Document:

Universal Corp 2002 Executive Stock Plan

  Exhibit 10.2
 UNIVERSAL CORPORATION
2002 EXECUTIVE STOCK PLAN

 Article I
 DEFINITIONS
 1.1.          Affiliate means any “subsidiary” or “parent corporation ” (within the meaning of Section 424 of the Code) of the Company. 
 

1.2.          Agreement means a written agreement (including any amendment or supplement thereto) between the Company
and a Participant specifying the terms and conditions of a Grant or an Award issued to such Participant.
 
 1.3.          Award means an award of Common Stock and/or Restricted Stock.
 
 1.4.          Board means the Board of Directors of the Company.
 
 1.5.          Change of Control means and shall be deemed to have taken place if: (i) any individual, entity or “group” (within the meaning of Sections 13(d)(3) or
14(d)(2) of the Exchange Act) becomes the beneficial owner of shares of the Company having 20 percent or more of the total number of votes that may be cast for the election of directors of the Company, other than (a) as a result of any acquisition
directly from the Company, or (b) as a result of any acquisition by any employee benefit plans (or related trusts) sponsored or maintained by the Company or its Subsidiaries; or (ii) there is a change in the composition of the Board such that the
individuals who, as of the date hereof, constitute the Board (the Board as of the date hereof shall be hereinafter referred to as the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided,
however, for purposes of this Section, that any individual who becomes a member of the Board subsequent to the date hereof whose election, or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority
of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; but, provided
further, that any such individual whose initial assumption of office occurs as a result of either an actual or threatened election contest (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under the Exchange Act) or other actual
or threatened solicitation of proxies or consents by or on behalf of a person other than the Board shall not be so considered as a member of the Incumbent Board; or (iii) if at any time, (w) the Company shall consolidate with, or merge with, any
other Person and the Company shall not be the continuing or surviving corporation, (x) any Person shall consolidate with, or merge with, the Company, and the Company shall be the continuing or surviving corporation and in connection therewith, all
or part of the outstanding Common Stock shall be changed into or exchanged for stock or other securities of any other person or cash or any other property, (y) the Company shall be a party to a statutory share exchange with any other Person after
which the Company is a Subsidiary of any other Person, or (z) the Company shall sell or otherwise transfer 50% or more of the assets or earning power of the Company and its Subsidiaries (taken as a whole) to any Person or Persons.
 1

   
 1.6.          Change of Control Date is the date on
which an event described in (i), (ii) or (iii) of Section 1.5 occurs.
 
 1.7.          Code means the
Internal Revenue Code of 1986, as amended from time to time. References to the Code shall include the valid and binding governmental regulations, court decisions and other regulatory and judicial authority issued or rendered thereunder.

 1.8.          Commission means the Securities and Exchange Commission or any successor agency.
 

1.9.          Committee means the Executive Compensation and Nominating Committee of the Board.
 

1.10.          Common Stock means the Common Stock of the Company.
 
 1.11.          Company means Universal Corporation.
 
 1.12.          Disability, with respect to a Participant, means “disability” as defined from time to time under any long-term disability plan
of the Company or Subsidiary with which the Participant is employed.
 
 1.13.          Exchange Act
means the Securities Exchange Act of 1934, as amended from time to time, and any successor thereto.
 
 1.14.          Fair Market Value means, on any given date, the closing price of a share of Common Stock as reported on the New York Stock Exchange composite tape on such day
or, if the Common Stock was not traded on the New York Stock Exchange on such day, then on the next preceding day that the Common Stock was traded on such exchange, all as reported by such source as the Committee may select.
 
 1.15.          Grant means the grant of an Option.
 
 1.16.          Incentive Stock Option means an Option that is intended to qualify as an “incentive stock option” under Section 422 of the
Code.
 
 1.17.          Non-Qualified Stock Option means an Option other than an Incentive Stock
Option.
 
 1.18.          Option means a stock option that entitles the holder to purchase from the
Company a stated number of shares of Common Stock at the price set forth in an Agreement.
 
 1.19.          Option Price means the price per share for Common Stock purchased on the exercise of an Option as provided in Article VI.
 
 1.20.          Participant means an officer, director or employee of the Company or of a Subsidiary who satisfies the
requirements of Article IV and is selected by the Committee to receive a Grant or an Award.
 
 1.21.          Plan means the Universal Corporation 2002 Executive Stock Plan.
 2

   
 1.22.          Prior Plans mean, collectively, the
Universal Corporation 1997 Executive Stock Plan and the Universal Corporation 1989 Executive Stock Plan.
 
 1.23.          Restricted Stock means shares of Common Stock awarded to a Participant under Article IX. Shares of Common Stock shall cease to be Restricted Stock when, in
accordance with the terms of the applicable Agreement, they become transferable and free of substantial risks of forfeiture.
 
 1.24.          Rule 16b-3 means Rule 16b-3, as promulgated by the Commission under Section 16(b) of the Exchange Act, as amended from time to time.
 
 1.25.          Securities Broker means the registered securities broker acceptable to the Company who agrees to effect the
cashless exercise of an Option pursuant to Section 8.4 hereof.
 
