries for reasons other than a military or personal leave of
absence granted by the Company or (ii) the date on which a Director ceases to be a member of the Board for any reason. 
  

 3 

 ARTICLE 3. 
 Administration 
  
 a.
Administration. 
  
 i. The Plan shall be administered and
interpreted by the Board; provided however, that the authority to administer the Stock Option (Article 6), Restricted Stock (Article 7), Performance Shares (Article 8) and (to the extent required by Nasdaq Stock Exchange rules) Performance
Unit (Article 9) incentive programs with respect to Section 16 Insiders and Covered Employees, including without limitation the authority to select the Section 16 Insiders and Covered Employees eligible to participate in these incentive programs and
to determine the terms and conditions of awards to such individuals, shall be delegated to and vested in the Primary Committee. The Board may, in its discretion, delegate its responsibilities hereunder to the Committee with respect to Participants
who are not Section 16 Insiders and Covered Employees. 
  
 ii.
References herein to the “Board” shall, as the context requires, be deemed to refer to the Primary Committee or Secondary Committee, as applicable, to the extent such committee is delegated all or part of the Board’s authority under
this Plan. 
  
 iii. Each of the Board and, to the extent its
authority is so delegated, the Primary Committee or Secondary Committee, shall have full power and authority within the scope of its administrative jurisdiction to establish such rules as it may deem appropriate for proper administration of the
Plan, to make all factual determinations, to construe and interpret the provisions of the Plan and the awards thereunder and to resolve any and all ambiguities thereunder. 
  
 iv. Members of the Primary Committee or any Secondary Committee shall serve for such period of time as the Board may
determine and may be removed by the Board at any time. The Board may also at any time terminate the functions of any Secondary Committee and reassume all powers and authority previously delegated to such committee. 
  
 v. Service on the Primary Committee or the Secondary Committee shall
constitute service as a Board member, and members of each such committee (whether or not an actual Board member) shall accordingly be entitled to full indemnification and reimbursement as Board members for their service on such committee. No member
of the Primary Committee or the Secondary Committee shall be liable for any act or omission made in good faith with respect to the Plan or any Options or stock issuances under the Plan. 
  
 b. Awards. The Board shall have full authority to grant, pursuant to the terms of this Plan, to persons
eligible under Article 5: (i) Stock Options, (ii) Restricted Stock, (iii) Performance Shares and (iv) Performance Units. In particular, the Board shall have the authority: 
  
 i. to select the persons eligible under Article 5 to whom Stock Options, Restricted Stock, Performance Shares and
Performance Units may from time to time be granted hereunder; 
  

 4 

 ii. to determine whether and to what extent Incentive Stock Options, Non-Qualified Stock Options,
Restricted Stock, Performance Shares and Performance Units, or any combination thereof, are to be granted hereunder to one or more persons eligible under Article 5; 
  
 iii. to determine whether Stock Options are to be Incentive Stock Options or Non-Qualified Stock Options; 
  
 iv. to determine the number of shares of Common Stock to be covered by each
Award granted hereunder; and 
  
 v. to determine the terms and
conditions, not inconsistent with the terms of this Plan, of any Award granted hereunder (including, but not limited to, the term, the option or purchase price, any restriction or limitation, any vesting schedule or acceleration thereof, or any
forfeiture restrictions or waiver thereof, regarding any Award and the shares of Common Stock relating thereto, based on such factors as the Board shall determine, in its sole discretion). 
  
 c. Guidelines. Subject to Article 10 hereof, the Board shall
have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing this Plan as it shall, from time to time, deem advisable; to interpret the terms and provisions of this Plan and any Award granted under this
Plan (and any agreements relating thereto); and to otherwise supervise the administration of this Plan. The Board may correct any defect, supply any omission or reconcile any inconsistency in this Plan or in any Award granted in the manner and to
the extent it shall deem necessary to carry this Plan into effect. Notwithstanding the foregoing, no action of the Board under this Article 3.c. shall impair the rights of any Participant without the Participant’s consent. 
  
 d. Decisions Final. Any decision, interpretation or other
action made or taken in good faith by the Board arising out of or in connection with the Plan shall be final, binding and conclusive on the Company, all Participants and their respective heirs, executors, administrators, successors and assigns.

