**ORTEC        INTERNATIONAL, INC.**

**2006        Stock Award and Incentive Plan**

| Purpose                                                                  | 1  |
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| Definitions                                                              | 1  |
| Administration                                                           | 3  |
| Stock                    Subject to Plan                                 | 4  |
| Eligibility;                    Per-Person Award Limitations             | 5  |
| Specific                    Terms of Awards                              | 5  |
| Performance                    Awards, Including Annual Incentive Awards | 9  |
| Certain                    Provisions Applicable to Awards               | 12 |
| Change                    in Control                                     | 13 |
| General                    Provisions                                    | 16 |

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**ORTEC        INTERNATIONAL, INC.**

**2006        Stock Award and Incentive Plan**

*Purpose.        *

*Definitions.        *

|  | (a) | “Annual                  Incentive Award” means a type of Performance Award granted to a                  Participant under Section 7(c) representing a conditional right to                  receive cash, Stock or other Awards or payments, as determined                  by the                  Committee, based on performance in a performance period of one                  fiscal year                  or a portion thereof. |
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|   | (b) | “Award”                  means any Option, Restricted Stock, Deferred Stock, Stock granted                  as a                  bonus or in lieu of another award, Other Stock-Based Award, Performance                  Award or Annual Incentive Award, together with any related right                  or                  interest, granted to a Participant under the Plan. |
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|  | (c) | “Beneficiary”                  means the legal representatives of the Participant’s estate entitled by                  will or the laws of descent and distribution to receive the benefits                  under                  a Participant’s Award upon a Participant’s death, provided that, if and to                  the extent authorized by the Committee, a Participant may be permitted                  to                  designate a Beneficiary, in which case the “Beneficiary” instead will be                  the person, persons, trust or trusts (if any are then surviving)                  which                  have been designated by the Participant in his or her most recent                  written                  beneficiary designation filed with the Committee to receive the                  benefits                  specified under the Participant’s Award upon such Participant’s death.                  Unless otherwise determined by the Committee, any designation of                  a                  Beneficiary other than a Participant’s spouse shall be subject to the                  written consent of such spouse. |
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|  | (d) | “Board”                  means the Company’s Board of Directors. |
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|  | (e) | “Change                  in Control” and related terms have the meanings specified in                  Section 9. |
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|  | (f) | “Code”                  means the Internal Revenue Code of 1986, as amended. References                  to any                  provision of the Code or regulation (including a proposed regulation)                  thereunder shall include any successor provisions and                  regulations. |
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|  | (g) | “Committee”                  means a committee or sub-committee of two or more directors designated                  by                  the Board to administer the Plan; provided, however, that, directors                  appointed or serving as members of such Board committee or sub-committee                  designated as the Committee shall not be employees of the Company                  or any                  subsidiary or affiliate. In appointing members of such Committee                  or                  sub-committee, the Board will consider whether a member is or will                  be a                  Qualified Member, but such members are not required to be Qualified                  Members at the time of appointment or during their term of service                  on such                  Committee or sub-committee. The full Board may perform any function                  of                  such Committee or sub-committee, in which case the term “Committee” shall                  refer to the Board. |
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|  | (h) | “Covered                  Employee” means an Eligible Person who is a Covered Employee as specified                  in Section 10(j). |
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|   | (i) | “Deferred                  Stock” means a right, granted to a Participant under Section 6(e), to                  receive Stock or other Awards or a combination thereof at the end                  of a                  specified deferral period. |
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|   | (j) | “Effective                  Date” means the effective date specified in Section                  10(p). |
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|   | (k) | “Eligible                  Person” has the meaning specified in                  Section 5. |
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|   | (l) | “Exchange                  Act” means the Securities Exchange Act of 1934, as amended. References                  to                  any provision of the Exchange Act or rule (including a proposed                  rule)                  thereunder shall include any successor provisions and                  rules. |
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|   | (m) | “Fair                  Market Value” shall mean the amount determined by the Board or the                  Committee, except that if the Stock is listed on a national securities                  exchange (or traded on the over-the-counter market), the fair market                  value                  shall be the closing price of the Stock on such exchange (or market                  as                  reported by the National Quotation Bureau) on the day on which                  an Award is                  granted (or with respect to a Change in Control or other event                  requiring                  the valuation of the Stock, the closing price on the appropriate                  date as                  determined by the Board or Committee), or, if there is no trading                  or                  closing price on that day, the closing price on the most recent                  day                  preceding the day for which such prices are available. |
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|   | (n) | “Incentive                  Stock Option” or “ISO” means any Option designated as an incentive stock                  option within the meaning of Code Section 422 or any successor                  provision thereto and qualifying thereunder. |
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|   | (o) | “Option”                  means a right, granted to a Participant under Section 6(b), to                  purchase                  Stock or other Awards at a specified price during specified time                  periods. |
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|   | (p) | “Other                  Stock-Based Awards” means Awards granted to a Participant under                  Section 6(h). |
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|   | (q) | “Participant”                  means a person who has been granted an Award under the Plan which                  remains                  outstanding, including a person who is no longer an Eligible Person. |
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|   | (r) | “Performance                  Award” means a right, granted to a Participant under Sections 6(i)                  and 7, to receive Awards or payments based upon performance criteria                  specified by the Committee. |
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|   | (s) | “Qualified                  Member” means a member of the Committee who is a “Non-Employee Director”                  within the meaning of Rule 16b-3(b)(3) and an “outside director”                  within the meaning of Regulation 1.162-27 under Code                  Section 162(m). |
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|   | (t) | “Restricted                  Stock” means Stock granted to a Participant under Section 6(c) that                  is subject to certain restrictions and to a risk of forfeiture. |
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|   | (u) | “Rule 16b-3”                  means Rule 16b-3, as from time to time in effect and applicable to                  Participants, promulgated by the Securities and Exchange Commission                  under                  Section 16 of the Exchange Act. “Stock” means the Company’s Common                  Stock, par value $.001 per share, and any other equity securities                  of the                  Company that may be substituted or resubstituted for Stock pursuant                  to                  Section 10(c). |
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|   | (a) | *Authority                  of the Committee.*The                  Plan shall be administered by the Committee (subject to the Board’s                  authority to restrict the Committee), which shall have full and                  final                  authority, in each case subject to and consistent with the provisions                  of                  the Plan, to select Eligible Persons to become Participants; to                  grant                  Awards; to determine the type and number of Awards, the dates on                  which                  Awards may be exercised and on which the risk of forfeiture or                  deferral                  period relating to Awards shall lapse or terminate, the acceleration                  of                  any such dates, the expiration date of any Award, whether, to what                  extent,                  and under what circumstances an Award may be settled, or the exercise                  price of an Award may be paid, in cash, Stock, other Awards, or                  other                  property, and other terms and conditions of, and all other matters                  relating to, Awards; to prescribe documents evidencing or setting                  terms of                  Awards (such Award documents need not be identical for each Participant),                  amendments thereto, and rules and regulations for the administration                  of                  the Plan and amendments thereto; to construe and interpret the                  Plan and                  Award documents and correct defects, supply omissions or reconcile                  inconsistencies therein; and to make all other decisions and                  determinations as the Committee may deem necessary or advisable                  for the                  administration of the Plan. Decisions of the Committee with respect                  to the                  administration and interpretation of the Plan shall be final, conclusive,                  and binding upon all persons interested in the Plan, including                  Participants, Beneficiaries, transferees under Section 10(b) and                  other persons claiming rights from or through a Participant, and                  stockholders. The foregoing notwithstanding, the Board shall perform                  the                  functions of the Committee for purposes of granting Awards under                  the Plan                  to non-employee directors (authority with respect to other aspects                  of                  non-employee director awards is not exclusive to the Board,                  however). |
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|   | (b) | *Manner                  of Exercise of Committee Authority.*At                  any time that a member of the Committee is not a Qualified Member,                  (i) any action of the Committee relating to an Award intended by the                  Committee to qualify as “performance-based compensation” within the                  meaning of Code Section 162(m) and regulations thereunder may be                  taken by a subcommittee, designated by the Committee or the Board,                  composed solely of two or more Qualified Members, and (ii) any action                  relating to an Award granted or to be granted to a Participant                  who is then                  subject to Section 16 of the Exchange Act in respect of the Company                  may be taken either by such a subcommittee or by the Committee                  but with                  each such member who is not a Qualified Member abstaining or recusing                  himself or herself from such action, provided that, upon such abstention                  or recusal, the Committee remains composed solely of two or more                  Qualified                  Members. Such action, authorized by such a subcommittee or by the                  Committee upon the abstention or recusal of such non-Qualified                  Member(s),                  shall be the action of the Committee for purposes of the Plan.                  The express                  grant of any specific power to the Committee, and the taking of                  any action                  by the Committee, shall not be construed as limiting any power                  or                  authority of the Committee. The Committee may delegate to officers                  or                  managers of the Company or any subsidiary or affiliate, or committees                  thereof, the authority, subject to such terms as the Committee                  shall                  determine, to perform such functions, including administrative                  functions,                  as the Committee may determine. Notwithstanding the foregoing,                  no action                  may be taken pursuant to this Section 3(b) if such action would                  result in the loss of an exemption under Rule 16b-3(d) for Awards                  granted to Participants subject to Section 16 of the Exchange Act in                  respect of the Company and would cause Awards intended to qualify                  as                  “performance-based compensation” under Code Section 162(m) to fail to                  so qualify. |
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|   | (c) | *Limitation                  of Liability.*The                  Committee and each member thereof, and any person acting pursuant                  to                  authority delegated by the Committee, shall be entitled, in good                  faith, to                  rely or act upon any report or other information furnished by any                  executive officer, other officer or employee of the Company or                  a                  subsidiary or affiliate, the Company’s independent auditors, consultants                  or any other agents assisting in the administration of the Plan.                  Members                  of the Committee, any person acting pursuant to authority delegated                  by the                  Committee, and any officer or employee of the Company or a subsidiary                  or                  affiliate acting at the direction or on behalf of the Committee                  or a                  delegee shall not be personally liable for any action or determination                  taken or made in good faith with respect to the Plan, and shall,                  to the                  extent permitted by law, be fully indemnified and protected by                  the Company                  with respect to any such action or                  determination. |
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*Stock        Subject to Plan.*

