exv10w5






Exhibit 10.5




LENDER PROCESSING SERVICES, INC.




2008 OMNIBUS INCENTIVE PLAN





 









 








Table of Contents




	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Article 1.
	 	Establishment, Objectives, and Duration	 	 	1	 
	1.1
	 	Establishment of the Plan	 	 	1	 
	1.2
	 	Objectives of the Plan	 	 	1	 
	1.3
	 	Duration of the Plan	 	 	1	 
	 
	 	 	 	 	 	 
	Article 2.
	 	Definitions	 	 	1	 
	2.1
	 	“Award”	 	 	1	 
	2.2
	 	“Award Agreement”	 	 	1	 
	2.3
	 	“Beneficial Ownership”	 	 	1	 
	2.4
	 	“Board”	 	 	1	 
	2.5
	 	“Change in Control”	 	 	2	 
	2.6
	 	“Code”	 	 	3	 
	2.7
	 	“Committee”	 	 	3	 
	2.8
	 	“Company”	 	 	3	 
	2.9
	 	“Consultant”	 	 	3	 
	2.10
	 	“Director”	 	 	3	 
	2.11
	 	“Dividend Equivalent”	 	 	3	 
	2.12
	 	“Effective Date”	 	 	3	 
	2.13
	 	“Employee”	 	 	3	 
	2.14
	 	“Exchange Act”	 	 	3	 
	2.15
	 	“Exercise Price”	 	 	3	 
	2.16
	 	“Fair Market Value”	 	 	3	 
	2.17
	 	“Freestanding SAR”	 	 	4	 
	2.18
	 	“Incentive Stock Option” or “ISO”	 	 	4	 
	2.19
	 	“Nonqualified Stock Option” or “NQSO”	 	 	4	 
	2.20
	 	“Option”	 	 	4	 
	2.21
	 	“Other Award”	 	 	4	 
	2.22
	 	“Participant”	 	 	4	 
	2.23
	 	“Performance-Based Exception”	 	 	4	 
	2.24
	 	“Performance Period”	 	 	4	 
	2.25
	 	“Performance Share”	 	 	4	 
	2.26
	 	“Performance Unit”	 	 	4	 
	2.27
	 	“Period of Restriction”	 	 	4	 
	2.28
	 	“Person”	 	 	4	 
	2.29
	 	“Replacement Awards”	 	 	4	 
	2.30
	 	“Restricted Stock”	 	 	5	 
	2.31
	 	“Restricted Stock Unit”	 	 	5	 
	2.32
	 	“Share”	 	 	5	 
	2.33
	 	“Stock Appreciation Right” or “SAR”	 	 	5	 
	2.34
	 	“Subsidiary”	 	 	5	 
	2.35
	 	“Tandem SAR”	 	 	5	 






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	 	 	 	 	Page	 
	Article 3.
	 	Administration	 	 	5	 
	3.1
	 	The Committee	 	 	5	 
	3.2
	 	Authority of the Committee	 	 	5	 
	3.3
	 	Decisions Binding	 	 	5	 
	 
	 	 	 	 	 	 
	Article 4.
	 	Shares Subject to the Plan; Individual Limits; and Anti-Dilution Adjustments	 	 	6	 
	4.1
	 	Number of Shares Available for Grants.	 	 	6	 
	4.2
	 	Individual Limits	 	 	6	 
	4.3
	 	Adjustments in Authorized Shares and Awards	 	 	7	 
	 
	 	 	 	 	 	 
	Article 5.
	 	Eligibility and Participation	 	 	7	 
	5.1
	 	Eligibility	 	 	7	 
	5.2
	 	Actual Participation	 	 	8	 
	 
	 	 	 	 	 	 
	Article 6.
	 	Options	 	 	8	 
	6.1
	 	Grant of Options	 	 	8	 
	6.2
	 	Award Agreement	 	 	8	 
	6.3
	 	Exercise Price	 	 	8	 
	6.4
	 	Duration of Options	 	 	8	 
	6.5
	 	Exercise of Options	 	 	8	 
	6.6
	 	Payment	 	 	8	 
	6.7
	 	Restrictions on Share Transferability	 	 	9	 
	6.8
	 	Dividend Equivalents	 	 	9	 
	6.9
	 	Termination of Employment or Service	 	 	9	 
	6.10
	 	Nontransferability of Options.	 	 	9	 
	 
	 	 	 	 	 	 
	Article 7.
	 	Stock Appreciation Rights	 	 	9	 
	7.1
	 	Grant of SARs	 	 	9	 
	7.2
	 	Exercise of Tandem SARs	 	 	9	 
	7.3
	 	Exercise of Freestanding SARs	 	 	10	 
	7.4
	 	Award Agreement	 	 	10	 
	7.5
	 	Term of SARs	 	 	10	 
	7.6
	 	Payment of SAR Amount	 	 	10	 
	7.7
	 	Dividend Equivalents	 	 	10	 
	7.8
	 	Termination of Employment or Service	 	 	10	 
	7.9
	 	Nontransferability of SARs	 	 	11	 
	 
	 	 	 	 	 	 
	Article 8.
	 	Restricted Stock	 	 	11	 
	8.1
	 	Grant of Restricted Stock	 	 	11	 
	8.2
	 	Award Agreement	 	 	11	 
	8.3
	 	Other Restrictions	 	 	11	 
	8.4
	 	Removal of Restrictions	 	 	11	 
	8.5
	 	Voting Rights	 	 	11	 
	8.6
	 	Dividends and Other Distributions	 	 	11	 
	8.7
	 	Termination of Employment or Service	 	 	12	 
	8.8
	 	Nontransferability of Restricted Stock	 	 	12	 






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	 	 	 	 	Page	 
	Article 9.
	 	Restricted Stock Units and Performance Shares	 	 	12	 
	9.1
	 	Grant of Restricted Stock Units/Performance Shares	 	 	12	 
	9.2
	 	Award Agreement	 	 	12	 
	9.3
	 	Form and Timing of Payment	 	 	12	 
	9.4
	 	Voting Rights	 	 	12	 
	9.5
	 	Dividend Equivalents	 	 	12	 
	9.6
	 	Termination of Employment or Service	 	 	13	 
	9.7
	 	Nontransferability	 	 	13	 
	 
