exv10wa



 




Exhibit 10-a




ADC TELECOMMUNICATIONS, INC.

GLOBAL STOCK INCENTIVE PLAN




(as amended and restated through December 12, 2006)




Section 1. Purpose.




     The purposes of the ADC Telecommunications, Inc. Global Stock Incentive Plan (the
“Plan”) are to: (i) aid in maintaining and developing key employees capable of assuring the
future success of ADC Telecommunications, Inc. (the “Company”), and to offer such personnel
incentives to put forth maximum efforts for the success of the Company’s business; (ii) to
enhance the Company’s ability to attract and retain the services of experienced and
knowledgeable outside directors; and (iii) to afford such key employees and outside directors
an opportunity to acquire a proprietary interest in the Company, thereby aligning their
interests with the interests of the Company’s shareholders.



Section 2. Definitions.




     As used in the Plan, the following terms shall have the meanings set forth below:



     (a)      “Affiliate” shall mean (i) any entity that, directly or indirectly through one or
more intermediaries, is controlled by the Company and (ii) any entity in which the Company
has a significant equity interest, as determined by the Committee.



     (b)      “Award” shall mean any Option, Stock Appreciation Right, Restricted Stock,
Restricted Stock Unit, Dividend Equivalent or Performance Award granted under the Plan.



     (c)      “Award Agreement” shall mean any written agreement, contract or other
instrument or document evidencing any Award granted under the Plan.



     (d)      “Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time, and any regulations promulgated thereunder.



     (e)      “Committee” shall mean a committee of the Board of Directors of the Company
designated by such Board to administer the Plan and composed of not less than three
directors, each of whom is a “Non-Employee Director” within the meaning of Rule 16b-3.



     (f)      “Dividend Equivalent” shall mean any right granted under Section 6(e) of the
Plan.



     (g)      “Fair Market Value” shall mean, with respect to any property (including, without
limitation, any Shares or other securities), the fair market value of such property determined
by such methods or procedures as shall be established from time to time by the Committee.
Notwithstanding the foregoing, for purposes of the Plan, if the Shares are listed on a U.S.
national securities exchange at the relevant time, the Fair Market Value of Shares on a given
date shall be (i) the closing price of the Shares as reported on the applicable Nasdaq national
securities exchange on such date, if the Shares are then quoted on the Nasdaq national
securities exchange or (ii) if the Shares are not traded on the Nasdaq national securities
exchange at the relevant time, the closing price of the Shares on such date on another U.S.
national securities exchange, if the shares are then being traded on such other U.S. national
securities exchange at the relevant time.



	 	 	 	 	 
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     (h)      “Incentive Stock Option” shall mean an option granted under Section 6(a) of the
Plan that is intended to meet the requirements of Section 422 of the Code or any successor
provision thereto.



     (i)      “Key Employee” shall mean any employee of the Company or any Affiliate who
the Committee determines to be a key employee.



     (j)      “Non-Qualified Stock Option” shall mean an option granted under Section 6(a) of
the Plan that is not intended to be an Incentive Stock Option.



     (k)      “Option” shall mean an Incentive Stock Option or a Non-Qualified Stock Option.



     (l)      “Outside Director” shall mean each member of the Board of Directors of the
Company that is not also an employee of the Company or any Affiliate of the Company.



     (m)      “Participant” shall mean either a Key Employee or an Outside Director
designated to be granted an Award under the Plan.



     (n)      “Performance Award” shall mean any right granted under Section 6(d) of the
Plan.



     (o)      “Person” shall mean any individual, corporation, partnership, association or
trust.



     (p)      “Restricted Stock” shall mean any Share granted under Section 6(c) of the Plan.



     (q)      “Restricted Stock Unit” shall mean any unit granted under Section 6(c) of the
Plan evidencing the right to receive a Share at some future date.



     (r)      “Rule 16b-3” shall mean Rule 16b-3 promulgated by the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended, or any
successor rule or regulation thereto.



     (s)      “Shares” shall mean shares of Common Stock, $.20 par value, of the Company
or such other securities or property as may become subject to Awards pursuant to an
adjustment made under Section 4(c) of the Plan.



     (t)      “Stock Appreciation Right” shall mean any right granted under Section 6(b) of
the Plan.



Section 3. Administration.




