EX-10.2



 






Exhibit 10.2




NATIONAL FUEL GAS COMPANY

1993 AWARD AND OPTION PLAN




As Amended October 27, 1995, December 11, 1996, December 18, 1996, June 14, 2001 and

September 8, 2005





	 	1.	 	Purpose





          The purposes of the Plan are to advance the interests of the Company and its
stockholders, by providing a long-term incentive compensation program that will be an
incentive to the Key Employees of the Company and its Subsidiaries whose contributions are
important to the continued success of the Company and its Subsidiaries, and by enhancing
their ability to attract and retain in their employ highly qualified persons for the
successful conduct of their businesses.





	 	2.	 	Definitions





          2.1 “Acceleration Date” means (i) in the event of a Change in Ownership, the date
on which such change occurs, or (ii) with respect to a Participant who is eligible for
treatment under paragraph 24 hereof on account of the termination of his employment
following a Change in Control, the date on which such termination occurs.




          2.2 “Award” means any form of stock option, stock appreciation right, Restricted
Stock, performance unit, performance share or other incentive award granted by the
Committee to a Participant under the Plan pursuant to such terms and conditions as the
Committee may establish. An Award may be granted singly, in combination or in the
alternative.




          2.3 “Award Notice” means a written notice from the Company to a Participant that
sets forth the terms and conditions of an Award in addition to those established by this
Plan and by the Committee’s exercise of its administrative powers.




          2.4 “Board” means the Board of Directors of the Company.




          2.5 “Cause” means (i) the willful and continued failure by a Key Employee to
substantially perform his duties with his employer after written warnings specifically
identifying the lack of substantial performance are delivered to him by his employer, or
(ii) the willful engaging by a Key Employee in illegal conduct which is materially and
demonstrably injurious to the Company or a Subsidiary.




          2.6 “Change in Control” shall be deemed to have occurred at such time as (i) any
“person” within the meaning of Section 14(d) of the Exchange Act, other than the Company,
a Subsidiary, or any employee benefit plan or plans sponsored by the Company or any
Subsidiary, is or has become the “beneficial owner,” as defined in Rule 13d-3 under the
Exchange Act, directly or indirectly, of twenty percent (20%) or more of the combined
voting power of the outstanding securities of the Company ordinarily having the right to
vote at the election of directors, or (ii) approval by the stockholders of the Company of
(a) any consolidation or merger of the Company in which the Company is not the continuing
or surviving corporation or pursuant to which shares of stock of the Company would be
converted into cash, securities or other property, other than a consolidation or merger of
the Company in which the common stockholders of the Company immediately prior to the
consolidation or merger have substantially the same proportionate ownership of common
stock of the surviving corporation immediately after the consolidation or merger as
immediately before, or (b) any consolidation or merger in which the Company is the


 









 







continuing or surviving corporation but in which the common stockholders of the Company
immediately prior to the consolidation or merger do not hold at least a majority of the
outstanding common stock of the continuing or surviving corporation (except where such
holders of Common Stock hold at least a majority of the common stock of the corporation
which owns all of the common stock of the Company), or (c) any sale, lease, exchange or
other transfer (in one transaction or a series of related transactions) of all or
substantially all the assets of the Company, or (iii) individuals who constitute the Board
on February 17, 1993 (the “Incumbent Board”) have ceased for any reason to constitute at
least a majority thereof, provided that any person becoming a director subsequent to
February 17, 1993 whose election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least three-quarters ( 3/4) of the directors
comprising the Incumbent Board (either by specific vote or by approval of the proxy
statement of the Company in which such person is named as nominee for director without
objection to such nomination) shall be, for purposes of this Plan, considered as though
such person were a member of the Incumbent Board.




          2.7 “Change in Control Price” means, in respect of a Change in Control, the
highest closing price per share paid for the purchase of Common Stock on the New York
Stock Exchange, another national stock exchange or the National Association of Securities
Dealers Automated Quotation System during the ninety (90) day period ending on the date
the Change in Control occurs, and in respect of a Change in Ownership, the highest closing
price per share paid for the purchase of Common Stock on the New York Stock Exchange,
another national stock exchange or the National Association of Securities Dealers
Automated Quotation System during the ninety (90) day period ending on the date the Change
in Ownership occurs.




          2.8 “Change in Ownership” means a change which results directly or indirectly in
the Company’s Common Stock ceasing to be actively traded on a national securities exchange
or the National Association of Securities Dealers Automated Quotation System.




          2.9 “Code” means the Internal Revenue Code of 1986, as amended from time to time.




