Document:

Prepared by MerrillDirect

Exhibit 10.18 

LETTER OF AMENDMENT TO THE EMPLOYMENT AGREEMENT OF

KIM S. BRACE

 

June 8, 2001

 

Kim S. Brace

Executive Vice President and

Chief Administrative Officer

Pacific Northwest Bank

 

RE:       Employment
Contract

 

Dear Kim:

 

This is to certify that on May 7, 2001
the Compensation Committee of the Board of Directors, Pacific Northwest Bank
approved an additional two year extension of your Employment Contract to June
15, 2003.

 

The “window” for lump sum payment remains
executable at your option throughout this period, and all other terms and
conditions remain in effect.  Corporate
Counsel is drafting the formal extension but you may consider it to be in full
force and effect.  The formal agreement,
when completed, will supercede this letter.

 

The board and I greatly appreciate your
willingness to continue on this great adventure.

 

Sincerely,

 

	/s/ PATRICK M. FAHEY
	

	Patrick M. Fahey
	President & CEO

 

PMF/cm

 

Bcc:      Glen
Garrison, Keller-Rohrback

             Eric Jensen, Finance

             Chandler Dalbey, Human
ResourcesPrepared by MerrillDirect

As Amended March 1, 2001

INCENTIVE PLAN OF

EDGE
PETROLEUM CORPORATION

(As Amended and Restated
Effective as of July 27, 1999)

             1.          Plan. 
This Incentive Plan of Edge Petroleum Corporation (the “Plan”) was
adopted by Edge Petroleum Corporation to reward certain corporate officers and
key employees of Edge Petroleum Corporation and certain independent consultants
by enabling them to acquire shares of common stock of Edge Petroleum
Corporation.

             2.          Objectives.  This Plan is designed to attract and retain key employees of the
Company and its Subsidiaries (as hereinafter defined), to attract and retain
qualified directors of the Company, to attract and retain consultants and other
independent contractors, to encourage the sense of proprietorship of such
employees, directors and independent contractors and to stimulate the active
interest of such persons in the development and financial success of the
Company and its Subsidiaries.  These
objectives are to be accomplished by making Awards (as hereinafter defined) under
this Plan and thereby providing Participants (as hereinafter defined) with a
proprietary interest in the growth and performance of the Company and its
Subsidiaries.

             3.          Definitions.  As used herein, the terms set forth below shall have the
following respective meanings:

             “Annual Director Award Date” means,
for each year beginning on or after the IPO Closing Date, the first business
day of the month next succeeding the date upon which the annual meeting of
stockholders of the Company is held in such year.

             “Authorized Officer” means the
Chairman of the Board or the Chief Executive Officer of the Company (or any
other senior officer of the Company to whom either of them shall delegate the
authority to execute any Award Agreement).

             “Award” means an Employee Award, a
Director Award or an Independent Contractor Award.

             “Award Agreement” means any
Employee Award Agreement, Director Award Agreement or Independent Contractor
Award Agreement.

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

             “Cash Award” means an award
denominated in cash.

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

             “Committee” means the Compensation
Committee of the Board or such other committee of the Board as is designated by
the Board to administer the Plan.

             “Common Stock” means the Common
Stock, par value $.01 per share, of the Company.

             “Company” means Edge Petroleum
Corporation, a Delaware corporation.

             “Director” means an individual
serving as a member of the Board.

             “Director Award” means the grant of
a Director Option or a Director Stock Award.

             “Director Award Agreement” means a
written agreement between the Company and a Participant who is a Nonemployee
Director setting forth the terms, conditions and limitations applicable to a
Director Award.

             “Director Stock Award” means a
Stock Award granted to a Nonemployee Director pursuant to the applicable terms,
conditions and limitations specified in paragraph 9(b) hereof.

             “Disability” means, with respect to
a Nonemployee Director, the inability to perform the duties of a Director for a
continuous period of more than three months by reason of any medically
determinable physical or mental impairment.

             “Dividend Equivalents” means, with
respect to shares of Restricted Stock 
that are to be issued at the end of the Restriction Period, an amount
equal to all dividends and other distributions (or the economic equivalent
thereof) that are payable to stockholders of record during the Restriction
Period on a like number of shares of Common Stock.