  
 ARTICLE 4. 
 Share Limitation 
  
 a. Shares. The maximum aggregate number of shares of Common Stock that may be issued under this Plan shall be 8,725,000 shares (subject to
any increase or decrease pursuant to Section 4.b.), plus an additional number of shares remaining available for grant under the 1988 Stock Option Plan and the 1989 Non-Employee Directors’ Non-Qualified Stock Option Plan as of April 29, 1998.
The total number of shares available for grant as Restricted Stock, Performance Shares or as payment for the satisfaction of Performance Units shall be limited to an aggregate total of 100,000 shares. The shares of Common Stock issued under this
Plan may be either authorized and unissued Common Stock or issued Common Stock reacquired by the Company. If any Option granted under this Plan shall expire, terminate or be cancelled for any reason without having been exercised in full, the number
of unpurchased shares shall again be available for the purposes of the Plan. Further, if any shares of Restricted Stock granted hereunder are forfeited or any Award of Performance Shares terminates without the delivery of such shares, the shares
subject to such Award, to the extent of such forfeiture or termination, shall again be available under this Plan. 
  

 5 

 b. Changes. In the event of any merger, reorganization, consolidation, recapitalization,
dividend (other than a regular cash dividend), stock split, or other change in corporate structure affecting the Common Stock, such substitution or adjustment shall be made in the maximum aggregate number of shares that may be issued under this
Plan, in the maximum aggregate number of shares with respect to which Options or Performance Shares may be granted under this Plan to any individual during any calendar year, in the number and option price of shares subject to outstanding Options
granted under this Plan, and in the number of shares subject to other outstanding Awards granted under this Plan, as may be determined to be appropriate by the Board, in its sole discretion, provided that the number of shares subject to any Award
shall always be a whole number. 
  
 ARTICLE 5. 

Eligibility 
  
 a. Employees. Officers and other employees of the Company and its subsidiaries are eligible to be granted Awards under this Plan.

  
 b. Directors. Directors of the Company who are
not employees of the Company or any of its subsidiaries are eligible to be granted Awards other than Incentive Stock Options under this Plan. 
  
 ARTICLE 6. 
 Stock Options

  
 a. Options. Each Stock Option granted under
this Plan shall either be an Incentive Stock Option or a Non-Qualified Stock Option. 
  
 b. Grants. The Board shall have the authority to grant to any person, to the extent eligible under Article 5, one or more Incentive Stock Options, Non-Qualified Stock Options, or both types of Stock
Options; provided, however, (i) that no individual may be granted Stock Options for more than 750,000 shares of Common Stock (subject to any increase or decrease pursuant to Article 4.b.) during any calendar year, and (ii) that no Incentive Stock
Options shall be granted to any individual owning shares of Company stock representing 10% or more of the total combined voting power of all classes of stock of the Company and its subsidiaries (a “10 Percent Owner”), unless, at the time
the Incentive Stock Option is granted, the option price is at least 110% of the Fair Market Value of the Common Stock subject to the Option on the date of grant and the Option states that it is not exercisable after the expiration of five (5) years
from the date of its grant. To the extent that any Stock Option does not qualify as an Incentive Stock Option (whether because of its provisions or the time or manner of its exercise or otherwise), such Stock Option or the portion thereof which does
not qualify as an Incentive Stock Option shall constitute a separate Non-Qualified Stock Option. 
  
 c. Incentive Stock Options. Anything in the Plan to the contrary notwithstanding, no term of this Plan relating to Incentive Stock Options
shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be exercised, so as to disqualify the Plan under Section 422 of the Code, or, without the consent of the Participants affected, to disqualify any
Incentive Stock Option under such Section 422. 
  

 6 

 d. Terms of Options. Options granted under this Plan shall be subject to the following
terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of this Plan, as the Board shall deem desirable: 
  

i. Stock Option Certificate. Each Stock Option shall be evidenced by, and subject to the terms of, a Stock Option Certificate executed by
the Company. The Stock Option Certificate shall specify the number of shares of Common Stock subject to the Stock Option, the option price, the option term, whether the Option is an Incentive Stock Option or a Non-Qualified Stock Option, and the
other terms and conditions applicable to the Stock Option. 
  
 ii.
Option Price. The option price per share of Common Stock purchasable upon exercise of a Stock Option shall be determined by the Board at the time of grant but (subject to Article 6.b.) with respect to a 10 Percent Owner) shall not be
less than 100% of the Fair Market Value of a share of Common Stock on the date of grant. 
  
 iii. Option Term. Subject to Article 6.b., the term of each Stock option shall be fixed by the Board, but no Stock Option shall be exercisable more than eight (8) years after the date it is granted.