          2.10 “Committee” means the Compensation Committee of the Board, or such other
committee designated by the Board as authorized to administer the Plan. The Committee shall
consist of not less than two (2) members of the Board, each of whom shall be a Disinterested
Board Member. A Disinterested Board Member means a member who (a) is not a current employee
of the Company or a Subsidiary, (b) is not a former employee of the Company or a Subsidiary
who receives compensation for prior services (other than benefits under a tax-qualified
retirement plan) during the taxable year, (c) has not been an officer of the Company, (d) does
not receive remuneration from the Company or a Subsidiary, either directly or indirectly, in
any capacity other than as a director and (e) does not possess an interest in any other
transaction, and is not engaged in a business relationship, for which disclosure would be
required pursuant to Item 404(a) or (b) of Regulation S-K under the Securities Act of 1933, as
amended. The term Disinterested Board Member shall be interpreted in such manner as shall be
necessary to conform to the requirements of Section 162(m) of the Code and Rule 16b-3
promulgated under the Exchange Act.




          2.11 “Common Stock” means the common stock of the Company.




          2.12 “Company” means National Fuel Gas Company.




          2.13 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time
to time.




          2.14 “Fair Market Value” of a share of Common Stock on any date means the average of
the high and low sales prices of a share of Common Stock as reflected in the report of
consolidated trading of New York Stock Exchange-listed securities for that date (or, if no
such shares were publicly traded on that date, the next preceding date that such shares
were so traded)




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published in The Wall Street Journal or in any other publication selected by the
Committee; provided, however, that if shares of Common Stock shall not have been publicly
traded for more than ten (10) days immediately preceding such date, then the Fair Market
Value of a share of Common Stock shall be determined by the Committee in such manner as it
may deem appropriate.




          2.15 “Good Reason” means a good faith determination made by a Participant that there
has been any (i) material change by the Company of the Participant’s functions, duties or
responsibilities which change could cause the Participant’s position with the Company to
become of less dignity, responsibility, importance, prestige or scope, including, without
limitation, the assignment to the Participant of duties and responsibilities inconsistent
with his positions, (ii) assignment or reassignment by the Company of the Participant
without the Participant’s consent, to another place of employment more than 30 miles from
the Participant’s current place of employment, or (iii) reduction in the Participant’s
total compensation or benefits or any component thereof, provided in each case that the
Participant shall specify the event relied upon for such determination by written notice
to the Board at any time within six months after the occurrence of such event.




          2.16 “Key Employee” means an officer or other key employee of the Company or a
Subsidiary as determined by the Committee.




          2.17 “Participant” means any individual to whom an Award has been granted by the
Committee under this Plan.




          2.18 “Plan” means the National Fuel Gas Company 1993 Award and Option Plan.




          2.19 “Pre-Split” and “Post-Split” means before and after giving effect to the two-for-one
stock split of all shares outstanding at close of business August 24, 2001, to be effective on
September 7, 2001.




          2.20 “Restricted Stock” means an Award granted pursuant to paragraph 10 hereof.




          2.21 “Subsidiary” means a corporation or other business entity in which the Company
directly or indirectly has an ownership interest of eighty percent (80%) or more.




          2.22 “Unit” means a bookkeeping entry used by the Company to record and account for
the grant of the following Awards until such time as the Award is paid, cancelled,
forfeited or terminated, as the case may be: Units of Common Stock, performance units, and
performance shares which are expressed in terms of Units of Common Stock.





	 	3.	 	Administration





          The Plan shall be administered by the Committee. The Committee shall have the authority to:
(a) interpret the Plan; (b) establish such rules and regulations as it deems necessary for the
proper administration of the Plan; (c) select Key Employees to receive Awards under the Plan; (d)
determine the form of an Award, whether a stock option, stock appreciation right, Restricted Stock,
performance unit, performance share, or other incentive award established by the Committee in
accordance with (h) below, the number of shares or Units subject to the Award, all the terms and
conditions of an Award, including the time and conditions of exercise or vesting; (e) determine
whether Awards would be granted singly, in combination or in the alternative; (f) grant waivers of
Plan terms and conditions, provided that any such waiver granted to an executive officer of the
Company shall not be inconsistent with Section 16 of the Exchange Act and the rules promulgated
thereunder; (g) accelerate the vesting, exercise, or payment of any Award or the performance period
of an Award when any such action would be in the best interest of the Company; (h) establish such
other types of Awards, besides those specifically enumerated in paragraph 2.2 hereof, which the
Committee determines are consistent with the Plan’s purposes; and (h) take any and all other action
it deems advisable for the proper administration of the Plan. The Committee shall also have the
authority to grant Awards in replacement of Awards previously granted





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under this Plan or any other executive compensation or stock option plan of the Company or a
Subsidiary. All determinations of the Committee shall be made by a majority of its members, and
its determinations shall be final, binding and conclusive. The Committee, in its discretion, may
delegate its authority and duties under the Plan to the Chief Executive Officer or to other senior
officers of the Company to the extent permitted by Section 16 of the Exchange Act and
notwithstanding any other provision of this Plan or an Award Notice, under such conditions as the
Committee may establish; provided, however, that only the Committee may select and grant Awards and
render other decisions as to the timing, pricing and amount of Awards to Participants who are
subject to Section 16 of the Exchange Act. For the avoidance of doubt, neither the Committee nor
any delegate thereof shall take any action under the Plan, including without limitation pursuant to
this Section 3, which would result in the imposition of an additional tax under section 409A of the
Code on the Participant holding an Award granted hereunder.





