Document:

Exhibit 10.12

 

AMENDMENT NO. 1
TO AMENDED AND

RESTATED RECEIVABLES PURCHASE AGREEMENT

 

This Amendment No. 1
to Amended and Restated Receivables Purchase Agreement, dated as of August 15, 2007 (this “Amendment”), is by and
among Manitowoc Funding, LLC, as Seller, The Manitowoc Company, Inc.,
as Servicer, Hannover Funding Company LLC, as Purchaser, and Norddeutsche
Landesbank Girozentrale, as Agent.

 

BACKGROUND

 

1.              The parties
hereto are parties to that certain Amended and Restated Receivables

Purchase Agreement, dated as of December 21,
2006 (the “Agreement”).

 

2.         The parties hereto desire to amend the Agreement.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

 

SECTION 1. Definitions. Capitalized terms defined in the
Agreement and used but not otherwise defined herein shall have the meanings
assigned thereto in the Agreement.

 

SECTION 2. Amendment. Clause (i) of the definition of
Purchase Limit in Exhibit I to the Agreement is hereby
amended by replacing “ninety million dollars ($90,000,000)” with “one hundred five million dollars ($105,000,000)”.

 

SECTION 3. Miscellaneous. The Agreement, as amended hereby,
remains in full force and effect. This Amendment will become effective upon the
Agent’s receipt of (a) signature pages to this Amendment,
signed by the parties hereto, and (b) legal opinions from counsel to the Seller and the Servicer, in form and substance
reasonably satisfactory to the Agent, with respect to the authorization,
execution and delivery of this Amendment and the enforceability of the
Agreement as amended by this Amendment. Any reference to the Agreement from and
after the date hereof shall be deemed to refer to the Agreement as amended hereby,
unless otherwise expressly stated.
This Amendment may be executed in any number of counterparts and by the different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which then taken together shall constitute one and the same Amendment. This Amendment may be executed by
facsimile. This Amendment shall be governed
by, and construed in accordance with, the internal laws of the State of New
York (including Sections 5-1401 and 5-1402 of the General Obligations Law of
the State of New York, but without regard to any other conflict of laws
provisions thereof) and the obligations, rights and remedies of the
parties under this Amendment shall be determined in accordance with such laws.

 

[Signature pages follow]

 

 

IN WITNESS
WHEREOF, the parties hereto have caused this Amendment to be duly executed, as
of the date first above written.

 

	
   

  	
  MANITOWOC FUNDING, LLC,
  

  
	
   

  	
  as Seller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dean J. Nolden

  
	
   

  	
  Name:

  	
  Dean J. Nolden

  
	
   

  	
  Title:

  	
  VP

  

 

 

S-1

 

 

	
   

  	
  THE MANITOWOC COMPANY,
  INC.,

  
	
   

  	
  as
  Servicer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dean J. Nolden

  
	
   

  	
  Name:

  	
  Dean J. Nolden

  
	
   

  	
  Title:

  	
  VP Finance

  

 

 

S-2

 

	
   

  	
  NORDDEUTSCHE LANDESBANK

  
	
   

  	
  GIROZENTRALE,
  as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Edward M. Weber

  
	
   

  	
  Name:

  	
  Edward M. Weber

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Heruy Dawit

  
	
   

  	
  Name:

  	
  Heruy Dawit

  
	
   

  	
  Title:

  	
  Assistant Vice
  President

  

 

 

S-3

 

	
   

  	
  HANNOVER FUNDING
  COMPANY LLC,

  
	
   

  	
  as Purchaser

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David DeAngelis

  
	
   

  	
  Name:

  	
  David DeAngelis

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

S-4Exhibit 10.1

 

FEI
COMPANY

1995
STOCK INCENTIVE PLAN, AS AMENDED

As amended
effective May 17, 2007

 

1.     Purpose. The purpose of this Stock
Incentive Plan (the “Plan”) is to enable FEI Company (the “Company”) to attract
and retain the services of (1) selected employees, officers and directors
of the Company or of any subsidiary of the Company and (2) selected
non-employee agents, consultants, advisors, persons involved in the sale or
distribution of the Company’s products and independent contractors of the Company
or any subsidiary.

 

2.     Shares Subject to the Plan.
Subject to adjustment as provided below and in paragraph 14, the shares to be
offered under the Plan shall consist of Common Stock of the Company, and the
total number of shares of Common Stock that may be issued under the Plan shall
not exceed 9,500,000 shares. The shares issued under the Plan may be authorized
and unissued shares or reacquired shares. If an option, stock appreciation
right, restricted stock unit or performance unit granted under the Plan
expires, terminates or is canceled, the unissued shares subject to such option,
stock appreciation right, restricted stock unit or performance unit shall again
be available under the Plan. If shares sold or awarded as a bonus under the
Plan are forfeited to the Company or repurchased by the Company, the number of
shares forfeited or repurchased shall again be available under the Plan.

 

3.     Effective Date and Duration of Plan.

 

(a)   Effective Date.
The Plan shall become effective as of April 21, 1995. No option, stock
appreciation right, restricted stock unit or performance unit granted under the
Plan shall become exercisable, however, until the Plan is approved by the
affirmative vote of the holders of a majority of the shares of Common Stock
represented at a shareholders meeting at which a quorum is present and any such
awards under the Plan prior to such approval shall be conditioned on and
subject to such approval. Subject to this limitation, options, stock
appreciation rights, restricted stock units and performance units may be
granted and shares may be awarded as bonuses or sold under the Plan at any time
after the effective date and before termination of the Plan.

 

(b)   Duration.
The Plan shall continue in effect until all shares available for issuance under
the Plan have been issued and all restrictions on such shares have lapsed. The
Board of Directors may suspend or terminate the Plan at any time except with
respect to options, performance units, restricted stock units and shares
subject to restrictions then outstanding under the Plan. Termination shall not
affect any outstanding options, any right of the Company to repurchase shares
or the forfeitability of shares issued under the Plan.

