Exhibit 10.12
MARK IV INDUSTRIES, INC.
1996 INCENTIVE STOCK OPTION PLAN
________________________________
Second Amendment And Restatement
Effective as of February 29, 2000
________________________________
Recitals:
On April 25, 1996, Mark IV Industries, Inc., a Delaware corporation with
offices at One Towne Centre, 501 John James Audubon Parkway, Amherst, New York
(the "Company") adopted a stock option plan which was intended to enable the
Company to grant incentive stock options (within the meaning of Section 422 of
the Internal Revenue Code) to officers and other key employees of the Company
and its subsidiaries. This stock option plan, known as "The Mark IV
Industries, Inc. 1996 Incentive Stock Option Plan" (hereinafter the "Plan")
was approved by the stockholders of the Company on July 29, 1996.
Effective as of July 29, 1996, in connection with the promulgation of a
new rule by the United States Securities and Exchange Commission, the Plan was
amended and restated to permit Executive Officers of the Company to transfer
options they have been granted under the terms of the Plan to the extent that
such options are not "qualified" incentive stock options and to make certain
other technical changes.
The Company now desires to amend the Plan to eliminate the Plan provision
which allowed Optionees to pay the exercise price payable in connection with
the exercise of their options by authorizing the Company to retain a portion
of the shares of Common Stock which the Optionee would otherwise be entitled
to receive in connection with the exercise of their option as payment of the
exercise price. The Company desires, for administrative reasons, to effect
these amendments through an amendment and restatement of the Plan.
Consideration:
NOW, THEREFORE, in consideration of the foregoing, the Company hereby
adopts the following as the Second Amendment and Restatement of the Plan
effective as of February 29, 2000:
1. Purpose of Plan; Current Status of the Plan. The Mark
Inc., 1996 Incentive Stock Option Plan (hereinafter called the "Plan") is
intended to provide officers and other key employees of Mark IV Industries,
Inc., a Delaware corporation (hereinafter called the "Company") and officers
and other key employees of each Subsidiary of the Company as that term is
defined in Section 3 below (hereinafter individually referred to as a
"Subsidiary" and collectively as "Subsidiaries") with an additional incentive
for them to promote the success of the business, to increase their proprietary
interest in the success of the Company and its Subsidiaries, and to encourage
<PAGE>2
them to remain in the employ of the Company or its Subsidiaries. The above
aims will be effectuated through the granting of certain stock options, as
herein provided, which are intended to qualify as Incentive Stock Options
(hereinafter called "ISOs") under Section 422 of the Internal Revenue Code of
1986, as the same has been and shall be amended (hereinafter called the
"Code").
2. Administration. The Plan shall be administered by the
Compensation Committee of the Board of Directors of the Company (hereinafter
called the "Committee") composed of not less than two (2) directors of the
Company. The Committee is authorized to adopt such rules and regulations for
the administration of the Plan and the conduct of its business as may seem to
it proper.
Any action taken or interpretation by the Committee under any provision
of the Plan or any option granted hereunder shall, except to the extent that
any options granted pursuant to the terms of the Plan are not intended to be
considered incentive stock options, be in accordance with the provisions of
the Code, and the regulations and rulings issued thereunder as such may be
amended, promulgated, issued, renumbered or continued from time to time
hereafter in order that the options granted hereunder shall, to the fullest
extent possible, constitute "incentive stock options" within the meaning of
the Code. All action taken pursuant to this Plan shall be lawful and with a
view to obtaining for the Company and the option holder the maximum
advantages under the law as then obtaining, and in the event that any dispute
shall arise as to any action taken or interpretation by the Committee under
any provision of the Plan, then all doubts shall be resolved in favor of such
having been done in accordance with the said Code and such revenue laws,
amendments, regulations, rulings and provisions as may then be applicable.
Any action taken or interpretation by the Committee under any provision of the
Plan shall be final. No member of the Committee shall be liable for any
action, determination or interpretation under any provision of the Plan or
otherwise if done in good faith.
