Document:

Exhibit 10.2

 

July 5, 2006

 

Mr. John McCormack

20791 Via Corta

San Jose, CA  
95120

 

Dear Mr. McCormack:

 

We are pleased to offer you a position with Websense, Inc. This
letter summarizes the offer’s terms and conditions.  This offer is contigent upon the successful
completion of a background check.

 

Websense agrees to employ you in the position of Senior Vice President, Product Development,
beginning July 17, 2006.  Your beginning
salary while employed by Websense will be $10,576.92 biweekly.  An additional 25% of your base
compensation may be earned as part of a quarterly and year-end bonus, based
upon completion of our corporate objectives. 
Your job is exempt, which means you are not subject to
the minimum wage and overtime provisions of the Federal Fair Labor Standards
Act (FLSA).

 

Websense
will provide a relocation bonus of $150,000 upon hire, to be used toward the
reimbursement of incremental expenses incurred by your move to San Diego.  This reimbursement is subject to payroll tax
and withholding requirements.

 

Upon entering into a contract for the sale of your home in San Jose or the
purchase of a home in San Diego, Websense will provide a second
relocation bonus of $175,000 to be used toward the reimbursement of incremental
relocation expenses.  This reimbursement
is subject to payroll tax and withholding requirements.

 

Websense
will directly pay the cost of transporting your personal belongings to San
Diego through our relocation program (estimated value per moving company
TBD).  These costs must be approved by
Websense’s Human Resources department before they are incurred.  In the event you need to move your household
goods twice in a two year time frame (two years from your start of employment
at Websense), Websense will directly pay the cost of the two moves.

 

Should you
terminate your employment with Websense within one year of joining, all moving
expenses must be repaid to the company.

 

 

In addition to your cash compensation, you will also receive a
non-qualified stock option to purchase 200,000
shares of Websense common stock subject to Board approval.  One quarter of your option will cliff vest
one year after the grant date, with the remaining options vesting monthly for
the remaining three years.  Your option
exercise price is the closing price of Websense’s common stock on the day your
employment begins.

 

In the event the Company terminates your employment other than for
Cause as defined below, you will receive severance pay in the form of six
months of base salary paid in six equal monthly installments, less standard
deductions and withholdings.  The
severance benefits are contingent upon you providing the Company with a
fully-effective waiver and release of claims in a form satisfactory to the
Company and your compliance with the Company’s standard non-competition and
non-solicitation requirements.

 

“Cause” for termination shall mean a
termination of your employment by the Company based upon a good faith
determination by the Company that one or more of the following has occurred: (a) your
commission of a material act of fraud with respect to the Company, (b) your
intentional refusal or willful failure to carry out the reasonable instructions
of the Company, (c) your conviction of, or plea of nolo contendere to, at
any time, a misdemeanor crime of moral turpitude or a felony (even if such has
occurred prior to your employment with the Company), (d) your gross
misconduct in connection with the performance of your duties, or (e) your
material breach of your obligations to the Company or any agreement between you
and the Company.

 

If the Company determines that any cash severance payment benefit
payable to you fails to satisfy the distribution requirement of Section 409A(a)(2)(A) of
the Internal Revenue Code of 1986, as amended (the “Code”), as a result of Section 409A(a)(2)(B)(i) of
the Code, then the payment schedule will be modified as follows:  If acceleration of the benefit will avoid
application of Section 409(a)(1) of the Code, then the Company will
accelerate the payment of the benefit to the minimum extent necessary so that
the benefit is not subject to the provisions of Section 409A(a)(1) of
the Code.  If acceleration of the benefit
would not avoid the application of Section 409A(a)(1) of the Code,
however, then the Company will delay the benefit to the minimum extent
necessary so that the benefit is not subject to the provisions of Section 409A(a)(1) of
the Code.  If any payments are delayed as
a result of the previous sentence, all such delayed payments shall become
payable in a lump sum on the first day they can be paid following the
termination date.  Thereafter, payments
will resume in accordance with the payment schedule set forth in this
letter.  The Company may attach
conditions to or adjust the severance amounts paid to preserve, as closely as
possible, the economic consequences that would have applied in the absence of
these requirements; provided, however,
that no such condition or adjustment shall result in the payments being subject
to Section 409A(a)(1) of the Code.