             “Employee” means an employee of the
Company or any of its Subsidiaries and an individual who has agreed to become
an Employee of the Company or any of its Subsidiaries and actually becomes such
an Employee within the following six months.

             “Employee Award” means the grant of
any Option, SAR, Stock Award, Cash Award or Performance Award, whether granted
singly, in combination or in tandem, to a Participant who is an Employee
pursuant to such applicable terms, conditions and limitations as the Committee
may establish in order to fulfill the objectives of the Plan.

             “Employee Award Agreement” means a
written agreement between the Company and a Participant who is an Employee
setting forth the terms, conditions and limitations applicable to an Employee
Award.

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

             “Fair Market Value” of a share of
Common Stock means, as of a particular date, (i) if shares of Common Stock are
listed on a national securities exchange, the mean between the highest and
lowest sales price per share of Common Stock on the consolidated transaction
reporting system for the principal national securities exchange on which shares
of Common Stock are listed on that date, or, if there shall have been no such
sale so reported on that date, on the last preceding date on which such a sale
was so reported, (ii) if shares of Common Stock are not so listed but are
quoted on the Nasdaq National Market, the mean between the highest and lowest
sales price per share of Common Stock reported by the Nasdaq National Market on
that date, or, if there shall have been no such sale so reported on that date,
on the last preceding date on which such a sale was so reported,  (iii) if the Common Stock is not so listed
or quoted, the mean between the closing bid and asked price on that date, or,
if there are no quotations available for such date, on the last preceding date
on which such quotations shall be available, as reported by the Nasdaq Stock
Market, or, if not reported by the Nasdaq Stock Market, by the National
Quotation Bureau Incorporated or (iv) if shares of Common Stock are not
publicly traded, the most recent value determined by an independent appraiser
appointed by the Company for such purpose; provided that, notwithstanding the
foregoing, “Fair Market Value” in the case of any Award made in connection with
the IPO, means the price per share to the public of the Common Stock in the
IPO, as set forth in the final prospectus relating to the IPO.

             “Incentive Option” means an Option
that is intended to comply with the requirements set forth in Section 422 of
the Code.

             “Independent Contractor” means a
person providing services to the Company or any of its Subsidiaries except an
Employee or Nonemployee Director.

             “Independent Contractor Award” means
the grant of any Nonqualified Stock Option, SAR, Stock Award, Cash Award or
Performance Award, whether granted singly, in combination or in tandem, to a
Participant who is an Independent Contractor pursuant to such applicable terms,
conditions and limitations as the Committee may establish in order to fulfill
the objectives of the Plan.

             “Independent Contractor Award
Agreement” means a written agreement between the Company and a Participant who
is an Independent Contractor setting forth the terms, conditions and
limitations applicable to an Independent Contractor Award.

             “IPO” means the first time a
registration statement filed under the Securities Act of 1933 and respecting an
underwritten primary offering by the Company of shares of Common Stock is declared
effective under that Act and the shares registered by that registration
statement are issued and sold by the Company (otherwise than pursuant to the
exercise of any overallotment option).

             “IPO Closing Date” means the date
on which the Company first receives payment for the shares of Common Stock it
sells in the IPO.

             “Nonemployee Director” has the
meaning set forth in paragraph 4(b) hereof.

             “Nonqualified Stock Option” means
an Option that is not an Incentive Option.

             “Option” means a right to purchase
a specified number of shares of Common Stock at a specified price.

             “Participant” means an Employee,
Director or Independent Contractor to whom an Award has been made under this
Plan.

             “Performance Award” means an award
made pursuant to this Plan to a Participant who is an Employee or Independent
Contractor who is subject to the attainment of one or more Performance Goals.

             “Performance Goal” means a standard
established by the Committee, to determine in whole or in part whether a
Performance Award shall be earned.

             “Restricted Stock” means any Common
Stock that is restricted or subject to forfeiture provisions.

             “Restriction Period” means a period
of time beginning as of the date upon which an Award of Restricted Stock is
made pursuant to this Plan and ending as of the date upon which the Common
Stock subject to such Award is no longer restricted or subject to forfeiture
provisions.

             “Rule 16b-3” means Rule 16b-3
promulgated under the Exchange Act, or any successor rule.