3. Participation. The Committee shall determine which of the
employees of the Company and its Subsidiaries will receive options under the
terms of this Plan from among officers and other key employees of the Company
and its Subsidiaries (including, subject to the provisions of Section
422(c)(5) of the Code, officers or other key employees possessing more than
ten percent (10%) of the total combined voting power of all classes of stock
of the Company). Those individuals to whom options are granted under the
terms of this Plan are sometimes hereinafter referred to as "Optionees". The
Committee shall determine the terms and provisions of the options granted
hereunder (which need not be identical), the time or times at which options
shall be granted and the number of shares of common stock of the Company
(sometimes hereinafter referred to as "Common Stock") (or such number of
shares of stock in which the Common Stock may at any time hereafter be
constituted), for which options are granted. Notwithstanding the foregoing,
in no event shall the Committee grant any options to the Company's Chief
Executive Officer, any of the four (4) most highly compensated officers, or
any other employee of the Company if the aggregate number of shares of Common
<PAGE>3
Stock which can be purchased by any such individual through the exercise of
all options granted to him or her under the Plan exceeds 300,000 shares of
Common Stock, adjusted as provided for in Section 5 hereof. For purposes of
this Plan, the term "Subsidiary" shall mean any corporation which satisfies
the definition of a "subsidiary corporation" as contained in Section 424(f) of
the Code and the term "Subsidiaries" shall mean all corporations which satisfy
the definition of a "subsidiary corporation" as contained in Section 424(f) of
the Code when, in each case, for purposes of applying such definition, the
"employer corporation" is deemed to mean the Company.
In selecting Optionees and in determining the number of shares
for which options are granted, the Committee may weigh and consider the
following factors: the office or position of the Optionee and his/her degree
of responsibility for the growth and success of the Company, length of
service, remuneration, promotions and potential. The foregoing factors shall
not be considered to be exclusive or obligatory upon the Committee, and the
Committee may properly consider any other factors which to it seems
appropriate.
An Optionee who has been granted an option under the Plan may be
granted additional options under the Plan if the Committee shall so determine.
In no event shall any options be granted under this Plan at any
time after the termination date set forth at the end of this Plan.
4. Shares Subject to the Plan. Subject to adjustment as provided in
Section 5 of this Plan, the aggregate number of reserved shares of Common
Stock for which options may be granted hereunder shall not exceed three
million (3,000,000) shares, determined as of April 24, 1996, (the effective
date of this Plan); provided, however, that as to shares subject to options
which expire or terminate pursuant to the provisions of this Plan without
having been exercised in full, such shares shall be considered to be available
again for placement under options granted thereafter under the Plan. Shares
issued pursuant to the exercise of incentive stock options granted under the
Plan shall be fully paid and non-assessable.
5. Anti-Dilution Provisions. The aggregate number of shares and the
class of shares as to which options may be granted under the Plan, the number
and class of shares subject to each outstanding option, the price per share
thereof (but not the total price), and the number of shares as to which an
option may be exercised at any one time, shall all be adjusted proportionately
in the event of any change, increase or decrease in the outstanding shares of
Common Stock or any change in classification of the Company's Common Stock
without receipt of consideration by the Company which results either from a
split-up, reverse split or consolidation of shares, payment of a stock
dividend, recapitalization, reclassification or other like capital adjustment
so that upon exercise of the option, the Optionee shall receive the number and
class of shares that he would have received had he been the holder of the
number of shares of Common Stock for which the option is being exercised
<PAGE>4
immediately preceding such change, increase or decrease in the outstanding
shares of Common Stock of the Company. Any such adjustment made by the
Committee shall be final and binding upon all Optionees, the Company, and all
other interested persons. Any adjustment of an incentive stock option under
this paragraph shall be made in such manner as not to constitute a
"modification" within the meaning of Section 424(h)(3) of the Code.
Anything in this Section 5 to the contrary notwithstanding, no
fractional shares or scrip representative of fractional shares shall be issued
upon the exercise of any option. Any fractional share interest resulting from
any change, increase or decrease in the outstanding shares of Common Stock of
the Company or resulting from any reorganization, merger, or consolidation for
which adjustment is provided in this Section 5 shall disappear and be absorbed
into the next lowest number of whole shares, and the Company shall not be
liable for any payment for such fractional share interest to the Optionee upon
his exercise of the option.
6. Option Price. The purchase price for each share of Common Stock
which may be acquired upon the exercise of each option issued under the Plan
shall be determined by the Committee at the time the option is granted, but in
no event shall such purchase price be less than one hundred percent (100%) of
the fair market value of the Company's Common Stock on the date of grant. If
the Common Stock of the Company is listed upon an established stock exchange
or exchanges on the day the option is granted, such fair market value shall be
deemed to be the highest closing price of the Common Stock of the Company on
such stock exchange or exchanges on the day the option is granted, or if no
sale of the Company's Common Stock shall have been made on any stock exchange
on that day, on the next preceding day on which there was a sale of such
stock.
