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Exhibit 10.1  


 
 

SLM CORPORATION
  INCENTIVE PLAN    
    


SECTION
1.    PURPOSE OF PLAN 


        The
purpose of the SLM Corporation Incentive Plan ("Plan") is to enable SLM Corporation (the "Corporation") to attract, retain and motivate its employees and to further align the
interests of the Corporation's employees with those of the stockholders of the Corporation by providing for or increasing their proprietary interest in the Corporation. 


SECTION
2.    ADMINISTRATION OF THE PLAN 



        2.1    Composition of Committee.    The Plan shall be administered by the Board of Directors and/or by a committee of
the Board of Directors of SLM Corporation, as appointed from time to time by the Board of Directors (the "Committee"). The Board of Directors shall fill vacancies on and from time to time may remove
or add members to the Committee. The Committee shall act pursuant to a majority vote or unanimous written consent. Notwithstanding the foregoing, with respect to any Award that is not intended to
satisfy the conditions of Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the "Exchange Act") or Section 162(m) of the Internal Revenue Code of 1986, as
amended (the "Code"), the Committee may appoint one or more separate committees (any such committee, a "Subcommittee") composed of one or more directors of the Corporation, (who may but need not be
members of the Committee) and may delegate to any such Subcommittee(s) the authority to grant Awards, as defined in Section 5.1 hereof, under the Plan to Employees, as defined in
Section 4, to determine all terms of such Awards, and/or to administer the Plan or any aspect of it. Any action by any such Subcommittee within the scope of such delegation shall be deemed for
all purposes to have been taken by the Committee. The Committee may designate the Secretary of the Corporation or other Corporation employees to assist the Committee in the administration of the Plan,
and may grant authority to such persons to execute agreements evidencing Awards made under this Plan or other documents entered into under this Plan on behalf of the Committee or the Corporation. 



        2.2    Powers of the Committee.    Subject to the express provisions of this Plan, the Committee shall be authorized
and empowered to do all things necessary or desirable in connection with the administration of this Plan with respect to the Awards over which such Committee has authority, including, without
limitation, the following: 


        (a)   to
prescribe, amend and rescind rules and regulations relating to this Plan and to define terms not otherwise defined herein; provided that, unless the Committee shall
specify otherwise, for purposes of this Plan (i) the term "fair market value" shall mean, as of any date, the closing price for a Share, as defined in Section 3.1 hereof, reported for
that date on the composite tape for securities listed on the New York Stock Exchange or, if no Shares traded on the New York Stock Exchange on the date in question, then for the next preceding date
for which Shares traded on the New York Stock Exchange; and (ii) the term "Corporation" shall mean SLM Corporation and its subsidiaries and affiliates, unless the context otherwise requires; 


        (b)   to
determine the Employees to whom Awards shall be granted hereunder and the timing of any such Awards; 


        (c)   to
determine the number of Shares subject to Awards and the exercise or purchase price of such Shares; 


        (d)   to
establish and verify the extent of satisfaction of any performance goals applicable to Awards; 


        (e)   to
prescribe and amend the terms of the agreements evidencing Awards made under this Plan (which need not be identical); 







 



        (f)    to
determine whether, and the extent to which, adjustments are required pursuant to Section 12 hereof; 



        (g)   to
interpret and construe this Plan, any rules and regulations under the Plan and the terms and conditions of any Award granted hereunder, and to make exceptions to any
such provisions in good faith and for the benefit of the Corporation; and 


        (h)   to
make all other determinations deemed necessary or advisable for the administration of the Plan. 


        2.3    Determinations of the Committee.    All decisions, determinations and interpretations by the Committee or the
Board regarding the Plan shall be final and binding on all Employees and Participants, as defined in Section 4 hereof. The Committee or the Board, as applicable, shall consider such factors as
it deems relevant, in its sole and absolute discretion, to making such decisions, determinations and interpretations including, without limitation, the recommendations or advice of any officer of the
Corporation or Employee and such attorneys, consultants and accountants as it may select. 


