Document:

Exhibit 10.11

 

E. I. du Pont de Nemours and
Company

Management Deferred Compensation Plan

 

(Effective January 1, 2008)

(As Last Amended Effective May 12, 2010)

 

Article 1.                Purpose.  E. I. du Pont de Nemours and Company (“Company”)
desires to provide certain of its employees with an opportunity to accumulate
additional retirement savings through voluntary compensation deferral
contributions to a plan intended to constitute a non-qualified deferred
compensation plan which, in accordance with Sections  201(2), 301(a)(3) and 401(a)(1) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), is
unfunded and maintained by the Company primarily for the purpose of providing
deferred compensation for a select group of management or highly compensated
employees.  The Company intends that a
participant’s compensation deferrals, and the earnings thereon, will not be
subject to federal income tax until such amounts are paid or made available to
the participant.

 

Article 2.                Definitions

 

Section 2.01       “Account” means each
account established on the books of account of the Employer to reflect the
balance of Plan benefits attributable to a Participant.  An Account shall be credited or debited, as
applicable, with Deferral Contributions, Credited Investment Return and
Dividend Equivalent Units, and any payments made by the Employer to the
Participant or the Participant’s Beneficiary pursuant to this Plan.  A Participant’s Account shall be divided into
Directed Investment Subaccounts, with respect to which he/she shall be
permitted to make Deemed Investment Elections, and Stock Unit Subaccounts, with
respect to which he/she shall not be permitted to make Deemed Investment
Elections.

 

Section 2.02       “Active Participant”
means a Participant on whose behalf a current Deferral Election is in effect.

 

Section 2.03       “Administrator” means
the Company.

 

Section 2.04       “Affiliate” means any
corporation, organization or entity which is under common control with the
Company or which is otherwise required to be aggregated with the Company
pursuant to paragraphs (b), (c), (m), or (o) of Section 414 of the
Code.

 

Section 2.05       “Base Salary” means
the basic pay from the Employer (excluding LTI Awards and STI Awards,
distributions from nonqualified deferred compensation plans, commissions,
overtime, severance, fringe benefits, stock options and other equity awards,
relocation expenses, 

 

 

incentive payments,
non-monetary awards, automobile and other allowances (whether or not such
allowances are included in the Employee’s gross income) and other non-regular
forms of compensation paid to a Participant for employment services rendered).
Base Salary shall be calculated before reduction for compensation voluntarily
deferred or contributed by the Participant pursuant to all qualified or nonqualified
plans of any Employer and shall be calculated to include amounts not otherwise
included in the Participant’s gross income under Code Sections 125, 132,
402(e)(3), 402(h), or 403(b) pursuant to plans or arrangements established
by any Employer; provided, however, that all such amounts will be included in
Base Salary only to the extent that had there been no such plan, the amount
would have been payable in cash to the Employee. Notwithstanding anything in
this Plan to the contrary, Base Salary shall not include any amount paid
pursuant to a long-term disability plan or pursuant to a long-term disability
insurance policy.

 

Section 2.06       “Base Salary Deferral
Eligible Employee” means any U.S.-based employee of the Employer who is
designated from time to time by the Employer as eligible to defer the payment
of Base Salary in accordance with Article 4 hereof.

 

Section 2.07       “Beneficiary” means
the person or persons designated as such pursuant to Article 7 hereof.

 

Section 2.08       “Change of Control”
means an objectively determined event that occurs with respect to the Company
or the Employer for whom the Participant renders services and which constitutes
both a Change in Control for purposes of the Equity and Incentive Plan and
change in the ownership or effective control of the Company or Employer, as
applicable, or in the ownership of a substantial portion of the Company’s or
Employer’s, as applicable, assets for purposes of Code Section 409A.

 

Section 2.09       “Changed Personal
Circumstances” means an event or series of events beyond the control of the
Participant which were unforeseeable at the time a Deferral Election was made
which will result in a severe financial hardship for the Participant absent a
cancellation of the Deferral Election at issue. 
A financial hardship shall be deemed severe if the amount involved
equals or exceeds the annual Deferral otherwise resulting from the Deferral
Election at issue.  Whether a Participant
has experienced Changed Personal Circumstances shall be determined on a
facts-and-circumstances basis in the sole discretion of the Administrator.

 

Section 2.10       “Code” means the
Internal Revenue Code of 1986, as amended, and the regulations and rulings
issued thereunder.

 

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Section 2.11       “Common Stock Unit”
means a notional unit representing one share of common stock of the Company.

 

Section 2.12       “Credited Investment
Return” means the hypothetical gain or loss credited to a Participant’s
Directed Investment Subaccounts pursuant to Article 5 hereof.

 

Section 2.13       “Deemed Investment
Election” means the selection by a Participant, pursuant to Article 5
hereof, of Investment Options in which his/her Directed Investment Subaccounts
shall be deemed invested.

 

Section 2.14       “Deferral Contributions”
means the elective contributions made to the Plan by a Participant pursuant to Article 4
hereof.

 

Section 2.15       “Deferral Election”
means an election, pursuant to Article 4 hereof, to defer receipt of Base
Salary or STI Awards, or the settlement of LTI Awards.  Deferral Elections shall be made in
accordance with the procedures established by the Administrator for that
purpose.  A Deferral Election may be
cancelled due to an  “unforeseeable
emergency” as defined in Treasury Regulation Section 1.409A-3(i)(3) or
a hardship distribution pursuant to Section  1.401(k)-1(d)(3). The
Deferral Election must be cancelled, not merely postponed or otherwise
delayed.  Any later Deferral Election
will be subject to the provisions of Article 4 of this Plan governing Deferral
Elections.

 

Section 2.16       “Directed Investment
Subaccount” means that portion of a Participant’s Account to which a
Participant’s Deferral Contributions of Base Salary and STI Awards, and
Credited Investment Return and Dividend Equivalent Units attributable thereto,
will be allocated and with respect to which he/she may make Deemed Investment
Elections in accordance with Article 5 hereof.  A Participant may maintain no more than five (5) Directed
Investment Subaccounts under this Plan.

 

Section 2.17       “Dividend Equivalent
Units” means additional Common Stock Units credited to a Participant’s
Account pursuant to Section 5.05.

 

Section 2.18       “Dividend Payment Date”
means each date on which the Company pays a dividend on its common stock.

 

Section 2.19       “Effective Date”
means January 1, 2008. 
Notwithstanding the foregoing to the contrary, provisions of this Plan
related 

 

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to the deferral of Base
Salary and LTI Awards shall not be effective until January 1, 2009.

 

Section 2.20       “Eligible Employee”
means any Base Salary Deferral Eligible Employee, STI Deferral Eligible
Employee or LTI Deferral Eligible Employee.

 

Section 2.21       “Employer” means the
Company and any Affiliate which, with the consent of the Company, adopts this
Plan.

 

Section 2.22       “Equity and Incentive
Plan” means the E.I. du Pont de Nemours and Company Equity and Incentive
Plan.

 

Section 2.23       “Form of Payment”
means either (i) a lump sum or (ii) annual installments (for up to
fifteen (15) years).  Annual installments
are available only in connection with a Separation from Service or Change of
Control.  In the event of a Participant’s
death, his/her remaining Account balance will be distributable in a single lump
sum.

 

Section 2.24       “Identification Date”
means each December 31.

 

Section 2.25       “Investment Options”
means one or more alternatives designated from time to time, pursuant to Section 5.01
hereof, for purposes of crediting earnings or losses to Directed Investment
Subaccounts.

 

Section 2.26       “LTI Award” means an
award of RSUs or PSUs.

 

Section 2.27       “LTI Deferral Eligible
Employee” means any U.S.-based employee of the Employer who is designated
from time to time by the Company as eligible to defer the settlement of an LTI
Award in accordance with Article 4 hereof.

 

Section 2.28       “Participant” means
any Eligible Employee who has elected to participate in the Plan by completing
the appropriate forms (including electronic forms) prescribed by the
Administrator for that purpose.

 

Section 2.29       “Payment Event” means
any of the following:

 

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(a)       Separation from Service

 

(b)       The earlier of (i) Separation
from Service or (ii) a specified date

 

(c)       Change of Control

 

Notwithstanding
the foregoing, (i) in the event of a Participant’s death, his/her
remaining Account balance will automatically be distributed to his/her
Beneficiary in a single lump sum within ninety days (90) thereafter and (ii) a
Participant may request that all or a portion of his/her Account be distributed
on account of an “unforeseeable emergency” as defined in Treasury Regulation Section 1.409A-3(i)(3) and
subject to the restrictions on such distributions set forth therein.

 

Section 2.30       “Plan” means the E.I
du Pont de Nemours and Company Management Deferred Compensation Plan.

 

Section 2.31       “Plan Year” means the
twelve (12) month period beginning January 1 and ending December 31.

 

Section 2.32       “PSU” means a
performance-based restricted stock unit granted under the Equity and Incentive
Plan.

 

Section 2.33       “Qualified Leave”
means military leave, sick leave, or other bona fide leave of absence if the
period of such leave does not exceed six months, or if longer, so long as the
individual retains a right to reemployment with the service recipient under an applicable
statute or by contract. A leave of absence constitutes a bona fide leave of
absence only if there is a reasonable expectation that the employee will return
to perform services for the employer. If the period of leave exceeds six months
and the individual does not retain a right to reemployment under an applicable
statute or by contract, the employment relationship is deemed to terminate on
the first date immediately following such six-month period.

 

Section 2.34       “RSU” means a
time-vested restricted stock unit granted under the Equity and Incentive Plan.

 

Section 2.35       “Section 16 Person”
means any employee who is subject to the reporting requirements of Section 16(a) or
the liability provisions of Section 16(b) of the Securities and
Exchange Act of 1934, as amended.

 

Section 2.36       “Separation from Service”
means a “separation from service” as defined in Treasury Regulation Section 1.409A-1(h).

 

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Section 2.37       “Similar Plan” means
a plan required to be aggregated with this Plan under Treasury Regulation Section 1.409A-1(c)(2)(i)(A).

 

Section 2.38       “Specified Employee”
means an officer of the Employer at any time during the 12-month period ending
on an Identification Date.  If a
Participant is a Specified Employee as of an Identification Date, such
Participant is treated as a Specified Employee for the 12-month period
beginning on the first day of the first month following the Identification
Date.

 

Section 2.39       “STI Award” means a
cash-based award under the Equity and Incentive Plan or Pioneer Hi-Bred
International, Inc. Annual Reward Plan.

 

Section 2.40       “STI Deferral Eligible
Employee” means any U.S.-based employee of the Employer who is designated
from time to time by the Employer as eligible to defer the payment of an STI
Award in accordance with Article 4 hereof.

 

Section 2.41       “Stock Unit Subaccount”
means that portion of a Participant’s Account to which a Participant’s Deferral
Contributions of LTI Awards, and Dividend Equivalent Units attributable thereto,
will be allocated and with respect to which he/she may not make Deemed
Investment Elections in accordance with Article 5 hereof.  A Participant may maintain no more than five (5) Stock
Unit Subaccounts under this Plan.

 

Section 2.42       “Triggering Event” means,
with respect to a Distribution Subaccount, the Payment Event elected by a
Participant pursuant to Section 4.03.

 

Article 3.                Eligibility.

 

Section 3.01       Procedure For and Effect of
Admission.  Each
Eligible Employee who desires to participate in this Plan shall complete such
forms (including electronic forms) and provide such data as is reasonably
required by the Administrator. By becoming a Participant, an Eligible Employee
shall be deemed to have consented to the provisions of this Plan and all amendments
hereto.