     (a)      Power and Authority of the Committee. The Plan shall be administered by the
Committee. Subject to the terms of the Plan and applicable law, the Committee shall have full
power and authority to: (i) designate Participants; (ii) determine the type or types of Awards
to be granted to each Participant under the Plan; (iii) determine the number of Shares to be
covered by (or with respect to which payments are to be calculated in connection with)
Awards; (iv) determine the terms and conditions of any Award or Award Agreement; (v)
amend the terms and conditions of any Award or Award Agreement and accelerate the
exercisability of Options or the lapse of restrictions relating to Restricted Stock or Restricted
Stock Units; (vi) determine whether, to what extent and under what circumstances Awards
may be exercised in cash, Shares, other securities, other Awards or other property, or
canceled, forfeited or suspended; (vii) determine whether, to what extent and under what
circumstances cash or Shares payable with respect to an Award under the Plan shall be
deferred either automatically or at the election of the holder thereof or the Committee; (viii)



	 	 	 	 	 
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interpret and administer the Plan and any instrument or agreement relating to, or Award made
under, the Plan; (ix) establish, amend, suspend or waive such rules and regulations and
appoint such agents as it shall deem appropriate for the proper administration of the Plan; and
(x) make any other determination and take any other action that the Committee deems
necessary or desirable for the administration of the Plan. Unless otherwise expressly provided
in the Plan, all designations, determinations, interpretations and other decisions under or with
respect to the Plan or any Award shall be within the sole discretion of the Committee, may be
made at any time and shall be final, conclusive and binding upon any Participant, any holder or
beneficiary of any Award and any employee of the Company or any Affiliate.



     (b)      Meetings of the Committee. The Committee shall select one of its members as
its chairman and shall hold its meetings at such times and places as the Committee may
determine. A majority of the Committee’s members shall constitute a quorum. All
determinations of the Committee shall be made by not less than a majority of its members.
Any decision or determination reduced to writing and signed by all of the members of the
Committee shall be fully effective as if it had been made by a majority vote at a meeting duly
called and held. The Committee may appoint a secretary and may make such rules and
regulations for the conduct of its business as it shall deem advisable.



Section 4. Shares Available for Awards.




     (a)      Shares Available. Subject to adjustment as provided in Section 4(c), as of
November 1, 2001, the number of Shares available for the issuance of shares under
outstanding Awards and the granting of future Awards under the Plan shall be 21,329,775. If
any Shares covered by an Award or to which an Award relates are not purchased or are
forfeited, or if an Award otherwise terminates without delivery of any Shares or cash payments
to be received thereunder, then the number of Shares counted against the aggregate number
of Shares available under the Plan with respect to such Award, to the extent of any such
forfeiture or termination, shall again be available for granting Awards under the Plan. In
addition, any Shares that are used by a Participant as full or partial payment to the Company
of the purchase price of Shares acquired upon exercise of an Option or to satisfy applicable tax
withholding requirements (including social insurance requirements) upon the exercise or
vesting of an Award shall again be available for granting Awards.



     (b)      Accounting for Awards. For purposes of this Section 4,




     (i)      if an Award entitles the holder thereof to receive or purchase Shares, the
number of Shares covered by such Award or to which such Award relates shall be
counted on the date of grant of such Award against the aggregate number of Shares
available for granting Awards under the Plan; and




     (ii)      if an Award entitles the holder to receive cash payments but the amount
of such payments are denominated in or based on a number of Shares, such number of
Shares shall be counted on the date of grant of such Award against the aggregate
number of Shares available for granting Awards under the Plan;



provided, however, that Awards that operate in tandem with (whether granted simultaneously
with or at a different time from), or that are substituted for, other Awards may be counted or
not counted under procedures adopted by the Committee in order to avoid double counting.



     (c)      Adjustments. In the event that the Committee shall determine that any
dividend or other distribution (whether in the form of cash, Shares, other securities or other
property), recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other
securities of the Company, issuance of warrants or other rights to purchase Shares or other



	 	 	 	 	 
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securities of the Company or other similar corporate transaction or event affects the Shares
such that an adjustment is determined by the Committee to be appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust
any or all of (i) the number and type of Shares (or securities or other property) which
thereafter may be made the subject of Awards, (ii) the number and type of Shares (or
securities or other property) subject to outstanding Awards and (iii) the exercise price with
respect to any Award; provided, however, that the number of Shares covered by any Award or
to which such Award relates shall always be a whole number.



