EXHIBIT 10.1

APRIA HEALTHCARE GROUP
INC.

2003 PERFORMANCE
INCENTIVE PLAN

1.    
     PURPOSE OF PLAN

| | The
purpose of the Apria Healthcare Group Inc. 2003 Performance Incentive Plan (this
Plan) is to promote the success of the Corporation and to increase stockholder
value by providing an additional means through the grant of awards to attract, motivate,
retain and reward selected employees and other eligible persons of the Company and to
attract, motivate and retain experienced and knowledgeable independent Directors. As used
herein, Corporationmeans Apria Healthcare Group Inc., a Delaware corporation;
Subsidiarymeans any corporation or other entity a majority of whose
outstanding voting stock or voting power is beneficially owned directly or indirectly by
the Corporation; and Companymeans the Corporation and its Subsidiaries,
collectively.
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2.   
       ELIGIBILITY

| | The
Administrator (as such term is defined in Section 3.1) may grant awards under this Plan
only to those persons that the Administrator determines to be Eligible Persons. An
Eligible Personis any person who is either: (a) an officer (whether or not a
Director) or employee of the Company; (b) a Director of the Company; or (c) an individual
consultant or advisor who renders or has rendered bona fide services (other than services
in connection with the offering or sale of securities of the Company in a capital-raising
transaction or as a market maker or promoter of the Companys securities) to the
Company and who is selected to participate in this Plan by the Administrator; provided,
however, that a person who is otherwise an Eligible Person under clause (c) above may
participate in this Plan only if such participation would not adversely affect either the
Corporations eligibility to use Form S-8 to register under the Securities Act of
1933, as amended (the Securities Act), the offering and sale of shares
issuable under this Plan by the Company or the Corporations compliance with any
other applicable laws. An Eligible Person who has been granted an award (a
participant) may, if otherwise eligible, be granted additional awards if the
Administrator shall so determine.
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3.    
     PLAN ADMINISTRATION

| | 3.1 | The Administrator.This Plan shall be administered by and all awards under this Plan shall
be authorized by the Administrator. The Administratormeans the Board of
Directors of the Corporation (the Board) or one or more committees appointed
by the Board or another committee (within its delegated authority) to administer all or
certain aspects of this Plan. Any such committee shall be comprised solely of one or more
Directors or such number of Directors as may be required under applicable law. A committee
may delegate some or all of its authority to another committee so constituted. The Board
or a committee comprised solely of Directors may also delegate, to the extent permitted by
Section 157(c) of the Delaware General Corporation Law and any other applicable law, to
one or more officers of the Corporation, its powers under this Plan (a) to designate the
officers and employees of the Company who will receive grants of rights or options to
purchase shares of Common Stock (as defined in Section 4.1), and (b) to determine the
number of rights or options to be received by them, pursuant to a resolution that
specifies the total number of rights or options that may be granted under the delegation,
provided that no officer may be delegated the power to designate himself or herself as a
recipient of such options or rights. The Board may delegate different levels of authority
to different committees with administrative and grant authority under this Plan. Unless
otherwise provided in the Bylaws of the Corporation or the applicable charter of any
Administrator: (a) a majority of the members of the acting Administrator shall constitute
a quorum, and (b) the vote of a majority of the members present assuming the presence of a
quorum or the unanimous written consent of the members of the Administrator shall
constitute action by the acting Administrator.
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| | With
respect to awards intended to satisfy the requirements for performance-based compensation
under Section 162(m) of the Internal Revenue Code of 1986, as amended (the
Code), this Plan shall be administered by a committee consisting solely of two
or more outside Directors (as this requirement is applied under Section 162(m) of the
Code); provided, however, that the failure to satisfy such requirement shall not affect
the validity of the action of any committee otherwise duly authorized and acting in the
matter. Award grants, and transactions in or involving awards, intended to be exempt under
Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the Exchange
Act), must be duly and timely authorized by the Board or a committee consisting
solely of two or more non-employee Directors (as this requirement is applied under Rule
16b-3 promulgated under the Exchange Act). To the extent required by any applicable
listing agency, this Plan shall be administered by a committee composed entirely of
independent Directors (within the meaning of the applicable listing agency).
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| | 3.2 | Powers of the Administrator.Subject to the express provisions of this Plan, the
Administrator is authorized and empowered to do all things necessary or desirable in
connection with the authorization of awards and the administration of this Plan (in the
case of a committee or delegation to one or more officers, within the authority delegated
to that committee or person(s)), including, without limitation, the authority to:
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|(a) |  | determine eligibility and, from among those persons determined to be eligible,
               the particular Eligible Persons who will receive an award under this Plan;
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|(b) |  | grant awards to Eligible Persons, determine the price at which securities will
               be offered or awarded and the number of securities to be offered or awarded to
               any of such persons, determine the other specific terms and conditions of such
               awards consistent with the express limits of this Plan, establish the
               installments (if any) in which such awards shall become exercisable or shall
               vest (which may include, without limitation, performance and/or time-based
               schedules), or determine that no delayed exercisability or vesting is required,
               establish any applicable performance targets, and establish the events of
               termination or reversion of such awards;
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|(c) |  | approve the forms of award agreements (which need not be identical either as to
               type of award or among participants);
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|(d) |  | construe and interpret this Plan and any agreements defining the rights and
               obligations of the Company and participants under this Plan, further define the
               terms used in this Plan, and prescribe, amend and rescind rules and regulations
               relating to the administration of this Plan or the awards granted under this
               Plan;
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|(e) |  | cancel, modify, or waive the Corporations rights with respect to, or
               modify, discontinue, suspend, or terminate any or all outstanding awards,
               subject to any required consent under Section 8.6.5;
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|(f) |  | accelerate or extend the vesting or exercisability or extend the term of any or
               all such outstanding awards (in the case of options or stock appreciation
               rights, within the maximum ten-year term of such awards) in such circumstances
               as the Administrator may deem appropriate (including, without limitation, in
               connection with a termination of employment or services or other events of a
               personal nature) subject to any required consent under Section 8.6.5;
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|(g) |  | adjust the number of shares of Common Stock subject to any award, adjust the
               price of any or all outstanding awards or otherwise change previously imposed
               terms and conditions, in such circumstances as the Administrator may deem
               appropriate, in each case subject to Sections 4 and 8.6, and provided that in no
               case (except due to an adjustment contemplated by Section 7 or any repricing
               that may be approved by stockholders) shall such an adjustment constitute a
               repricing (by amendment, cancellation and regrant, exchange or other means) of
               the per share exercise or base price of any option or stock appreciation right
               to a price that is less than the fair market value of a share (as adjusted
               pursuant to Section 7) on the date of the grant of the initial award;
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|(h) |  | determine the date of grant of an award, which may be a designated date after
               but not before the date of the Administrators action (unless otherwise
               designated by the Administrator, the date of grant of an award shall be the date
               upon which the Administrator took the action granting an award);
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|(i) |  | determine whether, and the extent to which, adjustments are required pursuant to
               Section 7 hereof and authorize the termination, conversion, substitution or
               succession of awards upon the occurrence of an event of the type described in
               Section 7;
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|(j) |  | acquire or settle (subject to Sections 7 and 8.6) rights under awards in cash,
               stock of equivalent value, or other consideration; and
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|(k) |  | determine the fair market value of the Common Stock or awards under this Plan
               from time to time and/or the manner in which such value will be determined.
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| | 3.3 | Binding Determinations.Any action taken by, or inaction of, the Corporation, any
Subsidiary, or the Administrator relating or pursuant to this Plan and within its
authority hereunder or under applicable law shall be within the absolute discretion of
that entity or body and shall be conclusive and binding upon all persons. Neither the
Board nor any Board committee, nor any member thereof or person acting at the direction
thereof, shall be liable for any act, omission, interpretation, construction or
determination made in good faith in connection with this Plan (or any award made under
this Plan), and all such persons shall be entitled to indemnification and reimbursement by
the Company in respect of any claim, loss, damage or expense (including, without
limitation, attorneys fees) arising or resulting therefrom to the fullest extent
permitted by law and/or under any Directors and officers liability insurance coverage that
may be in effect from time to time.
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| | 3.4 | Reliance on Experts.In making any determination or in taking or not taking any action
under this Plan, the Board or a committee, as the case may be, may obtain and may rely
upon the advice of experts, including employees and professional advisors to the
Corporation. No Director, officer or agent of the Company shall be liable for any such
action or determination taken or made or omitted in good faith.
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| | 3.5 | Delegation.The Administrator may delegate ministerial, non-discretionary functions to
individuals who are officers or employees of the Company or to third parties.
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4.    
      SHARES OF COMMON STOCK SUBJECT TO THE PLAN; SHARE LIMITS