SECTION
3.    STOCK SUBJECT TO PLAN 


        3.1    Aggregate Limits.    Subject to adjustment as provided in Section 12, at any time, the aggregate number
of shares of the Corporation's common stock, $.20 par value ("Shares"), issued and issuable pursuant to all Awards granted under this Plan shall not exceed 15,000,000; provided that no more than
2,000,000 of such Shares may be issued as Share Awards, as that term is defined in Section 5.1. The Shares subject to the Plan may be either Shares reacquired by the Corporation, including
Shares purchased in the open market, or authorized but unissued Shares. 


        3.2    Code Section 162(m) Limits.    The aggregate number of Shares subject to Options granted under this Plan
during any calendar year to any one Employee shall not exceed 1,000,000. The aggregate number of Shares issued or issuable during any calendar year to any one Employee as Performance Stock Awards and
Restricted Stock Awards shall not exceed 100,000 Shares. The maximum amount payable pursuant to that portion of an Incentive Bonus Award granted under this Plan for any calendar year to any Employee
that is intended to satisfy the requirements for "performance based compensation" under Code Section 162(m) shall not exceed five million dollars ($5,000,000). 


        Notwithstanding
anything to the contrary in the Plan, the foregoing limitations shall be subject to adjustment under Section 12 only to the extent that such adjustment will not
affect the status of any Award intended to qualify as "performance based compensation" under Code Section 162(m). 



        3.3    Issuance of Shares.    For purposes of Section 3.1, the aggregate number of Shares issued under this
Plan at any time shall equal the number of Shares actually issued upon exercise or settlement of an Award less any Shares returned to the Corporation upon cancellation, expiration or forfeiture of an
Award and less any Shares delivered to the Corporation by or on behalf of a Participant (either actually or by attestation) in payment or satisfaction of the purchase price, exercise price or tax
obligation of an Award. 


SECTION
4.    PERSONS ELIGIBLE UNDER PLAN 


        Only
employees of the Corporation shall be eligible to be considered for the grant of Awards under the Plan. For purposes of the administration of Awards, the term "Employee" shall also
include a former Employee or any person (including any estate) who is a beneficiary of a former Employee. A "Participant" is any Employee to whom an Award has been made and any person (including any
estate) to whom an Award has been assigned or transferred pursuant to Section 11.1. 


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SECTION
5.    PLAN AWARDS 


        5.1    Award Types.    The following arrangements or benefits are authorized under the Plan if their terms and
conditions are not inconsistent with the provisions of the Plan: Stock Options, Incentive Bonuses, Performance Stock and Restricted Stock. Such arrangements and benefits are sometimes referred to
herein as "Awards." Incentive Bonuses, Performance Stock and Restricted Stock are also referred to as "Share Awards". Each type of Award is defined as follows: 


Stock Options:    A Stock Option is a right granted under Section 6 to purchase a number of Shares at such exercise price, at such
times, and on such other terms and conditions as are specified in or determined pursuant to the agreement evidencing the Award (the "Option Agreement"). Options intended to qualify as Incentive Stock
Options ("ISOs") pursuant to Code Section 422 and Options which are not intended to qualify as ISOs ("Non-qualified Options") may be granted under Section 6 as the Committee
in its sole discretion shall determine. 


Incentive Bonus:    An Incentive Bonus is a bonus opportunity awarded under Section 7 pursuant to which an Employee may become entitled
to receive an amount based on satisfaction of such performance criteria as are specified in the document evidencing the Award (the "Incentive Bonus Agreement"). 



Performance Stock:    Performance Stock is an award of Shares made under Section 8, the grant, issuance, retention and/or vesting of
which is subject to such performance and other conditions as are expressed in the document evidencing the Award (the "Performance Stock Agreement"). 


Restricted Stock:    Restricted Stock is an award of Shares made under Section 9, the grant, issuance, retention and/or vesting of
which is subject to certain restrictions, as are appropriate in the document evidencing the Award (the "Restricted Stock Agreement"). 



        5.2    Grants of Awards.    An Award may consist of one such arrangement or benefit or two or more of them in tandem
or in the alternative. 


SECTION
6.    STOCK OPTION GRANTS 


        The
Committee may grant an Option or provide for the grant of an Option, either from time-to-time in the discretion of the Committee or automatically upon the
occurrence of specified events, including, without limitation, the achievement of performance goals, the satisfaction of an event or condition within the control of the recipient of the Award, within
the control of others or not within the person's control. 