	 	 	 	 	 	 
	Article 10.
	 	Performance Units	 	 	13	 
	10.1
	 	Grant of Performance Units	 	 	13	 
	10.2
	 	Award Agreement	 	 	13	 
	10.3
	 	Value of Performance Units	 	 	13	 
	10.4
	 	Form and Timing of Payment	 	 	13	 
	10.5
	 	Dividend Equivalents	 	 	13	 
	10.6
	 	Termination of Employment or Service	 	 	13	 
	10.7
	 	Nontransferability	 	 	14	 
	 
	 	 	 	 	 	 
	Article 11.
	 	Other Awards	 	 	14	 
	11.1
	 	Grant of Other Awards	 	 	14	 
	11.2
	 	Payment of Other Awards	 	 	14	 
	11.3
	 	Termination of Employment or Service	 	 	14	 
	11.4
	 	Nontransferability	 	 	14	 
	 
	 	 	 	 	 	 
	Article 12.
	 	Replacement Awards	 	 	14	 
	 
	 	 	 	 	 	 
	Article 13.
	 	Performance Measures	 	 	14	 
	 
	 	 	 	 	 	 
	Article 14.
	 	Beneficiary Designation	 	 	15	 
	 
	 	 	 	 	 	 
	Article 15.
	 	Deferrals	 	 	15	 
	 
	 	 	 	 	 	 
	Article 16.
	 	Rights of Participants	 	 	16	 
	16.1
	 	Continued Service	 	 	16	 
	16.2
	 	Participation	 	 	16	 
	 
	 	 	 	 	 	 
	Article 17.
	 	Change in Control	 	 	16	 
	 
	 	 	 	 	 	 
	Article 18.
	 	Additional Forfeiture Provisions	 	 	16	 
	 
	 	 	 	 	 	 
	Article 19.
	 	Amendment, Modification, and Termination	 	 	17	 
	19.1
	 	Amendment, Modification, and Termination	 	 	17	 
	19.2
	 	Adjustment of Awards Upon the Occurrence of Certain Unusual or	 	 	 	 
	 
	 	Nonrecurring Events	 	 	17	 
	19.3
	 	Awards Previously Granted	 	 	17	 
	19.4
	 	Compliance with the Performance-Based Exception	 	 	17	 






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	 	 	 	 	Page	 
	Article 20.
	 	Withholding	 	 	18	 
	20.1
	 	Tax Withholding	 	 	18	 
	20.2
	 	Use of Shares to Satisfy Withholding Obligation	 	 	18	 
	 
	 	 	 	 	 	 
	Article 21.
	 	Indemnification	 	 	18	 
	 
	 	 	 	 	 	 
	Article 22.
	 	Successors	 	 	18	 
	 
	 	 	 	 	 	 
	Article 23.
	 	Legal Construction	 	 	19	 
	23.1
	 	Gender, Number and References	 	 	19	 
	23.2
	 	Severability	 	 	19	 
	23.3
	 	Requirements of Law	 	 	19	 
	23.4
	 	Governing Law	 	 	19	 
	23.5
	 	Non-Exclusive Plan	 	 	19	 
	23.6
	 	Code Section 409A Compliance	 	 	19	 






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Lender Processing Services, Inc.




2008 Omnibus Incentive Plan




Article 1. Establishment, Objectives, and Duration




     1.1 Establishment of the Plan. Lender Processing Services, Inc., a Delaware
corporation, hereby establishes an incentive compensation plan to be known as the “Lender
Processing Services, Inc. 2008 Omnibus Incentive Plan” (hereinafter referred to as the “Plan”). The
Plan permits the granting of Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance
Units and Other Awards.



     The Plan shall be effective on July 1, 2008 (the “Effective Date”), and was approved by
Fidelity National Information Services, Inc., as sole stockholder of the Company. The Plan shall
remain in effect as provided in Section 1.3 hereof.



     1.2 Objectives of the Plan. The objectives of the Plan are to optimize the
profitability and growth of the Company through incentives that are consistent with the Company’s
goals and that link the personal interests of Participants to those of the Company’s stockholders.



     The Plan is further intended to provide flexibility to the Company in its ability to motivate,
attract and retain the services of Participants who make or are expected to make significant
contributions to the Company’s success and to allow Participants to share in the success of the
Company.



     1.3 Duration of the Plan. No Award may be granted under the Plan after the day
immediately preceding the tenth anniversary of the Effective Date, or such earlier date as the
Board shall determine. The Plan will remain in effect with respect to outstanding Awards until no
Awards remain outstanding.



Article 2. Definitions




     The following terms, when capitalized, shall have the meanings set forth below:



     2.1 “Award” means, individually or collectively, Nonqualified Stock Options, Incentive
Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance
Shares, Performance Units, and Other Awards granted under the Plan.



     2.2 “Award Agreement” means an agreement entered into by the Company and a Participant
setting forth the terms and provisions applicable to an Award.



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



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



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     2.5 “Change in Control” means that the conditions set forth in any one of the following
subsections shall have been satisfied:



          (a) an acquisition immediately after which any Person possesses direct or indirect Beneficial
Ownership of 25% or more of either the then outstanding shares of Company common stock (the
“Outstanding Company Common Stock”) or the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided that the following acquisitions shall be excluded: (i) any
acquisition directly from the Company, other than an acquisition by virtue of the exercise of a
conversion privilege unless the security being so converted was itself acquired directly from the
Company, (ii) any acquisition by the Company, (iii) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or a Subsidiary, or (iv) any acquisition
pursuant to a transaction that complies with paragraphs (i), (ii) and (iii) of subsection (c) of
this Section 2.5; or



          (b) during any period of two consecutive years, the individuals who, as of the beginning of
such period, constitute the Board (such Board shall be hereinafter referred to as the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board; provided that for
purposes of this Section 2.5, any individual who becomes a member of the Board subsequent to the
beginning of such period and whose election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least two-thirds of those individuals who are members of
the Board and who were also members of the Incumbent Board (or deemed to be such pursuant to this
proviso) shall be considered as though such individual were a member of the Incumbent Board;
provided, further, that any such individual whose initial assumption of office occurs as a result
of either an actual or threatened election contest or other actual or threatened solicitation of
proxies or consents by or on behalf of a Person other than the Board shall not be so considered as
a member of the Incumbent Board; or



          (c) consummation of a reorganization, merger, share exchange, consolidation or sale or other
disposition of all or substantially all of the assets of the Company (“Corporate Transaction”);
excluding, however, such a Corporate Transaction pursuant to which:




               (i) all or substantially all of the individuals and entities who have Beneficial
Ownership, respectively, of the Outstanding Company Common Stock and Outstanding Company
Voting Securities immediately prior to such Corporate Transaction will have Beneficial
Ownership, directly or indirectly, of more than 50% of, respectively, the outstanding shares
of common stock and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of the
corporation resulting from such Corporate Transaction (including, without limitation, the
Company or a corporation that as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or more
subsidiaries) (the “Resulting Corporation”) in substantially the same proportions as their
ownership, immediately prior to such Corporate Transaction, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, as the case may be;




               (ii) no Person (other than (1) the Company, (2) an employee benefit plan (or related
trust) sponsored or maintained by the Company or Resulting Corporation, or



2









 







(3) any entity controlled by the Company or Resulting Corporation) will have Beneficial
Ownership, directly or indirectly, of 25% or more of, respectively, the outstanding shares
of common stock of the Resulting Corporation or the combined voting power of the outstanding
voting securities of the Resulting Corporation entitled to vote generally in the election of
directors, except to the extent that such ownership existed prior to the Corporate
Transaction; and




               (iii) individuals who were members of the Incumbent Board will continue to constitute
at least a majority of the members of the board of directors of the Resulting Corporation;
or



          (d) the approval by the stockholders of the Company of a complete liquidation or dissolution
of the Company.



     For avoidance of doubt, no event or transaction which occurred or occurs as a result of the
Contribution and Distribution Agreement dated as of June ___, 2008, by and between Fidelity
National Information Services, Inc. and the Company, or the spin-off of the Company from Fidelity
National Information Services, Inc. shall constitute a Change in Control for purposes of the Plan



     2.6 “Code” means the Internal Revenue Code of 1986, as amended from time to time.



     2.7 “Committee” means the entity, as specified in Section 3.1, authorized to administer the
Plan.



     2.8 “Company” means Lender Processing Services, Inc., a Delaware corporation, and any
successor thereto.



     2.9 “Consultant” means any consultant or advisor to the Company or a Subsidiary.



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



     2.11 “Dividend Equivalent” means, with respect to Shares subject to an Award, a right to be
paid an amount equal to the dividends declared and paid on an equal number of outstanding Shares.



     2.12 “Effective Date” shall have the meaning ascribed to such term in Section 1.1 hereof.



     2.13 “Employee” means any employee of the Company or a Subsidiary.



     2.14 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to
time.



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



     2.16 “Fair Market Value” means the fair market value of a Share as determined in good faith
by the Committee or pursuant to a procedure specified in good faith by the Committee;



3









 







provided, however, that if the Committee has not specified otherwise, Fair Market Value shall mean
the closing price of a Share as reported in a consolidated transaction reporting system on the date
of valuation, or, if there was no such sale on the relevant date, then on the last previous day on
which a sale was reported.



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



     2.18 “Incentive Stock Option” or “ISO” means an Option that is intended to meet the
requirements of Code Section 422.



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



     2.20 “Option” means an Incentive Stock Option or a Nonqualified Stock Option granted under
the Plan, as described in Article 6 herein.



     2.21 “Other Award” means a cash, Share-based or Share-related Award (other than an Award
described in Article 6, 7, 8, 9 or 10 of the Plan) that is granted pursuant to Article 11 herein.



     2.22 “Participant” means a current or former Employee, Director or Consultant who has
rights relating to an outstanding Award.



     2.23 “Performance-Based Exception” means the performance-based exception from the tax
deductibility limitations of Code Section 162(m).



     2.24 “Performance Period” means the period during which a performance measure must be met.



     2.25 “Performance Share” means an Award granted to a Participant, as described in Article 9
herein.



     2.26 “Performance Unit” means an Award granted to a Participant, as described in Article 10
herein.



     2.27 “Period of Restriction” means the period Restricted Stock or Restricted Stock Units
are subject to a substantial risk of forfeiture and are not transferable, as provided in Articles 8
and 9 herein.



     2.28 “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.



     2.29 “Replacement Awards” means Awards issued in substitution of awards granted under
equity-based incentive plans sponsored or maintained by an entity with which the Company engages in
a merger, acquisition or other business transaction, pursuant to which awards relating to interests
in such entity (or a related entity) are outstanding immediately prior to such merger, acquisition
or other business transaction. For all purposes hereunder, Replacement Awards shall be deemed
Awards.



4









 





     2.30 “Restricted Stock” means an Award granted to a Participant, as described in Article 8
herein.



     2.31 “Restricted Stock Unit” means an Award granted to a Participant, as described in
Article 9 herein.



     2.32 “Share” means a share of Class A common stock of the Company, par value $0.0001 per
share, subject to adjustment pursuant to Section 4.3 hereof.



     2.33 “Stock Appreciation Right” or “SAR” means an Award granted to a Participant,
either alone or in connection with a related Option, as described in Article 7 herein.



     2.34 “Subsidiary” means any corporation in which the Company owns, directly or indirectly,
at least fifty percent (50%) of the total combined voting power of all classes of stock, or any
other entity (including, but not limited to, partnerships and joint ventures) in which the Company
owns, directly or indirectly, at least fifty percent (50%) of the combined equity thereof.
Notwithstanding the foregoing, for purposes of determining whether any individual may be a
Participant for purposes of any grant of Incentive Stock Options, “Subsidiary” shall have the
meaning ascribed to such term in Code Section 424(f).



     2.35 “Tandem SAR” means an SAR that is granted in connection with a related Option, as
described in Article 7 herein.



Article 3. Administration




     3.1 The Committee. The Plan shall be administered by the Compensation Committee of
the Board or such other committee as the Board shall select (the “Committee”). The members of the
Committee shall be appointed from time to time by, and shall serve at the discretion of, the Board.



     3.2 Authority of the Committee. Except as limited by law or by the Amended and
Restated Certificate of Incorporation or Amended and Restated Bylaws of the Company, as amended
from time to time, and subject to the provisions herein, the Committee shall have full power to
select the Employees, Directors and Consultants who shall participate in the Plan; determine the
sizes and types of Awards; determine the terms and conditions of Awards in a manner consistent with
the Plan; construe and interpret the Plan and any Award Agreement or other agreement or instrument
entered into in connection with the Plan; establish, amend, or waive rules and regulations for the
Plan’s administration; and, subject to the provisions of Section 19.3 herein, amend the terms and
conditions of any outstanding Award and Award Agreement. Further, the Committee shall make all
other determinations that may be necessary or advisable for the administration of the Plan. As
permitted by law, the Committee may delegate its authority as identified herein.