 

Included in your compensation is a
comprehensive benefits package: life, long-term disability, dental, vision,
medical insurance, an optional 401(k) savings plan, Employee Stock
Purchase 

 

2

 

Plan (ESPP) cafeteria (flex 125) plan,
health club discount membership, and Employee Assistance Plan.  Websense, Inc.
pays 90% of your health and dental premiums and 70% of the premiums for your
dependents.  You are eligible to participate in the Websense insurance
plans the first day of the month following your date of hire. In
addition, you will receive fifteen days of accrued paid vacation per twelve
month period, ten days of holiday pay and five days of sick leave per year.  It is understood that you will take a two
week vacation in August of 2006. 
That time may be unpaid, or you may use as yet un-accrued vacation time.

 

As an employee of Websense, Inc., you will be required to comply
with all company policies and procedures. 
In particular, you will be required to familiarize yourself with and to
comply with Websense, Inc.’s policy prohibiting unlawful harassment and
discrimination and the policy concerning drugs and alcohol.  Violations of these policies may lead to
immediate termination of employment.  All
employees are required to sign a proprietary invention agreement as a condition
of employment.  In addition, and in
accordance with the Federal Immigration Reform Act of 1986, our offer is
contingent upon your being able to furnish, on the first day you report to
work, documents which verify both your identity and eligibility for employment
in the United States.  The list of
acceptable documents is included as an attachment to this letter.

 

Websense reserves the right to change or eliminate any or all of its
benefits at any time.  Websense is an “at
will” employer.  This means that you may
terminate your employment at Websense at any time for any reason whatsoever,
simply by notifying Human Resources. 
Likewise, Websense may terminate your employment at any time for any
reason whatsoever, with or without cause or advance notice.  This at will employment relationship cannot
be changed except in writing signed by the Chief Executive Officer of
Websense.  The employment terms in this
letter supersede any other agreements or promises made to you by anyone,
whether oral or written.

 

If this letter accurately reflects your understanding of this
employment relationship, please sign below to indicate your acceptance, and
return it to me no later than July 11, 2006.  If you would like to fax this letter back to
me, please fax it to my confidential fax number: (858) 458-2953.  We look forward to having you join our team!

 

3

 

Sincerely,

 

	
  /s/ Susan Brown

  	
   

  
	
  Susan Brown, SPHR

  
	
  Vice President, Human Resources and Administration

  
	
  Websense, Inc.

  

 

 

	
  Accepted By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ John McCormack

  	
   

  	
  July 5, 2006

  
	
  John McCormack

  	
   

  	
  Date

  

 

4EXHIBIT 10(m)

 

BEMIS
COMPANY, INC.

2007 STOCK
INCENTIVE PLAN

(As Amended and Restated
Effective January 1, 2008)

 

1.        
Purpose of Plan.

 

Under the Bemis Company, Inc. 2007 Stock
Incentive Plan (the “Plan”), the Company may grant both Options and Equity
Units to Employees and Directors.  The Plan is designed to enable the
Company and its Subsidiaries to attract, retain and motivate Participants by
providing them the opportunity to acquire equity ownership in the Company.

 

2.        
Definitions.

 

The following defined terms are used in this Plan:

 

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

 

2.2       “Broker
Exercise Notice” means a notice whereby a Participant, upon exercise of an
Option, irrevocably instructs a broker or dealer to sell a sufficient number of
shares or loan a sufficient amount of money to pay all or a portion of the
exercise price of the Option and/or any related withholding tax obligations and
remit such sums to the Company and directs the Company to deliver stock certificates
to be issued upon such exercise directly to such broker or dealer.