        6.1    Option Agreement.    Each Option Agreement shall contain provisions regarding (a) the number of Shares
which may be issued upon exercise of the Option, (b) the purchase price of the Shares and the means of payment for the Shares, (c) the term of the Option, (d) such terms and
conditions of exercisability as may be determined from time to time by the Committee, (e) restrictions on the transfer of the Option and forfeiture provisions, and (f) such further terms
and conditions, in each case not inconsistent with the Plan as may be determined from time to time by the Committee. Option Agreements evidencing ISOs shall contain such terms and conditions as may be
necessary to comply with the applicable provisions of Section 422 of the Code. 



        6.2    Option Price.    The purchase price per Share of the Shares subject to each Option granted under the Plan shall
equal or exceed 100 percent of the fair market value of such Stock on the date the Option is granted, except that in the case of Options granted to employees upon a merger or acquisition, the
purchase price may be higher or lower than the fair market value of the Stock on the date the Option is granted if such purchase price is required to assume or substitute options held by employees of
the acquired Corporation at the time of the acquisition. 


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        6.3    Option Term.    The "Term" of each Option granted under the Plan, including any ISOs, shall not exceed ten
(10) years from the date of its grant. 


        6.4    Option Vesting.    Options granted under the Plan shall be exercisable at such time and in such installments
during the period prior to the expiration of the Option's Term as determined by the Committee in its sole discretion, provided that no Option shall vest earlier than one year from the date of grant,
other than for reasons set forth in Section 11.6 and Section 13. The Committee shall have the right to make the timing of the ability to exercise any Option granted under the Plan
subject to such performance requirements as deemed appropriate by the Committee. At any time after the grant of an Option the Committee may, in its sole discretion, reduce or eliminate any
restrictions surrounding any Participant's right to exercise all or part of the Option. 


        6.5    Option Exercise.    



        (a)   Partial Exercise. An exercisable Option may be exercised in whole or in part. However, an Option shall not be exercisable
with respect to fractional Shares and the Committee may require, by the terms of the Option Agreement, a partial exercise to include a minimum number of Shares. 


        (b)   Manner of Exercise. All or a portion of an exercisable Option shall be deemed exercised upon delivery to the
representative of the Corporation designated for such purpose by the Committee all of the following: (i) notice of exercise in such form as the Committee authorizes specifying the number of
Shares to be purchased by the Participant, (ii) payment or provision for payment of the exercise price for such number of Shares, (iii) such representations and documents as the
Committee, in its sole discretion, deems necessary or advisable to effect compliance with all applicable provisions of the Securities Act of 1933, as amended, and any other federal, state or foreign
securities laws or regulations, (iv) in the event that the Option shall be exercised pursuant to Section 11.1 by any person or persons other than the Employee, appropriate proof of the
right of such person or persons to exercise the Option, and (v) such representations and documents as the Committee, in its sole discretion, deems necessary or advisable to provide for the tax
withholding pursuant to Section 14. Unless provided otherwise by the Committee, no Participant shall have any right as a stockholder with respect to any Shares purchased pursuant to any Option
until the registration of Shares in the name of such person, and no adjustment shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions
or other rights for which the record date is prior to the date such Shares are so registered. 


        (c)   Payment of Exercise Price. To the extent authorized by the Committee, the exercise price of an Option may be paid in the
form of one of more of the following, either through the terms of the Option Agreement or at the time of exercise of an Option: (i) cash or certified or cashiers' check, (ii) Shares that
have been held by the Participant for such period of time as the Committee may specify, (iii) other property deemed acceptable by the Committee, (iv) a reduction in the number of Shares
or other property otherwise issuable pursuant to such Option, (v) any combination of (i) through (iv). 


SECTION
7.    INCENTIVE BONUS 


        Each
Incentive Bonus Award will confer upon the Employee the opportunity to earn a payment tied to the level of achievement with respect to one or more performance criteria established
for a performance period of not less than one year. 


        7.1    Incentive Bonus Award.    Each Incentive Bonus Award shall contain provisions regarding (a) the target
and maximum amount payable to the Employee as an Incentive Bonus, (b) the performance criteria and level of achievement versus these criteria which shall determine the amount of such payment,
(c) the period as to which performance shall be measured for determining the amount of any payment, (d) the timing of any payment earned by virtue of performance, (e) restrictions
on the alienation or transfer of the Incentive Bonus prior to actual payment, (f) forfeiture provisions, and 


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(g) such
further terms and conditions, in each case not inconsistent with the Plan as may be determined from time to time by the Committee. 