             “SAR” means a right to receive a
payment, in cash or Common Stock, equal to the excess of the Fair Market Value
or other specified valuation of a specified number of shares of Common Stock on
the date the right is exercised over a specified strike price, in each case, as
determined by the Committee.

             “Stock Award” means an award in the
form of shares of Common Stock or units denominated in shares of Common Stock.

             “Subsidiary” means (i) in the case
of  a corporation, any corporation of
which the Company directly or indirectly owns shares representing more than 50%
of the combined voting power of the shares of all classes or series of capital
stock of such corporation which have the right to vote generally on matters
submitted to a vote of the stockholders of such corporation and (ii) in the
case of a partnership or other business entity not organized as a corporation,
any such business entity of which the Company directly or indirectly owns more
than 50% of the voting, capital or profits interests (whether in the form of
partnership interests, membership interests or otherwise).

             4.          Eligibility.

(a)         Employees.   Key Employees eligible for Employee Awards
under this Plan are those who hold positions of responsibility and whose
performance, in the judgment of the Committee, can have a significant effect on
the success of the Company and its Subsidiaries, including those individuals
who are expected to become Employees within six months.

(b)        Directors.   Directors eligible for Director Awards
under this Plan are those who are not employees of the Company or any of its
Subsidiaries (“Nonemployee Directors”).

(c)         Independent
Contractors.  Independent
Contractors eligible for Independent Contractor Awards under this Plan are
those Independent Contractors providing services to, or who will provide services
to, the Company or any of its Subsidiaries.

             5.          Common Stock Available for Awards.  Subject to the provisions of
paragraph 15 hereof, there shall be available for Awards under this Plan
granted wholly or partly in Common Stock (including rights or options that may
be exercised for or settled in Common Stock) an aggregate of 1,200,000 shares
of Common Stock, all of which shall be available for Incentive Options.  The number of shares of Common Stock that
are the subject of Awards under this Plan, that are forfeited or terminated,
expire unexercised, are settled in cash in lieu of Common Stock or in a manner
such that all or some of the shares covered by an Award are not issued to a
Participant or are exchanged for Awards that do not involve Common Stock, shall
again immediately become available for Awards hereunder.  The Committee may from time to time adopt
and observe such procedures concerning the counting of shares against the Plan
maximum as it may deem appropriate.  The
Board and the appropriate officers of the Company shall from time to time take
whatever actions are necessary to file any required documents with governmental
authorities, stock exchanges and transaction reporting systems to ensure that
shares of Common Stock are available for issuance pursuant to Awards.

             6.          Administration.

(a)         This Plan, as it applies to
Participants who are Employees or Independent Contractors but not with respect
to Participants who are Nonemployee Directors, shall be administered by the
Committee.  To the extent required in
order for Employee Awards to be exempt from Section 16 of the Exchange Act by
virtue of the provisions of Rule 16b-3, the 
Committee shall consist of at least two members of the Board who meet
the requirements of the definition of “non-employee director” set forth in Rule
16b-3(b)(3)(i) promulgated under the Exchange Act.

(b)        Subject to the provisions hereof,
insofar as this Plan relates to the Employee Awards or Independent Contractor
Awards, the Committee shall have full and exclusive power and authority to
administer this Plan and to take all actions that are specifically contemplated
hereby or are necessary or appropriate in connection with the administration
hereof.  Insofar as this Plan relates to
Employee Awards or Independent Contractor Awards, the Committee shall also have
full and exclusive power to interpret this Plan and to adopt such rules,
regulations and guidelines for carrying out this Plan as it may deem necessary
or proper, all of which powers shall be exercised in the best interests of the
Company and in keeping with the objectives of this Plan.  The Committee may, in its discretion,
provide for the extension of the exercisability of an Employee Award or
Independent Contractor Award, accelerate the vesting or exercisability of an
Employee Award or Independent Contractor Award, eliminate or make less
restrictive any restrictions contained in an Employee Award or Independent
Contractor Award, waive any restriction or other provision of this Plan
(insofar as such provision relates to Employee Awards or to Independent
Contractor Awards) or an Employee Award or Independent Contractor Award or
otherwise amend or modify an Employee Award or Independent Contractor Award in
any manner that is either (i) not adverse to the Participant to whom such
Employee Award or Independent Contractor Award was granted or (ii) consented to
by such Participant.  The Committee may
make an award to an individual who it expects to become an Employee of the
Company or any of its Subsidiaries within the next six months, with such award
being subject to the individuals actually becoming an Employee within such time
period, and subject to such other terms and conditions as may be established by
the Committee.  The Committee may
correct any defect or supply any omission or reconcile any inconsistency in
this Plan or in any Employee Award or Independent Contractor Award in the
manner and to the extent the Committee deems necessary or desirable to further
the Plan purposes.  Any decision of the
Committee in the interpretation and administration of this Plan shall lie
within its sole and absolute discretion and shall be final, conclusive and
binding on all parties concerned.