  
 iv. Exercisability. Stock Options shall be
exercisable at such time or times and subject to such terms and conditions as shall be determined by the Board at the time of grant. The Board may waive any installment exercise or waiting period provisions, in whole or in part, at any time after
the date of grant, based on such factors as the Board shall, in its sole discretion, deem appropriate. 
  
 v. Method of Exercise. Subject to such installment exercise and waiting period provisions as may be imposed by the Board, Stock Options may
be exercised in whole or in part at any time during the option term, by giving written notice of exercise to the Company specifying the number of shares of Common Stock to be purchased and the option price therefore. Such notice shall be accompanied
by payment in full of the option price in such form as the Board may accept and, if requested, by the representation described in Article 12.d. Unless otherwise determined by the Board in its sole discretion at or after grant, payment in full or in
part may be made in the form of Common Stock duly owned by the Participant (and for which the Participant has good title free and clear of any liens and encumbrances), based on the Fair Market Value of the Common Stock on the date of exercise, or
through a broker-assisted cashless exercise. Upon payment in full of the option price, as provided herein, a stock certificate or stock certificates representing the number of shares of Common Stock to which the Participant is entitled shall be
issued and registered in the name of, and delivered to, the Participant. 
  
 vi. Death. Upon a Participant’s death, unless otherwise determined by the Board at the time of grant, all Stock options held by such Participant shall become fully exercisable and may thereafter be
exercised by the legal representative of the Participant’s estate for a period of one year from the date of the Participant’s death or until the expiration of the stated term of such Stock Option, whichever period is shorter. 

 

 7 

 vii. Disability. Unless otherwise determined by the Board at the time of grant, upon a
Participant’s Termination of Employment as a result of a Disability (as determined by the Board, in its sole discretion), any Stock Option held by such Participant that was exercisable on the date of such Termination of Employment may
thereafter be exercised by the Participant for a period of one year from the date of such Termination of Employment or until the expiration of the stated term of such Stock Option, whichever period is shorter; provided, however, that, if the
Participant dies within such one-year period, any unexercised Stock option held by such Participant shall thereafter be exercisable by the legal representative of the Participant’s estate to the extent to which it was exercisable at the time of
death, for a period of one year from the date of the Participant’s death or until the expiration of the stated term of such Stock Option, whichever period is shorter. In the event of Termination of Employment as a result of a Disability, if an
Incentive Stock Option is exercised after the expiration of the exercise periods that apply for purposes of Section 422 of the Code, such Stock Option will thereafter be treated as a Non-Qualified Stock Option. 
  
 viii. Retirement. Upon a Participant’s Retirement, unless
otherwise determined by the Board at the time of grant, all applicable Stock Options held by such Participant shall become fully exercisable and may thereafter be exercised as specified below: 
  
 1. Options granted prior to April 17, 2001, may be exercised for a period
of one year from the date of the Participant’s Retirement or until the expiration of the stated term of such Stock Option, whichever period is shorter. 
  
 2. Options granted on or after April 17, 2001, may be exercised for a period of two years from the date of the Participant’s Retirement or until the
expiration of the stated term of such Stock Option, whichever period is shorter. 
  
 3. Options issued to Outside Directors on or after April 17, 2001 will remain exercisable for the full term of the option regardless of whether the grantees remain a Director of the Company. 
  
 In the event of Retirement, if an Incentive Stock Option is exercised after
the expiration periods that apply for purposes of Section 422 of the Code, such Stock Option will thereafter be treated as a Non-Qualified Stock Option. 
  
 ix. Termination of Employment. Unless otherwise determined by the Board at the time of grant, upon a Participant’s Termination of
Employment for any reason other than Death, Disability or Retirement, any applicable Stock Option: 
  
 1. granted prior to April 17, 2001, and held by such Participant that was exercisable on the date of such Termination of Employment may thereafter be
exercised by the Participant for a period of 30 days or until the expiration of the stated term of such Stock Option, whichever period is shorter. 
  
 2. granted on or after April 17, 2001, and held by such Participant that was exercisable on the date of such Termination of Employment may thereafter be
exercised by the Participant for a period of 90 days or until the expiration of the stated term of such Stock Option, whichever period is shorter. 
  
 Any Stock Option that was not exercisable on the date of such Termination of Employment shall terminate as of such date. 
  

