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		Exhibit 10.1

			

		

		
			STOCK EXCHANGE AGREEMENT

					

				

		

		
			          This STOCK EXCHANGE AGREEMENT (this “Agreement”) is dated as of April 27, 2007, by and among Material Technologies, Inc., a Delaware corporation (“Matech”) and Rocket City Automotive Group, Inc., a Florida corporation (“RCAU”).

				

				          WHEREAS, RCAU and Matech have determined that it is in the best interest of the each of them and their shareholders to arrange for the exchange of 4,000,000 shares of RCAU common stock for 10,000,000 shares of Matech common stock. 

				

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

				

			

		

		
			ARTICLE I

				

				PURCHASE AND SALE OF COMPANY STOCK

					

				

		

		
			          Section 1.1  Sale of Stock.  Subject to the terms and conditions herein stated, Matech hereby agrees to purchase from RCAU 4,000,000 shares (the “RCAU Shares”) of the common stock of RCAU, for a purchase price equal to 10,000,000 shares of the common stock of Matech (the “Matech Shares,” and, together with the RCAU Shares, the “Securities”).  All of the Securities shall be restricted shares, and shall bear appropriate legends as required by law.

				

				          Section 1.2  Exchange.  On the Closing Date, Matech shall deliver to RCAU a certificate, registered in the name of RCAU, representing 10,000,000 shares of Matech, and RCAU shall deliver to Matech one certificate, registered in the name of Matech, representing 4,000,000 shares each of RCAU common stock.

				

				          Section 1.3  Closing.  The closing of the transactions referred to in Section 1.1 hereof (the “Closing”) shall take place as of the date hereof, or at such other time as the parties may agree upon.  Such time and date are herein referred to as the “Closing Date.” 

				

			

		

		
			ARTICLE II

				

				REPRESENTATIONS OF MATECH

					

				

		

		
			          Matech represents and warrants to RCAU as follows:

				

				          Section 2.1  Matech Shares.  All of the shares of capital stock of Matech have been duly authorized.  The Matech Shares are free and clear of any liens or encumbrances of any type or nature whatsoever, and Matech has full right, power and authority to exchange the Matech Shares for RCAU shares without qualification. 

				

				

				

				

			

			

			

			

			

			

			          Section 2.2.  Corporate Status.  Matech is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and is licensed or qualified as a foreign corporation in all states in which the nature of their respective businesses or the character or ownership of their respective properties makes such licensing or qualification necessary.

			

			          Section 2.3  Authorization and Validity of Agreement.  Matech has full power and authority (corporate or otherwise) to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.  This Agreement has been duly executed and delivered by Matech and, assuming the due execution of this Agreement by RCAU, is a valid and binding obligation of Matech, enforceable against Matech in accordance with its terms, except to the extent that its enforceability may be subject to applicable bankruptcy, insolvency, reorganization and similar laws affecting the enforcement of creditors' rights generally and to general equitable principles.

			

			          Section 2.4  Consents and Approvals; No Violations.  The execution and delivery of this Agreement by Matech and the consummation by Matech of the exchange of the Securities as contemplated herein and the other transactions contemplated hereby (a) will not violate the provisions of the Articles of Incorporation or bylaws of Matech, (b) will not violate any statute, rule, regulation, order or decree of any public body or authority by which Matech is bound or by which any of their respective properties or assets are bound, and (c) will not result in a violation or breach of, conflict with, constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation, payment or acceleration) under, or result in the creation of any encumbrance upon any of the properties or assets of Matech under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, license, franchise, permit, agreement, lease, franchise agreement or any other instrument or obligation to which Matech is a party, or by which they or any of its properties or assets may be bound. 

			

		

		
			ARTICLE III

				

				REPRESENTATIONS OF RCAU

					

				

		

		
			          RCAU represents and warrants to Matech as follows:

				

				          Section 3.1  RCAU Shares.  All of the shares of capital stock of RCAU have been duly authorized.  The RCAU Shares are free and clear of any liens or encumbrances of any type or nature whatsoever, and RCAU has full right, power and authority to exchange the RCAU Shares for Matech shares without qualification. 

				

				          Section 3.2.  Corporate Status.  RCAU is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Florida and is licensed or qualified as a foreign corporation in all states in which the nature of their respective businesses or the character or ownership of their respective properties makes such licensing or qualification necessary.

				

				          Section 3.3  Authorization and Validity of Agreement.  RCAU has full power and authority (corporate or otherwise) to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby.  This Agreement 

				

				

				

			

			

			

			

			

			

			has been duly executed and delivered by RCAU and, assuming the due execution of this Agreement by RCAU, is a valid and binding obligation of RCAU, enforceable against RCAU in accordance with its terms, except to the extent that its enforceability may be subject to applicable bankruptcy, insolvency, reorganization and similar laws affecting the enforcement of creditors' rights generally and to general equitable principles.

			

			          Section 3.4  Consents and Approvals; No Violations.  The execution and delivery of this Agreement by RCAU and the consummation by RCAU of the exchange of the Securities as contemplated herein and the other transactions contemplated hereby (a) will not violate the provisions of the Articles of Incorporation or bylaws of RCAU, (b) will not violate any statute, rule, regulation, order or decree of any public body or authority by which RCAU is bound or by which any of their respective properties or assets are bound, and (c) will not result in a violation or breach of, conflict with, constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation, payment or acceleration) under, or result in the creation of any encumbrance upon any of the properties or assets of RCAU under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, license, franchise, permit, agreement, lease, franchise agreement or any other instrument or obligation to which RCAU is a party, or by which they or any of its properties or assets may be bound. 

			

		

		
			ARTICLE IV

				

				INVESTMENT AND PURCHASER REPRESENTATIONS

					

				

		

		
			          Section 4.1.  Investment Representations.  Each of Matech and RCAU hereby represents and warrants to the other that:

				

				                    (a)       Each has such knowledge and experience in financial and business matters so as to be capable of evaluating and understanding, and has evaluated and understood, the merits and risks of their respective investment in Matech and RCAU, as applicable (“the Companies”) and the acquisition of securities by Matech and RCAU, and each has been given the opportunity to (i) obtain information and to examine all documents relating to the Companies and the Companies’ business, to (ii) ask questions of, and to receive answers from, the Companies concerning the Companies, the Companies’ business and the terms and conditions of an investment in the Companies, and to (iii) obtain any additional information, to the extent the Companies possess such information or could acquire such information without unreasonable effort or expense, necessary to verify the accuracy of any information previously furnished.  All such questions have been answered to each of Matech’s and RCAU’s full satisfaction, and all information and documents, records and books pertaining to an investment in the Companies which each has requested have been made available to each.

				

				                    (b)       Each of Matech and RCAU is able to bear the substantial economic risks of it’s investment in the Companies and the purchase of securities of the Companies in that, among other factors, each can afford to hold securities of the respective Company for an indefinite period and can afford a complete loss of it’s investment in the respective Company.

				

				

				

			

			

			

			

			

			

			                    (c)       No material adverse change in either Matech’s or RCAU’s financial condition has taken place during the past twelve (12) months, and each will have sufficient liquidity with respect to its respective net worth for an adequate period of time to provide for it’s needs and contingencies.

			

			                    (d)       Each of Matech and RCAU is relying on the representations and warranties contained herein, and on the information provided by the Companies with respect to an investment in the Companies and the acquisition of securities of the Companies, and has neither received nor relied on any communication from any person or party other than the Companies with respect to the Shares of such Company.

			

			                    (e)       Each of Matech and RCAU recognizes that investments in the Companies involve substantial risks in that, among other factors: (i) successful operation of each Company depends on factors beyond the control of that Company; (ii) an investment in each Company is a speculative investment and involves a high degree of risk of loss; (iii) each Company is engaged in an industry which is highly competitive and subject to substantial risks relating to rapid technological change, fierce competition, uncertain markets and an uncertain customer base; (iv) retention of key employees is critical to each Company’s business; (v) each Company has a limited amount of working capital available to it; and (vi) there may be no liquid and significant public market for securities of either Company acquired by a party hereunder and, accordingly, it may not be possible to liquidate an investment in either Company in case of immediate need of funds or any other emergency, if at all.  Each party has taken full cognizance of, and understands, such risks and has obtained sufficient information to evaluate the merits and risks of an investment in the Companies and the acquisition of securities of the Companies.

			

			                    (f)       Each of Matech and RCAU confirms that none of the Companies’ officers nor any of the Company’s agents have made any warranties concerning an investment in either Company, including, without limitation, any warranties concerning anticipated financial results, or the likelihood of success of the operations, of either Company, other than those representations and warranties contained in this Agreement.

			

			                    (g)       Securities of the Companies are acquired by Matech and RCAU for each of its own account, for investment and not with a view to, or in connection with, any public offering or distribution of the same and without any present intention to sell the same at any particular event or circumstances.  Neither party has an agreement or other arrangement with any person to sell, transfer or pledge any part of securities of the Companies which would guarantee such party any profit or provide any guarantee to such party against any loss with respect to securities of the Companies.

			

			                    (h)       Each party understands that no federal, state or other governmental agency of the United States or any other territory or nation has passed on or made any recommendation or endorsement of an investment in securities of the Companies.

			

			                    (i)       Each party understands that securities of the Companies have not been registered under the United States Securities Act of 1933, as amended (the “Act”) or applicable state or other securities laws, and securities of the Companies are offered and sold under an

			

			

			

			

			

			

			

			

			

			exemption from registration provided by such laws and the rules and regulations thereunder; further, each party understands that none of the Companies is under no obligation to register securities of the Companies or to comply with any applicable exemption under any applicable securities laws with respect to securities of the Companies.  Each party must bear the economic risks of an investment in the Companies for an indefinite period of time because it is not anticipated that there will be any market for securities of the Companies and because securities of the Companies cannot be resold unless subsequently registered under applicable securities laws or unless an exemption from such registration is available.  Each party also understands that the exemption provided by Rule 144 under the Act may not be available because of the conditions and limitations of such Rule, and that in the absence of the availability of such Rule, any disposition by either party of any portion of securities of the Companies may require compliance with some other exemption under the Act.

			

			                    (j)       Purchaser has been informed that legends referring to the restrictions indicated herein are placed on the certificate(s) evidencing securities of the Companies held by either Matech or RCAU.

			

			                    (k)       Each of Matech and RCAU agrees that the foregoing representations and warranties will survive the sale of securities of the Companies to each, as well as any investigation made by any party relying on same.       

			

		

		
			ARTICLE V

				

				SURVIVAL OF REPRESENTATIONS

					

				

		

		
			          Section 5.1  Survival.  The representations and warranties of Articles III and IV shall survive the termination of this Agreement for a period of two years.

				

			

		

		
			ARTICLE VI

				

				MISCELLANEOUS

					

				

		

		
			          Section 6.1   Expenses.   Except as otherwise provided in this Agreement, each party to this Agreement will bear its respective fees and expenses incurred in connection with the preparation, negotiation, execution and performance of this Agreement and the transactions contemplated herein.   If this Agreement is terminated, the obligation of each party to pay its own fees and expenses will be subject to any rights of such party arising from a breach of this Agreement by another party.

