Coventry Health Care, Inc. 2004 Incentive Plan, effective June 3, 2005.



Exhibit 10.17





COVENTRY HEALTH CARE,
INC. 
2004 INCENTIVE PLAN 




SECTION 1. Purpose;
Definitions. 



        The
purpose of the 2004 Incentive Plan (the “Plan”) is to enable Coventry Health
Care, Inc., a Delaware corporation (the “Company”), to attract, retain and
reward key employees of and consultants to the Company and its Subsidiaries and
Affiliates, and directors who are not also employees of the Company, and to strengthen the
mutuality of interests between such key employees, consultants, and directors by awarding
such key employees, consultants, and directors performance-based stock incentives and/or
other equity interests or equity-based incentives in the Company, as well as incentives
payable in cash. The creation of the Plan shall not diminish or prejudice other
compensation programs approved from time to time by the Board. With respect to any awards
granted under the Plan that are intended to comply with the requirements of
“performance-based compensation” under Section 162(m) of the Code, the Plan
shall be interpreted in a manner consistent with those requirements. 



        For
purposes of the Plan, the following terms shall be defined as set forth below: 



     	A. 	  	
          “Affiliate” means any entity other than the Company and its
          Subsidiaries that is designated by the Board as a participating employer under
          the Plan, provided that the Company directly or indirectly owns at least 20% of
          the combined voting power of all classes of stock of such entity or at least 20%
          of the ownership interests in such entity. 



          



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



          



     	C. 	  	
          “Cause” has the meaning provided in Section 5(j) of the Plan. 



          



     	D. 	  	
          “Change in Control” has the meaning provided in Section 12(b) of the
          Plan. 



          



     	E. 	  	
          “Change in Control Price” has the meaning provided in Section 12(d) of
          the Plan. 



          



     	F. 	  	
          “Code” means the Internal Revenue Code of 1986, as amended from time
          to time, and any successor thereto. 



          



     	G. 	  	
          “Common Stock” means the Company’s Common Stock, par value $.01
          per share. 



          



     	H. 	  	
          “Committee” means the Compensation Committee of the Board of Directors
          of the Company. 



          



	I. 	  	“Company” means Coventry Health Care, Inc., a corporation organized under the laws of the State of
Delaware or any successor corporation. 






	J.	  	“Covered Officer” shall mean at any date (i) any individual who, with respect to the previous
taxable year of the Company, was a “covered employee” of the Company within the
meaning of Section 162(m); provided, however, that the term “Covered Officer”
shall not include any such individual who is designated by the Committee, in its
discretion, at the time of any Award or at any subsequent time, as reasonably expected not
to be such a “covered employee” with respect to the current taxable year of the
Company and (ii) any individual who is designated by the Committee, in its discretion, at
the time of any Award or at any subsequent time, as reasonably expected to be such a
“covered employee” with respect to the current taxable year of the Company or
with respect to the taxable year of the Company in which any applicable Award will be
paid. 






          	K. 	  	
               “Disability” means disability as determined under the Company’s
               Group Long Term Disability Insurance Plan. 



               



          	L. 	  	
               “Early Retirement” means retirement, for purposes of this Plan with
               the express consent of the Company at or before the time of such retirement,
               from active employment with the Company and any Subsidiary or Affiliate prior to
               age 65, in accordance with any applicable early retirement policy of the Company
               then in effect or as may be approved by the Committee. 



               



          	M. 	  	
               “Effective Date” has the meaning provided in Section 16 of the Plan. 



               



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



               



          	O. 	  	
               “Fair Market Value” means with respect to the Common Stock, as of any
               given date or dates, unless otherwise determined by the Committee in good faith,
               the reported closing price on the date of grant, or if such date shall fall on a
               non-business day, the reported closing price on the business day immediately
               preceding the date of grant of a share of Common Stock on the New York Stock
               Exchange or such other market or exchange as is the principal trading market for
               the Common Stock, or, if no such sale of a share of Common Stock is reported on
               the New York Stock Exchange or other exchange or principal trading market on
               such date, the fair market value of a share of Common Stock as determined by the
               Committee in good faith. 



               



          	P. 	  	
               “Incentive Stock Option” means any Stock Option intended to be and
               designated as an “Incentive Stock Option” within the meaning of
               Section 422 of the Code. 



               



          	Q. 	  	
               “Immediate Family” means any child, stepchild, grandchild, parent,
               stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
               son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall include
               adoptive relationships. 



               



          	R. 	  	
               “Independent Director” means a member of the Board who is an
               “Independent Director” within the meaning of Rule 16b-3(b)(3)
               promulgated under the Exchange Act, an outside director within the meaning of
               Treasury Regulation Sec. 162-27(e)(3) promulgated under the Code, and who
               satisfies the applicable independence requirements of the New York Stock
               Exchange. 



               



          	S. 	  	
               “Non-Qualified Stock Option” means any Stock Option that is not an
               Incentive Stock Option. 



               



          	T. 	  	
               “Normal Retirement” means retirement from active employment with the
               Company and any Subsidiary or Affiliate on or after age 65. 



               



          	U. 	  	
               “Other Stock-Based Award” means an award under Section 10 below that
               is valued in whole or in part by reference to, or is otherwise based on, the
               Common Stock. 



               



          	V. 	  	
               “Outside Director” means a member of the Board who is not then (i) an
               officer or employee of the Company or any Subsidiary or Affiliate of the
               Company, or (ii) the direct or beneficial owner of five percent (5%) or more of
               the Common Stock of the Company. 



               



          	W. 	  	
               “Outside Director Stock Option” means an award to an Outside Director
               under Section 11 below. 



               



          	X. 	  	
               “Performance Award” means an award under Sections 8 and 9 below. 



               



          	Y. 	  	
               “Plan” means this 2004 Stock Incentive Plan, as amended from time to
               time. 



               



          	Z. 	  	
               “Restricted Stock” means an award of shares of Common Stock that is
               subject to restrictions under Section 7 and/or Section 11 of the Plan. 



               



          	AA. 	  	
               “Restriction Period” has the meaning provided in Section 7 of the
               Plan. 



               



          	BB. 	  	
               “Retirement” means Normal or Early Retirement. 



               



          	CC. 	  	
               “Section 162(m) Maximum” has the meaning provided in Section 3(b)
               hereof. 



               



          	DD. 	  	
               “Stock Appreciation Right” or “SAR” means the right,
               pursuant to an award granted under Section 6 below, to receive in cash and/or
               shares upon exercise the increase in the Fair Market Value of a share of Common
               Stock above the Fair Market Value (or other price established by the Committee)
               of a share of Common Stock on the date of grant. 



               



          	EE. 	  	
               “Stock Option” or “Option” means any option to purchase
               shares of Common Stock (including Restricted Stock, if the Committee so
               determines) granted pursuant to Section 5 and/or Section 11 below. 