7. Option Exercise Periods. (a) The time within which any option
granted hereunder may be exercised shall be, by its terms, not earlier than
one (1) year from the date such option is granted and not later than ten (10)
years from the date such option is granted. Except as otherwise provided for
herein, the Optionee must remain in the continuous employment of the Company
or any of its Subsidiaries from the date of the grant of the option to and
including the date of exercise of option in order to be entitled to exercise
his option. Options granted hereunder shall be exercisable in such
installments and at such dates as the Committee may specify. Unless the
Committee shall specify otherwise, the right of each Optionee to exercise his
option to purchase the number of shares to which his option initially related
shall accrue on a cumulative basis as follows:
(i). the Optionee shall have the right to purchase one-
fourth (1/4) of the total number of shares of Common Stock which can be
purchased pursuant to the option (subject to adjustment as provided in Section
5 hereof) at the end of the one (1) year period following the date the option
is granted;
<PAGE>5
(ii). the Optionee shall have the right to purchase an
additional one-fourth (1/4) of the total number of shares of Common Stock
which can be purchased pursuant to the option (subject to adjustment as
provided in Section 5 hereof) at the end of the two (2) year period following
the date the option is granted;
(iii). the Optionee shall have the right to purchase an
additional one-fourth (1/4) of the total number of shares of Common Stock
which can be purchased pursuant to the option (subject to adjustment as
provided in Section 5 hereof) at the end of the three (3) year period
following the date the option is granted;
(iv). the Optionee shall have the right to purchase the
remaining one-fourth (1/4) of the total number of shares of Common Stock which
can be purchased pursuant to the option (subject to adjustment as provided in
Section 5 hereof) at the end of the four (4) year period following the date
the option is granted.
Continuous employment shall not be deemed to be interrupted by
transfers between the Subsidiaries or between the Company and any Subsidiary,
whether or not elected by termination from any Subsidiary and re-employment by
any other Subsidiary or the Company. Time of employment with the Company
shall be considered to be one employment for the purposes of this Plan,
provided there is no intervening employment by a third party or no interval
between employments which, in the opinion of the Committee, is deemed to break
continuity of service. The Committee shall, at its discretion, determine the
effect of approved leaves of absence and all other matters having to do with
"continuous employment". Where an Optionee dies while employed by the Company
or any of its Subsidiaries, his options may be exercised following his death
in accordance with the provisions of Section 10 below.
(b) Notwithstanding the foregoing provisions of Section 7(a),
in the event the Company or the shareholders of the Company enter into an
agreement to dispose of all or substantially all of the assets or stock of the
Company by means of a sale, merger, consolidation, reorganization,
liquidation, or otherwise, or in the event a Change of Control (as hereinafter
defined) of the Company shall occur, all unexercised options granted hereunder
shall become immediately exercisable with respect to the full number of shares
subject to that option during the period commencing as of the date of
execution of such agreement and ending as of the earlier of (i) ten (10) years
from the date such option was granted, or (ii) ninety (90) days following the
date on which a Change in Control occurs or the disposition of assets or stock
contemplated by this sentence is consummated. In addition, in the event that
substantially all the stock of any Subsidiary by whom an Optionee is employed
is sold or otherwise disposed of by merger, consolidation, reorganization,
liquidation or otherwise, or in the event that substantially all the assets of
any division of the Company or any division of any Subsidiary by whom the
Optionee is employed are sold or disposed of by means of a sale, merger,
consolidation, reorganization, liquidation or otherwise and, in connection
with any such asset sale, the Optionee's employment with the Company or the
Subsidiary (as the case may be) is terminated, the options of an Optionee
<PAGE>6
employed by such a division or Subsidiary shall, unless the Optionee remains
in the employ of the Company or any Subsidiary of the Company immediately
following any such sale or other disposition of stock or assets, become
immediately exercisable with respect to the full number of shares subject to
that option during the period commencing as of the date of execution of the
agreement providing for such sale or other disposition and ending as of the
earlier of (x) ten (10) years from the date such option was granted and (y)
ninety (90) days following the date on which the disposition of the assets or
stock contemplated by this sentence is consummated. Ninety (90) days
following the consummation of any disposition of assets or stock referred to
in the preceding sentence, any unexercised options issued hereunder which have
become exercisable pursuant to this paragraph (or any unexercised portion
thereof) shall terminate and cease to be effective. In addition, if any
disposition of assets or stock referred to in this paragraph occurs with
respect to substantially all the assets or stock of the Company or if a Change
in Control occurs, ninety (90) days following such disposition of assets or
stock or Change in Control, this Plan and any unexercised options issued
hereunder which have become exercisable pursuant to this paragraph (or any
unexercised portion thereof) shall terminate and cease to be effective, unless
provision is made in connection with such transaction for assumption of
options previously granted or the substitution for such options of new options
covering the securities of a successor corporation or an affiliate thereof,
with appropriate adjustments as to the number and kind of securities and
prices.