 

4.     Administration.

 

(a)   Board of Directors.
The Plan shall be administered by the Board of Directors of the Company, which
shall determine and designate from time to time the individuals to whom awards
shall be made, the amount of the awards and the other terms and conditions of
the awards. Subject to the provisions of the Plan, the Board of Directors may
from time to time adopt and amend rules and regulations relating to
administration of the Plan, advance the lapse of any waiting period, accelerate
any exercise date, waive or modify any restriction applicable to shares (except
those restrictions imposed by law) and make all other determinations in the
judgment of the Board of Directors necessary or desirable for the
administration of the Plan. The interpretation and construction of the
provisions of the Plan and related agreements by the Board of Directors shall
be final and conclusive. The Board of Directors may correct any defect or
supply any omission or reconcile any inconsistency in the Plan or in any
related agreement in the manner and to the extent it shall deem expedient to
carry the Plan into effect, and it shall be the sole and final judge of such
expediency.

 

(b)   Committee.
The Board of Directors may delegate to a committee of the Board of Directors or
specified officers of the Company, or both (the “Committee”) any or all
authority for administration of the Plan. If authority is delegated to a
Committee, all references to the Board of Directors in the Plan shall mean and
relate to the Committee except (i) as otherwise provided by the Board of
Directors, (ii) that only the Board of Directors may amend or terminate
the Plan as provided in paragraphs 3 and 15 and (iii) that a Committee
including officers of the Company shall not be permitted to grant options to
persons who are officers of the Company. To the extent that the Board of 

 

1

 

Directors determines it
to be desirable to qualify awards granted hereunder as “performance-based
compensation” within the meaning of Section 162(m) of the Internal
Revenue Code of 1986, as amended (the “Code”), the Plan shall be administered
by a Committee of two or more “outside directors” within the meaning of Section 162(m) of
the Code.

 

5.     Types of Awards; Eligibility. The
Board of Directors may, from time to time, take the following action,
separately or in combination, under the Plan: (i) grant Incentive Stock
Options, as defined in section 422 of the Code, as provided in
paragraphs 6(a) and 6(b); (ii) grant options other than Incentive
Stock Options (“Non-Statutory Stock Options”) as provided in paragraphs 6(a) and
6(c); (iii) award stock bonuses as provided in paragraph 7; (iv) sell
shares subject to restrictions as provided in paragraph 8; (v) grant stock
appreciation rights as provided in paragraph 9; (vi) grant cash bonus
rights as provided in paragraph 10; (vii) grant performance units as
provided in paragraph 11; (viii) grant foreign qualified awards as
provided in paragraph 12; and (ix) grant restricted stock units as
provided in paragraph 13. Any such awards may be made to employees, including
employees who are officers or directors, and to other individuals described in
paragraph 1 who the Board of Directors believes have made or will make an
important contribution to the Company or any subsidiary of the Company; provided,
however, that only employees of the Company shall be eligible to receive
Incentive Stock Options under the Plan. The Board of Directors shall select the
individuals to whom awards shall be made and shall specify the action taken
with respect to each individual to whom an award is made. At the discretion of
the Board of Directors, an individual may be given an election to surrender an
award in exchange for the grant of a new award.

 

6.     Option Grants.

 

(a)   General Rules Relating
to Options.

 

(i)     Terms
of Grant. The Board of Directors may grant options under the Plan. With respect
to each option grant, the Board of Directors shall determine the number of
shares subject to the option, the option price, the period of the option, the
time or times at which the option may be exercised and whether the option is an
Incentive Stock Option or a Non-Statutory Stock Option. At the time of the
grant of an option or at any time thereafter, the Board of Directors may
provide that an optionee who exercised an option with Common Stock of the
Company shall automatically receive a new option to purchase additional shares
equal to the number of shares surrendered and may specify the terms and
conditions of such new options.

 

(ii)    Exercise
of Options. Except as provided in paragraph 6(a) (iv) or as
determined by the Board of Directors, no option granted under the Plan may be
exercised unless at the time of such exercise the optionee is employed by or in
the service of the Company or any subsidiary of the Company and shall have been
so employed or provided such service continuously since the date such option
was granted. Absence on leave or on account of illness or disability under rules established
by the Board of Directors shall not, however, be deemed an interruption of
employment or service for this purpose. Unless otherwise determined by the
Board of Directors, vesting of options shall not continue during an absence on
leave (including an extended illness) or on account of disability. Except as
provided in paragraphs 6(a) (iv) and 14, options granted under the
Plan may be exercised from time to time over the period stated in each option
in such amounts and at such times as shall be prescribed by the Board of
Directors, provided that options shall not be exercised for fractional shares.
Unless otherwise determined by the Board of Directors, if the optionee does not
exercise an option in any one year with respect to the full number of shares to
which the optionee is entitled in that year, the optionee’s rights shall be cumulative
and the optionee may purchase those shares in any subsequent year during the
term of the option.

 

(iii)   Nontransferability.
Each Incentive Stock Option and, unless otherwise determined by the Board of
Directors, each other option granted under the Plan by its terms shall be
nonassignable and nontransferable by the optionee, either voluntarily or by
operation of law, except by will or by the laws of descent and distribution of
the state or country of the optionee’s domicile at the time of death.

 

(iv)   Termination
of Employment or Service.

 

(A)  General Rule. Unless otherwise determined by
the Board of Directors, in the event the employment or service of the optionee
with the Company or a subsidiary terminates for any reason other than because
of physical disability or death as provided in subparagraphs 6(a)(iv)(B) and
(C), the option may be 

 

2

 

exercised at any time prior to the expiration date of
the option or the expiration of 30 days after the date of such termination,
whichever is the shorter period, but only if and to the extent the optionee was
entitled to exercise the option at the date of such termination.