| | 4.1 | Shares Available.Subject to the provisions of Section 7.1, the capital stock that may be
delivered under this Plan shall be shares of the Corporations authorized but
unissued Common Stock and any shares of its Common Stock held as treasury shares. For
purposes of this Plan, Common Stockshall mean the common stock of the
Corporation and such other securities or property as may become the subject of awards
under this Plan, or may become subject to such awards, pursuant to an adjustment made
under Section 7.1.
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| | 4.2 | Share Limits.The maximum number of shares of Common Stock that may be delivered pursuant
to awards granted to Eligible Persons under this Plan (the Share Limit) is
equal to the sum of (a) 6,500,000shares, plus (b) the number of any shares subject to
stock options granted under the Corporations 1997 Stock Incentive Plan (the
1997 Plan) which expire, or for any reason are cancelled or terminated, after
the Effective Date (as defined in Section 8.6.1) without being exercised, plus (c) the
number of any shares subject to stock options granted under the Corporations 1998
Nonqualified Stock Incentive Plan (the 1998 Plan) which expire, or for any
reason are cancelled or terminated, after the Effective Date (as defined in Section 8.6.1)
without being exercised. The following limits also apply with respect to awards granted
under this Plan:
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|(a) |  | The maximum number of shares of Common Stock that may be delivered pursuant to
options qualified as incentive stock options granted under this Plan is
2,000,000shares.
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|(b) |  | The maximum number of shares of Common Stock subject to those options and stock
appreciation rights that are granted during any calendar year to any individual
under this Plan is 500,000shares.
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|(c) |  | The maximum number of shares of Common Stock subject to all awards that are
granted during any calendar year to any individual under this Plan is 1,000,000shares.
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|(d) |  | The maximum number of shares of Common Stock that may be delivered pursuant to
awards granted to non-employee Directors is 700,000shares. This limit does not
apply, however, to shares delivered in respect of compensation earned but
deferred. For this purpose, a non-employee Director is a member of
the Board who is not an officer or employee of the Company.
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|(e) |  | The maximum number of shares of Common Stock that may be delivered pursuant to
awards granted under this Plan, other than pursuant to stock option and stock
appreciation right grants, is 2,275,000shares. This limit does not apply,
however, to shares delivered in respect of compensation earned but deferred.
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|(f) |  | Additional limits with respect to Performance-Based Awards are set forth in
               Section 5.2.3.
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| | Each
of the foregoing numerical limits is subject to adjustment as contemplated by Section 4.3,
Section 7.1, and Section 8.10.
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| | 4.3 | Awards Settled in Cash, Reissue of Awards and Shares.To the extent that an award is
settled in cash or a form other than shares of Common Stock, the shares that would have
been delivered had there been no such cash or other settlement shall not be counted
against the shares available for issuance under this Plan. In the event that shares are
delivered in respect of a dividend equivalent, stock appreciation right, or other award,
only the actual number of shares delivered with respect to the award shall be counted
against the share limits of this Plan. Shares that are subject to or underlie awards which
expire or for any reason are cancelled or terminated, are forfeited, fail to vest, or for
any other reason are not paid or delivered under this Plan shall again be available for
subsequent awards under this Plan. Shares that are exchanged by a participant or withheld
by the Corporation as full or partial payment in connection with any award under this
Plan, the 1997 Plan, or the 1998 Plan (with respect to such a payment in connection with
any award under the 1997 Plan or the 1998 Plan, only to the extent such transaction occurs
after the Effective Date), as well as any shares exchanged by a participant or withheld by
the Company to satisfy the tax withholding obligations related to any award under this
Plan, the 1997 Plan, or the 1998 Plan (with respect to such an exchange or withholding in
connection with any award under the 1997 Plan or the 1998 Plan, only to the extent such
transaction occurs after the Effective Date), shall be available for subsequent awards
under this Plan. Refer to Section 8.10 for application of the foregoing share limits with
respect to assumed awards. The foregoing adjustments to the share limits of this Plan are
subject to any applicable limitations under Section 162(m) of the Code with respect to
awards intended as performance-based compensation thereunder.
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| | 4.4 | Reservation of Shares;
No Fractional Shares; Minimum Issue.The Corporation shall at all
times reserve a number of shares of Common Stock sufficient to cover the
Corporations obligations and contingent obligations to deliver shares with respect
to awards then outstanding under this Plan (exclusive of any dividend equivalent
obligations to the extent the Corporation has the right to settle such rights in cash). No
fractional shares shall be delivered under this Plan. The Administrator may pay cash in
lieu of any fractional shares in settlements of awards under this Plan. No fewer than 100
shares may be purchased on exercise of any award (or, in the case of stock appreciation or
purchase rights, no fewer than 100 rights may be exercised at any one time) unless the
total number purchased or exercised is the total number at the time available for purchase
or exercise under the award.
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5.
         AWARDS