 

2.3       “Change of
Control Event” means an event described in Section 10.1 (including a
Code §409A Event as defined in Section 10.2).

 

2.4       “Code”
means the Internal Revenue Code of 1986, as amended.

 

2.5       “Committee”
means the compensation committee appointed under Section 3 to administer
the Plan.

 

2.6       “Common
Stock” means the common stock of the Company, par value $.10 per share, or
the number and kind of shares of stock or other securities into which such
Common Stock may be changed in accordance with Section 4.3.

 

2.7       “Company”
means Bemis Company, Inc., a Missouri corporation.

 

2.8       “Control
Group” means the Company and any trade or business under common control
with the Company within the meaning of Code §414(b) and (c).

 

2.9       “Director”
means a member of the Board.

 

2.10     A Participant has a “Disability”
if, by reason of any medically determinable physical or mental impairment that
can be expected to result in death or to last for a continuous period of at
least 12 months:

 

(a)        The
Participant is unable to engage in any substantial gainful activity, or

 

(b)       
The Participant has received income replacement benefits for a period of at
least three months under a Participating Employer’s accident and health plan.

 

2.11     “Employee” means a
common law employee of the Company or a Subsidiary.

 

2.12     “Equity Unit” means a
right to receive a share of Common Stock, subject to terms established under Section 7.

 

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

 

2.14     “Expiration Date”
means the date an Option is scheduled to expire and no longer be exercisable.

 

2.15     “Fair Market Value”
of a share of Common Stock as of a particular day means the closing price of a
share of the Company’s Common Stock on the New York Stock Exchange on such day,
or if no sale has been made on such exchange on such day, on the last preceding
day on which any such sale was made.

 

2.16     “Incentive Stock
Option” means a right to purchase Common Stock granted to an Employee
pursuant to Section 6.1 that qualifies as an “incentive stock option”
within the meaning of Code § 422.

 

2.17     “Non-Qualified Stock
Option” means a right to purchase Common Stock granted to an Employee or
Director pursuant to Section 6.1 or 6.2 that does not qualify as an
Incentive Stock Option.

 

           
2.18     “Officer” means an Employee who has been
designated by the Board to serve as an executive officer of the Company.

 

 

2.19     “Option” means an
Incentive Stock Option or a Non-Qualified Stock Option.

 

2.20     “Participant”
means an Employee or Director who has been designated as such.

 

2.21     “Payment Date” is
defined in Section 8.5.

 

2.22     “Performance Period”
means the period of time over which Equity Units are earned or become vested.

 

2.23     “Previously Acquired
Shares” means shares of Common Stock that are already owned by a
Participant.

 

2.24     “Securities Act”
means the Securities Act of 1933, as amended.

 

2.25     “Separation from
Service”  is defined in
applicable guidance under Code §409A, which generally provides that:

 

           
(1)        a Participant will be deemed to
have a Separation from Service only if the Participant ceases to perform any
services for the Company and other members of the Control Group, or the
Participant continues to provide only “insignificant” services;

 

(2)       
service is “insignificant” if it is performed at a rate that is no more than
20% of the average level of services provided by the Participant for the
preceding three full calendar years;

 

           
(3)        a bona fide leave of absence will
not be considered a Separation from Service for the first six months of such
leave or until the Participant no longer has a right to reemployment by statute
or contract, whichever is longer;

 

           
(4)        transfer to an employer in which
the Company or another member of the Control Group has at least 50% ownership
interest is not a Separation from Service; and

 

           
(5)        for purposes of determining
benefits earned by a Participant for service as a Director, Separation from
Service occurs when he or she ceases to be a Director.

 

2.26     “Subsidiary”
means any entity in which the Company has a direct or indirect ownership
interest sufficient so that the entity is a member of the Control Group.

 

2.27     “Year” means the
12-month period ending each December 31.