 1.26.          Subsidiary means any
corporation, partnership, joint venture or other entity during any period in which at least a 50% voting or profits interest is owned, directly or indirectly, by the Company (or by any entity that is a successor to the Company), and any other
business venture designated by the Committee in which the Company (or an entity that is a successor to the Company) has a significant interest, as determined in the discretion of the Committee.
 

 Article II
 PURPOSES
 The Plan is intended to assist the
Company in recruiting and retaining officers, directors and key employees with ability and initiative by enabling such persons who contribute significantly to the Company or an Affiliate to participate in its future success and to associate their
interests with those of the Company and its shareholders. The Plan is intended to permit the award of Common Stock and Restricted Stock, and the issuance of Options qualifying as Incentive Stock Options or Non-Qualified Stock Options as designated
by the Committee at time of grant. No Option that is intended to be an Incentive Stock Option, however, shall be invalid for failure to qualify as an Incentive Stock Option under Section 422 of the Code but shall be treated as a Non-Qualified Stock
Option.
 Article III
 ADMINISTRATION
 The Plan shall be administered by the Committee. No Person shall be appointed to or serve as a member of the Committee unless at the time of such appointment and service he shall be a “non-employee director”
as defined in Rule 16b-3, an “outside director” within the meaning of Section 162(m) of the Code, and an “independent director” within the meaning of any applicable listing requirement of the New York Stock Exchange applicable to
the Committee. The Committee shall have authority to issue Grants and Awards upon such terms (not inconsistent with the provisions of this Plan) as the Committee may consider appropriate.
 3

   
 The terms of such Grants and Awards may include conditions (in addition to those contained in this Plan) on (i) the exercisability of all or any
part of an Option and (ii) the transferability or forfeitability of Restricted Stock. In addition, the Committee shall have complete authority to interpret all provisions of this Plan; to prescribe the form of Agreements; to adopt, amend, and
rescind rules and regulations pertaining to the administration of the Plan; and to make all other determinations necessary or advisable for the administration of this Plan. To fulfill the purposes of the Plan without amending the Plan, the Committee
may also modify any Grants or Awards issued to Participants who are nonresident aliens or employed outside of the United States to recognize differences in local law, tax policy or custom.
 The express grant in the Plan of any specific power to the Committee shall not be construed as limiting any power or authority of the Committee. Any decision made, or action taken, by the Committee or in connection
with the administration of this Plan shall be final and conclusive. All expenses of administering this Plan shall be borne by the Company.
 Article IV
 ELIGIBILITY
 4.1.          General. Any
officer, director or employee of the Company or of any Subsidiary (including any corporation that becomes a Subsidiary after the adoption of this Plan) who, in the judgment of the Committee, has contributed significantly or can be expected to
contribute significantly to the profits or growth of the Company or a Subsidiary may receive one or more Awards or Grants, or any combination or type thereof. Employee and non-employee directors of the Company are eligible to participate in this
Plan.
 
 4.2.          Grants and Awards. The Committee will designate individuals to whom Grants
and/or Awards are to be issued and will specify the number of shares of Common Stock subject to each such Grant or Award. An Option may be granted alone or in addition to other Grants and/or Awards under the Plan. The Committee shall have the
authority to grant any Participant Incentive Stock Options, Non-Qualified Stock Options or both types of Options; provided, however, that Incentive Stock Options may be granted only to employees of the Company and its subsidiaries (within the
meaning of Section 424(f) of the Code). All Grants or Awards issued under this Plan shall be evidenced by Agreements which shall be subject to applicable provisions of this Plan and to such other provisions as the Committee may determine. No
Participant may be granted Options that are Incentive Stock Options (under all Incentive Stock Option plans of the Company and Affiliates) which are first exercisable in any calendar year for stock having an aggregate Fair Market Value (determined
as of the date an Option is granted) exceeding $100,000. A Participant may not receive Grants and Awards under this Plan with respect to more than 200,000 shares of Common Stock during any calendar year.
 
 4.3.          Reload Options. The Committee shall have the authority to specify at the time of Grant that an optionee
shall be granted the right to a further Non-Qualified Stock Option (a “Reload Option”) in the event such optionee exercises all or a part of an Option, including a Reload Option (an “Original Option”), by surrendering in
accordance with Section 8.2 hereof already owned shares of Common Stock in full or partial payment of the Option Price under such Original Option. Each Reload Option shall be granted on the date of exercise of the Original Option, shall cover a
number of shares of Common Stock not exceeding the whole number of shares of Common Stock surrendered in payment of the Option Price under such
 4

   
  Original Option, shall have an Option Price equal to the Fair Market Value on the date of Grant of such Reload Option, shall expire on the stated
expiration date of the Original Option and shall be subject to such other terms and conditions as the Committee may determine.
 4.4.          Designation of Option as an Incentive Stock Option or a Non-Qualified Stock Option. The Committee will designate at the time an Option is granted whether the
Option is to be treated as an Incentive Stock Option or a Non-Qualified Stock Option. In the absence, however, of any such designation, such Option shall be treated as a Non-Qualified Stock Option.
 