     (d)      Incentive Stock Options. The aggregate number of Shares available as of
November 1, 2001 for outstanding Incentive Stock Options and for granting Incentive Stock
Options under the Plan shall not exceed 21,329,775, subject to adjustment as provided in the
Plan and Section 422 or 424 of the Code.



Section 5. Eligibility.




     Any Key Employee, including any Key Employee who is an officer or director of the
Company or any Affiliate, and any Outside Director shall be eligible to be designated a
Participant; provided, however, that an Incentive Stock Option shall not be granted to: (1) an
Outside Director; or (2) an employee of an Affiliate unless such Affiliate is also a “subsidiary
corporation” of the Company within the meaning of Section 424(f) of the Code.



Section 6. Awards.




     (a)      Options. The Committee is hereby authorized to grant Options to Participants
with the following terms and conditions and with such additional terms and conditions not
inconsistent with the provisions of the Plan as the Committee shall determine:




     (i)      Exercise Price. The purchase price per Share purchasable under an
Option shall be determined by the Committee; provided, however, that such purchase
price shall not be less than the Fair Market Value on the date of grant of such Option.




     (ii)      Option Term. The term of each Option shall be fixed by the Committee,
but such term shall not exceed 10 years from the date on which such Option is granted.




     (iii)      Time and Method of Exercise. The Committee shall determine the time or
times at which an Option may be exercised in whole or in part and the method or
methods by which, and the form or forms (including, without limitation, cash, Shares,
other securities, other Awards or other property, or any combination thereof, having a
Fair Market Value on the exercise date equal to the relevant exercise price) in which
payment of the exercise price with respect thereto may be made or deemed to have
been made.



     (b)      Stock Appreciation Rights. The Committee is hereby authorized to grant Stock
Appreciation Rights to Participants subject to the terms of the Plan and any applicable Award
Agreement. A Stock Appreciation Right granted under the Plan shall confer on the holder
thereof a right to receive upon exercise thereof the excess of (i) the Fair Market Value of one
Share on the date of exercise (or, if the Committee shall so determine, at any time during a
specified period before or after the date of exercise) over (ii) the grant price of the Stock
Appreciation Right as specified by the Committee, which price shall not be less than the
exercise price for an Option as described in Section 6(a)(i) hereof on the date of grant of the
Stock Appreciation Right. Subject to the terms of the Plan and any applicable Award
Agreement, the grant price, term, methods of exercise, dates of exercise, methods of
settlement and any other terms and conditions of any Stock Appreciation Right shall be as



	 	 	 	 	 
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determined by the Committee. The Committee may impose such conditions or restrictions on
the exercise of any Stock Appreciation Right as it may deem appropriate.



     (c)      Restricted Stock and Restricted Stock Units. The Committee is hereby
authorized to grant Awards of Restricted Stock and Restricted Stock Units to Participants with
the following terms and conditions and with such additional terms and conditions not
inconsistent with the provisions of the Plan as the Committee shall determine:




     (i)      Restrictions. Shares of Restricted Stock and Restricted Stock Units shall
be subject to such restrictions as the Committee may impose (including, without
limitation, any limitation on the right to vote a Share of Restricted Stock or the right to
receive any dividend or other right or property with respect thereto), which restrictions
may lapse separately or in combination at such time or times, in such installments or
otherwise as the Committee may deem appropriate.




     (ii)      Stock Certificates. Any Restricted Stock granted under the Plan shall be
evidenced by issuance of a stock certificate or certificates. Such certificate or
certificates shall be registered in the name of the Participant and shall bear an
appropriate legend referring to the terms, conditions and restrictions applicable to such
Restricted Stock.




     (iii)      Forfeiture; Delivery of Shares. Except as otherwise determined by the
Committee, upon termination of employment or upon resignation or removal as an
Outside Director (as determined under criteria established by the Committee) during
the applicable restriction period, all Shares of Restricted Stock and all Restricted Stock
Units at such time subject to restriction shall be forfeited and reacquired by the
Company; provided, however, that the Committee may, when it finds that a waiver
would be in the best interest of the Company, waive in whole or in part any or all
remaining restrictions with respect to Shares of Restricted Stock or Restricted Stock
Units. Shares representing Restricted Stock that are no longer subject to restrictions
shall be delivered to the holder thereof promptly after the applicable restrictions lapse
or are waived. In the case of Restricted Stock Units, no Shares shall be issued at the
time such Awards are granted. Upon the lapse or waiver of restrictions and the
restricted period relating to Restricted Stock Units evidencing the right to receive
Shares, such Shares shall be issued and delivered to the holders of the Restricted Stock
Units.




