EXHIBIT 10.30


 


SPX CORPORATION

1997 NON-EMPLOYEE DIRECTORS’

COMPENSATION
PLAN


 


Table of Contents


 


	
  SECTION 1.

  	
  ESTABLISHMENT, PURPOSES AND RESTATEMENT DATE OF PLAN

  	
  1

  
	
  1.1

  	
  Establishment

  	
  1

  
	
  1.2

  	
  Purposes

  	
  1

  
	
  1.3

  	
  Restatement Date

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  SECTION 3.

  	
  ELIGIBILITY

  	
  4

  
	
   

  	
   

  	
   

  
	
  SECTION 4.

  	
  SHARES OF COMMON STOCK AVAILABLE

  	
  5

  
	
  4.1

  	
  Number

  	
  5

  
	
  4.2

  	
  Unused Stock

  	
  5

  
	
  4.3

  	
  Adjustment in Capitalization

  	
  5

  
	
   

  	
   

  	
   

  
	
  SECTION 5.

  	
  DEFERRED ACCOUNT

  	
  6

  
	
  5.1

  	
  Deferred Account

  	
  6

  
	
  5.2

  	
  Conversion of Retirement Plan Benefit

  	
  6

  
	
  5.3

  	
  Investment of Account

  	
  6

  
	
  5.4

  	
  Dividends

  	
  6

  
	
  5.5

  	
  Nontransferability

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION 6.

  	
  DISTRIBUTION OF ACCOUNT

  	
  8

  
	
  6.1

  	
  Cessation of Directorship; Attainment of Age 70

  	
  8

  
	
  6.2

  	
  Death

  	
  8

  
	
   

  	
   

  	
   

  
	
  SECTION 7.

  	
  DIRECTOR OPTIONS

  	
  9

  
	
  7.1

  	
  Grant and Eligibility

  	
  9

  
	
  7.2

  	
  Director Option Agreement

  	
  9

  
	
  7.3

  	
  Tax Status

  	
  9

  
	
  7.4

  	
  Director Option Price and Payment

  	
  9

  
	
  7.5

  	
  Vesting and Duration of Director Options

  	
  9

  
	
   

  	
   

  	
   

  
	
  SECTION 8.

  	
  CASH PAYMENT

  	
  10

  
	
  8.1

  	
  EVA Amounts

  	
  10

  
	
  8.2

  	
  Director Fee Amounts

  	
  10

  
	
   

  	
   

  	
   

  
	
  SECTION 9.

  	
  EFFECT OF CHANGE IN CONTROL

  	
  12

  



 


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  9.1

  	
  Change in Control

  	
  12

  
	
  9.1A

  	
  409A Change in Control

  	
  13

  
	
  9.2

  	
  Effect of Change in Control

  	
  14

  
	
   

  	
   

  	
   

  
	
  SECTION 10.

  	
  AMENDMENT AND TERMINATION

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION 11.

  	
  MISCELLANEOUS

  	
  16

  
	
  11.1

  	
  Rights of Directors

  	
  16

  
	
  11.2

  	
  Funding Not Required

  	
  16

  
	
  11.3

  	
  Indemnification

  	
  16

  
	
  11.4

  	
  Requirements of Law

  	
  16

  
	
  11.5

  	
  Governing Law

  	
  17

  
	
  11.6

  	
  Administration

  	
  17

  
	
  11.7

  	
  Tax Withholding

  	
  17

  
	
  11.8

  	
  Construction

  	
  17

  



 


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SECTION 1.  ESTABLISHMENT, PURPOSES AND RESTATEMENT DATE
OF PLAN


 


1.1                                 Establishment.  SPX Corporation, a Delaware corporation,
established the “SPX CORPORATION 1997 NON-EMPLOYEE DIRECTORS’ COMPENSATION PLAN”
(the “Plan”) effective as of February 26, 1997.