| | 5.1 | Type and Form of Awards.The Administrator shall determine the type or types of award(s)
to be made to each selected Eligible Person. Awards may be granted singly, in combination
or in tandem. Awards also may be made in combination or in tandem with, in replacement of,
as alternatives to, or as the payment form for grants or rights under any other employee
or compensation plan of the Company. The types of awards that may be granted under this
Plan are:
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| | 5.1.1     Stock Options.A stock option is the grant of a right to purchase a specified number of
shares of Common Stock during a specified period as determined by the Administrator. An
option may be intended as an incentive stock option within the meaning of Section 422 of
the Code (an ISO) or a nonqualified stock option (an option not intended to be
an ISO). The award agreement for an option will indicate if the option is intended as an
ISO, otherwise it will be deemed to be a nonqualified stock option. The maximum term of
each option (ISO or nonqualified) shall be ten (10) years. The per share exercise price
for each option shall be not less than 100% of the fair market value of a share of Common
Stock on the date of grant of the option, except as follows: (a) in the case of a stock
option granted retroactively in tandem with or as a substitution for another award, the
per share exercise price may be no lower than the fair market value of a share of Common
Stock on the date such other award was granted (to the extent consistent with Sections 422
and 424 of the Code in the case of options intended as incentive stock options); and (b)
in any other circumstances, a nonqualified stock option may be granted with a per share
exercise price that is less than the fair market value of a share of Common Stock on the
date of grant, provided that any shares delivered in respect of such option shall be
charged against the limit of Section 4.2(e) (the limit on full-value awards) as well as
any other applicable limit under Section 4.2. When an option is exercised, the exercise
price for the shares to be purchased shall be paid in full in cash or such other method
permitted by the Administrator consistent with Section 5.5.
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| | 5.1.2    Additional Rules Applicable to ISOs. To the extent that the aggregate fair market value
(determined at the time of grant of the applicable option) of stock with respect to which
ISOs first become exercisable by a participant in any calendar year exceeds $100,000,
taking into account both Common Stock subject to ISOs under this Plan and stock subject to
ISOs under all other plans of the Company (or any parent or predecessor corporation to the
extent required by and within the meaning of Section 422 of the Code and the regulations
promulgated thereunder), such options shall be treated as nonqualified stock options. In
reducing the number of options treated as ISOs to meet the $100,000 limit, the most
recently granted options shall be reduced first. To the extent a reduction of
simultaneously granted options is necessary to meet the $100,000 limit, the Administrator
may, in the manner and to the extent permitted by law, designate which shares of Common
Stock are to be treated as shares acquired pursuant to the exercise of an ISO. ISOs may
only be granted to employees of the Corporation or one of its subsidiaries (for this
purpose, the term subsidiary is used as defined in Section 424(f) of the Code,
which generally requires an unbroken chain of ownership of at least 50% of the total
combined voting power of all classes of stock of each subsidiary in the chain beginning
with the Corporation and ending with the subsidiary in question). There shall be imposed
in any award agreement relating to ISOs such other terms and conditions as from time to
time are required in order that the option be an incentive stock option as
that term is defined in Section 422 of the Code. No ISO may be granted to any person who,
at the time the option is granted, owns (or is deemed to own under Section 424(d) of the
Code) shares of outstanding Common Stock possessing more than 10% of the total combined
voting power of all classes of stock of the Corporation, unless the exercise price of such
option is at least 110% of the fair market value of the stock subject to the option and
such option by its terms is not exercisable after the expiration of five years from the
date such option is granted.
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| | 5.1.3    Stock Appreciation Rights.A stock appreciation right or
SARis a right to
receive a payment, in cash and/or Common Stock, equal to the excess of the fair market
value of a specified number of shares of Common Stock on the date the SAR is exercised
over the fair market value of a share of Common Stock on the date the SAR was granted (the
base price) as set forth in the applicable award agreement, except as follows:
(a) in the case of a SAR granted retroactively in tandem with or as a substitution for
another award, the base price may be no lower than the fair market value of a share of
Common Stock on the date such other award was granted; and (b) in any other circumstances,
a SAR may be granted with a base price that is less than the fair market value of a share
of Common Stock on the date of grant, provided that any shares delivered in respect of
such award shall be charged against the limit of Section 4.2(e) (the limit on full-value
awards) as well as any other applicable limit under Section 4.2. The maximum term of an
SAR shall be ten (10) years. The Administrator may grant limited SARs which are
exercisable only upon a change in control or other specified event and may be payable
based on the spread between the base price of the SAR and the fair market value of a share
of Common Stock during a specified period or at a specified time within a specified period
before, after or including the date of such event.
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| | 5.1.4    Other Awards. The other types of awards that may be
granted under this Plan include: (a)
stock bonuses, restricted stock, performance stock, stock units, phantom stock, dividend
equivalents, or similar rights to purchase or acquire shares, whether at a fixed or
variable price or ratio related to the Common Stock, upon the passage of time, the
occurrence of one or more events, or the satisfaction of performance criteria or other
conditions, or any combination thereof; (b) any similar securities with a value
derived from the value of or related to the Common Stock and/or returns thereon; or (c)
cash awards granted consistent with Section 5.2 below.
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| | 5.2 | Section 162(m)
Performance-Based Awards.Without limiting the generality of the foregoing,
any of the types of awards listed in Section 5.1.4 above may be, and options and SARs
granted with an exercise or base price not less than the fair market value of a share of
Common Stock at the date of grant (Qualifying Optionsand Qualifying
SARS,respectively) typically will be, granted as awards intended to satisfy the
requirements for performance-based compensation within the meaning of Section
162(m) of the Code (Performance-Based Awards). The grant, vesting,
exercisability or payment of Performance-Based Awards may depend (or, in the case of
Qualifying Options or Qualifying SARs, may also depend) on the degree of achievement of
one or more performance goals relative to a pre-established targeted level or level using
one or more of the Business Criteria set forth below (on an absolute or relative basis)
for the Corporation on a consolidated basis or for one or more of the Corporations
subsidiaries, segments, divisions or business units, or any combination of the foregoing.
Any Qualifying Option or Qualifying SAR shall be subject only to the requirements of
Section 5.2.1 and 5.2.3 in order for such award to satisfy the requirements for
performance-based compensation under Section 162(m) of the Award. Any other
Performance-Based Award shall be subject to all of the following provisions of this
Section 5.2.
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| | 5.2.1    
Class; Administrator.The eligible class of persons for Performance-Based Awards under
this Section 5.2 shall be officers and employees of the Company. The Administrator
approving Performance-Based Awards or making any certification required pursuant to
Section 5.2.4 must be constituted as provided in Section 3.1 for awards that are intended
as performance-based compensation under Section 162(m) of the Code.
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| | 5.2.2    Performance Goals.The specific performance goals for
Performance-Based Awards (other than
Qualifying Options and Qualifying SARs) shall be, on an absolute or relative basis,
established based on one or more of the following business criteria (Business
Criteria) as selected by the Administrator in its sole discretion: earnings per
share, cash flow (which means cash and cash equivalents derived from either net cash flow
from operations or net cash flow from operations, financing and investing activities),
total stockholder return, net revenue, revenue growth, operating income (before or after
taxes), earnings (before or after interest, taxes, depreciation and/or amortization),
return on equity or on assets or on net investment, cost containment or reduction, days
sales outstanding (which is obtained by dividing accounts receivable, less allowance for
doubtful accounts, by the 90-day rolling average of net revenues), or any combination
thereof. These terms are used as applied under generally accepted accounting principles or
in the Companys financial reporting. To qualify awards as performance-based under
Section 162(m), the applicable Business Criterion (or Business Criteria, as the case may
be) and specific performance goal or goals (targets) must be established and
approved by the Administrator during the first 90 days of the performance period (and, in
the case of performance periods of less than one year, in no event more than 25% of the
performance period has elapsed) and while performance relating to such target(s) remains
substantially uncertain within the meaning of Section 162(m) of the Code. Performance
targets shall be adjusted to mitigate the unbudgeted impact of material, unusual or
nonrecurring gains and losses, accounting changes or other extraordinary events not
foreseen at the time the targets were set unless the Administrator provides otherwise at
the time of establishing the targets. The applicable performance measurement period may
not be less than three months nor more than 10 years.
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| | 5.2.3    Form of Payment; Maximum Performance-Based Award.Grants or awards under this Section 5.2
may be paid in cash or shares of Common Stock or any combination thereof. Grants of
Qualifying Options and Qualifying SARs to any one participant in any one calendar year
shall be subject to the limit set forth in Section 4.2(b). The maximum number of shares of
Common Stock which may be delivered pursuant to Performance-Based Awards (other than
Qualifying Options and Qualifying SARs, and other than cash awards covered by the
following sentence) that are granted to any one participant in any one calendar year shall
not exceed 500,000shares, either individually or in the aggregate, subject to adjustment
as provided in Section 7.1. In addition, the aggregate amount of compensation to be paid
to any one participant in respect of all Performance-Based Awards payable only in cash and
not related to shares of Common Stock and granted to that participant in any one calendar
year shall not exceed $10,000,000. Awards that are cancelled during the year shall be
counted against these limits to the extent permitted by Section 162(m) of the Code.
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| | 5.2.4    
Certification of Payment.Before any Performance-Based Award under this Section 5.2 (other
than Qualifying Options and Qualifying SARs) is paid and to the extent required to qualify
the award as performance-based compensation within the meaning of Section 162(m) of the
Code, the Administrator must certify in writing that the performance target(s) and any
other material terms of the Performance-Based Award were in fact timely satisfied.
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| | 5.2.5    
Reservation of Discretion.The Administrator will have the discretion to determine the
restrictions or other limitations of the individual awards granted under this Section 5.2
including the authority to reduce awards, payouts or vesting or to pay no awards, in its
sole discretion, if the Administrator preserves such authority at the time of grant by
language to this effect in its authorizing resolutions or otherwise.
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| | 5.2.6    
Expiration of Grant Authority.As required pursuant to Section 162(m) of the Code and the
regulations promulgated thereunder, the Administrators authority to grant new awards
that are intended to qualify as performance-based compensation within the meaning of
Section 162(m) of the Code (other than Qualifying Options and Qualifying SARs) shall
terminate upon the first meeting of the Corporations stockholders that occurs in the
fifth year following the year in which the Corporations stockholders first approve
this Plan.
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| | 5.3 | Award Agreements.Each award shall be evidenced by a written award agreement in the form
approved by the Administrator and executed on behalf of the Corporation and, if required
by the Administrator, executed by the recipient of the award. The Administrator may
authorize any officer of the Corporation (other than the particular award recipient) to
execute any or all award agreements on behalf of the Corporation. The award agreement
shall set forth the material terms and conditions of the award as established by the
Administrator consistent with the express limitations of this Plan.
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| | 5.4 | Deferrals and Settlements.Payment of awards may be in the form of cash, Common Stock,
other awards or combinations thereof as the Administrator shall determine, and with such
restrictions as it may impose. The Administrator may also require or permit participants
to elect to defer the issuance of shares or the settlement of awards in cash under such
rules and procedures as it may establish under this Plan. The Administrator may also
provide that deferred settlements include the payment or crediting of interest or other
earnings on the deferral amounts, or the payment or crediting of dividend equivalents
where the deferred amounts are denominated in shares.
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| | 5.5 | Consideration for
Common Stock or Awards.The purchase price for any award granted under
this Plan or the Common Stock to be delivered pursuant to an award, as applicable, may be
paid by means of any lawful consideration as determined by the Administrator, including,
without limitation, one or a combination of the following methods:                                                                                                                                                                                                                                                                                                                          
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| |     |   services rendered by the recipient of such award;
       cash, check payable to the order of the Corporation,
or electronic funds transfer;
       notice and third party payment in such manner as may
 be authorized by the Administrator;
       the delivery of previously owned shares of Common Stock;
       by a reduction in the number of shares otherwise deliverable
 pursuant to the award; or
       subject to such procedures as the Administrator may adopt, pursuant to a "cashless exercise" with
    a third party who        provides financing for the purposes of (or who otherwise facilitates) the
    purchase or exercise of awards.