|   | (a) | *Overall                  Number of Shares Available for Delivery.*Subject                  to adjustment as provided in Section 10(c), the total number of                  shares of Stock reserved and available for delivery in connection                  with                  Awards under the Plan shall be 6,000,000 shares. Any shares of                  Stock                  delivered under the Plan shall consist of authorized and unissued                  shares                  or treasury shares. |
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|   | (b) | *Share                  Counting Rules.*The                  Committee may adopt reasonable counting procedures to ensure appropriate                  counting, avoid double counting (as, for example, in the case of                  tandem or                  substitute awards) and make adjustments if the number of shares                  of Stock                  actually delivered differs from the number of shares previously                  counted in                  connection with an Award. Shares subject to an Award that is canceled,                  expired, forfeited, settled in cash or otherwise terminated without                  a                  delivery of shares to the Participant will again be available for                  Awards,                  and shares withheld in payment of the exercise price or taxes relating                  to                  an Award and shares equal to the number surrendered in payment                  of any                  exercise price or taxes relating to an Award shall be deemed to                  constitute                  shares not delivered to the Participant and shall be deemed to                  again be                  available for Awards under the Plan. In addition, in the case of                  any Award                  granted in substitution for an award of a company or business acquired                  by                  the Company or a subsidiary or affiliate, shares issued or issuable                  in                  connection with such substitute Award shall not be counted against                  the                  number of shares reserved under the Plan, but shall be available                  under the                  Plan by virtue of the Company’s assumption of the plan or arrangement of                  the acquired company or business. This Section 4(b) shall apply to                  the number of shares reserved and available for ISOs only to the                  extent                  consistent with applicable regulations relating to ISOs under the                  Code. |
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*Eligibility;        Per-Person Award Limitations. *