	 	4.	 	Eligibility





          Any Key Employee is eligible to become a Participant of the Plan.





	 	5.	 	Shares Available





          The maximum number of post-split shares of Common Stock, $1.00 par value, of the Company which
shall be available for grant of Awards under the Plan (including incentive stock options) during
its term shall not exceed 4,290,900; subject to adjustment as provided in paragraph 17. Awards
covering no more than 650,000 post-split shares of Common Stock (subject to adjustment as provided
in paragraph 17) may be granted to any Participant in any fiscal year of the Company. The
1,090,900 post-split shares made available by the Plan Amendment approved at the 2001 Special
Meeting of Shareholders will be available only for Awards of stock options. Any shares of Common
Stock related to Awards which terminate by expiration, forfeiture, cancellation or otherwise
without the issuance of such shares, are settled in cash in lieu of Common Stock, or are exchanged
with the Committee’s permission for Awards not involving Common Stock, shall be available again for
grant under the Plan, provided, however, that if dividends or dividend equivalents pursuant to
paragraph 14, or other benefits of share ownership (not including the right to vote the shares)
have been received by the Participant in respect of an Award prior to such termination, settlement
or exchange, the shares which were the subject of the Award shall not again be available for grant
under the Plan. Further, any shares of Common Stock which are used by a Participant for the full
or partial payment to the Company of the purchase price of shares of Common Stock upon exercise of
a stock option, or for any withholding taxes due as a result of such exercise, shall again be
available for Awards under the Plan. Similarly, shares of Common Stock with respect to which an
Alternative SAR has been exercised and paid in cash shall again be available for grant under the
Plan. Shares to which independent or combination SARs relate shall not count against the 4,290,900
post-split limit set forth in this paragraph 5. The shares of Common Stock available for issuance
under the Plan may be authorized and unissued shares or treasury shares. The number of shares of
Common Stock issued under this Plan on or before August 24, 2001 was doubled pursuant to the
two-for-one stock split effective September 7, 2001. The additional shares issued under this Plan
as a result of that stock split count against the 4,290,900 shares of post-split stock available as
set forth in this paragraph 5 for grant of Awards under this Plan.





	 	6.	 	Term





          The Plan shall become effective as of February 18, 1993, subject to its approval by
the Company’s stockholders at the 1993 Annual Meeting of Stockholders and subject to the
approval of the Securities and Exchange Commission under the Public Utility Holding
Company Act of 1935, as amended. No Awards shall be exercisable or payable before these
approvals of the Plan have been obtained. Awards shall not be granted pursuant to the
Plan after February 17, 2003; provided, however, that incentive stock options shall not be
granted pursuant to the Plan after December 9, 2002.




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	 	7.	 	Participation





          The Committee shall select Participants, determine the type of Awards to be made, and
establish in the related Award Notices the applicable terms and conditions of the Awards
in addition to those set forth in this Plan and the administrative rules issued by the
Committee.





	 	8.	 	Stock Options





          (a) Grants. Awards may be granted in the form of stock options. These stock
options may be incentive stock options within the meaning of Section 422 of the Code or
non-qualified stock options (i.e., stock options which are not incentive stock options),
or a combination of both.




          (b) Terms and Conditions of Options. Unless the Award Notice provides otherwise,
an option shall be exercisable in whole or in part. The price at which Common Stock may
be purchased upon exercise of a stock option shall be established by the Committee, but
such price shall not be less than the Fair Market Value of the Common Stock on the date of
the stock option’s grant. An Award Notice evidencing a stock option may, in the
discretion of the Committee, provide that a Participant who pays the option price of a
stock option by an exchange of shares of Common Stock previously owned by the Participant
shall automatically be issued a new stock option to purchase additional shares of Common
Stock equal to the number of shares of Common Stock so exchanged. Such new stock option
shall have an option price equal to the Fair Market Value of the Common Stock on the date
such new stock option is issued and shall be subject to such other terms and conditions as
the Committee deems appropriate. Unless the Award Notice provides otherwise, each
incentive stock option shall first become exercisable on the first anniversary of its date
of grant, and each non-qualified stock option shall first become exercisable on the first
anniversary of its date of grant, or, if earlier (i) on the date of the Participant’s
death occurring after the date of grant, (ii) six months after the date of grant, if the
Participant has voluntarily resigned on or after his 60th birthday, after the date of
grant, and before such six months, or (iii) on the date of the Participant’s voluntary
resignation on or after his 60th birthday and at least six months after the date of grant.
Unless the Award Notice provides otherwise, each non-qualified stock option shall expire
on the day after the tenth anniversary of its date of grant, and incentive stock options
and non-qualified stock options granted in combination may be exercised separately.