               



          	FF. 	  	
               “Subsidiary” means any corporation (other than the Company) in an
               unbroken chain of corporations beginning with the Company if each of the
               corporations (other than the last corporation in the unbroken chain) owns stock
               possessing 50% or more of the total combined voting power of all classes of
               stock in one of the other corporations in the chain. 



               




SECTION 2.
Administration. 



        The
Plan shall be administered by the Committee. Each member of the Committee shall be an
Independent Director. The Committee shall have authority to grant, pursuant to the terms
of the Plan, to officers, other key employees, Outside Directors and consultants eligible
under Section 4: (i) Stock Options, (ii) Stock Appreciation Rights, (iii) Restricted
Stock, (iv) Performance Awards and/or (v) Other Stock-Based Awards; provided, however,
that the power to grant and establish the terms and conditions of awards to Outside
Directors under the Plan other than pursuant to Section 11 shall be reserved to the Board. 



        In
particular, the Committee, or the Board, as the case may be, shall have the authority,
consistent with the terms of the Plan: 



          	(a) 	  	
               to select the officers, key employees and Outside Directors of and consultants
               to the Company and its Subsidiaries and Affiliates to whom Stock Options, Stock
               Appreciation Rights, Restricted Stock, Performance Awards, and/or Other
               Stock-Based Awards may from time to time be granted hereunder; 



               



          	(b) 	  	
               to determine whether and to what extent Incentive Stock Options, Non-Qualified
               Stock Options, Stock Appreciation Rights, Restricted Stock, Performance Awards
               and/or Other Stock-Based Awards, or any combination thereof, are to be granted
               hereunder to one or more eligible persons; 



               



          	(c) 	  	
               to determine the number of shares to be covered by each such award granted
               hereunder; 



               



          	(d) 	  	
               to determine the terms and conditions, not inconsistent with the terms of the
               Plan, of any award granted hereunder (including, but not limited to, the share
               price and any restriction or limitation, performance requirement or any vesting
               acceleration or waiver of forfeiture restrictions regarding any Stock Option or
               other award and/or the shares of Common Stock relating thereto, based in each
               case on such factors as the Committee shall determine, in its sole discretion);
               and to amend or waive any such terms and conditions to the extent permitted by
               Section 13 hereof; 



               



          	(e) 	  	
               to determine whether and under what circumstances a Stock Option may be settled
               in cash or Restricted Stock under Section 5(m) or (n), as applicable, instead of
               Common Stock; 



               



	(f)	  	to determine whether, to what extent, and under what circumstances Option grants and/or other
awards under the Plan are to be made, and operate, on a tandem basis vis-a-vis other
awards under the Plan and/or cash awards made outside of the Plan; 






          	(g) 	  	
               to determine whether, to what extent, and under what circumstances shares of
               Common Stock and other amounts payable with respect to an award under this Plan
               shall be deferred either automatically or at the election of the participant
               (including providing for and determining the amount (if any) of any deemed
               earnings on any deferred amount during any deferral period); 



               



          	(h) 	  	
               to determine whether to require payment of tax withholding requirements in
               shares of Common Stock subject to the award; and 



               


          	(i)	  	to
impose any holding period required to satisfy Section 16 under the Exchange Act. 



               



        The
Committee shall have the authority to adopt, alter, and repeal such rules, guidelines, and
practices governing the Plan as it shall, from time to time, deem advisable; to interpret
the terms and provisions of the Plan and any award issued under the Plan (and any
agreements relating thereto); and to otherwise supervise the administration of the Plan. 



        All
decisions made by the Committee pursuant to the provisions of the Plan shall be made in
the Committee’s sole discretion and shall be final and binding on all persons,
including the Company and Plan participants. 




SECTION 3. Shares of
Common Stock Subject to Plan. 



         (a)       
          The maximum number shares of Common Stock that may be issued pursuant to awards
          under this Plan and the Company’s Amended and Restated 1998 Stock Incentive
          Plan and the Assumed Plans as defined therein (collectively, the “1998
          Plan”) shall be 6,000,000 shares plus any shares that are available or may
          become available at any time under the 1998 Plan, subject to adjustments set
          forth herein. From and after the date of adoption of this Plan, no further
          grants shall be made under the 1998 Plan. 



         (b)       
          The shares of Common Stock issuable under the Plan may consist, in whole or in
          part, of authorized and unissued shares or treasury shares. No officer of the
          Company or other person whose compensation may be subject to the limitations on
          deductibility under Section 162(m) of the Code shall be eligible to receive
          awards pursuant to this Plan in excess of 1,000,000 shares of Common Stock in
          any fiscal year (the “Section 162(m) Maximum”). 



         (c)       
          If any shares of Common Stock that have been optioned hereunder cease to be
          subject to such option, or if any shares of Common Stock that are subject to any
          Restricted Stock, Performance Awards settled in stock or Other Stock-Based Award
          granted hereunder are forfeited, or any such award otherwise terminates without
          a payment being made to the participant in the form of Common Stock, such shares
          shall again be available for distribution in connection with future awards under
          the Plan, so long as the total does not exceed the number specified in 3(a)
          above. 



         (d)       
          No more than five percent (5%) of the total number of shares of Common Stock
          outstanding on April 5, 2004, the record date of the 2004 Annual Meeting of
          Shareholders, may be issued as shares of Restricted Stock, Performance Awards or
          Other Stock-Based Awards under this Plan and the 1998 Plan. 



         (e)       
          In the event the Committee determines that any merger, reorganization,
          consolidation, recapitalization, extraordinary cash dividend, stock dividend,
          stock split or other change in corporate structure affecting the Common Stock or
          other similar corporate transaction affects shares of Common Stock such than an
          adjustment is determined by the Committee in its sole discretion to be
          appropriate, an appropriate substitution or adjustment shall be made in the
          maximum number of shares that may be awarded under the Plan, in the number and
          option price of shares subject to outstanding Options granted under the Plan, in
          the number of shares underlying Outside Director Stock Options to be granted
          under Section 11 hereof, the Section 162(m) Maximum and in the number of shares
          subject to other outstanding awards granted under the Plan as may be determined
          to be appropriate by the Committee, in its sole discretion, provided that the
          number of shares subject to any award shall always be a whole number. An
          adjusted option price shall also be used to determine the amount payable by the
          Company upon the exercise of any Stock Appreciation Right. 




SECTION 4. Eligibility. 



        Officers,
other key employees and Outside Directors of and consultants to the Company and its
Subsidiaries and Affiliates who are responsible for or contribute to the management,
growth and/or profitability of the business of the Company and/or its Subsidiaries and
Affiliates are eligible to be granted awards under the Plan. Outside Directors are
eligible to receive awards pursuant to Section 11 and as otherwise determined by the
Board. 




SECTION 5. Stock Options. 



        Stock
Options may be granted alone, in addition to, or in tandem with other awards granted under
the Plan and/or cash awards made outside of the Plan. Any Stock Option granted under the
Plan shall be in such form as the Committee may from time to time approve. 