 4.5.          Qualification of Incentive Stock Option under Section 422 of the Code . Anything in the Plan to the
contrary notwithstanding, no term of the Plan relating to Incentive Stock Options shall be interpreted, amended or altered nor shall any discretion or authority granted under the Plan be exercised so as to disqualify the Plan under Section 422 of
the Code or, without the consent of the optionee affected, to disqualify any Incentive Stock Option under such Section 422. No Option that is intended to be an Incentive Stock Option, however, shall be invalid for failure to qualify as an Incentive
Stock Option under Section 422 of the Code but shall be treated as a Non-Qualified Stock Option.
 Article V
 STOCK SUBJECT TO PLAN
 Subject to the adjustment provisions of Article X and the provisions of (a) through (c) of this Article V, up to 2,000,000 shares of
Common Stock may be issued under the Plan. In addition to such authorization, the following shares of Common Stock may be issued under the Plan:
 
 (a)          Shares of Common Stock that are forfeited under the Prior Plans and shares of Common Stock that are not issued under the Prior Plans because of a payment of cash in lieu of
shares of Common Stock, the cancellation, termination or expiration of Grants and Awards, and/or other similar events under the Prior Plans shall be available for issuance under this Plan.
 
 (b)          If a Participant tenders, or has withheld, shares of Common Stock in payment of all or part of the Option
Price under an Option granted under the Plan, or in satisfaction of withholding tax obligations thereunder, the shares of Common Stock so tendered by the Participant or so withheld shall become available for issuance under the Plan.

 (c)          If shares of Common Stock that are issued under the Plan are subsequently forfeited in
accordance with the terms of the Grant or Award, the forfeited shares of Common Stock shall become available for issuance under the Plan.
 
 Notwithstanding (a)
above, any shares of Common Stock that are authorized to be issued under the Prior Plans prior to the expiration of its term, but that are not issued or covered by Grants or Awards under the Prior Plans, shall not be available for issuance under
this Plan.
 5

   
 Subject to the adjustment provisions of Article X, not more than 500,000 shares of Common Stock shall be issued under
this Plan pursuant to Awards of Common Stock and/or Restricted Stock.
 
 Subject to the foregoing provisions of this Article V, if a Grant or an Award may be paid
only in shares of Common Stock, or in either cash or shares of Common Stock, the shares of Common Stock shall be deemed to be issued hereunder only when and to the extent that payment is actually made in shares of Common Stock. However, the
Committee may authorize a cash payment under a Grant or an Award in lieu of shares of Common Stock if there are insufficient shares of Common Stock available for issuance under the Plan.
 Article VI
 OPTION PRICE
 The price per share for Common Stock purchased on the
exercise of an Option shall be fixed by the Committee, but shall not be less than the Fair Market Value on the date of grant.
 Article VII
 EXERCISE OF OPTIONS
 7.1.          Maximum Option Period. The period
in which an Option may be exercised shall be determined by the Committee on the date of grant; provided, however that an Incentive Stock Option shall not be exercisable after the expiration of 10 years from the date the Incentive Stock Option was
granted.
 
 7.2.          Non-Transferability. Non-Qualified Stock Options may be transferable by a
Participant and exercisable by a person other than a Participant, but only to the extent specifically provided in an Option Agreement. Incentive Stock Options, by their terms, shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable, during the Participant’s lifetime, only by the Participant. No right or interest of a Participant in any Option shall be liable for, or subject to, any lien, obligation or liability of such
Participant.
 
 7.3.          Employee Status. For purposes of determining the applicability of
Section 422 of the Code (relating to Incentive Stock Options), or in the event that the terms of any Grant provide that it may be exercised only during employment or within a specified period of time after termination of employment, the Committee
may decide to what extent leaves of absence for governmental or military service, illness, temporary Disability, or other reasons shall not be deemed interruptions of continuous employment.
 6

   
 Article VIII
 METHOD OF EXERCISE
 8.1.          Exercise. Subject to the provisions of Articles VII and XI, an Option may be exercised in whole at any time
or in part from time to time at such times and in compliance with such requirements as the Committee shall determine. An Option granted under this Plan may be exercised with respect to any number of whole shares less than the full number for which
the Option could be exercised. Such partial exercise of an Option shall not affect the right to exercise the Option from time to time in accordance with this Plan with respect to remaining shares subject to the Option.
 
 8.2.           Payment. Unless otherwise provided by the Agreement, payment of the Option Price shall be made in cash. If
the Agreement provides, payment of all or part of the Option Price may be made by surrendering (by either actual delivery or attestation) already owned shares of Common Stock to the Company and the payment of applicable withholding taxes may be made
by the Company withholding shares of Common Stock from the Participant upon exercise, provided the shares surrendered or withheld have a Fair Market Value (determined as of the day preceding the date of exercise) that is not less than such price or
part thereof and any such withholding taxes. In addition, the Committee may establish such payment or other terms as it may deem to be appropriate and consistent with these purposes.
 
 8.3.          Shareholder Rights. No participant shall have any rights as a shareholder with respect to shares subject to his Option until the date he
exercises such Option.
 