        7.2    Performance Criteria.    The Committee shall establish the performance criteria and level of achievement versus
these criteria, which shall determine the maximum amount payable under an Incentive Bonus Award, which criteria may be based on financial performance and/or personal performance evaluations. The
Committee may specify the percentage of the target Incentive Bonus that is intended to satisfy the requirements for "performance-based compensation" under Code Section 162(m). Notwithstanding
anything to the contrary herein, the performance criteria for any portion of an Incentive Bonus that is intended by the Committee to satisfy the requirements for "performance-based compensation" under
Code Section 162(m) shall be a measure based on one or more Qualifying Performance Criteria (as defined in Section 11.2 hereof) selected by the Committee and specified at the time the
Incentive Bonus Award is granted. The Committee shall certify the extent to which any Qualifying Performance Criteria has been satisfied, and the amount payable as a result thereof, prior to payment
of any Incentive Bonus that is intended by the Committee to satisfy the requirements for "performance-based compensation" under Code Section 162(m). 


        7.3    Timing and Form of Payment.    The Committee shall determine the timing of payment of any Incentive Bonus. The
Committee may provide for or, subject to such terms and conditions as the Committee may specify, may permit a Participant to elect for the payment of any Incentive Bonus to be deferred to a specified
date or event. The Committee may provide for a Participant to have the option for his or her Incentive Bonus, or such portion thereof as the Committee may specify, to be paid in whole or in part in
Shares or Stock Units. 


        7.4    Discretionary Adjustments.    Notwithstanding satisfaction of any performance goals, the amount paid under an
Incentive Bonus Award on account of either financial performance or personal performance evaluations may be reduced by the Committee on the basis of such further considerations as the Committee in its
sole discretion shall determine. 


SECTION
8.    PERFORMANCE STOCK 


        Performance
Stock consists of an award of Shares, the grant, issuance, retention and/or vesting of which shall be subject to such performance conditions and to such further terms and
conditions as the Committee deems appropriate. 


        8.1    Performance Stock Award.    Each Performance Stock Award shall contain provisions regarding (a) the
number of Shares subject to such Award or a formula for determining such, (b) the performance criteria and level of achievement versus these criteria which shall determine the number of Shares
granted, issued, retainable and/or vested, (c) the period as to which performance shall be measured for determining achievement of performance, provided that such period shall be no shorter
than one year, (d) forfeiture provisions, and (e) such further terms and conditions, in each case not inconsistent with the Plan as may be determined from time to time by the Committee. 


        8.2    Performance Criteria.    The grant, issuance, retention and/or vesting of each Performance Share shall be
subject to such performance criteria and level of achievement versus these criteria as the Committee shall determine, which criteria may be based on financial performance and/or personal performance
evaluations. Notwithstanding anything to the contrary herein, the performance criteria for any Performance Stock that is intended by the Committee to satisfy the requirements for "performance-based
compensation" under Code Section 162(m) shall be a measure based on one or more Qualifying Performance Criteria selected by the Committee and specified at the time the Performance Stock Award
is granted. 


        8.3    Timing and Form of Payment.    The Committee shall determine the timing of payment of any Performance Stock
Award. The Committee may provide for or, subject to such terms and conditions as the Committee may specify, may permit a Participant to elect for the payment of any Performance 


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Stock
to be deferred to a specified date or event. The Committee may provide for a Participant to have the option for his or her Performance Stock, or such portion thereof as the Committee may
specify, to be granted in whole or in part in Shares or Stock Units. 


        8.4    Discretionary Adjustments.    Notwithstanding satisfaction of any performance goals, the number of Shares
granted, issued, retainable and/or vested under a Performance Stock Award on account of either financial performance or personal performance evaluations may be reduced by the Committee on the basis of
such further considerations as the Committee in its sole discretion shall determine. 