				

				

				

				

				

			

		

		

		

		

		

		

		          Section 6.2   Waiver; Remedies Cumulative.   The rights and remedies of the parties to this Agreement are cumulative and not alternative.  Neither any failure nor any delay by any party in exercising any right, power or privilege under this Agreement or any of the documents referred to in this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege.   To the maximum extent permitted by applicable law, (a) no claim or right arising out of this Agreement or any of the documents referred to in this Agreement can be discharged by one party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other party; (b) no waiver that may be given by a party will be applicable except in the specific instance for which it is given; and (c) no notice to or demand on one party will be deemed to be a waiver of any obligation of that party or of the right of the party giving such notice or demand to take further action without notice or demand as provided in this Agreement or the documents referred to in this Agreement.

		

		          Section 6.3   Entire Agreement and Modification.   This Agreement supersedes all prior agreements, whether written or oral, between the parties with respect to its subject matter, and constitutes a complete and exclusive statement of the terms of the agreement between the parties with respect to its subject matter.   This Agreement may not be amended, supplemented, or otherwise modified except by a written agreement executed by the party to be charged with the amendment.

		

		          Section 6.4   Assignments, Successors and No Third-Party Rights.   No party may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of the other parties.  Subject to the preceding sentence, this Agreement will apply to, be binding in all respects upon and inure to the benefit of the successors and permitted assigns of the parties.   Nothing expressed or referred to in this Agreement will be construed to give any Person other than the parties to this Agreement any legal or equitable right, remedy or claim under or with respect to this Agreement or any provision of this Agreement, except such rights as shall inure to a successor or permitted assignee pursuant to this Section.

		

		          Section 6.5   Severability.   If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement will remain in full force and effect.  Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.

		

		          Section 6.6   Construction.   The headings of Articles and Sections in this Agreement are provided for convenience only and will not affect its construction or interpretation.   All references to “Articles” and “Sections” refer to the corresponding Articles and Sections of this Agreement.

		

		          Section 6.7   Time of Essence.   With regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence.

		

		

		

		

		

		

		

		

		

		          Section 6.8   Notices.   All notices, consents, waivers and other communications required or permitted by this Agreement shall be in writing and shall be deemed given to a party when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); (b) sent by facsimile or e-mail with confirmation of transmission by the transmitting equipment, so long as such facsimile or e-mail is followed by a copy sent by mail; or (c) received or rejected by the addressee, if sent by certified mail, return receipt requested, to such address, facsimile number, e-mail address or person as a party may designate by notice to the other parties).

		

		          Section 6.9  Governing Law; Consent to Jurisdiction.  (a)  The interpretation and construction of this Agreement, and all matters relating hereto, shall be governed by the laws of the State of California applicable to contracts made and to be performed entirely within the State of California.

		

		                    (b)       Any proceeding, action, litigation or claim (a “Proceeding”) arising out of or relating to this Agreement or any of the transactions contemplated herein may be brought in the courts of the State of California, County of Los Angeles, City of Santa Monica, or, if it has or can acquire jurisdiction, in the United States District Court for the Central District of California, and each of the parties irrevocably submits to the exclusive jurisdiction of each such court in any such Proceeding, waives any objection it may now or hereafter have to venue or to convenience of forum, agrees that all claims in respect of the Proceeding shall be heard and determined only in any such court and agrees not to bring any Proceeding arising out of or relating to this Agreement or any of the  transactions contemplated herein in any other court.   The parties agree that either or both of them may file a copy of this paragraph with any court as written evidence of the knowing, voluntary and bargained agreement between the parties irrevocably to waive any objections to venue or to convenience of forum.   Each party hereto hereby consents to process being served in any such action or proceeding by the mailing of a copy thereof to the address set forth opposite its name below and agrees that such service upon receipt shall constitute good and sufficient service of process or notice thereof.   Nothing in this paragraph shall affect or eliminate any right to serve process in any other manner permitted by law.

		

		

		

		

		

		

		

		

		

		

		

		

		

		          Section 6.10  WAIVER OF JURY TRIAL.   THE PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.  THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.  TO THE EXTENT THIS JURY WAIVER IS NOT ENFORCEABLE, THEN ANY DISPUTE ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL BE RESOLVED BY BINDING ARBITRATION CONDUCTED IN SANTA MONICA, CALIFORNIA UNDER THE JAMS ARBITRATION RULES.

		

		          Section 6.11  Execution of Agreement.   This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.  The exchange of copies of this Agreement and of signature pages by facsimile transmission shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes.  Signatures of the parties transmitted by facsimile shall be deemed to be their original signatures for all purposes.

		

		          IN WITNESS WHEREOF, each of the parties has caused this Stock Purchase Agreement to be executed all as of the day and year first above written.

		

		
				
						Rocket City Automotive Group, Inc.,

							a Florida corporation

							

							

							By: ________________________ 

							      Name:

							      Title:

						

						

						

						

						
						Material Technologies, Inc.,

							a Delaware corporation

							

							
By: _____________________ 

							      Name:

							      Title:ex10_1.htm

    
      

    

     

    EXHIBIT
      10.1

     

    
      2005
        Executive Incentive Compensation Plan

       

      Huttig
        Building Products, Inc.

       

      Effective
        March 15, 2005, as Amended and Restated Effective February 27,
        2007

       

       

      
        
           

        

        
          A
            -
            1

          
            

          

        

        
          
          

        

      

      Contents

       

      
        	
                Article 1.

              	
                Establishment,
                  Purpose, and Duration

              	
                A-1

              
	
                Article 2.

              	
                Definitions

              	
                A-1

              
	
                Article 3.

              	
                Administration

              	
                A-5

              
	
                Article 4.

              	
                Shares
                  Subject to This Plan and Maximum
                  Awards

              	
                A-5

              
	
                Article 5.

              	
                Eligibility
                  and Participation

              	
                A-7

              
	
                Article 6.

              	
                Stock
                  Options

              	
                A-7

              
	
                Article 7.

              	
                Stock
                  Appreciation Rights

              	
                A-8

              
	
                Article 8.

              	
                Restricted
                  Stock and Restricted Stock Units

              	
                A-9

              
	
                Article 9.

              	
                Performance
                  Units/Performance Shares

              	
                A-11

              
	
                Article 10.

              	
                Other
                  Stock-Based Awards

              	
                A-11

              
	
                Article 11.

              	
                Transferability
                  of Awards

              	
                A-12

              
	
                Article 12.

              	
                Performance
                  Measures

              	
                A-12

              
	
                Article 13.

              	
                Covered
                  Employee Incentive Award

              	
                A-13

              
	
                Article 14.

              	
                Dividend
                  Equivalents

              	
                A-14

              
	
                Article 15.

              	
                Beneficiary
                  Designation

              	
                A-14

              
	
                Article 16.

              	
                Rights
                  of Participants

              	
                A-15

              
	
                Article 17.

              	
                Change
                  of Control

              	
                A-15

              
	
                Article 18.

              	
                Amendment,
                  Modification, Suspension, and
                  Termination

              	
                A-15

              
	
                Article 19.

              	
                Withholding

              	
                A-16

              
	
                Article 20.

              	
                Successors

              	
                A-16

              
	
                Article 21.

              	
                General
                  Provisions

              	
                A-16

              

      

      

        
          
             

          

          
            A
              -
              2

            
              

            

          

          
            Table
              of Contents

          

        

      

       

      Huttig
        Building Products, Inc.

      2005
        Executive Incentive Compensation Plan

      

      Article
        1. Establishment, Purpose, and Duration

       

      1.1
        Establishment. Huttig Building Products, Inc., a Delaware corporation
        (hereinafter referred to as the “Company”), has established an incentive
        compensation plan known as the Huttig Building Products, Inc. 2005 Executive
        Incentive Compensation Plan (hereinafter referred to as the ”Plan”), effective
        originally as of March 15, 2005 (the “Effective Date”). This Plan permits
        the grant of Nonqualified Stock Options, Incentive Stock Options, Stock
        Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance
        Shares, Performance Units, Covered Employee Incentive Awards, and Other
        Stock-Based Awards. The Plan, as amended and restated herein, has been approved
        to be effective as of February 27, 2007, subject to the approval of the
        restated Plan by the stockholders of the Company, and shall remain in effect
        as
        provided in Section 1.3 hereof.

       

      1.2
        Purpose of this Plan. The purpose of this Plan is to provide a means
        whereby Eligible Persons develop a sense of proprietorship and personal
        involvement in the development and financial success of the Company, and
        to
        encourage them to devote their best efforts to the business of the Company,
        thereby advancing the interests of the Company and its stockholders. A further
        purpose of this Plan is to provide a means through which the Company may
        attract
        able Eligible Persons as service providers and to provide a means whereby
        those
        individuals upon whom the responsibilities of the successful administration
        and
        management of the Company are of importance, can acquire and maintain stock
        ownership, thereby strengthening their concern for the welfare of the
        Company.

       

      1.3
        Duration of this Plan. Unless sooner terminated as provided herein,
        this Plan shall terminate ten (10) years from the Effective Date. After
        this Plan is terminated, no Awards may be granted but Awards previously granted
        shall remain outstanding in accordance with their applicable terms and
        conditions and this Plan’s terms and conditions.

       

      Article
        2. Definitions

       

      Whenever
        used in this Plan, the following terms shall have the meanings set forth
        below,
        and when the meaning is intended, the initial letter of the word shall be
        capitalized.

       

      
        	
                 

              	
                2.1

              	
                “Affiliate”
                  shall mean any corporation or other entity (including, but not
                  limited to,
                  a partnership or a limited liability company) that is affiliated
                  with the
                  Company through stock or equity ownership or otherwise, and is
                  designated
                  as an Affiliate for purposes of this Plan by the
                  Committee.

              

      

       

      
        	
                 

              	
                2.2

              	
                “Annual
                  Award Limit” or“Annual Award Limits” have the
                  meaning set forth in
                  Section 4.3.

              

      

       

      
        	
                 

              	
                2.3

              	
                “Award”
                  means, individually or collectively, a grant under this Plan of
                  Nonqualified Stock Options, Incentive Stock Options, SARs, Restricted
                  Stock, Restricted Stock Units, Performance Shares, Performance
                  Units,
                  Covered Employee Incentive Awards, or Other Stock-Based Awards,
                  in each
                  case subject to the terms of this
                  Plan.

              

      

       

      
        	
                 

              	
                2.4

              	
                “Award
                  Agreement” means either: (i) a written agreement entered
                  into by the Company and a Participant setting forth the terms and
                  provisions applicable to an Award granted under this Plan, or (ii) a
                  written or electronic statement issued by the Company to a Participant
                  describing the terms and provisions of such Award, including any
                  amendment
                  or modification thereof.

              

      

       

      
        	
                 

              	
                2.5

              	
                “Beneficial
                  Owner” or “Beneficial Ownership” shall have the
                  meaning ascribed to such term in Rule 13d-3 of the General Rules
                  and
                  Regulations under the Exchange Act.