        Stock
Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii)
Non-Qualified Stock Options. Incentive Stock Options may be granted only to individuals
who are employees of the Company or any Subsidiary of the Company. 



        The
Committee shall have the authority to grant to any optionee Incentive Stock Options,
Non-Qualified Stock Options, or both types of Stock Options. 



        Options
granted to officers, key employees, Outside Directors and consultants under the Plan shall
be subject to the following terms and conditions and shall contain such additional terms
and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem
desirable. 



         (a)       
          Option Price. The option price per share of Common Stock
          purchasable under a Stock Option shall be determined by the Committee at the
          time of grant but shall be not less than 100% (or, in the case of any employee
          who owns stock possessing more than 10% of the total combined voting power of
          all classes of stock of the Company or of any of its Subsidiaries, not less than
          110%) of the Fair Market Value of the Common Stock at grant, in the case of
          Incentive Stock Options, and not less than 100% of the Fair Market Value of the
          Common Stock at grant, in the case of Non-Qualified Stock Options. 



         (b)       
          Option Term. The term of each Stock Option shall be fixed by the
          Committee, but no Stock Option shall be exercisable more than ten years (or, in
          the case of an Incentive Stock Option issued to an employee who owns stock
          possessing more than 10% of the total combined voting power of all classes of
          stock of the Company or any of its Subsidiaries or parent corporations, more
          than five years) after the date the Option is granted. 



         (c)       
          Exercisability. Stock Options shall be exercisable at such time
          or times and subject to such terms and conditions as shall be determined by the
          Committee at or after grant; provided, however, that except as provided in
          Section 5(g) and (h) and Section 12, unless otherwise determined by the
          Committee at or after grant, no Stock Option shall be exercisable prior to the
          first anniversary date of the granting of the Option. The Committee may provide
          that a Stock Option shall vest over a period of future service at a rate
          specified at the time of grant, or that the Stock Option is exercisable only in
          installments. If the Committee provides, in its sole discretion, that any Stock
          Option is exercisable only in installments, the Committee may waive such
          installment exercise provisions at any time at or after grant, in whole or in
          part, based on such factors as the Committee shall determine in its sole
          discretion. 



         (d)       
          Method of Exercise. Subject to whatever installment exercise
          restrictions apply under Section 5(c), Stock Options may be exercised in whole
          or in part at any time during the option period, by giving written notice of
          exercise to the Company specifying the number of shares to be purchased. Such
          notice shall be accompanied by payment in full of the purchase price, either by
          check, note, or such other instrument as the Committee may accept. As determined
          by the Committee, in its sole discretion, at or (except in the case of an
          Incentive Stock Option) after grant, payment in full or in part may also be made
          in the form of shares of Common Stock already owned for at least six months by
          the optionee. In the case of a Non-Qualified Stock Option, the Committee, in its
          discretion, at or after grant, may permit optionholders, in lieu of the payment
          of withholding taxes due, but only to the extent the Company is required to
          withhold such taxes, to surrender shares subject to purchase without restriction
          under such Option or another award hereunder (in each case valued at the Fair
          Market Value of the Common Stock on the date the Option is exercised). No shares
          of Common Stock shall be issued until full payment therefor has been made. An
          optionee shall generally have the rights to dividends or other rights of a
          shareholder with respect to shares subject to the Option when the optionee has
          given written notice of exercise, has paid in full for such shares, and, if
          requested, has given the representation described in Section 15(a). 



         (e)       
          Transferability of Options. No Non-Qualified Stock Option shall
          be transferable by the optionee without the prior written consent of the
          Committee other than (i) transfers by the optionee to a member of his or her
          Immediate Family or a trust for the benefit of the optionee or a member of his
          or her Immediate Family, or (ii) transfers by will or by the laws of descent and
          distribution. No Incentive Stock Option shall be transferable by the optionee
          otherwise than by will or by the laws of descent and distribution and all
          Incentive Stock Options shall be exercisable, during the optionee’s
          lifetime, only by the optionee. Following any such transfer, any transferred
          Options shall continue to be subject to the same terms and conditions as in
          effect prior to transfer. 



         (f)       
          Bonus for Taxes. In the case of a Non-Qualified Stock Option or
          an optionee who elects to make a disqualifying disposition (as defined in
          Section 422(a)(1) of the Code) of Common Stock acquired pursuant to the exercise
          of an Incentive Stock Option, the Committee in its discretion may award at the
          time of grant or thereafter the right to receive upon exercise of such Stock
          Option a cash bonus calculated to pay part or all of the federal and state, if
          any, income tax incurred by the optionee upon such exercise. 



         (g)       
          Termination by Death. Subject to Section 5(k), if an
          optionee’s employment by the Company and any Subsidiary or (except in the
          case of an Incentive Stock Option) Affiliate terminates by reason of death, any
          Stock Option held by such optionee may thereafter be exercised, to the extent
          such option was exercisable at the time of death or (except in the case of an
          Incentive Stock Option) on such accelerated basis as the Committee may determine
          at or after grant (or except in the case of an Incentive Stock Option, as may be
          determined in accordance with procedures established by the Committee) by the
          legal representative of the estate or by the legatee of the optionee under the
          will of the optionee, for a period of one year (or such other period as the
          Committee may specify at or after grant) from the date of such death or until
          the expiration of the stated term of such Stock Option, whichever period is the
          shorter. 



         (h)       
          Termination by Reason of Disability. Subject to Section 5(k), if
          an optionee’s employment by the Company and any Subsidiary or (except in
          the case of an Incentive Stock Option) Affiliate terminates by reason of
          Disability, any Stock Option held by such optionee may thereafter be exercised
          by the optionee, to the extent it was exercisable at the time of termination or
          (except in the case of an Incentive Stock Option) on such accelerated basis as
          the Committee may determine at or after grant (or, except in the case of an
          Incentive Stock Option, as may be determined in accordance with procedures
          established by the Committee), for a period of (i) three years (or such other
          period as the Committee may specify at or after grant) from the date of such
          termination of employment or until the expiration of the stated term of such
          Stock Option, whichever period is the shorter, in the case of a Non-Qualified
          Stock Option and (ii) one year from the date of termination of employment or
          until the expiration of the stated term of such Stock Option, whichever period
          is shorter, in the case of an Incentive Stock Option; provided, however, that,
          if the optionee dies within the period specified in (i) above (or other such
          period as the Committee shall specify at or after grant), any unexercised
          Non-Qualified Stock Option held by such optionee shall thereafter be exercisable
          to the extent to which it was exercisable at the time of death for a period of
          twelve months from the date of such death or until the expiration of the stated
          term of such Stock Option, whichever period is shorter. In the event of
          termination of employment by reason of Disability, if an Incentive Stock Option
          is exercised after the expiration of the exercise period applicable to Incentive
          Stock Options, but before the expiration of any period that would apply if such
          Stock Option were a Non-Qualified Stock Option, such Stock Option will
          thereafter be treated as a Non-Qualified Stock Option. 