 8.4.          Cashless Exercise. To the extent permitted under the
applicable laws and regulations, at the request of the Participant and with the consent of the Committee, the Company agrees to cooperate in a “cashless exercise” of the Option. The cashless exercise shall be effected by the Participant
delivering to the Securities Broker instructions to exercise all or part of the Option, including instructions to sell a sufficient number of shares of Common Stock to cover the costs and expenses associated therewith. The Committee may permit a
Participant to elect to pay any applicable withholding taxes by requesting that the Company withhold the number of shares of Common Stock equivalent at current Fair Market Value to the withholding taxes due.
 
 8.5.          Cashing Out of Option.The Committee may elect to cash out all or part of the portion of any Option to be
exercised by paying the optionee an amount, in cash or Common Stock, equal to the excess of the Fair Market Value of the Common Stock that is the subject of the portion of the Option to be exercised over the Option Price times the number of shares
of Common Stock subject to the portion of the Option to be exercised on the effective date of such cash out.
 7

   
 Article IX
 COMMON STOCK AND RESTRICTED
STOCK
 9.1.          Award. In accordance with the provisions of Article IV, the Committee will
designate persons to whom an Award of Common Stock and/or Restricted Stock is to be made and will specify the number of shares of Common Stock covered by such Award or Awards.
 
 9.2.          Vesting. In the case of Restricted Stock, on the date of the Award, the Committee may prescribe that the Participant’s rights in the
Restricted Stock shall be forfeitable or otherwise restricted. Subject to the provisions of Article XI hereof, the Committee may award Common Stock to a Participant which is not forfeitable and is free of any restrictions on
transferability.
 
 9.3.          Shareholder Rights. Prior to their forfeiture in accordance with the
terms of the Agreement and while the shares are Restricted Stock, a Participant will have all rights of a shareholder with respect to Restricted Stock, including the right to receive dividends and vote the shares; provided, however, that (i) a
Participant may not sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of Restricted Stock, (ii) the Company shall retain custody of the certificates evidencing shares of Restricted Stock, and (iii) the Participant will deliver to
the Company a stock power, endorsed in blank, with respect to each award of Restricted Stock.
 Article X
 ADJUSTMENT UPON CHANGE IN COMMON STOCK
 Should the Company effect one or more (x) stock dividends, stock split-ups, subdivisions or consolidations of
shares or other similar changes in capitalization; (y) spin-offs, spin-outs, split-ups, split-offs, or other such distribution of assets to shareholders; or (z) direct or indirect assumptions and/or conversions of outstanding Options due to an
acquisition of the Company, then the maximum number of shares as to which Grants and Awards may be issued under this Plan shall be proportionately adjusted and their terms shall be adjusted as the Committee shall determine to be equitably required,
provided that the number of shares subject to any Grant or Award shall always be a whole number. Any determination made under this Article X by the Committee shall be final and conclusive.
 
 The issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, for cash or property or for labor or services, either upon direct sale or upon the exercise of
rights or warrants to subscribe therefor, or upon conversion of shares or obligations of the Company convertible into such shares or other securities, shall not affect, and no adjustment by reason thereof shall be made with respect to any Grant or
Award.
 8

   
 Article XI
 COMPLIANCE WITH LAW AND APPROVAL OF
REGULATORY BODIES
 No Grant shall be exercisable, no Common Stock shall be issued, no certificates for shares of Common Stock shall be delivered, and no payment shall
be made under this Plan except in compliance with all applicable federal and state laws and regulations (including, without limitation, withholding tax requirements) and the rules of all domestic stock exchanges on which the Company’s shares
may be listed. The Company may rely on an opinion of its counsel as to such compliance. Any share certificate issued to evidence Common Stock for which a Grant is exercised or an Award is issued may bear such legends and statements as the Committee
may deem advisable to assure compliance with federal and state laws and regulations. No Grant shall be exercisable, no Common Stock shall be issued, no certificate for shares shall be delivered, and no payment shall be made under this Plan until the
Company has obtained such consent or approval as the Committee may deem advisable from regulatory bodies having jurisdiction over such matters.
 Article XII
 GENERAL PROVISIONS
 12.1.          Effect on
Employment. Neither the adoption of this Plan, its operation, nor any documents describing or referring to this Plan (or any part thereof) shall confer upon any employee any right to continue in the employ of the Company or a Subsidiary or
in any way affect any right and power of the Company or a Subsidiary to terminate the employment of any employee at any time with or without assigning a reason therefor.
 
 12.2.          Unfunded Plan. The Plan, insofar as it provides for a Grant, is not required to be funded, and the Company shall not be required to segregate any assets that may
at any time be represented by a Grant under this Plan.
 
 12.3.          Change of Control.
Notwithstanding any other provision of the Plan to the contrary, in the event of a Change of Control:
 
 (a)          Unless otherwise provided by the Committee in an Agreement, any outstanding Option which is not presently exercisable and vested as of a Change of Control Date shall become
fully exercisable and vested to the full extent of the original Grant upon such Change of Control Date.
 