 8 

 x. Incentive Stock Option Limitations. To the extent that the aggregate Fair Market
Value (determined as of the date of grant) of the Common Stock with respect to which Incentive Stock Options are exercisable for the first time by the Participant during any calendar year under the Plan and/or any other stock option plan of the
Company or any subsidiary or parent corporation (within the meaning of Section 424 of the Code) exceeds $100,000, such Options shall be treated as Options which are not Incentive Stock Options. 
  
 Should any of the foregoing provisions not be necessary in order for the
Stock Options to qualify as Incentive Stock Options, or should any additional provisions be required, the Board may amend the Plan accordingly, without the necessity of obtaining the approval of the shareholders of the Company. 
  
 xi. Special Terms Reflecting Foreign Tax Law. An Option issued
with respect to a Participant which, because of the Participant’s residence, place of work or citizenship, will be subject to taxation by a country other than the United States may contain such special terms and/or conditions, which are not
inconsistent with paragraphs (i), (ii) and (iii) of this Article 6.d., as may be considered desirable by the Board to improve the tax efficiency of the Stock Option under the tax laws of such country. Such special terms or conditions may include,
without limitation, provisions to render the Stock Option vested for foreign tax purposes at grant but imposing penalties or restrictions in the event the Participant were to exercise the Option and leave the Company or an affiliate prior to
satisfying a designated waiting period (an “early exercise restriction”). Such early exercise restriction may include, without limitation, a financial penalty, the holding of exercised shares by the Company in escrow pending satisfaction
of the waiting period, or the granting of a Company right to re-purchase the shares at the exercise price from a Participant who terminates employment with the Company prior to the end of the waiting period. 
  
 xii. Board Discretion. Notwithstanding any other provision of
this Plan, upon a Participant’s Termination of Employment for any reason (including death, Disability or Retirement), the Board may, in its sole discretion, accelerate the exercisability of any outstanding Stock option held by such Participant
and/or extend the post-termination exercise periods set forth in subsections (vi), (vii), (viii) and (ix) of this Article 6.d., provided that such post-termination exercise period may not extend beyond the expiration of the stated term of such Stock
Option. 
  
 xiii. Misconduct. Notwithstanding any
other provision of this Plan, should the Participant’s service with the Company be terminated for Misconduct or should the Participant engage in Misconduct during the post-termination exercise period with respect to his or her Options, then all
such Options shall terminate immediately and cease to be outstanding. 
  

 9 

 ARTICLE 7. 
 Restricted Stock 
  
 a.
Awards of Restricted Stock. Subject to the limitations set forth in Article 4, the Board shall have the authority to grant Restricted Stock to any person eligible under Article 5. The Board shall determine to whom, and the time or
times at which, grants of Restricted Stock will be made, the number of shares to be included in each Award, the time or times within which such Awards may be subject to forfeiture, the vesting schedule and rights to acceleration thereof, and the
other terms and conditions of the Awards, in addition to those set forth in Article 7.b. 
  
 The provisions of Restricted Stock Awards need not be the same with respect to each Participant, and such Awards to individual Participants need not be the same in subsequent years. 
  
 b. Terms and Conditions. Restricted Stock awarded pursuant to
this Article 7 shall be subject to the following terms and conditions and such other terms and conditions, not inconsistent with the terms of this Plan, as the Board shall deem desirable: 
  
 i. Award Certificate. Each Restricted Stock Award shall be
evidenced by, and subject to the terms of, a Restricted Stock Award Certificate executed by the Company. The Restricted Stock Award Certificate shall specify the number of shares of Common Stock subject to the Award, the time or times within which
such Restricted Stock is subject to forfeiture and the other terms, conditions and restrictions applicable to such Award. 
  
 ii. Stock Certificates. When a Participant receives a Restricted Stock Award, a stock certificate or stock certificates representing the
number of shares of Common Stock covered by such Restricted Stock Award shall be issued and registered in the name of the Participant. Such stock certificates shall be held in custody by the Company as long as the Restricted Stock is subject to
forfeiture. When a Restricted Stock Award, or any portion thereof, ceases to be subject to forfeiture, the stock certificate or stock certificates representing such shares shall be released from custody and delivered to the Participant. The
Participant shall have all of the rights of a holder of Common Stock with respect to shares subject to a Restricted Stock Award, including the right to vote such shares and to receive dividends thereon, except that the Participant shall not be
permitted to sell, transfer, pledge or assign shares of Restricted Stock as long as such shares are held in custody by the Company. 
  
 iii. Restriction Period. Subject to the provisions of this Plan and the Restricted Stock Award Certificate, shares of Restricted Stock will
be forfeited to the Company upon a Participant’s Termination of Employment during a period set by the Board commencing with the date of such Award (the “Restriction Period”). Subject to the provisions of this Plan, the Board, in its
sole discretion, may provide for the lapse of such restrictions in installments. The Board may waive such restrictions, in whole or in part, at any time after the date of grant, based on such factors as the Board shall, in its sole discretion, deem
appropriate. 
  