SECTION
9.    RESTRICTED STOCK 


        9.1    Restricted Stock Award.    Each Restricted Stock Award shall contain provisions regarding (a) the number
of Shares subject to such Award or a formula for determining such, (b) the length of the restrictive period over which the Restricted Stock Award shall vest or may ratably vest, provided that
such period shall be no shorter than three years, (c) forfeiture provisions, and (d) such further terms and conditions, in each case not inconsistent with the Plan as may be determined
from time to time by the Committee. 


        9.2.    Timing and Form of Payment.    The Committee shall determine the timing of payment of any Restricted Stock
Award. The Committee may provide for or, subject to such terms and conditions as the Committee may specify, may permit a Participant to elect for the payment of any Restricted Stock to be deferred to
a specified date or event. The Committee may provide for a Participant to have the option for his or her Restricted Stock, or such portion thereof as the Committee may specify, to be granted in whole
or in part in Shares or Stock Units. 


        9.3    Discretionary Adjustments.    The number of Shares granted, issued, retainable and/or vested under a Restricted
Stock Award may be reduced by the Committee on the basis of such further considerations as the Committee in its sole discretion shall determine. 


SECTION
10.    STOCK UNITS 


        10.1    Stock Units.    A "Stock Unit" is a bookkeeping entry representing an amount equivalent to the fair market
value of one share of Common Stock. Stock Units represent an unfunded and unsecured obligation of the Corporation, except as otherwise provided for by the Committee. 


        10.2    Grant of Stock Units.    Stock Units may be issued upon exercise of Options, or in payment and satisfaction of
any Share Award. 


        10.3    Settlement of Stock Units.    Unless provided otherwise by the Committee, settlement of Stock Units shall be
made by issuance of Shares and shall occur within 60 days after an Employee's termination of employment for any reason. The Committee may provide for Stock Units to be settled in cash (at the
election of the Corporation or the Participant, as specified by the Committee) and to be made at such other times as it determines appropriate or as it permits a Participant to choose. The amount of
Shares, or other settlement medium, to be so distributed may be increased by an interest factor or by dividend equivalents, which may be valued as if reinvested in Shares. Until a Stock Unit is
settled, the number of shares of Shares represented by a Stock Unit shall be subject to adjustment pursuant to Section 12. 


SECTION
11.    OTHER PROVISIONS APPLICABLE TO AWARDS 


        11.1    Transferability.    Unless the agreement evidencing an Award (or an amendment thereto authorized by the
Committee) expressly states that the Award is transferable as provided hereunder, no Award granted under the Plan, nor any interest in such Award, may be sold, assigned, conveyed, gifted, pledged,
hypothecated or otherwise transferred in any manner prior to the vesting or lapse of any and all restrictions applicable thereto, other than by will or the laws of descent and distribution. The 


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Committee
may in its sole discretion grant an Award or amend an outstanding Award to provide that the Award is transferable or assignable to a member or members of the Employee's "immediate family,"
as such term is defined under Exchange Act Rule 16a-1(e), or to a trust for the benefit solely of a member or members of the Employee's immediate family, or to a partnership or
other entity whose only owners are members of the Employee's family, provided that (i) no consideration is given in connection with the transfer of such Award, and (2) following any such
transfer or assignment the Award will remain subject to substantially the same terms applicable to the Award while held by the Employee, as modified as the Committee in its sole discretion shall
determine appropriate, and the Participant shall execute an agreement agreeing to be bound by such terms. 


        11.2    Qualifying Performance Criteria.    For purposes of this Plan, the term "Qualifying Performance Criteria"
shall mean any one or more of the following performance criteria, either individually, alternatively or in any combination, applied to either the Corporation as a whole or to a business unit or
subsidiary, either individually, alternatively or in any combination, and measured either annually or cumulatively over a period of years, on an absolute basis or relative to a
pre-established target, to previous years' results or to a designated comparison group, in each case as specified by the Committee in the Award: (a) cash flow, (b) "core
cash" earnings per share (including earnings before interest, taxes, depreciation and amortization), (c) return on equity, (d) total stockholder return, (e) return on capital,
(f) return on assets or net assets, (g) revenue, (h) "core cash" income or net income, (i) "core cash" operating income or net operating income, (j) operating profit
or net operating profit, (k) operating margin, (l) return on operating revenue, (m) market share, (n) loan volume and (o) overhead or other expense reduction. The
Committee may appropriately adjust any evaluation of performance under a Qualifying Performance Criteria to exclude any of the following events that occurs during a performance period:
(i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax law, accounting principles or other laws or provisions affecting
reported results, (iv) accruals for reorganization and restructuring programs, and (v) any extraordinary non-recurring items as described in Accounting Principles Board
Opinion No. 30 and/or in management's discussion and analysis of financial condition and results of operations appearing in the Corporation's annual report to stockholders for the applicable
year. 