| | In
no event shall any shares newly-issued by the Corporation be issued for less than the
minimum lawful consideration for such shares or for consideration other than consideration
permitted by applicable state law. In the event that the Administrator allows a
participant to exercise an award by delivering shares of Common Stock previously owned by
such participant and unless otherwise expressly provided by the Administrator, any shares
delivered which were initially acquired by the participant from the Corporation (upon
exercise of a stock option or otherwise) must have been owned by the participant at least
six months as of the date of delivery. Shares of Common Stock used to satisfy the exercise
price of an option shall be valued at their fair market value on the date of exercise. The
Corporation will not be obligated to deliver any shares unless and until it receives full
payment of the exercise or purchase price therefor and any related withholding obligations
under Section 8.5 and any other conditions to exercise or purchase have been satisfied.
Unless otherwise expressly provided in the applicable award agreement, the Administrator
may at any time eliminate or limit a participants ability to pay the purchase or
exercise price of any award or shares by any method other than cash payment to the
Corporation.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.6 | Definition of Fair Market Value.For purposes of this Plan, fair market value
shall mean, unless otherwise determined or provided by the Administrator in the
circumstances, the closing price of a share of Common Stock as reported on the composite
tape for securities listed on the New York Stock Exchange (the Exchange) for
the date in question or, if no sales of Common Stock were made on the Exchange on that
date, the closing price of a share of Common Stock as reported on said composite tape for
the next preceding day on which sales of Common Stock were made on the Exchange. The
Administrator may, however, provide with respect to one or more awards that the fair
market value shall equal the last closing price of a share of Common Stock as reported on
the composite tape for securities listed on the Exchange available on the date in question
or the average of the high and low prices of a share of Common Stock as reported on the
composite tape for securities listed on the Exchange for the date in question or the most
recent trading day. If the Common Stock is no longer listed or is no longer actively
traded on the Exchange as of the applicable date, the fair market value of the Common
Stock shall be the value as reasonably determined by the Administrator for purposes of the
award in the circumstances. The Administrator also may adopt a different methodology for
determining fair market value with respect to one or more awards if a different
methodology is necessary or advisable to secure any intended favorable tax, legal or other
treatment for the particular award(s) (for example, and without limitation, the
Administrator may provide that fair market value for purposes of one or more awards will
be based on an average of closing prices (or the average of high and low daily trading
prices) for a specified period preceding the relevant date).
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.7 | Transfer Restrictions.
| | --- | ----------------------