 10 

 iv. Termination of Employment. Subject to the provisions of this Plan and the Restricted
Stock Award Certificate, upon a Participant’s Termination of Employment during the Restriction Period due to death or Disability or Retirement, restrictions will lapse with respect to a percentage of the Restricted Stock Award granted to the
Participant that is equal to the percentage of the Restriction Period that has elapsed as of the date of the Participant’s Termination of Employment, and stock certificates representing such shares of Common Stock shall be released from custody
and delivered to the Participant or the Participant’s estate, as the case may be. Upon a Participant’s Termination of Employment for any reason other than death, Disability or Retirement, all outstanding Restricted Stock Awards shall be
forfeited to the Company. 
  
 v. Distributions. In
the event of a dividend or distribution payable in stock or a reclassification, stock split or split-up, the shares issued or declared in respect of Restricted Stock shall be subject to the same terms and conditions relating to forfeiture as the
Restricted Stock to which they relate. 
  
 vi. Special Terms
Reflecting Foreign Tax Law. Restricted Stock granted with respect to a Participant which, because of the Participant’s residence, place of work or citizenship, will be subject to taxation by a country other than the United States may
contain such special terms and/or conditions as may be considered desirable by the Board to improve the tax efficiency of the grant, vesting and/or award of Restricted Stock under the tax laws of such country. 
  
 ARTICLE 8. 
 Performance Shares 
  
 a. Award of Performance Shares. Subject to the limitations set forth in Article 4, the Board shall have the authority to grant Performance Shares to any person eligible under Article 5. The Board shall
determine the persons to whom, and the time or times at which, Performance Shares shall be awarded, the number of Performance Shares to be included in each Award, the duration of the period (the “Performance Period”) during which, and the
conditions under which, receipt of the shares of Common Stock will be deferred, and the other terms and conditions of the Award in addition to those set forth in Article 8.b. 
  
 The provisions of Performance Share Awards need not be the same with respect to each Participant, and such Awards to
individual Participants need not be the same in subsequent years. 
  
 b. Terms and Conditions. Performance Shares awarded pursuant to this Article 8 shall be subject to the following terms and conditions and such other terms and conditions, not inconsistent with the terms of this Plan, as the
Board shall deem desirable: 
  
 i. Conditions. The
Board, in its sole discretion, shall specify the Performance Period during which, and the conditions under which, the receipt of shares of Common Stock covered by the Performance Share Award will be deferred. The receipt of shares of Common Stock
pursuant to a Performance Share Award shall be conditioned upon the attainment of one or more pre-established objective performance goals, which if applicable shall be established in accordance with the requirements of Section 162(m) of the Code and
the regulations promulgated thereunder. Such goals 

  

 11 

 
must be established by the Board in writing not later than 90 days after the commencement of the Performance Period, provided that the outcome is
substantially uncertain at the time the goal is established. The performance goals may be based on the Company’s stock price, return on assets, return on capital employed, return on shareholders’ equity, earnings, earnings per share, total
shareholder return, sales, costs, or such other performance goals as may be established by the Board from time to time. 
  
 ii. Award Certificate. Each Performance Share Award shall be evidenced by, and subject to the terms of, a Performance Share Certificate
executed by the Company. The Performance Share Certificate shall specify the number of shares of Common Stock subject to the Award, the applicable Performance Period, the applicable performance goals, and the other terms and conditions applicable to
such Award. 
  
 iii. Stock Certificates. If the
Board determines, after the expiration of the Performance Period, that the performance goals specified in the Performance Share Certificate and all other material terms of the Award have been satisfied, stock certificates representing the number of
shares of Common Stock covered by the Performance Share Award shall be issued and registered in the name of, and delivered to, the Participant. 
  
 iv. Termination of Employment. Unless otherwise determined by the Board at the time of grant, the Performance Shares will be forfeited upon
a Participant’s Termination of Employment during the Performance Period for any reason (including death, Disability or Retirement). 
  
 v. Special Terms Reflecting Foreign Tax Law. Performance Share Awards with respect to a Participant which, because of the Participant’s
residence, place of work or citizenship, will be subject to taxation by a country other than the United States may contain such special terms and/or conditions as may be considered desirable by the Board to improve the tax efficiency of the grant,
deferred and/or award of Performance Shares under the tax laws of such country. 
  
 c. Individual Limit. The maximum number of shares of Common Stock that may be subject to Performance Share Awards granted to any individual during any calendar year shall be 100,000 shares (subject to
any increase or decrease pursuant to Article 4.b.). 
  