              

      

      

      
        	
                 

              	
                2.6

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

              

      

      

        
          
             

          

          
            A
              -
              1

            
              

            

          

          
            Table
              of Contents

          

        

      

       

      
        	
                 

              	
                2.7

              	
                “Change
                  in Control” of the Company means, and shall be deemed to have
                  occurred upon, the first to occur of any of the following events
                  after the
                  Effective Date: (a) the first purchase of shares pursuant to a tender
                  offer or exchange offer (other than a tender offer or exchange
                  offer by
                  the Company) for all or part of the Shares or any securities convertible
                  into such Shares, (b) the receipt by the Company of a Schedule 13D or
                  other advice indicating that a person is the “beneficial owner” (as that
                  term is defined in Rule 13d-3 under the Exchange Act) of 20% or
                  more of
                  the Shares calculated as provided in paragraph (d) of said Rule
                  13d-3, (c) the date of consummation of any merger, reorganization,
                  consolidation, share exchange, transfer of assets or other transaction
                  having similar effect involving the Company (“Business Transaction”) in
                  which the Company will not be the continuing or surviving corporation
                  or
                  pursuant to which Shares would be converted into cash, securities
                  or other
                  property, other than a Business Transaction in which the holders
                  of the
                  Shares immediately prior to the Business Transaction would own
                  more than
                  50% of the common stock of the surviving corporation immediately
                  after the
                  Business Transaction, (d) the date of consummation of any sale,
                  lease, exchange or other transfer (in one transaction or a series
                  of
                  related transactions) of all or substantially all the assets of
                  the
                  Company, (e) the adoption of any plan or proposal for the liquidation
                  (but not a partial liquidation) or dissolution of the Company,
                  or
                  (f) the date upon which the individuals who constitute the Board as
                  of the Effective Date (the “Incumbent Board”) cease for any reason to
                  constitute at least a majority of the Board, provided that any
                  person
                  becoming a director subsequent to such date whose election, or
                  nomination
                  for election by the Company’s stockholders, was approved by a vote of at
                  least three-quarters of the directors comprising the Incumbent
                  Board
                  (other than an election or nomination of an individual whose initial
                  assumption of office is in connection with an actual or threatened
                  election contest relating to the election of the Directors of the
                  Company)
                  shall, for purposes of this Plan, be considered as though such
                  person were
                  a member of the Incumbent Board.

              

      

       

      
        	
                 

              	
                2.8

              	
                “Code”
                  means the U.S. Internal Revenue Code of 1986, as amended from time
                  to
                  time, or any successor thereto. For purposes of this Plan, references
                  to
                  sections of the Code shall be deemed to include references to any
                  applicable regulations thereunder and any successor or similar
                  provision.

              

      

       

      
        	
                 

              	
                2.9

              	
                “Committee”
                  means the Compensation Committee of the Board or a subcommittee
                  thereof,
                  or any other committee designated by the Board to administer this
                  Plan.
                  The members of the Committee shall be appointed from time to time
                  by and
                  shall serve at the discretion of the Board. If the Committee does
                  not
                  exist or cannot function for any reason, the Board may take any
                  action
                  under the Plan that would otherwise be the responsibility of the
                  Committee.

              

      

       

      
        	
                 

              	
                2.10

              	
                “Company”
                  means Huttig Building Products, Inc., a Delaware corporation, and
                  any
                  successor thereto as provided in Article 20
                  herein.

              

      

       

      
        	
                 

              	
                2.11

              	
                “Consolidated
                  Operating Earnings” means the consolidated earnings before income
                  taxes of the Company, computed in accordance with generally accepted
                  accounting principles, but shall exclude the effects of Extraordinary
                  Items.

              

      

       

      
        	
                 

              	
                2.12

              	
                “Covered
                  Employee” means any key Employee who is or may become (as
                  determined by the Committee in its discretion) a “Covered Employee,” as
                  defined in Section 162(m) of the Code, or any successor
                  statute.

              

      

       

      
        	
                 

              	
                2.13

              	
                “Covered
                  Employee Incentive Award” means an Award granted to a Covered
                  Employee as described in Article
                  13.

              

      

       

      
        	
                 

              	
                2.14

              	
                “Effective
                  Date” has the meaning set forth in
                  Section 1.1.

              

      

       

      
        	
                 

              	
                2.15

              	
                “Eligible
                  Person” means any person designated as an employee of the
                  Company, its Affiliates, and/or its Subsidiaries on the payroll
                  records
                  thereof or any individual who is classified or treated by the Company,
                  Affiliate, and/or Subsidiary as an independent contractor or
                  consultant.

              

      

       

      
        	
                 

              	
                2.16

              	
                “Exchange
                  Act” means the Securities Exchange Act of 1934, as amended
                  from
                  time to time, or any successor act
                  thereto.

              

      

      

        
          
             

          

          
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                2.17

              	
                “Extraordinary
                  Items” means (i) extraordinary, unusual, and/or nonrecurring
                  items of gain or loss; (ii) gains or losses on the disposition of a
                  business; (iii) changes in tax or accounting regulations or laws; or
                  (iv) the effect of a merger or acquisition, all of which must be
                  identified in the audited financial statements, including footnotes,
                  or
                  Management Discussion and Analysis section of the Company’s annual
                  report.

              

      

       

      
        	
                 

              	
                2.18

              	
                “Fair
                  Market Value” or “FMV” means a price that is
                  based on the opening, closing, actual, high, low, or average selling
                  prices of a Share reported on the New York Stock Exchange (“NYSE”) or
                  other established stock exchange (or exchanges) on the applicable
                  date,
                  the preceding trading day, the next succeeding trading day, or
                  an average
                  of trading days, as determined by the Committee in its discretion.
                  Unless
                  the Committee determines otherwise, if the Shares are traded over
                  the
                  counter at the time a determination of its Fair Market Value is
                  required
                  to be made hereunder, its Fair Market Value shall be deemed to
                  be equal to
                  the average between the reported high and low, closing bid and
                  asked, or
                  opening and closing prices of a Share on the most recent date on
                  which
                  Shares were publicly traded. In the event Shares are not publicly
                  traded
                  at the time a determination of their value is required to be made
                  hereunder, the determination of their Fair Market Value shall be
                  made by
                  the Committee in such manner as it deems appropriate. Such definition(s)
                  of FMV shall be specified in each Award Agreement and may differ
                  depending
                  on whether FMV is in reference to the grant, exercise, vesting,
                  settlement, or payout of an Award.

              

      

       

      
        	
                 

              	
                2.19

              	
                “Freestanding
                  SAR” means an SAR that is granted independently of any Options,
                  as described in Article 7.

              

      

       

      
        	
                 

              	
                2.20

              	
                “Full
                  Value Award” means an Award other than in the form of an ISO,
                  NQSO, or SAR, and which is settled by the issuance of
                  Shares.

              

      

       

      
        	
                 

              	
                2.21

              	
                “Grant
                  Price” means the price established at the time of grant of a
                  SAR
                  pursuant to Article 7, used to determine whether there is any payment
                  due
                  upon exercise of the SAR.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.22

              	
                “Incentive
                  Stock Option” or “ISO” means an Option to
                  purchase Shares granted under Article 6 to an Employee and that
                  is
                  designated as an Incentive Stock Option and that is intended to
                  meet the
                  requirements of Code Section 422, or any successor
                  provision.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.23

              	
                “Insider”
                  shall mean an individual who is, on the relevant date, an officer,
                  or
                  Director of the Company, or a more than ten percent (10%) Beneficial
                  Owner of any class of the Company’s equity securities that is registered
                  pursuant to Section 12 of the Exchange Act, as determined by the
                  Board in accordance with Section 16 of the Exchange
                  Act.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.24

              	
                “Net
                  Income” means the consolidated net income before taxes for this
                  Plan Year, as reported in the Company’s annual report to stockholders or
                  as otherwise reported to
                  stockholders.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.25

              	
                “Nonqualified
                  Stock Option” or “NQSO” means an Option that is
                  not intended to meet the requirements of Code Section 422, or that
                  otherwise does not meet such
                  requirements.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.26

              	
                “Operating
                  Cash Flow” means cash flow from operating activities as defined
                  in SFAS Number 95, Statement of Cash
                  Flows.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.27

              	
                “Option”
                  means an Incentive Stock Option or a Nonqualified Stock Option,
                  as
                  described in Article 6.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.28

              	
                “Option
                  Price” means the price at which a Share may be purchased by
                  a
                  Participant pursuant to an Option.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.29

              	
                “Other
                  Stock-Based Award” means an equity-based or equity-related Award
                  not otherwise described by the terms of this Plan, granted pursuant
                  to
                  Article 10.

              

      

      
        	
                 

              	
                 

              

      

      
        
           

        

        
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                2.30

              	
                “Participant”
                  means any Eligible Person as set forth in Article 5 to whom an
                  Award is
                  granted.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.31

              	
                “Performance-Based
                  Compensation” means compensation under an Award that satisfies
                  the requirements of Section 162(m) of the Code and the applicable
                  treasury regulations thereunder for certain performance-based compensation
                  paid to Covered Employees. Notwithstanding the foregoing, nothing
                  in this
                  Plan shall be construed to mean that an Award which does not satisfy
                  the
                  requirements for performance-based compensation under Code
                  Section 162(m) does not constitute performance-based compensation for
                  other purposes, including Code
                  Section 409A.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.32

              	
                “Performance
                  Measures” means measures as described in Article 12 on which the
                  performance goals are based and which are approved by the Company’s
                  stockholders pursuant to this Plan in order to qualify Awards as
                  Performance-Based Compensation.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.33

              	
                “Performance
                  Period” means the period of time during which the performance
                  goals must be met in order to determine the amount payable to,
                  and/or the
                  Participant’s vested interest with respect to an
                  Award.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.34

              	
                “Performance
                  Share” means an Award under Article 9 herein and subject to
                  the
                  terms of this Plan, denominated in Shares, the value of which at
                  the time
                  it is payable is determined as a function of the extent to which
                  corresponding performance criteria have been
                  achieved.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.35

              	
                “Performance
                  Unit” means an Award under Article 9 herein and subject to
                  the
                  terms of this Plan, denominated in units, the value of which at
                  the time
                  it is payable is determined as a function of the extent to which
                  corresponding performance criteria have been
                  achieved.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.36

              	
                “Period
                  of Restriction” means the period when Restricted Stock or
                  Restricted Stock Units are subject to a substantial risk of forfeiture
                  (based on the passage of time, the achievement of performance goals,
                  or
                  upon the occurrence of other events as determined by the Committee,
                  in its
                  discretion), as provided in Article
                  8.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.37

              	
                “Person”
                  shall have the meaning ascribed to such term in
                  Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and
                  14(d) thereof, including a “group” as defined in Section 13(d)
                  thereof.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.38

              	
                “Plan”
                  means the Huttig Building Products, Inc. 2005 Executive Incentive
                  Compensation Plan, as it may be amended from time to
                  time.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.39

              	
                “Plan
                  Year” means the calendar
                  year.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.40

              	
                “Prior
                  Plans” means the Huttig Building Products, Inc. 1999 Stock
                  Incentive Plan, as amended, and the Huttig Building Products, Inc.
                  2001
                  Stock Incentive Plan, as amended.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.41

              	
                “Restricted
                  Stock” means an Award granted to a Participant pursuant to
                  Article 8.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.42

              	
                “Restricted
                  Stock Unit” means an Award granted to a Participant pursuant to
                  Article 8, with respect to which Shares are awarded upon the satisfaction
                  or lapse of the restrictions applicable
                  thereto.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.43

              	
                “Share”
                  means a share of common stock of the Company, $.01 par value per
                  share.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.44

              	
                “Stock
                  Appreciation Right” or “SAR” means an Award,
                  designated as a SAR, pursuant to the terms of Article 7
                  herein.