 

Section 3.02       Cessation of Participation.  A Participant shall cease to be an Active
Participant on the earlier of:

 

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(a)       The date on which the Plan
terminates;

 

(b)       The date on which he/she ceases
to be an Eligible Employee; or

 

(c)       The date on which he/she is
permitted by the Administrator to terminate Deferral Contributions to the Plan.

 

A
former Active Participant will be considered a Participant for all purposes,
except with respect to the right to make contributions, as long as he/she
retains an Account.

 

Article 4.                Deferral Elections

 

Section 4.01       Annual Deferral Elections

 

(a)       Deferral
Contributions of Base Salary.  A Base Salary Deferral Eligible Employee may
elect to defer a percentage, not to exceed 60%, of his/her Base Salary payable
with respect to services performed during the Plan Year; provided, however,
that such Deferral Election shall be made (i) during the open enrollment
period established by the Administrator for that purpose and (ii) on or
before the last day of the calendar year preceding the first day of the Plan
Year to which such Deferral Election relates. 
A Base Salary Deferral Eligible Employee may elect to cancel a Deferral
Election made pursuant to this section on account of Changed Personal
Circumstances provided such election is made on or before the last day of the
calendar year preceding the first day of the Plan Year to which such Deferral
Election relates.  Any election made
pursuant to this section shall remain in effect unless and until changed by the
Participant; provided, however, that with respect to Base Salary earned in any
future taxable year, such election becomes irrevocable on December 31 of
the preceding calendar year.

 

(b)       Deferral
Contributions of STI Awards.  An STI Deferral Eligible Employee may elect
to defer a percentage, not to exceed 60%, of an STI Award; provided, however,
that (i) such STI Deferral Eligible Employee performs services
continuously from the later of the beginning of the performance period or the
date the performance criteria are established through the date the election to
defer is made and (ii) such Deferral Election is made (A) during the
open enrollment period established by the Administrator for that purpose and (B) on
or before the date that is six  months
before the end of the performance period over which the STI Award shall be
determined.  An STI Deferral Eligible
Employee may elect to cancel a Deferral Election made pursuant to this section
on account of Changed Personal Circumstances provided such election is made on
or before the date that is six months before the end 

 

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of
the performance period over which the STI Award shall be determined.  Any election made pursuant to this section
shall remain in effect unless and until changed by the Participant; provided,
however, that with respect to any STI Award earned during any future taxable
year, such election becomes irrevocable on the date that is six months before
the end of the performance period over which the STI Award shall be determined.

 

(c)       Deferral
Contributions of LTI Awards.

 

(i)            RSUs.  An LTI Deferral Eligible Employee may elect
to defer the settlement of RSUs granted during a Plan Year; provided, however,
that such Deferral Election shall be made (i) during the open enrollment
period established by the Administrator for that purpose and (ii) on or
before the last day of the calendar year preceding the first day of the Plan
Year to which such Deferral Election relates. 
An LTI Deferral Eligible Employee may elect to cancel a Deferral
Election made pursuant to this section on account of Changed Personal
Circumstances provided such election is made on or before the last day of the
calendar year preceding the first day of the Plan Year to which such Deferral
Election relates.  Notwithstanding the
foregoing, an LTI Deferral Eligible Employee may elect to defer the settlement
of RSUs that are subject to a vesting period of at least 12 months, provided
such election is made on or before the thirtieth (30th) day after the LTI
Deferral Eligible Employee is granted the RSUs and further provided that the
election is made at least 12 months in advance of the earliest date on which
the vesting period could expire.  In the
event that a timely election to defer the settlement of RSUs may not be made
pursuant to either of the foregoing sentences of this paragraph, an LTI
Deferral Eligible Employee may elect to defer the settlement of RSUs provided
such election is made at least 12 months in advance of the date on which the
restrictions on such RSUs lapse and further provided that such RSUs may not be
settled until the fifth anniversary of the date that the restrictions on the
RSUs lapsed.  Notwithstanding the
foregoing to the contrary, an LTI Deferral Eligible Employee shall not be
permitted to elect to defer the settlement of RSUs unless such election
complies with Code Section 409A.  If
a Participant elects to defer settlement of RSUs, any restrictions on
transferability and/or events of forfeiture applicable to such RSUs under the
Equity and Incentive Plan or the Award Terms (as defined under the Equity and
Incentive Plan) shall continue in full force and effect.  Upon expiration of all restrictions on
transferability, the appropriate number of Common Stock Units of the Company,
including Dividend Equivalent Units attributable thereto, shall be credited to
the Participant’s applicable Stock Unit 

 

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Subaccount.  Any election made pursuant to this Section shall
remain in effect unless and until changed by the Participant; provided,
however, that with respect to RSUs granted in any future taxable year, such
election becomes irrevocable on the last day of the calendar year preceding the
Plan Year during which the RSUs are granted or, if later, on the thirtieth
(30th) day after the LTI Deferral Eligible Employee is granted the RSUs and at
least 12 months in advance of the earliest date on which the vesting period
could expire.

 

(ii)           PSUs.  An LTI Deferral Eligible Employee may elect
to defer the settlement of PSUs provided, however, that (i) such LTI
Deferral Eligible Employee performs services continuously from the later of the
beginning of the performance period or the date the performance criteria are
established through the date the election to defer is made and (ii) such
Deferral Election is made (A) during the open enrollment period
established by the Administrator for that purpose and (B) on or before the
date that is six  months before the end
of the performance period over which the PSU settlement shall be
determined.  An LTI Deferral Eligible
Employee may elect to cancel a Deferral Election made pursuant to this section
on account of Changed Personal Circumstances provided such election is made on
or before the date that is six  months
before the end of the performance period over which the PSU settlement shall be
determined.  Any election made pursuant
to this Section shall remain in effect unless and until changed by the
Participant; provided, however, that with respect to any PSUs earned during any
future taxable year, such election becomes irrevocable on the date that is
six  months before the end of the
performance period over which the PSU settlement shall be determined.

 

Section 4.02       Initial Distribution
Elections.

 

(a)       Directed
Investment Subaccounts.  A
Participant may elect to establish up to five (5) Directed Investment
Subaccounts under his/her Account.  At
the time a Participant establishes a Directed Investment Subaccount, he/she
must also elect a Payment Event and Form of Payment with respect to such
subaccount.  When making a Deferral
Election with respect to Base Salary or STI Awards, a Participant shall
designate:  (i) to which Directed
Investment Subaccounts amounts deferred pursuant to that election, and Credited
Investment Return and Dividend Equivalent Units attributable thereto, shall be
allocated; and (ii) how those amounts shall be allocated among the
designated Directed Investment Subaccounts. 
If a Participant fails to establish a Directed Investment Subaccount or
fails to designate the Directed Investment Subaccount(s) to which his/her
Deferral Contributions of Base Salary or 

 

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STI
Awards should be allocated, such Deferral Contributions shall be allocated to
the default Directed Investment Subaccount established by the
Administrator.  The Payment Event with
respect to such default Directed Investment Subaccount shall be Separation of
Service and the Form of Payment shall be a lump sum.

 

(b)       Stock Unit
Subaccount.  A
Participant may elect to establish up to five (5) Stock Unit Subaccounts
under his/her Account.  At the time a
Participant establishes a Stock Unit Subaccount, he/she must also elect a
Payment Event and Form of Payment with respect to such subaccount.  When making a Deferral Election with respect
to LTI Awards, a Participant shall designate: 
(i) to which Stock Unit Subaccounts amounts deferred pursuant to
that election, and Dividend Equivalent Units attributable thereto, shall be
allocated; and (ii) how those amounts shall be allocated among the
designated Stock Unit Subaccounts.  If a
Participant fails to establish a Stock Unit Subaccount or fails to designate
the Stock Unit Subaccount(s) to which his/her Deferral Contributions of
LTI Awards should be allocated, such Deferral Contributions shall be allocated
to the default Stock Unit Subaccount established by the Administrator.  The Payment Event with respect to such
default Stock Unit Subaccount shall be Separation of Service and the Form of
Payment shall be a lump sum.

 

Section 4.03       Subsequent Distribution
Elections.  A
Participant may subsequently elect to change the Payment Event or Form of
Payment elected with respect to one or more Directed Investment Subaccounts or
Stock Unit Subaccounts in accordance with procedures established by the
Administrator for such purpose; provided, however, that:  (i) such subsequent election may not
take effect until at least 12 months after the date on which it is made; (ii) the
payment with respect to which such election is made must be deferred for a
period of not less than five (5) years from the date such payment would
otherwise have been made; and (iii) any subsequent election related to a
payment at a specified time or in accordance with a fixed schedule may not be
made less than 12 months prior to the date of the first scheduled payment.

 

Article 5.                Investment of Accounts

 

Section 5.01       Investment Options.  The Administrator shall designate from time
to time one or more Investment Options in which a Participant’s Directed
Investment Subaccounts may be deemed invested. The Administrator shall have the
sole discretion to determine the number of Investment Options to be designated
hereunder and the nature of the Investment Options and may change or eliminate
any of the Investment Options from time to time.  In the event of such change or elimination,
the Administrator shall give each Participant timely notice and opportunity to
make a new election. No such change or elimination of any Investment

 

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Options
shall be considered to be an amendment to the Plan pursuant to Section 9.01.

 

Section 5.02                    Making Deemed
Investment Elections.  A
Participant shall select one or more Investment Options in which his/her
Directed Investment Subaccounts shall be deemed invested.  Separate Deemed Investment Elections may be
made with respect to each Directed Investment Subaccount.  Any such election shall be made by filing
with the Administrator the appropriate form prescribed for that purpose.  The Administrator shall establish procedures
relating to Deemed Investment Elections. 
Deemed Investment Elections shall remain in affect until changed by a
Participant pursuant to Section 5.03.

 

Section 5.03                    Changes to
Deemed Investment Elections.  A Participant may request a change to his/her
Deemed Investment Elections for future amounts allocated to his/her Directed
Investment Subaccount and amounts already allocated to his/her Directed
Investment Subaccount.  Any such change
shall be made by filing with the Administrator the appropriate form (including
electronic forms) prescribed by the Administrator for that purpose. The
Administrator shall establish procedures relating to changes in Deemed
Investment Elections, which may include limiting the percentage, amount and
frequency of such changes and specifying the effective date for any such
changes.

 

Section 5.04                    Crediting or
Debiting of Investment Experience.  Each Participant’s Directed Investment
Subaccount shall be credited or debited, as applicable, daily with the amount which
the Participant’s Directed Investment Subaccount would have earned or lost, as
applicable, if the amounts credited to such account had, in fact, been invested
in accordance with the Participant’s Deemed Investment Elections.

 

Section 5.05                    Dividend Equivalent
Units.  If dividends on the Company’s
common stock are paid during any period that a Participant holds Common Stock
Units in one or more of his/her Directed Investment Subaccounts or Stock Unit
Subaccounts, as of the applicable Dividend Payment Date, a number of additional
Common Stock Units shall be credited to such Directed Investment Subaccount(s) or
Stock Unit Subaccount(s), as applicable. 
The number of such additional Common Stock Units to be credited shall be
determined by first multiplying: (a) the total number of Common Stock
Units, including fractional units, standing to the Participant’s credit in such
account on the day immediately preceding such Dividend Payment Date (including
all Dividend Equivalent Units credited to such account on all previous Dividend
Payment Dates); by (b) the per share dollar amount of the dividend paid on
such Dividend Payment

 

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Date;
and then (c) dividing the resulting amount by the closing price of one
share of the Company’s common stock on such Dividend Payment Date.