 

(B)   Termination Because of Total Disability.
Unless otherwise determined by the Board of Directors, in the event of the
termination of employment or service because of total disability, the option
may be exercised at any time prior to the expiration date of the option or the
expiration of 12 months after the date of such termination, whichever is the
shorter period, but only if and to the extent the optionee was entitled to
exercise the option at the date of such termination. The term “total disability”
means a medically determinable mental or physical impairment which is expected
to result in death or which has lasted or is expected to last for a continuous
period of 12 months or more and which causes the optionee to be unable, in the
opinion of the Company and two independent physicians, to perform his or her
duties as an employee, director, officer or consultant of the Company and to be
engaged in any substantial gainful activity. Total disability shall be deemed
to have occurred on the first day after the Company and the two independent
physicians have furnished their opinion of total disability to the Company.

 

(C)   Termination Because of Death. Unless
otherwise determined by the Board of Directors, in the event of the death of an
optionee while employed by or providing service to the Company or a subsidiary,
the option may be exercised at any time prior to the expiration date of the
option or the expiration of 12 months after the date of death, whichever is the
shorter period, for any portion of the option exercisable as of the date of
death and any outstanding unvested portion of the option, which shall become
fully vested and immediately exercisable as of the date of death, and only by
the person or persons to whom such optionee’s rights under the option shall
pass by the optionee’s will or by the laws of descent and distribution of the
state or country of domicile at the time of death.

 

(D)  Amendment of Exercise Period Applicable to
Termination. The Board of Directors, at the time of grant or, with respect to
an option that is not an Incentive Stock Option, at any time thereafter, may
extend the 30-day and 12-month exercise periods any length of time not longer
than the original expiration date of the option, and may increase the portion
of an option that is exercisable, subject to such terms and conditions as the
Board of Directors may determine.

 

(E)   Failure to Exercise Option. To the extent
that the option of any deceased optionee or of any optionee whose employment or
service terminates is not exercised within the applicable period, all further
rights to purchase shares pursuant to such option shall cease and terminate.

 

(v)     Purchase
of Shares. Unless the Board of Directors determines otherwise, shares may be
acquired pursuant to an option granted under the Plan only upon receipt by the
Company of notice in writing from the optionee of the optionee’s intention to
exercise, specifying the number of shares as to which the optionee desires to
exercise the option and the date on which the optionee desires to complete the
transaction, and if required in order to comply with the Securities Act of
1933, as amended, containing a representation that it is the optionee’s present
intention to acquire the shares for investment and not with a view to
distribution. Unless the Board of Directors determines otherwise, on or before
the date specified for completion of the purchase of shares pursuant to an
option, the optionee must have paid the Company the full purchase price of such
shares in cash (including, with the consent of the Board of Directors, cash
that may be the proceeds of a loan from the Company (provided that, with
respect to an Incentive Stock Option, such loan is approved at the time of
option grant)) or, with the consent of the Board of Directors, in whole or in
part, in Common Stock of the Company valued at fair market value, restricted stock,
performance units or other contingent awards denominated in either stock or
cash, promissory notes and other forms of consideration. The fair market value
of Common Stock provided in payment of the purchase price shall be determined
by the Board of Directors. If the Common Stock of the Company is not publicly
traded on the date the option is exercised, the Board of Directors may consider
any valuation methods it deems appropriate and may, but is not required to,
obtain one or more independent appraisals of the Company. If the Common Stock
of the Company is publicly traded on the date the option is exercised, the fair
market value of Common Stock provided in payment of the purchase price shall be
the closing price of the Common Stock as reported in The Wall
Street Journal on the last trading day preceding the date the option
is exercised, or such other reported value of the Common Stock as shall be
specified by the Board of Directors. No shares shall be issued until full
payment for the shares has been made. With the consent of the Board of
Directors (which, in the case of an Incentive Stock Option, shall be given only
at the time of option grant), an optionee may request the Company to apply
automatically the shares to be received upon the exercise of a portion of a
stock option (even though stock certificates have not yet been issued) to
satisfy the 

 

3

 

purchase price for additional portions of the option.
Each optionee who has exercised an option shall immediately upon notification
of the amount due, if any, pay to the Company in cash amounts necessary to
satisfy any applicable federal, state and local tax withholding requirements.
If additional withholding is or becomes required beyond any amount deposited
before delivery of the certificates, the optionee shall pay such amount to the
Company on demand. If the optionee fails to pay the amount demanded, the
Company may withhold that amount from other amounts payable by the Company to
the optionee, including salary, subject to applicable law. With the consent of
the Board of Directors an optionee may satisfy this obligation, in whole or in
part, by having the Company withhold from the shares to be issued upon the
exercise that number of shares that would satisfy the withholding amount due or
by delivering to the Company Common Stock to satisfy the withholding amount.
Upon the exercise of an option, the number of shares reserved for issuance
under the Plan shall be reduced by the number of shares issued upon exercise of
the option.

 

(b)   Incentive Stock Options.
Incentive Stock Options shall be subject to the following additional terms and
conditions:

 

(i)     Limitation
on Amount of Grants. No employee may be granted Incentive Stock Options under
the Plan if the aggregate fair market value, on the date of grant, of the
Common Stock with respect to which Incentive Stock Options are exercisable for
the first time by that employee during any calendar year under the Plan and
under all incentive stock option plans (within the meaning of section 422
of the Code) of the Company or any parent or subsidiary of the Company exceeds
$100,000.

 

(ii)    Limitations
on Grants to 10 Percent Shareholders. An Incentive Stock Option may be granted
under the Plan to an employee possessing more than 10 percent of the total
combined voting power of all classes of stock of the Company or of any parent
or subsidiary of the Company only if the option price is at least 110 percent
of the fair market value, as described in paragraph 6(b)(iv), of the Common
Stock subject to the option on the date it is granted and the option by its
terms is not exercisable after the expiration of five years from the date it is
granted.