          (c) Restrictions Relating to Incentive Stock Options. Stock options issued in
the form of incentive stock options shall, in addition to being subject to all applicable
terms and conditions established by the Committee, comply with Section 422 of the Code.
Accordingly, the aggregate Fair Market Value (determined at the time the option was
granted) of the Common Stock with respect to which incentive stock options are exercisable
for the first time by a Participant during any calendar year (under this Plan or any other
plan of the Company or any of its Subsidiaries) shall not exceed $100,000 (or such other
limit as may be required by the Code). Unless the Award Notice provides a shorter period,
each incentive stock option shall expire on the tenth anniversary of its date of grant.
The number of post-split shares of Common Stock that shall be available for incentive
stock options granted under the Plan is 4,290,900.




          (d) Exercise of Option. Upon exercise, the option price of a stock option may be
paid in cash, shares of Common Stock, shares of Restricted Stock, a combination of the
foregoing, or such other consideration as the Committee may deem appropriate. The
Committee shall establish appropriate methods for accepting Common Stock, whether
restricted or unrestricted, and may impose such conditions as it deems appropriate on the
use of such Common Stock to exercise a stock option. The Committee, in its sole
discretion, may establish procedures whereby a Participant to the extent permitted by and
subject to the requirements of Rule 16b-3 under the Exchange Act, Regulation T issued by
the Board of Governors of the Federal Reserve System pursuant to the Exchange Act, federal
income tax laws, and other federal, state and local tax and securities laws, can exercise
an option or a portion thereof without making a direct payment of the

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option price to the Company. If the Committee so elects to establish a cashless exercise
program, the Committee shall determine, in its sole discretion and from time to time, such
administrative procedures and policies as it deems appropriate. Such procedures and
policies shall be binding on any Participant wishing to utilize the cashless exercise
program.





	 	9.	 	Stock Appreciation Rights





          (a) Grants and Valuation. Awards may be granted in the form of stock appreciation
rights (“SARs”) until June 15, 2001. SARs may be granted singly (“Independent SARs”), in
combination with all or a portion of a related stock option under the Plan (“Combination
SARs”), or in the alternative (“Alternative SARs”). Combination or Alternative SARs may
be granted either at the time of the grant of related stock options or at any time
thereafter during the term of the stock options. Combination SARs shall be subject to
paragraph 9(b) hereof. Alternative SARs shall be subject to paragraph 9(c) hereof.
Independent SARs shall be subject to paragraph 9(d) hereof. Unless this Plan or the Award
Notice provides otherwise, SARs shall entitle the recipient to receive a payment equal to
the appreciation in the Fair Market Value of a stated number of shares of Common Stock
from the award date to the date of exercise. In the case of SARs granted in combination
with, or in the alternative to, stock options granted prior to the grant of such SARs, the
appreciation in value is from the option price of such related stock option to the Fair
Market Value on the date of exercise. Unless this Plan or the Award Notice provides
otherwise, SARs granted in conjunction with stock options shall be Combination SARs, and
all SARs shall be exercisable between one year and ten years and one day after the date of
their award.




          (b) Terms and Conditions of Combination SARs. Both the stock options granted in
conjunction with Combination SARs and the Combination SARs may be exercised. Combination
SARs shall be exercisable only to the extent the related stock option is exercisable, and
the base from which the value of the Combination SARs is measured at its exercise shall be
the option price of the related stock option. Combination SARs may be exercised either
together with the related stock option or separately. If a Participant exercises a
Combination SAR or related stock option, but not both, the other shall remain outstanding
and shall remain exercisable during the entire exercise period.




          (c) Terms and Conditions of Alternative SARs. Either the stock options granted in
the alternative to Alternative SARs or the Alternative SARs may be exercised, but not
both. Alternative SARs shall be exercisable only to the extent that the related stock
option is exercisable, and the base from which the value of the Alternative SARs is
measured at its exercise shall be the option price of the related stock option. If
related stock options are exercised as to some or all of the shares covered by the Award,
the related Alternative SARs shall be cancelled automatically to the extent of the number
of shares covered by the stock option exercise. Upon exercise of Alternative SARs as to
some or all of the shares covered by the Award, the related stock option shall be
cancelled automatically to the extent of the number of shares covered by such exercise,
and such shares shall again be eligible for grant in accordance with paragraph 5 hereof.




          (d) Terms and Conditions of Independent SARs. Independent SARs shall be
exercisable in whole or in such installments and at such time as may be determined by the
Committee. The base price from which the value of an Independent SAR is measured shall
also be determined by the Committee; provided, however, that such price shall not be less
than the Fair Market Value of the Common Stock on the date of the grant of the Independent
SAR.