 

3.        
Plan Administration.

 

Except to the extent the Plan explicitly reserves
responsibility to the Board, the Plan shall be administered by the compensation
committee (the “Committee”) appointed by the Board.  The Committee shall
consist solely of not less than two members of the Board who are considered (i) non-employee
directors within the meaning of Exchange Act Rule 16b-3 and (ii) outside
directors within the meaning of Code § 162(m).  If no such Committee is
appointed, the Plan shall be administered by the Board and all references to
the Committee shall be deemed references to the Board.  If the Board
determines that an individual appointed to the Committee does not meet any of
the criteria for Committee membership, the actions of the Committee taken prior
to that determination due to the appointment of that individual shall remain in
effect unless the Board determines otherwise.

 

The Committee (and in the absence of a Committee, the
Board) shall have the following authority, subject to the terms of the Plan:

 

(a)       
To determine which Employees and Directors will be designated as Participants.

 

(b)       
To determine the terms of each Option including the number of shares of Common
Stock subject to the Option, the exercise price, the terms under which the
Option will vest or become exercisable, the Expiration Date of the Option, and
the period of time (if any) following Separation from Service that the option
may be exercised.

 

(c)       
To determine whether the Option will be granted as an Incentive Stock Option or
as a Non-Qualified Stock Option, recognizing that Incentive Stock Options can
be granted only to Employees and not to non-employee Directors.

 

(d)      
To determine the terms of each award of Equity Units, including any performance
goals or other requirements that must be met for the underlying shares of
Common Stock to be distributed.

 

(e)       
To modify the terms of any outstanding Option or Equity Unit in any manner
permitted by the Plan as then in effect, or to cancel the Option or Equity
Unit, subject to the following:

 

(1)       
Subject to Section 4.3, outstanding Options granted under this Plan shall
not be repriced.

 

 

(2)       
If the modification or cancellation adversely affects a Participant, it will
not apply to that Participant without his or her consent, unless required by
law or necessary to avoid adverse tax treatment.

 

(f)       
To delegate to one or more Employees all or any part of its authority under the
Plan with regard to granting and administering Options or Equity Units for
persons who are not then subject to the reporting requirements of Section 16
of the Exchange Act.  (However, Options or Equity Units so granted
generally will not qualify as “performance-based compensation” for purposes of
Code § 162(m).)

 

(g)       
To exercise discretionary authority to construe the terms of the Plan and to
make all decisions and interpretations necessary or advisable to operate the
Plan.

 

4.        
Shares Available for Issuance.

 

4.1       Maximum
Number of Shares Available.  Subject to adjustment as provided in Section 4.3,
the maximum number of shares of Common Stock that will be available for
issuance under the Plan will be 6,000,000 shares of Common Stock plus any
shares of Common Stock which, as of the date the Plan is approved by the
shareholders of the Company, are reserved for issuance under the Company’s 2001
Stock Incentive Plan and which are not thereafter issued.

 

4.2       Accounting
for Incentive Awards.  Shares of Common Stock that are issued under
the Plan or are subject to outstanding Options or Equity Units will be applied
to reduce the maximum number of shares of Common Stock remaining available for
issuance under the Plan.  Any shares of Common Stock that are subject to
an Option or Equity Unit that lapses, expires, is forfeited or for any reason
is terminated unexercised or unvested will automatically again become available
for issuance under the Plan.  However, shares withheld for the purpose of
paying applicable withholding taxes will not again become available for
issuance under the Plan.

 

4.3       Adjustments. 
In the event of any reorganization, merger, consolidation, recapitalization,
liquidation, reclassification, stock dividend, stock split, combination of
shares, rights offering, divestiture or extraordinary dividend (including a
spin-off) or any other change in the corporate structure or shares of the
Company, the Committee (or, if the Company is not the surviving corporation in
any such transaction, the board of directors of the surviving corporation) will
make appropriate adjustment (which determination will be conclusive) as to the
number and kind of securities available for issuance under the Plan and, in
order to prevent dilution or enlargement of the rights of the Participants, the
number, kind and, where applicable, exercise price of securities subject to
outstanding Options or Equity Units.