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                2.45

              	
                “Subsidiary”
                  means any corporation or other entity, whether domestic or foreign,
                  in
                  which the Company has or obtains, directly or indirectly, a proprietary
                  interest of more than fifty percent (50%) by reason of stock
                  ownership or otherwise.

              

      

      
        	
                 

              	
                 

              

      

      
        
           

        

        
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                2.46

              	
                “Tandem
                  SAR” means an SAR that is granted in connection with a related
                  Option pursuant to Article 7 herein, the exercise of which shall
                  require
                  forfeiture of the right to purchase a Share under the related Option
                  (and
                  when a Share is purchased under the Option, the Tandem SAR shall
                  similarly
                  be canceled).

              

      

       

      Article
        3. Administration

       

      3.1
        General. The Committee shall be responsible for administering this
        Plan, subject to this Article 3 and the other provisions of this Plan. The
        Committee may employ attorneys, consultants, accountants, agents, and other
        individuals, any of whom may be an Employee, and the Committee, the Company,
        and
        its officers and Directors shall be entitled to rely upon the advice, opinions,
        or valuations of any such individuals. All actions taken and all interpretations
        and determinations made by the Committee shall be final and binding upon
        the
        Participants, the Company, and all other interested individuals.

       

      3.2
        Authority of the Committee. The Committee shall have full and exclusive
        discretionary power to interpret the terms and the intent of this Plan and
        any
        Award Agreement or other agreement or document ancillary to or in connection
        with this Plan, to determine eligibility for Awards and to adopt such rules,
        regulations, forms, instruments, and guidelines for administering this Plan
        as
        the Committee may deem necessary or proper. Such authority shall include,
        but
        not be limited to, selecting Award recipients, establishing all Award terms
        and
        conditions, including the terms and conditions set forth in Award Agreements,
        granting Awards as an alternative to or as the form of payment for grants
        or
        rights earned or due under compensation plans or arrangements of the Company,
        and, subject to Article 18, adopting modifications and amendments to this
        Plan
        or any Award Agreement, including without limitation, any that are necessary
        to
        comply with the laws of the countries and other jurisdictions in which the
        Company, its Affiliates, and/or its Subsidiaries operate.

       

      3.3
        Delegation. To the extent permitted under applicable law, the Committee
        may delegate to one or more of its members or to one or more officers or
        employees of the Company, and/or its Subsidiaries and Affiliates or to one
        or
        more agents or advisors such administrative duties or powers as it may deem
        advisable, and the Committee or any individuals to whom it has delegated
        duties
        or powers as aforesaid may employ one or more individuals to render advice
        with
        respect to any responsibility the Committee or such individuals may have
        under
        this Plan. The Committee may, by resolution, authorize one or more officers
        of
        the Company to do one or both of the following on the same basis as can the
        Committee: (a) designate Employees to be recipients of Awards; and
        (b) determine the size of any such Awards; provided, however, (i) the
        Committee shall not delegate such responsibilities to any such officer for
        Awards granted to an Employee who is considered an Insider; (ii) the
        resolution providing such authorization sets forth the total number of Awards
        such officer(s) may grant; and (iii) the officer(s) shall report
        periodically to the Committee regarding the nature and scope of the Awards
        granted pursuant to the authority delegated. In the event of any delegation
        of
        authority under this Section 3.3, or exercise of authority by the Board,
        references in the Plan to the Committee shall be deemed to refer, as applicable,
        to the delegate of the Committee or to the Board.

       

      Article
        4. Shares Subject to This Plan and Maximum
        Awards

       

      4.1
        Number of Shares Available for Awards.

       

      
        	
                 

              	
                (a)

              	
                Subject
                  to adjustment as provided in Section 4.4 herein, the maximum number
                  of Shares available for issuance to Participants under this Plan
                  on or
                  after the Effective Date (the “Share Authorization”) shall be
                  1,425,000.

              

      

       

      
        	
                 

              	
                (b)

              	
                Of
                  the Shares reserved for issuance under Section 4.1(a) of this Plan,
                  all of the reserved Shares may be issued pursuant to Full Value
                  Awards.

              

      

       

      
        	
                 

              	
                (c)

              	
                Subject
                  to the limit set forth in Section 4.1(a) on the number of Shares that
                  may be issued in the aggregate under this Plan, the maximum number
                  of
                  Shares that may be issued pursuant to ISOs shall be
                  1,425,000.

              

      

      

        
          
             

          

          
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      4.2
        Share Usage. Shares covered by an Award shall only be counted as used
        to the extent they are actually issued. Any Shares related to Awards which
        terminate by expiration, forfeiture, cancellation, or otherwise without the
        issuance of such Shares, are settled in cash in lieu of Shares, or are exchanged
        with the Committee’s permission, prior to the issuance of Shares, for Awards not
        involving Shares, shall be available again for grant under this Plan. Moreover,
        if the Option Price of any Option granted under this Plan or the tax withholding
        requirements with respect to any Award granted under this Plan are satisfied
        by
        tendering Shares to the Company (by either actual delivery or by attestation),
        or if an SAR is exercised, only the number of Shares issued, net of the Shares
        tendered, if any, will be deemed delivered for purposes of determining the
        maximum number of Shares available for delivery under this Plan. Shares covered
        by awards granted under the Prior Plans that after the Effective Date are
        terminated unexercised, forfeited or otherwise surrendered shall be available
        for subsequent Awards under this Plan. The Shares available for issuance
        under
        this Plan may be authorized and unissued Shares or treasury Shares.

       

      4.3
        Annual Award Limits. Unless and until the Committee determines that an
        Award to a Covered Employee shall not be designed to qualify as
        Performance-Based Compensation, the following limits (each an “Annual Award
        Limit” and, collectively, “Annual Award Limits”) shall apply to grants of such
        Awards under this Plan:

       

      
        	
                 

              	
                (a)

              	
                Options.
                  The maximum aggregate number of Shares subject to Options granted
                  in any
                  one Plan Year to any one Participant shall be 200,000 plus the
                  amount of
                  the Participant’s unused applicable Annual Award Limit for Options as of
                  the close of the previous Plan
                  Year.

              

      

      

      
        	
                 

              	
                (b)

              	
                SARs.
                  The maximum number of Shares subject to Stock Appreciation Rights
                  granted
                  in any one Plan Year to any one Participant shall be 200,000 plus
                  the
                  amount of the Participant’s unused applicable Annual Award Limit for SARs
                  as of the close of the previous Plan
                  Year.

              

      

      

      
        	
                 

              	
                (c)

              	
                Restricted
                  Stock or Restricted Stock Units. The maximum aggregate grant with
                  respect to Awards of Restricted Stock or Restricted Stock Units
                  in any one
                  Plan Year to any one Participant shall be 100,000 plus the amount
                  of the
                  Participant’s unused applicable Annual Award Limit for Restricted Stock or
                  Restricted Stock Units as of the close of the previous Plan
                  Year.

              

      

      

      
        	
                 

              	
                (d)

              	
                Performance
                  Units or Performance Shares. The maximum aggregate Award of
                  Performance Units or Performance Shares that a Participant may
                  receive in
                  any one Plan Year shall be 100,000 Shares, or equal to the value
                  of
                  100,000 Shares determined as of the date of vesting or payout,
                  as
                  applicable plus the amount of the Participant’s unused applicable Annual
                  Award Limit for Performance Units or Performance Shares as of the
                  close of
                  the previous Plan Year.

              

      

      

      
        	
                 

              	
                (e)

              	
                Covered
                  Employee Incentive Award. The maximum aggregate amount awarded or
                  credited in any one Plan Year with respect to a Covered Employee
                  Incentive
                  Award shall be determined in accordance with Article
                  13.

              

      

      

      
        	
                 

              	
                (f)

              	
                Other
                  Stock-Based Awards. The maximum aggregate grant with respect to
                  other Stock-Based Awards pursuant to Section 10.2 in any one Plan
                  Year to any one Participant shall be 100,000 plus the amount of
                  the
                  Participant’s unused applicable Annual Award Limit for Other Stock-Based
                  Awards as of the close of the previous Plan
                  Year.

              

      

       

      4.4
        Adjustments in Authorized Shares. In the event of any corporate event
        or transaction (including, but not limited to, a change in the Shares of
        the
        Company or the capitalization of the Company) such as a merger, consolidation,
        reorganization, recapitalization, separation, stock dividend, stock split,
        reverse stock split, split up, spin-off, or other distribution of stock or
        property of the Company, combination of Shares, exchange of Shares, dividend
        in
        kind, or other like change in capital structure or distribution (other than
        normal cash dividends) to stockholders of the Company, or any similar corporate
        event or transaction, the Committee, in its sole discretion, in order to
        prevent
        dilution or enlargement of Participants’ rights under this Plan, shall
        substitute or adjust, in an equitable manner, as applicable, the number and
        kind
        of Shares that may be issued under this Plan or under particular forms of
        Awards, the number and kind of Shares subject to outstanding Awards, the
        Option
        Price or Grant Price applicable to outstanding Awards, the Annual Award Limits,
        and other value determinations applicable to outstanding
        Awards.

      
        
           

        

        
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      The
        Committee, in its sole discretion, may also make appropriate adjustments
        in the
        terms of any Awards under this Plan to reflect or related to such changes
        or
        distributions and to modify any other terms of outstanding Awards, including
        modifications of performance goals and changes in the length of Performance
        Periods. The determination of the Committee as to the foregoing adjustments,
        if
        any, shall be conclusive and binding on Participants under this
        Plan.

       

      Subject
        to the provisions of Article 20 and any applicable law or regulatory
        requirement, without affecting the number of Shares reserved or available
        hereunder, the Committee may authorize the issuance, assumption, substitution,
        or conversion of Awards under this Plan in connection with any merger,
        consolidation, acquisition of property or stock, or reorganization upon such
        terms and conditions as it may deem appropriate, subject to compliance with
        the
        ISO rules under Section 422 of the Code, where applicable.

       

      Article
        5. Eligibility and Participation

       

      5.1
        Eligibility. Individuals eligible to participate in this Plan include
        all Eligible Persons.

       

      5.2
        Actual Participation. Subject to the provisions of this Plan, the
        Committee may, from time to time, select from all Eligible Persons, those
        individuals to whom Awards shall be granted and shall determine, in its sole
        discretion, the nature of, any and all terms permissible by law, and the
        amount
        of each Award.