| | 5.7.1    
Limitations on Exercise and Transfer.Unless otherwise expressly provided in (or pursuant
to) this Section 5.7, by applicable law and by the award agreement, as the same may be
amended, (a) all awards are non-transferable and shall not be subject in any manner to
sale, transfer, anticipation, alienation, assignment, pledge, encumbrance or charge; (b)
awards shall be exercised only by the participant; and (c) amounts payable or shares
issuable pursuant to any award shall be delivered only to (or for the account of) the
participant.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.7.2    
Exceptions.The Administrator may permit awards to be exercised by and paid to certain
persons or entities related to the participant, including but not limited to members of
the participants immediate family, trusts or other entities controlled by or whose
beneficiaries or beneficial owners are the participant and/or members of the
participants immediate family, pursuant to such conditions and procedures, including
limitations on subsequent transfers, as the Administrator may establish. Consistent with
Section 8.1, any permitted transfer shall be subject to the condition that the
Administrator receive evidence satisfactory to it that the transfer (a) is being made for
essentially donative, estate and/or tax planning purposes on a gratuitous or donative
basis and without consideration (other than nominal consideration or in exchange for an
interest in a qualified transferee), and (b) will not compromise the Corporations
ability to register shares issuable under this Plan on Form S-8 under the Securities Act.
Notwithstanding the foregoing or anything in Section 5.7.3, ISOs and restricted stock
awards shall be subject to any and all additional transfer restrictions under the Code to
the extent necessary to maintain the intended tax consequences of such awards.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.7.3
    Further Exceptions to Limits on Transfer.
The exercise and transfer restrictions in Section 5.7.1 shall not apply to:
| | -------------------------------------------------------------------------------------------------------------------------------

|(a) |  | transfers to the Corporation,
|--- |  | -----------------------------

|(b) |  | the designation of a beneficiary to receive benefits in the event of the
               participants death or, if the participant has died, transfers to or
               exercise by the participants beneficiary, or, in the absence of a validly
               designated beneficiary, transfers by will or the laws of descent and
               distribution,
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | subject to any applicable limitations on ISOs, transfers to a family member (or
               former family member) pursuant to a domestic relations order if approved or
               ratified by the Administrator,
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | if the participant has suffered a disability, permitted transfers or exercises
               on behalf of the participant by his or her legal representative, or
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) |  | the authorization by the Administrator of cashless exercise
               procedures with third parties who provide financing for the purpose of (or who
               otherwise facilitate) the exercise of awards consistent with applicable laws and
               the express authorization of the Administrator.
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 5.8 | International Awards.One or more awards may be granted to Eligible Persons who provide
services to the Company outside of the United States. Any awards granted to such persons
may be granted pursuant to the terms and conditions of any applicable sub-plans, if any,
appended to this Plan and approved by the Administrator.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

6.    
      EFFECT OF TERMINATION OF SERVICE ON AWARDS

| | 6.1 | General.The Administrator shall
establish the effect of a termination of employment or
service on the rights and benefits under each award under this Plan and in so doing may
make distinctions based upon, inter alia, the cause of termination and type of award. If
the participant is not an employee or Director of the Company and provides other services
to the Company, the Administrator shall be the sole judge for purposes of this Plan
(unless a contract or the award otherwise provides) of whether the participant continues
to render services to the Company and the date, if any, upon which such services shall be
deemed to have terminated.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.2 | Events Not Deemed Terminations of Service.
Unless Company policy or the Administrator
otherwise provides, the employment relationship shall not be considered terminated in the
case of (a) sick leave, (b) military leave, or (c) any other leave of absence authorized
by the Company or the Administrator; provided that unless reemployment upon the expiration
of such leave is guaranteed by contract or law, such leave is for a period of not more
than 90 days. In the case of any employee of the Company on an approved leave of absence,
continued vesting of the award while on leave from the employ of the Company may be
suspended until the employee returns to service, unless the Administrator otherwise
provides or applicable law otherwise requires. In no event shall an award be exercised
after the expiration of the term set forth in the award agreement.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 6.3 | Effect of Change of Subsidiary Status.For purposes of this Plan and any award, if an
entity ceases to be a Subsidiary of the Corporation a termination of employment or service
shall be deemed to have occurred with respect to each Eligible Person in respect of such
Subsidiary who does not continue as an Eligible Person in respect of another entity within
the Company after giving effect to the Subsidiarys change in status.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