          (e) Deemed Exercise. The Committee may provide that an SAR shall be deemed to be
exercised at the close of business on the scheduled expiration date of such SAR, if at
such time the SAR by its terms remains exercisable and, if so exercised, would result in a
payment to the holder of such SAR.




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          (f) Conversion of SARs to Non-Qualified Stock Options. Each unexercised SAR shall be
convertible to a non-qualified option to purchase one share of Common Stock, at the option of the
Committee and with the consent of the Participant to whom that SAR was awarded (or his successor or
assignee). Notwithstanding paragraph 8(b), such an option will have the same exercise price and
expiration date as did the converted SAR, and will have the same other terms and conditions as the
other non-qualified stock options issued to the same Participant and on the same day as the
converted SAR. A share issued upon exercise of such an option will count against the 4,290,900
post-split shares available under paragraph 5. For purposes of the limit set forth in paragraph 5
that Awards covering no more than 650,000 post-split shares of Common Stock may be granted to a
Participant in a fiscal year, the conversion of a SAR into an option in accordance with this
paragraph 9(f) will not count as an Award granted in the fiscal year in which the conversion takes
place.





	 	10.	 	Restricted Stock





          (a) Grants. Awards may be granted in the form of Restricted Stock. Shares of
Restricted Stock shall be awarded in such amounts and at such times during the term of the
Plan as the Committee shall determine.




          (b) Award Restrictions. Restricted Stock shall be subject to such terms and
conditions as the Committee deems appropriate, including restrictions on transferability
and continued employment. No more than 50,000 restricted pre-split shares may be issued
in a single fiscal year. The Committee may modify or accelerate the delivery of shares of
Restricted Stock under such circumstances as it deems appropriate.




          (c) Rights as Stockholders. During the period in which any shares of Restricted
Stock are subject to the restrictions imposed under paragraph 10(b), the Committee may, in
its discretion, grant to the Participant to whom shares of Restricted Stock have been
awarded all or any of the rights of a stockholder with respect to such shares, including,
but not by way of limitation, the right to vote such shares and to receive dividends.




          (d) Evidence of Award. Any shares of Restricted Stock granted under the Plan may
be evidenced in such manner as the Committee deems appropriate, including, without
limitation, book-entry registration or issuance of a stock certificate or certificates.





	 	11.	 	Performance Units





          (a) Grants. Awards may be granted in the form of performance units. Performance
units shall refer to the Units valued by reference to designated criteria established by
the Committee, other than Units which are expressed in terms of Common Stock.




          (b) Performance or Service Criteria. Performance units shall be contingent on the
attainment during a performance period of certain performance and/or service objectives.
The length of the performance period, the performance or service objectives to be
achieved, and the extent to which such objectives have been attained shall be conclusively
determined by the Committee in the exercise of its absolute discretion. Performance and
service objectives may be revised by the Committee during the performance period, in order
to take into consideration any unforeseen events or changes in circumstances.





	 	12.	 	Performance Shares





          (a) Grants. Awards may be granted in the form of performance shares. Performance
shares shall refer to shares of Common Stock or Units which are expressed in terms of
Common Stock, including shares of phantom stock.




          (b) Performance or Service Criteria. Performance shares shall be contingent upon
the attainment during a performance period of certain performance or service objectives.




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The length of the performance period, the performance or service objectives to be
achieved, and the extent to which such objectives have been attained shall be conclusively
determined by the Committee in the exercise of its absolute discretion. Performance and
service objectives may be revised by the Committee during the performance period, in order
to take into consideration any unforeseen events or changes in circumstances.





	 	13.	 	Payment of Awards





          At the discretion of the Committee, payment of Awards may be made in cash, Common
Stock, a combination of cash and Common Stock, or any other form of property as the
Committee shall determine.





	 	14.	 	Dividends and Dividend Equivalents





          If an Award is granted in the form of Restricted Stock, stock options, or performance
shares, or in the form of any other stock-based grant, the Committee may, at any time up
to the time of payment, include as part of an Award an entitlement to receive dividends or
dividend equivalents, subject to such terms and conditions as the Committee may establish.
Dividends and dividend equivalents shall be paid in such form and manner (i.e., lump sum
or installments), and at such time as the Committee shall determine. All dividends or
dividend equivalents which are not paid currently may, at the Committee’s discretion,
accrue interest, be reinvested into additional shares of Common Stock or, in the case of
dividends or dividend equivalents credited in connection with performance shares, be
credited as additional performance shares and paid to the Participant if and when, and to
the extent that, payment is made pursuant to such Award.