*Specific        Terms of Awards.*

|   | (a) | *General.*Awards                  may be granted on the terms and conditions set forth in this                  Section 6. In addition, the Committee may impose on any Award or the                  exercise thereof, at the date of grant or thereafter (subject to                  Section 10(e)), such additional terms and conditions, not                  inconsistent with the provisions of the Plan, as the Committee                  shall                  determine, including terms requiring forfeiture of Awards in the                  event of                  termination of employment or service by the Participant and terms                  permitting a Participant to make elections relating to his or her                  Award.                  The Committee shall retain full power and discretion with respect                  to any                  term or condition of an Award that is not mandatory under the Plan.                  The                  Committee shall require the payment of lawful consideration for                  an Award                  to the extent necessary to satisfy the requirements of the Delaware                  General Corporation Law, and may otherwise require payment of                  consideration for an Award except as limited by the                  Plan. |
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|   | (b) | *Options.*The                  Committee is authorized to grant Options to Eligible Persons on                  the                  following terms and conditions: |
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|   | (i) | *Exercise                  Price.*The                  exercise price per share of Stock purchasable under an Option (including                  both ISOs and non-qualified Options) shall be determined by the                  Committee,                  provided                  that such exercise price shall be not less than the Fair Market                  Value of a                  share of Stock on the date of grant of such Option, subject to                  Sections 6(f) and 9(a). |
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|  | (ii) | *Option                  Term; Time and Method of Exercise.*The                  Committee shall determine the term of each Option, provided that                  in no                  event shall the term of any ISO exceed a period of ten years from                  the date                  of grant. The Committee shall determine the time or times at which                  or the                  circumstances under which an Option may be exercised in whole or                  in part                  (including based on achievement of performance goals and/or future                  service                  requirements), the methods by which such exercise price may be                  paid or                  deemed to be paid and the form of such payment (subject to                  Section 10(k)), including, without limitation, cash, Stock, other                  Awards or awards granted under other plans of the Company or any                  subsidiary or affiliate, or other property (including notes and                  other                  contractual obligations of Participants to make payment on a deferred                  basis, such as through “cashless exercise” arrangements, to the extent                  permitted by applicable law), and the methods by or forms in which                  Stock                  will be delivered or deemed to be delivered in satisfaction of                  Options to                  Participants (including deferred delivery of shares representing                  the                  Option “profit,” at the election of the Participant or as mandated by the                  Committee, with such deferred shares subject to any vesting, forfeiture                  or                  other terms as the Committee may specify). |
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|  | (iii) | *ISOs.*The                  terms of any ISO granted under the Plan shall comply in all respects                  with                  the provisions of Code Section 422, including but not limited to the                  requirement that no ISO shall be granted more than ten years after                  the                  Effective Date.   |
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|   | (c) | *Restricted                  Stock.*The                  Committee is authorized to grant Restricted Stock to Eligible Persons                  on                  the following terms and conditions: |
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|   | (i) | *Grant                  and Restrictions.*Restricted                  Stock shall be subject to such restrictions on transferability,                  risk of                  forfeiture and other restrictions, if any, as the Committee may                  impose,                  which restrictions may lapse separately or in combination at such                  times,                  under such circumstances (including based on achievement of performance                  goals and/or future service requirements), in such installments                  or                  otherwise and under such other circumstances as the Committee may                  determine at the date of grant or thereafter. Except to the extent                  restricted under the terms of the Plan and any Award document relating                  to                  the Restricted Stock, a Participant granted Restricted Stock shall                  have                  all of the rights of a stockholder, including the right to vote                  the                  Restricted Stock and the right to receive dividends thereon (subject                  to                  any mandatory reinvestment or other requirement imposed by the                  Committee). |
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|   | (ii) | *Forfeiture.*Except                  as otherwise determined by the Committee, upon termination of employment                  or service during the applicable restriction period, Restricted                  Stock that                  is at that time subject to restrictions shall be forfeited and                  reacquired                  by the Company; provided that the Committee may provide, by rule                  or                  regulation or in any Award document, or may determine in any individual                  case, that restrictions or forfeiture conditions relating to Restricted                  Stock will lapse in whole or in part, including in the event of                  terminations resulting from specified                  causes. |
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|   | (iii) | *Certificates                  for Stock.*Restricted                  Stock granted under the Plan may be evidenced in such manner as                  the                  Committee shall determine. If certificates representing Restricted                  Stock                  are registered in the name of the Participant, the Committee may                  require                  that such certificates bear an appropriate legend referring to                  the terms,                  conditions and restrictions applicable to such Restricted Stock,                  that the                  Company retain physical possession of the certificates, and that                  the                  Participant deliver a stock power to the Company, endorsed in blank,                  relating to the Restricted Stock. |
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|   | (iv) | *Dividends                  and Splits.*As                  a condition to the grant of an Award of Restricted Stock, the Committee                  may require that any dividends paid on a share of Restricted Stock                  shall                  be either (A) paid with respect to such Restricted Stock at the                  dividend payment date in cash, in kind, or in a number of shares                  of                  unrestricted Stock having a Fair Market Value equal to the amount                  of such                  dividends, or (B) automatically reinvested in additional Restricted                  Stock                  or held in kind, which shall be subject to the same terms as applied                  to                  the original Restricted Stock to which it relates, or (C) deferred as                  to payment, either as a cash deferral or with the amount or value                  thereof                  automatically deemed reinvested in shares of Deferred Stock, other                  Awards                  or other investment vehicles, subject to such terms as the Committee                  shall                  determine or permit a Participant to elect. Unless otherwise determined                  by                  the Committee, Stock distributed in connection with a Stock split                  or Stock                  dividend, and other property distributed as a dividend, shall be                  subject                  to restrictions and a risk of forfeiture to the same extent as                  the                  Restricted Stock with respect to which such Stock or other property                  has                  been distributed. |
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|   | (d) | *Deferred                  Stock.*The                  Committee is authorized to grant Deferred Stock to Eligible Persons,                  which                  are rights to receive Stock, other Awards, or a combination thereof                  at the                  end of a specified deferral period, subject to the following terms                  and                  conditions: |
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|   | (i) | *Award                  and Restrictions.*Issuance                  of Stock will occur upon expiration of the deferral period specified                  for                  an Award of Deferred Stock by the Committee (or, if permitted by                  the                  Committee, as elected by the Participant). In addition, Deferred                  Stock                  shall be subject to such restrictions on transferability, risk                  of                  forfeiture and other restrictions, if any, as the Committee may                  impose,                  which restrictions may lapse at the expiration of the deferral                  period or                  at earlier specified times (including based on achievement of performance                  goals and/or future service requirements), separately or in combination,                  in installments or otherwise, and under such other circumstances                  as the                  Committee may determine at the date of grant or thereafter. Deferred                  Stock                  may be satisfied by delivery of Stock, other Awards, or a combination                  thereof (subject to Section 10(k)), as determined by the Committee at                  the date of grant or thereafter. |
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|   | (ii) | *Forfeiture.*Except                  as otherwise determined by the Committee, upon termination of employment                  or service during the applicable deferral period or portion thereof                  to                  which forfeiture conditions apply (as provided in the Award document                  evidencing the Deferred Stock), all Deferred Stock that is at that                  time                  subject to such forfeiture conditions shall be forfeited; provided                  that                  the Committee may provide, by rule or regulation or in any Award                  document,                  or may determine in any individual case, that restrictions or forfeiture                  conditions relating to Deferred Stock will lapse in whole or in                  part,                  including in the event of terminations resulting from specified                  causes. |
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|  | (e) | Intentionally                  omitted |
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|   | (f) | *Bonus                  Stock and Awards in Lieu of Obligations.*The                  Committee is authorized to grant Stock as a bonus, or to grant                  Stock or                  other Awards in lieu of obligations of the Company or a subsidiary                  or                  affiliate to pay cash or deliver other property under the Plan                  or under                  other plans or compensatory arrangements, subject to such terms                  as shall                  be determined by the Committee. |
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|   | (g) | *Other                  Stock-Based Awards.*The                  Committee is authorized, subject to limitations under applicable                  law, to                  grant to Eligible Persons such other Awards that may be denominated                  or                  payable in, valued in whole or in part by reference to, or otherwise                  based                  on, or related to, Stock or factors that may influence the value                  of Stock,                  including, without limitation, convertible or exchangeable debt                  securities, other rights convertible or exchangeable into Stock,                  purchase                  rights for Stock, Awards with value and payment contingent upon                  performance of the Company or business units thereof or any other                  factors                  designated by the Committee, and Awards valued by reference to                  the book                  value of Stock or the value of securities of or the performance                  of                  specified subsidiaries or affiliates or other business units. The                  Committee shall determine the terms and conditions of such Awards.                  Stock                  delivered pursuant to an Award in the nature of a purchase right                  granted                  under this Section 6(h) shall be purchased for such consideration,                  paid for at such times, by such methods, and in such forms, including,                  without limitation, cash, Stock, other Awards, notes, or other                  property,                  as the Committee shall determine. Cash awards, as an element of                  or                  supplement to any other Award under the Plan, may also be granted                  pursuant                  to this Section 6(h). |
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|   | (h) | *Performance                  Awards.*Performance                  Awards, denominated in cash or in Stock or other Awards, may be                  granted by                  the Committee in accordance with                  Section 7. |
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*Performance        Awards, Including Annual Incentive Awards.*