 


1.2                                 Purposes.  In conjunction with the SPX Corporation 2005
Non-Employee Directors’ Compensation Plan, the purpose of the Plan is to
advance the interests of the Company and its shareholders by providing a
compensation program for Non-Employee Directors.  By thus compensating Non-Employee Directors,
the Company seeks to attract, retain, compensate and motivate those highly
competent individuals whose judgment, initiative, leadership, and efforts are
important to the continued success of the Company.


 


1.3                                 Restatement
Date.  The Plan is hereby amended and
restated effective as of December 17, 2008.


 













 


SECTION 2.  DEFINITIONS


 


As used herein, the following terms shall have the
meanings hereinafter set forth:


 


(a)                                  “Annual Meeting” means the
annual meeting of the shareholders of the Company.


 


(b)                                 “Cash Payment” means the (i) cash
amount payable to a Non-Employee Director pursuant to Section 8 below and (ii) effective
for calendar years after December 31, 2008, any lead director fee payments
that a Non-Employee Director may otherwise be entitled to.


 


(c)                                  “Board” means the Board of
Directors of the Company.


 


(d)                                 “Code” means the Internal
Revenue Code of 1986, as amended. 
References to any Section of the Code shall include any successor
provision thereto and applicable regulations or guidance thereunder.


 


(e)                                  “Common Stock” or “Share” means
the common stock, par value $10.00 per share, of the Company or such other
class of shares or other securities as may be applicable pursuant to the
provisions of subsection 4.3.


 


(f)                                    “Company” means SPX Corporation,
a Delaware corporation.


 


(g)                                 “Deferred Mutual Fund Unit”
means the equivalent of one share of a respective mutual fund or other security
designated by the Board for purposes of measuring the value of an Account
established pursuant to Section 5 of the Plan.


 


(h)                                 “Director Options” means options
granted hereunder to Non-Employee Directors.


 


(i)                                     “Dividend Date” means with
respect to the mutual fund or other securities underlying a Deferred Mutual
Fund Unit, the payment date of any dividend declared on such mutual fund or
securities.


 


(j)                                     “Establishment Date” means February 26,
1997, the date on which the Plan was approved by the Board, and which Plan was
approved by the Company’s shareholders at the 1997 Annual Meeting.


 


(k)                                  “EVA Plan” means the SPX Corporation
EVA Incentive Compensation Plan.


 


(l)                                     “EVA Plan Bonus Multiple” means,
as to any calendar year, the aggregate amount of the Declared Bonuses (as such
term is defined in the EVA Plan) for the Company’s chief executive officer with
respect to the calendar year, divided by the Target Bonus (as such term is
defined in the EVA Plan) amount of the chief executive officer for the calendar
year.


 


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(m)                               “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 
References to any Section of the Exchange Act shall include any
successor provision thereto and applicable regulations or guidance thereunder.


 


(n)                                 “Fair Market Value” means, as to
any date, the closing price of a share of Common Stock as reported in the “NYSE-Composite
Transactions” section of the Midwest Edition of The Wall Street Journal for
such date or, if no prices are quoted for such date, on the next preceding date
on which such prices of Common Stock are so quoted.


 


(o)                                 “Grant Date” means, with respect
to each individual who is a Non-Employee Director on or after the Establishment
Date, each of the Establishment Date, January 15, 1998, and January 15, 1999,
and such other dates thereafter as the Board may establish.  With respect to any individual who first
becomes a Non-Employee Director after the Establishment Date and prior to January 15,
1999, the date the individual first becomes a Non-Employee Director shall also
be a Grant Date.


 


(p)                                 “Non-Employee Director” means
any person who is a member of the Board and who is not, as of the date of an
award under the Plan, an employee of the Company or any of its subsidiaries.


 


(q)                                 “Retirement Plan” means the SPX
Corporation Directors’ Retirement Plan.


 


(r)                                    “Retirement Plan Conversion Date”
means the date of the 1997 Annual Meeting.


 


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SECTION 3.  ELIGIBILITY


 


Each Non-Employee Director as of the Establishment
Date and each person who becomes a Non-Employee Director after the
Establishment Date shall be eligible to participate in the Plan.