     3.3 Decisions Binding. All determinations and decisions made by the Committee
pursuant to the provisions of the Plan and all related orders and resolutions of the Board shall be
final, conclusive and binding on all persons, including the Company, its Subsidiaries, its
stockholders, Directors, Employees, Consultants and their estates and beneficiaries and any
transferee of an Award.



5









 





Article 4. Shares Subject to the Plan; Individual Limits; and Anti-Dilution Adjustments




     4.1 Number of Shares Available for Grants.



          (a) Subject to adjustment as provided in Section 4.3 herein, the maximum number of Shares that
may be delivered pursuant to Awards under the Plan shall be 14,000,000, provided that:




     (i) Shares that are potentially deliverable under an Award granted under the Plan that
is canceled, forfeited, settled in cash, expires or is otherwise terminated without delivery
of such Shares shall not be counted as having been delivered under the Plan.




     (ii) Shares that have been issued in connection with an Award of Restricted Stock that
is canceled or forfeited prior to vesting or settled in cash, causing the Shares to be
returned to the Company, shall not be counted as having been delivered under the Plan.



     If Shares are returned to the Company in satisfaction of taxes relating to Restricted Stock,
in connection with a cash out of Restricted Stock (but excluding upon forfeiture of Restricted
Stock) or in connection with the tendering of Shares by a Participant in satisfaction of the
Exercise Price or taxes relating to an Award, such issued Shares shall not become available again
under the Plan. Each SAR issued under the Plan will be counted as one share issued under the Plan
without regard to the number of Shares issued to the Participant upon exercise of such SAR.



     Shares delivered pursuant to the Plan may be authorized but unissued Shares, treasury Shares
or Shares purchased on the open market.



          (b) Subject to adjustment as provided in Section 4.3 herein, all Shares available under the
Plan may be delivered in connection with “full value Awards,” meaning Awards other than Options,
SARs, or Other Awards for which the Participant pays the grant date intrinsic value.



          (c) Notwithstanding the foregoing, for purposes of determining the number of Shares available
for grant as Incentive Stock Options, only Shares that are subject to an Award that expires or is
cancelled, forfeited or settled in cash shall be treated as not having been issued under the Plan.



     4.2 Individual Limits. Subject to adjustment as provided in Section 4.3 herein, the
following rules shall apply with respect to Awards and any related dividends or Dividend
Equivalents intended to qualify for the Performance-Based Exception:



          (a) Options: The maximum aggregate number of Shares with respect to which Options may be
granted in any one fiscal year to any one Participant shall be 4,000,000 Shares.



          (b) SARs: The maximum aggregate number of Shares with respect to which Stock Appreciation
Rights may be granted in any one fiscal year to any one Participant shall be 4,000,000 Shares.



6









 





          (c) Restricted Stock: The maximum aggregate number of Shares of Restricted Stock that may be
granted in any one fiscal year to any one Participant shall be 2,000,000 Shares.



          (d) Restricted Stock Units: The maximum aggregate number of Shares with respect to which
Restricted Stock Units may be granted in any one fiscal year to any one Participant shall be
2,000,000 Shares.



          (e) Performance Shares: The maximum aggregate number of Shares with respect to which
Performance Shares may be granted in any one fiscal year to any one Participant shall be
2,000,000 Shares.



          (f) Performance Units: The maximum aggregate compensation that can be paid pursuant to
Performance Units awarded in any one fiscal year to any one Participant shall be $25,000,000 or a
number of Shares having an aggregate Fair Market Value not in excess of such amount.



          (g) Other Awards: The maximum aggregate compensation that can be paid pursuant to Other
Awards awarded in any one fiscal year to any one Participant shall be $25,000,000 or a number of
Shares having an aggregate Fair Market Value not in excess of such amount.



          (h) Dividends and Dividend Equivalents: The maximum dividend or Dividend Equivalent that may
be paid in any one fiscal year to any one Participant shall be $25,000,000.



     4.3 Adjustments in Authorized Shares and Awards. In the event of any equity
restructuring (within the meaning of Financial Accounting Standards No. 123R), such as a stock
dividend, stock split, spin-off, rights offering or recapitalization through a large, nonrecurring
cash dividend, the Committee shall cause an equitable adjustment to be made (i) in the number and
kind of Shares that may be delivered under the Plan under Section 4.1 hereof, (ii) in the
individual limitations set forth in Section 4.2 hereof and (iii) with respect to outstanding
Awards, in the number and kind of Shares subject to outstanding Awards, the Exercise Price, grant
price or other price of Shares subject to outstanding Awards, any performance conditions relating
to Shares, the market price of Shares, or per-Share results, and other terms and conditions of
outstanding Awards, in the case of (i), (ii) and (iii) to prevent dilution or enlargement of
rights. In the event of any other change in corporate capitalization, such as a merger,
consolidation or liquidation, the Committee may, in its sole discretion, cause an equitable
adjustment as described in the foregoing sentence to be made, to prevent dilution or enlargement of
rights. The number of Shares subject to any Award shall always be rounded down to a whole number
when adjustments are made pursuant to this Section 4.3. Adjustments made by the Committee pursuant
to this Section 4.3 shall be final, binding and conclusive.



Article 5. Eligibility and Participation




     5.1 Eligibility. Persons eligible to participate in the Plan include all Employees,
Directors and Consultants.



7









 





     5.2 Actual Participation. Subject to the provisions of the Plan, the Committee may,
from time to time, select from all eligible Employees, Directors and Consultants, those to whom
Awards shall be granted and shall determine the nature and amount of each Award.



Article 6. Options




     6.1 Grant of Options. Subject to the terms and provisions of the Plan, Options may be
granted to Participants in such amounts, upon such terms, and at such times as the Committee shall
determine.



     6.2 Award Agreement. Each Option grant shall be evidenced by an Award Agreement that
shall specify the Exercise Price, the duration of the Option, the number of Shares to which the
Option pertains, and such other provisions as the Committee shall determine. The Award Agreement
also shall specify whether the Option is intended to be an ISO or an NQSO. Options that are
intended to be ISOs shall be subject to the limitations set forth in Code Section 422.