         (i)       
          Termination by Reason of Retirement. Subject to Section 5(k), if
          an optionee’s employment by the Company and any Subsidiary or (except in
          the case of an Incentive Stock Option) Affiliate terminates by reason of Normal
          or Early Retirement, any Stock Option held by such optionee may thereafter be
          exercised by the optionee, to the extent it was exercisable at the time of such
          Retirement or (except in the case of an Incentive Stock Option) on such
          accelerated basis as the Committee may determine at or after grant (or, except
          in the case of an Incentive Stock Option, as may be determined in accordance
          with procedures established by the Committee), for a period of (i) three years
          (or such other period as the Committee may specify at or after grant) from the
          date of such termination of employment or the expiration of the stated term of
          such Stock Option, whichever period is the shorter, in the case of a
          Non-Qualified Stock Option and (ii) ninety (90) days from the date of such
          termination of employment or the expiration of the stated term of such Stock
          Option, whichever period is the shorter, in the event of an Incentive Stock
          Option; provided however, that, if the optionee dies within the period specified
          in (i) above (or other such period as the Committee shall specify at or after
          grant), any unexercised Non-Qualified Stock Option held by such optionee shall
          thereafter be exercisable to the extent to which it was exercisable at the time
          of death for a period of twelve months from the date of such death or until the
          expiration of the stated term of such Stock Option, whichever period is shorter.
          In the event of termination of employment by reason of Retirement, if an
          Incentive Stock Option is exercised after the expiration of the exercise period
          applicable to Incentive Stock Options, but before the expiration of the period
          that would apply if such Stock Option were a Non-Qualified Stock Option, the
          option will thereafter be treated as a Non-Qualified Stock Option. 



         (j)       
          Other Termination. Subject to Section 5(k), unless
          otherwise determined by the Committee (or pursuant to procedures established by
          the Committee) at or (except in the case of an Incentive Stock Option) after
          grant, if an optionee’s employment by the Company and any Subsidiary or
          (except in the case of an Incentive Stock Option) Affiliate is involuntarily
          terminated for any reason other than death, Disability or Normal or Early
          Retirement, the Stock Option shall thereupon terminate, except that such Stock
          Option may be exercised, to the extent otherwise then exercisable, for the
          lesser of ninety (90) days or the balance of such Stock Option’s term if
          the involuntary termination is without Cause. For purposes of this Plan,
          “Cause” means termination by the Company, acting in good faith, by
          written notice to the Executive specifying the event relied upon for such
          termination, due to; (i) the Executive’s indictment or conviction of a
          felony, (ii) the Executive’s intentional perpetration of a fraud, theft,
          embezzlement or other acts of dishonesty, (iii) the Executive’s intentional
          breach of a trust or fiduciary duty which materially adversely affects the
          Company or its shareholders. If an optionee voluntarily terminates employment
          with the Company and any Subsidiary or (except in the case of an Incentive Stock
          Option) Affiliate (except for Disability, Normal or Early Retirement), the Stock
          Option shall thereupon terminate; provided, however, that the Committee at grant
          or (except in the case of an Incentive Stock Option) thereafter may extend the
          exercise period in this situation for the lesser of ninety (90) days or the
          balance of such Stock Option’s term. 



         (k)       
          Incentive Stock Options. Anything in the Plan to the
          contrary notwithstanding, no term of this Plan relating to Incentive Stock
          Options shall be interpreted, amended, or altered, nor shall any discretion or
          authority granted under the Plan be so exercised, so as to disqualify the Plan
          under Section 422 of the Code, or, without the consent of the optionee(s)
          affected, to disqualify any Incentive Stock Option under such Section 422. No
          Incentive Stock Option shall be granted to any participant under the Plan if
          such grant would cause the aggregate Fair Market Value (as of the date the
          Incentive Stock Option is granted) of the Common Stock with respect to which all
          Incentive Stock Options are exercisable for the first time by such participant
          during any calendar year (under all such plans of the Company and any
          Subsidiary) to exceed $100,000. To the extent permitted under Section 422 of the
          Code or the applicable regulations thereunder or any applicable Internal Revenue
          Service pronouncement: 



	  	  	  	(i)	  	if
(x) a participant’s employment is terminated by reason of death, Disability, or
Retirement and (y) the portion of any Incentive Stock Option that is otherwise exercisable
during the post-termination period specified under Section 5(g), (h) or (i), applied
without regard to the $100,000 limitation contained in Section 422(d) of the Code, is
greater than the portion of such Option that is immediately exercisable as an
“Incentive Stock Option” during such post-termination period under Section 422,
such excess shall be treated as a Non-Qualified Stock Option; and 






	  	  	  	(ii)	  	if
the exercise of an Incentive Stock Option is accelerated by reason of a Change in Control,
any portion of such Option that is not exercisable as an Incentive Stock Option by reason
of the $100,000 limitation contained in Section 422(d) of the Code shall be treated as a
Non-Qualified Stock Option. 






         (l)       
          Buyout Provisions. The Committee may at any time recommend
          to the Board of Directors that the Company offer to buy out (for a payment in
          cash, Common Stock, or another award under this plan) an Option previously
          granted, based on such terms and conditions as the Committee shall determine
          appropriate. 



         (m)       
          Settlement Provisions. If the option agreement so provides
          at grant or (except in the case of an Incentive Stock Option) is amended after
          grant and prior to exercise to so provide (with the optionee’s consent),
          the Committee may require that all or part of the shares to be issued with
          respect to the spread value of an exercised Option take the form of Restricted
          Stock, which shall be valued on the date of exercise on the basis of the Fair
          Market Value (as determined by the Committee) of such Restricted Stock. 



         (n)       
          Performance and Other Conditions. The Committee may
          condition the grant, vesting or exercise of any Option upon the attainment of
          specified performance goals or other factors as the Committee may determine, in
          its sole discretion. The Committee in its discretion may also provide in the
          option agreement, that any such conditional Option shall vest immediately prior
          to its expiration if the conditions to exercise have not theretofore been
          satisfied. 




SECTION 6. Stock
Appreciation Rights. 



         (a)       
          Grant and Exercise. Stock Appreciation Rights may be
          granted on such terms as shall be consistent with the Plan. A Stock Appreciation
          Right may be exercised by an optionee, subject to Section 6(b), in accordance
          with the procedures established by the Committee for such purpose. Upon such
          exercise, the optionee shall be entitled to receive an amount determined in the
          manner prescribed in Section 6(b). 