 

(iii)   Duration
of Options. Subject to paragraphs 6(a) (ii) and 6(b) (ii),
Incentive Stock Options granted under the Plan shall continue in effect for the
period fixed by the Board of Directors, except that no Incentive Stock Option
shall be exercisable after the expiration of 10 years from the date it is
granted.

 

(iv)   Option
Price. The option price per share shall be determined by the Board of Directors
at the time of grant. Except as provided in paragraph 6(b) (ii), the
option price shall not be less than 100 percent of the fair market value of the
Common Stock covered by the Incentive Stock Option at the date the option is
granted. The fair market value shall be determined by the Board of Directors.
If the Common Stock of the Company is not publicly traded on the date the
option is granted, the Board of Directors may consider any valuation methods it
deems appropriate and may, but is not required to, obtain one or more
independent appraisals of the Company. If the Common Stock of the Company is
publicly traded on the date the option is exercised, the fair market value
shall be deemed to be the closing price of the Common Stock as reported in The Wall Street Journal on the day preceding the date the
option is granted, or, if there has been no sale on that date, on the last
preceding date on which a sale occurred or such other value of the Common Stock
as shall be specified by the Board of Directors.

 

(v)    Limitation
on Time of Grant. No Incentive Stock Option shall be granted on or after the
tenth anniversary of the effective date of the Plan.

 

(vi)   Conversion
of Incentive Stock Options. The Board of Directors may at any time without the
consent of the optionee convert an Incentive Stock Option to a Non-Statutory
Stock Option.

 

(c)   Non-Statutory Stock
Options. Non-Statutory Stock Options shall be subject to the
following terms and conditions in addition to those set forth in Section 6(a) above:

 

(i)    Option
Price. The option price for Non-Statutory Stock Options shall be determined by
the Board of Directors at the time of grant and may be any amount determined by
the Board of Directors. Notwithstanding the foregoing, with respect to
Non-Statutory Stock Options intended to qualify as “performance-based
compensation” within the meaning of Section 162(m) of the Code, the
option price will be no less than 100 percent of the fair market value per
share on the date of grant.

 

4

 

(ii)     Duration
of Options. Non-Statutory Stock Options granted under the Plan shall continue
in effect for the period fixed by the Board of Directors.

 

7.     Stock Bonuses. The Board of
Directors may award shares under the Plan as stock bonuses. Shares awarded as a
bonus shall be subject to the terms, conditions, and restrictions determined by
the Board of Directors. The restrictions may include restrictions concerning
transferability and forfeiture of the shares awarded, together with such other
restrictions as may be determined by the Board of Directors. If shares are
subject to forfeiture, all dividends or other distributions paid by the Company
with respect to the shares shall be retained by the Company until the shares
are no longer subject to forfeiture, at which time all accumulated amounts
shall be paid to the recipient. The Board of Directors may require the
recipient to sign an agreement as a condition of the award, but may not require
the recipient to pay any monetary consideration other than amounts necessary to
satisfy tax withholding requirements. The agreement may contain any terms,
conditions, restrictions, representations and warranties required by the Board
of Directors. The certificates representing the shares awarded shall bear any
legends required by the Board of Directors. The Company may require any
recipient of a stock bonus to pay to the Company in cash upon demand amounts
necessary to satisfy any applicable federal, state or local tax withholding
requirements. If the recipient fails to pay the amount demanded, the Company
may withhold that amount from other amounts payable by the Company to the
recipient, including salary or fees for services, subject to applicable law.
With the consent of the Board of Directors, a recipient may deliver Common
Stock to the Company to satisfy this withholding obligation. Upon the issuance
of a stock bonus, the number of shares reserved for issuance under the Plan
shall be reduced by the number of shares issued.

 

8.     Restricted Stock. The Board of
Directors may issue shares under the Plan for such consideration (including
promissory notes and services) as determined by the Board of Directors. Shares
issued under the Plan shall be subject to the terms, conditions and
restrictions determined by the Board of Directors. The restrictions may include
restrictions concerning transferability, repurchase by the Company and
forfeiture of the shares issued, together with such other restrictions as may
be determined by the Board of Directors. If shares are subject to forfeiture or
repurchase by the Company, all dividends or other distributions paid by the
Company with respect to the shares shall be retained by the Company until the
shares are no longer subject to forfeiture or repurchase, at which time all
accumulated amounts shall be paid to the recipient. All Common Stock issued
pursuant to this paragraph 8 shall be subject to a purchase agreement, which
shall be executed by the Company and the prospective recipient of the shares
prior to the delivery of certificates representing such shares to the
recipient. The purchase agreement may contain any terms, conditions,
restrictions, representations and warranties required by the Board of
Directors. The certificates representing the shares shall bear any legends
required by the Board of Directors. The Company may require any purchaser of
restricted stock to pay to the Company in cash upon demand amounts necessary to
satisfy any applicable federal, state or local tax withholding requirements. If
the purchaser fails to pay the amount demanded, the Company may withhold that
amount from other amounts payable by the Company to the purchaser, including
salary, subject to applicable law. With the consent of the Board of Directors,
a purchaser may deliver Common Stock to the Company to satisfy this withholding
obligation. Upon the issuance of restricted stock, the number of shares
reserved for issuance under the Plan shall be reduced by the number of shares
issued.

 

9.     Stock Appreciation Rights.

 

(a)   Grant.
Stock appreciation rights may be granted under the Plan by the Board of
Directors, subject to such rules, terms, and conditions as the Board of
Directors prescribes.

 

(b)   Exercise.