(c) For purposes of this Plan, a "Change in Control" shall be
deemed to have occurred if:
(i). any "person" or "group" (within the meaning of Sections
13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Act")) becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Act) of more than thirty percent (30%) of the then outstanding voting stock of
the Company, otherwise than through a transaction arranged by, or consummated
with the prior approval of its Board of Directors; or
(ii). during any period of two consecutive years, individuals
who at the beginning of such period constitute the Board of Directors of the
Company (and any new director whose election to the Board of Directors or
whose nomination for election by the Company's shareholders was approved by a
vote of at least two thirds of the directors then still in office who either
were directors at the beginning of such period or whose election or nomination
for election was previously so approved) (hereinafter referred to as the
"Continuing Directors") cease for any reason to constitute a majority thereof;
or
<PAGE>7
(iii). the shareholders of the Company approve a merger or
consolidation of the Company with any other corporation, other than a merger
or consolidation which would result in the voting securities of the Company
immediately prior thereto continuing to represent (either by remaining
outstanding or being converted into voting securities of the surviving entity)
at least 80% of the combined voting power of the voting securities of the
Company or such surviving entity outstanding immediately after such merger or
consolidation (provided, however, that if prior to the merger or
consolidation, the Board of Directors of the Company adopts a resolution that
is approved by a majority of the Continuing Directors providing that such
merger or consolidation shall not constitute a "change in control" for
purposes of the Plan, then such a merger or consolidation shall not constitute
a "change in control"); or
(iv). the shareholders of the Company approve an agreement
for the sale or disposition by the Company of all or substantially all the
assets of the Company.
(d) Any change or adjustment made pursuant to the terms of
this Section 7 shall be made in such a manner so as not to constitute a
"modification" as defined in Section 424 of the Code, and so as not to cause
any incentive stock option issued under this Plan to fail to continue to
qualify as an incentive stock option as defined in Section 422(b) of the Code.
Notwithstanding the foregoing, in the event that any such agreement shall be
terminated without consummating the disposition of said stock or assets, any
unexercised unaccrued portion of any option that had become exercisable solely
by reason of the provisions of this paragraph shall again become unaccrued and
unexercisable as of said termination of such agreement; subject, however, to
such portion of such option accruing pursuant to the normal accrual schedule
provided in the terms under which such option was granted. Any exercise of
any portion of any option prior to said termination of said agreement shall
remain effective despite the fact that such portion became exercisable solely
by reason of the Company or its shareholders entering into said agreement to
dispose of the stock or assets of the Company or the stock or assets of any
Subsidiary of the Company, any division of the Company or any division of any
Subsidiary of the Company.
8. Exercise of Option. Options shall be exercised as follows:a)
Notice and Payment. Each option, or any installment thereof, shall be
exercised, whether in whole or in part, by giving written notice to the
Company at its principal office, (the "Exercise Notice") that the Optionee
intends to exercise all or part of any option he has been granted and by
paying to the Company the purchase price for the number of shares of Common
Stock of the Company which the Optionee desires to purchase at the price per
share (as adjusted) set forth in the option which the Optionee desires to
exercise.