|   | (a) | *Performance                  Awards Generally.*The                  Committee is authorized to grant Performance Awards on the terms                  and                  conditions specified in this Section 7. Performance Awards may be                  denominated as a cash amount, number of shares of Stock, or specified                  number of other Awards (or a combination) which may be earned upon                  achievement or satisfaction of performance conditions specified                  by the                  Committee. In addition, the Committee may specify that any other                  Award                  shall constitute a Performance Award by conditioning the right                  of a                  Participant to exercise the Award or have it settled, and the timing                  thereof, upon achievement or satisfaction of such performance conditions                  as may be specified by the Committee. The Committee may use such                  business                  criteria and other measures of performance as it may deem appropriate                  in                  establishing any performance conditions, and may exercise its discretion                  to reduce or increase the amounts payable under any Award subject                  to                  performance conditions, except as limited under Sections 7(b) and                  7(c) in                  the case of a Performance Award intended to qualify as “performance-based                  compensation” under Code                  Section 162(m). |
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|   | (b) | *Performance                  Awards Granted to Covered Employees.*If                  the Committee determines that a Performance Award to be granted                  to an                  Eligible Person who is designated by the Committee as likely to                  be a                  Covered Employee should qualify as “performance-based compensation” for                  purposes of Code Section 162(m), the grant, exercise and/or settlement                  of                  such Performance Award shall be contingent upon achievement of                  a                  pre-established performance goal and other terms set forth in this                  Section 7(b). |
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|   | (i) | *Performance                  Goal Generally.*The                  performance goal for such Performance Awards shall consist of one                  or more                  business criteria and a targeted level or levels of performance                  with                  respect to each of such criteria, as specified by the Committee                  consistent                  with this Section 7(b). The performance goal shall be objective                  and shall                  otherwise meet the requirements of Code Section 162(m) and                  regulations thereunder (including Regulation 1.162-27 and successor                  regulations thereto), including the requirement that the level                  or levels                  of performance targeted by the Committee result in the achievement                  of                  performance goals being “substantially uncertain.” The Committee may                  determine that such Performance Awards shall be granted, exercised                  and/or                  settled upon achievement of any one performance goal or that two                  or more                  of the performance goals must be achieved as a condition to grant,                  exercise and/or settlement of such Performance Awards. Performance                  goals                  may differ for Performance Awards granted to any one Participant                  or to                  different Participants. |
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|   | (ii) | *Business                  Criteria.*One                  or more of the following business criteria for the Company, on                  a                  consolidated basis, and/or for specified subsidiaries or affiliates                  or                  other business units of the Company shall be used by the Committee                  in                  establishing performance goals for such Performance Awards:                  (1) growth in revenues or assets; (2) earnings from operations,                  earnings before or after taxes, earnings before or after interest,                  depreciation, amortization, or extraordinary or special items;                  (3) net income or net income per common share (basic or diluted);                  (4) return on assets, return on investment, return on capital, or                  return on equity; (5) cash flow, free cash flow, cash flow return on                  investment, or net cash provided by operations; (6) interest expense                  after taxes; (7) economic profit; (8) operating margin or gross                  margin; (9) stock price or total stockholder return; and                  (10) strategic business criteria, consisting of one or more                  objectives based on securing financing needed for the Company’s                  continuation or expansion of its business operations, environmental                  or                  safety standards, market penetration, geographic business expansion                  goals,                  cost targets, customer satisfaction, employee satisfaction, management                  of                  regulatory compliance and key departments such as accounting, employment                  practices and employee benefits, supervision of litigation and                  information                  technology, and goals relating to acquisitions or divestitures                  of                  subsidiaries, affiliates or joint ventures. The targeted level                  or levels                  of performance with respect to such business criteria may be established                  at such levels and in such terms as the Committee may determine,                  in its                  discretion, including, but not limited to, as a goal relative to                  performance in prior periods, or as a goal compared to the performance                  of                  one or more comparable companies or an index covering multiple                  companies. |
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|   | (iii) | *Performance                  Period; Timing for Establishing Performance Goals.*                  Achievement of performance goals in respect of such Performance                  Awards                  shall be measured over a performance period of up to one year or                  more than                  one year, as specified by the Committee. A performance goal may                  be based                  on goals already achieved prior to the Award or on a goal established                  not                  later than the earlier of (A) 90 days after the beginning of any                  performance period applicable to such Performance Award or (B) the                  time 25% of such performance period has                  elapsed. |
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|   | (iv) | *Performance                  Award Pool.*                  The Committee may establish a Performance Award pool, which shall                  be an                  unfunded pool, for purposes of measuring performance of the Company                  in                  connection with Performance Awards. The amount of such Performance                  Award                  pool shall be based upon the achievement of a performance goal                  or goals                  based on one or more of the business criteria set forth in                  Section 7(b)(ii) during the given performance period. The Committee                  may specify the amount of the Performance Award pool as a percentage                  of                  any of such business criteria, a percentage thereof in excess of                  a                  threshold amount, or as another amount which need not bear a strictly                  mathematical relationship to such business                  criteria. |
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|   | (v) | *Settlement                  of Performance Awards; Other Terms*.                  Settlement of such Performance Awards shall be in cash, Stock,                  other                  Awards or other property, in the Committee’s discretion. The Committee may                  increase or reduce the amount of a settlement otherwise to be made                  in                  connection with such Performance Awards, but may not exercise discretion                  to increase any such amount payable to a Covered Employee in respect                  of a                  Performance Award subject to Section 7(b). Any settlement which                  changes the form of payment from that originally specified shall                  be                  implemented in a manner such that the Performance Award and other                  related                  Awards do not, solely for that reason, fail to qualify as                  “performance-based compensation” for purposes of Code Section 162(m).                  The Committee shall specify the circumstances in which such Performance                  Awards shall be paid or forfeited in the event of termination of                  employment by the Participant or other event (including a Change                  in                  Control) prior to the end of a performance period or settlement                  of such                  Performance Awards. |
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|   | (c) | *Annual                  Incentive Awards Granted to Designated Covered Employees.*                  The Committee may grant an Annual Incentive Award to an Eligible                  Person                  who is designated by the Committee as likely to be a Covered Employee.                  Such Annual Incentive Award will be intended to qualify as                  “performance-based compensation” for purposes of Code Section 162(m),                  and therefore its grant, exercise and/or settlement shall be contingent                  upon achievement of pre-established performance goals and other                  terms set                  forth in this Section 7(c). |
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|   | (i) | *Grant                  of Annual Incentive Awards*.                  Not later than the earlier of 90 days after the beginning of any                  performance period applicable to such Annual Incentive Award or                  the time                  25% of such performance period has elapsed, the Committee shall                  determine                  the Covered Employees who will potentially receive Annual Incentive                  Awards, and the amount(s) potentially payable thereunder, for that                  performance period. The amount(s) potentially payable shall be                  based upon                  the achievement of a performance goal or goals based on one or                  more of the                  business criteria set forth in Section 7(b)(ii) in the given                  performance period, as specified by the Committee. The Committee                  may                  designate an annual incentive award pool as the means by which                  Annual                  Incentive Awards will be measured, provided that the portion of                  such pool                  potentially payable to the Covered Employee shall be                  pre-established. |
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|   | (ii) | *Payout                  of Annual Incentive Awards*.                  After the end of each performance period, the Committee shall determine                  the amount, if any, of the Annual Incentive Award for that performance                  period payable to each Participant. The Committee may determine                  that the                  amount payable to any Participant as a final Annual Incentive Award                  shall                  be reduced from the amount of his or her potential Annual Incentive                  Award,                  including a determination to make no final Award whatsoever, but                  may not                  exercise discretion to increase any such amount. The Committee                  shall                  specify the circumstances in which an Annual Incentive Award shall                  be paid                  or forfeited in the event of termination of employment by the Participant                  or other event (including a Change in Control) prior to the end                  of a                  performance period or settlement of such Annual Incentive                  Award. |
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|   | (d) | *Written                  Determinations.*                  Determinations by the Committee as to the establishment of performance                  goals, the amount potentially payable in respect of Performance                  Awards and                  Annual Incentive Awards, the level of actual achievement of the                  specified                  performance goals relating to Performance Awards and Annual Incentive                  Awards, and the amount of any final Performance Award and Annual                  Incentive                  Award shall be recorded in writing in the case of Performance Awards                  intended to qualify under Code Section 162(m). Specifically, the                  Committee                  shall certify in writing, in a manner conforming to applicable                  regulations                  under Code Section 162(m), prior to settlement of each such Award                  granted to a Covered Employee, that the performance objective relating                  to                  the Performance Award and other material terms of the Award upon                  which                  settlement of the Award was conditioned have been                  satisfied. |
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*Certain        Provisions Applicable to Awards.*