 

5.        
Participation.

 

The Board or Committee may designate any Employee or
Director as a Participant.

 

6.        
Options.

 

6.1       Grants to
Employees.    The Committee may grant Options to Employees,
subject to such terms and conditions, consistent with the other provisions of
the Plan, as may be determined by the Committee in its sole discretion. 
The Committee may designate whether an Option is to be considered an Incentive
Stock Option or a Non-Qualified Stock Option.  The aggregate number of
shares on which Options may be granted to any one Employee during any calendar
year may not exceed 25% of the 6,000,000 shares of Common Stock available for
issuance under the Plan.  If an Option granted to an Employee is canceled,
said Option will nevertheless be included in applying said 25% limit.

 

6.2       Grants to
Non-Employee Directors.  The Committee may grant Non-Qualified Stock
Options to Directors who are not Employees, subject to such terms and conditions,
consistent with the other provisions of the Plan, as may be determined by the
Committee in its sole discretion.

 

6.3       Exercise
Price.  The per share price to be paid upon exercise of an Option will
be determined at the time of the Option grant.  The per share price to be
paid by a Participant upon exercise of an Option will be not less than 100% of
the Fair Market Value of one share of Common Stock on the date of grant.

 

6.4       Exercisability
and Duration.  An Option will become exercisable at such times and in
such installments as may be determined by the Committee at the time of
grant.  Unless otherwise determined by the Committee at the time of grant,
the Expiration Date of each Option will be 10 years from its date of grant.

 

6.5       Payment of
Exercise Price.  The total purchase price of the shares to be
purchased upon exercise of an Option will be paid entirely in cash (including
check, bank draft or money order); provided, however, that the Committee may
allow such payments to be made, in whole or in part, by tender of a Broker
Exercise Notice, tender of Previously Acquired Shares, Attestation, or by a
combination of such methods.  “Attestation” means delivery by a
Participant to the Company of a written affidavit of ownership of Previously
Acquired Shares the Fair Market Value of which is then applied to the exercise
price of the Option in lieu of actual delivery of such Previously Acquired
Shares.  Upon receipt of such Attestation of Previously Acquired Shares
and payment for any portion of the exercise price not paid by Attestation, the
Company shall deliver to the Participant a stock certificate for the number of
Option shares so exercised, minus the number of Previously Acquired Shares
attested to in the written affidavit, and minus any shares withheld to cover
tax obligations.

 

6.6       Manner of
Exercise.  An Option may be exercised by a Participant in whole or in
part from time to time, subject to the conditions contained in the Plan and in
the agreement evidencing such Option, by delivering in person, by facsimile or
electronic 

 

 

transmission
or through the mail, a written notice of exercise to the Company
(Attention:  Secretary) at its principal executive office in Neenah,
Wisconsin and paying in full the total exercise price for the shares of Common
Stock to be purchased in accordance with Section 6.5 of the Plan. 
The Committee may permit a Participant to enter into a written plan pursuant to
Exchange Act Rule 10b5-1 specifying the date or dates the Participant’s
Options will automatically be exercised.

 

7.        
Equity Units.

 

7.1       Grants. 
An Employee or Director may be granted one or more Equity Units under the Plan,
and such Equity Units will be subject to such terms and conditions, consistent
with the other provisions of the Plan, as may be determined by the
Committee.  The Committee may impose such restrictions or conditions, not
inconsistent with the provisions of the Plan, to the vesting of such Equity
Units as it deems appropriate, including, without limitation, that the
Participant remain in the continuous employ of the Company or any Subsidiary
until the end of the Performance Period established for said Equity Units or
that the Participant or the Company (or any Subsidiary or division thereof)
satisfy certain performance goals or criteria during the Performance Period.