     (iv)      Limit on Restricted Stock and Restricted Stock Units Awards. Grants of
Restricted Stock and Restricted Stock Units shall be subject to the limitations set forth
in Section 6(f) hereof.



     (d)      Performance Awards. The Committee is hereby authorized to grant Performance
Awards to Participants subject to the terms of the Plan and any applicable Award Agreement.
A Performance Award granted under the Plan (i) shall be granted and payable in Shares
(including, without limitation, Restricted Stock) and (ii) shall confer on the holder thereof the
right to receive Shares upon the achievement of such performance goals during such
performance periods as the Committee shall establish. Subject to the terms of the Plan and
any applicable Award Agreement, the performance goals to be achieved during any
performance period, the length of any performance period, the amount of any Performance
Award granted and the number of shares to be issued pursuant to any Performance Award
shall be determined by the Committee. Grants of Performance Awards shall be subject to the
limitations set forth in Section 6(f) hereof.



     (e)      Dividend Equivalents. The Committee is hereby authorized to grant to
Participants Dividend Equivalents under which such Participants who hold Restricted Stock



	 	 	 	 	 
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Units or Performance Awards shall be entitled to receive payments (in cash or Shares, as
determined in the discretion of the Committee) equivalent to the amount of cash dividends
paid by the Company to holders of Shares. Subject to the terms of the Plan and any
applicable Award Agreement, such Dividend Equivalents may have such terms and conditions
as the Committee shall determine.



     (f)      Limit on Restricted Stock, Restricted Stock Units and Performance Awards. The
maximum number of Shares under the Plan available for grants of Restricted Stock, Restricted
Stock Units and Performance Awards made from and after March 2, 2004, in the aggregate,
shall be 4,285,714 Shares.



     (g)      General.




     (i)      No Cash Consideration for Awards. Except as otherwise determined by
the Committee, Awards shall be granted for no cash consideration or for such minimal
cash consideration as may be required by applicable law.




     (ii)      Awards May Be Granted Separately or Together. Awards may, in the
discretion of the Committee, be granted either alone or in addition to, in tandem with or
in substitution for any other Award or any award granted under any plan of the
Company or any Affiliate other than the Plan. Awards granted in addition to or in
tandem with other Awards or in addition to or in tandem with awards granted under
any such other plan of the Company or any Affiliate may be granted either at the same
time as or at a different time from the grant of such other Awards or awards.




     (iii)      Forms of Payment Under Awards. Subject to the terms of the Plan and of
any applicable Award Agreement, payments to be made by the Company or an Affiliate
upon the grant, exercise or payment of an Award may be made in Shares, cash or a
combination thereof as the Committee shall determine, and may be made in a single
payment, in installments or on a deferred basis, in each case in accordance with rules
and procedures established by the Committee. Such rules and procedures may include,
without limitation, provisions for the payment or crediting of reasonable interest on
installments or deferred payments.




     (iv)      Limits On Transfer of Awards. No Award and no right under any such
Award shall be assignable, alienable, salable or transferable by a Participant otherwise
than by will or by the laws of descent and distribution; provided, however, that a
Participant may, in the manner established by the Committee,




     (A)      designate a beneficiary or beneficiaries to exercise the rights of
the Participant and receive any property distributable with respect to any Award
upon the death of the Participant, or




     (B)      transfer a Non-Qualified Stock Option to any “family member” (as
such term is used in Form S-8 under the Securities Act of 1933) of such
Participant, provided that (1) there is no consideration for such transfer or such
transfer is effected pursuant to a domestic relations order in settlement of
marital property rights, and (2) the Non-Qualified Stock Options held by such
transferees continue to be subject to the same terms and conditions (including
restrictions or subsequent transfers) as were applicable to such Non-Qualified
Stock Options immediately prior to their transfer.