|   | (a) | *Stand-Alone,                  Additional, Tandem, and Substitute Awards.*                  Awards granted under the Plan may, in the discretion of the Committee,                  be                  granted either alone or in addition to, in tandem with, or in substitution                  or exchange for, any other Award or any award granted under another                  plan                  of the Company, any subsidiary or affiliate, or any business entity                  to be                  acquired by the Company or a subsidiary or affiliate, or any other                  right                  of a Participant to receive payment from the Company or any subsidiary                  or                  affiliate. Awards granted in addition to or in tandem with other                  Awards or                  awards may be granted either as of the same time as or a different                  time                  from the grant of such other Awards or awards. Subject to                  Section 10(k), the Committee may determine that, in granting a new                  Award, the in-the-money value of any surrendered Award or award                  may be                  applied to reduce the exercise price of any Option or purchase                  price of                  any other Award. |
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|   | (b) | *Term                  of Awards.*                  The term of each Award shall be for such period as may be determined                  by                  the Committee, subject to the express limitations set forth in                  Section 6(b)(ii). |
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|   | (c) | *Form                  and Timing of Payment under Awards; Deferrals*.                  Subject to the terms of the Plan (including Section 10(k)) and any                  applicable Award document, payments to be made by the Company or                  a                  subsidiary or affiliate upon the exercise of an Option or other                  Award or                  settlement of an Award may be made in such forms as the Committee                  shall                  determine, including, without limitation, cash, Stock, other Awards                  or                  other property, and may be made in a single payment or transfer,                  in                  installments, or on a deferred basis. The settlement of any Award                  may be                  accelerated, and cash paid in lieu of Stock in connection with                  such                  settlement, in the Committee’s discretion or upon occurrence of one or                  more specified events (subject to Section 10(k)). Installment or                  deferred payments may be required by the Committee (subject to                  Section 10(e)) or permitted at Participant’s election on terms and                  conditions established by the Committee. Payments may include,                  without                  limitation, provisions for the payment or crediting of reasonable                  interest                  on installment or deferred                  payments. |
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|   | (d) | *Exemptions                  from Section 16(b) Liability.*With                  respect to a Participant who is then subject to the reporting requirements                  of Section 16(a) of the Exchange Act in respect of the Company, the                  Committee shall implement transactions under the Plan and administer                  the                  Plan in a manner that will ensure that each transaction with respect                  to                  such a Participant is exempt from liability under Rule 16b-3 (or                  otherwise not subject to liability under Section 16(b)), except that                  this provision shall not limit sales by such a Participant, and                  such a                  Participant may engage in other non-exempt transactions under the                  Plan.                  The Committee may authorize the Company to repurchase any Award                  or shares                  of Stock deliverable or delivered in connection with any Award                  (subject to                  Section 10(k)) to avoid a Participant who is subject to                  Section 16 of the Exchange Act incurring liability under                  Section 16(b). Unless otherwise specified by the Participant, equity                  securities or derivative securities acquired under the Plan which                  are                  disposed of by a Participant shall be deemed to be disposed of                  in the                  order acquired by the Participant. |
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|   | (e) | *Loan                  Provisions*.                  With the Committee’s consent, and subject at all times to, and only to the                  extent, if any, permitted under and in accordance with, laws and                  regulations and other binding obligations or provisions applicable                  to the                  Company, the Company may make, guarantee, or arrange for a loan                  or loans                  to a Participant with respect to the exercise of any Option or                  other                  payment in connection with any Award, including the payment by                  a                  Participant of any or all federal, state, or local income or other                  taxes                  due in connection with any Award. Subject to such limitations,                  the                  Committee shall have full authority to decide whether to make a                  loan or                  loans hereunder and to determine the amount, terms, and provisions                  of any                  such loan or loans, including the interest rate, if any, to be                  charged in                  respect of any such loan or loans, whether the loan or loans are                  to be                  with or without recourse against the borrower, the terms on which                  the loan                  is to be repaid and conditions, if any, under which the loan or                  loans may                  be forgiven. |
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*Change        in Control.*