 

(i)     Each
stock appreciation right shall entitle the holder, upon exercise, to receive
from the Company in exchange therefore an amount equal in value to the excess
of the fair market value on the date of exercise of one share of Common Stock
of the Company over its fair market value on the date of grant (or, in the case
of a stock appreciation right granted in connection with an option, the excess
of the fair market value of one share of Common Stock of the Company over the
option price per share under the option to which the stock appreciation right
relates), multiplied by the number of shares covered by the stock appreciation
right or the option, or portion thereof, that is surrendered. No stock
appreciation right shall be exercisable at a time that the amount determined
under this subparagraph is negative. Payment by the Company upon exercise of a
stock appreciation right may be made in 

 

5

 

Common Stock valued at fair market value, in cash, or
partly in Common Stock and partly in cash, all as determined by the Board of
Directors.

 

(ii)    A
stock appreciation right shall be exercisable only at the time or times
established by the Board of Directors. If a stock appreciation right is granted
in connection with an option, the following rules shall apply: (1) the
stock appreciation right shall be exercisable only to the extent and on the
same conditions that the related option could be exercised; (2) the stock
appreciation rights shall be exercisable only when the fair market value of the
stock exceeds the option price of the related option; (3) the stock
appreciation right shall be for no more than 100 percent of the excess of the
fair market value of the stock at the time of exercise over the option price; (4) upon
exercise of the stock appreciation right, the option or portion thereof to
which the stock appreciation right relates terminates; and (5) upon
exercise of the option, the related stock appreciation right or portion thereof
terminates.

 

(iii)    The
Board of Directors may withdraw any stock appreciation right granted under the
Plan at any time and may impose any conditions upon the exercise of a stock
appreciation right or adopt rules and regulations from time to time
affecting the rights of holders of stock appreciation rights. Such rules and
regulations may govern the right to exercise stock appreciation rights granted
prior to adoption or amendment of such rules and regulations as well as
stock appreciation rights granted thereafter.

 

(iv)    For
purposes of this paragraph 9, the fair market value of the Common Stock shall
be determined as of the date the stock appreciation right is exercised, under
the methods set forth in paragraph 6(b) (iv).

 

(v)    
No fractional shares shall be issued upon exercise of a stock appreciation
right. In lieu thereof, cash may be paid in an amount equal to the value of the
fraction or, if the Board of Directors shall determine, the number of shares
may be rounded downward to the next whole share.

 

(vi)    Each
stock appreciation right granted in connection with an Incentive Stock Option,
and unless otherwise determined by the Board of Directors, each other stock
appreciation right granted under the Plan by its terms shall be nonassignable
and nontransferable by the holder, either voluntarily or by operation of law,
except by will or by the laws of descent and distribution of the state or
country of the holder’s domicile at the time of death, and each stock
appreciation right by its terms shall be exercisable during the holder’s
lifetime only by the holder.

 

(vii)   Each
participant who has exercised a stock appreciation right shall, upon
notification of the amount due, pay to the Company in cash amounts necessary to
satisfy any applicable federal, state and local tax withholding requirements.
If the participant fails to pay the amount demanded, the Company may withhold
that amount from other amounts payable by the Company to the participant
including salary, subject to applicable law. With the consent of the Board of
Directors a participant may satisfy this obligation, in whole or in part, by
having the Company withhold from any shares to be issued upon the exercise that
number of shares that would satisfy the withholding amount due or by delivering
Common Stock to the Company to satisfy the withholding amount.

 

(viii)  Upon the
exercise of a stock appreciation right for shares, the number of shares
reserved for issuance under the Plan shall be reduced by the number of shares
issued. Cash payments of stock appreciation rights shall not reduce the number
of shares of Common Stock reserved for issuance under the Plan.

 

10.   Cash Bonus Rights.

 

(a)   Grant. The
Board of Directors may grant cash bonus rights under the Plan in connection
with (i) options granted or previously granted, (ii) stock
appreciation rights granted or previously granted, (iii) stock bonuses
awarded or previously awarded and (iv) shares sold or previously sold
under the Plan. Cash bonus rights will be subject to rules, terms and
conditions as the Board of Directors may prescribe. Unless otherwise determined
by the Board of Directors, each cash bonus right granted under the Plan by its
terms shall be nonassignable and nontransferable by the holder, either
voluntarily or by operation of law, except by will or by the laws of descent
and distribution of the state or country of the holder’s domicile at the time
of death. The payment of a cash bonus shall not reduce the number of shares of
Common Stock reserved for issuance under the Plan.

 

6

 

(b)   Cash Bonus Rights in
Connection With Options. A cash bonus right granted in
connection with an option will entitle an optionee to a cash bonus when the
related option is exercised (or terminates in connection with the exercise of a
stock appreciation right related to the option) in whole or in part if, in the
sole discretion of the Board of Directors, the bonus right will result in a tax
deduction that the Company has sufficient taxable income to use. If an optionee
purchases shares upon exercise of an option and does not exercise a related
stock appreciation right, the amount of the bonus, if any, shall be determined
by multiplying the excess of the total fair market value of the shares to be
acquired upon the exercise over the total option price for the shares by the
applicable bonus percentage. If the optionee exercises a related stock
appreciation right in connection with the termination of an option, the amount
of the bonus, if any, shall be determined by multiplying the total fair market
value of the shares and cash received pursuant to the exercise of the stock
appreciation right by the applicable bonus percentage. The bonus percentage
applicable to a bonus right, including a previously granted bonus right, may be
changed from time to time at the sole discretion of the Board of Directors but
shall in no event exceed 75 percent.

 

(c)   Cash Bonus Rights in
Connection With Stock Bonus. A cash bonus right granted in
connection with a stock bonus will entitle the recipient to a cash bonus payable
when the stock bonus is awarded or restrictions, if any, to which the stock is
subject lapse. If bonus stock awarded is subject to restrictions and is
repurchased by the Company or forfeited by the holder, the cash bonus right
granted in connection with the stock bonus shall terminate and may not be
exercised. The amount and timing of payment of a cash bonus shall be determined
by the Board of Directors.