         (b)       
          Terms and Conditions. Stock Appreciation Rights shall be
          subject to such terms and conditions, not inconsistent with the provisions of
          the Plan, as shall be determined from time to time by the Committee, including
          the following: 



	  	  	  	(i)	  	SARs
shall be exercisable only at such time or times during such periods and for such number of
SARs as shall be determined by the Committee, provided that no SAR may be exercised more
than 10 years after the date of grant, and any SAR may be subject to earlier termination,
cancellation or expiration as provided in the Plan. 






	  	  	  	(ii)	  	Upon
the exercise of a SAR, an optionee shall be entitled to receive an amount in cash and/or
shares of Common Stock with a Fair Market Value equal in value to the excess of the Fair
Market Value of one share of Common Stock on the date of exercise over the Fair Market
Value per share of Common Stock on the date of grant, or such other price per share as the
Committee shall determine, multiplied by the number of SARs which shall have been
exercised, with the Committee having the right to determine the form of payment at or
after grant. 






	  	  	  	(iii)	  	Stock
Appreciation Rights shall be transferable only to the extent that Stock Options would be
transferable under Section 5(e) of the Plan. 





	  	  	  	(iv) 	  	The Committee may condition the grant, vesting or exercise of any Stock
               Appreciation Right upon the attainment of specified performance goals or other
               factors as the Committee may determine, in its sole discretion. 






SECTION 7. Restricted
Stock. 



         (a)       
          Administration. Shares of Restricted Stock may be issued
          either alone, in addition to, or in tandem with other awards granted under the
          Plan and/or cash awards made outside the Plan. The Committee shall determine the
          eligible persons to whom, and the time or times at which, grants of Restricted
          Stock will be made, the number of shares of Restricted Stock to be awarded to
          any person, the price (if any) to be paid by the recipient of Restricted Stock
          (subject to Section 7(b)), the time or times within which such awards may be
          subject to forfeiture, and the other terms, restrictions and conditions of the
          awards in addition to those set forth in Section 7(c). The Committee may
          condition the grant of Restricted Stock upon the attainment of specified
          performance goals or such other factors as the Committee may determine, in its
          sole discretion. The provisions of Restricted Stock awards need not be the same
          with respect to each recipient. 



         (b)       
          Awards and Certificates. The prospective recipient of a
          Restricted Stock award shall not have any rights with respect to such award,
          unless and until such recipient has executed an agreement evidencing the award
          and has delivered a fully executed copy thereof to the Company, and has
          otherwise complied with the applicable terms and conditions of such award. 



	  	  	  	(i)	  	The
purchase price for shares of Restricted Stock shall be established by the Committee and
may be zero. 






	  	  	  	(ii)	  	Awards
of Restricted Stock must be accepted within a period of 60 days (or such shorter period as
the Committee may specify at grant) after the award date, by executing a Restricted Stock
Award Agreement and paying whatever price (if any) is required under Section 7(b)(i). 






	  	  	  	(iii)	  	Each
participant receiving a Restricted Stock award shall be issued either a stock certificate
in respect of such shares of Restricted Stock or such shares may be held in an
uncertificated book account by the Company’s transfer agent. Shares shall be
registered in the name of such participant, and, in the case of a stock certificate, such
certificate shall bear an appropriate legend referring to the terms, conditions, and
restrictions applicable to such award. 





	  	  	  	(iv)	  	The
Committee shall require that the stock certificates or book entry accounts
               evidencing such shares be held in custody by the Company until the restrictions
               thereon shall have lapsed, and that, as a condition of any Restricted Stock
               award, the participant shall have delivered a stock power, endorsed in blank,
               relating to the shares of Common Stock covered by such award. 


               



         (c)       
Restrictions and Conditions. The shares of Restricted Stock
               awarded pursuant to this Section 7 shall be subject to the following
               restrictions and conditions: 



	  	  	  	(i)	  	In
accordance with the provisions of this Plan and the award agreement, during a period set
by the Committee commencing with the date of such award (the “Restriction
Period”), the participant shall not be permitted to sell, transfer, pledge, assign,
or otherwise encumber shares of Restricted Stock awarded under the Plan. Within these
limits, the Committee, in its sole discretion, may provide for the lapse of such
restrictions in installments and may accelerate or waive such restrictions, in whole or in
part, based on service, performance, or such other factors or criteria as the Committee
may determine in its sole discretion. 






	  	  	  	(ii)	  	Except
as provided in this paragraph (ii) and Section 7(c)(i), the participant shall have, with
respect to the shares of Restricted Stock, all of the rights of a shareholder of the
Company, including the right to vote the shares, and the right to receive any cash
dividends. The Committee, in its sole discretion, as determined at the time of award, may
permit or require the payment of cash dividends to be deferred and, if the Committee so
determines, reinvested, subject to Section 15(e), in additional Restricted Stock to the
extent shares are available under Section 3, or otherwise reinvested. Pursuant to Section
3 above, stock dividends issued with respect to Restricted Stock shall be treated as
additional shares of Restricted Stock that are subject to the same restrictions and other
terms and conditions that apply to the shares with respect to which such dividends are
issued. If the Committee so determines, the award agreement may also impose restrictions
on the right to vote and the right to receive dividends. 






	  	  	  	(iii)	  	Subject
to the applicable provisions of the award agreement and this Section 7, upon termination
of a participant’s employment with the Company and any Subsidiary or Affiliate for
any reason during the Restriction Period, all shares still subject to restriction will
vest, or be forfeited, in accordance with the terms and conditions established by the
Committee at or after grant. 





	  	  	  	(iv)	  	
               If and when the Restriction Period expires without a prior forfeiture of the
               Restricted Stock subject to such Restriction Period, certificates for an
               appropriate number of unrestricted shares shall be delivered to the participant
               promptly. 






    (d)      
               Minimum Value Provisions. In order to better ensure that
               award payments actually reflect the performance of the Company and service of
               the participant, the Committee may provide, in its sole discretion, for a tandem
               performance-based or other award designed to guarantee a minimum value, payable
               in cash or Common Stock to the recipient of a restricted stock award, subject to
               such performance, future service, deferral, and other terms and conditions as
               may be specified by the Committee. 




SECTION 8. Performance
Awards. 



        8.1
Grant. The Committee shall have sole and complete authority to
determine the Participants who shall receive a Performance Award, which shall consist of a
right that is (i) denominated in cash or Common Stock, Stock Option, SAR or Restricted
Stock, (ii) valued, as determined by the Committee, in accordance with, or subject to, the
achievement of such performance goals during such performance periods as the Committee
shall establish, and (iii) payable at such time and in such form as the Committee shall
determine. All Performance Awards shall be subject to the terms and provisions of Section
9 hereof. 



        8.2
Terms and Conditions. Subject to the terms of the Plan and any
applicable Award Agreement, the Committee shall determine the performance goals to be
achieved (as set forth in Section 9.2) during any performance period, the length of any
performance period, the amount of any Performance Award and the amount and kind of any
payment or transfer to be made pursuant to any Performance Award, and may amend specific
provisions of the Performance Award; provided, however, that such amendment may not
adversely affect existing Performance Awards made within a performance period commencing
prior to implementation of the amendment. 