 


4













 


SECTION 4.  SHARES OF COMMON STOCK AVAILABLE


 


4.1                                 Number.  The total number of shares of Common Stock of
the Company subject to issuance under the Plan, and subject to adjustment upon
occurrence of any of the events indicated in subsection 4.3, may not exceed
75,000. The Shares to be delivered under the Plan may consist, in whole or in
part, of authorized but unissued stock or treasury stock not reserved for any
other purpose.


 


4.2                                 Unused
Stock.  In the event any shares of
Common Stock that are subject to a Director Option which, for any reason,
expires, terminates or is canceled as to such shares, such shares again shall
become available for issuance under the Plan.


 


4.3                                 Adjustment
in Capitalization.  In the event of
any change in the outstanding shares of Common Stock that occurs after
ratification of the Plan by the shareholders of the Company by reason of a
Common Stock dividend or split, recapitalization, merger, consolidation,
combination, exchange of shares, or other similar corporate change, the
aggregate number of shares of Common Stock subject to Director Options to be
granted or outstanding pursuant to Section 7 hereof, and/or the stated
option price, shall be appropriately adjusted by the Board, whose determination
shall be conclusive; provided, however, that fractional shares shall be rounded
to the nearest whole share.


 


5













 


SECTION 5.  DEFERRED ACCOUNT


 


5.1                                 Deferred
Account.  The Company shall establish
a deferred account (an “Account”) for each current Non-Employee Director whose
benefit under the Retirement Plan is converted pursuant to subsection 5.2 below
and for any other Non-Employee Director who makes an election to defer Cash
Payments in accordance with Section 8 hereof.  The Account may be further sub-divided by the
Company in order to reflect Account amounts that are exempt from Code Section 409A
and Account amounts that are subject to Code Section 409A.  Distributions equal to the balance credited
to the Non-Employee Director’s Account shall be made in cash in accordance with
Sections 6 or 9 hereof.  The balance of
the Account is dependent on the value per share of the mutual fund shares or
other securities underlying the Deferred Mutual Fund Units on the date of
distribution, and is therefore subject to market fluctuations in value until
such distribution.


 


5.2                                 Conversion
of Retirement Plan Benefit.  On the
Retirement Plan Conversion Date, the accrued benefit of each current
Non-Employee Director under the Retirement Plan shall be converted into
Deferred Mutual Fund Units in an amount equal to 115% of the present value of
such Non-Employee Director’s accrued benefit under the Retirement Plan, valued
as of January 1, 1997.  Prior to the
Retirement Plan Conversion Date, each Non-Employee Director shall make an
election with respect to the conversion of such Non-Employee Director’s vested
benefit among the respective Deferred Mutual Fund Units.  Such conversion shall be effective as of the
Retirement Plan Conversion Date and will take place based on the value of the
mutual fund shares or other securities underlying such Deferred Mutual Fund
Units on such date.


 


5.3                                 Investment
of Account.  A Non-Employee Director
may elect to change the mix of the Deferred Mutual Fund Units credited to the
Non-Employee Director’s Account in accordance with the administrative
procedures and rules set by the Board or Company from time to time.  Such conversion shall be effective as of the
applicable date determined according to such procedures and will take place
based on the value of the mutual fund shares or other securities underlying the
Deferred Mutual Fund Units on such date.


 


5.4                                 Dividends.  At any time a balance of Deferred Mutual Fund
Units is maintained in an Account, there shall be credited to the Account
additional Deferred Mutual Fund Units on each Dividend Date.  Such additional number of Deferred Mutual
Fund Units shall be determined by reference to the number of mutual fund shares
or other securities that would be issued by the mutual fund or the issuer of
the other securities with respect to the reinvestment of such dividend.  In the absence of such reinvestment, the number
of such additional Deferred Mutual Fund Units shall be determined by (i) multiplying
the total number of Deferred Mutual Fund Units (including fractional Deferred
Mutual Fund Units) credited to the Account immediately prior to the Dividend
Date by the amount of the dividend per share of the underlying mutual fund or
other security and (ii) dividing the product by the Fair Market Value per
share as of such Dividend 


 


6













 


Date. 
Additional Deferred Mutual Fund Units shall be similarly credited on each
Dividend Date on which a balance of Deferred Mutual Fund Units is maintained in
the Account.