(c)         No member of the Committee or officer
of the Company to whom the Committee has delegated authority in accordance with
the provisions of paragraph 7 of this Plan shall be liable for anything done or
omitted to be done by him or her, by any member of the Committee or by any
officer of the Company in connection with the performance of any duties under
this Plan, except for his or her own willful misconduct or as expressly
provided by statute.

             7.          Delegation of Authority.  The Committee may delegate to the Chief
Executive Officer and to other senior officers of the Company its duties under
this Plan pursuant to such conditions or limitations as the Committee may
establish, except that the Committee may not delegate to any person the
authority to grant Awards to, or take other action with respect to,
Participants who are subject to Section 16 of the Exchange Act.

             8.          Employee and Independent Contractor Awards.

(a)         The Committee shall determine the type
or types of Employee Awards to be made under this Plan and shall designate from
time to time the Employees who are to be the recipients of such Awards.  Each Employee Award may be embodied in an
Employee Award Agreement, which shall contain such terms, conditions and
limitations as shall be determined by the Committee in its sole discretion and
shall be signed by the Participant to whom the Employee Award is made and by an
Authorized Officer for and on behalf of the Company.  Employee Awards may consist of those listed in this paragraph
8(a) hereof and may be granted singly, in combination or in tandem.  Employee Awards may also be made in
combination or in tandem with, in replacement of, or as alternatives to, grants
or rights under this Plan or any other employee plan of the Company or any of
its Subsidiaries, including the plan of any acquired entity. An Employee Award
may provide for the grant or issuance of additional, replacement or alternative
Employee Awards upon the occurrence of specified events, including the exercise
of the original Employee Award granted to a Participant.  All or part of an Employee Award may be
subject to conditions established by the Committee, which may include, but are
not limited to, continuous service with the Company and its Subsidiaries,
achievement of specific business objectives, increases in specified indices,
attainment of specified growth rates and other comparable measurements of
performance.  Upon the termination of
employment by a Participant who is an Employee, any unexercised, deferred,
unvested or unpaid Employee Awards shall be treated as set forth in the
applicable Employee Award Agreement.

             (i)          Stock Option.  An Employee Award may be in the form of an Option.  An Option awarded pursuant to this Plan may
consist of an Incentive Option or a Nonqualified Option.  The price at which shares of Common Stock
may be purchased upon the exercise of an Incentive Option shall be not less
than the Fair Market Value of the Common Stock on the date of grant.  The price at which shares of Common Stock
may be purchased upon the exercise of a Nonqualified Option shall be not less
than the Fair Market Value of the Common Stock on the date of grant.  Subject to the foregoing provisions, the
terms, conditions and limitations applicable to any Options awarded pursuant to
this Plan, including the term of any Options and the date or dates upon which
they become exercisable, shall be determined by the Committee. \

             (ii)         Stock Appreciation Right.  An Employee Award may be in the form of an
SAR.   The terms, conditions and
limitations applicable to any SARs awarded pursuant to this Plan, including the
term of any SARs and the date or dates upon which they become exercisable,
shall be determined by the Committee.

             (iii)        Stock Award.  An Employee Award may be in the form of a
Stock Award.  The terms, conditions and
limitations applicable to any Stock Awards granted pursuant to this Plan shall
be determined by the Committee.

             (iv)       Cash Award.  An Employee Award may be in the form of a
Cash Award. The terms, conditions and limitations applicable to any Cash Awards
granted pursuant to this Plan shall be determined by the Committee.