	 	15.	 	Termination of Employment





          (a) General Rule. Subject to paragraph 19, if a Participant’s employment with the
Company or a Subsidiary terminates for a reason other than death, disability, retirement,
or any approved reason, all unexercised, unearned or unpaid. Awards shall be cancelled or
forfeited as the case may be, unless otherwise provided in this paragraph or in the
Participant’s Award Notice. The Committee shall have the authority to promulgate rules
and regulations to (i) determine what events constitute disability, retirement, or
termination for an approved reason for purposes of the Plan, and (ii) determine the
treatment of a Participant under the Plan in the event of his death, disability,
retirement, or termination for an approved reason.




          (b) Incentive Stock Options. Unless the Award Notice provides otherwise, any
incentive stock option which has not theretofore expired, shall terminate upon termination
of the Participant’s employment with the Company whether by death or otherwise, and no
shares of Common Stock may thereafter be purchased pursuant to such incentive stock
option, except that:




               (i) Upon termination of employment (other than by death), a Participant may,
within three months after the date of termination of employment, purchase all or part of
any shares of Common Stock which the Participant was entitled to purchase under such
incentive stock option on the date of termination of employment.



               (ii) Upon the death of any Participant while employed with the Company or within
the three-month period referred to in paragraph 15(b)(i) above, the Participant’s estate
or the person to whom the Participant’s rights under the incentive stock option are
transferred by will or the laws of descent and distribution may, within one year after the
date of the Participant’s death, purchase all or part of any shares of Common Stock which
the Participant was entitled to purchase under such incentive stock option on the date of
death.



               Notwithstanding anything in this paragraph 15(b) to the contrary, the Committee may
at any time within the three-month period after the date of termination of a



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Participant’s employment, with the consent of the Participant, the Participant’s estate or
the person to whom the Participant’s rights under the incentive stock options are
transferred by will or the laws of descent and distribution, extend the period for
exercise of the Participant’s incentive stock options to any date not later than the date
on which such incentive stock options would have otherwise expired absent such termination
of employment. Nothing in this paragraph 15(b) shall authorize the exercise of an
incentive stock option after the expiration of the exercise period therein provided, nor
later than ten years after the date of grant.




          (c) Non-Qualified Stock Options. Unless the Award Notice provides otherwise, any
non-qualified stock option which has not theretofore expired shall terminate upon
termination of the Participant’s employment with the Company, and no shares of Common
Stock may thereafter be purchased pursuant to such non-qualified stock option, except
that:




               (i) Upon termination of employment for any reason other than death, discharge by
the Company for cause, or voluntary resignation of the Participant prior to age 60, a
Participant may, within five years after the date of termination of employment, exercise
all or part of the non-qualified stock option which the Participant was entitled to
exercise on the date of termination of employment or subsequently becomes eligible to
exercise pursuant to paragraph 8(b) above.



               (ii) Upon the death of a Participant while employed with the Company or within the
period referred to in paragraph 15(c)(i) above, the Participant’s estate or the person to
whom the Participant’s rights under the non-qualified stock option are transferred by will
or the laws of descent and distribution may, within five years after the date of the
Participant’s death while employed, or within the period referred to in paragraph 15(c)(i)
above, exercise all or part of the non-qualified stock option which the Participant was
entitled to exercise on the date of death.



               Nothing in this paragraph 15(c) shall authorize the exercise of a non-qualified stock
option later than the exercise period set forth in the Award Notice.




	 	16.	 	Nonassignability





          No Award under the Plan shall be subject in any manner to alienation, anticipation, sale,
transfer (except by will or the laws of descent and distribution or pursuant to a qualified
domestic relations order), assignment, pledge or encumbrance, except that all awards of
nonqualified stock options or SAR’s shall be transferable without consideration, subject to
all the terms and conditions to which such nonqualified stock options or SARs are otherwise
subject, to (i) members of a Participant’s immediate family as defined in Rule 16a-1
promulgated under the Exchange Act, or any successor rule or regulation, (ii) trusts for the
exclusive benefit of the Participant or such immediate family members or (iii) entities which
are wholly-owned by the Participant or such immediate family members, provided that (x) there
may be no consideration for any such transfer, and (y) subsequent transfers of transferred
options shall be prohibited except those by will or the laws of descent and distribution.
Following transfer, any such options shall continue to be subject to the same terms and
conditions as were applicable immediately prior to transfer, and except as provided in the
next sentence, the term “Participant” shall be deemed to refer to the transferee. The events
of termination of employment under Section 15(c) hereof shall continue to be applied with
reference to the original Participant and following the termination of employment of the
original Participant, the options shall be exercisable by the transferee only to the extent,
and for the periods specified in Section 15(c), that the original Participant could have
exercised such option. Except as expressly permitted by this paragraph, an Award shall be
exercisable during the Participant’s lifetime only by him.





	 	17.	 	Adjustment of Shares Available





          (a) Changes in Stock. In the event of changes in the Common Stock by reason of a
Common Stock dividend or stock split-up or combination, appropriate adjustment shall be
made




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by the Committee in the aggregate number of shares available under the Plan and the number
of shares, SARs, performance shares, Common Stock units and other stock-based interests
subject to outstanding Awards, without, in the case of stock options, change in the
aggregate purchase price to be paid therefor. Such proper adjustment as may be deemed
equitable may be made by the Committee in its discretion to give effect to any other
change affecting the Common Stock.