 ARTICLE
9. 
 Performance Units 
  
 a. Award of Performance Units. The Board shall have the authority to grant Performance Units to any person eligible under Article V. The
Board shall determine the persons to whom, and the time or times at which, Performance Units shall be awarded, the number of Performance Units to be included in each Award, the duration of the period (the “Performance Cycle”) during which,
and the conditions under which, a Participant’s right to Performance Units will be vested, the ability of Participants to defer the receipt of payment of such Units, and the other terms and conditions of the Award in addition to those set forth
in Article 9.b. A Performance Unit shall have a fixed dollar value. The provisions of Performance Unit Awards need not be the same with respect to each Participant, and such Awards to individual Participants need not be the same in subsequent years.

  

 12 

 b. Terms and Conditions. The Performance Units awarded pursuant to this Article 9 shall be
subject to the following terms and conditions and such other terms and conditions, not inconsistent with the terms of this Plan, as the Board shall deem desirable: 
  
 i. Conditions. The Board, in its sole discretion, shall specify the Performance Cycle during which, and the
conditions under which, the Participant’s right to Performance Units will be vested. The vesting of Performance Units shall be conditioned upon the attainment of one or more pre-established objective performance goals, which if applicable shall
be established in accordance with the requirements of Section 162(m) of the Code and the regulations promulgated thereunder. Such goals must be established by the Board in writing not later than 90 days after the commencement of the Performance
Cycle, provided that the outcome is substantially uncertain at the time the goal is established. The performance goals may be based on the Company’s stock price, return on assets, return on capital employed, return on shareholders’ equity,
earnings, earnings per share, total shareholder return, sales, costs, or such other objective performance goals as may be established by the Board from time to time. 
  
 ii. Award Certificate. Each Performance Unit Award shall be evidenced by, and subject to the terms of, a
Performance Unit Certificate executed by the Company. The Performance Unit Certificate shall specify the dollar value of the Award, the applicable Performance Cycle, the applicable performance goals, and the other terms and conditions applicable to
such Award. 
  
 iii. Vesting; Payment. If the Board
determines, after the expiration of the Performance Cycle, that the performance goals specified in the Performance Unit Certificate and all other material terms of the Award have been satisfied, the Performance Units will be vested and the
Participant will receive payment of the amount specified in the Performance Unit Certificate as soon as practicable thereafter. Payment may be made in cash, shares of Common Stock or a combination of both, as determined by the Board, in its sole
discretion; provided that payment in shares of Common Stock may only be made if the aggregate number of shares of Common Stock subject to awards of Restricted Stock and Performance Share together with such payment does not exceed 100,000 shares.

  
 iv. Termination of Employment. Unless otherwise
determined by the Board at the time of grant, the Performance Units will be forfeited upon a Participant’s Termination of Employment during the Performance Cycle for any reason (including death, Disability or Retirement). 
  
 v. Special Terms Reflecting Foreign Tax Law. Performance Unit
Awards with respect to a Participant which, because of the Participant’s residence, place of work or citizenship, will be subject to taxation by a country other than the United States may contain such special terms and/or conditions as may be
considered desirable by the Board to improve the tax efficiency of the grant, vesting and/or payment of Performance Unit under the tax laws of such country. 
  
 c. Individual Limit. The maximum dollar amount of Performance Unit Awards that may be granted to any individual during any calendar year
shall be $4,000,000. 
  

 13 

 ARTICLE 10. 
 Termination or Amendment 
  
 a. Termination or Amendment of Plan. The Board may at any time amend, discontinue or terminate this Plan or any part hereof (including any amendment deemed necessary to ensure that the Company may comply with any regulatory
requirement referred to in Article 12); provided, however, that, unless otherwise required by law, the rights of a Participant with respect to Awards granted prior to such amendment, discontinuance or termination may not be impaired without the
consent of such Participant and, provided further, that the Company will seek the approval of the Company’s shareholders for any amendment if such approval is necessary to comply with the Code, Federal or state securities law or any other
applicable rules or regulations. 
  
 b. Amendment of
Awards. The Board may amend the terms of any Award previously granted, prospectively or retroactively, but, subject to Article 4, no such amendment or other action by the Board shall impair the rights of any holder without the holder’s
consent. Notwithstanding the foregoing, the Board shall not reduce the exercise price of Stock Options previously granted or substitute new Stock Options for previously granted Stock Options having higher option prices, without the prior approval of
the Company’s shareholders. 
  