7.    
      ADJUSTMENTS; ACCELERATION

| | 7.1 | Adjustments.Upon or in contemplation of: any reclassification, recapitalization, stock
split (including a stock split in the form of a stock dividend) or reverse stock split
(stock split); any merger, combination, consolidation, or other
reorganization; any spin-off, split-up, or similar extraordinary dividend distribution in
respect of the Common Stock (whether in the form of securities or property); any exchange
of Common Stock or other securities of the Corporation, or any similar, unusual or
extraordinary corporate transaction in respect of the Common Stock; or a sale of all or
substantially all the business or assets of the Corporation as an entirety; then the
Administrator shall, in such manner, to such extent (if any) and at such time as it deems
appropriate and equitable in the circumstances:
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | proportionately adjust any or all of (1) the number and type of shares of Common
               Stock (or other securities) that thereafter may be made the subject of awards
               (including the specific share limits, maximums and numbers of shares set forth
               elsewhere in this Plan), (2) the number, amount and type of shares of Common
               Stock (or other securities or property) subject to any or all outstanding
               awards, (3) the grant, purchase, or exercise price (which term includes the base
               price of any SAR or similar right) of any or all outstanding awards, (4) the
               securities, cash or other property deliverable upon exercise or payment of any
               outstanding awards, or (5) (subject to Sections 7.8 and 8.8.3(a)) the
               performance standards applicable to any outstanding awards, or
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | make provision for a cash payment or for the assumption, substitution or
               exchange of any or all outstanding share-based awards or the cash, securities or
               property deliverable to the holder of any or all outstanding share-based awards,
               based upon the distribution or consideration payable to holders of the Common
               Stock upon or in respect of such event.
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | The
Administrator may adopt such valuation methodologies for outstanding awards as it deems
reasonable in the event of a cash or property settlement and, in the case of options, SARs
or similar rights, but without limitation on other methodologies, may base such settlement
solely upon the excess if any of the per share amount payable upon or in respect of such
event over the exercise or base price of the award. With respect to any award of an ISO,
the Administrator may make such an adjustment that causes the option to cease to qualify
as an ISO without the consent of the affected participant.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
any of such events, the Administrator may take such action prior to such event to the
extent that the Administrator deems the action necessary to permit the participant to
realize the benefits intended to be conveyed with respect to the underlying shares in the
same manner as is or will be available to stockholders generally. In the case of any stock
split or reverse stock split, if no action is taken by the Administrator, the
proportionate adjustments contemplated by clause (a) above shall nevertheless be made.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.2 | Automatic Acceleration of Awards.Upon a dissolution of the Corporation or other event
described in Section 7.1 that the Corporation does not survive (or does not survive as a
public company in respect of its Common Stock), then each then outstanding option and SAR
shall become fully vested, all shares of restricted stock then outstanding shall fully
vest free of restrictions, and each other award granted under this Plan that is then
outstanding shall become payable to the holder of such award; provided that such
acceleration provision shall not apply, unless otherwise expressly provided by the
Administrator, with respect to any award to the extent that the Administrator has made a
provision for the substitution, assumption, exchange or other continuation or settlement
of the award, or the award would otherwise continue in accordance with its terms, in the
circumstances.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.3 | Possible Acceleration of Awards.Without limiting Section 7.2, in the event of a Change in
Control Event (as defined below), the Administrator may, in its discretion, provide that
any outstanding option or SAR shall become fully vested, that any share of restricted
stock then outstanding shall fully vest free of restrictions, and that any other award
granted under this Plan that is then outstanding shall be payable to the holder of such
award. The Administrator may take such action with respect to all awards then outstanding
or only with respect to certain specific awards identified by the Administrator in the
circumstances. For purposes of this Plan, Change in Control Eventmeans any of
the following:
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | The acquisition by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act (a Person)) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 20% or more of either (1) the then-outstanding shares of common
stock of the Corporation (the Outstanding Company Common Stock) or
(2) the combined voting power of the then-outstanding voting securities of the
Corporation entitled to vote generally in the election of Directors (the
Outstanding Company Voting Securities); provided, however, that, for
purposes of this definition, the following acquisitions shall not constitute a
Change in Control Event; (A) any acquisition directly from the Corporation, (B)
any acquisition by the Corporation, (C) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Corporation or any
affiliate of the Corporation or a successor, or (D) any acquisition by any
entity pursuant to a transaction that complies with Sections (c)(1), (2) and (3)
below;
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Individuals who, as of the Effective Date, constitute the Board (the
Incumbent Board) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a
Director subsequent to the Effective Date whose election, or nomination for
election by the Corporations stockholders, was approved by a vote of at
least two-thirds of the Directors then comprising the Incumbent Board (including
for these purposes, the new members whose election or nomination was so
approved, without counting the member and his predecessor twice) shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of Directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board;
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) |  | Consummation of a reorganization, merger, statutory share exchange or
consolidation or similar corporate transaction involving the Corporation or any
of its Subsidiaries, a sale or other disposition of all or substantially all of
the assets of the Corporation, or the acquisition of assets or stock of another
entity by the Corporation or any of its Subsidiaries (each, a Business
Combination), in each case unless, following such Business Combination,
(1) all or substantially all of the individuals and entities that were the
beneficial owners of the Outstanding Company Common Stock and the Outstanding
Company Voting Securities immediately prior to such Business Combination
beneficially own, directly or indirectly, more than 50% of the then-outstanding
shares of common stock and the combined voting power of the then-outstanding
voting securities entitled to vote generally in the election of Directors, as
the case may be, of the entity resulting from such Business Combination
(including, without limitation, an entity that, as a result of such transaction,
owns the Corporation or all or substantially all of the Corporations
assets directly or through one or more subsidiaries (a Parent)) in
substantially the same proportions as their ownership immediately prior to such
Business Combination of the Outstanding Company Common Stock and the Outstanding
Company Voting Securities, as the case may be, (2) no Person (excluding any
entity resulting from such Business Combination or a Parent or any employee
benefit plan (or related trust) of the Corporation or such entity resulting from
such Business Combination or Parent) beneficially owns, directly or indirectly,
20% or more of, respectively, the then-outstanding shares of common stock of the
entity resulting from such Business Combination or the combined voting power of
the then-outstanding voting securities of such entity, except to the extent that
the ownership in excess of 20% existed prior to the Business Combination, and
(3) at least a majority of the members of the board of Directors or trustees of
the entity resulting from such Business Combination or a Parent were members of
the Incumbent Board at the time of the execution of the initial agreement or of
the action of the Board providing for such Business Combination; or
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) |  | Approval by the stockholders of the Corporation of a complete liquidation or
               dissolution of the Corporation other than in the context of a transaction that
               does not constitute a Change in Control Event under clause (c) above.
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.4 | Early Termination of Awards.Any award that has been accelerated as required or
contemplated by Section 7.2 or 7.3 (or would have been so accelerated but for Section 7.5,
7.7 or 7.8) shall terminate upon the related event referred to in Section 7.2 or 7.3, as
applicable, subject to any provision that has been expressly made by the Administrator,
through a plan of reorganization or otherwise, for the survival, substitution, assumption,
exchange or other continuation or settlement of such award and provided that, in the case
of options and SARs that will not survive, be substituted for, assumed, exchanged, or
otherwise continued or settled in the transaction, the holder of such award shall be given
reasonable advance notice of the impending termination and a reasonable opportunity to
exercise his or her outstanding options and SARs in accordance with their terms before the
termination of such awards (except that in no case shall more than ten days notice
of accelerated vesting and the impending termination be required and any acceleration may
be made contingent upon the actual occurrence of the event).
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.5 | Other Acceleration Rules.Any acceleration of awards pursuant to this Section 7 shall
comply with applicable legal requirements and, if necessary to accomplish the purposes of
the acceleration or if the circumstances require, may be deemed by the Administrator to
occur a limited period of time not greater than 30 days before the event. Without limiting
the generality of the foregoing, the Administrator may deem an acceleration to occur
immediately prior to the applicable event and/or reinstate the original terms of an award
if an event giving rise to an acceleration does not occur. The Administrator may override
the provisions of Section 7.2, 7.3, 7.4 and/or 7.7 by express provision in the award
agreement and may accord any Eligible Person a right to refuse any acceleration, whether
pursuant to the award agreement or otherwise, in such circumstances as the Administrator
may approve. The portion of any ISO accelerated in connection with a Change in Control
Event or any other action permitted hereunder shall remain exercisable as an ISO only to
the extent the applicable $100,000 limitation on ISOs is not exceeded. To the extent
exceeded, the accelerated portion of the option shall be exercisable as a nonqualified
stock option under the Code.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.6 | Possible Rescission of Acceleration.If the vesting of an award has been accelerated
expressly in anticipation of an event or upon stockholder approval of an event and the
Administrator later determines that the event will not occur, the Administrator may
rescind the effect of the acceleration as to any then outstanding and unexercised or
otherwise unvested awards.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.7 | Golden Parachute Limitation.Notwithstanding anything else contained in this Section 7 to
the contrary, in no event shall an award be accelerated under this Plan to an extent or in
a manner which would not be fully deductible by the Company for federal income tax
purposes because of Section 280G of the Code, nor shall any payment hereunder be
accelerated to the extent any portion of such accelerated payment would not be deductible
by the Company because of Section 280G of the Code. If a participant would be entitled to
benefits or payments hereunder and under any other plan or program that would constitute
parachute payments as defined in Section 280G of the Code, then the
participant may by written notice to the Company designate the order in which such
parachute payments will be reduced or modified so that the Company is not denied federal
income tax deductions for any parachute payments because of Section 280G of
the Code. Notwithstanding the foregoing, an employment or other agreement with the
participant may expressly provide for benefits in excess of amounts determined by applying
the foregoing Section 280G limitations.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 7.8 | Section 162(m) Limitations.To the extent limited by Section 162(m) of the Code in the
case of an award intended as performance-based compensation thereunder and necessary to
assure the deductibility of the compensation payable under the award, the Administrator
shall have no discretion under this Plan (a) to increase the amount of compensation or the
number of shares that would otherwise be due upon the attainment of the applicable
performance target or the exercise of the option or SAR, or (b) to waive the achievement
of any applicable performance goal as a condition to receiving a benefit or right under
the award.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8.    
      OTHER PROVISIONS