 (b)          Unless otherwise provided by the Committee in an Agreement, the restrictions applicable to any outstanding Restricted Stock shall lapse, and such Restricted Stock shall become
free of all restrictions and become fully vested, nonforfeitable and transferable to the full extent of the original Award. The Committee may also provide in an Agreement that a Participant may elect, by written notice to the Company within 60 days
after a Change of Control Date, to receive, in exchange for shares that were Restricted Stock immediately before the Change of Control Date, a cash payment equal to the Fair Market Value of the shares surrendered on the last business day the Common
Stock is traded on the New York Stock Exchange prior to receipt by the Company of such written notice.
 9

   
 (c)          The Committee may, in its complete discretion, cause the
acceleration or release of any and all restrictions or conditions related to a Grant or Award, in such manner, in the case of officers and directors of the Company who are subject to Section 16(b) of the Exchange Act, as to conform to the provisions
of Rule 16b-3.
 
 12.4.          Rules of Construction. Headings are given to the articles and
sections of this Plan solely for ease of reference and are not to be considered in construing the terms and conditions of the Plan. The reference to any statute, regulation, or other provision of law shall be construed to refer to any amendment to
or successor of such provision of law.
 
 12.5.          Rule 16b-3 Requirements. Notwithstanding any
other provisions of the Plan, the Committee may impose such conditions on any Grant or Award, and the Board may amend the Plan in any such respects, as they may determine, on the advice of counsel, are necessary or desirable to satisfy the
provisions of Rule 16b-3. Any provision of the Plan to the contrary notwithstanding, and except to the extent that the Committee determines otherwise: (a) transactions by and with respect to officers and directors of the Company who are subject to
Section 16(b) of the Exchange Act shall comply with any applicable conditions of Rule 16b-3; and (b) every provision of the Plan shall be administered, interpreted, and construed to carry out the foregoing provisions of this sentence.

 12.6.          Amendment, Modification, and Termination. At any time and from time to time, the Board may
terminate, amend, or modify the Plan. Such amendment or modification may be without shareholder approval except to the extent that such approval is required by the Code, pursuant to the rules under Section 16 of the Exchange Act, by any national
securities exchange or system on which the Common Stock is then listed or reported, by any regulatory body having jurisdiction with respect thereto, or under any other applicable laws, rules, or regulations. No termination, amendment, or
modification of the Plan, other than pursuant to Section 12.5 herein, shall in any manner adversely affect any Grant or Award theretofore issued under the Plan, without the written consent of the Participant. The Committee may amend the terms of any
Grant or Award theretofore issued under this Plan, prospectively or retrospectively, but no such amendment shall impair the rights of any Participant without the Participant’s written consent except an amendment provided for or contemplated in
the terms of the Grant or Award, an amendment made to cause the Plan, or Grant or Award, to qualify for the exemption provided by Rule 16b-3, or an amendment to make an adjustment under Article X. Except as provided in Article X, the Option Price of
any outstanding Option may not be adjusted or amended, whether through amendment, cancellation or replacement, unless such adjustment or amendment is approved by the shareholders of the Company.
 
 12.7.          Governing Law. The validity, construction and effect of the Plan and any actions taken or related to the Plan shall be determined in
accordance with the laws of the Commonwealth of Virginia and applicable federal law.
 
 12.8.          Successors and Assigns. All obligations of the Company under the Plan, with respect to Grants and Awards issued hereunder shall be binding on any successor to
the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company. The Plan shall be binding on all
successors and permitted assigns of a Participant, including, but not limited to, the estate of such Participant and the executor, administrator or trustee of such estate, and the guardians or legal representative of the Participant.
 10

   
 12.9.          Effect on Prior Plans and Other Compensation
Arrangements.  The adoption of this Plan shall have no effect on Grants and Awards made or to be made pursuant to the Prior Plans and the Company’s other compensation arrangements. Nothing contained in this Plan shall prevent the
Company from adopting other or additional compensation plans or arrangements for its officers, directors or employees.
 
 12.10.          Limitation of Implied Rights. Neither a Participant nor any other person shall, by reason of participation in the Plan, acquire any right in or title to
any assets, funds or property of the Company or any Subsidiary whatsoever, including, without limitation, any specific funds, assets, or other property which the Company or any Subsidiary, in its sole discretion, may set aside in anticipation of a
liability under the Plan. Except for those rights in Restricted Stock specifically set forth in subsection 9.3 hereof, a Participant shall have only a contractual right to the Stock or amounts if any, payable under the Plan, unsecured by any assets
of the Company or any Subsidiary, and nothing contained in the Plan shall constitute a guarantee that the assets of the Company or any Subsidiary shall be sufficient to pay any benefits to any person. The Plan does not constitute a contract of
employment, and selection as a Participant will not give any participating employee the right to be retained in the employ of the Company or any Subsidiary, nor any right or claim to any benefit under the Plan, unless such right or claim has
specifically accrued under the terms of the Plan. Except as otherwise provided in the Plan, no Award or Grant under the Plan shall confer upon the holder thereof any rights as a shareholder of the Company prior to the date on which the individual
fulfills all conditions for receipt of such rights.
 