|   | (a) | *Effect                  of “Change in Control” on Non-Performance Based Awards*.                  The Committee may provide in the Award document, in the event of                  a “Change                  in Control,” the following provisions shall apply to non-performance based                  Awards, including Awards as to which performance conditions previously                  have been satisfied or are deemed satisfied under                  Section 9(b): |
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|   | (i) | All                  deferral of settlement, forfeiture conditions and other restrictions                  applicable to Awards granted under the Plan shall lapse and such                  Awards                  shall be fully payable as of the time of the Change in Control                  without                  regard to deferral and vesting conditions, except to the extent                  of any                  waiver by the Participant or other express election to defer beyond                  a                  Change in Control and subject to applicable restrictions set forth                  in                  Section 10(a); |
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|   | (ii) | Any                  Award carrying a right to exercise that was not previously exercisable                  and                  vested shall become fully exercisable and vested as of the time                  of the                  Change in Control and shall remain exercisable and vested for the                  balance                  of the stated term of such Award without regard to any termination                  of                  employment or service by the Participant other than a termination                  for                  “cause” (as defined in any employment or severance agreement between the                  Company or a subsidiary or affiliate and the Participant then in                  effect                  or, if none, as defined by the Committee and in effect at the time                  of the                  Change in Control), subject only to applicable restrictions set                  forth in                  Section 10(a); and |
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|  | (iii) | The                  Committee may, in its discretion, determine to extend to any Participant                  who holds an Option the right to elect, during the 60-day period                  immediately following the Change in Control, in lieu of acquiring                  the                  shares of Stock covered by such Option, to receive in cash the                  excess of                  the Change in Control Price over the exercise price of such Option,                  multiplied by the number of shares of Stock covered by such Option,                  and to                  extend to any Participant who holds other types of Awards denominated                  in                  shares the right to elect, during the 60-day period immediately                  following                  the Change in Control, in lieu of receiving the shares of Stock                  covered by                  such Award, to receive in cash the Change in Control Price multiplied                  by                  the number of shares of Stock covered by such                  Award. |
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|   | (b) | *Effect                  of “Change in Control” on Performance-Based Awards*.                  In the event of a “Change in Control,” with respect to an outstanding                  Award subject to achievement of performance goals and conditions,                  such                  performance goals and conditions will be deemed to be met if and                  to the                  extent so provided by the Committee in the Award document governing                  such                  Award or other agreement with the                  Participant. |
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|   | (c) | *Definition                  of “Change in Control.”*                  A                  “Change in Control” shall be deemed to have occurred if, after the                  Effective Date, there shall have occurred any of the following: |
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|  | (i) | any                  Person (other than the Company), any trustee or other fiduciary                  holding                  securities under any employee benefit plan of the Company, or any                  company                  owned, directly or indirectly, by the stockholders of the Company                  immediately prior to the occurrence with respect to which the evaluation                  is being made in substantially the same proportions as their ownership                  of                  the common stock of the Company) becomes the Beneficial Owner (except                  that                  a Person shall be deemed to be the Beneficial Owner of all shares                  that any                  such Person has the right to acquire pursuant to any agreement                  or                  arrangement or upon exercise of conversion rights, warrants or                  options or                  otherwise, without regard to the sixty day period referred to in                  Rule 13d-3 under the Exchange Act), directly or indirectly, of                  securities of the Company or any Significant Subsidiary (as defined                  below), representing 30% of the combined voting power of the Company’s or                  such subsidiary’s then outstanding securities; |
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|   | (ii) | during                  any period of two consecutive years, individuals who at the beginning                  of                  such period constitute the Board, and any new director (other than                  a                  director designated by a person who has entered into an agreement                  with the                  Company to effect a transaction described in clause (i), (iii),                  or                  (iv) of this paragraph) whose election by the Board or nomination for                  election by the Company’s stockholders was approved by a vote of at least                  two-thirds of the directors then still in office who either were                  directors                  at the beginning of the two-year period or whose election or nomination                  for election was previously so approved but excluding for this                  purpose any                  such new director whose initial assumption of office occurs as                  a result of                  either an actual or threatened election contest (as such terms                  are used in                  Rule 14a-11 of Regulation 14A promulgated under the Exchange                  Act) or other actual or threatened solicitation of proxies or consents                  by                  or on behalf of an individual, corporation, partnership, group,                  associate                  or other entity or Person other than the Board, cease for any reason                  to                  constitute at least a majority of the Board; |
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|   | (iii) | the                  consummation of a merger or consolidation of the Company or any                  subsidiary                  owning directly or indirectly all or substantially all of the consolidated                  assets of the Company (a “Significant Subsidiary”) with any other entity,                  other than a merger or consolidation which would result in the                  voting                  securities of the Company or a Significant Subsidiary outstanding                  immediately prior thereto continuing to represent (either by remaining                  outstanding or by being converted into voting securities of the                  surviving                  or  resulting entity) more than 50% of the combined voting power of                  the surviving or resulting entity outstanding immediately after                  such                  merger or consolidation; or |
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|   | (iv) | the                  stockholders of the Company approve a plan or agreement for the                  sale or                  disposition of all or substantially all of the consolidated assets                  of the                  Company (other than such a sale or disposition immediately after                  which                  such assets will be owned directly or indirectly by the Company’s                  stockholders in substantially the same proportions as their ownership                  of                  the Company’s common stock immediately prior to such sale or disposition)                  in which case the Board shall determine the effective date of the                  Change                  in Control resulting therefrom. |
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|   | (A) | The                  term “Beneficial Owner” shall have the meaning ascribed to such term in                  Rule 13d-3 under the Exchange Act (including any successor to such                  Rule). |
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|   | (B) | The                  term “Person” shall have the meaning ascribed to such term in                  Section 3(a)(9) of the Exchange Act and used in Sections 13(d)                  and 14(d) thereof, including “group” as defined in Section 13(d)                  thereof. |
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|   | (d) | *Definition                  of “Change in Control Price.”*                  The “Change in Control Price” means an amount in cash equal to the higher                  of (i) the amount of cash and fair market value of property that is                  the highest price per share paid (including extraordinary dividends)                  in                  any transaction triggering the Change in Control or any liquidation                  of                  shares following a sale of substantially all assets of the Company,                  or                  (ii) the highest Fair Market Value per share at any time during the                  60-day period preceding and 60-day period following the Change                  in Control. |
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*General        Provisions*