        11.3    Dividends.    Unless otherwise provided by the Committee, no adjustment shall be made in Shares issuable under
Awards on account of cash dividends that may be paid or other rights that may be issued to the holders of Shares prior to their issuance under any Award. The Committee shall specify whether dividends
or dividend equivalent amounts shall be paid to any Participant with respect to the Shares subject to any Award that have not vested or been issued or that are subject to any restrictions or
conditions on the record date for dividends. 


        11.4    Agreements Evidencing Awards.    The Committee shall, subject to applicable law, determine the date an Award
is deemed to be granted, which for purposes of this Plan shall not be affected by the fact that an Award is contingent on subsequent stockholder approval of the Plan. The Committee or, except to the
extent prohibited under applicable law, its delegate(s) may establish the terms of agreements evidencing Awards under this Plan and may, but need not, require as a condition to any such agreement's
effectiveness that such agreement be executed by the Participant and that such Participant agree to such further terms and conditions as specified in such agreement. The grant of an Award under this
Plan shall not confer any rights upon the Participant holding such Award other than such terms, and subject to such conditions, as are specified in this Plan as being applicable to such type of Award
(or to all Awards) or as are expressly set forth in the Agreement evidencing such Award. 



        11.5    Tandem Stock or Cash Rights.    Either at the time an Award is granted or by subsequent action, the Committee
may, but need not, provide that an Award shall contain as a term thereof, a right, either in tandem with the other rights under the Award or as an alternative thereto, of the Participant to receive,
without payment to the Corporation, a number of Shares, cash or a combination thereof, the amount of which is determined by reference to the value of the Award. 


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        11.6    Termination of Employment.    At the time of the grant of an Award, the Committee may provide that upon an
Award holder's termination of employment on account of death, Disability or Involuntary Termination, as those terms are defined herein, all unvested Awards held by the Award holder shall vest.
"Disability" means total and permanent disability within the meaning of the Corporation's long-term disability policy applicable at the time to the Award holder, as may be amended from
time to time. "Involuntary Termination' means termination of employment due to job abolishment. 



        11.7    Misconduct.    At the time of the grant of an Award, the Committee may provide that if the Award holder
engages in Misconduct, as defined herein, the Award, whether vested or unvested, is forfeited. Whether an Award holder has engaged in Misconduct will be determined by the Corporation's senior human
resources officer or his or her designee. Misconduct is defined as an act of embezzlement, fraud, dishonesty, nonpayment of any obligation owed to the Corporation, breach of fiduciary duty or
deliberate disregard of Corporation rules; an unauthorized disclosure of any Corporation trade secret or confidential information; any conduct constituting unfair competition; inducing any customer of
the Corporation to breach a contract with the Corporation or any principal for whom the Corporation acts as agent to terminate such agency relationship; or engaging in any other act or conduct
proscribed by the senior human resources officer as Misconduct. 


SECTION
12.    CHANGES IN CAPITAL STRUCTURE 


        If
the outstanding securities of the class then subject to this Plan are increased, decreased or exchanged for or converted into cash, property or a different number or kind of shares or
securities, or if cash, property or shares or securities are distributed in respect of such outstanding securities, in either case as a result of a reorganization, merger, consolidation,
recapitalization, restructuring, reclassification, dividend (other than a regular, quarterly cash dividend) or other distribution, stock split, reverse stock split, spin-off or the like,
or if substantially all of the property and assets of the Corporation are sold, then, unless the terms of such transaction shall provide otherwise, the Committee shall make appropriate and
proportionate adjustments in (i) the number and type of shares or other securities or cash or other property that may be acquired pursuant to Awards theretofore granted under this Plan and the
exercise or settlement price of such Awards, provided, however, that such adjustment shall be made in such a manner that will not affect the status of any Award intended to qualify as an ISO under
Code Section 422 or as "performance based compensation" under Code Section 162(m), and (ii) the maximum number and type of shares or other securities that may be issued pursuant
to such Awards thereafter granted under this Plan. 