 12.11.          Duration of Plan. No Grant or
Award may be issued under this Plan before July 1, 2002, or after June 30, 2012; provided, however, a Grant of a Reload Option may be issued after June 30, 2012, upon the exercise of an Original Option as provided in Section 4.3 hereof. Grants and
Awards issued on or after July 1, 2002, but on or before June 30, 2012, and Grants of Reload Options issued after June 30, 2012 upon the exercise of an Original Option as provided in Section 4.3 hereof, shall remain valid in accordance with their
terms.
 
 12.12.          Effective Date. This Plan has been approved by the Board, effective
as of July 1, 2002, subject, however, to approval by the shareholders of the Company entitled to vote at the 2002 Annual Meeting of the Shareholders.
 11Exhibit 4.1

  
 EXHIBIT 4.1 
  
 MODIFICATION TO AMENDED AND RESTATED SHAREHOLDERS AGREEMENT 
  
 THIS MODIFICATION TO AMENDED AND RESTATED SHAREHOLDERS AGREEMENT (this “Modification”) dated as of November 8, 2002, by and among NTELOS Inc. (formerly CFW Communications Company), a Virginia
corporation (the “Issuer”), WCAS Capital Partners III, L.P., a Delaware limited partnership (“WCAS Capital Partners”), Welsh, Carson, Anderson & Stowe VIII, L.P., a Delaware limited partnership (“WCAS
VIII”), Welsh, Carson, Anderson & Stowe IX, L.P., a Delaware limited partnership (together, with WCAS VIII and WCAS Capital Partners, “WCAS”), and each of the other Persons listed on the signature pages hereof. Except
as otherwise provided herein, all capitalized terms used herein (including in the recitals hereto) but not otherwise defined shall have the respective meanings ascribed to them in the Shareholders Agreement (as defined below). 

 
 WHEREAS, the parties hereto are certain of the parties to a Shareholders Agreement dated as of July 11, 2000, as amended
and restated as of July 26, 2000 and as further amended and restated October 23, 2000 (the “Shareholders Agreement”), and pursuant to Section 6.08 of the Shareholders Agreement, the parties desire that the Issuer waive certain
provisions of the Shareholders Agreement and set forth certain terms and conditions with respect to such waiver. 
  
 NOW, THEREFORE, the parties hereto agree as follows: 
  
 Article
I.    AGREEMENT AND MODIFICATION 
  
 Section
1.1.    Definitions:    For the purposes of this Modification, the following terms have the meanings set forth below: 
  
 “Approved Offer” means any Offer (a) which is approved by a majority of the independent directors (as that term is defined in Section
4200(a)(14) of the Marketplace Rules of the Nasdaq National Market), of the Board of Directors, (b) the terms and conditions of which do not treat any holder of WCAS Notes in a manner different than any holder of Non-WCAS Notes, (c) for which the
Issuer provides WCAS not less than five (5) Business Days written notice prior to commencement of the Offer and an opportunity to discuss with the Board of Directors and the Issuer’s management the Offer and its terms and conditions and any
agreements or documents to be prepared in connection with the Offer, (d) which is not made in connection with, or following, any proceeding relating to, the Issuer under any bankruptcy reorganization, arrangement, insolvency, readjustment of debt,
dissolution or liquidation under any law of any jurisdiction and (e) which is consummated in compliance with all applicable federal and state laws. 
  
 “Non-WCAS Notes” means all issued and outstanding Notes of the Issuer other than WCAS Notes. 

 

  
 “Notes” means the Issuer’s 13.0% Senior
Notes due 2010, issued pursuant to that certain Indenture by and between the Issuer and The Bank of New York, as Trustee, dated as of July 26, 2000. 
  
 “Offer” means any tender offer or exchange offer for all or a portion of the outstanding Notes commenced by the Issuer at any time during
the Standstill Waiver Period. 
  
 “Purchaser” means WCAS and/or any entity, or
collectively entities, controlled by WCAS. 
  
 “Standstill Waiver Period” means that
period commencing on the date hereof and terminating on the earlier of (a) March 1, 2003 or (b) in the event the Issuer commences an Approved Offer, the date of termination of such Approved Offer. 
  
 “WCAS Notes” means all issued and outstanding Notes of the Issuer which are held by any Purchaser.

  
 Section 1.2.    Restrictions on Transfer During the Standstill Waiver
Period.    During the continuation of the Standstill Waiver Period, no Purchaser will Transfer any WCAS Notes other than to (i) the Issuer or (ii) any other Purchaser or any Affiliate of any Purchaser unless such transferee
agrees in writing to tender or exchange, as the case may be, such Notes to the Issuer in connection with any Approved Offer, in the manner, and on the same terms as set forth in Section 1.4 of this Modification, as though such Transferred
WCAS Notes continued to be held by such Purchaser. 
  