 

7.2       Payments. 
Upon satisfaction of all applicable restrictions and conditions for payment,
each Equity Unit will be payable in the form of a share of Common Stock (less
any applicable tax withholding).  Payment with respect to an Equity Unit
will occur as soon as administratively feasible in the Year after the Year in
which the Performance Period for the Equity Unit ends.  Each Equity Unit
may (but is not required to) include the right to receive periodic payments
from the Company equivalent to the dividends paid on the underlying Common
Stock.  Any such dividend equivalents will be paid as of the dates the
dividends are paid.

 

7.3       Holding
Requirement Applicable to Grants Made to Officers.  Equity Units
granted to Officers are subject to the holding requirement of this
section.  Upon payment of such grants, half of the net shares issued after
any required tax withholding must be held and may not be transferred by the
Officer for at least three years after the date any applicable restrictions or
conditions for payment were satisfied.  The other half of the shares may
be sold or transferred immediately.  The Company may adopt appropriate
procedures to assure compliance with the holding requirement, such as placing a
legend on the share certificates or retaining possession of the certificates
until the three-year holding period expires.  If an Officer has a
Separation from Service, the holding requirement will no longer apply and the individual
will be free to sell or transfer the shares.  The holding requirement does
not apply to grants made to individuals who are not Officers.

 

8.        
Effect of Separation from Service.

 

8.1       Death or
Disability.  If a Participant’s Separation from Service occurs by
reason of his or her death or Disability, then the provisions of (a) and (b) shall
apply:

 

(a)       
Options outstanding at the time of said Separation from Service will not expire
as a result of said Separation from Service but rather will vest and remain in
effect for the remaining term of the Option.  However, the Committee in
its sole discretion may provide at the time it grants an Option to a
Participant that the Option will expire not later than a fixed period of time after
the Participant’s Separation from Service.

 

(b)       
All Equity Units then held by the Participant will vest.  The Company will
transfer to the Participant (or to the beneficiary, legal representative, heir,
or legatee of a deceased Participant) a number of shares of Common Stock equal
to the number of the Participant’s outstanding Equity Units, less any shares
withheld to cover taxes.  Said transfer shall occur as of a date or dates
determined by the Committee which shall not be later than December 31 of the
Year in which the Participant died or was determined to have a
Disability.  However, as permitted by Code  §409A, in cases where a
Participant’s death or Disability occurred in October, November, or December,
payment shall be considered timely if made by the fifteenth day of the third
month after the month in which the Participant died or was determined to have a
Disability.

 

8.2       Separation
from Service After Attaining Applicable Age.  If a Participant’s
Separation from Service occurs after he or she has attained the applicable age
specified in (a) and for a reason other than the Participant’s death or
Disability, then the provisions of (a) through (e) shall apply:

 

(a)        The “applicable
age” for purposes of this section is:

 

(1)       
For any Participant who is an Officer, the applicable age is 60 with respect to
Options and 55 with respect to Equity Units.

 

(2)       
For any Participant who is an Employee but not an Officer, the applicable age
is 65.

 

(b)       
Options outstanding at the time of said Separation from Service will not expire
as a result of said Separation from Service but rather will vest and remain in
effect for the remaining term of the Option.  However, the Committee in
its sole discretion may provide at the time it grants an Option to a
Participant that the Option will expire not later than a fixed period of time
after the Participant’s Separation from Service.

 

(c)       
A fraction of each outstanding grant of Equity Units will be vested.  The
fraction of a grant that will be vested is the number of Equity Units in that
grant, multiplied by a fraction (i) the numerator of which is the number
of months from the beginning of the Performance Period for that grant through
the month in which the Participant’s Separation from 

 

 

Service occurred and (ii) the denominator of
which is the total number of months in said Performance Period.  Except as
otherwise provided by the Committee, any Equity Units which are not vested will
be forfeited.

 

(d)      
However, if a Participant meets the requirements of (1), his or her Equity
Units will be vested as provided in (2).