     6.3 Exercise Price. The Exercise Price for each grant of an Option under the Plan
shall be at least equal to one hundred percent (100%) of the Fair Market Value of a Share on the
date the Option is granted; provided, however, that this restriction shall not apply to Replacement
Awards or Awards that are adjusted pursuant to Section 4.3 herein. No ISO granted to a Participant
who, at the time the ISO is granted, owns stock representing more than ten percent (10%) of the
voting power of all classes of stock of the Company or any Subsidiary shall have an Exercise Price
that is less than one hundred ten percent (110%) of the Fair Market Value of a Share on the date
the ISO is granted.



     6.4 Duration 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, that no Option shall
be exercisable later than the tenth (10th) anniversary date of its grant. No ISO granted to a
Participant who, at the time the ISO is granted, owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Subsidiary shall be
exercisable later than the fifth (5th) anniversary of the 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 set forth in the Award Agreement
and as the Committee shall in each instance approve, which need not be the same for each grant or
for each Participant.



     6.6 Payment. Options granted under this Article 6 shall be exercised by the delivery
of a written notice of exercise to the Company, setting forth the number of Shares with respect to
which the Option is to be exercised and specifying the method of payment of the Exercise Price.



     The Exercise Price of an Option shall be payable to the Company in full: (a) in cash or its
equivalent, (b) by tendering Shares or directing the Company to withhold Shares from the Option
having an aggregate Fair Market Value at the time of exercise equal to the Exercise Price, (c) by
broker-assisted cashless exercise, (d) in any other manner then permitted by the Committee, or (e)
by a combination of any of the permitted methods of payment. The Committee may limit any method of
payment, other than that specified under (a), for administrative convenience, to comply with
applicable law, or for any other reason.



8









 





     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, 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, and under any blue sky or state securities laws applicable to such Shares.



     6.8 Dividend Equivalents. At the discretion of the Committee, an Award of Options may
provide the Participant with the right to receive Dividend Equivalents, which may be paid currently
or credited to an account for the Participant, and may be settled in cash and/or Shares, as
determined by the Committee in its sole discretion, subject in each case to such terms and
conditions as the Committee shall establish.



     6.9 Termination of Employment or Service. Each Participant’s Option 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, if the Participant is a Director or
Consultant, service with the Company and/or a Subsidiary, as the case may be. Such provisions shall
be determined in the sole discretion of the Committee, need not be uniform among all Options, and
may reflect distinctions based on the reasons for termination of employment or service.



     6.10 Nontransferability of Options.



          (a) Incentive Stock Options. ISOs may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution,
and shall be exercisable during a Participant’s lifetime only by such Participant.



          (b) Nonqualified Stock Options. NQSOs may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution,
and shall be exercisable during a Participant’s lifetime only by such Participant. NQSOs may not
be transferred for value or consideration.



Article 7. Stock Appreciation Rights




     7.1 Grant of SARs. Subject to the terms and provisions of the Plan, SARs may be
granted to Participants in such amounts, upon such terms, and at such times as the Committee shall
determine. The Committee may grant Freestanding SARs, Tandem SARs, or any combination of these
forms of SAR.



     The Committee shall have complete discretion in determining the number of SARs granted to each
Participant (subject to Article 4 herein) and, consistent with the provisions of the Plan, in
determining the terms and conditions pertaining to such SARs.



     The grant price of a Freestanding SAR shall at least equal the Fair Market Value of a Share on
the date of grant of the SAR, and the grant price of a Tandem SAR shall equal the Exercise Price of
the related Option; provided, however, that this restriction shall not apply to Replacement Awards
or Awards that are adjusted pursuant to Section 4.3 herein.



     7.2 Exercise of Tandem SARs. A Tandem SAR may be exercised only with respect to the
Shares for which its related Option is then exercisable. To the extent exercisable, Tandem SARs



9









 







may be exercised for all or part of the Shares subject to the related Option. The exercise of
all or part of a Tandem SAR shall result in the forfeiture of the right to purchase a number of
Shares under the related Option equal to the number of Shares with respect to which the SAR is
exercised. Conversely, upon exercise of all or part of an Option with respect to which a Tandem SAR
has been granted, an equivalent portion of the Tandem SAR shall similarly be forfeited.



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



     7.3 Exercise of Freestanding SARs. Freestanding SARs may be exercised upon whatever
terms and conditions the Committee, in its sole discretion, imposes upon them and sets forth in the
Award Agreement.



     7.4 Award Agreement. Each SAR grant 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.



     7.5 Term of SARs. The term of an SAR granted under the Plan shall be determined by
the Committee, in its sole discretion; provided, however, that such term shall not exceed ten (10)
years.



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



          (a) the difference between 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.



     At the discretion of the Committee, the payment upon SAR exercise may be in cash, in Shares of
equivalent value, or in some combination thereof.



     7.7 Dividend Equivalents. At the discretion of the Committee, an Award of SARs may
provide the Participant with the right to receive Dividend Equivalents, which may be paid currently
or credited to an account for the Participant, and may be settled in cash and/or Shares, as
determined by the Committee in its sole discretion, subject in each case to such terms and
conditions as the Committee shall establish.



     7.8 Termination of Employment or Service. Each SAR 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 or, if the Participant is a Director or Consultant, service with
the Company and/or a Subsidiary, as the case may be. Such provisions shall be determined in the
sole



10









 







discretion of the Committee, need not be uniform among all SARs, and may reflect distinctions
based on the reasons for termination of employment or service.



     7.9 Nontransferability of SARs. SARs may not be sold, transferred, pledged, assigned,
or otherwise alienated or hypothecated, other than by will or by the laws of descent and
distribution, and shall be exercisable during a Participant’s lifetime only by such Participant.
SARs may not be transferred for value or consideration.



Article 8. Restricted Stock




     8.1 Grant of Restricted Stock. Subject to the terms and provisions of the Plan,
Restricted Stock may be granted to Participants in such amounts, upon such terms, and at such times
as the Committee shall determine.



     8.2 Award Agreement. Each Restricted Stock grant shall be evidenced by an Award
Agreement that shall specify the Period(s) of Restriction and, if applicable, Performance
Period(s), the number of Shares of Restricted Stock 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 granted pursuant to the Plan as it may deem
advisable including, without limitation, a requirement that Participants pay a stipulated purchase
price for each Share of Restricted Stock, a requirement that the issuance of Shares of Restricted
Stock be delayed, 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. The Company may retain in its
custody any certificate evidencing the Shares of Restricted Stock and place thereon a legend and
institute stop-transfer orders on such Shares, and the Participant shall be obligated to sign any
stock power requested by the Company relating to the Shares to give effect to the forfeiture
provisions of the Restricted Stock.