 

Article 6.                                                Payment of
Accounts

 

Section 6.01                    Payment in
General.  Upon the
occurrence of a Triggering Event that is a Separation from Service or a Change
of Control, the Employer shall, within 90 days thereafter, commence payment of
the applicable Distribution Subaccount(s) to the Participant, or his/her
Beneficiary, as applicable, in the Form of Payment elected by the
Participant with respect thereto.  Upon
the occurrence of a Triggering Event that is a specified date or a fixed
schedule of payments, the Employer shall commence payment of the applicable
Subaccount to the Participant on such specified date or in accordance with such
fixed schedule of payments.  The amount
of each payment made pursuant to this section shall be based upon the fair
market value of the Participant’s Account as of the latest practicable date
preceding the payment date and the number of remaining scheduled payments due.

 

Section 6.02                    Specified
Employees. 
Notwithstanding Section 6.01, upon the occurrence of a Triggering
Event that is a Separation from Service (other than on account of death), the
Employer shall commence payment of the applicable Distribution Subaccount(s) to
the Participant in the Form of Payment elected by the Participant with
respect thereto on the later of: (1) the date that is six months and one
day after such Triggering Event; or (2) the date on which such payment was
otherwise scheduled to commence.

 

Section 6.03                    Medium of
Payments.  Payments
attributable to that portion of a Participant’s Directed Investment Subaccount
which is deemed to be invested in Common Stock Units shall be paid in shares of
the Company’s common stock for each whole unit and cash for each fraction of a
unit.  Payments attributable to the
remaining portion of a Participant’s Directed Investment Subaccount shall be
paid in cash.  Payments attributable to a
Participant’s Stock Unit Subaccounts shall be delivered in shares of the
Company’s common stock for each whole unit and cash for each fraction of a
unit.

 

Article 7.                                                Beneficiary
Designation

 

Section 7.01                    Right to
Designate Beneficiary.  The
Participant will have the right, at any time, to designate any person or
persons as Beneficiary (both primary and contingent) to whom payment under the
Plan will be made in the event of the Participant’s death. The Beneficiary
designation will be effective when it is submitted in writing or electronically
to 

 

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the
Administrator during the Participant’s lifetime on a form prescribed by the
Administrator.

 

Section 7.02                    Cancellation/Revocation
of Beneficiary Designation.  The submission of a new Beneficiary
designation will cancel all prior Beneficiary designations.

 

Section 7.03                    Failure to
Designate Beneficiary or Death of Beneficiary.  If a Participant fails to designate a
Beneficiary as provided above, or if every person designated as Beneficiary
predeceases the Participant, then the Administrator will direct the
distribution of the benefits to the Participant’s estate. If a primary
Beneficiary dies after commencement the Participant’s death but prior to
completion of benefits under this Plan, and no contingent Beneficiary has been
designated by the Participant, any remaining payments will be paid to the
Beneficiary’s estate.

 

Article 8.                                                Plan
Administration

 

Section 8.01                    Administrator’s
Responsibilities.  The
Administrator is responsible for the day to day administration of the
Plan.  The Administrator may appoint
other persons or entities to perform certain of its functions. Such appointment
shall be made and accepted by the appointee in writing and shall be effective
upon the written approval of the Company. 
The Administrator and any such appointee may employ advisors and other
persons necessary or convenient to help him/her carry out his/her duties.  The Administrator shall have the right to
remove any such appointee from his/her position. Any person, group of persons
or entity may serve in more than one capacity.

 

Section 8.02                    Records and
Accounts.  All
individual and group records relating to Participants and Beneficiaries, and
all other records necessary for the proper operation of the Plan, shall be made
available to the Employer and to each Participant and Beneficiary for
examination during business hours except that a Participant or Beneficiary
shall examine only such records as pertain exclusively to the examining
Participant or Beneficiary and those records and documents relating to all
Participants generally.

 

Section 8.03                    Administrator’s
Specific Powers and Duties.  In addition to any powers, rights and duties
set forth elsewhere in the Plan, the Administrator shall have the following
powers and duties:

 

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(a)            to adopt such rules and regulations consistent
with the provisions of the Plan;

 

(b)           to enforce the Plan in accordance with its terms and
any rules and regulations it establishes;

 

(c)            to maintain records concerning the Plan sufficient
to prepare reports, returns and other information required by the Plan or by
law;

 

(d)           to construe and interpret the Plan and to resolve
all questions arising under the Plan;

 

(e)            to direct the Employer to pay benefits under the
Plan, and to give such other directions and instructions as may be necessary
for the proper administration of the Plan;

 

(f)              to engage assistants and professional advisors.

 

Section 8.04                    Construction of
the Plan.  The
Administrator shall have the sole and absolute discretion to interpret the Plan
and shall resolve all questions arising in the administration, interpretation
and application of the Plan. The Administrator shall correct any defect,
reconcile any inconsistency, or supply any omission with respect to this Plan.
All such corrections, reconciliations, interpretations and completions of Plan
provisions shall be final and binding upon the parties.

 

Section 8.05                    Employer’s
Responsibility to Administrator.  Each Employer shall furnish the Administrator
such data and information as it may require. 
The records of the Employer shall be determinative of each Participant’s
period of employment, termination of employment and the reason therefor, leave
of absence, reemployment, years of service, personal data, and compensation
reductions.  Participants and their
Beneficiaries shall furnish to the Administrator such evidence, data, or
information, and execute such documents, as the Administrator requests.

 

Section 8.06                    Engagement of
Assistants and Advisers; Plan Expenses.  The Administrator shall have the right to
hire such professional assistants and consultants as it, in its sole
discretion, deems necessary or advisable, including, but not limited to:

 

14

 

(a)            investment managers and/or advisers;

 

(b)           accountants;

 

(c)            actuaries;

 

(d)           attorneys;

 

(e)            consultants; and

 

(f)              clerical and office personnel.

 

Section 8.07                    Liability.  Neither the Administrator nor the Employer
shall be liable to any person for any action taken or omitted in connection
with the administration of this Plan unless attributable to its own fraud or
willful misconduct; nor shall the Employer be liable to any person for such
action unless attributable to fraud or willful misconduct on the part of a
director, officer or employee of the Employer.

 

Section 8.08                    Payment of Expenses.  If directed by the Company, expenses of the
Administrator incurred in the operation or administration of this Plan shall be
charged against the Participant’s Accounts to which the expense relates. If an
expense is applicable to more than one Participant’s Accounts, the expense
shall be allocated among such Participants’ Accounts in a non-discriminatory
manner as determined by the Company.

 

Section 8.09                    Indemnity of
Administrator.  The Employer
shall indemnify the Administrator (including any individual who is a member of
a committee serving as the Administrator) or any individual who is a delegate
of the Administrator against any and all claims, loss, damage, expense or
liability arising from any action or failure to act, except when due to gross negligence
or willful misconduct.

 

Article 9.                                                Amendment or
Termination

 

Section 9.01                    Amendment.  The Board of Directors of the Company, or its
delegate, may amend the Plan at any time and from time to time and any
amendment may have retroactive effect, including, without limitation,
amendments to the amount of contributions; provided, however, that no amendment
shall (i) reduce the value of a Participant’s Account or (ii) change
the form or timing of payment of an amount contributed prior to the date of amendment.

 

Section 9.02                    Termination.  While the Plan is intended to be permanent,
the Board of Directors of the Company, or its delegate, may at any time
terminate or partially terminate the Plan, provided that upon such

 

15

 

termination,
except to the extent otherwise permitted under Code Section 409A, all
Accounts will be distributed in accordance with the terms of the Plan as in
effect on the date of termination. 
Written notice of such termination or partial termination, setting forth
the date and terms thereof, shall be given to the Administrator.

 

Article 10.                                          Miscellaneous

 

Section 10.01              Section 16 Person.  With respect to Section 16 Persons, the
Administrator may establish, in writing, such rules, regulations, policies or
practices hereunder which it deems, in its sole discretion, to be necessary and
appropriate.

 

Section 10.02              Claims Review.  In any case in which a claim for Plan
benefits of a Participant or Beneficiary is denied or modified, the Administrator
shall furnish written notice to the claimant within 90 days (or within 180 days
if additional information requested by the Administrator necessitates an
extension of the 90-day period), which notice shall:

 

(a)            State the specific reason or reasons for the denial
or modification;

 

(b)           Provide specific reference to pertinent Plan
provisions on which the denial or modification is based;

 

(c)            Provide a description of any additional material or
information necessary for the Participant, his/her Beneficiary, or
representative to perfect the claim and an explanation of why such material or
information is necessary; and

 

(d)           Explain the Plan’s claim review procedure as
contained herein, including the claimant’s right to bring a civil action under Section 502(a) of
ERISA following an adverse review determination.

 

In
the event a claim for Plan benefits is denied or modified, if the Participant,
his/her Beneficiary, or a representative of such Participant or Beneficiary
desires to have such denial or modification reviewed, he/she must, within 60
days following receipt of the notice of such denial or modification, submit a
written request for review by the Administrator of its initial decision.  In connection with such request, the
Participant, his/her Beneficiary, or the representative of such Participant or
Beneficiary may review any pertinent documents upon which such denial or
modification was based and may submit issues and comments in writing.  Within 60 days following such request for
review the Administrator shall, after providing a full and fair review, render
its final decision in writing to the Participant, his/her beneficiary or the
representative of such Participant or Beneficiary stating specific reasons for
such decision, making specific references to pertinent Plan provisions upon
which the decision is based and stating that the claimant is entitled to
receive, upon request and free of charge,

 

16

 

reasonable access to, and
copies of, all documents, records, and other information relevant to the
claim.  If special circumstances require
an extension of such 60-day period, the Administrator’s decision shall be
rendered as soon as possible, but not later than 120 days after receipt of the
request for review.  If an extension of
time for review is required, written notice of the extension shall be furnished
to the Participant, Beneficiary, or the representative of such Participant or
Beneficiary prior to the commencement of the extension period.

 

Section 10.03              Limitation of Participant’s
Rights.  Nothing in this Plan shall be
construed as conferring upon any Participant any right to continue in the
employment of an Employer, nor shall it interfere with the rights of an
Employer to terminate the employment of any Participant and/or take any
personnel action affecting any Participant without regard to the effect which
such action may have upon such Participant as a recipient or prospective
recipient of benefits under the Plan.

 

Section 10.04              Obligations to Employer.  If a Participant becomes entitled to a
distribution of benefits under the Plan, and if at such time the Participant
has outstanding any debt, obligation, or other liability representing an amount
owing to an Employer, then such Employer may offset such amount owed to it
against the amount of benefits otherwise distributable. Such determination
shall be made by the Administrator.

 

Section 10.05              Nonalienation of Benefits.  Except as expressly provided herein, no
Participant or Beneficiary shall have the power or right to transfer (otherwise
than by will or the laws of descent and distribution), alienate, or otherwise
encumber the Participant’s interest under the Plan.  Any such attempted assignment shall be
considered null and void.  The interest
of any Participant or any beneficiary receiving payments hereunder shall not be
subject in any manner to anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment, or garnishment by creditors of the Participant
or the Participant’s Beneficiary.  An
Employer’s obligations under this Plan are not assignable or transferable
except to (a) a business entity which acquires all or substantially all of
an Employer’s assets or (b) any business entity into which an Employer may
be merged or consolidated.

 

Section 10.06              Unfunded Status of Plan.  The Plan is intended to constitute an “unfunded”
plan of deferred compensation for Participants for tax and for purposes of
Title I of ERISA.  The Plan constitutes a
mere promise by the Employer to make benefit payments in the future. Each
Employer shall not be liable for any benefit payments to any other Employer’s
Eligible Employees who are Participant is this Plan. Benefits payable hereunder
shall be payable out of the general assets of the applicable Employer, and no
segregation of any assets whatsoever for such benefits shall be made.  With respect to any payments not yet made to
a 

 

17

 

Participant,
nothing contained herein shall give any such Participant any rights that are
greater than those of a general creditor of his/her Employer.