       

      Article
        6. Stock Options

       

      6.1
        Grant of Options. Subject to the terms and provisions of this Plan,
        Options may be granted to Participants in such number, and upon such terms,
        and
        at any time and from time to time as shall be determined by the Committee,
        in
        its sole discretion; provided that ISOs may be granted only to Eligible Persons
        who are employees of the Company or of any parent or subsidiary corporation
        (as
        permitted by Section 422 of the Code and the treasury regulations
        thereunder). However, an Eligible Person who is employed by an Affiliate
        and/or
        Subsidiary and is subject to Code Section 409A, may only be granted Options
        to the extent the Affiliate and/or Subsidiary is part of the Company’s
        consolidated group for United States federal tax purposes.

       

      6.2
        Award Agreement. Each Option grant shall be evidenced by an Award
        Agreement that shall specify the Option Price, the maximum duration of the
        Option, the number of Shares to which the Option pertains, the conditions
        upon
        which an Option shall become vested and exercisable, and such other provisions
        as the Committee shall determine which are not inconsistent with the terms
        of
        this Plan. The Award Agreement also shall specify whether the Option is intended
        to be an ISO or a NQSO.

       

      6.3
        Option Price. The Option Price for each grant of an Option under this
        Plan shall be determined by the Committee, in its discretion, and shall be
        specified in the Award Agreement; provided, however, the Option Price on
        the
        date of grant must be at least equal to one hundred percent (100%) of the
        FMV of the Shares on the date of grant.

       

      6.4
        Term of Options. Each Option granted to a Participant shall expire at
        such time as the Committee shall determine at the time of grant; provided,
        however, no Option shall be exercisable later than the tenth (10th) anniversary
        date of its grant.

       

      6.5
        Exercise of Options. Options granted under this Article 6 shall be
        exercisable at such times and be subject to such restrictions and conditions
        as
        the Committee shall in each instance approve, which terms and restrictions
        need
        not be the same for each grant or for each Participant.

      

        
          
             

          

          
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      6.6
        Payment. Options granted under this Article 6 shall be exercised by the
        delivery of a notice of exercise to the Company or an agent designated by
        the
        Company in a form specified or accepted by the Committee, or by complying
        with
        any alternative procedures which may be authorized by the Committee, setting
        forth the number of Shares with respect to which the Option is to be exercised,
        accompanied by full payment for the Shares.

       

      A
        condition of the issuance of the Shares as to which an Option shall be exercised
        shall be the payment of the Option Price. The Option Price of any Option
        shall
        be payable to the Company in full either: (a) in cash or its equivalent;
        (b) by tendering (either by actual delivery or attestation) previously
        acquired Shares having an aggregate Fair Market Value at the time of exercise
        equal to the Option Price (provided that except as otherwise determined by
        the
        Committee, the Shares that are tendered must have been held by the Participant
        for at least six (6) months (or such other period, if any, as the Committee
        may permit) prior to their tender to satisfy the Option Price if acquired
        under
        this Plan or any other compensation plan maintained by the Company or have
        been
        purchased on the open market); (c) by a combination of (a) and (b); or
        (d) any other method approved or accepted by the Committee in its sole
        discretion, including, without limitation, if the Committee so determines,
        a
        cashless (broker-assisted) exercise.

       

      Subject
        to any governing rules or regulations, as soon as practicable after receipt
        of
        written notification of exercise and full payment (including satisfaction
        of any
        applicable tax withholding), the Company shall deliver to the Participant
        evidence of book entry Shares, or upon the Participant’s request, Share
        certificates in an appropriate amount based upon the number of Shares purchased
        under the Option(s).

       

      Unless
        otherwise determined by the Committee, all payments under all of the methods
        indicated above shall be paid in United States dollars.

       

      6.7
        Restrictions on Share Transferability. The Committee may impose such
        restrictions on any Shares acquired pursuant to the exercise of an Option
        granted under this Article 6 as it may deem advisable, including, without
        limitation, minimum holding period requirements, restrictions under applicable
        federal securities laws, under the requirements of any stock exchange or
        market
        upon which such Shares are then listed and/or traded, or under any blue sky
        or
        state securities laws applicable to such Shares.

       

      6.8
        Termination of Employment. Each Participant’s Award Agreement shall set
        forth the extent to which the Participant shall have the right to exercise
        the
        Option following termination of the Participant’s employment or provision of
        services to the Company, its Affiliates, and/or its Subsidiaries, as the
        case
        may be. Such provisions shall be determined in the sole discretion of the
        Committee, shall be included in the Award Agreement entered into with each
        Participant, need not be uniform among all Options issued pursuant to this
        Article 6, and may reflect distinctions based on the reasons for
        termination.

       

      6.9
        Notification of Disqualifying Disposition. If any Participant shall
        make any disposition of Shares acquired pursuant to the exercise of an ISO
        under
        the circumstances described in Section 421(b) of the Code (relating to
        certain disqualifying dispositions), such Participant shall notify the Company
        of such disposition within ten (10) days thereof.

       

      Article
        7. Stock Appreciation Rights

       

      7.1
        Grant of SARs. Subject to the terms and conditions of this Plan, SARs
        may be granted to Participants at any time and from time to time as shall
        be
        determined by the Committee. The Committee may grant Freestanding SARs, Tandem
        SARs, or any combination of these forms of SARs. However, an Employee who
        is
        employed by an Affiliate and/or Subsidiary and is subject to Code
        Section 409A, may only be granted SARs to the extent the Affiliate and/or
        Subsidiary is part of the Company’s consolidated group for United States federal
        tax purposes.

       

      Subject
        to the terms and conditions of this Plan, the Committee shall have complete
        discretion in determining the number of SARs granted to each Participant
        and,
        consistent with the provisions of this Plan, in determining the terms and
        conditions pertaining to such SARs.

      
        
           

        

        
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      The
        Grant
        Price for each grant of a Freestanding SAR shall be determined by the Committee
        and shall be specified in the Award Agreement; provided, however, the Grant
        Price on the date of grant must be at least equal to one hundred percent
        (100%) of the FMV of the Shares on the date of grant. The Grant Price of
        Tandem SARs shall be equal to the Option Price of the related
        Option.

       

      7.2
        SAR Agreement. Each SAR Award shall be evidenced by an Award Agreement
        that shall specify the Grant Price, the term of the SAR, and such other
        provisions as the Committee shall determine.

       

      7.3
        Term of SAR. The term of an SAR granted under this Plan shall be
        determined by the Committee, in its sole discretion, and except as determined
        otherwise by the Committee and specified in the SAR Award Agreement, no SAR
        shall be exercisable later than the tenth (10th) anniversary
        date of its grant.

       

      7.4
        Exercise of Freestanding SARs. Freestanding SARs may be exercised upon
        whatever terms and conditions the Committee, in its sole discretion,
        imposes.

       

      7.5
        Exercise of Tandem SARs. Tandem SARs may be exercised for all or part
        of the Shares subject to the related Option upon the surrender of the right
        to
        exercise the equivalent portion of the related Option. A Tandem SAR may be
        exercised only with respect to the Shares for which its related Option is
        then
        exercisable.

       

      Notwithstanding
        any other provision of this Plan to the contrary, with respect to a Tandem
        SAR
        granted in connection with an ISO: (a) the Tandem SAR will expire no later
        than the expiration of the underlying ISO; (b) the value of the payout with
        respect to the Tandem SAR may be for no more than one hundred percent
        (100%) of the excess of the Fair Market Value of the Shares subject to the
        underlying ISO at the time the Tandem SAR is exercised over the Option Price
        of
        the underlying ISO; and (c) the Tandem SAR may be exercised only when the
        Fair Market Value of the Shares subject to the ISO exceeds the Option Price
        of
        the ISO.

      

      7.6
        Settlement of SAR Amount. Upon the exercise of an SAR, a Participant
        shall be entitled to receive payment from the Company in an amount determined
        by
        multiplying:

      

      
        	
                 

              	
                (a)

              	
                The
                  excess of the Fair Market Value of a Share on the date of exercise
                  over
                  the Grant Price; by

              

      

      

      
        	
                 

              	
                (b)

              	
                The
                  number of Shares with respect to which the SAR is
                  exercised.

              

      

      

      The
        payment upon SAR exercise shall be in Shares.

      

      7.7
        Termination of Employment. Each Award Agreement shall set forth the
        extent to which the Participant shall have the right to exercise the SAR
        following termination of the Participant’s employment with or provision of
        services to the Company, its Affiliates, and/or its Subsidiaries, as the
        case
        may be. Such provisions shall be determined in the sole discretion of the
        Committee, shall be included in the Award Agreement entered into with
        Participants, need not be uniform among all SARs issued pursuant to this
        Plan,
        and may reflect distinctions based on the reasons for termination.

      

      7.8
        Other Restrictions. The Committee shall impose such other conditions
        and/or restrictions on any Shares received upon exercise of a SAR granted
        pursuant to this Plan as it may deem advisable or desirable. These restrictions
        may include, but shall not be limited to, a requirement that the Participant
        hold the Shares received upon exercise of a SAR for a specified period of
        time.

      

      Article
        8. Restricted Stock and Restricted Stock
        Units

      

      8.1
        Grant of Restricted Stock or Restricted Stock Units. Subject to the
        terms and provisions of this Plan, the Committee, at any time and from time
        to
        time, may grant Shares of Restricted Stock and/or Restricted Stock Units
        to
        Participants in such amounts as the Committee shall determine. Restricted
        Stock
        Units shall be similar to Restricted Stock except that no Shares are actually
        awarded to the Participant on the date of grant. Restricted Stock Units
        represent the right to receive Shares in the future subject to the achievement
        of one or more goals relating to the completion of service by the Participant
        and/or the achievement of performance or other objectives.

      
        
           

        

        
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      8.2
        Restricted Stock or Restricted Stock Unit Agreement. Each Restricted
        Stock and/or Restricted Stock Unit grant shall be evidenced by an Award
        Agreement that shall specify the Period(s) of Restriction, the number of
        Shares
        of Restricted Stock or the number of Restricted Stock Units granted, and
        such
        other provisions as the Committee shall determine.

       

      8.3
        Other Restrictions. The Committee shall impose such other conditions
        and/or restrictions on any Shares of Restricted Stock or Restricted Stock
        Units
        granted pursuant to this Plan as it may deem advisable including, without
        limitation, a requirement that Participants pay a stipulated purchase price
        for
        each Share of Restricted Stock or each Restricted Stock Unit, restrictions
        based
        upon the achievement of specific performance goals, time-based restrictions
        on
        vesting following the attainment of the performance goals, time-based
        restrictions, and/or restrictions under applicable laws or under the
        requirements of any stock exchange or market upon which such Shares are listed
        or traded, or holding requirements or sale restrictions placed on the Shares
        by
        the Company upon vesting of such Restricted Stock or Restricted Stock
        Units.

       

      To
        the
        extent deemed appropriate by the Committee, the Company may retain the
        certificates representing Shares of Restricted Stock in the Company’s possession
        until such time as all conditions and/or restrictions applicable to such
        Shares
        have been satisfied or lapse.

       

      Except
        as
        otherwise provided in this Article 8, Shares of Restricted Stock covered
        by each
        Restricted Stock Award shall become freely transferable by the Participant
        after
        all conditions and restrictions applicable to such Shares have been satisfied
        or
        lapse (including satisfaction of any applicable tax withholding obligations),
        and Restricted Stock Units shall be paid in cash, Shares, or a combination
        of
        cash and Shares as the Committee, in its sole discretion shall
        determine.