	 	 	Each Award or right under any Award shall be exercisable during the Participant’s
lifetime only by the Participant, by a transferee pursuant to a transfer permitted by
clause (B) of this Section 6(g)(iv), or, if permissible under applicable law, by the





	 	 	 	 	 
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	 	 	Participant’s or such transferee’s guardian or legal representative. No Award or right
under any such Award may be pledged, alienated, attached or otherwise encumbered,
and any purported pledge, alienation, attachment or encumbrance thereof shall be void
and unenforceable against the Company or any Affiliate.






     (v)      Term of Awards. Subject to the terms of the Plan, the term of each
Award shall be for such period as may be determined by the Committee.




     (vi)      Rule 16b-3 Six-Month Limitations. To the extent required in order to
comply with Rule 16b-3 only, any equity security offered pursuant to the Plan may not
be sold for at least six months after acquisition, except in the case of death or
disability, and any derivative security issued pursuant to the Plan shall not be
exercisable for at least six months, except in case of death or disability. Terms used in
the preceding sentence shall, for the purposes of such sentence only, have the
meanings, if any, assigned or attributed to them under Rule 16b-3.




     (vii)      Restrictions; Securities Exchange Listing. All certificates for Shares
delivered under the Plan pursuant to any Award or the exercise thereof shall be subject
to such stop transfer orders and other restrictions as the Committee may deem
advisable under the Plan or the rules, regulations and other requirements of the
Securities and Exchange Commission and any applicable federal, state or foreign
securities laws, and the Committee may cause a legend or legends to be placed on any
such certificates to make appropriate reference to such restrictions. If the Shares are
traded on a securities exchange, the Company shall not be required to deliver any
Shares covered by an Award unless and until such Shares have been admitted for
trading on such securities exchange.




     (viii)      Award Limitations Under the Plan. No Participant may be granted any
Award or Awards under the Plan, the value of which Award or Awards are based solely
on an increase in the value of Shares after the date of grant of such Award or Awards,
for more than 571,425 Shares, in the aggregate, in any one calendar year period
beginning with the 1994 calendar year. The foregoing annual limitation specifically
includes the grant of any Awards representing qualified performance-based
compensation, within the meaning of Section 162(m) of the Code.



Section 7. Amendment and Termination; Adjustments.




     Except to the extent prohibited by applicable law and unless otherwise expressly
provided in an Award Agreement or in the Plan:



     (a)      Amendments to the Plan. The Board of Directors of the Company may amend,
alter, suspend, discontinue or terminate the Plan; provided, however, that, notwithstanding
any other provision of the Plan or any Award Agreement, without the approval of the
shareholders of the Company, no such amendment, alteration, suspension, discontinuation or
termination shall be made that:




     (i)      absent such approval, would cause Rule 16b-3 to become unavailable
with respect to the Plan;




     (ii)      requires the approval of the Company’s shareholders under any rules or
regulations of the National Association of Securities Dealers, Inc. or any securities
exchange that are applicable to the Company; or




     (iii)      requires the approval of the Company’s shareholders under the Code in
order to permit Incentive Stock Options to be granted under the Plan.



	 	 	 	 	 
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     (b)      Amendments to Awards. The Committee may waive any conditions of or rights
of the Company under any outstanding Award, prospectively or retroactively, subject to
Section 7(c) of the Plan. The Committee may not amend, alter, suspend, discontinue or
terminate any outstanding Award, prospectively or retroactively, without the consent of the
Participant or holder or beneficiary thereof.



     (c)      Prohibition on Option Repricing. The Committee shall not reduce the exercise
price of any outstanding Option, whether through amendment, cancellation or replacement
grants, or any other means, without shareholder approval. In accordance with shareholder
approval granted on March 4, 2003, the Company offered to exchange certain outstanding
Options in accordance with the provisions set forth on Exhibit A attached hereto and made a
part hereof.



     (d)      Correction of Defects, Omissions and Inconsistencies. The Committee may
correct any defect, supply any omission or reconcile any inconsistency in the Plan or any
Award in the manner and to the extent it shall deem desirable to carry the Plan into effect.



Section 8. Income Tax Withholding; Tax Bonuses.