|   | (a) | *Compliance                  with Legal and Other Requirements.*                  The Company may, to the extent deemed necessary or advisable by                  the                  Committee, postpone the issuance or delivery of Stock or payment                  of other                  benefits under any Award until completion of such registration                  or                  qualification of such Stock or other required action under any                  federal or                  state law, rule or regulation, listing or other required action                  with                  respect to any stock exchange or automated quotation system upon                  which the                  Stock or other securities of the Company are listed or quoted,                  or                  compliance with any other obligation of the Company, as the Committee                  may                  consider appropriate, and may require any Participant to make such                  representations, furnish such information and comply with or be                  subject to                  such other conditions as it may consider appropriate in connection                  with                  the issuance or delivery of Stock or payment of other benefits                  in                  compliance with applicable laws, rules, and regulations, listing                  requirements, or other obligations. |
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|   | (b) | *Limits                  on Transferability; Beneficiaries.*                  No                  Award or other right or interest of a Participant under the Plan                  shall be                  pledged, hypothecated or otherwise encumbered or subject to any                  lien,                  obligation or liability of such Participant to any party (other                  than the                  Company or a subsidiary or affiliate thereof), or assigned or transferred                  by such Participant otherwise than by will or the laws of descent                  and                  distribution or to a Beneficiary upon the death of a Participant,                  and such                  Awards or rights that may be exercisable shall be exercised during                  the                  lifetime of the Participant only by the Participant or his or her                  guardian                  or legal representative, except that Awards and other rights (other                  than                  ISOs) may be transferred to one or more transferees during the                  lifetime of                  the Participant, and may be exercised by such transferees in accordance                  with the terms of such Award, but only if and to the extent such                  transfers                  are permitted by the Committee, subject to any terms and conditions                  which                  the Committee may impose thereon (including limitations the Committee                  may                  deem appropriate in order that offers and sales under the Plan                  will meet                  applicable requirements of registration forms under the Securities                  Act of                  1933 specified by the Securities and Exchange Commission). A Beneficiary,                  transferee, or other person claiming any rights under the Plan                  from or                  through any Participant shall be subject to all terms and conditions                  of                  the Plan and any Award document applicable to such Participant,                  except as                  otherwise determined by the Committee, and to any additional terms                  and                  conditions deemed necessary or appropriate by the Committee. |
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|   | (c) | *Adjustments.*                  In                  the event that any large, special and non-recurring dividend or                  other                  distribution (whether in the form of cash or property other than                  Stock),                  recapitalization, forward or reverse split, Stock dividend,                  reorganization, merger, consolidation, spin-off, combination, repurchase,                  share exchange, liquidation, dissolution or other similar corporate                  transaction or event affects the Stock such that an adjustment                  is                  determined by the Committee to be appropriate under the Plan, then                  the                  Committee shall, in such manner as it may deem equitable, adjust                  any or                  all of (i) the number and kind of shares of Stock which may be                  delivered in connection with Awards granted thereafter, (ii) the                  number and kind of shares of Stock by which annual per-person Award                  limitations are measured under Section 5, (iii) the number and                  kind of shares of Stock subject to or deliverable in respect of                  outstanding Awards and (iv) the exercise price, grant price or                  purchase price relating to any Award or, if deemed appropriate,                  the                  Committee may make provision for a payment of cash or property                  to the                  holder of an outstanding Option (subject to Section 10(k)). In                  addition, the Committee is authorized to make adjustments in the                  terms and                  conditions of, and the criteria included in, Awards (including                  Performance                  Awards and performance goals and any hypothetical funding pool                  relating                  thereto) in recognition of unusual or nonrecurring events (including,                  without limitation, events described in the preceding sentence,                  as well as                  acquisitions and dispositions of businesses and assets) affecting                  the                  Company, any subsidiary or affiliate or other business unit, or                  the                  financial statements of the Company or any subsidiary or affiliate,                  or in                  response to changes in applicable laws, regulations, accounting                  principles, tax rates and regulations or business conditions or                  in view of                  the Committee’s assessment of the business strategy of the Company, any                  subsidiary or affiliate or business unit thereof, performance of                  comparable organizations, economic and business conditions, personal                  performance of a Participant, and any other circumstances deemed                  relevant;                  provided that no such adjustment shall be authorized or made if                  and to the                  extent that the existence of such authority (i) would cause Options                  or Performance Awards granted under Section 7 to Participants                  designated by the Committee as Covered Employees and intended to                  qualify                  as “performance-based compensation” under Code Section 162(m) and                  regulations thereunder to otherwise fail to qualify as “performance-based                  compensation” under Code Section 162(m) and regulations thereunder,                  or (ii) would cause the Committee to be deemed to have authority to                  change the targets, within the meaning of Treasury                  Regulation 1.162-27(e)(4)(vi), under the performance goals relating                  to Options granted to Covered Employees and intended to qualify                  as                  “performance-based compensation” under Code Section 162(m) and                  regulations thereunder. |
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*Tax        Provisions.*