        8.3
Payment of Performance Awards. Performance Awards may be paid in a
lump sum or in installments following the close of the performance period or, in
accordance with the procedures established by the Committee, on a deferred basis.
Termination of employment prior to the end of any performance period, other than for
reasons of death or Disability, will result in the forfeiture of the Performance Award for
that period, and no payments will be made with respect to that period, except that the
Committee at grant may provide that certain awards that are performance based, paid in
cash, and designed primarily for retention of key executives may be paid upon termination
by the Company other than for cause. A participant’s rights to any Performance Award
may not be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered or
disposed of in any manner, except by will or the laws of descent and distribution, and/or
except as the Committee may determine at or after grant. 




SECTION 9. Provisions
Applicable To Performance Awards. 



        9.1
General. Notwithstanding anything in the Plan to the contrary,
Performance Awards to Covered Officers shall be subject to the terms and provisions of
this Section 9. 



        9.2
Performance Measures. The Committee may grant Performance Awards to
Covered Officers based solely upon the attainment of performance targets related to one or
more performance goals selected by the Committee from among the goals specified below. For
the purposes of this Section 9, performance goals shall be limited to one or more of the
following Company, Subsidiary, operating unit or division financial performance measures: 



          		    (a)       
               earnings before interest, taxes, depreciation and/or amortization; 



               



          		    (b)       
               operating income or profit; 



               



          		    (c)       
               return on equity, assets, capital, capital employed, or investment; 



               



          		    (d)       
               after tax operating income; 



               



          		    (e)       
               net income; 



               



          		    (f)       
               earnings or book value per share of Common Stock; 



               



          		    (g)       
               cash flow(s); 



               



          		    (h)       
               total sales or revenues or sales or revenues per employee; 



               



          		    (i)       
               stock price or total shareholder return; 



               



          		    (j)       
               dividends; 



               



          		    (k)       
               strategic business objectives, consisting of one or more objectives based on
               meeting specified cost targets, business expansion goals, and goals relating to
               acquisitions or divestitures; or 



               



          		    (l)       
               any combination thereof. 



               



        Each
goal may be expressed on an absolute and/or relative basis, may be based on or otherwise
employ comparisons based on internal targets, the past performance of the Company or any
Subsidiary, operating unit or division of the Company and/or the past or current
performance of other companies, and in the case of earnings-based measures, may use or
employ comparisons relating to capital, shareholders’ equity and/or shares of Common
Stock outstanding, or to assets or net assets. 



        9.3
Maximums. With respect to any Covered Officer, the maximum annual
number of shares in respect of which all Performance Awards may be granted under Section 9
of this Plan is 500,000 shares and the maximum annual amount of any cash award
attributable to or earned in any performance period is $5,000,000. 



        9.4
Other Requirements. To the extent necessary to comply with Section
162(m), with respect to grants of Performance Awards, no later than 90 days following the
commencement of each performance period (or such other time as may be required or
permitted by Section 162(m) of the Code), the Committee shall, in writing, (1) select the
performance goal or goals applicable to the performance period, (2) establish the various
targets and bonus amounts which may be earned for such performance period, and (3) specify
the relationship between performance goals and targets and the amounts to be earned by
each Covered Officer for such performance period. Following the completion of each
performance period, the Committee shall certify in writing whether the applicable
performance targets have been achieved and the amounts, if any, payable to Covered
Officers for such performance period. In determining the amount earned by a Covered
Officer for a given performance period, subject to any applicable award agreement, the
Committee shall have the right to reduce (but not increase) the amount payable at a given
level of performance to take into account additional factors that the Committee may deem
relevant to the assessment of individual or corporate performance for the performance
period. 




SECTION 10. Other
Stock-Based Awards. 



         (a)       
          Administration. Other Stock-Based Awards, including, without
          limitation, performance shares, convertible preferred stock, convertible
          debentures, exchangeable securities and Common Stock awards or options valued by
          reference to earnings per share or Subsidiary performance, may be granted either
          alone, in addition to, or in tandem with Stock Options, Stock Appreciation
          Rights, or Restricted Stock granted under the Plan and cash awards made outside
          of the Plan; provided that no such Other Stock-Based Awards may be granted in
          tandem with Incentive Stock Options if that would cause such Stock Options not
          to qualify as Incentive Stock Options pursuant to Section 422 of the Code.
          Subject to the provisions of the Plan, the Committee shall have authority to
          determine the persons to whom and the time or times at which such awards shall
          be made, the number of shares of Common Stock to be awarded pursuant to such
          awards, and all other conditions of the awards. The Committee may also provide
          for the grant of Common Stock upon the completion of a specified performance
          period. The provisions of Other Stock-Based Awards need not be the same with
          respect to each recipient. 



         (b)       
          Terms and Conditions. Other Stock-Based Awards made pursuant to
          this Section 10 shall be subject to the following terms and conditions: 



	  	  	  	(i)	  	Subject
to the provisions of this Plan and the award agreement and unless otherwise determined by
the Committee at grant, the recipient of an award under this Section 10 shall be entitled
to receive, currently or on a deferred basis, interest or dividends or interest or
dividend equivalents with respect to the number of shares covered by the award, as
determined at the time of the award by the Committee, in its sole discretion, and the
Committee may provide that such amounts (if any) shall be deemed to have been reinvested
in additional shares of Common Stock or otherwise reinvested. 






	  	  	  	(ii)	  	Any
award under Section 10 and any shares of Common Stock covered by any such award shall vest
or be forfeited to the extent so provided in the award agreement, as determined by the
Committee in its sole discretion. 






	  	  	  	(iii)	  	In
the event of the participant’s Retirement, Disability, or death, or in cases of
special circumstances, the Committee may, in its sole discretion, waive in whole or in
part any or all of the remaining limitations imposed hereunder (if any) with respect to
any or all of an award under this Section 10. 





	  	  	  	(iv)	  	Each
award under this Section 10 shall be confirmed by, and subject to the terms
               of, an agreement or other instrument by the Company and the participant. 






SECTION 11. Awards to
Outside Directors. 



         (a)       
          Applicability and Administration. The provisions of this Section
          11 shall apply only to awards to Outside Directors in accordance with this
          Section 11. The Committee shall have no authority to determine the timing of or
          the terms or conditions of any award under this Section 11. Instead, the Board
          shall have the authority to interpret its provisions and supervise its
          administration, subject to the provisions provided herein. All decisions made by
          the Board under this Section 11 shall be made by the affirmative vote of a
          majority of its members then in office. 