 

Section 10.07              Severability.  If any provision of this Plan is held
unenforceable, the remainder of the Plan shall continue in full force and
effect without regard to such unenforceable provision and shall be applied as
though the unenforceable provision were not contained in the Plan.

 

Section 10.08              Gender, Singular &
Plural.  All pronouns and any variations
thereof shall be deemed to refer to the masculine, feminine, or neuter, as the
identity of the person or persons may require. As the context may require, the
singular may be read as the plural and the plural as the singular.

 

Section 10.09              Notice.  Any notice or filing required or permitted to
be given to the Administrator under the Plan shall be sufficient if in writing
and hand delivered, or sent by registered or certified mail, to the
Administrator or to such representatives as the Administrator may designate
from time to time.  Such notice shall be
deemed given as to the date of delivery or, if delivery is made by mail, as of
the date shown on the postmark on the receipt for registration or
certification.

 

Section 10.10              Governing Law.  The Plan shall be governed and construed
under the laws of the State of Delaware to the extent not preempted by Federal
law which shall otherwise control.

 

Section 10.11              Binding Terms.  The provisions of the Plan shall be binding
upon and inure to the benefit of the parties hereto, their respective heirs,
executors, administrators and successors.

 

Section 10.12              Headings.  All headings preceding the text of the
several Sections hereof are inserted solely for reference and shall not
constitute a part of this Plan, nor affect its meaning, construction or effect.

 

Section 10.13              Representations.  The Employer does not represent or guarantee
that any particular federal or state income, payroll, personal property or
other tax consequence will result from participation in the Plan.  A Participant should consult with
professional tax advisors to determine the tax consequences of his/her
participation.  In addition, the Company
does not represent or guarantee positive Credited Investment Return and shall
not be required to restore any negative Credited Investment Return.

 

Section 10.14              Compliance with Section 409A.  The Company intends that this Plan provide
for the deferral of compensation as permitted

 

18

 

under Code Section 409A.  If any provision of this Plan is determined
to be inconsistent with such intent, it shall be severable and the balance of
this Plan shall remain in full force and effect.

 

19Exhibit 10.1

 

B&G FOODS, INC.

 

2008 OMNIBUS INCENTIVE COMPENSATION PLAN

 

Originally Adopted: March 10, 2008

 

Effective: May 6, 2008

 

As Amended on May 18, 2010

 

 

B&G FOODS, INC.

 

2008 OMNIBUS INCENTIVE COMPENSATION PLAN

 

1.                                      Purpose of the Plan.  The purpose of the Plan is to benefit the
Company’s stockholders by encouraging high levels of performance by individuals
who contribute to the success of the Company and to assist the Company in
attracting, motivating, retaining and rewarding talented and experienced
Employees, Non-Employee Directors and Consultants by offering them a greater
stake in the Company’s success and a closer identity with it.  This purpose is to be accomplished by
providing Employees, Non-Employee Directors and Consultants with an opportunity
to obtain or increase a proprietary interest in the Company and/or by providing
Employees, Non-Employee Directors and Consultants with additional incentives to
join or remain with the Company.

 

2.                                      Definitions.   As
used herein, the following definitions shall apply:

 

2.1.                              “Award” means a grant
of Restricted Stock, Options, SARs, Deferred Stock, Stock Units, Performance
Share Awards or Cash-Based Awards under the Plan.

 

2.2.                              “Award Agreement”
means the written agreement, instrument or document evidencing an Award.

 

2.3.                              “Board” means the
Board of Directors of the Company.

 

2.4.                              “Cash-Based Award”
means an award payable in cash only that is granted to a Participant under Section 12.

 

2.5.                              “Cause” means, unless
otherwise provided in an Award Agreement or an Employment Agreement to which
the Participant is a party:  (i) gross
misconduct or gross negligence in the performance of the Participant’s duties
to the Company or any of its Subsidiaries; (ii) conviction of a felony or
any other crime involving moral turpitude, whether or not relating to the
Participant’s employment; (iii) material non-performance or
mis-performance of a Participant’s duties; (iv) material violation of
policies or procedures established by the Company or any of its Subsidiaries,
including, without limitation, the Company’s code of conduct and insider
trading policies; (v) habitual unexcused absence from the facilities of
the Corporation; (vi) insobriety or use of drugs, chemicals or controlled
substances either in the course of performing the Participant’s duties and
responsibilities or otherwise affecting the ability of the Participant to
perform those duties and responsibilities; (vii) wanton or willful failure
to comply with the lawful written directions of the Board or other superiors;
or (v) material violation of any Employment Agreement, Award Agreement or
any non-compete, non-solicitation, confidentiality or similar covenants or
policies with or established by the Company or any of its Subsidiaries.

 

2.6.                              “Change in Control”
means the occurrence after the Effective Date of any of the following events:

 

2.6.1.                     The acquisition by any
individual, entity or group (within the meaning of section 13(d)(3) or
14(d)(2) of the Exchange Act) (each, individually or collectively, a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of 30% or more of the combined voting power of the
then-outstanding voting securities of the Company entitled to vote generally in
the election of directors (the “Outstanding Company Voting Securities”);
provided, however, that, for purposes of this Section 2.6.1,
the following acquisitions shall not constitute a Change in Control: (1) any
acquisition directly from the Company, other than an 

 

 

acquisition
by virtue of the exercise of a conversion privilege unless the security being
so converted was itself acquired directly from the Company, (2) any
acquisition by the Company or any Subsidiary, (3) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any of its Subsidiaries, or (4) any Business Combination (as defined in
Section 2.6.3) pursuant to which all or substantially all of the
individuals and entities who are the beneficial owners of the Outstanding
Company Voting Securities immediately prior to such Business Combination will
beneficially own, directly or indirectly, more than 50% of the combined voting
power of the then outstanding voting securities entitled to vote generally in
the election of directors (or election of members of a comparable governing
body) of the surviving entity resulting from such Business Combination
(including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially
the same proportions as their ownership, immediately prior to such Business
Combination, of the Outstanding Company Voting Securities; or

 

2.6.2.                     Any time at which individuals
who, as of the Effective Date, constitute the Board (the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided,
however, that any individual becoming a director subsequent to the
Effective Date whose election, or nomination for election by the Company’s
shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board; or

 

2.6.3.                     Consummation of any
reorganization, merger, amalgamation, statutory share exchange or consolidation
or other similar corporate transaction involving the Company or a sale or other
disposition of all or substantially all, but in no event less than 40%, of the
assets of the Company (a “Business Combination”); excluding, however,
a Business Combination pursuant to which (A) all or substantially all of
the beneficial owners of Outstanding Company Voting Securities immediately
prior to such Business Combination will beneficially own, directly or
indirectly, more than 50% of the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors (or election
of members of a comparable governing body) of the surviving entity resulting
from such Business Combination (including, without limitation, a corporation
which as a result of such transaction owns the Company or all or substantially
all of the Company’s assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Company
Voting Securities; (B) no Person (other than the Company, any employee
benefit plan (or related trust) of the Company or such surviving entity
resulting from such Business Combination) will beneficially own, directly or
indirectly, 30% or more of the combined voting power of the outstanding voting
securities of such surviving entity entitled to vote generally in the election
of directors (or comparable governing body) except to the extent that such
ownership existed prior to the Business Combination; and (C) individuals
who were members of the Incumbent Board (including persons deemed to be members
of the Incumbent Board by reason of the proviso of Section 2.6.2) at the
time of the execution of the initial agreement or of the action of the Board
providing for such Business Combination will constitute at least a majority of
the members of the board of directors (or comparable governing body) of the
surviving entity resulting from such Business Combination; or

 

2.6.4.                     The approval by the
stockholders of the Company of a complete liquidation or dissolution of the
Company.

 

2

 

2.7.                              “Code” means the
Internal Revenue Code of 1986, as amended, and the regulations promulgated
thereunder.  A reference to any provision
of the Code or regulation promulgated thereunder shall include reference to any
successor provision of the Code or regulation.

 

2.8.                              “Common Stock” means
the Class A common stock of the Company, par value $0.01 per share, or
such other class or kind of shares or other securities resulting from the
application of Section 14.

 

2.9.                              “Company” means
B&G Foods, Inc., a Delaware corporation, or any successor corporation.

 

2.10.                        “Committee” means the
committee designated by the Board to administer the Plan under Section 4.  If no such committee has been established or
the Board determines it is necessary or advisable, then the Board shall perform
the duties of the Committee hereunder. 
If such a committee is established, the Committee shall have at least
two members and each member of the Committee shall be a Non-Employee Director
and an Outside Director.  Notwithstanding
the foregoing, the Board may designate one or more of its members to serve as a
Secondary Committee and delegate to the Secondary Committee authority to grant
Awards to eligible individuals who are not subject to the requirements of Rule 16b-3
under the Exchange Act or section 162(m) of the Code and the regulations
thereunder. The Secondary Committee shall have the same authority with respect
to selecting the individuals to whom such Awards are granted and establishing
the terms and conditions of such Awards as the Committee has under the terms of
the Plan.

 

2.11.                        “Consultant” means a
consultant, advisor or independent contractor retained by the Company or any of
its Subsidiaries.

 

2.12.                        “Covered Employee”
means an Employee who is a “covered employee” within the meaning of section 162(m) of
the Code, and the rules and regulations thereunder.

 

2.13.                        “Deferred Stock”
means Common Stock to be delivered at the end of a Deferral Period and awarded
by the Committee under Section 9 of the Plan.

 

2.14.                        “Deferral Period”
means the period during which the receipt of Deferred Stock under Section 9
of the Plan will be deferred.

 

2.15.                        “Director” means any
individual who is a member of the Board of Directors of the Company.

 

2.16.                        “Disability” means,
unless otherwise provided in an Award Agreement or an Employment Agreement to
which the Participant is a party, that the Participant is unable to engage in
any substantial gainful activity by reason of any medically determinable
physical or mental impairment that can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, or the
Participant is, by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months, receiving income
replacement benefits for a period of not less than three months under an
accident and health plan covering employees of the Company.

 

2.17.                        “Exchange Act” means
the Securities Exchange Act of 1934, as amended.  A reference to any provision of the Exchange
Act or rule promulgated under the Exchange Act shall include reference to
any successor provision or rule.

 

3

 

2.18.                        “Employee” means an
individual, including officers and directors, who is employed by the Company or
any of its Subsidiaries.

 

2.19.                        “Employment Agreement”
means any employment or consulting agreement, including without limitation, any
change in control, severance or other similar agreement, by and between the
Company or any of its Subsidiaries and a Participant, as such agreement is in
effect from time to time.

 

2.20.                        “Enhanced Income
Securities” or “EISs” means the Enhanced Income Securities of the
Company, each representing one share of the Company’s Class A common stock
and $7.15 principal amount of the Company’s 12% Senior Subordinated Notes due
2016.

 

2.21.                        “Fair Market Value”
means, on any given date, the closing price of a share of Common Stock on the
principal national securities exchange or quotation on which the Common Stock
is listed or quoted on such date or, if Common Stock was not traded on such
date, on the last preceding business day on which the Common Stock was traded.

 

2.22.                        “Incentive Stock Option”
means an Option or a portion thereof intended to meet the requirements of an
incentive stock option as defined in section 422 of the Code and designated as
an Incentive Stock Option.