       

      8.4
        Certificate Legend. In addition to any legends placed on certificates
        pursuant to Section 8.3, each certificate representing Shares of Restricted
        Stock granted pursuant to this Plan may bear a legend such as the following
        or
        as otherwise determined by the Committee in its sole discretion:

       

      The
        sale
        or transfer of Shares of stock represented by this certificate, whether
        voluntary, involuntary, or by operation of law, is subject to certain
        restrictions on transfer as set forth in the Huttig Building Products, Inc.
        2005
        Executive Incentive Compensation Plan, and in the associated Award Agreement.
        A
        copy of this Plan and such Award Agreement may be obtained from Huttig Building
        Products, Inc.

       

      8.5
        Voting Rights. Unless otherwise determined by the Committee and set
        forth in a Participant’s Award Agreement, to the extent permitted or required by
        law, as determined by the Committee, Participants holding Shares of Restricted
        Stock granted hereunder may be granted the right to exercise full voting
        rights
        with respect to those Shares during the Period of Restriction. A Participant
        shall have no voting rights with respect to any Restricted Stock Units granted
        hereunder.

       

      8.6
        Termination of Employment. Each Award Agreement shall set forth the
        extent to which the Participant shall have the right to retain Restricted
        Stock
        and/or Restricted Stock Units following termination of the Participant’s
        employment with or provision of services to the Company, its Affiliates,
        and/or
        its Subsidiaries, as the case may be. Such provisions shall be determined
        in the
        sole discretion of the Committee, shall be included in the Award Agreement
        entered into with each Participant, need not be uniform among all Shares
        of
        Restricted Stock or Restricted Stock Units issued pursuant to this Plan,
        and may
        reflect distinctions based on the reasons for termination.

       

      8.7
        Section 83(b) Election. The Committee may provide in an Award
        Agreement that the Award of Restricted Stock is conditioned upon the Participant
        making or refraining from making an election with respect to the Award under
        Section 83(b) of the Code. If a Participant makes an election pursuant to
        Section 83(b) of the Code concerning a Restricted Stock Award, the
        Participant shall be required to file promptly a copy of such election with
        the
        Company.

      
        
           

        

        
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      Article
        9. Performance Units/Performance Shares

       

      9.1
        Grant of Performance Units/Performance Shares. Subject to the terms and
        provisions of this Plan, the Committee, at any time and from time to time,
        may
        grant Performance Units and/or Performance Shares to Participants in such
        amounts and upon such terms as the Committee shall determine.

       

      9.2
        Value of Performance Units/Performance Shares. Each Performance Unit
        shall have an initial value that is established by the Committee at the time
        of
        grant. Each Performance Share shall have an initial value equal to the Fair
        Market Value of a Share on the date of grant. The Committee shall set
        performance goals in its discretion which, depending on the extent to which
        they
        are met, will determine the value and/or number of Performance Units/Performance
        Shares that will be paid out to the Participant.

       

      9.3
        Earning of Performance Units/Performance Shares. Subject to the terms
        of this Plan, after the applicable Performance Period has ended, the holder
        of
        Performance Units/Performance Shares shall be entitled to receive payout
        on the
        value and number of Performance Units/Performance Shares earned by the
        Participant over the Performance Period, to be determined as a function of
        the
        extent to which the corresponding performance goals have been
        achieved.

       

      9.4
        Form and Timing of Payment of Performance Units/Performance Shares.
        Payment of earned Performance Units/Performance Shares shall be as determined
        by
        the Committee and as evidenced in the Award Agreement. Subject to the terms
        of
        this Plan, the Committee, in its sole discretion, may pay earned Performance
        Units/Performance Shares in the form of cash or in Shares (or in a combination
        thereof) equal to the value of the earned Performance Units/Performance Shares
        at the close of the applicable Performance Period, or as soon as practicable
        after the end of the Performance Period. Any Shares may be granted subject
        to
        any restrictions deemed appropriate by the Committee. The determination of
        the
        Committee with respect to the form of payout of such Awards shall be set
        forth
        in the Award Agreement pertaining to the grant of the Award.

       

      9.5
        Termination of Employment. Each Award Agreement shall set forth the
        extent to which the Participant shall have the right to retain Performance
        Units
        and/or Performance Shares following termination of the Participant’s employment
        with or provision of services to the Company, its Affiliates, and/or its
        Subsidiaries, as the case may be. Such provisions shall be determined in
        the
        sole discretion of the Committee, shall be included in the Award Agreement
        entered into with each Participant, need not be uniform among all Awards
        of
        Performance Units or Performance Shares issued pursuant to this Plan, and
        may
        reflect distinctions based on the reasons for termination.

       

      Article
        10. Other Stock-Based Awards

       

      10.1
        Other Stock-Based Awards. The Committee may grant other types of
        equity-based or equity-related Awards not otherwise described by the terms
        of
        this Plan (including the grant or offer for sale of unrestricted Shares)
        in such
        amounts and subject to such terms and conditions, as the Committee shall
        determine. Such Awards may involve the transfer of actual Shares to
        Participants, or payment in cash or otherwise of amounts based on the value
        of
        Shares and may include, without limitation, Awards designed to comply with
        or
        take advantage of the applicable local laws of jurisdictions other than the
        United States.

       

      10.2
        Value of Other Stock-Based Awards. Each Other Stock-Based Award shall
        be expressed in terms of Shares or units based on Shares, as determined by
        the
        Committee. The Committee may establish performance goals in its discretion.
        If
        the Committee exercises its discretion to establish performance goals, the
        number and/or value of Other Stock-Based Awards that will be paid out to
        the
        Participant will depend on the extent to which the performance goals are
        met.

       

      10.3
        Payment of Other Stock-Based Awards. Payment, if any, with respect to
        an Other Stock-Based Award shall be made in accordance with the terms of the
        Award, in cash or Shares as the Committee determines.

       

      10.4
        Termination of Employment. The Committee shall determine the extent to
        which the Participant shall have the right to receive Other Stock-Based Awards
        following termination of the Participant’s employment with or provision of
        services to the Company, its Affiliates, and/or its Subsidiaries, as the
        case
        may be. Such provisions shall be determined in the sole discretion of the
        Committee, such provisions may be included in an Award Agreement entered
        into
        with each Participant, but need not be uniform among all Awards of Other
        Stock-Based Awards issued pursuant to this Plan, and may reflect distinctions
        based on the reasons for termination.

      
        
           

        

        
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      Article
        11. Transferability of Awards

       

      11.1
        Transferability. Except as provided in Section 11.2 below, during
        a Participant’s lifetime, his or her Awards shall be exercisable only by the
        Participant. Awards shall not be transferable other than by will or the laws
        of
        descent and distribution; no Awards shall be subject, in whole or in part,
        to
        attachment, execution, or levy of any kind; and any purported transfer in
        violation hereof shall be null and void.

       

      11.2
        Committee Action. The Committee may, in its discretion, determine that
        notwithstanding Section 11.1, any or all Awards (other than ISOs) shall be
        transferable to and exercisable by such transferees, and subject to such
        terms
        and conditions, as the Committee may deem appropriate; provided, however,
        that
        only the Participant to which the Award had been granted, a “family member” (as
        defined below in Section 11.4 below) of such Participant, or a charity may
        be a transferee of such Award. Such a determination may be made at the time
        an
        Award is granted or at any time thereafter.

       

      11.3
        Domestic Relations Orders. Without limiting the generality of
        Section 11.1, and notwithstanding Section 11.2, no domestic relations
        order purporting to authorize a transfer of an Award shall be recognized
        as
        valid.

       

      11.4
        Family Member. For purposes of Section 11.2, “family member” shall
        mean a Participant’s child, stepchild, grandchild, parent, stepparent,
        grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law,
        father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
        including adoptive relationships, any person sharing the Participant’s household
        (other than a tenant of the Participant), a trust in which these persons
        (or the
        Participant) have more than fifty percent (50%) of the beneficial interest,
        a foundation in which these persons (or the Participant) control the management
        of assets, and any other entity in which these persons (or the Participant)
        own
        more than fifty percent (50%) of the voting interests.

       

      Article
        12. Performance Measures

       

      12.1
        Performance Measures. Unless and until the Committee proposes for
        stockholder vote and the stockholders approve a change in the general
        Performance Measures set forth in this Article 12, the performance goals
        upon
        which the payment or vesting of an Award to a Covered Employee
(other than a Covered Employee Incentive Award awarded or
        credited pursuant to Article 13) that is intended to qualify as
        Performance-Based Compensation shall be limited to the following Performance
        Measures:

       

      
        	
                 

              	
                (a)

              	
                Net
                  earnings or net income (before or after
                  taxes);

              

      

       

      
        	
                 

              	
                (b)

              	
                Earnings
                  per share;

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (c)

              	
                Net
                  sales or revenue growth;

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (d)

              	
                Net
                  operating profit (before or after
                  taxes);

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (e)

              	
                Return
                  measures (including, but not limited to, return on assets, capital,
                  invested capital, equity, sales, or
                  revenue);

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (f)

              	
                Cash
                  flow (including, but not limited to, operating cash flow, free
                  cash flow,
                  cash flow return on equity, and cash flow return on
                  investment);

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (g)

              	
                Earnings
                  before or after taxes, interest, depreciation, and/or
                  amortization;

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (h)

              	
                Gross
                  or operating margins;

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (i)

              	
                Productivity
                  ratios;

              

      

      
        	
                 

              	
                 

              

      

      
        
           

        

        
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                (j)

              	
                Share
                  price (including, but not limited to, growth measures and total
                  stockholder return);

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (k)

              	
                Expense
                  targets;

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (l)

              	
                Margins;

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (m)

              	
                Operating
                  efficiency;

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (n)

              	
                Market
                  share;

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (o)

              	
                Customer
                  satisfaction;

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (p)

              	
                Working
                  capital targets; and

              

      

      
        	
                 

              	
                 

              

      

      
        	
                 

              	
                (q)

              	
                Economic
                  value added or EVA®
                  (net
                  operating profit after tax minus the sum of capital multiplied
                  by the cost
                  of capital).

              

      

       

      Any
        Performance Measure(s) may be used to measure the performance of the Company,
        Subsidiary, and/or Affiliate as a whole or any business unit of the Company,
        Subsidiary, and/or Affiliate or any combination thereof, as the Committee
        may
        deem appropriate, or any of the above Performance Measures as compared to
        the
        performance of a group of comparator companies, or published or special index
        that the Committee, in its sole discretion, deems appropriate, or the Company
        may select Performance Measure (j) above as compared to various stock
        market indices. The Committee also has the authority to provide for accelerated
        vesting of any Award based on the achievement of performance goals pursuant
        to
        the Performance Measures specified in this Article 12.