 


5.5                                 Nontransferability.  No Deferred Mutual Fund Units shall be
pledged, hypothecated or transferred by a Non-Employee Director other than by
will or the laws of descent and distribution. 
No interest of any person or entity in, or right to receive a benefit
under, the Plan shall be subject in any manner to sale, transfer, assignment,
pledge, attachment, garnishment, or other alienation or encumbrance of any kind;
nor may such interest or right to receive a benefit be taken, either
voluntarily or involuntarily, for the satisfaction of the debts of, or other
obligations or claims against, such person or entity, including claims for
alimony, support, separate maintenance and claims in bankruptcy proceedings.


 


7













 


SECTION 6.  DISTRIBUTION OF ACCOUNT


 


6.1                                 Cessation
of Directorship; Attainment of Age 70. 
Upon the first to occur of the date a Non-Employee Director attains age
70 or the date the Non-Employee Director ceases to be a director of the Company
for any reason other than death, the balance of such Non-Employee Director’s
Account that is exempt from Code Section 409A shall be paid in a lump sum
to the Non-Employee Director within ninety (90) days after such date, but in no
event later than the December 31st of the calendar year in which such date
occurs.  Upon the first to occur of the
date a Non-Employee Director attains age 70 or the date the Non-Employee
Director ceases to be a director of the Company for any reason other than
death, the balance of such Non-Employee Director’s Account that is subject to
Code Section 409A shall be paid in a lump sum to the Non-Employee Director
on or as soon as administratively possible after such date, but no later than
sixty (60) days after such date.


 


6.2                                 Death.  In the event of the death of a Non-Employee
Director while a director of the Company, the entire value of the Deferred
Mutual Fund Units credited to his or her Account, within sixty (60) days of the
date of the Non-Employee Director’s death, shall be paid in cash in a lump sum
to such surviving beneficiary or beneficiaries as such Non-Employee Director
may have designated by notice in writing to the Company or by will, or, if no
beneficiaries are so designated, the legal representative of such Non-Employee
Director’s estate.


 


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SECTION 7.  DIRECTOR OPTIONS


 


7.1                                 Grant
and Eligibility.  On each Grant Date,
Director Options for the purchase of 1,500 shares of Common Stock will be
granted to each individual who is a Non-Employee Director.


 


7.2                                 Director
Option Agreement.  Each Director
Option shall be evidenced by a Director Option Agreement that shall specify the
option price, the duration of the option, the number of shares of Common Stock
to which the option pertains, and such other provisions as the Board shall
determine.


 


7.3                                 Tax
Status.  Director Options shall be
options in the form of nonqualified stock options which are intended not to
fall under the provisions of Code Section 422.


 


7.4                                 Director
Option Price and Payment.  The option
price of each share of Common Stock subject to a Director Option shall be 100%
of the Fair Market Value on the Grant Date. 
Director Options shall be exercised by the delivery of a written notice
to the Company setting forth the number of shares of Common Stock with respect
to which the option is to be exercised, accompanied by full payment for the
Shares.  Upon exercise of any Director
Option, the option price shall be payable to the Company in full either (a) in
cash or its equivalent, or (b) by tendering shares of previously acquired
Common Stock having a Fair Market Value at the time of exercise equal to the
total option price, or (c) by a combination of (a) and (b).