| | 8.1 | Compliance with Laws.This Plan, the granting and vesting of awards under this Plan, the
offer, issuance and delivery of shares of Common Stock, the acceptance of promissory notes
and/or the payment of money under this Plan or under awards are subject to compliance with
all applicable federal and state laws, rules and regulations (including but not limited to
state and federal securities law, federal margin requirements) and to such approvals by
any listing, regulatory or governmental authority as may, in the opinion of counsel for
the Company, be necessary or advisable in connection therewith. The person acquiring any
securities under this Plan will, if requested by the Company, provide such assurances and
representations to the Company as the Administrator may deem necessary or desirable to
assure compliance with all applicable legal and accounting requirements.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.2 | Employment Status.No person shall have any claim or rights to be granted an award (or
additional awards, as the case may be) under this Plan, subject to any express contractual
rights (set forth in a document other than this Plan) to the contrary.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.3 | No Employment/Service Contract.
Nothing contained in this Plan (or in any other documents
under this Plan or in any award) shall confer upon any Eligible Person or other
participant any right to continue in the employ or other service of the Company,
constitute any contract or agreement of employment or other service or affect an
employees status as an employee at will, nor shall interfere in any way with the
right of the Company to change a persons compensation or other benefits, or to
terminate his or her employment or other service, with or without cause. Nothing in this
Section 8.3, however, is intended to adversely affect any express independent right of
such person under a separate employment or service contract other than an award agreement.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.4 | Plan Not Funded.Awards payable under this Plan shall be payable in shares or from the
general assets of the Corporation, and no special or separate reserve, fund or deposit
shall be made to assure payment of such awards. No participant, beneficiary or other
person shall have any right, title or interest in any fund or in any specific asset
(including shares of Common Stock, except as expressly otherwise provided) of the Company
by reason of any award hereunder. Neither the provisions of this Plan (or of any related
documents), nor the creation or adoption of this Plan, nor any action taken pursuant to
the provisions of this Plan shall create, or be construed to create, a trust of any kind
or a fiduciary relationship between the Company and any participant, beneficiary or other
person. To the extent that a participant, beneficiary or other person acquires a right to
receive payment pursuant to any award hereunder, such right shall be no greater than the
right of any unsecured general creditor of the Company.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.5 | Tax Withholding.Upon any exercise, vesting, or payment of any award or upon the
disposition of shares of Common Stock acquired pursuant to the exercise of an ISO prior to
satisfaction of the holding period requirements of Section 422 of the Code, the Company
shall have the right at its option to:
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(a) |  | require the participant (or the participants personal representative or
               beneficiary, as the case may be) to pay or provide for payment of at least the
               minimum amount of any taxes which the Company may be required to withhold with
               respect to such award event or payment; or
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | deduct from any amount otherwise payable in cash to the participant (or the
               participants personal representative or beneficiary, as the case may be)
               the minimum amount of any taxes which the Company may be required to withhold
               with respect to such cash payment.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | In
any case where a tax is required to be withheld in connection with the delivery of shares
of Common Stock under this Plan, the Administrator may in its sole discretion (subject to
Section 8.1) grant (either at the time of the award or thereafter) to the participant the
right to elect, pursuant to such rules and subject to such conditions as the Administrator
may establish, to have the Corporation reduce the number of shares to be delivered by (or
otherwise reacquire) the appropriate number of shares, valued in a consistent manner at
their fair market value or at the sales price in accordance with authorized procedures for
cashless exercises, necessary to satisfy the minimum applicable withholding obligation on
exercise, vesting or payment. In no event shall the shares withheld exceed the minimum
whole number of shares required for tax withholding under applicable law. The Corporation
may, with the Administrators approval, accept one or more promissory notes from any
Eligible Person in connection with taxes required to be withheld upon the exercise,
vesting or payment of any award under this Plan; provided that any such note shall be
subject to terms and conditions established by the Administrator and the requirements of
applicable law.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.6 | Effective Date,
Termination and Suspension, Amendments.
| | --- | -------------------------------------------------------