 

2.23.                        “Negative Discretion”
means the discretion authorized by the Plan to be applied by the Committee in
determining the size of a Performance-Based Award for a Performance Period if,
in the Committee’s sole judgment, such application is appropriate. Negative
Discretion may only be used by the Committee to eliminate or reduce the size of
a Performance-Based Award. In no event shall any discretionary authority
granted to the Committee by the Plan, including, but not limited to Negative
Discretion, be used to: (a) grant Performance-Based Awards for a
Performance Period if the Performance Goals for such Performance Period have
not been attained; or (b) increase a Performance-Based Award above the
maximum amount payable under Sections 5.2 or 5.3 of the Plan.

 

2.24.                        “Non-Employee Director”
means a Director who meets the definition of a “non-employee director” under Rule 16b-3(b)(3) promulgated
by the Securities and Exchange Commission under the Exchange Act.

 

2.25.                        “Non-Qualified Option”
means an Option or a portion thereof not intended to be an Incentive Stock
Option and designated as a Non-Qualified Option.

 

2.26.                        “Option” means a
right to purchase a specified number of shares of Common Stock at a specified
price awarded by the Committee under Section 7 of the Plan.

 

2.27.                        “Outside Director”
means a Director who meets the definition of an “outside director” under
section 162(m) of the Code.

 

2.28.                        “Participant” means
any Employee, Non-Employee Director or Consultant who receives an Award.

 

2.29.                        “Performance Goal”
means a goal with respect to the Company, any of its Subsidiaries or affiliates
(or any business unit or brand of the Company, any of its Subsidiaries or
affiliates) that must be met by the end of the Performance Period specified by
the Committee based upon: (i) the price of the Common Stock, (ii) the
price of the Enhanced Income Securities, (iii) market share, 

 

4

 

(iv) revenue,
(v) earnings per share, (vi) return on equity, (vii) costs, (viii) cash
flow, (ix) excess or free cash flow, (x) return on total assets, (xi) return
on invested capital, (xii) return on net assets, (xiii) operating
income, (xiv) net income, (xv) consolidated earnings before or after
taxes (including, without limitation, EBITDA and adjusted EBITDA); (xvi) book
value per share of Common Stock; (xvii) expense management; (xviii) improvements
in capital structure; (xix) profitability; (xx) maintenance or
improvement of profit margins; or (xxi) any other financial or other
measurement deemed appropriate by the Committee, as it relates to the results
of operations or other measurable progress of the Company or any of its
Subsidiaries or affiliates (or any brand or business unit thereof).  The Committee shall have discretion to determine
the specific targets with respect to each of these categories of Performance
Goals.

 

2.30.                        “Performance-Based Awards”  means Awards that are based upon the
attainment of Performance Goals and that are granted in accordance with Section 13
in a manner designed to be deductible by the Company under section 162(m) of
the Code (or any successor section thereto).

 

2.31.                        “Performance Period”
means the period selected by the Committee during which the performance of the
Company, any Subsidiary or any brand or business unit thereof, or any individual
is measured for the purpose of determining the extent to which a Performance
Goal has been achieved.

 

2.32.                        “Performance Share Award”
means an award subject to such terms and conditions as are specified by the
Committee and which is granted to a Participant under Section 11.

 

2.33.                        “Permissible Payment
Event” means any of a Participant’s death, Disability, Separation from
Service, Change in Control, or specified date or fixed schedule (which
specified date or fixed schedule may be based upon the attainment of
Performance Goals) specified in an Award Agreement.

 

2.34.                        “Plan” means the
B&G Foods, Inc. 2008 Omnibus Incentive Compensation Plan herein set
forth, as amended from time to time.

 

2.35.                        “Restricted Stock”
means Common Stock awarded by the Committee under Section 6 of the Plan.

 

2.36.                        “Restriction Period”
means the period during which Restricted Stock awarded under Section 6 of
the Plan is subject to forfeiture.

 

2.37.                        “SAR” means a stock
appreciation right awarded by the Committee under Section 8 of the Plan.

 

2.38.                        “Separation from Service”
means a Participant’s termination of employment or other separation from
service, as applicable, with the Company and its Subsidiaries.

 

2.39.                        “Specified Employee”
means a Participant that is a “specified employee” within the meaning of the
section 409A of the Code and the regulations thereunder as of the date of such
Participant’s Separation from Service.

 

2.40.                        “Stock Unit” means a
right that is granted under Section 10 to receive either Common Stock or
cash equal to the Fair Market Value of a share of Common Stock.

 

5

 

2.41.                        “Subsidiary” means
any corporation (other than the Company), partnership, joint venture or other
business entity of which 50% or more of the outstanding voting power is
beneficially owned, directly or indirectly, by the Company.

 

2.42.                        “Ten Percent Shareholder”
means a person who on any given date owns, either directly or indirectly
(taking into account the attribution rules contained in section 424(d) of
the Code), stock possessing more than 10% of the total combined voting power of
all classes of stock of the Company or a Subsidiary.

 

3.                                      Eligibility.  All Employees,
Non-Employee Directors and Consultants are eligible to participate in the Plan.

 

4.                                      Administration and Implementation of Plan.

 

4.1.                              Administration by the
Committee.  The Plan
shall be administered by the Committee. 
Any action of the Committee in administering the Plan shall be final,
conclusive and binding on all persons, including the Company, its Subsidiaries,
their respective Employees, Participants, persons claiming rights from or
through Participants and stockholders of the Company.

 

4.2.                              Authority of the Committee.  The Committee shall have full discretionary
authority in all matters related to the discharge of its responsibilities and
the exercise of its authority under the Plan including, without limitation, its
construction of the terms of the Plan and its determination of eligibility for
participation and Awards under the Plan. 
Without limiting the generality of the immediately preceding sentence
and subject to the provisions of the Plan, the Committee shall have full and
final authority in its discretion (a) to select the Employees,
Non-Employee Directors and Consultants who will receive Awards pursuant to the
Plan, (b) to determine the type or types of Awards to be granted to each
Participant, (c) to determine the number of shares of Common Stock, if
any, to which an Award will relate, the terms and conditions of any Award
granted under the Plan (including, but not limited to, restrictions as to
vesting, transferability or forfeiture, exercisability or settlement of an
Award and waivers or accelerations thereof, and waivers of or modifications to
performance conditions relating to an Award, based in each case on such
considerations as the Committee shall determine) and all other matters to be
determined in connection with an Award; (d) to determine whether, to what
extent, and under what circumstances an Award may be canceled, forfeited, or
surrendered; (e) to determine whether, and to certify that, Performance
Goals to which the settlement of an Award is subject are satisfied; (f) to
correct any defect or supply any omission or reconcile any inconsistency in the
Plan, and to adopt, amend and rescind such rules and regulations as, in
its opinion, may be advisable in the administration of the Plan; (g) to
construe and interpret the Plan and to make all other determinations as it may
deem necessary or advisable for the administration of the Plan, and (h) to
establish any “blackout” period that the Committee in its sole discretion deems
necessary or advisable.

 

4.3.                              Additional Terms and
Conditions; Award Agreements.  The Committee may impose on any Award or the
exercise thereof, at the date of grant or thereafter, such terms and
conditions, not inconsistent with the provisions of the Plan, as the Committee
shall determine, including terms requiring forfeiture of Awards in the event of
the Participant’s Separation from Service with the Company or any Subsidiary; provided,
however, that the Committee shall retain full power to accelerate or
waive any such term or condition as it may have previously imposed (except that
the Committee may not accelerate the delivery of Deferred Stock).  All Awards shall be evidenced by an Award
Agreement.  The right of a Participant to
exercise or receive a grant or settlement of any Award, and the timing thereof,
may be subject to such Performance Goals as may be specified by the
Committee.  The conditions for grant or
vesting and the other provisions of Awards (including without limitation any
applicable Performance Goals) need not be the same with respect to each
Participant.

 

6

 

4.4.                              Action by the Committee.  The Committee may act at a meeting only by a
majority of its members.  Any
determination of the Committee may be made, without a meeting, by a writing or
writings signed by all of the members of the Committee. In addition, the
Committee may authorize any one or more of its members to execute and deliver
documents on behalf of the Committee.

 

4.5.                              Allocation and Delegation of
Authority.  The
Committee may allocate all or any portion of its responsibilities and powers
under the Plan to any one or more of its members, the Chief Executive Officer
of the Company or the Secondary Committee as the Committee deems appropriate
and may delegate all or any part of its responsibilities and powers to any such
person or persons, provided that any such allocation or delegation be in
writing; provided, however, that only the Committee may select
and grant Awards to Participants who are subject to section 16 of the Exchange
Act or are Covered Employees.  The
Committee may revoke any such allocation or delegation at any time for any
reason with or without prior notice.

 

4.6.                              Indemnification of the
Committee and the Board.  The
Company shall indemnify and hold harmless the members of the Committee and the
Board, from and against any and all liabilities, costs and expenses incurred by
such persons as a result of any act or omission to act in connection with the
performance of such person’s duties, responsibilities and obligations under the
Plan, to the maximum extent permitted by law, other than such liabilities,
costs and expenses as may result from the gross negligence, bad faith, willful
misconduct or criminal acts of such persons.

 

5.                                      Shares of Stock Subject to the Plan
and Maximum Awards

 

5.1.                              Number of Shares Available
for Awards.  Subject to
adjustment as provided in Section 14, the total number of shares of Common
Stock available for Awards under the Plan, whether pursuant to Incentive Stock
Options or otherwise, shall be 4,500,000 shares.

 

5.2.                              Annual Award Limit for
Options and SARS.  Subject to
adjustment as provided in Section 14, the maximum number of shares of
Common Stock available for Options or SARS that may be granted to any one
Participant shall not exceed 900,000 during any fiscal year.

 

5.3.                              Annual Award Limit for
Performance-Based Awards.  The
maximum amount of any Performance-Based Award that may be granted, paid,
credited or vested, as applicable, to any one Participant in any fiscal year in
the event the Performance-Based Awards is paid in shares of Common Stock shall
be, subject to adjustment as provided in Section 14, 400,000 shares of
Common Stock or, in the event the Performance-Based Award is paid in cash,
$2,000,000.

 

5.4.                              Forfeited or Terminated
Awards.  If any shares subject to an
Award are forfeited or such Award otherwise terminates or is settled for any
reason whatsoever without an actual distribution of shares to the Participant,
any shares counted against the number of shares available for issuance pursuant
to the Plan with respect to such Award shall, to the extent of any such
forfeiture, settlement or termination, again be available for Awards under the
Plan; provided, however, that the Committee may adopt procedures
for the counting of shares relating to any Award to ensure appropriate
counting, avoid double counting, and provide for adjustments in any case in
which the number of shares actually distributed differs from the number of
shares previously counted in connection with such Award.

 

5.5.                              Treasury Shares.  Any shares issued hereunder may consist, in
whole or in part, of authorized and unissued shares or treasury shares.

 

7

 

5.6.                              Corporate Transactions.  Any shares issued by the Company through the
assumption or substitution of outstanding grants in connection with the
acquisition of another entity shall not reduce the maximum number of shares
available for delivery under the Plan.

 

6.                                      Restricted Stock.  An Award of Restricted Stock is a grant by
the Company of a specified number of shares of Common Stock to the Participant,
which shares are subject to forfeiture upon the happening of specified
events.  Such an Award shall be subject
to the following terms and conditions:

 

6.1.                              Terms.  The Committee shall determine all of the
material terms of the Award of Restricted Stock, including, but not limited to,
the Restriction Period, the Performance Goals applicable, if any, and the
amount, if any, the Participant must pay to receive the Restricted Stock.

 

6.2.                              Restricted Stock Account.  Upon the Award of Restricted Stock, the
Committee shall direct that the number of shares of Common Stock subject to
such Award be placed in a restricted stock account with the transfer agent and
designating the Participant as the registered owner.  The shares shall be legended as to sale,
transfer, assignment, pledge or other encumbrances during the Restriction
Period.  The Participant shall sign a
stock power endorsed in blank to the Company to be held in escrow during the
Restriction Period.