 


7.5                                 Vesting
and Duration of Director Options. 
Each Director Option shall vest and become exercisable in full upon the
first to occur of (a) the expiration of six months after the Grant Date,
unless prior thereto the Non-Employee Director has ceased to be a director for
any reason other than death or disability, (b) the death or disability of
the Non-Employee Director, or (c) a Change in Control (as provided in Section 9
hereof).  Once vested, Director Options
shall expire upon the first to occur of the date which is (i) three years
following termination of the director’s Board membership for any reason other
than death, or (ii) one year following the date of the Non-Employee
Director’s death; provided, however, in no event may any Director Option be
exercised beyond the tenth anniversary of its Grant Date.


 


9













 


SECTION 8.  CASH PAYMENT


 


8.1                                 EVA
Amounts.  With respect to service
during each calendar year (or portion thereof) on and after the Establishment
Date, but before January 1, 2005, each Non-Employee Director shall be
entitled to receive cash payments at an annual rate of $25,500 plus an amount
equal to $5,000 multiplied by the EVA Plan Bonus Multiple for the calendar
year.  The amount payable to the
Non-Employee Director with respect to the EVA Plan Bonus Multiple shall be
determined and paid in the same manner as bonuses are determined and paid under
the bonus reserve provisions of the EVA Plan, provided, however, that in
applying such provisions all personal performance criteria shall be deemed to
be fully satisfied and full payment of any amounts credited to the bonus
reserve shall be made at the time the Non-Employee Director ceases to be a
director of the Company for any reason. 
Payment of all or a portion of the Cash Payment provided hereunder
otherwise payable to a Non-Employee Director may be deferred as specified by a
timely election filed by the Non-Employee Director with the Company; provided,
however, that such deferral election must apply to all of the Cash Payment
provided hereunder to which a Non-Employee Director may be entitled with
respect to a calendar year, to all of such Cash Payment provided hereunder
other than the portion determined by reference to the EVA Plan, or to all of
the portion determined by reference to the EVA Plan.  An election will be considered timely with
respect to 1997 if received prior to the date of the 1997 Annual Meeting and
for each calendar year thereafter if received prior to the first day of such
calendar year.  The amount of Cash
Payment provided hereunder so deferred shall be credited to an Account established
pursuant to Section 5 hereof as Deferred Mutual Fund Units as provided in
the Non-Employee Director’s deferral election based on the value of the mutual
fund shares or other security underlying such Deferred Mutual Fund Units on the
date the deferred Cash Payment provided hereunder would otherwise have been
made.  Such amounts shall thereafter be
subject to the provisions of Sections 5 and 6 hereof relating to the conversion
of Deferred Mutual Fund Units, dividends thereon, and distribution thereof.  Nothing herein shall be construed to prevent
the amount payable for 2004 to the Non-Employee Director with respect to the
EVA Plan Bonus Multiple from being determined and paid in 2005.  Notwithstanding the foregoing, effective as
of June 23, 2005, the EVA bonus bank balances of the Non-Employee
Directors provided hereunder shall be converted into performance shares under
the SPX Corporation 2005 Non-Employee Directors’ Compensation Plan for such
Non-Employee Directors, and such EVA bonus bank balances shall be eliminated as
of such date.


 


8.2                                 Director
Fee Amounts.  With respect to service
during each calendar year (or portion thereof) after December 31, 2004,
but before January 1, 2007, each Non-Employee Director shall be entitled
to receive a flat fee retainer payment at an annual rate of $60,000 (prorated
for partial years of Board membership).  With respect to service during
each calendar year (or portion thereof) after December 31, 2006, each
Non-Employee Director shall be entitled to receive a flat fee retainer payment
at an annual rate of $75,000 (prorated for partial years of Board
membership).  Payment of the Cash Payment described under this Plan
otherwise payable to a Non-Employee Director may be deferred as specified by a
timely election filed by the Non-Employee Director with the Company; provided,
however, no deferral will be permitted with respect to any Cash Payment 


 


10













 


that is made in a calendar year in which the
Non-Employee Director is age 70 or older at any point during such year.  Such deferral election shall be made by December 31st
of the calendar year preceding the calendar year in which such Cash Payment
would otherwise be made, and any such deferral election shall be irrevocable
after such December 31st.  The
amount of Cash Payment so deferred shall be credited to an Account established
pursuant to Section 5 hereof as Deferred Mutual Fund Units as provided in
the Non-Employee Director’s deferral election based on the value of the mutual
fund shares or other security underlying such Deferred Mutual Fund Units on the
date of the deferred Cash Payment would otherwise have been made.  Such
amounts shall thereafter be subject to the provisions of Sections 5 and 6
hereof relating to Deferred Mutual Fund Units, dividends thereon, and
distribution thereof.