       

      12.2
        Evaluation of Performance. The Committee may provide in any such Award
        that any evaluation of performance may include or exclude any of the following
        events that occurs during a Performance Period: (a) asset write-downs,
        (b) litigation or claim judgments or settlements, (c) the effect of
        changes in tax laws, accounting principles, or other laws or provisions
        affecting reported results, (d) any reorganization and restructuring
        programs, (e) extraordinary nonrecurring items as described in Accounting
        Principles Board Opinion No. 30 and/or in management’s discussion and
        analysis of financial condition and results of operations appearing in the
        Company’s annual report to stockholders for the applicable year,
        (f) acquisitions or divestitures, and (g) foreign exchange gains and
        losses. To the extent such inclusions or exclusions affect Awards to Covered
        Employees, they shall be prescribed in a form that meets the requirements
        of
        Code Section 162(m) for deductibility.

       

      12.3
        Adjustment of Performance-Based Compensation. Awards that are intended
        to qualify as Performance-Based Compensation may not be adjusted upward.
        The
        Committee shall retain the discretion to adjust such Awards downward, either
        on
        a formula or discretionary basis or any combination, as the Committee
        determines.

       

      12.4
        Committee Discretion. In the event that applicable tax and/or
        securities laws change to permit Committee discretion to alter the governing
        Performance Measures without obtaining stockholder approval of such changes,
        the
        Committee shall have sole discretion to make such changes without obtaining
        stockholder approval. In addition, in the event that the Committee determines
        that it is advisable to grant Awards that shall not qualify as Performance-Based
        Compensation, the Committee may make such grants without satisfying the
        requirements of Code Section 162(m) and base vesting on Performance
        Measures other than those set forth in Section 12.1.

       

      Article
        13. Covered Employee Incentive Award

       

      13.1
        Eligibility. The Committee may designate Covered Employees who are
        eligible to receive a monetary payment under this Article 13.

      
        
           

        

        
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      13.2
        Performance Targets. The Committee may establish objective performance
        targets for one or more designated Performance Periods based on specified
        levels
        of one or more of the Performance Measures. Such performance targets shall
        be
        established by the Committee on a timely basis to ensure that the targets
        are
        considered “preestablished” for purposes of Section 162(m) of the Code. The
        Committee may, in its discretion, make appropriate adjustments in the
        Performance Measures established for a particular Performance Period to take
        account of the effect of any unforeseen events that occur during such period.
        In
        addition to establishing the performance targets, the Committee may establish
        such other terms and conditions applicable to Covered Employee Incentive
        Awards
        as it may determine in its sole discretion.

       

      13.3
        Amounts of Awards. In conjunction with the establishment of performance
        targets for a Performance Period, the Committee shall adopt an objective
        formula
        (on the basis of percentages of Covered Employees’ salaries, shares in a bonus
        pool or otherwise) for computing the respective amounts payable under the
        Plan
        to Covered Employees if and to the extent that the performance targets are
        attained. Such formula shall comply with the requirements applicable to
        performance-based compensation plans under Section 162(m) of the Code and,
        to the extent based on percentages of a bonus pool, such percentages shall
        not
        exceed 100% in the aggregate. For any calendar year, no Covered Employee
        shall
        be granted a Covered Employee Incentive Award in respect of more than $2
        million
        in cash; provided, however, that any Covered Employee Incentive Award earned
        or
        payable over a period of more than one calendar year shall be pro-rated over
        the
        applicable Performance Period in determining the application of the foregoing
        limit to such Award.

       

      13.4
        Payment of Awards. No Covered Employee Incentive Award shall be payable
        until the Committee has certified in writing that the specified performance
        targets have been attained. Covered Employee Incentive Awards will be payable
        to
        Covered Employees in cash following the end of the applicable Performance
        Period
        at such time and in such form as the Committee shall determine.

       

      13.5
        Negative Discretion. Notwithstanding the attainment by the Company of
        the specified performance targets, the Committee shall have the discretion,
        which need not be exercised uniformly among the Participants, to reduce or
        eliminate the Award that would be otherwise paid.

       

      13.6
        Guidelines. The Committee may adopt from time to time written policies
        for its implementation of this Article 13. Such guidelines shall reflect
        the
        intention of the Company that all payments hereunder qualify as
        performance-based compensation under Section 162(m) of the
        Code.

       

      13.7
        Non-Exclusive Arrangement. The adoption and operation of this Article
        13 shall not preclude the Board or the Committee from approving other incentive
        compensation arrangements for the benefit of individuals who are Covered
        Employees hereunder as the Board or Committee, as the case may be, deems
        appropriate and in the best interests of the Company.

       

      Article
        14. Dividend Equivalents

       

      Any
        Participant selected by the Committee may be granted dividend equivalents
        based
        on the dividends declared on Shares that are subject to any Award, other
        than an
        Option or SAR, to be credited as of dividend payment dates, during the period
        between the date the Award is granted and the date the Award is exercised,
        vests
        or expires, as determined by the Committee. The dividend equivalents may
        be
        subject to any limitations and/or restrictions determined by the Committee.
        Such
        dividend equivalents shall be converted to cash or additional Shares by such
        formula and at such time and subject to such limitations as may be determined
        by
        the Committee.

       

      Article
        15. Beneficiary Designation

       

      Each
        Participant under this Plan may, from time to time, name any beneficiary
        or
        beneficiaries (who may be named contingently or successively) to whom any
        benefit under this Plan is to be paid in case of his death before he receives
        any or all of such benefit. Each such designation shall revoke all prior
        designations by the same Participant, shall be in a form prescribed by the
        Committee, and will be effective only when filed by the Participant in writing
        with the Company during the Participant’s lifetime. In the absence of any such
        beneficiary designation, benefits remaining unpaid or rights remaining
        unexercised at the Participant’s death shall be paid or exercised by the
        Participant’s executor, administrator, or legal representative.

      
        
           

        

        
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      Article
        16. Rights of Participants

       

      16.1
        Employment. Nothing in this Plan or an Award Agreement shall interfere
        with or limit in any way the right of the Company, its Affiliates, and/or
        its
        Subsidiaries to terminate any Participant’s employment at any time or for any
        reason not prohibited by law, nor confer upon any Participant any right to
        continue his employment for any specified period of time.

       

      Neither
        an Award nor any benefits arising under this Plan shall constitute an employment
        contract with the Company, its Affiliates, and/or its Subsidiaries and,
        accordingly, subject to Articles 3 and 18, this Plan and the benefits hereunder
        may be terminated at any time in the sole and exclusive discretion of the
        Committee without giving rise to any liability on the part of the Company,
        its
        Affiliates, and/or its Subsidiaries.

       

      16.2
        Participation. No individual shall have the right to be selected to
        receive an Award under this Plan, or, having been so selected, to be selected
        to
        receive a future Award.

       

      16.3
        Rights as a Stockholder. Except as otherwise provided herein, a
        Participant shall have none of the rights of a stockholder with respect to
        Shares covered by any Award until the Participant becomes the record holder
        of
        such Shares.

       

      Article
        17. Change of Control

       

      17.1
        Change of Control of the Company. Notwithstanding any other provision
        of this Plan to the contrary, the provisions of this Article 17 shall apply
        in
        the event of a Change of Control, unless otherwise specifically prohibited
        under
        applicable laws, or by the rules and regulations of any governing governmental
        agencies or national securities exchanges, or unless otherwise determined
        by the
        Committee in connection with the grant of an Award as reflected in the
        applicable Award Agreement.

       

      Upon
        a
        Change of Control, all then-outstanding Stock Options and Stock Appreciation
        Rights shall become fully vested and exercisable, and all then-outstanding
        Restricted Stock and Restricted Stock Units shall vest in full and be free
        of
        restrictions. The treatment of any other Awards shall be as determined by
        the
        Committee in connection with the grant thereof, as reflected in the applicable
        Award Agreement.

       

      Article
        18. Amendment, Modification, Suspension, and
        Termination

       

      18.1
        Amendment, Modification, Suspension, and Termination. Subject to
        Section 18.3, the Committee or Board may, at any time and from time to
        time, alter, amend, modify, suspend, or terminate this Plan and any Award
        Agreement in whole or in part; provided, however, that, without the prior
        approval of the Company’s stockholders and except as provided in
        Section 4.4, (i) neither the Option Price of an Option nor the Grant
        Price of an SAR may be lowered, (ii) a new Award may not be granted in
        exchange for the cancellation of an outstanding Award, and (iii) no Option
        or SAR for which the Option Price or Grant Price, as applicable, is less
        than
        the Fair Market Value of the Shares underlying the Option or SAR, may be
        cancelled in exchange for a cash payment. In addition, no amendment of this
        Plan
        shall be made without stockholder approval if stockholder approval is required
        by law, regulation, or stock exchange rule, including, but not limited to,
        the
        Exchange Act, the Code and, if applicable, the New York Stock Exchange Listed
        Company Manual.

       

      18.2
        Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
        Events. The Committee shall make equitable and appropriate adjustments
        in the terms and conditions of, and the criteria included in, Awards in
        recognition of unusual or nonrecurring events (including, without limitation,
        the events described in Section 4.4 hereof) affecting the Company or the
        financial statements of the Company or of changes in applicable laws,
        regulations, or accounting principles, whenever the Committee determines
        that
        such adjustments are appropriate in order to prevent unintended dilution
        or
        enlargement of the benefits or potential benefits intended to be made available
        under this Plan. The determination of the Committee as to the foregoing
        adjustments, if any, shall be conclusive and binding on Participants under
        this
        Plan.

      
        
           

        

        
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      18.3
        Awards Previously Granted. Notwithstanding any other provision of this
        Plan to the contrary (other than Section 18.4), no termination, amendment,
        suspension, or modification of this Plan or an Award Agreement shall adversely
        affect in any material way any Award previously granted under this Plan,
        without
        the written consent of the Participant holding such Award.

       

      18.4
        Amendment to Conform to Law. Notwithstanding any other provision of
        this Plan to the contrary, the Board of Directors may amend the Plan or an
        Award
        Agreement, to take effect retroactively or otherwise, as deemed necessary
        or
        advisable for the purpose of conforming the Plan or an Award Agreement to
        any
        present or future law relating to plans of this or similar nature (including,
        but not limited to, Code Section 409A), and to the administrative
        regulations and rulings promulgated thereunder.

       

      Article
        19. Withholding

       

      19.1
        Tax Withholding. The Company shall have the power and the right to
        deduct or withhold, or require a Participant to remit to the Company, the
        minimum statutory amount to satisfy federal, state, and local taxes, domestic
        or
        foreign, required by law or regulation to be withheld with respect to any
        taxable event arising as a result of this Plan.

       

      19.2
        Share Withholding. With respect to withholding required upon the
        exercise of Options or SARs, upon the lapse of restrictions on Restricted
        Stock
        and Restricted Stock Units, or upon the achievement of performance goals
        related
        to Performance Shares, or any other taxable event arising as a result of
        an
        Award granted hereunder, Participants may elect, subject to the approval
        of the
        Committee, to satisfy the withholding requirement, in whole or in part, by
        having the Company withhold Shares having a Fair Market Value on the date
        the
        tax is to be determined equal to the minimum statutory total tax that could
        be
        imposed on the transaction. All such elections shall be irrevocable, made
        in
        writing, and signed by the Participant, and shall be subject to any restrictions
        or limitations that the Committee, in its sole discretion, deems
        appropriate.

       

      Article
        20. Successors

       

      All
        obligations of the Company under this Plan with respect to Awards granted
        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.