 

6.3.                              Voting Rights.  During the Restriction Period, unless
otherwise determined by the Committee, the Participant shall have the right to
vote the shares of Restricted Stock.

 

6.4.                              Termination of the
Restriction Period.  Provided
that the Restricted Stock has not been previously forfeited, at the end of the
Restriction Period, provided that any Performance Goals or other criteria or
conditions set forth in the applicable Award Agreement have been satisfied, the
restrictions imposed under the Award Agreement shall lapse with respect to the
number of shares specified thereunder, and the legend imposed hereunder shall
be removed and such number of shares delivered to the Participant (or, where
appropriate, the Participant’s legal representative).

 

6.5.                              Tax Reimbursement.  In the sole discretion of the Committee, an
Award Agreement regarding Restricted Stock may provide for a tax reimbursement
cash payment to be made by the Company to any Participant in connection with
the tax consequences resulting from an Award of Restricted Stock, the lapse of
restrictions on any Restricted Stock or the payment by a Participant of any
taxes related thereto, subject to such conditions as the Committee may specify.

 

6.6.                              Separation from Service.  Except as otherwise provided by the Committee
in an Award Agreement, all Restricted Stock with respect to which the
Restriction Period has not expired shall be immediately forfeited upon a
Participant’s Separation from Service.

 

7.                                      Options.  Options give a
Participant the right to purchase a specified number of shares of Common Stock
from the Company for a specified time period at a fixed exercise price (“Exercise
Price”).  Options may be either
Incentive Stock Options or Non-Qualified Stock Options.  The Award Agreement for an Option shall
specify whether the Option is intended to be an Incentive Stock Option or a
Non-Incentive Stock Option.  The grant of
Options shall be subject to the following terms and conditions:

 

7.1.                              Exercise Price.  The price per share at which Common Stock may
be purchased upon exercise of an Option shall be determined by the Committee,
but shall be not less than (i) 110% of the Fair Market Value of a share of
Common Stock on the date of grant in the case of a grant to a 

 

8

 

Ten
Percent Stockholder, or (ii) 100% of the Fair Market Value of a share of
Common Stock on the date of grant in the case of a grant to any other
Participant, unless in either case the Option was granted through the
assumption of, or in substitution for, outstanding awards previously granted by
an entity acquired by the Company or any Subsidiary or with which the Company
or any Subsidiary combines.

 

7.2.                              Option Term.  The term of an Option shall in no event be
greater than ten years (five years in the case of an Incentive Stock Option
granted to a Ten Percent Shareholder).

 

7.3.                              Vesting.  Except as otherwise provided by the Committee
in an Award Agreement, 25% of an Option shall become vested and exercisable on
each of the first, second, third and fourth anniversaries of the grant date of
such Option.

 

7.4.                              Incentive Stock Options.  Each provision of the Plan and each Award
Agreement relating to an Incentive Stock Option shall be construed so that each
Incentive Stock Option shall be an incentive stock option as defined in section
422 of the Code, and any provisions of an Award Agreement that cannot be so
construed shall be disregarded.  In no
event may a Participant be granted an Incentive Stock Option which does not
comply with the grant and vesting limitations prescribed by section 422(b) of
the Code.  Incentive Stock Options may
only be granted to Employees.  Incentive
Stock Options may not be granted to Non-Employee Directors or Consultants.

 

7.5.                              Method of Exercise.  The Exercise Price of the shares of Common
Stock received upon the exercise of an Option shall be paid within three days
of the date of exercise: (a) in cash, (b) with the proceeds received
from a broker-dealer whom the Participant has authorized to sell all or a
portion of the Common Stock covered by the Option, (c) with the consent of
the Committee in an Award Agreement, in whole or in part in Common Stock held
by the Participant and valued at Fair Market Value on the date of exercise, or (d) with
the consent of the Committee in an Award Agreement or otherwise, by requesting
the Company withhold a number of shares of Common Stock having a Fair Market
Value on the date of exercise equal to the product of (i) the Exercise
Price multiplied by (ii) the number of shares of Common Stock in respect
of which the Option is being exercised. 
With the consent of the Committee, payment upon the exercise of a
Non-Qualified Option may be made in whole or in part by Restricted Stock held
by the Participant and valued at Fair Market Value on the date the Option is
exercised.  In such case, the Common
Stock to which the Option relates shall be subject to the same forfeiture
restrictions originally imposed on the Restricted Stock exchanged
therefor.  An Option may be exercised
only for a whole number of shares of Common Stock.  If a Participant is permitted to pay the exercise
price of an Option or taxes relating to the exercise of an Option by delivering
shares of Common Stock, the Participant may, subject to procedures satisfactory
to the Committee, satisfy such delivery requirement by presenting proof of
beneficial ownership of such shares of Common Stock, in which case the Company
shall treat the Option as exercised without further payment and shall withhold
such number of shares of Common Stock from the shares of Common Stock acquired
by the exercise of the Option.

 

7.6.                              Separation from Service.  Except as otherwise provided by the Committee
in an Award Agreement:

 

7.6.1.                     If the Participant has a
Separation from Service due to retirement, Disability or death, the unexercised
and vested portion of the Option will remain exercisable by the Participant or
his or her successors, as the case may be, until the earlier of the end of the
180-day period immediately following the Participant’s Separation from Service
or the last day of the term of the Option. 
Such portion of the Option shall terminate to the extent not exercised
within such 180-day period.  Any unvested
portion of the Option will immediately terminate and be forfeited upon such
Separation from Service.

 

9

 

7.6.2.                     If the Participant has a
Separation from Service due to a termination by the Company for Cause, the
Option will immediately expire on the date of such Separation from Service.

 

7.6.3.                     If the Participant has a
Separation from Service as a result of any reason other than retirement,
Disability, death or for Cause, any unexercised and vested portion of the
Option will remain exercisable until the earlier of the end of the 90-day
period immediately following such Separation from Service or the last day of
the term of the Option.  Such portion of
the Option shall terminate to the extent not exercised within such 90-day
period.  Any unvested portion of the
Option will terminate and will be forfeited upon such Separation from Service.

 

8.                                      Stock Appreciation Rights. 
SARs give the Participant the right to receive, upon exercise of the
SAR, the excess of (a) the Fair Market Value of one share of Common Stock
on the date of exercise over (b) the base price of the SAR as determined
by the Committee, but which may never be less than the Fair Market Value of a
share of Common Stock on the date of grant. 
The grant of SARs shall be subject to the following terms and
conditions:

 

8.1.                              SAR Term.  The term of a SAR shall in no event be
greater than ten years.

 

8.2.                              Terms and Conditions.  The Committee shall determine the time or
times at which a SAR may be exercised in whole or in part, the method of
exercise, the method of settlement, form of consideration payable in settlement
(whether in shares of Common Stock or cash), method by which Common Stock, if
applicable, shall be delivered or deemed to be delivered to Participants,
whether or not a SAR shall be in tandem with any other Award, and any other
terms and conditions of any SAR.

 

8.3.                              Vesting.  Except as otherwise provided by the Committee
in an Award Agreement, 25% of a SAR shall become vested and exercisable on each
of the first, second, third and fourth anniversaries of the grant date of such
SAR.

 

8.4.                              Separation from Service.  Except as otherwise provided by the Committee
in an Award Agreement:

 

8.4.1.                     If the Participant has a
Separation from Service due to retirement, Disability or death, the unexercised
and vested portion of the SAR will remain exercisable by the Participant or his
or her successors, as the case may be, until the earlier of the end of the
180-day period immediately following the Participant’s Separation from Service
or the last day of the term of the SAR. 
Such portion of the SAR shall terminate to the extent not exercised
within such 180-day period.  Any unvested
portion of the SAR will immediately terminate and be forfeited upon such
Separation from Service.

 

8.4.2.                     If the Participant has a
Separation from Service due to a termination by the Company for Cause, the SAR
will immediately expire on the date of such Separation from Service.

 

8.4.3.                     If the Participant has a
Separation from Service as a result of any reason other than retirement,
Disability, death or for Cause, any unexercised and vested portion of the SAR
will remain exercisable until the earlier of the end of the 90-day period
immediately following such Separation from Service or the last day of the term
of the SAR.  Such portion of the SAR
shall terminate 

 

10

 

to
the extent not exercised within such 90-day period.  Any unvested portion of the SAR will
terminate and will be forfeited upon such Separation from Service.

 

9.                                      Deferred Stock.  An Award of
Deferred Stock is an agreement by the Company to deliver to the Participant a
specified number of shares of Common Stock at the end of a specified Deferral
Period or Periods.  Such an Award shall
be subject to the following terms and conditions:

 

9.1.                              Terms and Conditions.  Upon the Award of Deferred Stock, the
Committee shall direct that the number of shares subject to such Award be
credited to the Participant’s account on the books of the Company but that
issuance and delivery of the same shall be deferred until the occurrence of a
Permissible Payment Event specified in an Award Agreement.  In no event shall the delivery of such
Deferred Stock be accelerated if to do so would subject the Participant to an
additional tax pursuant to section 409A of the Code.  Prior to issuance and delivery of the
Deferred Stock, the Participant shall have no rights as a stockholder with
respect to any shares of Deferred Stock credited to the Participant’s account.

 

9.2.                              Deferral Period Installments.  The Deferral Period may consist of one or
more installments.  Provided that the
Deferred Stock has not been previously forfeited, at the end of the Deferral
Period or any installment thereof the shares of Deferred Stock applicable to
such installment, shall be issued and delivered to the Participant (or, where
appropriate, the Participant’s legal representative) in accordance with the
terms of the Award Agreement.

 

9.3.                              Separation from Service.  Except as otherwise provided by the Committee
in an Award Agreement, all Deferred Stock with respect to which the Deferral
Period has not expired shall be immediately forfeited upon a Participant’s
Separation from Service.

 

10.                               Stock Units.  Stock
Units are Awards that represent the right of the grantee to receive a payment
upon a Permissible Payment Event specified by the Committee in an Award
Agreement equal to the Fair Market Value of a specified number of shares of
Common Stock as of the date of grant, vesting date, Permissible Payment Event
date or such other date set forth in an Award Agreement.  Stock Units shall be subject to the following
terms and conditions:

 

10.1.                        Terms and Conditions.  The Committee may condition the vesting of
Stock Units upon the attainment of a Performance Goal or upon the continued
service of the Participant.  The
Committee may provide in an Award Agreement a limitation on the amount payable
in respect of each Stock Unit and/or for the settlement of Stock Units in cash
or with Common Stock having a Fair Market Value equal to the payment to which
the grantee has become entitled.  In no
event shall the payment of Stock Units be accelerated if to do so would subject
the Participant to an additional tax pursuant to section 409A of the Code.

 

10.2.                        Stock Unit Restriction
Period.  Subject to the provisions of
the Plan and the applicable Award Agreement, during the period, if any, set by
the Committee, commencing with the date of such Stock Unit Award for which such
Participant’s continued service is required (the “Stock Unit Restriction
Period”), and until the later of (A) the expiration of the Stock Unit
Restriction Period and (B) the date the applicable Performance Goals (if
any) are satisfied, the Participant shall not be permitted to sell, assign,
transfer, pledge or otherwise encumber Stock Units.

 

10.3.                        Separation from Service.  Except as otherwise provided by the Committee
in an Award Agreement, all Stock Units that are unvested upon a Participant’s
Separation from Service shall be immediately forfeited upon such Participant’s
Separation from Service.