 


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SECTION 9.  EFFECT OF CHANGE IN CONTROL


 


9.1                                 Change
in Control.  For purposes of this
Plan, a “Change in Control” shall be deemed to have occurred if:


 


(a)                                  Any person, entity or group
(within the meaning of Sections 13(d) and 14(d) of the Exchange Act),
excluding, for this purpose, the Company or any subsidiaries, any employee
benefit plan of the Company or its subsidiaries which acquires beneficial
ownership of voting securities of the Company, is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly of securities of the Company representing fifteen percent (15%) or
more of the combined voting power of the Company’s then outstanding securities;
provided, however, that no Change in Control shall be deemed to have occurred
as the result of an acquisition of securities of the Company by the Company
which, by reducing the number of voting securities outstanding, increases the
direct or indirect beneficial ownership interest of any person to fifteen
percent (15%) or more of the combined voting power of the Company’s then
outstanding securities, but any subsequent increase in the direct or indirect
beneficial ownership interest of such a person in the Company shall be deemed a
Change in Control; and provided further that if the Board of Directors of the
Company determines in good faith that a person who has become the beneficial
owner directly or indirectly of securities of the Company representing fifteen
percent (15%) or more of the combined voting power of the Company’s then
outstanding securities has inadvertently reached that level of ownership
interest, and if such person divests as promptly as practicable a sufficient
amount of securities of the Company so that the person no longer has a direct
or indirect beneficial ownership interest in fifteen percent (15%) or more of
the combined voting power of the Company’s then outstanding securities, then no
Change in Control shall be deemed to have occurred; or


 


(b)                                 During any period of two (2) consecutive
years (not including any period prior to the Establishment Date), individuals
who at the beginning of such two-year period constitute the Board and any new
director (except for a director designated by a person who has entered into an
agreement to effect a transaction described elsewhere in this subsection 9.1)
whose election by the Board or nomination for election by the Company’s
shareholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors at the beginning of
the period or whose election or nomination of election was previously so
approved, cease for any reason to constitute at least a majority thereof; or


 


(c)                                  The shareholders of the Company
approve a plan of complete liquidation of the Company, an agreement for the
sale or other disposition by the Company of all or substantially all of the
Company’s assets, or a plan of reorganization, merger or consolidation of the
Company with any other corporation, except for a reorganization, merger or
consolidation in which the security owners of the Company immediately prior to
the reorganization, merger or consolidation continue to own at least
eighty-five percent (85%) of the voting securities of the new (or continuing)
entity immediately after such reorganization, merger or consolidation.


 


12













 


9.1A                       409A
Change in Control.  For purposes of
this Plan, a “409A Change in Control” means the occurrence of any of the
following events:


 


(a)                                  any person or Group acquires
ownership of the Company’s stock that, together with stock held by such person
or Group, constitutes more than 50% of the total fair market value or total
voting power of the Company’s stock, (including an increase in the percentage
of stock owned by any person or Group as a result of a transaction in which the
Company acquires its stock in exchange for property, provided that the
acquisition of additional stock by any person or Group deemed to own more than
50% of the total fair market value or total voting power of the Company’s stock
on January 1, 2005, shall not constitute a 409A Change in Control); or


 


(b)                                 any person or Group acquires (or
has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or Group) ownership of Company stock possessing
30%  or more of the total voting power of
Company stock; or


 