       

      Article
        21. General Provisions

       

      21.1
        Forfeiture Events.

       

      
        	
                 

              	
                (a)

              	
                The
                  Committee may specify in an Award Agreement that the Participant’s rights,
                  payments, and benefits with respect to an Award shall be subject
                  to
                  reduction, cancellation, forfeiture, or recoupment upon the occurrence
                  of
                  certain specified events, in addition to any otherwise applicable
                  vesting
                  or performance conditions of an Award. Such events may include,
                  but shall
                  not be limited to, termination of employment for cause, termination
                  of the
                  Participant’s provision of services to the Company, Affiliate, and/or
                  Subsidiary, violation of material Company, Affiliate, and/or Subsidiary
                  policies, breach of noncompetition, confidentiality, or other restrictive
                  covenants that may apply to the Participant, or other conduct by
                  the
                  Participant that is detrimental to the business or reputation of
                  the
                  Company, its Affiliates, and/or its
                  Subsidiaries.

              

      

       

      
        	
                 

              	
                (b)

              	
                If
                  the Company is required to prepare an accounting restatement due
                  to the
                  material noncompliance of the Company, as a result of misconduct,
                  with any
                  financial reporting requirement under the securities laws, if the
                  Participant knowingly or grossly negligently engaged in the misconduct,
                  or
                  knowingly or grossly negligently failed to prevent the misconduct,
                  or if
                  the Participant is one of the individuals subject to automatic
                  forfeiture
                  under Section 304 of the Sarbanes-Oxley Act of 2002, the Participant
                  shall reimburse the Company the amount of any payment in settlement
                  of an
                  Award earned or accrued during the twelve- (12-) month period following
                  the first public issuance or filing with the United States Securities
                  and
                  Exchange Commission (whichever just occurred) of the financial
                  document
                  embodying such financial reporting
                  requirement.

              

      

      
        
           

        

        
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      21.2
        Legend. The certificates for Shares may include any legend which the
        Committee deems appropriate to reflect any restrictions on transfer of such
        Shares.

       

      21.3
        Gender and Number. Except where otherwise indicated by the context, any
        masculine term used herein also shall include the feminine, the plural shall
        include the singular, and the singular shall include the plural.

       

      21.4
        Severability. In the event any provision of this Plan shall be held
        illegal or invalid for any reason, the illegality or invalidity shall not
        affect
        the remaining parts of this Plan, and this Plan shall be construed and enforced
        as if the illegal or invalid provision had not been included.

       

      21.5
        Requirements of Law. The granting of Awards and the issuance of Shares
        under this Plan shall be subject to all applicable laws, rules, and regulations,
        and to such approvals by any governmental agencies or national securities
        exchanges as may be required.

       

      21.6
        Delivery of Title. The Company shall have no obligation to issue or
        deliver evidence of title for Shares issued under this Plan prior
        to:

       

      
        	
                 

              	
                (a)

              	
                Obtaining
                  any approvals from governmental agencies that the Company determines
                  are
                  necessary or advisable; and

              

      

       

      
        	
                 

              	
                (b)

              	
                Completion
                  of any registration or other qualification of the Shares under any
                  applicable national or foreign law or ruling of any governmental
                  body that
                  the Company determines to be necessary or
                  advisable.

              

      

       

      21.7
        Inability to Obtain Authority. The inability of the Company to obtain
        authority from any regulatory body having jurisdiction, which authority is
        deemed by the Company’s counsel to be necessary to the lawful issuance and sale
        of any Shares hereunder, shall relieve the Company of any liability in respect
        of the failure to issue or sell such Shares as to which such requisite authority
        shall not have been obtained.

       

      21.8
        Investment Representations. The Committee may require any individual
        receiving Shares pursuant to an Award under this Plan to represent and warrant
        in writing that the individual is acquiring the Shares for investment and
        without any present intention to sell or distribute such Shares.

       

      21.9
        Employees Based Outside of the United States. Notwithstanding any
        provision of this Plan to the contrary, in order to comply with the laws
        in
        other countries in which the Company, its Affiliates, and/or its Subsidiaries
        operate or have Employees, the Committee, in its sole discretion, shall have
        the
        power and authority to:

       

      
        	
                 

              	
                (a)

              	
                Determine
                  which Affiliates and Subsidiaries shall be covered by this
                  Plan;

              

      

      

      
        	
                 

              	
                (b)

              	
                Determine
                  which Employees outside the United States are eligible to participate
                  in
                  this Plan;

              

      

      

      
        	
                 

              	
                (c)

              	
                Modify
                  the terms and conditions of any Award granted to Employees outside
                  the
                  United States to comply with applicable foreign
                  laws;

              

      

      

      
        	
                 

              	
                (d)

              	
                Establish
                  subplans and modify exercise procedures and other terms and procedures,
                  to
                  the extent such actions may be necessary or advisable. Any subplans
                  and
                  modifications to Plan terms and procedures established under this
                  Section 21.9 by the Committee shall be attached to this Plan document
                  as appendices; and

              

      

      

      
        	
                 

              	
                (e)

              	
                Take
                  any action, before or after an Award is made, that it deems advisable
                  to
                  obtain approval or comply with any necessary local government regulatory
                  exemptions or approvals.

              

      

      
        
           

        

        
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      Notwithstanding
        the above, the Committee may not take any actions hereunder, and no Awards
        shall
        be granted, that would violate applicable law.

       

      21.10
        Uncertificated Shares. To the extent that this Plan provides for
        issuance of certificates to reflect the transfer of Shares, the transfer
        of such
        Shares may be effected on a noncertificated basis, to the extent not prohibited
        by applicable law or the rules of any stock exchange.

       

      21.11
        Unfunded Plan. Participants shall have no right, title, or interest
        whatsoever in or to any investments that the Company, and/or its Subsidiaries,
        and/or its Affiliates may make to aid it in meeting its obligations under
        this
        Plan. Nothing contained in this Plan, and no action taken pursuant to its
        provisions, shall create or be construed to create a trust of any kind, or
        a
        fiduciary relationship between the Company and any Participant, beneficiary,
        legal representative, or any other individual. To the extent that any person
        acquires a right to receive payments from the Company, its Subsidiaries,
        and/or
        its Affiliates under this Plan, such right shall be no greater than the right
        of
        an unsecured general creditor of the Company, a Subsidiary, or an Affiliate,
        as
        the case may be. All payments to be made hereunder shall be paid from the
        general funds of the Company, a Subsidiary, or an Affiliate, as the case
        may be
        and no special or separate fund shall be established and no segregation of
        assets shall be made to assure payment of such amounts except as expressly
        set
        forth in this Plan.

       

      21.12
        No Fractional Shares. No fractional Shares shall be issued or delivered
        pursuant to this Plan or any Award. The Committee shall determine whether
        cash,
        Awards, or other property shall be issued or paid in lieu of fractional Shares
        or whether such fractional Shares or any rights thereto shall be forfeited
        or
        otherwise eliminated.

       

      21.13
        Retirement and Welfare Plans. Neither Awards made under this Plan nor
        Shares or cash paid pursuant to such Awards, except pursuant to Covered Employee
        Incentive Awards, may be included as “compensation” for purposes of computing
        the benefits payable to any Participant under the Company’s or any Subsidiary’s
        or Affiliate’s retirement plans (both qualified and nonqualified) or welfare
        benefit plans unless such other plan expressly provides that such compensation
        shall be taken into account in computing a Participant’s benefit.

       

      21.14
        No Deferred Compensation. No deferral of compensation (as defined under
        Code Section 409A or guidance thereto) shall be permitted under this Plan.
        However, the Committee may permit deferrals of compensation pursuant to a
        separate plan or a subplan which meets the requirements of Code
        Section 409A and the regulations thereunder. Additionally, to the extent
        any Award is subject to Code Section 409A, notwithstanding any provision
        herein to the contrary, the Plan does not permit the acceleration of the
        time or
        schedule of any distribution related to such Award, except as permitted by
        Code
        Section 409A, the regulations thereunder, and/or the Secretary of the
        United States Treasury.

       

      21.15
        Nonexclusivity of this Plan. The adoption of this Plan shall not be
        construed as creating any limitations on the power of the Board or Committee
        to
        adopt such other compensation arrangements as it may deem desirable for any
        Participant.

       

      21.16
        No Constraint on Corporate Action. Nothing in this Plan shall be
        construed to: (i) limit, impair, or otherwise affect the Company’s or a
        Subsidiary’s or an Affiliate’s right or power to make adjustments,
        reclassifications, reorganizations, or changes of its capital or business
        structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer
        all or any part of its business or assets; or, (ii) limit the right or
        power of the Company or a Subsidiary or an Affiliate to take any action which
        such entity deems to be necessary or appropriate.

       

      21.17
        Governing Law. The Plan and each Award Agreement shall be governed by
        the laws of the State of Delaware, excluding any conflicts or choice of law
        rule
        or principle that might otherwise refer construction or interpretation of
        this
        Plan to the substantive law of another jurisdiction. Unless otherwise provided
        in the Award Agreement, recipients of an Award under this Plan are deemed
        to
        submit to the exclusive jurisdiction and venue of the federal or state courts
        of
        Delaware, to resolve any and all issues that may arise out of or relate to
        this
        Plan or any related Award Agreement.

      
        
           

        

        
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      21.18
        Indemnification. Subject to requirements of Delaware law, each
        individual who is or shall have been a member of the Board, or a Committee
        appointed by the Board, or an officer of the Company to whom authority was
        delegated in accordance with Article 3, shall be indemnified and held harmless
        by the Company against and from any loss, cost, liability, or expense that
        may
        be imposed upon or reasonably incurred by him in connection with or resulting
        from any claim, action, suit, or proceeding to which he may be a party or
        in
        which he or she may be involved by reason of any action taken or failure
        to act
        under this Plan and against and from any and all amounts paid by him in
        settlement thereof, with the Company’s approval, or paid by him in satisfaction
        of any judgement in any such action, suit, or proceeding against him, provided
        he shall give the Company an opportunity, at its own expense, to handle and
        defend the same before he undertakes to handle and defend it on his own behalf,
        unless such loss, cost, liability, or expense is a result of his own willful
        misconduct or except as expressly provided by statute. The foregoing right
        of
        indemnification shall not be exclusive of any other rights of indemnification
        to
        which such individuals may be entitled under the Company’s Certificate of
        Incorporation or Bylaws, as a matter of law, or otherwise, or any power that
        the
        Company may have to indemnify them or hold them harmless.

       

      21.19
        Merger or Acquisition. In the event that the Company is a party to a
        merger, reorganization, consolidation, share exchange, transfer of assets,
        or
        other transaction having a similar effect involving the Company, outstanding
        Awards shall be subject to the agreement of merger or reorganization. Such
        agreement may provide, without limitation, for the continuation of outstanding
        Awards by the Company (if the Company is a surviving corporation), for their
        assumption by the surviving corporation or its parent or subsidiary, for
        the
        substitution by the surviving corporation or its parent or subsidiary of
        its own
        awards for such Awards, for accelerated vesting and accelerated expiration,
        or
        for settlement in cash or cash equivalents.

    

     

     

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