     (a)      Withholding. In order to comply with all applicable federal, state or foreign
income tax or social insurance contribution laws or regulations, the Company may take such
action as it deems appropriate to ensure that all applicable federal, state or foreign payroll,
withholding, income, social insurance contributions or other taxes, which are the sole and
absolute responsibility of a Participant, are withheld or collected from such Participant. In
order to assist a Participant in paying all federal, state and foreign taxes to be withheld or
collected upon exercise or receipt of (or the lapse of restrictions relating to) an Award, the
Committee, in its discretion and subject to such additional terms and conditions as it may
adopt, may permit the Participant to satisfy such tax obligation by (i) electing to have the
Company withhold a portion of the Shares otherwise to be delivered upon exercise or receipt of
(or the lapse of restrictions relating to) such Award with a Fair Market Value equal to the
amount of such taxes or (ii) delivering to the Company Shares other than Shares issuable
upon exercise or receipt of (or the lapse of restrictions relating to) such Award with a Fair
Market Value equal to the amount of such taxes. The election, if any, must be made on or
before the date that the amount of tax to be withheld is determined.



     (b)      Tax Bonuses. The Committee, in its discretion, shall have the authority, at the
time of grant of any Award under this Plan or at any time thereafter to approve bonuses to
designated Participants to be paid upon their exercise or receipt of (or the lapse of restrictions
relating to) Awards in order to provide funds to pay all or a portion of federal, state and foreign
taxes due as a result of such exercise or receipt (or the lapse of such restrictions). The
Committee shall have full authority in its discretion to determine the amount of any such tax
bonus.



Section 9. General Provisions.




     (a)      No Rights to Awards. No Key Employee, Participant or other Person shall have
any claim to be granted any Award under the Plan, and there is no obligation for uniformity of
treatment of Key Employees, Participants or holders or beneficiaries of Awards under the Plan.
The terms and conditions of Awards need not be the same with respect to different
Participants.



     (b)      Delegation. The Committee may delegate to one or more officers of the
Company or any affiliate or a committee of such officers the authority, subject to such terms
and limitations as the Committee shall determine, to grant Awards to Key Employees who are



	 	 	 	 	 
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not officers or directors of the Company for purposes of Section 16 of the Securities Exchange
Act of 1934, as amended.



     (c)      Terms of Awards. The specific terms of an Award pursuant to the Plan shall be
set forth in an Award Agreement duly executed (by manual, facsimile or electronic signature)
on behalf of the Company.



     (d)      No Limit on Other Compensation Arrangements. Nothing contained in the Plan
shall prevent the Company or any Affiliate from adopting or continuing in effect other or
additional compensation arrangements, and such arrangements may be either generally
applicable or applicable only in specific cases.



     (e)      No Right to Employment or Directorship. The grant of an Award shall not be
construed as giving a Participant the right to be retained in the employ of the Company or any
Affiliate or any right to remain as a member of the Board of Directors, as the case may be. In
addition, the Company or an Affiliate may at any time dismiss a Participant from employment
(or remove an Outside Director), free from any liability or any claim under the Plan, unless
otherwise expressly provided in the Plan or in any Award Agreement.



     (f)      Governing Law. The validity, construction and effect of the Plan and any rules
and regulations relating to the Plan shall be determined in accordance with the laws of the
State of Minnesota.



     (g)      Severability. If any provision of the Plan or any Award is or becomes or is
deemed to be invalid, illegal or unenforceable in any jurisdiction or would disqualify the Plan or
any Award under any law deemed applicable by the Committee, such provision shall be
construed or deemed amended to conform to applicable laws, or if it cannot be so construed or
deemed amended without, in the determination of the Committee, materially altering the
purpose or intent of the Plan or the Award, such provision shall be stricken as to such
jurisdiction or Award, and the remainder of the Plan or any such Award shall remain in full
force and effect.



     (h)      No Trust or Fund Created. Neither the Plan nor any Award shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the
Company or any Affiliate and a Participant or any other Person. To the extent that any Person
acquires a right to receive payments from the Company or any Affiliate pursuant to an Award,
such right shall be no greater than the right of any unsecured general creditor of the Company
or any Affiliate.



     (i)      No Fractional Shares. No fractional Shares shall be issued or delivered pursuant
to the Plan or any Award, and the Committee shall determine whether cash shall be paid in lieu
of any fractional Shares or whether such fractional Shares or any rights thereto shall be
canceled, terminated or otherwise eliminated.



     (j)      Headings. Headings are given to the Sections and subsections of the 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 the Plan or any provision thereof.



Section 10. Effective Date of the Plan.




     The Plan shall be effective as of the date of its approval by the shareholders of the
Company.



	 	 	 	 	 
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Section 11. Term of the Plan.