          (b) Changes in Capitalization. In case of a merger or consolidation of the
Company with another corporation, a reorganization of the Company, a reclassification of
the Common Stock of the Company, a spin-off of a significant asset, or other changes in
the capitalization of the Company, appropriate provision shall be made for the protection
and continuation of any outstanding Awards by either (i) the substitution, on an equitable
basis, of appropriate stock or other securities or other consideration to which holders of
Common Stock of the Company will be entitled pursuant to such transaction or succession of
transactions, or (ii) by appropriate adjustment in the number of shares issuable pursuant
to the Plan, the number of shares covered by outstanding Awards, the option price of
outstanding stock options, the exercise price of outstanding SARs, the performance or
service criteria or performance period of outstanding performance units, and the
performance or service criteria or performance period of outstanding performance shares,
as deemed appropriate by the Committee.





	 	18.	 	Withholding Taxes





          The Company shall be entitled to deduct from any payment under the Plan, regardless of
the form of such payment, the amount of all applicable income and employment taxes required by
law to be withheld with respect to such payment or may require the participant to pay to it
such tax prior to and as a condition of the making of such payment. A Participant may pay the
amount of taxes required by law to be withheld from an Award by requesting that the Company
withhold from any payment of Common Stock due as a result of such Award, or by delivering to
the Company, shares of Common Stock having a Fair Market Value less than or equal to the
amount of such required withholding taxes.





	 	19.	 	Noncompetition Provision





          Notwithstanding anything contained in this Plan to the contrary, unless the Award
Notice specifies otherwise, a Participant shall forfeit all unexercised, unearned, and/or
unpaid Awards, including Awards earned but not yet paid, all unpaid dividends and dividend
equivalents, and all interest, if any, accrued on the foregoing if, (i) in the opinion of
the Committee, the Participant, without the written consent of the Company, engages
directly or indirectly in any manner or capacity as principal, agent, partner, officer,
director, employee, or otherwise, in any business or activity competitive with the
business conducted by the Company or any Subsidiary; or (ii) the Participant performs any
act or engages in any activity which in the opinion of the Committee is inimical to the
best interests of the Company.





	 	20.	 	Amendments to Awards





          The Committee may at any time unilaterally amend any unexercised, unearned, or unpaid Award,
including Awards earned but not yet paid, to the extent it deems appropriate; provided, however,
that any such amendment which is adverse to the Participant shall require the Participant’s
consent. Notwithstanding the foregoing, the Committee may not amend an Award in any manner that
would result in the imposition of an additional tax under section 409A of the Code on the
Participant holding such Award.





	 	21.	 	Regulatory Approvals and Listings





          Notwithstanding anything contained in this Plan to the contrary, the Company shall
have no obligation to issue or deliver certificates of Common Stock evidencing Awards
resulting in the payment of Common Stock prior to (a) the obtaining of any approval from
any




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governmental agency which the Company shall, in its sole discretion, determine to be
necessary or advisable, (b) the admission of such shares to listing on the stock exchange
on which the Common Stock may be listed, and (c) the completion of any registration or
other qualification of said shares under any state or federal law or ruling of any
governmental body which the Company shall, in its sole discretion, determine to be
necessary or advisable.





	 	22.	 	No Right to Continued Employment or Grants





          Participation in the Plan shall not give any Key Employee any right to remain in the
employ of the Company or any Subsidiary. The Company or, in the case of employment with a
Subsidiary, the Subsidiary, reserves the right to terminate any Key Employee at any time.
Further, the adoption of this Plan shall not be deemed to give any person any right to be
selected as a Participant or to be granted an Award.





	 	23.	 	Amendment





          The Board may suspend or terminate the Plan at any time. In addition, the Board may,
from time to time, amend the Plan in any manner, provided, however, that any such amendment
may be subject to stockholder approval (i) at the discretion of the Board and (ii) to the
extent that shareholder approval may be required by law, including, but not limited to, the
requirements of Rule 16b-3 under the Exchange Act, or any successor rule or regulation.
Notwithstanding the foregoing, the Board may not amend the Plan in any manner that would
result in the imposition of an additional tax under section 409A of the Code on any
Participant.





	 	24.	 	Change in Control and Change in Ownership





          (a) Background. All Participants shall be eligible for the treatment afforded by
this paragraph 24 if there is a Change in Ownership or if their employment terminates
within two years following a Change in Control, unless the termination is due to (i)
death; (ii) disability entitling the Participant to benefits under his employer’s
long-term disability plan; (iii) Cause; (iv) resignation by the Participant other than for
Good Reason; or (v) retirement entitling the Participant to benefits under his employer’s
retirement plan.