<PAGE>8
(b) The Exercise Notice: (i) shall state the identity of the
options being exercised (by reference to the date of the grant of the option);
(ii) shall state the number of shares to be purchased and the purchase price
to be paid; and (iii) shall contain representations on behalf of the Optionee
that he acknowledges that the Company is selling the shares being acquired by
him under a claim of exemption from registration under the Securities Act of
1933 as amended (hereinafter referred to as the "Act"), as a transaction not
involving any public offering; that he represents and warrants that he is
acquiring such shares with a view to "investment" and not with a view to
distribution or resale; and that he agrees not to transfer, encumber or
dispose of the shares unless: (A) a registration statement with respect to
the shares shall be effective under the Act, together with proof satisfactory
to the Company that there has been compliance with applicable state law; or
(B) the Company shall have received an opinion of counsel in form and content
satisfactory to the Company to the effect that the transfer qualifies under
Rule 144 or some other disclosure exemption from registration and that no
violation of the Act or applicable state laws will be involved in such
transfer, and/or such other documentation in connection therewith as the
Company's counsel may in its sole discretion require.
(c) Payment of the purchase price for shares of Common Stock
to be acquired in connection with the exercise of any options granted under
this Plan shall be made: (i) by delivery to the Company of cash or a certified
or bank check payable to the order of the Company in an amount equal to the
portion of the purchase price which is payable in connection with the exercise
of such option; or (ii) by delivery to the Company of previously acquired
shares of the Company's Common Stock having an aggregate fair market value
equal to the portion of the purchase price which is payable in connection with
the exercise of such option, provided that such previously acquired shares of
Common Stock have been held by the Optionee for at least six (6) months or
such other period of time as may be required by the Committee at the time such
shares are delivered to the Company in connection with the Optionee's exercise
of his/her option hereunder. If shares of the Company's Common Stock are
delivered as payment of the purchase price for shares of Common Stock to be
acquired in connection with the exercise of options granted hereunder, the
shares of Common Stock which are delivered in payment of such purchase price
shall be equal to the fair market value (determined in accordance with the
principles set forth in Section 6 hereof) of the Common Stock on the day
immediately preceding the day on which such Common Stock is delivered in
payment of the purchase price for shares of Common Stock to be acquired in
connection with the exercise of options granted hereunder.
(d) Issuance of Certificates. Certificates representing the
shares purchased by the Optionee shall be issued as soon as practicable after
the Optionee has complied with the provisions of Section 8(a) hereof.
(e) Rights as a Shareholder. The Optionee shall have no rights
as a shareholder with respect to the shares purchased until the date of the
issuance to him of a Certificate representing such shares.
<PAGE>9
9. Assignment of Option. (a) Subject to the provisions of
Sections 9(b) and 10 hereof, options granted under this Plan may not be
assigned voluntarily or involuntarily or by operation of law. Any attempt to
transfer, assign, pledge, hypothecate or otherwise dispose of, or to subject
to execution, attachment or similar process, any incentive stock option, or
any right thereunder, contrary to the provisions hereof shall be void and
ineffective, shall give no right to the purported transferee, and shall, at
the sole discretion of the Committee, result in forfeiture of the option with
respect to the shares involved in such attempt.
(b) Notwithstanding anything to the contrary contained in the
terms of the Plan as in effect at any time prior to the date hereof and
notwithstanding anything to the contrary contained in the terms of any
statement, letter or other document or agreement setting forth the terms and
conditions of any options previously issued pursuant to the terms of this
Plan, any and all Non-Qualified Options (as defined in Section 13 hereof)
previously issued to any officer of the Company (as defined in Rule 16a-l(f)
issued under the Securities and Exchange Act of 1934 (hereinafter an
"Executive Officer")) pursuant to the terms of the Plan and, subject to the
approval of the Committee, any Non-Qualified Options which may be granted or
issued to any Executive Officer of the Company at any time in the future
pursuant to the terms of the Plan shall be transferable by the Executive
Officer to whom such Non-Qualified Options have been or are granted to: (a)
the spouse, children or grandchildren of the Executive Officer (hereinafter
"Immediate Family Members"); (b) a trust or trusts for the exclusive benefit
of such Immediate Family Members: (c) a partnership or limited liability
company in which such Immediate Family Members are the only partners or
members; or (d) a private foundation established by the Executive Officer;
provided that (x) there may be no consideration for any such transfer; (y) in
the case of Non-Qualified Options which may be granted in the future, the
statement, letter or other document or agreement setting forth the terms and
conditions of any such Non-Qualified Options must be approved by the Committee
and must expressly provide for and limit the transferability of such Non-
Qualified Options to transfers which are permitted by the foregoing provisions
of this Section 9(b); and (z) any subsequent transfer of transferred Non-
Qualified Options shall, except for transfers occurring as a result of the
death of the transferee as contemplated by Section 10(e), be prohibited.