 

(d)   Cash Bonus Rights in
Connection With Stock Purchases. A cash bonus right granted in
connection with the purchase of stock pursuant to paragraph 8 will entitle the
recipient to a cash bonus when the shares are purchased or restrictions, if
any, to which the stock is subject lapse. Any cash bonus right granted in
connection with shares purchased pursuant to paragraph 8 shall terminate and
may not be exercised in the event the shares are repurchased by the Company or
forfeited by the holder pursuant to applicable restrictions. The amount of any
cash bonus to be awarded and timing of payment of a cash bonus shall be
determined by the Board of Directors.

 

(e)   Taxes. The
Company shall withhold from any cash bonus paid pursuant to paragraph 10 the
amount necessary to satisfy any applicable federal, state and local withholding
requirements.

 

11.   Performance Units.
The Board of Directors may grant performance units consisting of monetary units
which may be earned in whole or in part if the Company achieves certain goals
established by the Board of Directors over a designated period of time, but not
in any event more than 10 years. The goals established by the Board of
Directors may include earnings per share, return on shareholders’ equity,
return on invested capital, and such other goals as may be established by the
Board of Directors. In the event that the minimum performance goal established
by the Board of Directors is not achieved at the conclusion of a period, no
payment shall be made to the participants. In the event the maximum corporate
goal is achieved, 100 percent of the monetary value of the performance units
shall be paid to or vested in the participants. Partial achievement of the
maximum goal may result in a payment or vesting corresponding to the degree of
achievement as determined by the Board of Directors. Payment of an award earned
may be in cash or in Common Stock or in a combination of both, and may be made
when earned, or vested and deferred, as the Board of Directors determines.
Deferred awards shall earn interest on the terms and at a rate determined by
the Board of Directors. Unless otherwise determined by the Board of Directors,
each performance unit granted under the Plan by its terms shall be
nonassignable and nontransferable by the holder, either voluntarily or by
operation of law, except by will or by the laws of descent and distribution of
the state or country of the holder’s domicile at the time of death. Each
participant who has been awarded a performance unit shall, upon notification of
the amount due, pay to the Company in cash amounts necessary to satisfy any
applicable federal, state and local tax withholding requirements. If the
participant fails to pay the amount demanded, the Company may withhold that
amount from other amounts payable by the Company to the participant, including
salary or fees for services, subject to applicable law. With the consent of the
Board of Directors a participant may satisfy this obligation, in whole or in
part, by having the Company withhold from any shares to be issued that number
of shares that would satisfy the withholding amount due or by delivering Common
Stock to the Company to satisfy the withholding amount. The payment of a
performance unit in cash shall not reduce the number of shares of Common Stock
reserved for issuance under the Plan. The number of shares reserved for
issuance under the Plan shall be reduced by the number of shares issued upon
payment of an award.

 

12.   Foreign Qualified Grants.
Awards under the Plan may be granted to such officers and employees of the 

 

7

 

Company and its subsidiaries
and such other persons described in paragraph 1 residing in foreign
jurisdictions as the Board of Directors may determine from time to time. The
Board of Directors may adopt such supplements to the Plan as may be necessary
to comply with the applicable laws of such foreign jurisdictions and to afford
participants favorable treatment under such laws; provided, however, that no
award shall be granted under any such supplement with terms which are more
beneficial to the participants than the terms permitted by the Plan.

 

13.   Restricted Stock Units.

 

(a)   Grant.
Restricted stock units may be granted at any time and from time to time as
determined by the Board of Directors. For this purpose, a restricted stock unit
shall mean a bookkeeping entry representing an amount equal to the fair market
value of one share of Common Stock, granted pursuant to this paragraph 13. Each
restricted stock unit represents an unfunded and unsecured obligation of the
Company. Each restricted stock unit grant will be evidenced by an agreement
that will specify such other terms and conditions as the Board of Directors, in
its sole discretion, will determine, including all terms, conditions, and
restrictions related to the grant, the number of restricted stock units and the
form of payout, which, subject to paragraph 13(d), may be left to the
discretion of the Board of Directors.

 

(b)   Vesting Criteria and Other
Terms. The Board of Directors will set vesting criteria in its
discretion, which, depending on the extent to which the criteria are met, will
determine the number of restricted stock units that will be paid out to the
participant. The Board of Directors may set vesting criteria based upon the
achievement of Company-wide, business unit, or individual goals (including, but
not limited to, continued employment), or any other basis determined by the
Board of Directors in its discretion.

 

(c)   Earning Restricted Stock
Units. Upon meeting the applicable vesting criteria, the
participant will be entitled to receive a payout as specified in the award
agreement. Notwithstanding the foregoing, at any time after the grant of
restricted stock units, the Board of Directors, in its sole discretion, may
reduce or waive any vesting criteria that must be met to receive a payout.

 

(d)   Form and Timing
of Payment. Payment of earned restricted stock units will be
made as soon as practicable after the date(s) set forth in the award
agreement. The Board of Directors, in its sole discretion, may pay earned
restricted stock units in cash, shares of Common Stock, or a combination
thereof. Shares of Common Stock represented by restricted stock units that are
fully paid in cash again will be available for grant under the Plan.

 

(e)   Cancellation.
On the date set forth in the award agreement, all unearned restricted stock
units will be forfeited to the Company.

 

(f)    Transferability.
Unless otherwise determined by the Board of Directors, each restricted stock
unit granted under the Plan by its terms shall be nonassignable and
nontransferable by the holder, either voluntarily or by operation of law,
except by will or by the laws of descent and distribution of the state or
country of the holder’s domicile at the time of death.