             (v)        Performance Award.  Without limiting the type or number of  Employee Awards that may be made under the
other provisions of this Plan, an Employee Award may be in the form of a
Performance Award.  A Performance Award
shall be paid, vested or otherwise deliverable solely on account of the
attainment of one or more pre–established, objective Performance Goals
established by the Committee prior to the earlier to occur of (x) 90 days after
the commencement of the period of service to which the Performance Goal relates
and (y) the lapse of 25% of the period of service (as scheduled in good faith
at the time the goal is established), and in any event while the outcome is
substantially uncertain.  A Performance
Goal is objective if a third party having knowledge of the relevant facts could
determine whether the goal is met.  
Such a Performance Goal may be based on one or more business criteria
that apply to the individual, one or more business units of the Company, or the
Company as a whole, and may include one or more of the following: increased
revenue, net income, stock price, market share, earnings per share, return on
equity, return on assets or  decrease in
costs.  Unless otherwise stated, such a
Performance Goal need not be based upon an increase or positive result under a
particular business criterion and could include, for example, maintaining the
status quo or limiting economic losses (measured, in each case, by reference to
specific business criteria). In interpreting Plan provisions applicable to
Performance Goals and Performance Awards, it is the intent of the Plan to
conform with the standards of Section 162(m) of the Code and Treasury
Regulation §1.16227(e)(2)(i), and the Committee in establishing such goals and
interpreting the Plan shall be guided by such provisions.  Prior to the payment of any compensation
based on the achievement of Performance Goals, the Committee must certify in
writing that applicable Performance Goals and any of the material terms thereof
were, in fact, satisfied.  Subject to
the foregoing provisions, the terms, conditions and limitations applicable to
any Performance Awards made pursuant to this Plan shall be determined by the
Committee.

(b)        Notwithstanding anything to the contrary
contained in this Plan, the following limitations shall apply to any Employee
Awards made hereunder:

             (i)          no
Participant may be granted, during any one–year period, Employee Awards
consisting of Options or SARs that are exercisable for more than 135,000 shares
of Common Stock;

             (ii)         no Participant may be granted, during any one–year
period, Stock Awards covering or relating to more than 135,000 shares of Common
Stock (the limitation set forth in this clause (ii), together with the
limitation set forth in clause (i) above, being hereinafter collectively
referred to as the “Stock Based Awards Limitations”); and

             (iii)        no Participant may be granted Employee Awards consisting of
cash or in any other form permitted under this Plan (other than Employee Awards
consisting of Options or SARs or otherwise consisting of shares of Common Stock
or units denominated in such shares) in respect of any one–year period
having a value determined on the date of grant in excess of $500,000.

(c)         The Committee shall have the sole
responsibility and authority to determine the type or types of Independent
Contractor Awards to be made under this Plan and may make any such Awards as
could be made to an Employee, other than Incentive Options; provided that the
limitations described in paragraph 8(b) shall be inapplicable to Independent
Contractor Awards.

             9.          Director Awards.  Each Nonemployee Director of the Company shall be granted
Director Awards in accordance with this paragraph 9 and subject to the
applicable terms, conditions and limitations set forth in this Plan and the
applicable Director Award Agreement. 
Notwithstanding anything to the contrary contained herein, Director
Awards shall not be made in any year in which a sufficient number of shares of
Common Stock are not available to make such Awards under this Plan.

(a)         Director
Options.  On the IPO Closing
Date, each Nonemployee Director shall be automatically awarded a Director
Option number of shares of Common Stock determined in the following table:

	Years
  of Service With the 

  Company or its Predecessors	 	Number
  of Shares 

  Subject to Option
	

	 	

	 	4
  years or greater	 	8,000	 
	 	3
  to 4 years	 	6,000	 
	 	2
  to 3 years	 	4,000	 
	 	2
  years or less	 	2,000	 

In
addition, on each Annual Director Award Date, each Nonemployee Director shall
automatically be granted a Director Option that provides for the purchase of
3,000 shares of Common Stock.  Each
Director Option shall have a term of ten years from the date of grant,
notwithstanding any earlier termination of the status of the holder as a
Nonemployee Director.  The purchase
price of each share of Common Stock subject to a Director Option shall be equal
to the Fair Market Value of the Common Stock on the date of grant.  All Director Options granted after
July 27, 1999 shall vest and become exercisable on the second
anniversary of the date of grant.  All
unvested Director Options shall be forfeited if the Nonemployee Director
resigns as a Director without the consent of a majority of the other Directors.