Following the transfer of any Non-Qualified Options as permitted by the
foregoing provisions of this Section 9(b), any such transferred Non-Qualified
Options shall continue to be subject to the same terms and conditions
applicable to such Non-Qualified Options immediately prior to the transfer;
provided that, for purposes of this Plan, the term "Optionee" shall be deemed
to refer to the transferee. Notwithstanding the foregoing, the events of
termination of employment of Section 10 hereof shall continue to be applied
with respect to the original Optionee for the purpose of determining whether
or not the Non-Qualified Options shall be exercisable by the transferee and,
upon termination of the original Optionee's employment, the Non-Qualified
Options shall be exercisable by the transferee only to the extent and for the
periods specified in Section 10 below.
<PAGE>10
10. Effect of Termination of Employment, Death or Disability. (a)
In the event of the termination of employment of an Optionee during the two
(2) year period after the date of issuance of an option to him either by
reason of (i) a discharge for cause, or (ii) voluntary separation on the part
of the Optionee and without consent of the Company or the Subsidiary for whom
the Optionee was employed, any option or options theretofore granted to him
under this Plan, to the extent not theretofore exercised by him, shall
forthwith terminate.
(b) In the event of the termination of employment of an
Optionee (otherwise than by reason of death or retirement of the Optionee at
his Retirement Date) by the Company or by any of the Subsidiaries employing
the Optionee at such time, any option or options granted to him under the Plan
to the extent not theretofore exercised shall be deemed canceled and
terminated forthwith, except that, subject to the provisions of subparagraph
(a) of this Section, such Optionee may exercise any options theretofore
granted to him, which have not then expired and which are otherwise
exercisable within the provisions of Section 7 hereof, within three (3) months
after such termination. If the employment of an Optionee shall be terminated
by reason of the Optionee's retirement at his Retirement Date from the Company
or from any of the Subsidiaries employing the Optionee at such time, the
Optionee shall have the right to exercise such option or options held by him
to the extent that such options have not expired, at any time within three (3)
months after such retirement. The provisions of Section 7 to the contrary
notwithstanding, upon retirement, all options held by an Optionee shall be
immediately exercisable in full. The transfer of an Optionee from the employ
of the Company to a Subsidiary of the Company or vice versa, or from one
Subsidiary of the Company to another, shall not be deemed to constitute a
termination of employment for purposes of this Plan.
(c) In the event that an Optionee shall die while employed by
the Company or by any of the Subsidiaries or shall die within three (3) months
after retirement on his Retirement Date (from the Company or any Subsidiary),
any option or options granted to him under this Plan and not theretofore
exercised by him or expired shall be exercisable by the estate of the Optionee
or by any person who acquired such option by bequest or inheritance from the
Optionee in full, notwithstanding Section 7, at any time within one (1) year
after the death of the Optionee. References hereinabove to the Optionee shall
be deemed to include any person entitled to exercise the option after the
death of the Optionee under the terms of this Section.
(d) In the event of the termination of employment of an
Optionee by reason of the Optionees' disability, the Optionee shall have the
right, notwithstanding the provisions of Section 7 hereof, to exercise all
options held by him, to the extent that options have not previously expired or
been exercised, at any time within one (1) year after such termination. The
term "disability" shall, for the purposes of this Plan, be defined in the same
manner as such term is defined in Section 105(d)(4) of the Internal Revenue
Code of 1986.
<PAGE>11
(e) For the purposes of this Plan, "Retirement Date" shall mean
with respect to an Optionee, the date the Optionee actually retires from his
employment with the company or, if applicable, the Subsidiary by whom he is
employed; provided that such date occurs on or after the date the Optionee is
otherwise entitled to retire under the terms of the company's retirement plan
or, if applicable, the retirement plan of the Subsidiary by whom the Optionee
is employed.