 ARTICLE 11. 

Unfunded Plan 
  
 a. Unfunded Status of Plan. This Plan is intended to constitute an “unfunded” plan for incentive and deferred compensation. With
respect to any payment not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than those of a general creditor of the Company. 
  
 ARTICLE 12. 
 General Provisions 
  
 a. Nonassignment. Except as otherwise provided in this Plan, Awards made hereunder and the rights and privileges conferred thereby shall not be sold, transferred, assigned, pledged or hypothecated in any
way (whether by operation of law or otherwise), and shall not be subject to execution, attachment or similar process. Upon any attempt to sell, transfer, assign, pledge, hypothecate or otherwise dispose of such Award, right or privilege contrary to
the provisions hereof, or upon the levy of any attachment or similar process thereon, such Award and the rights and privileges conferred hereby shall immediately terminate and the Award shall immediately be forfeited to the Company. 
  
 b. Change of Control. In the event of a Change of Control, all
outstanding Stock Options shall immediately become fully exercisable and restrictions will lapse with respect to a percentage of each outstanding Restricted Stock Award equal to the percentage of the Restriction Period that has elapsed as of the
date of the Change of Control. Stock certificates representing the Common Stock covered by any outstanding Restricted Stock Award as to which restrictions have lapsed shall be released from custody and delivered to the Participants as soon as
practicable following the Change of 

  

 14 

 
Control. Stock certificates representing the Common Stock covered by any outstanding Stock Option shall be issued and registered in the name of, and
delivered to, the Participants as soon as practicable following exercise of such option and payment by the Participant of the option price and, if requested, delivery of the representation described in Article 12.d. In the event of a Change in
Control, outstanding Performance Share Awards and Performance Unit Awards shall be considered vested and all conditions therefore satisfied and, as the case may be, stock certificates representing the number of shares of Common Stock covered by the
Performance Share Awards shall be issued and registered in the name of, and delivered to, the Participants, and the cash (and stock certificates, if applicable) representing the Performance Unit Awards shall be paid to the Participants (or in the
case of stock certificates, shall be issued and registered in the name of, and delivered to, the Participants) in each case as soon as practicable following the Change in Control. 
  
 c. Rights as Shareholder. A Participant shall not be deemed to be the holder of Common Stock, or to have the
rights of a holder of Common Stock, with respect to shares subject to an Award unless and until stock certificates representing such shares of Common Stock have been issued and registered in the name of such Participant. 
  
 d. Limitations on Issuance or Transfer of Shares. No Common
Stock shall be issued or transferred in connection with an award hereunder unless and until all legal requirements applicable to the issuance or transfer of such Common Stock have been complied with to the satisfaction of the Board. The Board shall
have the right to condition any award of Common Stock made to any Participant on such Participant’s undertaking in writing to represent that he or she is acquiring such shares without a view to distribution thereof, and otherwise to comply with
such restrictions on his or her subsequent disposition of such shares of Common Stock as the Board shall deem necessary or advisable. The stock certificates representing such shares may include any legend that the Board deems appropriate to reflect
any restrictions on transfer. 
  
 All certificates representing
shares of Common Stock delivered under the Plan shall be subject to such stop-transfer orders and other restrictions as the Board may deem advisable under the rules, regulations and other requirements of the Securities and Exchange Commission, any
stock exchange or stock market on which the Common Stock is then listed or traded, any applicable Federal or state securities law, and any applicable corporate law, and the Board may cause a legend or legends to be put on any such certificates to
make appropriate reference to such restrictions. 
  
 With respect
to Section 16 Insiders and Covered Employees of the Company, transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the 1934 Act. Transactions under the Plan are also intended to
comply with all applicable conditions of the Nasdaq Stock Exchange or any other national securities exchange on which the securities of the Company are listed. To the extent any provision of the Plan or action by the Board or its delegate fails to
so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Board or its delegate. 
  