                           Any Award of Director
Options shall be embodied in a Director Award Agreement, which shall contain
the terms, conditions and limitations set forth above and shall be signed by
the Participant to whom the Director Options are granted and by an Authorized
Officer for and on behalf of the Company.

(b)        Director
Stock Award.  On each Annual
Director Award Date after July 27, 1999, each Nonemployee Director
who was serving as such on the date immediately preceding the most recent
annual meeting of stockholders, shall automatically be awarded a number of
shares of Common Stock, in lieu of one-half of the annual retainer to be paid
to the Nonemployee Director for the preceding twelve months in cash; provided,
however, that, in advance of the payment of any such annual retainer, the
Board, in its sole discretion may reduce the percentage of such annual retainer
that is to be paid in Common Stock or may provide that no portion of such
annual retainer shall be paid in Common Stock. 
A number of shares of Common Stock (rounded up to the nearest whole
number) having a Fair Market Value equal to 50% (or such lesser percentage as
is specified by the Board) of the annual retainer otherwise to be paid to the
Nonemployee Director for the preceding twelve months shall be awarded.

             10.        Payment of Awards.

(a)         General.  Payment of Employee Awards or Independent
Contractor Awards may be made in the form of cash or Common Stock, or a
combination thereof, and may include such restrictions as the Committee shall
determine, including, in the case of Common Stock, restrictions on transfer and
forfeiture provisions.  If payment of an
Employee Award or Independent Contractor Award is made in the form of
Restricted Stock, the applicable Award Agreement relating to such shares shall
specify whether they are to be issued at the beginning or end of the
Restriction Period.  In the event that
shares of Restricted Stock are to be issued at the beginning of the Restriction
Period, the certificates evidencing such shares (to the extent that such shares
are so evidenced) shall contain appropriate legends and restrictions that
describe the terms and conditions of the restrictions applicable thereto.  In the event that shares of Restricted Stock
are to be issued at the end of the Restricted Period, the right to receive such
shares shall be evidenced by book entry registration or in such other manner as
the Committee may determine.

(b)        Deferral.  With the approval of the Committee, amounts
payable in respect of Employee Awards or Independent Contractor Awards may be
deferred and paid either in the form of installments or as a lump sum payment.  The Committee may permit selected
Participants to elect to defer payments of some or all types of Employee Awards
or Independent Contractor Awards in accordance with procedures established by
the Committee.  Any deferred payment of
an Employee Award or Independent Contractor Award, whether elected by the
Participant or specified by the Award Agreement or by the Committee, may be
forfeited if and to the extent that the Award Agreement so provides.

(c)         Dividends
and Interest.  Rights to
dividends or Dividend Equivalents may be extended to and made part of any
Employee Award or Independent Contractor Award consisting of shares of Common
Stock or units denominated in shares of Common Stock, subject to such terms,
conditions and restrictions as the Committee may establish.  The Committee may also establish rules and
procedures for the crediting of interest on deferred cash payments and Dividend
Equivalents for Employee Awards or Independent Contractor Awards consisting of
shares of Common Stock or units denominated in shares of Common Stock.

(d)        Substitution
of Awards.  At the discretion
of the Committee, a Participant who is an Employee or Independent Contractor
may be offered an election to substitute an Employee Award or Independent
Contractor Award for another Employee Award or Independent Contractor Award or
Employee Awards or Independent Contractor Awards of the same or different type.

                           11.        Stock
Option Exercise.   The price
at which shares of Common Stock may be purchased under an Option shall be paid
in full at the time of exercise in cash or, if elected by the optionee, the
optionee may purchase such shares by means of tendering Common Stock or
surrendering another Award, including Restricted Stock or Director Restricted
Stock, valued at Fair Market Value on the date of exercise, or any combination
thereof.  The Committee shall determine
acceptable methods for Participants who are Employees or Independent
Contractors to tender- Common Stock or other Employee Awards or Independent
Contractor Awards; provided that any Common Stock that is or was the subject of
an Employee Award or Independent Contractor Award may be so tendered only if it
has been held by the Participant for six months.  The Committee may provide for procedures to permit the exercise
or purchase of such Awards by use of the proceeds to be received from the sale
of Common Stock issuable pursuant to an Employee Award or Independent
Contractor Award.  Unless otherwise
provided in the applicable Award Agreement, in the event shares of Restricted
Stock are tendered as consideration for the exercise of an Option, a number of
the shares issued upon the exercise of the Option, equal to the number of
shares of Restricted Stock or Director Restricted Stock used as consideration
therefor, shall be subject to the same restrictions as the Restricted Stock or
Director Restricted Stock so submitted as well as any additional restrictions
that may be imposed by the Committee.