|   | (i) | *Withholding.*                  The Company and any subsidiary or affiliate is authorized to withhold                  from                  any Award granted, any payment relating to an Award under the Plan,                  including from a distribution of Stock, or any payroll or other                  payment to                  a Participant, amounts of withholding and other taxes due or potentially                  payable in connection with any transaction involving an Award,                  and to take                  such other action as the Committee may deem advisable to enable                  the                  Company and Participants to satisfy obligations for the payment                  of                  withholding taxes and other tax obligations relating to any Award.                  This                  authority shall include authority to withhold or receive Stock                  or other                  property and to make cash payments in respect thereof in satisfaction                  of a                  Participant’s withholding obligations, either on a mandatory or elective                  basis in the discretion of the Committee. Other provisions of the                  Plan                  notwithstanding, only the minimum amount of Stock deliverable in                  connection with an Award necessary to satisfy statutory withholding                  requirements will be withheld. |
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|   | (ii) | *Requirement                  of Notification of Code Section 83(b) Election.*                  If                  any Participant shall make an election under Section 83(b) of the                  Code (to include in gross income in the year of transfer the amounts                  specified in Code Section 83(b)) or under a similar provision of the                  laws of a jurisdiction outside the United States, such Participant                  shall                  notify the Company of such election within ten days of filing notice                  of                  the election with the Internal Revenue Service or other governmental                  authority, in addition to any filing and notification required                  pursuant to                  regulations issued under Code Section 83(b) or other applicable                  provision. |
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|   | (iii) | *Requirement                  of Notification Upon Disqualifying Disposition Under Code                  Section 421(b).*                  If                  any Participant shall make any disposition of shares of Stock delivered                  pursuant to the exercise of an Incentive Stock Option under the                  circumstances described in Code Section 421(b) (relating to certain                  disqualifying dispositions), such Participant shall notify the                  Company of                  such disposition within ten days thereof. |
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|   | (e) | *Changes                  to the Plan.*                  The Board may amend, suspend or terminate the Plan or the Committee’s                  authority to grant Awards under the Plan without the consent of                  stockholders or Participants; provided, however, that any amendment                  to the                  Plan shall be submitted to the Company’s stockholders for approval not                  later than the earliest annual meeting for which the record date                  is after                  the date of such Board action if such stockholder approval is required                  by                  any federal or state law or regulation or the rules of any stock                  exchange                  or automated quotation system on which the Stock may then be listed                  or                  quoted, and the Board may otherwise, in its discretion, determine                  to                  submit other amendments to the Plan to stockholders for approval;                  and                  provided further, that, without the consent of an affected Participant,                  no                  such Board action may have a material adverse affect on the rights                  of such                  Participant under any outstanding Award. |
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|   | (f) | *Right                  of Setoff.*                  The Company or any subsidiary or affiliate may, to the extent permitted                  by                  applicable law, deduct from and set off against any amounts the                  Company or                  a subsidiary or affiliate may owe to the Participant from time                  to time,                  including amounts payable in connection with any Award, owed as                  wages,                  fringe benefits, or other compensation owed to the Participant,                  such                  amounts as may be owed by the Participant to the Company, although                  the                  Participant shall remain liable for any part of the Participant’s payment                  obligation not satisfied through such deduction and setoff. By                  accepting                  any Award granted hereunder, the Participant agrees to any deduction                  or                  setoff under this                  Section 10(f). |
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|   | (g) | *Unfunded                  Status of Awards; Creation of Trusts.*                  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 obligation to deliver Stock pursuant to an Award,                  nothing                  contained in the Plan or any Award shall give any such Participant                  any                  rights that are greater than those of a general creditor of the                  Company;                  provided that the Committee may authorize the creation of trusts                  and                  deposit therein cash, Stock, other Awards or other property, or                  make other                  arrangements to meet the Company’s obligations under the Plan. Such trusts                  or other arrangements shall be consistent with the “unfunded” status of                  the Plan unless the Committee otherwise determines with the consent                  of                  each affected Participant. |
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|   | (h) | *Nonexclusivity                  of the Plan.*                  Neither the adoption of the Plan by the Board nor its submission                  to the                  stockholders of the Company for approval shall be construed as                  creating                  any limitations on the power of the Board or a committee thereof                  to adopt                  such other incentive arrangements, apart from the Plan, as it may                  deem                  desirable, including incentive arrangements and awards which do                  not                  qualify under Code Section 162(m), and such other arrangements may be                  either applicable generally or only in specific cases. |
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|   | (i) | *Payments                  in the Event of Forfeitures; Fractional Shares.*                  No                  fractional shares of Stock shall be issued or delivered pursuant                  to the                  Plan or any Award. The Committee shall determine whether cash,                  other                  Awards or other property shall be issued or paid in lieu of such                  fractional shares or whether such fractional shares or any rights                  thereto                  shall be forfeited or otherwise                  eliminated. |
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|   | (j) | *Compliance                  with Code Section 162(m)*.                  It is the intent of the Company that Options granted to Covered                  Employees                  and other Awards designated as Awards to Covered Employees subject                  to                  Section 7 shall constitute qualified “performance-based compensation”                  within the meaning of Code Section 162(m) and regulations thereunder,                  unless otherwise determined by the Committee at the time of allocation                  of                  an Award. |
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|   | (k) | C*ertain                  Limitations Relating to Accounting Treatment of Awards.*                  Other provisions of the Plan notwithstanding, the Committee’s authority                  under the Plan is limited to the extent necessary to ensure that                  any                  Option or other Award of a type that the Committee has intended                  to be                  subject to fixed accounting with a measurement date at the date                  of grant                  or the date performance conditions are satisfied under APB 25 shall                  not                  become subject to “variable” accounting solely due to the existence of                  such authority, unless the Committee specifically determines that                  the                  Award shall remain outstanding despite such “variable”                  accounting. |
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|   | (l) | *Governing                  Law.*                  The validity, construction, and effect of the Plan, any rules and                  regulations relating to the Plan and any Award document shall be                  determined in accordance with the laws of the State of Delaware,                  without                  giving effect to principles of conflicts of laws, and applicable                  provisions of federal law. |
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|   | (m) | *Awards                  to Participants Outside the United States*.                  The Committee may modify the terms of any Award under the Plan                  made to or                  held by a Participant who is then resident or primarily employed                  outside                  of the United States in any manner deemed by the Committee to be                  necessary                  or appropriate in order that such Award shall conform to laws,                  regulations, and customs of the country in which the Participant                  is then                  resident or primarily employed, or so that the value and other                  benefits of                  the Award to the Participant, as affected by foreign tax laws and                  other                  restrictions applicable as a result of the Participant’s residence or                  employment abroad, shall be comparable to the value of such an                  Award to a                  Participant who is resident or primarily employed in the United                  States. An                  Award may be modified under this Section 10(m) in a manner that is                  inconsistent with the express terms of the Plan, so long as such                  modifications will not contravene any applicable law or regulation                  or                  result in actual liability under Section 16(b) of the Exchange Act                  for the Participant whose Award is modified. |
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|   | (n) | *Limitation                  on Rights Conferred under Plan.*Neither                  the Plan nor any action taken hereunder shall be construed as                  (i) giving any Eligible Person or Participant the right to continue                  as an Eligible Person or Participant or in the employ or service                  of the                  Company or a subsidiary or affiliate, (ii) interfering in any way                  with the right of the Company or a subsidiary or affiliate to terminate                  any Eligible Person’s or Participant’s employment or service at any time,                  (iii) giving an Eligible Person or Participant any claim to be                  granted any Award under the Plan or to be treated uniformly with                  other                  Participants and employees, or (iv) conferring on a Participant any                  of the rights of a stockholder of the Company unless and until                  the                  Participant is duly issued or transferred shares of Stock in accordance                  with the terms of an Award or an Option is duly exercised. Except                  as                  expressly provided in the Plan and an Award document, neither the                  Plan nor                  any Award document shall confer on any person other than the Company                  and                  the Participant any rights or remedies thereunder. |
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|   | (o) | *Severability;                  Entire Agreement.*                  If                  any of the provisions of this Plan or any Award document is finally                  held                  to be invalid, illegal or unenforceable (whether in whole or in                  part),                  such provision shall be deemed modified to the extent, but only                  to the                  extent, of such invalidity, illegality or unenforceability, and                  the                  remaining provisions shall not be affected thereby; provided, that,                  if any                  of such provisions is finally held to be invalid, illegal, or                  unenforceable because it exceeds the maximum scope determined to                  be                  acceptable to permit such provision to be enforceable, such provision                  shall be deemed to be modified to the minimum extent necessary                  to modify                  such scope in order to make such provision enforceable hereunder.                  The Plan                  and any Award documents contain the entire agreement of the parties                  with                  respect to the subject matter thereof and supersede all prior agreements,                  promises, covenants, arrangements, communications, representations                  and                  warranties between them, whether written or oral with respect to                  the                  subject matter thereof. |
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|   | (p) | *Plan                  Effective Date and Termination.*                  The Plan shall become effective if, and at such time as, it is                  adopted by                  the Board and the Board recommends approval of the Plan at the                  next                  meeting of the Company’s stockholders. Unless earlier terminated by action                  of the Board, the Plan will remain in effect until such time as                  no Stock                  remains available for delivery under the Plan and the Company has                  no                  further rights or obligations under the Plan with respect to outstanding                  Awards under the Plan. |
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|   | (q) | *Repricing.*                  No                  award that could be characterized as a “repricing” shall be made pursuant                  to this Plan without shareholder                  approval. |
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