 

14.   Changes in Capital
Structure.

 

(a)   Stock Splits; Stock
Dividends. If the
outstanding Common Stock of the Company is hereafter increased or decreased or
changed into or exchanged for a different number or kind of shares or other
securities of the Company by reason of any stock split, combination of shares
or dividend payable in shares, recapitalization or reclassification appropriate
adjustment shall be made by the Board of Directors in the number and kind of
shares available for grants under the Plan. In addition, the Board of Directors
shall make appropriate adjustment in the number and kind of shares as to which
outstanding options, or portions thereof then unexercised, shall be
exercisable, so that the optionee’s proportionate interest before and after the
occurrence of the event is maintained. Notwithstanding the foregoing, the Board
of Directors shall have no obligation to effect any adjustment that would or
might result in the issuance of fractional shares, and any fractional shares
resulting from any adjustment may be disregarded or provided for in any manner
determined by the Board of Directors. Any such adjustments made by the Board of
Directors shall be conclusive.

 

(b)   Mergers, Reorganizations,
Etc. In the event of a merger,
consolidation, plan of exchange, acquisition of 

 

8

 

property or stock,
separation, reorganization or liquidation to which the Company or a subsidiary
is a party or a sale of all or substantially all of the Company’s assets (each,
a “Transaction”), the Board of Directors shall, in its sole discretion and to
the extent possible under the structure of the Transaction, select one of the
following alternatives for treating outstanding options under the Plan:

 

(i)     Outstanding
options shall remain in effect in accordance with their terms.

 

(ii)    Outstanding
options shall be converted into options to purchase stock in the corporation
that is the surviving or acquiring corporation in the Transaction. The amount,
type of securities subject thereto and exercise price of the converted options
shall be determined by the Board of Directors of the Company, taking into
account the relative values of the companies involved in the Transaction and
the exchange rate, if any, used in determining shares of the surviving
corporation to be issued to holders of shares of the Company. Unless otherwise
determined by the Board of Directors, the converted options shall be vested
only to the extent that the vesting requirements relating to options granted
hereunder have been satisfied.

 

(iii)   The
Board of Directors shall provide a 30-day period prior to the consummation of
the Transaction during which outstanding options may be exercised to the extent
then exercisable, and upon the expiration of such 30-day period, all
unexercised options shall immediately terminate. The Board of Directors may, in
its sole discretion, accelerate the exercisability of options so that they are
exercisable in full during such 30-day period.

 

(c)   Dissolution of the Company. In the event of the dissolution of the Company, options
shall be treated in accordance with paragraph 14(b)(iii).

 

(d)   Rights Issued by Another
Corporation. The Board of
Directors may also grant options, stock appreciation rights, performance units,
stock bonuses and cash bonuses and issue restricted stock under the Plan having
terms, conditions and provisions that vary from those specified in this Plan
provided that any such awards are granted in substitution for, or in connection
with the assumption of, existing options, stock appreciation rights, stock
bonuses, cash bonuses, restricted stock and performance units granted, awarded
or issued by another corporation and assumed or otherwise agreed to be provided
for by the Company pursuant to or by reason of a Transaction.

 

15.   Amendment of Plan.
The Board of Directors may at any time, and from time to time, modify or amend
the Plan in such respects as it shall deem advisable because of changes in the
law while the Plan is in effect or for any other reason. Except as provided in
paragraphs 6(a)(iv), 9, 10 and 14, however, no change in an award already
granted shall be made without the written consent of the holder of such award.

 

16.   Approvals. The
obligations of the Company under the Plan are subject to the approval of state
and federal authorities or agencies with jurisdiction in the matter. The
Company will use its best efforts to take steps required by state or federal
law or applicable regulations, including rules and regulations of the
Securities and Exchange Commission and any stock exchange on which the Company’s
shares may then be listed, in connection with the grants under the Plan. The
foregoing notwithstanding, the Company shall not be obligated to issue or
deliver Common Stock under the Plan if such issuance or delivery would violate
applicable state or federal securities laws.

 

17.   Employment and Service
Rights. Nothing in the Plan or any award pursuant to the Plan shall (i) confer
upon any employee any right to be continued in the employment of the Company or
any subsidiary or interfere in any way with the right of the Company or any subsidiary
by whom such employee is employed to terminate such employee’s employment at
any time, for any reason, with or without cause, or to decrease such employee’s
compensation or benefits, or (ii) confer upon any person engaged by the
Company any right to be retained or employed by the Company or to the
continuation, extension, renewal, or modification of any compensation,
contract, or arrangement with or by the Company.

 

18.   Rights as a Shareholder.
The recipient of any award under the Plan shall have no rights as a shareholder
with respect to any Common Stock until the date of issue to the recipient of a
stock certificate for such shares. Except as otherwise expressly provided in
the Plan, no adjustment shall be made for dividends or other rights for which
the record date occurs prior to the date such stock certificate is issued.

 

9

 

19.   Restricted Stock Unit Grants to
Non-Employee Directors.

 

(a)   Initial Board Grants. Each Non-Employee
Director shall be automatically granted restricted stock units equal to 5,000
shares of Common Stock on the date such person first becomes a Non-Employee
Director, whether through election by the shareholders of the Company or
appointment by the Board of Directors to fill a vacancy. A “Non-Employee
Director” is a director who is not an officer or employee of the Company or any
of its subsidiaries. Notwithstanding the foregoing, a director who ceases to be
an employee of the Company but remains a director of the Company and thereby
becomes a Non-Employee Director shall not receive the grant of restricted stock
units provided under this paragraph 19(a).

 

(b)   Additional Grants. Each Non-Employee Director
shall be automatically granted additional restricted stock units equal to 2,500
shares of Common Stock in each calendar year subsequent to the year in which
such person became a Non-Employee Director, such restricted stock units to be
granted as of the date of the Company’s annual meeting of shareholders held in
such calendar year, provided that the Non-Employee Director continues to serve
in such capacity as of such date.