     8.4 Removal of Restrictions. Subject to applicable laws, Restricted Stock shall
become freely transferable by the Participant after the last day of the Period of Restriction
applicable thereto. Once Restricted Stock is released from the restrictions, the Participant shall
be entitled to receive a certificate evidencing the Shares.



     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 exercise full
voting rights with respect to those Shares during the Period of Restriction.



     8.6 Dividends and Other Distributions. Except as otherwise provided in a
Participant’s Award Agreement, during the Period of Restriction, Participants holding Shares of
Restricted Stock shall receive all regular cash dividends paid with respect to all Shares while
they are so held, and, except as otherwise determined by the Committee, all other distributions
paid with respect to such Restricted Stock shall be credited to Participants subject to the same
restrictions on transferability



11









 







and forfeitability as the Restricted Stock with respect to which they were paid and paid at
such time following full vesting as are paid the Shares of Restricted Stock with respect to which
such distributions were made.



     8.7 Termination of Employment or Service. Each Award Agreement shall set forth the
extent to which the Participant shall have the right to retain unvested Restricted Stock following
termination of the Participant’s employment or, if the Participant is a Director or Consultant,
service with the Company and/or a Subsidiary, as the case may be. Such provisions shall be
determined in the sole discretion of the Committee, need not be uniform among all Awards of
Restricted Stock, and may reflect distinctions based on the reasons for termination of employment
or service.



     8.8 Nontransferability of Restricted Stock. Except as otherwise determined by the
Committee, during the applicable Period of Restriction, a Participant’s Restricted Stock and rights
relating thereto shall be available during the Participant’s lifetime only to such Participant, and
such Restricted Stock and related rights may not be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated other than by will or by the laws of descent and distribution.



Article 9. Restricted Stock Units and Performance Shares




     9.1 Grant of Restricted Stock Units/Performance Shares. Subject to the terms and
provisions of the Plan, Restricted Stock Units and Performance Shares may be granted to
Participants in such amounts, upon such terms, and at such times as the Committee shall determine.



     9.2 Award Agreement. Each grant of Restricted Stock Units or Performance Shares shall
be evidenced by an Award Agreement that shall specify the applicable Period(s) of Restriction
and/or Performance Period(s) (as the case may be), the number of Restricted Stock Units or
Performance Shares granted, and such other provisions as the Committee shall determine. The initial
value of a Restricted Stock Unit or Performance Share shall be at least equal to the Fair Market
Value of a Share on the date of grant; provided, however, that this restriction shall not apply to
Replacement Awards or Awards that are adjusted pursuant to Section 4.3 herein.



     9.3 Form and Timing of Payment. Except as otherwise provided in Article 17 herein or
a Participant’s Award Agreement, payment of Restricted Stock Units or Performance Shares shall be
made at a specified settlement date that shall not be earlier than the last day of the Period of
Restriction or Performance Period, as the case may be. The Committee, in its sole discretion, may
pay earned Restricted Stock Units and Performance Shares by delivery of Shares or by payment in
cash of an amount equal to the Fair Market Value of such Shares (or a combination thereof). The
Committee may provide that settlement of Restricted Stock Units or Performance Shares shall be
deferred, on a mandatory basis or at the election of the Participant.



     9.4 Voting Rights. A Participant shall have no voting rights with respect to any
Restricted Stock Units or Performance Shares granted hereunder; provided, however, that the
Committee may deposit Shares potentially deliverable in connection with Restricted Stock Units or
Performance Shares in a rabbi trust, in which case the Committee may provide for pass through
voting rights with respect to such deposited Shares.



     9.5 Dividend Equivalents. At the discretion of the Committee, an Award of Restricted
Stock Units or Performance Shares may provide the Participant with the right to receive Dividend



12









 







Equivalents, which may be paid currently or credited to an account for the Participant, and
may be settled in cash and/or Shares, as determined by the Committee in its sole discretion,
subject in each case to such terms and conditions as the Committee shall establish.



     9.6 Termination of Employment or Service. Each Award Agreement shall set forth the
extent to which the Participant shall have the right to receive a payout with respect to an Award
of Restricted Stock Units or Performance Shares following termination of the Participant’s
employment or, if the Participant is a Director or Consultant, service with the Company and/or a
Subsidiary, as the case may be. Such provisions shall be determined in the sole discretion of the
Committee, need not be uniform among all Restricted Stock Units or Performance Shares, and may
reflect distinctions based on the reasons for termination of employment or service.



     9.7 Nontransferability. Except as otherwise determined by the Committee, Restricted
Stock Units and Performance Shares and rights relating thereto may not be sold, transferred,
pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution.



Article 10. Performance Units




     10.1 Grant of Performance Units. Subject to the terms and conditions of the Plan,
Performance Units may be granted to Participants in such amounts, upon such terms, and at such
times as the Committee shall determine.



     10.2 Award Agreement. Each grant of Performance Units shall be evidenced by an Award
Agreement that shall specify the number of Performance Units granted, the Performance Period(s),
the performance goals and such other provisions as the Committee shall determine.



     10.3 Value of Performance Units. The Committee shall set performance goals in its
discretion that, depending on the extent to which they are met, will determine the number and/or
value of Performance Units that will be paid out to the Participants.



     10.4 Form and Timing of Payment. Except as otherwise provided in Article 17 herein or
a Participant’s Award Agreement, payment of earned Performance Units shall be made following the
close of the applicable Performance Period. The Committee, in its sole discretion, may pay earned
Performance Units in cash or in Shares that have an aggregate Fair Market Value equal to the value
of the earned Performance Units (or a combination thereof). The Committee may provide that
settlement of Performance Units shall be deferred, on a mandatory basis or at the election of the
Participant.



     10.5 Dividend Equivalents. At the discretion of the Committee, an Award of
Performance Units may provide the Participant with the right to receive Dividend Equivalents, which
may be paid currently or credited to an account for the Participant, and may be settled in cash
and/or Shares, as determined by the Committee in its sole discretion, subject in each case to such
terms and conditions as the Committee shall establish.