          (b) Vesting and Lapse of Restrictions. If a Participant is eligible for treatment
under this paragraph 24, (i) all of the terms and conditions in effect on any unexercised,
unearned, or unpaid Awards shall immediately lapse as of the Acceleration Date; (ii) no
other terms or conditions shall be imposed upon any Awards on or after such date, and in
no event shall any Award be forfeited on or after such date; and (iii) all of his
unexercised, unvested, unearned and/or unpaid Awards or any other outstanding Awards shall
automatically become one hundred percent (100%) vested immediately upon such date.




          (c) Dividends and Dividend Equivalents. If a Participant is eligible for treatment
under this paragraph 24, all unpaid dividends and dividend equivalents and all interest
accrued thereon, if any, shall be treated and paid under this paragraph 24 in the
identical manner and time as the Award under which such dividends or dividend equivalents
have been credited. For example, if upon a Change in Ownership, an Award under this
paragraph 24 is to be paid in a prorated fashion, all unpaid dividends and dividend
equivalents with respect to such Award shall be paid according to the same formula used to
determine the amount of such prorated Award.




          (d) Treatment of Performance Units and Performance Shares. If a Participant holding
either performance units or performance shares is eligible for treatment under this
paragraph 24, the provisions of this paragraph (d) shall determine the manner in which
such performance units and/or performance shares shall be paid to him. For purposes of
making such payment, each “current performance period” (defined to mean a performance
period or term of a performance unit or performance share which period or term has
commenced but not yet ended), shall be treated as terminating upon the Acceleration Date,
and for each such “current performance

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period” and each “completed performance period” (defined to mean a performance period or
term of a performance unit or performance share which has ended but for which the
Committee has not, on the Acceleration Date, made a determination as to whether and to
what degree the performance or service objectives for such period have been attained), it
shall be assumed that the performance or service objectives have been attained at a level
of one hundred percent (100%) or the equivalent thereof. If the Participant is
participating in one or more “current performance periods,” he shall be considered to have
earned and, therefore, to be entitled to receive, a prorated portion of the Awards
previously granted to him for each such performance period. Such prorated portion shall
be determined by multiplying the number of performance shares or performance units, as the
case may be, granted to the Participant by a fraction, the numerator of which is the total
number of whole and partial years (with each partial year being treated as a whole year)
that have elapsed since the beginning of the performance period, and the denominator of
which is the total number of years in such performance period. A Participant in one or
more “completed performance periods” shall be considered to have earned and, therefore, be
entitled to receive all the performance shares and performance units previously granted to
him during each performance period.




          (e) Valuation of Awards. If a Participant is eligible for treatment under this
paragraph 24, his Awards (including those earned as a result of the application of
paragraph 24(d) above) shall be valued and cashed out on the basis of the Change in
Control Price.




          (f) Payment of Awards. If a Participant is eligible for treatment under this
paragraph 24, whether or not he is still employed by the Company or a Subsidiary, he shall
be paid, in a single lump sum cash payment, as soon as practicable but in no event later
than 90 days after the Acceleration Date, for all outstanding Units of Common Stock,
Independent and Combination SARs, stock options (including incentive stock options),
performance units (including those earned as a result of the application of paragraph
24(d) above), and performance shares (including those earned as a result of paragraph
24(d) above), and all other outstanding Awards, including those granted by the Committee
pursuant to its authority under paragraph 3(h) hereof.




          (g) Miscellaneous. Upon a Change in Control or a Change in Ownership, (i) the
provisions of paragraphs 15, 19, and 20 hereof shall become null and void and of no force
and effect insofar as they apply to a Participant who has been terminated under the
conditions described in (a) above; and (ii) no action shall be taken which would affect
the rights of any Participant or the operation of the Plan with respect to any Award to
which the Participant may have become entitled hereunder on or prior to the date of the
Change in Control or Change in Ownership or to which he may become entitled as a result of
such Change in Control or Change in Ownership.




          (h) Legal Fees. The Company shall pay all legal fees and related expenses incurred
by a Participant in seeking to obtain or enforce any payment, benefit or right he may be
entitled to under the Plan after a Change in Control or Change in Ownership; provided,
however, the Participant shall be required to repay any such amounts to the Company to the
extent a court of competent jurisdiction issues a final and non-appealable order setting
forth the determination that the position taken by the Participant was frivolous or
advanced in bad faith.





	 	25.	 	No Right, Title or Interest in Company Assets





          No Participant shall have any rights as a stockholder as a result of participation in the Plan
until the date of issuance of a stock certificate in his name, and, in the case of Restricted
Stock, stock options, performance shares or any other stock-based grant, such rights are granted to
the Participant under paragraph 10(c) hereof. To the extent any person acquires a right to receive
payments from the Company under this Plan, such rights shall be no greater than the rights of an
unsecured creditor of the Company.





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