 

(c)   Terms of Restricted Stock Units.

 

(i)     Award
Agreement. Each award of restricted stock units granted pursuant to this
paragraph 19 shall be evidenced by an agreement that will specify the number of
restricted stock units and such other terms and conditions as the Board of
Directors, in its sole discretion, shall determine, including all terms,
conditions, and restrictions related to the grant and the form of payout,
which, subject to paragraph 19(c)(iii), may be left tot he discretion of the
Board of Directors.

 

(ii)    Vesting.
Each award of restricted stock units shall vest as to twenty-five (25%) of the
restricted stock units on each anniversary of its date of grant provided that
the Non-employee Director continues to serve as a director of the Company on
such date. Notwithstanding the foregoing, if the Non-employee Director ceases
to be a director of the Company due to death, one hundred percent (100%) of the
unvested portion of the restricted stock units subject to the award shall vest
on the date of the Non-employee Director’s death.

 

(iii)   Form and
Timing of Payment. Payment of restricted stock units shall be made as soon as
practicable following the date on which such restricted stock units vest in
accordance with paragraph 19(ii). The Board of Directors, in its sole
discretion, may pay vested restricted stock units in cash, shares of Common
Stock, or a combination thereof. Shares of Common Stock represented by
restricted stock units that are fully paid in cash shall again be available for
grant under the Plan.

 

(d)   Section 409A Compliance.
Unless otherwise determined by the Board of Directors, grants made under
this paragraph 19 shall comply with the provisions of Section 409A of the
Code. The Board of Directors of the Company reserves the right to amend this
paragraph 19 as it deems necessary or advisable, in its sole discretion and
without the consent of the Employee, to comply with Section 409A of the
Code or to otherwise avoid imposition of any additional tax or income
recognition under Section 409A of the Code.

 

(e)   Nontransferability. Each restricted stock
unit by its terms shall be nonassignable and nontransferable by the holder,
either voluntarily or by operation of law, except by will or by the laws of
descent and distribution of the state or country of the holder’s domicile at
the time of death.

 

20.   Code Section 162(m) Provisions.

 

(a)   Option and SAR Annual
Share Limit. No individual shall be granted, in any calendar
year, options and stock appreciation rights to purchase more than 250,000
shares of Common Stock; provided, however, that such limit shall be 200,000
shares of Common Stock in the individual’s first calendar year of Company service.

 

(b)   Restricted Stock, Stock
Bonus, Restricted Stock Unit and Performance Unit Annual Limits.
No individual shall be granted, in any calendar year, more than 75,000 shares
of Common Stock in the aggregate of the following: (i) restricted stock, (ii) stock
bonuses, or (iii) restricted stock units. No individual shall be granted,
in any calendar year, performance units having an initial value greater than
$2,000,000.

 

10

 

(c)   Section 162(m) Performance
Goals. “Performance Goals” shall mean the goal(s) (or
combined goal(s)) determined by the Committee (in its discretion) to be
applicable to an employee with respect to an award of restricted stock, stock
bonuses, restricted stock units and performance units. As determined by the
Committee, the Performance Goals applicable to an award may provide for a
targeted level or levels of achievement using one or more of the following
measures: (a) Operating Income, (b) Pretax Income, and (c) Return
on Sales. The Performance Goals may differ from employee to employee and from
award to award. Any criteria used may be measured, as applicable, (i) in
absolute terms, (ii) in relative terms (including, but not limited to,
passage of time and/or against another company or companies), (iii) on a
per-share basis, (iv) against the performance of the Company as a whole or
of a business unit of the Company, and/or (v) to the extent not otherwise
specified by the definition of the Performance Goal, on a pre-tax or after-tax
basis. Prior to the Determination Date, the Committee shall determine whether
any element(s) or item(s) shall be included in or excluded from the
calculation of any Performance Goal with respect to any Participants.

 

(i)     “Operating
Income” means the Company’s or a business unit’s income from operations
determined in accordance with generally accepted accounting principles.

 

(ii)    “Pretax
Income” means the Company’s or a business unit’s income before taxes,
determined in accordance with generally accepted accounting principles.

 

(iii)   “Return
on Sales” means the percentage equal to the Company’s or a business unit’s
Operating Income before incentive compensation, divided by the Company’s or the
business unit’s, as applicable, revenue, determined in accordance with
generally accepted accounting principles.

 

(d)   Section 162(m) Performance
Restrictions. For purposes of qualifying grants of restricted
stock, stock bonuses, restricted stock units and performance units as “performance-based
compensation” under Section 162(m) of the Code, the Committee, in its
discretion, may set restrictions based upon the achievement of Performance
Goals. The Performance Goals shall be set by the Committee on or before the
latest date permissible to enable the restricted stock, stock bonuses,
restricted stock units and performance units to qualify as “performance-based
compensation” under Section 162(m) of the Code. In granting
restricted stock, stock bonuses, restricted stock units and performance units
which are intended to qualify under Section 162(m) of the Code, the
Committee shall follow any procedures determined by it from time to time to be
necessary or appropriate to ensure qualification of the award under Section 162(m) of
the Code (e.g., in determining the Performance Goals).

 

(e)   Changes in Capitalization.
The numerical limitations in Sections 20(a) and 20(b) shall be
adjusted proportionately in connection with any change in the Company’s
capitalization as described in Section 14(a).

 

(f)    If an award is cancelled in the same calendar
year in which it was granted (other than in connection with a transaction
described in Section 14 of the Plan), the cancelled award will be counted
against the limits set forth in subsections (a) and (b) above. For
this purpose, if the exercise price of an option is reduced, the transaction
will be treated as a cancellation of the option and the grant of a new option.

 

Adopted: April 21,
1995

Approved by Shareholders: May 5, 1995

 

11

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