 Section 1.3.    Waiver of
Standstill.    Notwithstanding Section 5.01 of the Shareholders Agreement and subject to Section 1.4 of this Modification, during the Standstill Waiver Period the Issuer agrees that WCAS may, and may cause any other Purchaser
to, directly or indirectly (i) purchase or otherwise acquire, or agree or offer to purchase or otherwise acquire, ownership (including, without limitation, beneficial ownership) of any Notes, any direct or indirect rights or options to acquire
Notes, in each case without the Issuer’s prior written consent; (ii) enter into any discussions, negotiations, arrangements or understandings with any third party with respect to any of the foregoing; or (iii) participate in any effort to do
any of the foregoing or make any public announcement that complies with Section 1.6 hereof with respect to the foregoing. This Section 1.3 shall not create any obligation on the part of WCAS or any other Purchaser to acquire any Notes or take
any other action permitted by this Section 1.3 and the determination of whether to acquire any Notes or take any other action permitted by this Section 1.3 shall be made by WCAS and such other Purchasers in their respective sole
discretion. 
  
 Section 1.4.    Tender by Purchasers in the Event of an Approved
Offer.    In the event the Issuer commences an Approved Offer during the Standstill Waiver Period for any or all of the Notes then outstanding, WCAS hereby agrees to validly tender or exchange, as the case may be, and not
withdraw, in connection with and upon the terms of the Approved Offer: 
  
 (a) if the Approved Offer is for all
outstanding Notes, that percentage of WCAS Notes which equals the percentage obtained by dividing (i) the aggregate principal amount of 

 
 -2- 

  
 Non-WCAS Notes validly tendered in the Approved Offer and not withdrawn by (ii) the aggregate principal
amount of Non-WCAS Notes outstanding as of the date immediately prior to the date of expiration of such Approved Offer (such percentage being the “Required Amount”); provided, however, that the obligation of any Purchaser to
validly tender or exchange, as the case may be, and not withdraw WCAS Notes as contemplated by this Section 1.4(a) is contingent on, as of the date immediately prior to the date of expiration of such Approved Offer, the valid tender or
exchange, as the case may be (without the valid withdrawal), of not less than 662/3% of the Non-WCAS Notes in such Approved Offer. 
  
 (b) if the Approved Offer is an Offer for less than all of the outstanding Notes (the percentage of Notes being subject to such Approved Offer being the “Approved
Offer Percentage”), that percentage of WCAS Notes which equals the Required Amount; provided, however, that the obligation of WCAS to validly tender or exchange, as the case may be, and not withdraw WCAS Notes in the Approved Offer
pursuant to this Section 1.4(b) is contingent on, as of the date immediately prior to the date of expiration of such Approved Offer, the valid tender or exchange, as the case may be (without the valid withdrawal) of a percentage of the
Non-WCAS Notes in such Approved Offer equal to not less than (x) 662/3%, multiplied by (y) the Approved Offer Percentage. For example, if the Issuer commences an Approved Offer for 50% of the Notes then
outstanding, the Purchasers shall collectively tender in the aggregate at least that percentage of WCAS Notes which equals the Required Amount if not less than (x) 662/3%,
multiplied by (y) 50% (i.e., 331/3%) of the Non-WCAS Notes are validly tendered or exchanged in the Approved Offer and not validly withdrawn. 
  
 (c) WCAS’ obligation pursuant to Section 1.4(a) and Section 1.4(b) above to validly tender or exchange, as the case maybe, and not
withdraw the WCAS Notes in connection with and upon the terms of such Approved Offer, shall automatically terminate and be of no further force and effect upon the earlier of (i) the date of termination of such Approved Offer and (ii) March 1, 2003.

  
 Section 1.5.    Other Interests and Rights.    Other than
as specifically set forth herein, the execution of this Modification by each of the parties to this Modification, and the consent to the waivers to the Shareholders Agreement contemplated by this Modification, shall in no way impact, limit, alter,
modify or compromise any of the interests, rights or remedies of any of the parties to the Shareholders Agreement, with respect to the Issuer any of its Affiliates or any securities of the Issuer or any of its Affiliates. 
  
 Section 1.6.    Public Announcements.    Any public statement or disclosure of this
Modification, the subject matter hereof or the transactions contemplated hereby shall be in a form and substance mutually agreed upon by the Issuer and WCAS, unless such public statement or disclosure is required by applicable law or governmental
regulations or by order of a court of competent jurisdiction, in which case prior to making such public statement or disclosure the Issuer and WCAS shall give written notice to the non-disclosing party describing in reasonable detail the proposed
content of such disclosure and the parties shall each use commercially reasonable efforts to agree on such public statement or disclosure prior to such disclosure. Except as provided in this Section 1.6 no party to this Modification shall
make any public statement or disclosure regarding this Modification, the subject matter hereof or the transactions contemplated hereby, publicly or in a manner which could reasonably be expected to result in its 

 
 -3- 

  
 public dissemination. Except as otherwise permitted pursuant to this Error! Reference source not
found., the Issuer shall not use or refer to the name of WCAS, any Purchaser or any of their Affiliates in any public statement or disclosure without the written consent of WCAS. 
  