     10.6 Termination of Employment or Service. Each Award Agreement shall set forth the
extent to which the Participant shall have the right to receive a payout with respect to an Award
of Performance Units following termination of the Participant’s employment or, if the Participant
is a



13









 







Director or Consultant, service with the Company and/or a Subsidiary, as the case may be. Such
provisions shall be determined in the sole discretion of the Committee, need not be uniform among
all Performance Units and may reflect distinctions based on reasons for termination of employment
or service.



     10.7 Nontransferability. Except as otherwise determined by the Committee, Performance
Units and rights relating thereto may not be sold, transferred, pledged, assigned or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution.



Article 11. Other Awards




     11.1 Grant of Other Awards. Subject to the terms and conditions of the Plan, Other
Awards may be granted to Participants in such amounts, upon such terms, and at such times as the
Committee shall determine. Types of Other Awards that may be granted pursuant to this Article 11
include, without limitation, the payment of cash or Shares based on attainment of performance goals
established by the Committee, the payment of Shares as a bonus or in lieu of cash based on
attainment of performance goals established by the Committee, and the payment of Shares in lieu of
cash under other Company incentive or bonus programs.



     11.2 Payment of Other Awards. Payment under or settlement of any such Awards shall be
made in such manner and at such times as the Committee may determine.



     11.3 Termination of Employment or Service. The Committee shall determine the extent
to which the Participant shall have the right to receive Other Awards following termination of the
Participant’s employment or, if the Participant is a Director or Consultant, service with the
Company and/or a Subsidiary, as the case may be. Such provisions shall be determined in the sole
discretion of the Committee, may be included in an agreement entered into with each Participant,
but need not be uniform among all Other Awards, and may reflect distinctions based on the reasons
for termination of employment or service.



     11.4 Nontransferability. Except as otherwise determined by the Committee, Other
Awards and rights relating thereto may not be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will or by the laws of descent and distribution.



Article 12. Replacement Awards




     Each Replacement Award shall have substantially the same terms and conditions (as determined
by the Committee) as the award it replaces; provided, however, that the number of Shares subject to
Replacement Awards, the Exercise Price, grant price or other price of Shares subject to Replacement
Awards, any performance conditions relating to Shares underlying Replacement Awards, or the market
price of Shares underlying Replacement Awards or per-Share results may differ from the awards they
replace to the extent such differences are determined to be appropriate and equitable by the
Committee, in its sole discretion.



Article 13. Performance Measures




     The Committee may specify that the attainment of one or more of the performance measures set
forth in this Article 13 shall determine the degree of granting, vesting and/or payout with respect



14









 







to Awards (including any related dividends or Dividend Equivalents) that the Committee intends
will qualify for the Performance-Based Exception. The performance goals to be used for such Awards
shall be chosen from among the following performance measure(s): earnings per share, economic value
created, market share (actual or targeted growth), net income (before or after taxes), operating
income, adjusted net income after capital charge, return on assets (actual or targeted growth),
return on capital (actual or targeted growth), return on equity (actual or targeted growth), return
on investment (actual or targeted growth), revenue (actual or targeted growth), cash flow,
operating margin, share price, share price growth, total stockholder return, and strategic business
criteria consisting of one or more objectives based on meeting specified market penetration goals,
productivity measures, geographic business expansion goals, cost targets, customer satisfaction or
employee satisfaction goals, goals relating to merger synergies, management of employment practices
and employee benefits, or supervision of litigation and information technology, and goals relating
to acquisitions or divestitures of Subsidiaries and/or other affiliates or joint ventures. The
targeted level or levels of performance with respect to such performance measures may be
established at such levels and on such terms as the Committee may determine, in its discretion,
including in absolute terms, as a goal relative to performance in prior periods, or as a goal
compared to the performance of one or more comparable companies or an index covering multiple
companies. Awards (including any related dividends or Dividend Equivalents) that are not intended
to qualify for the Performance-Based Exception may be based on these or such other performance
measures as the Committee may determine.



     Achievement of performance goals in respect of Awards intended to qualify under the
Performance-Based Exception shall be measured over a Performance Period, and the goals shall be
established not later than ninety (90) days after the beginning of the Performance Period or, if
less than (90) days, the number of days that is equal to twenty-five percent (25%) of the relevant
Performance Period applicable to the Award. The Committee shall have the discretion to adjust the
determinations of the degree of attainment of the pre-established performance goals; provided,
however, that Awards that are designed to qualify for the Performance-Based Exception may not be
adjusted upward (the Committee may, in its discretion, adjust such Awards downward).



Article 14. Beneficiary Designation




     Each Participant under the Plan may, from time to time, name any beneficiary or beneficiaries
(who may be named contingently or successively) to whom any benefit under the Plan is to be paid in
case of his or her death before he or she 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
during the Participant’s lifetime with the Committee. In the absence of any such designation,
benefits remaining unpaid at the Participant’s death shall be paid to the Participant’s estate.



Article 15. Deferrals




     If permitted by the Committee, a Participant may defer receipt of amounts that would otherwise
be provided to such Participant with respect to an Award, including Shares deliverable upon
exercise of an Option or SAR or upon payout of any other Award. If permitted, such deferral (and
the required deferral election) shall be made in accordance with, and shall be subject to, the
terms and conditions of the applicable nonqualified deferred compensation plan, agreement or



15









 







arrangement under which such deferral is made and such other terms and conditions as the
Committee may prescribe.



Article 16. Rights of Participants




     16.1 Continued Service. Nothing in the Plan shall:



          (a) interfere with or limit in any way the right of the Company or a Subsidiary to terminate
any Participant’s employment or service at any time,



          (b) confer upon any Participant any right to continue in the employ or service of the Company
or a Subsidiary, nor



          (c) confer on any Director any right to continue to serve on the Board of Directors of the
Company or a Subsidiary.



     16.2 Participation. No Employee, Director or Consultant shall have the right to be
selected to receive an Award under the Plan, or, having been so selected, to be selected to receive
future Awards.



Article 17. Change in Control




     Except as otherwise provided in a Participant’s Award Agreement, upon the occurrence of a
Change in Control, unless otherwise specifically prohibited under applicable laws, or by the rules
and regulations of any governing governmental agencies or national securities exchanges:



          (a) any and all outstanding Options and SARs granted hereunder shall become immediately
exercisable; provided, however, that the Committee may instead provide that such Awards shall be
automatically cashed out upon a Change in Control;



          (b) any Period of Restriction or other restriction imposed on Restricted Stock, Restricted
Stock Units and Other Awards shall lapse; and



          (c) any and all Performance Shares, Performance Units and other Awards (if performance-based)
shall be deemed earned at the target level (or if no target level is specified, the maximum level)
with respect to all open Performance Periods.