                           12.        Taxes.  The Company shall have the right to deduct
applicable taxes from any Employee Award payment and withhold, at the time of
delivery or vesting of cash or shares of Common Stock under this Plan, an
appropriate amount of cash or number of shares of Common Stock or a combination
thereof for payment of taxes required by law or to take such other action as
may be necessary in the opinion of the Company to satisfy all obligations for
withholding of such taxes.  The
Committee may also permit withholding to be satisfied by the transfer to the Company
of shares of Common Stock theretofore owned by the holder of the Employee Award
with respect to which withholding is required. 
If shares of Common Stock are used to satisfy tax withholding, such
shares shall be valued based on the Fair Market Value when the tax withholding
is required to be made.  The Committee
may provide for loans, on either a short term or demand basis, from the Company
to a Participant who is an Employee or Independent Contractor to permit the
payment of taxes required by law.

                           13.        Amendment,
Modification, Suspension or Termination.  The Board may amend, modify, suspend or terminate this Plan for
the purpose of meeting or addressing any changes in legal requirements or for
any other purpose permitted by law, except that (i) no amendment or alteration
that would adversely affect the rights of any Participant under any Award
previously granted to such Participant shall be made without the consent of
such Participant and (ii) no amendment or alteration shall be effective prior
to its approval by the  stockholders of
the Company to the extent such approval is then required pursuant to Rule 16b-3
in order to preserve the applicability of any exemption provided by such rule
to any Award then outstanding (unless the holder of such Award consents) or to
the extent stockholder approval is otherwise required by applicable legal
requirements.

                           14.        Assignability.  Unless otherwise determined by the Committee
and provided in the Award Agreement, no Award or any other benefit under this
Plan constituting a derivative security within the meaning of
Rule 16a-1(c) under the Exchange Act shall be assignable or otherwise
transferable except by will or the laws of descent and distribution or pursuant
to a qualified domestic relations order as defined by the Code or Title I of
the Employee Retirement Income Security Act, or the rules thereunder.  The Committee may prescribe and include in
applicable Award Agreements other restrictions on transfer.  Any attempted assignment of an Award or any
other benefit under this Plan in violation of this paragraph 14 shall be null
and void.

                           15.        Adjustments.

             (a)         The
existence of outstanding Awards shall not affect in any manner the right or
power of the Company or its stockholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in the capital
stock of the Company or its business or any merger or consolidation of the
Company, or any issue of bonds, debentures, preferred or prior preference stock
(whether or not such issue is prior to, on a parity with or junior to the
Common Stock) or the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of its assets or business, or any other corporate
act or proceeding of any kind, whether or not of a character similar to that of
the acts or proceedings enumerated above.

             (b)        In
the event of any subdivision or consolidation of outstanding shares of Common
Stock, declaration of a dividend payable in shares of Common Stock or other
stock split, then, except with respect to the Existing Options, (i) the number
of shares of Common Stock reserved under this Plan, (ii) the number of shares
of Common Stock covered by outstanding Awards in the form of Common Stock or
units denominated in Common Stock, (iii) the exercise or other price in respect
of such Awards, (iv) the appropriate Fair Market Value and other price
determinations for such Awards, (v) the number of  shares of Common Stock covered by Director Options automatically
granted  pursuant to paragraph 9(a)
hereof and (vi) the Stock Based Awards Limitations shall each be
proportionately adjusted by the Board to reflect such transaction.  In the event of any other recapitalization
or capital reorganization of the Company, any consolidation or merger of the
Company with another corporation or entity, the adoption by the Company of any
plan of exchange affecting the Common Stock or any distribution to holders of
Common Stock of securities or property (other than normal cash dividends or
dividends payable in Common Stock), the Board shall make appropriate
adjustments to (i) the number of shares of Common Stock covered by Awards in
the form of Common Stock or units denominated in Common Stock, (ii) the
exercise or other price in respect of such Awards, (iii) the appropriate Fair
Market Value and other price determinations for such Awards, (iv) the number
of  shares of Common Stock covered by
Director Options automatically granted 
pursuant to paragraph 9(a) hereof and (v) the Stock Based Awards
Limitations to give effect to such transaction shall each be proportionately
adjusted by the Board to reflect such transaction; provided that such
adjustments shall only be such as are necessary to maintain the proportionate
interest of the holders of the Awards and preserve, without exceeding, the
value of such Awards.  In the event of a
corporate merger, consolidation, acquisition of property or stock, separation,
reorganization or liquidation, the Board shall be authorized to issue or assume
Awards by means of substitution of new Awards, as appropriate, for previously
issued Awards or to assume previously issued Awards as part of such adjustment.