11. Amendment and Termination of the Plan. The Board of Directors
of the Company may at any time suspend, amend or terminate the Plan; provided,
however, that except as permitted in Section 12 hereof, no amendment or
modification of the Plan which would:
(a) increase the maximum aggregate number of shares as to which
options may be granted hereunder (except as contemplated in Section 5); or
(b) reduce the option price or change the method of determining
the option price; or
(c) increase the time for exercise of options to be granted or
those which are outstanding beyond the terms of ten (10) years; or
(d) change the designation of the employees or class of
employees eligible to receive options under this Plan, may be adopted unless
with the approval of the holders of a majority of the outstanding shares of
Common Stock represented at a shareholders Company, or with the written
consent of the holders of a majority of the outstanding shares of Common
Stock. No amendment, suspension or termination of the Plan may, without the
consent of the holder of the option, terminate his option or adversely affect
his rights in any material respect.
12. Incentive Stock Options Power to Establish Other Provisions. It
is intended that the Plan shall conform to and (except as otherwise expressly
set forth herein) each option shall qualify and be subject to exercise only to
the extent that it does qualify as an "incentive stock option" as defined in
Section 422 of the Code and as such section may be amended from time to time
or be accorded similar tax treatment to that accorded to an incentive stock
option by virtue of any new Revenue Laws of the United States. The Board of
Directors may make any amendment to the Plan which shall be required so to
conform the Plan. Subject to the provisions of the Code, the Committee shall
have the power to include such other terms and provisions in options granted
under this Plan as the Committee shall deem advisable.
<PAGE>12
The grant of any options pursuant to the terms of this Plan which do
not qualify as "incentive stock options" (as defined in Section 422 of the
Code) as a result of the application of the $100,000 annual limitation
contained in Section 13 hereof is hereby approved provided that the maximum
number of shares of common Stock of the Company which can be issued pursuant
to the terms of this Plan (as provided for in Section 4 hereof) is not
exceeded by the grant of any such options and, to the extent that any options
previously granted pursuant to the terms of this Plan were not "incentive
stock options" within the meaning of Section 422 of the Code, the grant of
such options is hereby ratified, approved and confirmed.
13. Maximum Annual Value of Options Exercisable. Notwithstanding
any provisions of this Plan to the contrary if: (a) the sum of: (i) the fair
market value (determine of the grant) of all options granted to an Optionee
under the terms of this Plan which become exercisable for the first time in
any one calendar year; and (ii) the fair market value (determined as of the
date of the grant) of all options previously granted to such Optionee under
the terms of this Plan or any other incentive stock option plan of the Company
or its subsidiaries which also become exercisable for the first time in such
calendar year; exceeds (b) $100,000; then, (c) those options shall continue to
be binding upon the Company in accordance with their terms but, to the extent
that the aggregate fair market of all such options which become exercisable
for the first time in any one calendar year (determined as of the date of the
grant) exceeds $100,000, such options (referred to, for purposes of this
Plan, as "Non- Qualified Options") shall not be deemed to be incentive stock
options as defined in Section 422 (b) of the Code. For purposes of the
foregoing, the determination of which options shall be recharacterized as not
being incentive stock options issued under the terms of this Plan shall be
made in inverse order of their grant dates and, accordingly, the last options
received by the Optionee shall be the first options to be recharacterized as
not being incentive stock options granted pursuant to the terms of the Plan.
14. General Provisions. (a) No incentive stock option shall be
construed as limiting any right which the Company or any parent or subsidiary
of the Company may have to terminate at any time, with or without cause, the
employment of an Optionee.
(b) The Section headings used in this Plan are intended solely
for convenience of reference and shall not in any manner amplify, limit,
modify or otherwise be used in the construction or interpretation of any of
the provisions hereof.
(c) The masculine, feminine or neuter gender and the singular
or plural number shall be deemed to include the other whenever the content so
indicates or requires.
(d) No options shall be granted under the Plan after ten (10)
years from the date the Plan is adopted by the Board of Directors of the
Company or approved by the stockholders of the Company, whichever is earlier.
<PAGE>13
15. Effective Date and Duration of the Plan. The Plan is effective
as of April 24, 1996, and will terminate on April 23, 2006 provided however,
that the termination of the Plan shall not be deemed to modify, amend or
otherwise affect the term of any options outstanding on the date the Plan
terminates.
IN WITNESS WHEREOF, the undersigned has executed this Second Amendment
and Restatement of the Mark IV Industries, Inc. 1996 Incentive Stock Option
Plan for and on behalf of Mark IV Industries, Inc. this 10th day of April,
2000
MARK IV INDUSTRIES, INC.
BY: /s/ Richard L. Grenolds
-----------------------
Richard L. Grenolds
Vice President and
Chief Accounting Officer