Article 18. Additional Forfeiture Provisions




     The Committee may condition a Participant’s right to receive a grant of an Award, to vest in
the Award, to exercise the Award, to retain cash, Shares, other Awards, or other property acquired
in connection with the Award, or to retain the profit or gain realized by the Participant in
connection with the Award, including cash or other proceeds received upon sale of Shares acquired
in connection with an Award, upon compliance by the Participant with specified conditions relating
to non-competition, confidentiality of information relating to or possessed by the Company,
non-solicitation of customers, suppliers, and employees of the Company, cooperation in litigation,
non-disparagement of the Company and its officers, directors and affiliates, and other restrictions
upon or



16









 







covenants of the Participant, including during specified periods following termination of
employment with or service for the Company and/or a Subsidiary.



Article 19. Amendment, Modification, and Termination




     19.1 Amendment, Modification, and Termination. The Board may at any time and from
time to time, alter, amend, suspend or terminate the Plan in whole or in part; provided, however,
that no amendment that requires stockholder approval in order for the Plan to continue to comply
with the New York Stock Exchange listing standards or any rule promulgated by the United States
Securities and Exchange Commission or any securities exchange on which the securities of the
Company are listed shall be effective unless such amendment shall be approved by the requisite vote
of stockholders of the Company entitled to vote thereon within the time period required under such
applicable listing standard or rule.



     19.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
Events. The Committee may make 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 4.3 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
dilution or enlargement of the benefits or potential benefits intended to be made available under
the Plan; provided, however, that (except as provided in Section 4.3 hereof) the Committee does not
have the power to amend the terms of previously granted options to reduce the exercise price per
share subject to such options, or to cancel such options and grant substitute options with a lower
exercise price per share than the cancelled options. The Company is not permitted to purchase for
cash previously granted options with an exercise price that is greater than the Company’s trading
price on the proposed date of purchase.. With respect to any Awards intended to comply with the
Performance-Based Exception, any such exception shall be specified at such times and in such manner
as will not cause such Awards to fail to qualify under the Performance-Based Exception.



     19.3 Awards Previously Granted. No termination, amendment or modification of the Plan
or of any Award shall adversely affect in any material way any Award previously granted under the
Plan without the written consent of the Participant holding such Award, unless such termination,
modification or amendment is required by applicable law and except as otherwise provided herein.



     19.4 Compliance with the Performance-Based Exception. If it is intended that an Award
(and/or any dividends or Dividend Equivalents relating to such Award) comply with the requirements
of the Performance-Based Exception, the Committee may apply any restrictions it deems appropriate
such that the Awards (and/or dividends or Dividend Equivalents) maintain eligibility for the
Performance-Based Exception. If changes are made to Code Section 162(m) or regulations promulgated
thereunder to permit greater flexibility with respect to any Award or Awards available under the
Plan, the Committee may, subject to this Article 19, make any adjustments to the Plan and/or Award
Agreements it deems appropriate.



17









 





Article 20. Withholding




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



     20.2 Use of Shares to Satisfy Withholding Obligation. With respect to withholding
required upon the exercise of Options or SARs, upon the vesting or settlement of Restricted Stock,
Restricted Stock Units, Performance Shares or Performance Units, or upon any other taxable event
arising as a result of Awards granted hereunder, the Committee may require or may permit
Participants to elect that the withholding requirement be satisfied, in whole or in part, by having
the Company withhold, or by tendering to the Company, Shares having a Fair Market Value equal to
the minimum statutory withholding (based on minimum statutory withholding rates for federal and
state tax purposes, including payroll taxes) that could be imposed on the transaction and, in any
case in which it would not result in additional accounting expense to the Company, taxes in excess
of the minimum statutory withholding amounts. Any such elections by a Participant shall be
irrevocable, made in writing and signed by the Participant.



Article 21. Indemnification




     Each person who is or shall have been a member of the Committee, or of the Board, shall be
indemnified and held harmless by the Company to the fullest extent permitted by Delaware law
against and from any loss, cost, liability, or expense that may be imposed upon or reasonably
incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding
to which he or she may be a party or in which he or she may be involved by reason of any action
taken or failure to act under the Plan and against and from any and all amounts paid by him or her
in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any
judgment in any such action, suit, or proceeding against him or her, provided he or she shall give
the Company an opportunity, at its own expense, to handle and defend the same before he or she
undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification
is subject to the person having been successful in the legal proceedings or having acted in good
faith and what is reasonably believed to be a lawful manner in the Company’s best interests. The
foregoing right of indemnification shall not be exclusive of any other rights of indemnification to
which such persons 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.



Article 22. Successors




     All obligations of the Company under the Plan and with respect to Awards 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 other event, or a sale or disposition of all or
substantially all of the business and/or assets of the Company.



18









 





Article 23. Legal Construction




     23.1 Gender, Number and References. 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. Any reference in the Plan to an act or code or
to any section thereof or rule or regulation thereunder shall be deemed to refer to such act, code,
section, rule or regulation, as may be amended from time to time, or to any successor act, code,
section, rule or regulation.



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



     23.3 Requirements of Law. The granting of Awards and the issuance of Shares under the
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.



     23.4 Governing Law. To the extent not preempted by federal law, the Plan, and all
agreements hereunder, shall be construed in accordance with and governed by the laws of the State
of Florida, without giving effect to conflicts or choice of law principles.



     23.5 Non-Exclusive Plan. Neither the adoption of the Plan by the Board nor its
submission to the stockholders of the Company for approval shall be construed as creating any
limitations on the power of the Board or a committee thereof to adopt such other incentive
arrangements as it may deem desirable, including other incentive arrangements and awards that do or
do not qualify under the Performance-Based Exception.



     23.6 Code Section 409A Compliance. To the extent applicable, it is intended that this
Plan and any Awards granted under the Plan comply with the requirements of Code Section 409A and
any related regulations or other guidance promulgated with respect to such Section by the U.S.
Department of the Treasury or the Internal Revenue Service (collectively “Section 409A”). Any
provision that would cause the Plan or any Award granted under the Plan to fail to satisfy Section
409A shall have no force or effect until amended to comply with Section 409A, which amendment may
be retroactive to the extent permitted by Section 409A.




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