(c)                                  a majority of the members of the
Board is replaced during any 12-month period by directors whose appointment or
election is not endorsed by a majority of the members of the Board prior to the
date of the appointment or election; or


 


(d)                                 any person or Group acquires (or
has acquired during the 12-month period ending on the date of the most recent
acquisition by such person or Group) assets from the Company that have a total
Gross Fair Market Value equal to 40% or more of the total Gross Fair Market
Value of all Company assets immediately prior to such acquisition or
acquisitions, provided that there is no 409A Change in Control when the Company’s
assets are transferred to:


 


(1)                                  a shareholder of the
Company (immediately before the asset transfer) in exchange for or with respect
to Company stock;


 


(2)                                  an entity, 50% or
more of the total value or voting power of which is owned, directly or
indirectly, by the Company;


 


(3)                                  a person or Group
that owns, directly or indirectly, 50% or more of the total value or voting
power of all outstanding Company stock; or


 


(4)                                  an entity, at least
50% of the total value or voting power of which is owned, directly or
indirectly, by a person described in paragraph (3).


 


For purposes of the above sub-paragraph (d), a person’s
status is determined immediately after the transfer of the assets.  For example, a transfer to a corporation in
which the Company has no ownership interest before the transaction, but which
is a majority-owned subsidiary of the Company after the transaction is not a
409A Change in Control.


 


For purposes of this Section 9.1A, “Gross Fair
Market Value” means the value of assets determined without regard to any
liabilities associated with such assets.


 


13













 


For purposes of this Section 9.1A, “Group” means
persons acting together for the purpose of acquiring Company stock and includes
owners of a corporation that enters into a merger, consolidation, purchase or
acquisition of stock, or similar business transaction with the Company.  If a person owns stock in both the Company
and another corporation that enter into a merger, consolidation purchase or
acquisition of stock, or similar transaction, such person is considered to be
part of a Group only with respect to ownership prior to the merger or other
transaction giving rise to the change and not with respect to the ownership
interest in the other corporation. 
Persons will not be considered to be acting as a Group solely because
they purchase assets of the same corporation at the same time, or as a result
of the same public offering.


 


9.2                                 Effect
of Change in Control. 
Notwithstanding any other provision of the Plan, if a Change in Control
occurs, then:


 


(a)                                  the balance of any Account
maintained pursuant to Section 5 that is exempt from coverage under Code Section 409A
and any bonus reserve amounts not yet paid pursuant to subsection 8.1 hereof
shall be paid in cash in a lump sum as promptly as practicable, but not more
than thirty (30) days following the date of the Change in Control; and


 


(b)                                 the balance of any Account
maintained pursuant to Section 5 that is subject to Code Section 409A
coverage shall be paid in cash in a lump sum on or as promptly as practicable
after the date of a 409A Change in Control (which 409A Change in Control may
occur concurrently with or after a Change in Control), but no later than thirty
(30) days following the date of a 409A Change in Control; and


 


(c)                                  each Director Option shall
become fully vested and exercisable as of the date of the Change in Control.


 


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SECTION 10.  AMENDMENT AND
TERMINATION


 


The Board, or any committee to the extent authorized
by the Board, may make such modifications to the Plan as it shall deem
advisable, without further approval of the shareholders of the Company, except
the Share limitation set forth in Section 4 cannot be increased without
approval of the shareholders.  The Plan
shall continue in effect without limit unless and until the Board otherwise
determines.


 


To the extent any provision of the Plan or action by
the Board or Company would subject any Non-Employee Director to liability for
interest or additional taxes under Code Section 409A, or make any Account
amounts deferred prior to January 1, 2005 (including any gains or losses
on such amounts) subject to Code Section 409A, it will be deemed null and
void, to the extent permitted by law and deemed advisable by the Board.  It is intended that the Plan will comply with
Code Section 409A to the extent applicable, and that Account amounts
deferred prior to January 1, 2005 (including any gains or losses on such
amounts) be exempt from Code Section 409A coverage, and the Plan shall be
interpreted and construed on a basis consistent with such intent.  The Plan may be amended in any respect deemed
necessary (including retroactively) by the Board in order to preserve
compliance with Code Section 409A and to maintain Code Section 409A
exemption for the Account amounts deferred prior to January 1, 2005
(including any gains or losses on such amounts).  For purposes of this Plan with respect to
Account amounts subject to Code Section 409A, a Non-Employee Director
shall have ceased to be a director of the Company upon a “separation from
service” as defined in Code Section 409A. 
The preceding shall not be construed as a guarantee of any particular
tax effect for Plan benefits.