 

11

 

11.                               Performance Share Awards.  A Performance Share Award is an Award
entitling the recipient to receive shares of Common Stock upon a Permissible
Payment Event, including, without limitation, the attainment of Performance
Goals during a Performance Period as specified in the Award Agreement.  Performance Share Awards shall be subject to
the following terms and conditions:

 

11.1.                        Terms and Conditions.  The Committee in its sole discretion shall
determine whether and to whom Performance Share Awards shall be made, the
Performance Goals applicable under each such Award, the Performance Periods,
the price, if any, to be paid by the Participant for such Performance Shares
upon the achievement of the Performance Goals, and all other limitations and
conditions applicable to the Performance Share Awards.  In no event shall the payment of a
Performance Share Award be accelerated if to do so would subject the
Participant to an additional tax pursuant to section 409A of the Code.

 

11.2.                        Rights as a Stockholder.  A Participant receiving a Performance Share
Award shall have the rights of a stockholder only as to shares of Common Stock
actually received by the Participant upon satisfaction of all conditions
specified in the Award Agreement evidencing the Performance Share Award and not
with respect to shares subject to the Award but not actually received by the
Participant.

 

11.3.                        Separation from Service.  Except as otherwise provided by the Committee
in an Award Agreement, all Performance
Share Awards that are unvested upon a Participant’s Separation from
Service shall be immediately forfeited upon such Participant’s Separation from
Service.

 

12.                               Cash-Based Awards.

 

12.1.                        Terms and Conditions.  The
Committee, in its sole discretion, may grant Awards to Participants denominated
in cash in such amounts and subject to such terms and conditions as the
Committee may determine, including, but not limited to, vesting
conditions.  Each such Cash-Based Award
shall specify a payment amount, payment formula or payment range as determined
by the Committee.  The Award Agreement shall
set forth the Permissible Payment Event on which the Cash-Based Award shall be
settled.  In no event shall the
payment of a Cash-Based Award be accelerated if to do so would subject the
Participant to an additional tax pursuant to section 409A of the Code.

 

12.2.                        Separation from Service.  Except as otherwise provided by the Committee
in an Award Agreement, all Cash-Based Awards that are unvested upon a
Participant’s Separation from Service shall be immediately forfeited upon such
Participant’s Separation from Service.

 

13.                               Performance-Based Awards.

 

13.1.                        General.  The purpose of this Section 13 is to
provide the Committee the ability to design any Award so that the amounts or
shares payable or distributed pursuant to such Award qualify as “performance-based
compensation” under section 162(m) of the Code.  For purposes of Performance-Based Awards
granted to Covered Employees, the provisions of this Section 13 shall
apply in addition to and, where necessary, in lieu of the provisions of the
other provisions of this Plan.  Only
Covered Employees shall be subject to the restrictions contained in this Section 13
and only with respect to Awards intended to be Performance-Based Awards.

 

13.2.                        Establishment of Performance
Goals for Covered Employees.  The Committee will, in its sole discretion,
designate within the earlier of the (a) first 90 days of a Performance
Period and (b) lapse of 25% of the period of service to which the
Performance Goals relate, which 

 

12

 

Covered
Employees will be Participants for such period. However, designation of a
Covered Employee as a Participant for a Performance Period shall not in any
manner entitle the Participant to receive an Award for the period. The
determination as to whether or not such Participant becomes entitled to an
Award for such Performance Period shall be decided solely in accordance with
the provisions of this Section 13. 
Moreover, designation of a Covered Employee as a Participant for a
particular Performance Period shall not require designation of such Covered
Employee as a Participant in any subsequent Performance Period and designation
of one Covered Employee as a Participant shall not require designation of any
other Covered Employee as a Participant in such period or in any other period.

 

13.3.                        Discretion of Committee with
Respect to Performance-Based Awards.  With regards to a particular Performance
Period, the Committee shall have full discretion to select the length of such
Performance Period, the types of Awards to be issued, the kinds and/or levels
of the Performance Goals, whether the Performance Goals are to apply to the
Company or any one or more subunits thereof. Within the earlier of (a) the
first 90 days of a Performance Period and (b) the lapse of 25% of the
period of service, and in any event while the outcome is substantially
uncertain, the Committee shall, with regards to the Performance-Based Awards to
be issued for such Performance Period, exercise its discretion with respect to
each of the matters enumerated in the immediately preceding sentence of this Section and
record the same in writing.

 

13.4.                        Conditions to Receipt of
Performance-Based Awards. 
Except as otherwise provided in such Participant’s Employment Agreement,
a Participant shall be eligible to receive a Performance-Based Award for a
Performance Period only to the extent that the Performance Goals for such
period are achieved.  In addition, unless
otherwise provided in the relevant Award Agreement or Employment Agreement, a
Participant must be employed by the Company on the last day of a Performance
Period to be eligible for a Performance-Based Award for such Performance
Period.

 

13.5.                        Modification of Performance
Goals.  The Committee, in its sole
discretion, may modify the Performance Goals for Performance-Based Awards
applicable to a Performance Period, provided that such modification is made
only to reflect a change in the capitalization of the Company or a Subsidiary,
such as a stock split or dividend, or a corporate transaction, such as a
merger, any consolidation of the Company or a Subsidiary into another
corporation, any separation of the Company or a Subsidiary (including a spinoff
or other distribution of stock or property), any reorganization of a the
Company or a Subsidiary, or any partial or complete liquidation of the Company
or a Subsidiary.

 

13.6.                        Certification of
Performance; Negative Discretion.  Following the completion of a Performance
Period, the Committee shall meet to review and certify in writing whether, and
to what extent, the Performance Goals for the Performance Period have been
achieved and, if so, to also calculate and certify in writing the amount of the
Performance-Based Awards earned for the period. The Committee shall then
determine the actual size of each Participant’s Award for the Performance
Period and, in so doing, may apply Negative Discretion, if and when it deems
appropriate, to reduce or eliminate the amount of the Performance-Based Award
earned for the Performance Period through the use of Negative Discretion, if in
its sole judgment, such reduction or elimination is appropriate.

 

13.7.                        Timing of Performance-Based
Award Payments. 
Performance-Based Awards granted for a Performance Period shall be paid
to Participants as soon as administratively practicable following the
completion of the certifications required by Section 13.6.

 

13

 

14.                               Adjustments to Shares, Terms and Conditions and Performance Goals.

 

14.1.                        Adjustments to Shares.  In the event that the Committee shall
determine that any stock dividend, recapitalization, forward stock split or
reverse stock split, reorganization, division, merger, consolidation, spin-off,
combination, repurchase or share exchange, extraordinary or unusual cash distribution
or other similar corporate transaction or event, affects the Common Stock such
that an adjustment is appropriate in order to prevent dilution or enlargement
of the rights of Participants under the Plan, then the Committee shall, in an
equitable manner, adjust any or all of (i) the number and kind of shares
of Common Stock which may thereafter be issued in connection with Awards, (ii) the
number and kind of shares of Common Stock issuable in respect of outstanding
Awards, (iii) the aggregate number and kind of shares of Common Stock
available under the Plan, and (iv) the exercise or grant price relating to
any Award or, if deemed appropriate, make provision for a cash payment with
respect to any outstanding Award; provided, however, in each
case, that no adjustment shall be made that would cause the Plan to violate
section 422 of the Code with respect to Incentive Stock Options or that would
adversely affect the status of any Performance-Based Award.

 

14.2.                        Adjustments to Terms and
Conditions and Performance Goals.  In addition, the Committee is authorized to
make adjustments in the terms and conditions of, and the criteria included in,
Awards, including any Performance Goals, in recognition of any unforeseen
events or changes in circumstances, or in response to changes in applicable
laws, regulations, accounting principles or otherwise.  Notwithstanding the foregoing, no adjustment
shall be made in any outstanding Performance-Based Award to the extent that
such adjustment would adversely affect the status of the Award as a
Performance-Based Award.

 

15.                               Section 409A.

 

15.1.                        General.  To the extent determined necessary or
advisable by the Committee in its sole discretion, Awards hereunder shall be
interpreted to the extent possible to comply with the provisions of section
409A of the Code (or avoid application of such Code section), to the extent
applicable.  Participants shall be deemed
to consent to any changes to Awards that the Board determines are necessary or
advisable to comply with the provisions of section 409A of the Code.  Adjustments made pursuant to Section 14
shall, to the extent determined necessary or advisable in the sole discretion
of the Committee, be made in compliance with the requirements of section 409A
of the Code or, if applicable, to avoid application of section 409A of the
Code.

 

15.2.                        Specified Employees.
Notwithstanding anything set forth in the Plan or an Award Agreement to the
contrary, if any Award pursuant to Section 6, 9, 10, 11 or 12 that is
scheduled to be paid or delivered to a Participant that is a Specified Employee
upon such Participant’s Separation from Service would subject such Participant
to any tax, interest or penalty imposed under section 409A of the Code if such
Award were paid or delivered to such Participant within six months after such
Separation from Service, then such Award shall not be paid or delivered to such
Participant until the date which is six months and one day after the date of
Participant’s Separation from Service or, if earlier, the date of Participant’s
death following such Separation from Service (the “Delayed Payment Date”).
All such amounts that would, but for this Section 15.2, become payable or
deliverable prior to the Delayed Payment Date will be accumulated and paid on
the Delayed Payment Date without interest.

 

16.                               Dividends and Dividend Equivalents.

 

16.1.                        General.  If an Award is granted in the form of
Restricted Stock, Deferred Stock, Stock Units or Performance Share Awards, the
Committee may choose, at the time of the 

 

14

 

grant
of the Award or any time thereafter up to the time of the Award’s payment, to
include as part of such Award an entitlement to receive dividends or dividend
equivalents, subject to such terms, conditions, restrictions and/or
limitations, if any, as the Committee may establish.  Dividends and dividend equivalents shall be
paid in such form and manner (i.e., lump sum or installments), and at such time(s) as
the Committee shall determine in the Award Agreement.  The Award Agreement may provide, in the
Committee’s discretion, that dividends or dividend equivalents that are not
paid currently accrue interest, be reinvested into additional shares of Common
Stock or be credited as additional Restricted Stock, Deferred Stock, Stock
Units or Performance Shares and paid to the Participant if and when, and to the
extent that, payment is made pursuant to such Award.

 

16.2.                        Reinvestment of Dividends.  Reinvestment of dividends paid in accordance
with Section 16.1 in additional Awards payable in Common Stock shall only
be permissible if sufficient shares of Common Stock are available for such
reinvestment or payment (taking into account then outstanding Awards).  In the event that sufficient shares of Common
Stock are not available for such reinvestment or payment, such reinvestment or
payment shall, as set forth in the Award Agreement, be either payable
immediately in cash or made in the form of a grant of Stock Units equal in
number to the shares that would have been obtained by such payment or
reinvestment, the terms of which Stock Units shall provide for settlement in
cash and for dividend equivalent reinvestment in further Stock Units.

 

17.                               Change in Control.

 

17.1.                        Full Vesting.  Except to the extent the Committee
specifically establishes otherwise in an Award Agreement, immediately upon the
occurrence of a Change in Control:  (a) any
Options and SARs outstanding which are not then exercisable and vested shall
become fully exercisable and vested; (b) the Restriction Period applicable
to any Restricted Stock shall lapse; (c) the Deferral Period applicable to
any Deferred Stock shall lapse; (d) all Stock Units, Performance Share
Awards and Cash-Based Awards shall vest in full and any conditions applicable
thereto shall be deemed satisfied; (e) all Performance Goals applicable to
any Award shall be deemed to have been met at 100% of target; and (f) the
Committee may also make additional adjustments and/or settlements of
outstanding Awards as it deems appropriate and consistent with the Plan’s
purposes.