         (b)       
          Automatic Awards. On the date of each Annual Meeting of
          Shareholders of the Company beginning with the year 2004, unless this Plan has
          been previously terminated, each person who is an Outside Director following
          such meeting will receive an automatic grant of 1,500 shares of Restricted Stock
          (“Outside Director Restricted Stock”). An Outside Director who is also
          the Chairman of the Board or a Vice Chairman of the Board at such time will
          instead receive an automatic grant of 3,000 shares of Outside Director
          Restricted Stock. Each Outside Director who first becomes a director after the
          2004 Annual Meeting shall receive, in addition, an automatic grant of a
          non-qualified stock option (“Outside Director Stock Option”) for
          15,000 shares of Common Stock. The exercise price of each Outside Director Stock
          Option granted pursuant to this Section 11(b) shall equal the Fair Market Value
          of the Common Stock on such option’s date of grant. No Outside Director
          Stock Option granted pursuant to this Section 11 shall qualify as an Incentive
          Stock Option. 



         (c)       
          Exercisability and Method of Exercise. Each Outside Director
          Stock Option and Outside Director Restricted Stock award shall vest 33 1/3% per
          year after the date of grant. Outside Director Stock Options may be exercised,
          in whole or in part, only by notice in writing to the Company (i) stating the
          number of shares as to which such option is to be exercised and the address to
          which the certificates for such shares are to be sent, accompanied by cash,
          certified check or bank draft payable to the order of the Company, in an amount
          equal to such option’s exercise price per share multiplied by the number of
          shares of the Common Stock as to which such option is then being exercised or
          (ii) instructing the Company to deliver the shares being purchased to a broker,
          subject to the broker’s delivery of cash to the Company equal to such
          option purchase price per share multiplied by the number of shares as to which
          such Outside Director Stock Option is then being exercised, or (iii) delivering
          shares of Common Stock already owned by the Outside Director as partial or full
          payment of the Outside Director Stock Option in accordance with the terms and
          restrictions set forth under Section 5(d). 



         (d)       
          Transferability of Options. Outside Director Restricted Stock and
          Outside Director Stock Options shall not be transferable without the prior
          written consent of the Board other than (i) transfers to a member of the Outside
          Director’s Immediate Family or a trust for the benefit of the Outside
          Director or a member of his or her Immediate Family, or (ii) transfers by will
          or by the laws of descent and distribution. 



         (e)       
          Restricted Stock and Option Agreement. Grantees of Outside
          Director Stock Options and Outside Director Restricted Stock shall enter into a
          stock option agreement in a form approved by the Board, which shall be subject
          to the terms and conditions of this Plan. Any agreement may contain such other
          terms, provisions and conditions not inconsistent with the Plan as may be
          determined by the Board. 



         (f)       
          Termination. The termination of Outside Director Stock Options or
          Outside Director Restricted Stock shall be governed by the provisions of
          Sections 5(g), 5(i) and 5(j) hereof as if Outside Directors were employees of
          the Company, except that any determination to accelerate the vesting of an
          Outside Director Stock Option or Outside Director Restricted Stock will be made
          by the Board and not by the Committee. 



         (g)       
          Certain Changes. Outside Director Stock Options or Outside
          Director Restricted Stock shall be subject to Section 12. The number of shares
          and the exercise price per share of each Outside Director Stock Option and
          Outside Director Restricted Stock shall be adjusted automatically in the same
          manner as the number of shares and the exercise price for Stock Options and
          Restricted Stock under Section 3 hereof at any time that Stock Options are
          adjusted as provided in Section 3. 



         (h)       
          Taxes. The Company may make such provision as it deems
          appropriate for the withholding of any taxes which the Company determines are
          required in connection with the grant or exercise of any Outside Director Stock
          Option and Outside Director Restricted Stock. 




SECTION 12. Change in
Control Provisions. 



         (a)       
          Impact of Event. The Committee may determine, at or after grant
          (subject to any right of approval expressly reserved by the Committee or the
          Board at the time of such determination), that in the event of a “Change in
          Control” as defined in Section 12(b), the following acceleration provisions
          shall apply: 



	  	  	  	(i)	  	any
Stock Appreciation Rights, any Stock Option or Outside Director Stock Option awarded under
the Plan not previously exercisable and vested shall become fully exercisable and vested. 






	  	  	  	(ii)	  	the
restrictions applicable to any Restricted Stock, Outside Director Restricted Stock,
Performance Awards and Other Stock-Based Awards, in each case to the extent not already
vested under the Plan, shall lapse and such shares and awards shall be deemed fully
vested. 






	  	  	  	(iii)	  	the
Board or the Committee may impose additional conditions on the acceleration or valuation
of any award in the award agreement. 






         (b)       
          Definition of Change in Control. For purposes of Section 12(a), a
          “Change in Control” means the happening of any of the following: 



	  	  	  	(i)	  	any
person or entity, including a “group” as defined in Section 13(d)(3) of the
Exchange Act, other than the Company or a wholly-owned subsidiary thereof or any employee
benefit plan of the Company or any of its Subsidiaries, becomes the beneficial owner of
the Company’s securities having 35% or more of the combined voting power of the then
outstanding securities of the Company that may be cast for the election of directors of
the Company (other than as a result of an issuance of securities initiated by the Company
in the ordinary course of business or other than transactions which are approved by a
majority of the Board); or 






	  	  	  	(ii)	  	as
the result of, or in connection with, any cash tender or exchange offer, merger or other
business combination, sales of assets or contested election, or any combination of the
foregoing transactions, less than a majority of the combined voting power of the then
outstanding securities of the Company or any successor corporation or entity entitled to
vote generally in the election of the directors of the Company or such other corporation
or entity after such transactions are held in the aggregate by the holders of the
Company’s securities entitled to vote generally in the election of directors of the
Company immediately prior to such transaction; or 






	  	  	  	(iii)	  	during
any period of two consecutive years, individuals who at the beginning of any such period
constitute the Board cease for any reason to constitute at least a majority thereof,
unless the election, or the nomination for election by the Company’s shareholders, of
each director of the Company first elected during such period was approved by a vote of at
least two-thirds of the directors of the Company then still in office who were directors
of the Company at the beginning of any such period. 







SECTION 13. Amendments
and Termination. 



        The
Board may at any time amend, alter or discontinue the Plan; provided, however, that,
without the approval of the Company’s shareholders, no amendment or alteration may be
made which would (a) except as a result of the provisions of Section 3(d) of the Plan,
increase the maximum number of shares that may be issued under the Plan or increase the
Section 162(m) Maximum, (b) change the provisions governing Incentive Stock Options except
as required or permitted under the provisions governing incentive stock options under the
Code, or (c) make any change for which applicable law or regulatory authority (including
the regulatory authority of the New York Stock Exchange or any other market or exchange on
which the Common Stock is traded) would require shareholder approval or for which
shareholder approval would be required to secure full deductibility of compensation
received under the Plan under Section 162(m) of the Code. No amendment, alteration, or
discontinuation shall be made which would impair the rights of an optionee or participant
under a Stock Option, Stock Appreciation Right, Restricted Stock, Performance Award, Other
Stock-Based Award, Outside Director Stock Option or Outside Director Restricted Stock
theretofore granted, without the participant’s consent. 