 15 

 e. Other Plans. Nothing contained in this Plan shall prevent the Board from adopting other
or additional compensation arrangements, subject to shareholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases. 
  
 f. No Right to Employment. Neither this Plan nor the grant of
any Award hereunder shall give any Participant or other person any right with respect to continuance of employment by the Company or any subsidiary, nor shall there be a limitation in any way on the right of the Company or a subsidiary to terminate
a Participant’s employment at any time. Neither this Plan nor the grant of any Award hereunder shall give any Director any right to continue as a member of the Board or obligate the Company to nominate any Director for re-election by the
Company’s shareholders. 
  
 g. Withholding of
Taxes. The Company shall have the right to reduce the number of shares of Common Stock otherwise deliverable pursuant to this Plan by an amount that would have a Fair Market Value equal to the amount of all Federal, state and local taxes
required to be withheld, based upon the tax rates then in effect, or to deduct the amount of such taxes from any cash payment to be made to a Participant, pursuant to this Plan or otherwise. In connection with such withholding, the Board may make
such arrangements as are consistent with the Plan as it may deem appropriate. 
  
 h. Listing and Other Conditions. 
  
 i. If the Common Stock is listed on a national securities exchange or the Nasdaq Stock Market, the issuance of any shares of Common Stock pursuant to an Award shall be conditioned upon such shares being listed on such
exchange or stock market. The Company shall have no obligation to issue such shares unless and until such shares are so listed, and the right to exercise any Option or to receive shares pursuant to any other Award shall be suspended until such
listing has been effected. 
  
 ii. If at any time counsel to the
Company shall be of the opinion that any sale or delivery of shares of Common Stock pursuant to an Award is or may in the circumstances be unlawful or result in the imposition of excise taxes under the statutes, rules or regulations of any
applicable jurisdiction, the Company shall have no obligation to make such sale or delivery, or to make any application or to effect or to maintain any qualification or registration under the Securities Act of 1933, as amended, or otherwise with
respect to shares of Common Stock or Awards, and the right to exercise any Option or to receive shares pursuant to any other Award shall be suspended until, in the opinion of such counsel, such sale or delivery shall be lawful or shall not result in
the imposition of excise taxes. 
  
 iii. Upon termination of any
period of suspension under this Article 12.h., any Award affected by such suspension which shall not then have expired or terminated shall be reinstated as to all shares available before such suspension and as to shares which would otherwise have
become available during the period of such suspension, but no such suspension shall extend the term of any Option. 
  
 i. Governing Law. This Plan and actions taken in connection herewith shall be governed and construed in accordance with the laws of the
Commonwealth of Pennsylvania. 
  

 16 

 j. Construction. Wherever any words are used in this Plan in the masculine gender they
shall be construed as though they were also used in the feminine gender in all cases where they would so apply, and wherever any words are used herein in the singular form they shall be construed as though they were also used in the plural form in
all cases where they would so apply. 
  
 k.
Liability. No member of the Board nor any employee of the Company or any of its subsidiaries shall be liable for any act or action hereunder, whether of omission or commission, by any other member or employee or by any agent to whom
duties in connection with the administration of this Plan have been delegated or, except in circumstances involving bad faith, gross negligence or fraud, for anything done or omitted to be done by himself. 
  
 l. Other Benefits. No payment pursuant to an Award under this
Plan shall be deemed compensation for purposes of computing benefits under any retirement plan of the Company nor affect any benefits under any other benefit plan now or hereafter in effect under which the availability or amount of benefits is
related to the level of compensation. 
  
 m. Costs.
The Company shall bear all expenses incurred in administering this Plan, including expenses of issuing Common Stock pursuant to Awards hereunder. 
  
 n. Severability. If any part of this Plan shall be determined to be invalid or void in any respect, such determination shall not affect,
impair, invalidate or nullify the remaining provisions of this Plan which shall continue in full force and effect. 
  
 o. Successors. This Plan shall be binding upon and inure to the benefit of any successor or successors of the Company. 
  
 p. Headings. Article and section headings contained in this
Plan are included for convenience only and are not to be used in construing or interpreting this Plan. 
  
 ARTICLE 13. 
 Term of Plan 
  
 a. Effective Date. This Plan, as amended and restated, shall
be effective as of such date upon its approval by the Board; provided however, that all provisions relating to the grant of Incentive Stock Options will not become effective unless this Plan is approved by the Company’s shareholders within 12
months before or after the date the Plan first containing such provisions was adopted. 
  
 b. Termination. No Award shall be granted pursuant to this Plan on or after the tenth anniversary of its approval by the Board, but Awards granted prior to such tenth anniversary may extend beyond that
date. 
  

 17

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