 

17.2.                        Options and SARs.                                         With respect to
all Options or SARs that are unexercised and outstanding upon a Change in
Control, the Committee may, in its sole discretion in an Award Agreement or
otherwise, provide for one or more of the following:

 

17.2.1.               such Options or SARs shall be cancelled in
exchange for a cash payment in an amount equal to the excess, if any, of the
Fair Market Value of the Common Stock underlying an Option or SAR (to the
extent such Option or SAR is exercisable at such time) as of the date of the
Change of Control over the Exercise Price of the Option or SAR.  If the Fair Market Value of the Common Stock
underlying an Option or SAR does not exceed the Exercise Price, then the Option
or SAR may be cancelled without any payment; and/or

 

17.2.2.               such Options or SARs shall be terminated
immediately prior to the Change of Control, if the Participant fails to
exercise the Option or SAR (to the extent such Option or SAR is exercisable at
such time) within a specified period (of at least seven days) following the
Participant’s receipt of a written notice of such Change of Control and of the
Company’s intention to terminate the Option or SAR prior to such Change of
Control; and/or

 

17.2.3.               such Options or SARs shall be assumed by the
successor corporation, and shall be substituted with options involving the
common stock of the successor 

 

15

 

corporation
with equivalent value and with terms and conditions substantially similar to
those Options or SARs granted by the Company.

 

17.3.                        Restricted Stock, Deferred
Stock, Stock Units or Performance Share Awards.  With respect to Restricted Stock, Deferred
Stock, Stock Units or Performance Share Awards, the Committee may, upon a
Change in Control, in its sole discretion in an Award Agreement or otherwise,
provide for one or more of the following:

 

17.3.1.               such Award shall be cancelled in exchange for
a payment in cash or Common Stock in an amount equal to the Fair Market Value
of the applicable Award; and/or

 

17.3.2.               such Award shall be assumed by the successor
corporation, and shall be substituted with a similar award involving the common
stock of the successor corporation with equivalent value and with terms and
conditions substantially similar to the applicable Award awarded by the
Company.

 

17.4.                        Cash-Based Awards.  With respect to Cash-Based Awards, the
Committee may, upon a Change in Control, in its sole discretion in an Award
Agreement or otherwise, provide for one or more of the following:

 

17.4.1.               all or a portion of the Cash-Based Award
shall be settled in an amount to be determined by the Committee in its sole
discretion; provided, that notwithstanding anything in the Plan to the
contrary, the Committee may determine, in its sole discretion, the portion of
any Cash-Based Award that is a Performance-Based Award to be settled and/or
payable; and/or

 

17.4.2.               such Cash-Based Award shall be assumed by the
successor corporation, and shall be substituted with a cash-based award with
equivalent value and with terms and conditions that are substantially similar
to those of the substituted Cash-Based Award awarded by the Company.

 

18.                               Amendment and Termination.

 

18.1.                        Amendment and Termination of
the Plan.  The Board
may amend, alter, suspend, discontinue, or terminate the Plan without the
consent of the Company’s stockholders or Participants, except that any such
amendment, alteration, suspension, discontinuation, or termination shall be
subject to the approval of the Company’s stockholders if (a) such action
would increase the number of shares subject to the Plan, (b) such action
results in the “repricing” of any Option or SAR otherwise than in accordance
with Section 14.1, or (c) such stockholder approval is required by
any federal or state law or regulation or the rules of any stock exchange
or automated quotation system on which the Common Stock may then be listed or
quoted; provided, however, that, subject to Section 15,
without the consent of an affected Participant, no amendment, alteration, suspension,
discontinuation, or termination of the Plan may materially and adversely affect
the rights of such Participant under any Award theretofore granted and any
Award Agreement relating thereto.

 

18.2.                        Amendment and Termination of
Awards.  The Committee may waive any
conditions or rights under, or amend, alter, suspend, discontinue, or
terminate, any Award theretofore granted and any Award Agreement relating
thereto; provided, however, that, subject to Section 18.4,
without the consent of an affected Participant, no such amendment, alteration,
suspension, discontinuation, or termination of any Award may materially and
adversely affect the rights of such Participant under such Award; provided,
further, however, that each Participant shall be deemed to have
consented to any amendments to an Award to the extent necessary for that Award
to satisfy Section 15.

 

16

 

18.3.                        Substitution of Awards.  The Committee may, without the consent of any
Participant, substitute any Award granted under the Plan which by its terms is
intended to be settled in shares of Common Stock for any other type of Award
intended to be settled in shares of Common Stock, including without limitation,
the substitution of SARs intended to be settled in shares of Common Stock for
Options; provided, however, that the terms of the substituted
Award and the economic benefit of the substituted Award are substantially
similar to the terms and economic benefit of the Award being replaced.

 

18.4.                        Performance Goals.  The foregoing notwithstanding, any
Performance Goal or other performance condition specified in connection with an
Award shall not be deemed a fixed contractual term, but shall remain subject to
adjustment by the Committee, in its discretion at any time in view of the
Committee’s assessment of the Company’s strategy, performance of comparable
companies, and other circumstances, except, with respect to Performance-Based
Awards, to the extent that any such adjustment to a performance condition would
adversely affect the status of such Award as a Performance-Based Award.

 

19.                               No Right to Employment or Service.  Neither the Plan nor any action taken
hereunder shall be construed as giving any Participant any right to be retained
in the employ or service of the Company or any Subsidiary.  For purposes of this Plan, transfer of
employment between the Company and its Subsidiaries shall not be deemed a
termination of employment or service, and, to the extent provided by the
Committee, change in status between an Employee, Consultant and/or Non-Employee
Director shall also not be deemed a termination of employment or service.

 

20.                               Taxes.

 

20.1.                        Withholding.  The Company or any Subsidiary is authorized
to withhold from any payment relating to an Award under the Plan, including
from a distribution of Common Stock or any payroll or other payment to a
Participant amounts of withholding and other taxes due in connection with any
transaction involving an Award, and to take such other action as the Committee
may deem advisable to enable the Company or the Subsidiary and Participants to
satisfy obligations for the payment of withholding taxes and other tax
obligations relating to any Award.  This
authority shall include authority to withhold or receive Common Stock or other
property and to make cash payments in respect thereof in satisfaction of a
Participant’s tax obligations, provided that in the event the Company withholds
or receives Common Stock or other property, the amounts withheld may not exceed
minimum statutory withholding requirements.

 

20.2.                        No Tax Advice or Guarantee
of Tax Consequences.  No person
connected with the Plan in any capacity, including, but not limited to, the
Company and its directors, officers, agents and employees, and the Committee,
makes any representation, commitment, or guarantee that any particular specific
or favorable tax treatment, including, but not limited to, federal, state and
local income, excise, estate and gift tax treatment, will be applicable with
respect to the tax treatment of any Award, or that such tax treatment will
apply to or be available to a Participant on account of participation in the
Plan.  All taxes are the responsibility
of the Participant, who should consult his or her tax advisor.

 

21.                               Limits on Transferability; Beneficiaries.  No Award or other right or
interest of a Participant under the Plan shall be pledged, encumbered, or
hypothecated to, or in favor of, or subject to any lien, obligation, or
liability of such Participant to, any party, other than the Company or any
Subsidiary, or assigned or transferred by such Participant otherwise than by
will or the laws of descent and distribution, and such Awards and rights shall
be exercisable during the lifetime of the Participant only by the Participant
or his or her guardian or legal representative. 
Notwithstanding the foregoing, the Committee may, in its discretion,
provide that Awards or other rights or interests of a Participant granted 

 

17

 

pursuant
to the Plan (other than an Incentive Stock Option) be transferable, without
consideration, to immediate family members (i.e., children, grandchildren or
spouse), to trusts for the benefit of such immediate family members and to
partnerships in which such family members are the only partners.  The Committee may attach to such
transferability feature such terms and conditions as it deems advisable.  In addition, a Participant may, in the manner
established by the Committee, designate a beneficiary (which may be a person or
a trust) to exercise the rights of the Participant, and to receive any
distribution, with respect to any Award upon the death of the Participant.  A beneficiary, guardian, legal representative
or other person claiming any rights under the Plan from or through any
Participant shall be subject to all terms and conditions of the Plan and any
Award Agreement applicable to such Participant, except as otherwise determined
by the Committee, and to any additional restrictions deemed necessary or
appropriate by the Committee.

 

22.                               Plan
is Unfunded.  It is
presently intended that the Plan constitute an “unfunded” plan for incentive
and deferred compensation. The Committee may authorize the creation of trusts
or other arrangements to meet the obligations created under the Plan to deliver
Common Stock or make payments; provided, however, that unless the
Committee otherwise determines, the existence of such trusts or other
arrangements is consistent with the “unfunded” status of the Plan.

 

23.                               No Rights to Awards; No Stockholder Rights.  No Participant shall have
any claim to be granted any Award under the Plan, and there is no obligation
for uniformity of treatment of Participants. 
No Award shall confer on any Participant any of the rights of a stockholder
of the Company unless and until Common Stock is duly issued or transferred to
the Participant in accordance with the terms of the Award.

 

24.                               Foreign Nationals.  Without amending the Plan, Awards may be
granted to Employees who are foreign nationals or employed outside the United
States or both, on such terms and conditions different from those specified in
the Plan as may, in the judgment of the Committee, be necessary or desirable to
further the purpose of the Plan and to comply with local law.

 

25.                               Securities Law Requirements.

 

25.1.                        No Award granted hereunder
shall be exercisable if the Company shall at any time determine that (a) the
listing upon any securities exchange, registration or qualification under any
state or federal law of any Common Stock otherwise deliverable upon such
exercise, or (b) the consent or approval of any regulatory body or the
satisfaction of withholding tax or other withholding liabilities, is necessary
or appropriate in connection with such exercise.  In any of the events referred to in clause (a) or
clause (b) above, the exercisability of such Awards shall be suspended and
shall not be effective unless and until such withholding, listing,
registration, qualifications or approval shall have been effected or obtained
free of any conditions not acceptable to the Company in its sole discretion,
notwithstanding any termination of any Award or any portion of any Award during
the period when exercisability has been suspended.

 

25.2.                        The Committee may require,
as a condition to the right to exercise any Award that the Company receive from
the Participant, at the time any such Award is exercised, vests or any
applicable restrictions lapse, representations, warranties and agreements to
the effect that the shares are being purchased or acquired by the Participant
for investment only and without any present intention to sell or otherwise
distribute such shares and that the Participant will not dispose of such shares
in transactions which, in the opinion of counsel to the Company, would violate
the registration provisions of the Securities Act of 1933, as then amended, and
the rules and regulations thereunder. 
Such shares shall bear appropriate legends summarizing such restrictions
on the disposition thereof.

 

18

 

26.                               Data
Protection. By participating in the Plan, the Participant
consents to the collection, processing, transmission and storage by the
Company, in any form whatsoever, of any data of a professional or personal
nature which is necessary for the purposes of administering the Plan

 

27.                               Termination; Rescission.  Unless the Plan shall theretofore have been
terminated, the Plan shall terminate on the 10-year anniversary of the
effective date, and no Awards under the Plan shall thereafter be granted.

 

28.                               Fractional Shares. 
The Company will not be required to issue any fractional shares of
Common Stock pursuant to the Plan.  The
Committee may provide for the elimination of fractions and for the settlement
of fractions in cash.

 

29.                               Governing Law.  To the extent
that Federal laws do not otherwise control, the validity and construction of
the Plan and any Award Agreement entered into thereunder shall be construed and
enforced in accordance with the laws of the State of Delaware, but without
giving effect to the choice of law principles thereof.

 

30.                               Effective Date; Shareholder Approval.  The Plan shall be effective on the date it is
adopted by the Board and approved by the shareholders.

 

19

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