 Article II.    TERMINATION OF THIS MODIFICATION 
  
 Section 2.1.    Termination of this Modification.    This Modification shall terminate immediately upon, and simultaneously with, the termination
of the Standstill Waiver Period, without any further action by the parties hereto; provided, however, in the event that the Issuer determines, in its sole discretion, to release WCAS from its obligations pursuant to Section 1.4 of this
Modification, the Issuer may do so without the consent or approval of any party hereto and WCAS will, upon delivery of written notice of such release, be immediately released from all such obligations. 
  
 Section 2.2.    Effect of Termination.    Upon termination of this Modification in
accordance with Section 2.1 of this Modification, all rights and obligations of the parties hereunder shall terminate (other than those rights and obligations set forth under Section 1.5, Section 1.6 and Section 3.7 of
this Modification and this Section 2.2) and the Shareholders Agreement shall remain in full force and effect without the waivers or agreements contemplated by this Modification. 
  
 Article III.    MISCELLANEOUS PROVISIONS 
  
 Section 3.1.    Headings.    The headings in this Modification are for convenience of reference only and shall not control or affect the meaning or construction of any
provisions hereof. 
  
 Section 3.2.    Reference to the Effect on the Shareholders
Agreement.    For so long as this Modification shall remain in full force and effect, each reference in the Shareholders Agreement to “this Agreement,” “hereunder,” “hereof,” “herein”
or words of similar import shall mean and be a reference to the Shareholders Agreement, including the waivers contemplated by this Modification. 
  
 Section 3.3.    Severability.    The invalidity or unenforceability of any provisions of this Modification in any jurisdiction shall not affect the
validity, legality or enforceability of the remainder of this Modification in such jurisdiction or the validity, legality or enforceability of this Modification, including any such provision, in any other jurisdiction, it being intended that all
rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law. 
  
 Section 3.4.    Successors, Assigns, Transferees.    The provisions of this Modification shall be binding upon and accrue to the benefit of the parties hereto and their respective
heirs, executors, administrators, successors and permitted assigns. Nothing in this Modification, expressed or implied, is intended to confer on any person other than the parties hereto, and their respective successors and permitted assigns, any
rights, remedies, obligations or liabilities under or by reason of this Modification. 

 
 -4- 

  
 Section
3.5.    Counterparts.    This Modification may be executed in any number of counterparts, each of which shall be an original with the same effect as if the signatures thereto and hereto were upon
the same instrument. 
  
 Section 3.6.    Entire
Agreement.    The Shareholders Agreement, including the waiver of certain provisions of the Shareholders Agreement as set forth in this Modification, contains the entire agreement between the parties hereto and supersedes any
prior understandings, agreements or representations by or between the parties hereto, written or oral, which may have related to the subject matter hereof in any way, including, without limitation, that certain term sheet entitled “Proposed
Terms for Amendment to Standstill.” 
  
 Section 3.7.    No Third Party
Beneficiaries.    Except as specifically set forth or referred to herein, nothing herein is intended or shall be construed to confer upon any person or entity other than the parties hereto and their successors or assigns, any
rights or remedies under or by reason of this Modification and no person, other than the Issuer, shall have any right to enforce any obligations of WCAS or any Purchaser hereunder other than the Issuer. 
  
 Section 3.8.    Applicable Law.    The corporate law of the Commonwealth of Virginia
shall govern all issues and questions concerning the relative rights and obligations of the Issuer and its securityholders. All other issues and questions concerning the construction, validity, enforcement and interpretation of this Modification
shall be construed in accordance with and governed by the laws of the State of New York, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of New York or any other jurisdiction) that would cause
the application of the laws of any jurisdiction other than the State of New York. 
  
 * * * * * 

 

 
 -5- 

  
 IN WITNESS WHEREOF, the parties hereto have caused this Modification to be duly
executed as of the date first above written. 
  
 NTELOS INC. 
  
 By:                                     
                                        
                
 Name: 
 Title: 
  
 WELSH, CARSON, ANDERSON & STOWE VIII, L.P. 
  
 By:  WCAS VIII
Associates, LLC, as General Partner 
  
 By:                                     
                                        
    
 Name: 
 Title:    Managing Member 
  
 WELSH, CARSON, ANDERSON &
STOWE IX, L.P. 
  
 By:  WCAS IX Associates, LLC, as General Partner 

 
 By:                                     
                                        
    
 Name: 
 Title:    Managing Member 
  
 WCAS CAPITAL PARTNERS III, L.P.

  
 By:  WCAS CP III Associates, L.L.C., its general partner 
  
 By:                                     
                                        
    
 Name: 
 Title:    Managing Member 
  
 By:                                     
                                        
                     

 

  
 Name:  Jonathan M. Rather as Attorney-in-fact

         for the individual investors listed below: 
  
 Patrick J. Welsh 
 Russell L. Carson 
 Bruce K. Anderson 
 Andrew M. Paul 
 Thomas E. McInerney 
 Robert A. Minicucci

 Lawrence B. Sorrel 
 Anthony J. de Nicola 
 Paul B. Queally 
 Rudolph E. Rupert 
 Jonathan M. Rather 
 D. Scott Mackesy 
 Sanjay Swani

 John D. Clark 
 Sean M.
Traynor 
 John Almeida 
 Eric J Lee 

 
 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]