     Awards shall be granted under the Plan during a period commencing February 26,
1991, the date the Plan was approved by the shareholders of the Company, through March 2,
2009, the date to which the shareholders of the Company extended the expiration date of the
Plan. However, unless otherwise expressly provided in the Plan or in an applicable Award
Agreement, any Award theretofore granted may extend beyond the ending date of the period
stated above, and the authority of the Committee provided for hereunder with respect to the
Plan and any Awards, and the authority of the Board of Directors of the Company to amend
the Plan, shall extend beyond the end of such period.



	 	 	 	 	 
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EXHIBIT A




(The values and share amounts reflected herein have not been adjusted for the Reverse Stock Split

approved by the Company’s Board of Directors and effective on May 10, 2005)




     The Company may offer, on a one-time basis, to exchange outstanding Options with an
exercise price per share equal to or greater than $4.00 and an expiration date on or after
January 1, 2004, whether or not such options were granted under the Plan (the “Eligible
Options”), other than Options granted to the Company’s five most highly compensated
executive officers named in the proxy statement for the Company’s 2003 Annual Meeting of
Shareholders, members of the Board of Directors, former employees, retirees and such
employees in countries outside the United States as may be deemed ineligible for the
exchange program, for replacement Options (“Replacement Options”) to be granted under the
Plan on a date that is at least six months and one day from the latest date on which an Eligible
Option is validly surrendered. The Replacement Options will have an exercise price as
described in Section 6(a)(i) of the Plan.



     The exchange ratios for shares covered by Eligible Options surrendered in exchange for
shares covered by Replacement Options shall be as follows, assuming a fair market value of
the Company’s Common Stock on the date of commencement of the stock option exchange
program of $1.00, $2.00, $3.00, $4.00, $5.00 or $7.50 per share. For purposes of calculating
the exchange ratios, the fair market value of the Common Stock will be the average of the
closing prices of the Common Stock over a period of 20 consecutive trading days ending no
earlier than 45 days and no later than 25 days prior to the commencement of the exchange
program (the “Current Stock Price”).



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	$1.00/share	 	$2.00/share	 	$3.00/share	 	$4.00/share	 	$5.00/share	 	$7.50/share
	 	 	Current	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Exercise	 	Exchange	 	Exchange	 	Exchange	 	Exchange	 	Exchange	 	Exchange
	Tier	 	Price	 	Ratio	 	Ratio	 	Ratio	 	Ratio	 	Ratio	 	Ratio
	1

	 	$4.00 — 5.49
	 	2.00 to 1
	 	1.50 to 1
	 	N/A
	 	N/A
	 	N/A
	 	N/A
	2

	 	$5.50 — 7.99
	 	3.00 to 1
	 	2.00 to 1
	 	1.75 to 1
	 	N/A
	 	N/A
	 	N/A
	3

	 	$8.00 — 14.99
	 	6.00 to 1
	 	3.25 to 1
	 	2.25 to 1
	 	2.00 to 1
	 	1.75 to 1
	 	N/A
	4

	 	$15.00 or
higher
	 	11.25 to 1
	 	5.50 to 1
	 	3.75 to 1
	 	3.00 to 1
	 	2.75 to 1
	 	2.00 to 1






     If the Current Stock Price is between the Current Stock Prices listed in the table above,
the final exchange ratios will be determined by interpolating between these prices and
rounding to the nearest .25 of a share. If the actual Current Stock Price is below $1.00 per
share, the exchange ratios will be increased appropriately. The exchange program will be
cancelled in its entirety if the Current Stock Price is equal to or greater than $7.50 per share.



     To participate in the stock option exchange program, an employee must surrender all of
the Eligible Options issued to such employee with an exercise price at or above the lowest tier
exercise price of Eligible Options the employee chooses to surrender.



     Each Replacement Option shall be a Non-Qualified Stock Option; shall vest 25% on the
six-month anniversary of the date of grant, with an additional 25% vesting at the end of each
subsequent six-month period; and shall have a term of seven years from the date of grant. All
other terms of the Replacement Options shall be consistent with the Company’s standard
terms for Non-Qualified Stock Options granted under the Plan.



     All other terms and conditions of the stock option exchange program shall be
determined in the sole discretion of the Board of Directors or the Compensation Committee.



	 	 	 	 	 
	December 12, 2006

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