             (c)         In
the event of a corporate merger, consolidation, acquisition of property or
stock, separation, reorganization or liquidation, the Board may make such
adjustments to outstanding Awards or other provisions for the disposition of
outstanding Awards as it deems equitable, and shall be authorized, in its
discretion, (i) to provide for the substitution of a new Award or other
arrangement (which, if applicable, may be exercisable for such property or
stock as the Board determines) for an outstanding Award or the assumption of an
outstanding Award, regardless of whether in a transaction to which Section
424(a) of the Code applies, (ii) to provide, prior to the transaction, for the
acceleration of the vesting and exercisability of, or lapse of restrictions
with respect to, the outstanding Award and, if the  transaction is a cash merger, to provide for the termination of
any portion of the Award that remains unexercised at the time of such
transaction or (iii) to provide for the acceleration of the vesting and
exercisability of an outstanding Award and the cancellation thereof in exchange
for such payment as shall be mutually agreeable to the Participant and the
Board.

                           16.        Restrictions.  No Common Stock or other form of payment
shall be issued with respect to any Award unless the Company shall be satisfied
based on the advice of its counsel that such issuance will be in compliance
with applicable federal and state securities laws.  It is the intent of the Company that grants of Awards under this
Plan comply with Rule 16b-3 with respect to persons subject to Section 16 of
the Exchange Act unless otherwise provided herein or in an Award Agreement,
that any ambiguities or inconsistencies in the construction of such an Award or
this Plan be interpreted to give effect to such intention.  Certificates evidencing shares of Common
Stock delivered under this Plan (to the extent that such shares are so
evidenced) may be subject to such stop transfer orders and other restrictions
as the Committee may deem advisable under the rules, regulations and other
requirements of the Securities and Exchange Commission, any securities exchange
or transaction reporting system upon which the Common Stock is then listed or
to which it is admitted for quotation and any applicable federal or state
securities law.  The Committee may cause
a legend or legends to be placed upon such certificates (if any) to make
appropriate reference to such restrictions.

                           17.        Unfunded
Plan.  Insofar as it provides
for Awards of cash, Common Stock or rights thereto, this Plan shall be
unfunded.  Although bookkeeping accounts
may be established with respect to Participants who are entitled to cash,
Common Stock or rights thereto under this Plan, any such accounts shall be used
merely as a bookkeeping convenience. 
The Company shall not be required to segregate any assets that may at
any time be represented by cash, Common Stock or rights thereto, nor shall this
Plan be construed as providing for such segregation, nor shall the Company, the
Board or the Committee be deemed to be a trustee of any cash, Common Stock or
rights thereto to be granted under this Plan. 
Any liability or obligation of the Company to any Participant with respect
to an Award of cash, Common Stock or rights thereto under this Plan shall be
based solely upon any contractual obligations that may be created by this Plan
and any Award Agreement, and no such liability or obligation of the Company
shall be deemed to be secured by any pledge or other encumbrance on any
property of the Company.  Neither the
Company nor the Board nor the Committee shall be required to give any security
or bond for the performance of any obligation that may be created by this Plan.

                           18.        Governing
Law.  This Plan and all
determinations made and actions taken pursuant hereto, to the extent not
otherwise governed by mandatory provisions of the Code or the securities laws
of the United States, shall be governed by and construed in accordance with the
laws of the State of Delaware.

                           19.        Effectiveness.  The Plan as hereby amended and restated
shall be effective as of July 27, 1999.

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