| | 8.6.1    
Effective Date.This Plan is effective as of July 17, 2003, the date of its approval by
the Board (the Effective Date). This Plan shall be submitted for and subject
to stockholder approval no later than twelve months after the Effective Date. Unless
earlier terminated by the Board, this Plan shall terminate at the close of business on the
day before the tenth anniversary of the Effective Date. After the termination of this Plan
either upon such stated expiration date or its earlier termination by the Board, no
additional awards may be granted under this Plan, but previously granted awards (and the
authority of the Administrator with respect thereto, including the authority to amend such
awards) shall remain outstanding in accordance with their applicable terms and conditions
and the terms and conditions of this Plan.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.6.2    
Board Authorization.The Board may, at any time, terminate or, from time to time, amend,
modify or suspend this Plan, in whole or in part. No awards may be granted during any
period that the Board suspends this Plan.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.6.3    
Stockholder Approval.To the extent then required by applicable law or any applicable
listing agency or required under Sections 162, 422 or 424 of the Code to preserve the
intended tax consequences of this Plan, or deemed necessary or advisable by the Board, any
amendment to this Plan shall be subject to stockholder approval.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.6.4    
Amendments to Awards.Without limiting any other express authority of the Administrator
under (but subject to) the express limits of this Plan, the Administrator by agreement or
resolution may waive conditions of or limitations on awards to participants that the
Administrator in the prior exercise of its discretion has imposed, without the consent of
a participant, and (subject to the requirements of Sections 3.2 and 8.6.5) may make other
changes to the terms and conditions of awards. Any amendment or other action that would
constitute a repricing of an award is subject to the limitations set forth in Section
3.2(g).
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.6.5    
Limitations on Amendments to Plan and Awards.No amendment, suspension or termination of
this Plan or change of or affecting any outstanding award shall, without written consent
of the participant, affect in any manner materially adverse to the participant any rights
or benefits of the participant or obligations of the Company under any award granted under
this Plan prior to the effective date of such change. Changes, settlements and other
actions contemplated by Section 7 shall not be deemed to constitute changes or amendments
for purposes of this Section 8.6.
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.7 | Privileges of Stock Ownership.Except as otherwise expressly authorized by the
Administrator or this Plan, a participant shall not be entitled to any privilege of stock
ownership as to any shares of Common Stock not actually delivered to and held of record by
the participant. No adjustment will be made for dividends or other rights as a stockholder
for which a record date is prior to such date of delivery.
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.8 | Governing Law;
 Construction; Severability.
| | --- | -------------------------------------------

| | 8.8.1    
Choice of Law.This Plan, the awards, all documents evidencing awards and all other
related documents shall be governed by, and construed in accordance with the laws of the
State of Delaware.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.8.2    
Severability.If a court of competent jurisdiction holds any provision invalid and
unenforceable, the remaining provisions of this Plan shall continue in effect.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.8.3    
Severability. Plan Construction.
| | ------------------------------------------

|(a) |  | Rule 16b-3. It is the intent of the Corporation that the awards and transactions
               permitted by awards be interpreted in a manner that, in the case of participants
               who are or may be subject to Section 16 of the Exchange Act, qualify, to the
               maximum extent compatible with the express terms of the award, for exemption
               from matching liability under Rule 16b-3 promulgated under the Exchange Act.
               Notwithstanding the foregoing, the Corporation shall have no liability to any
               participant for Section 16 consequences of awards or events under awards if an
               award or event does not so qualify.
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) |  | Section 162(m). Awards under Section 5.1.4 to persons described in Section 5.2
               that are either granted or become vested, exercisable or payable based on
               attainment of one or more performance goals related to the Business Criteria, as
               well as Qualifying Options and Qualifying SARs granted to persons described in
               Section 5.2, that are approved by a committee composed solely of two or more
               outside Directors (as this requirement is applied under Section 162(m) of the
               Code) shall be deemed to be intended as performance-based compensation within
               the meaning of Section 162(m) of the Code unless such committee provides
               otherwise at the time of grant of the award. It is the further intent of the
               Company that (to the extent the Company or awards under this Plan may be or
               become subject to limitations on deductibility under Section 162(m) of the Code)
               any such awards and any other Performance-Based Awards under Section 5.2 that
               are granted to or held by a person subject to Section 162(m) will qualify as
               performance-based compensation or otherwise be exempt from deductibility
               limitations under Section 162(m).
|--- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.9 | Captions.Captions and headings are given to the sections and subsections of this Plan
solely as a convenience to facilitate reference. Such headings shall not be deemed in any
way material or relevant to the construction or interpretation of this Plan or any
provision thereof.
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | 8.10 | Stock-Based Awards in Substitution for
Stock Options or Awards Granted by Other
Corporation.Awards may be granted to Eligible Persons under this Plan in substitution for
or in connection with an assumption of employee stock options, SARs, restricted stock or
other stock-based awards granted by other entities to persons who are or who will become
Eligible Persons in respect of the Company, in connection with a distribution, merger or
other reorganization by or with the granting entity or an affiliated entity, or the
acquisition by the Company, directly or indirectly, of all or a substantial part of the
stock or assets of the employing entity. The awards so granted need not comply with other
specific terms of this Plan, provided the awards reflect only adjustments giving effect to
the assumption or substitution consistent with the conversion applicable to the Common
Stock in the transaction and any change in the issuer of the security. Any shares that are
delivered and any awards that are granted by, or become obligations of, the Corporation,
as a result of the assumption by the Corporation of, or in substitution for, outstanding
awards previously granted by an acquired company (or previously granted by a predecessor
employer (or direct or indirect parent thereof) in the case of persons that become
employed by the Company in connection with a business or asset acquisition or similar
transaction) shall not be counted against the Share Limit or other limits on the number of
shares available for issuance under this Plan.
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| | 8.11 | Non-Exclusivity of Plan.Nothing in this Plan shall limit or be deemed to limit the
authority of the Board or the Administrator to grant awards or authorize any other
compensation, with or without reference to the Common Stock, under any other plan or
authority.
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| | 8.12 | No Corporate Action Restriction.The existence of this Plan, the award agreements and the
awards granted hereunder shall not limit, affect or restrict in any way the right or power
of the Board or the stockholders of the Corporation to make or authorize: (a) any
adjustment, recapitalization, reorganization or other change in the capital structure or
business of the Corporation or any subsidiary, (b) any merger, amalgamation, consolidation
or change in the ownership of the Corporation or any subsidiary, (c) any issue of bonds,
debentures, capital, preferred or prior preference stock ahead of or affecting the capital
stock (or the rights thereof) of the Corporation or any subsidiary, (d) any dissolution or
liquidation of the Corporation or any subsidiary, (e) any sale or transfer of all or any
part of the assets or business of the Corporation or any subsidiary, or (f) any other
corporate act or proceeding by the Corporation or any subsidiary. No participant,
beneficiary or any other person shall have any claim under any award or award agreement
against any member of the Board or the Administrator, or the Corporation or any employees,
officers or agents of the Corporation or any subsidiary, as a result of any such action.
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| | 8.13 | Other Company Benefit
and Compensation Programs.Payments and other benefits received by a
participant under an award made pursuant to this Plan shall not be deemed a part of a
participants compensation for purposes of the determination of benefits under any
other employee welfare or benefit plans or arrangements, if any, provided by the
Corporation or any subsidiary, except where the Administrator expressly otherwise provides
or authorizes in writing. Awards under this Plan may be made in addition to, in
combination with, as alternatives to or in payment of grants, awards or commitments under
any other plans or arrangements of the Company or its subsidiaries.
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