 


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SECTION 11.  MISCELLANEOUS


 


11.1                           Rights
of Directors.  Neither the Plan nor
any action taken hereunder shall be construed as giving any Non-Employee
Director any right to continue to serve as a Non-Employee Director of the
Company or otherwise to be retained in the service of the Company.


 


11.2                           Funding
Not Required.  Neither a Non-Employee
Director nor any other person shall have any interest in any fund or in any
specific asset of the Company by reason of amounts credited to the Account of
such Non-Employee Director, any Cash Payments entitled to pursuant to Section 8,
or any Director Options granted to such Non-Employee Director under the Plan,
nor the right to exercise any of the rights or privileges of a shareholder with
respect to any Deferred Mutual Fund Units credited to such Account or any
granted Director Options, nor the right to receive any distribution under the
Plan except as expressly provided herein. 
Distributions hereunder shall be made from the general funds of the
Company or from a grantor trust established for purposes of assuring that funds
will be available to satisfy the obligations of the Company with respect to the
Accounts, and the rights of the Director shall be those of an unsecured general
creditor of the Company.  Nothing
contained in the Plan (or any Plan communication) shall constitute a guaranty
by the Company or any other entity or person that the assets of the Company
will be sufficient to pay any benefit hereunder.


 


11.3                           Indemnification.  Each person who is or shall have been a
member of the Board shall be indemnified and held harmless by the Company
against and from any loss, cost, liability or expense that may be imposed upon
or reasonably incurred by him in connection with or resulting from any claim,
action, suit or proceeding to which he may be a party or in which he 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 in settlement thereof, with
the Company’s approval, or paid by him in satisfaction of any judgment in any
such action, suit or proceeding against him, provided he shall give the Company
an opportunity, at its expense, to handle and defend the same before he undertakes
to handle and defend it on his own behalf. 
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.


 


11.4                           Requirements
of Law.  The granting of Director
Options and the issuance of shares of Common Stock with respect to an option
exercise, 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.


 


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11.5                           Governing
Law.  The Plan (including, without
limitation, any rules, regulations, determinations or decisions made by the
Board or Company relating to the Plan) shall be construed and administered
exclusively in accordance with applicable federal laws and the laws of the
State of Delaware, without regard to its conflict of laws principles.


 


11.6                           Administration.  The Board may establish such rules and
regulations with respect to the proper administration of the Plan as it may
determine, and may amend or revoke any rule or regulation so established.  This Plan shall be interpreted by and all
questions arising in connection therewith shall be determined by a majority of
the Board, whose interpretation or determination, when made in good faith,
shall be conclusive and binding.  Without
limiting the foregoing, the election of any Non-Employee Director to defer cash
payments, including Cash Payments made pursuant to Section 8, shall be
made and filed in accordance with procedures and forms set by the Board, and
the timeliness of such elections shall be determined by the Board.  Any deferral elections shall be made in
accordance with the applicable requirements of Code Section 409A.


 


11.7                           Tax
Withholding.  The Company may
withhold from the distribution of any payment hereunder the amount necessary to
satisfy a Non-Employee Director’s (or beneficiary’s) federal, state and local
withholding tax requirements.


 


11.8                           Construction.  In the construction of the Plan, the
masculine shall include the feminine and the singular shall include the plural
in all cases where such meanings would be appropriate.  Any headings used herein are included for
ease of reference only, and are not to be construed so as to alter the terms
hereof.


 


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