SECTION
13.    CHANGE OF CONTROL 


        13.1    Effect of Change of Control.    The Committee may through the terms of the Award or otherwise provide that any
or all of the following shall occur, either immediately upon the Change of Control or a Change of Control Transaction, or upon termination of the Employee's employment within twenty-four
(24) months following a Change of Control or a Change of Control Transaction: (a) in the case of an Option, the Participant's ability to exercise any portion of the Option not previously
exercisable, (b) in the case of an Incentive Bonus, the right to receive a payment equal to the target amount payable or, if greater, a payment based on performance through a date determined by
the Committee prior to the Change of Control, and (c) in the case of Shares issued in payment of any Incentive Bonus, and/or in the case of Performance Stock or Stock Units, the lapse and
expiration on any conditions to the grant, issuance, retention, vesting or transferability of, or any other restrictions applicable to, such Award. The Committee also may, through the terms of the
Award or otherwise, provide for an absolute or conditional exercise, payment or lapse of conditions or restrictions on an Award which shall only be effective if, upon the announcement of a Change of
Control Transaction, no provision is made in such Change of Control Transaction for the exercise, payment or lapse of 


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conditions
or restrictions on the Award, or other procedure whereby the Participant may realize the full benefit of the Award. 


        13.2    Definitions.    Unless the Committee or the Board shall provide otherwise, "Change of Control" shall mean an
occurrence of any of the following events: (a) an acquisition (other than directly from the Corporation) of any voting securities of the Corporation (the "Voting Securities") by any "person or
group" (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) other than an employee benefit plan of the Corporation, immediately after which such Person has "Beneficial
Ownership" (within the meaning of Rule 13d-3 under the Exchange Act) of more than fifty percent (50%) of the combined voting power of the Corporation's then outstanding Voting
Securities; (b) approval by the stockholders of (i) a merger, consolidation or reorganization involving the Corporation, unless the Corporation resulting from such merger, consolidation
or reorganization (the
"Surviving Corporation") shall adopt or assume this Plan and a Participant's Awards under the Plan and either (A) the stockholders of the Corporation immediately before such merger,
consolidation or reorganization own, directly or indirectly immediately following such merger, consolidation or reorganization, at least seventy-five percent (75%) of the combined voting
power of the Surviving Corporation in substantially the same proportion as their ownership immediately before such merger, consolidation or reorganization, or (B) at least a majority of the
members of the Board of Directors of the Surviving Corporation were directors of the Corporation immediately prior to the execution of the agreement providing for such merger, consolidation or
reorganization, or (ii) a complete liquidation or dissolution of the Corporation; or (c) such other events as the Committee or the Board from time to time may specify. "Change of Control
Transaction" shall include any tender offer, offer, exchange offer, solicitation, merger, consolidation, reorganization or other transaction which is intended to or reasonably expected to result in a
change of control. 


SECTION
14.    TAXES 


        14.1    Withholding Requirements.    The Committee may make such provisions or impose such conditions as it may deem
appropriate for the withholding or payment by the Employee or Participant, as appropriate, of any taxes which it determines are required in connection with any Awards granted under this Plan, and a
Participant's rights in any Award are subject to satisfaction of such conditions. 


        14.2    Payment of Withholding Taxes.    Notwithstanding the terms of Section 14.1 hereof, the Committee may
provide in the agreement evidencing an Award or otherwise that all or any portion of the taxes required to be withheld by the Corporation or, if permitted by the Committee, desired to be paid by the
Participant, in connection with the exercise of a Non-qualified Option or the exercise, vesting, settlement or transfer of any other Award shall be paid or, at the election of the
Participant, may be paid by the Corporation withholding Shares otherwise issuable or subject to such Award, or by the Participant delivering previously owned Shares, in each case having a fair market
value equal to the amount required or elected to be withheld or paid. Any such elections are subject to such conditions or procedures as may be established by the Committee and may be subject to
disapproval by the Committee. 