        The
Committee may amend the terms of any Stock Option or other award theretofore granted,
prospectively or retroactively, but, subject to Section 3 above, no such amendment shall
impair the rights of any holder without the holder’s consent. The Committee may also
substitute new Stock Options for previously granted Stock Options (on a one for one or
other basis); provided, however, the Committee may not, without the approval of the
Company’s shareholders, modify any outstanding Stock Option so as to specify a lower
exercise price or accept the surrender of an outstanding Stock Option and authorize the
granting of a new Stock Option in substitution therefor specifying a lower exercise price.
Solely for purposes of computing the Section 162(m) Maximum, if any Stock Options or other
awards previously granted to a participant are canceled and new Stock Options or other
awards having a lower exercise price or other more favorable terms for the participant are
substituted in their place, both the initial Stock Options or other awards and the
replacement Stock Options or other awards will be deemed to be outstanding (although the
canceled Stock Options or other awards will not be exercisable or deemed outstanding for
any other purposes). 




SECTION 14. Unfunded
Status of Plan. 



        The
Plan is intended to constitute an “unfunded” plan for incentive and deferred
compensation. With respect to any payments not yet made to a participant or optionee by
the Company, nothing contained herein shall give any such participant or optionee any
rights that are greater than those of a general creditor of the Company. In its sole
discretion, the Committee may authorize the creation of trusts or other arrangements to
meet the obligations created under the Plan to deliver Common Stock or payments in lieu of
or with respect to awards hereunder; provided, however, that, unless the Committee
otherwise determines with the consent of the affected participant, the existence of such
trusts or other arrangements is consistent with the “unfunded” status of the
Plan. 




SECTION 15. General
Provisions. 



         (a)       
          The Committee may require each person purchasing shares pursuant to a Stock
          Option or other award under the Plan to represent to and agree with the Company
          in writing that the optionee or participant is acquiring the shares without a
          view to distribution thereof. The certificates for such shares may include any
          legend which the Committee deems appropriate to reflect any restrictions on
          transfer. All certificates for shares of Common Stock or other securities
          delivered under the Plan shall be subject to such stock-transfer orders and
          other restrictions as the Committee may deem advisable under the rules,
          regulations, and other requirements of the Commission, any stock exchange upon
          which the Common Stock is then listed, and any applicable Federal or state
          securities law, and the Committee may cause a legend or legends to be put on any
          such certificates to make appropriate reference to such restrictions. 



         (b)       
          Nothing contained in this Plan shall prevent the Board from adopting other or
          additional compensation arrangements, subject to shareholder approval if such
          approval is required; and such arrangements may be either generally applicable
          or applicable only in specific cases. 



         (c)       
          The adoption of the Plan shall not confer upon any employee of the Company or
          any Subsidiary or Affiliate any right to continued employment with the Company
          or a Subsidiary or Affiliate, as the case may be, nor shall it interfere in any
          way with the right of the Company or a Subsidiary or Affiliate to terminate the
          employment of any of its employees at any time. 



         (d)       
          No later than the date as of which an amount first becomes includible in the
          gross income of the participant for Federal income tax purposes with respect to
          any award under the Plan, the participant shall pay to the Company, or make
          arrangements satisfactory to the Committee regarding the payment of, any
          Federal, state, or local taxes of any kind required by law to be withheld with
          respect to such amount. The Committee may require withholding obligations to be
          settled with Common Stock, including Common Stock that is part of the award that
          gives rise to the withholding requirement. The obligations of the Company under
          the Plan shall be conditional on such payment or arrangements and the Company
          and its Subsidiaries or Affiliates shall, to the extent permitted by law, have
          the right to deduct any such taxes from any payment of any kind otherwise due to
          the participant. 



         (e)       
          The actual or deemed reinvestment of dividends or dividend equivalents in
          additional Restricted Stock (or other types of Plan awards) at the time of any
          dividend payment shall only be permissible if sufficient shares of Common Stock
          are available under Section 3 for such reinvestment (taking into account then
          outstanding Stock Options and other Plan awards). 



         (f)       
          The Plan and all awards made and actions taken thereunder shall be governed by
          and construed in accordance with the laws of the State of Delaware. 



         (g)       
          The members of the Committee and the Board shall not be liable to any employee
          or other person with respect to any determination made hereunder in a manner
          that is not inconsistent with their legal obligations as members of the Board.
          In addition to such other rights of indemnification as they may have as
          directors or as members of the Committee, the members of the Committee shall be
          indemnified by the Company against the reasonable expenses, including
          attorneys’ fees actually and necessarily incurred in connection with the
          defense of any action, suit or proceeding, or in connection with any appeal
          therein, to which they or any of them may be a party by reason of any action
          taken or failure to act under or in connection with the Plan or any option
          granted thereunder, and against all amounts paid by them in settlement thereof
          (provided such settlement is approved by independent legal counsel selected by
          the Company) or paid by them in satisfaction of a judgment in any such action,
          suit or proceeding, except in relation to matters as to which it shall be
          adjudged in such action, suit or proceeding that such Committee member is liable
          for negligence or misconduct in the performance of his duties; provided that
          within 60 days after institution of any such action, suit or proceeding, the
          Committee member shall in writing offer the Company the opportunity, at its own
          expense, to handle and defend the same. 



         (h)       
          In addition to any other restrictions on transfer that may be applicable under
          the terms of this Plan or the applicable award agreement, no Stock Option, Stock
          Appreciation Right, Restricted Stock award, Performance Award, Other Stock-Based
          Award, Outside Director Stock Option, Outside Director Restricted Stock or other
          right issued under this Plan is transferable by the participant without the
          prior written consent of the Committee, or, in the case of an Outside Director,
          the Board, other than (i) transfers by an optionee to a member of his or her
          Immediate Family or a trust for the benefit of the optionee or a member of his
          or her Immediate Family or (ii) transfers by will or by the laws of descent and
          distribution. The designation of a beneficiary will not constitute a transfer. 



         (i)       
          The Committee may, at or after grant, condition the receipt of any payment in
          respect of any award or the transfer of any shares subject to an award on the
          satisfaction of a six-month holding period, if such holding period is required
          for compliance with Section 16 under the Exchange Act. 




SECTION 16. Effective
Date of Plan. 



        The
Plan shall be effective upon approval by the Board and by the affirmative vote of a
majority of the shares of the Company’s Common Stock entitled to vote. 




SECTION 17. Term of Plan. 



        No
Stock Option, Stock Appreciation Right, Restricted Stock award, Performance Award, Other
Stock-Based Award, Outside Director Stock Option or Outside Director Restricted Stock
award shall be granted pursuant to the Plan on or after the tenth anniversary of the
Effective Date of the Plan, but awards granted prior to such tenth anniversary may extend
or be extended beyond that date.