SECTION
15.    AMENDMENTS OR TERMINATION 


        The
Board may amend, alter or discontinue the Plan or any agreement evidencing an Award made under the Plan, but no such amendment shall, without the approval of the shareholders of the
Corporation: 


        (a)   materially
increase the number of shares that may be issued under the Plan; 


        (b)   permit
granting of stock options at less than fair market value; 


        (c)   reduce
or adjust downward the exercise price of outstanding options, whether through amendment, cancellation or replacement grants, or any other means; 


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        (d)   impair
the rights of any award holder without his or her consent; 


        (e)   change
the class of individuals eligible for the Plan 


        (f)    extend
the term of the Plan; and 


        (g)   otherwise
amend the Plan in any manner if not permitted to do so by law or the NYSE listing requirements without shareholder approval. 


SECTION
16.    COMPLIANCE WITH OTHER LAWS AND REGULATIONS. 


        The
Plan, the grant and exercise of Awards thereunder, and the obligation of the Corporation to sell, issue or deliver Shares under such Awards, shall be subject to all applicable
federal, state and foreign laws, rules and regulations and to such approvals by any governmental or regulatory agency as may be required. The Corporation shall not be required to register in a
Participant's name or deliver any Shares prior to the completion of any registration or qualification of such Shares under any federal, state or foreign law or any ruling or regulation of any
government body which the Committee shall, in its sole discretion, determine to be necessary or advisable. This Plan is intended to constitute an unfunded arrangement for a select group of management
or other key employees. 


        No
Option shall be exercisable unless a registration statement with respect to the Option is effective or the Corporation has determined that such registration is unnecessary. Unless the
Awards and Shares covered by this Plan have been registered under the Securities Act of 1933, as amended, or the Corporation has determined that such registration is unnecessary, each person receiving
an Award and/or Shares pursuant to any Award may be required by the Corporation to give a representation in writing that such person is acquiring such Shares for his or her own account for investment
and not with a view to, or for sale in connection with, the distribution of any part thereof. 


SECTION
17.    OPTION GRANTS BY SUBSIDIARIES 


        In
the case of a grant of an option to any eligible Employee employed by a subsidiary, such grant may, if the Committee so directs, be implemented by the Corporation issuing any subject
shares to the subsidiary, for such lawful consideration as the Committee may determine, upon the condition or understanding that the subsidiary will transfer the shares to the option holder in
accordance with the terms of the option specified by the Committee pursuant to the provisions of the Plan. Notwithstanding any other provision hereof, such option may be issued by and in the name of
the subsidiary and shall be deemed granted on such date as the Committee shall determine. 


SECTION
18.    NO RIGHT TO COMPANY EMPLOYMENT 


        Nothing
in this Plan or as a result of any Award granted pursuant to this Plan shall confer on any individual any right to continue in the employ of the Corporation or interfere in any
way with the right of the Corporation to terminate an individual's employment at any time. The Award agreements may contain such provisions as the Committee may approve with reference to the effect of
approved leaves of absence. 


SECTION
19.    EFFECTIVENESS AND EXPIRATION OF PLAN 


        The
Plan shall be effective on May 13, 2004. All Awards granted under this Plan are subject to, and may not be exercised before, the approval of this Plan by the stockholders
prior to the first anniversary date of the effective date of the Plan, by the affirmative vote of the holders of a majority of the outstanding shares of the Corporation present, or represented by
proxy, and entitled to vote, at a meeting of the Corporation's stockholders or by written consent in accordance with the laws of the State of Delaware; provided that if such approval by the
stockholders of the Corporation is not forthcoming, all Awards previously granted under this Plan shall be void. No Awards shall be granted pursuant to the Plan after May 31, 2009. 


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SECTION
20.    NON-EXCLUSIVITY OF THE PLAN 


        Neither
the adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Corporation for approval shall be construed as creating any limitations on the
power of the Board or the Committee to adopt such other incentive arrangements as it or they may deem desirable,
including without limitation, the granting of restricted stock or stock options otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in specific
cases. 


SECTION
21.    GOVERNING LAW 


        This
Plan and any agreements hereunder shall be interpreted and construed in accordance with the laws of the State of Delaware and applicable federal law. The Committee may provide that
any dispute as to any Award shall be presented and determined in such forum as the Committee may specify, including through binding arbitration. Any reference in this Plan or in the agreement
evidencing any Award to a provision of law or to a rule or regulation shall be deemed to include any successor law, rule or regulation of similar effect or applicability. 


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