 

(1)       
The requirements of this paragraph (1) are met if the Participant
satisfies all three of the following requirements:

 

(A)      
The Participant is 60 or older on the date of his or her Separation from
Service;

 

(B)       The
Participant was born on or before January 1, 1954; and

 

(C)       The
Participant was elected as an Officer prior to January 1, 2007.

 

(2)       
If the Participant meets the requirements of (1):

 

           
(A)       Except as provided in (C), all Equity
Units awarded to the Participant prior to the Year in which his or her
Separation from Service occurred will be vested.

 

           
(B)       Equity Units awarded to the Participant
during the Year in which his or her Separation from Service occurred will be
forfeited except as provided in section 8.2(c) or as provided in section
8.2(d)(2)(C).

 

           
(C)       The Committee may, in its sole
discretion, prescribe a longer or shorter vesting period with respect to Equity
Units awarded to a Participant in the Year he or she attains age 61 or any
subsequent Year.

 

(e)       
The Company will transfer to the Participant a number of shares of Common Stock
equal to the number of the Participant’s vested Equity Units (determined as
provided in (c) or (d), whichever is applicable, less any shares withheld
to cover taxes.  Said transfer shall occur as of a date or dates
determined by the Committee which shall not be earlier than the Participant’s
Payment Date and shall not be later than December 31 of the Year in which
the Participant’s Payment Date occurred.  However, as permitted by Code
§409A, if a Participant’s Payment Date occurs during October, November, or
December, payment shall be considered timely if made by the fifteenth day of
the third month after the month in which the Participant’s Payment Date
occurred.

 

8.3       Other
Separation from Service.  If a Participant’s Separation from Service
occurs under circumstances not covered under sections 8.1 and 8.2 (i.e. not due
to death or Disability and before the applicable age specified in section
8.2(a)), then the provisions of (a) through (c) shall apply:

 

(a)       
If the Separation from Service is not for “cause”, (i) Options held by the
Participant which are exercisable as of the date of Separation from Service
will remain exercisable for a period of three months after such separation (but
in no event after the expiration date of any such options), and (ii) Options
which are not yet exercisable as of the date of the Separation from Service
will be forfeited immediately.  If the Separation from Service is for “cause”,
all options will be forfeited immediately upon Separation from Service,
regardless of whether they were then exercisable.

 

(b)       
All Equity Units then outstanding will be forfeited, and no payment will be
made with respect thereto.  However, if the Separation from Service is not
for “cause”, the Committee may, in its sole discretion, provide for vesting and
payment with respect to all or a portion of the outstanding Equity Units. 
Any such payment shall occur as of a date determined by the Committee which
shall not be earlier than the Participant’s Payment Date and shall not be later
than December 31 of the Year in which the Participant’s Payment Date
occurred.  However, as permitted by Code  §409A, if a Participant’s
Payment Date occurs during October, November, or December, payment shall be
considered timely if made by the fifteenth day of the third month after the month
in which the Payment Date occurred.

 

When such a payment occurs, the Participant will
receive one share of Common Stock for each vested Equity Unit, less any
applicable withholding taxes.  The Committee’s decision with respect to
such payment will be not be binding or precedential with regard to subsequent
Separations from Service by other Participants.  The Committee may
delegate its authority under this paragraph to the Company’s chief executive
officer.  If the Separation from Service is for “cause”, then any
outstanding Equity Units will be forfeited immediately and are not subject to
discretionary payout.

 

(c)       
For purposes of this section, the existence of “cause” will be determined by
the Committee by reference to any employment or other agreement or policy
applicable to the Participant.  In addition, the Committee may determine
any of the following to constitute “cause”:   (i) dishonesty,
fraud, misrepresentation, embezzlement or deliberate injury or attempted
injury, in each case related to the Company or any Subsidiary, (ii) any
unlawful or criminal activity of a serious nature, (iii) any intentional
and deliberate breach of a duty or duties that, individually or in the
aggregate, are material in relation to the Participant’s overall duties, or (iv) any
material breach of any employment, service, confidentiality or noncompete
agreement entered into with the Company or any Subsidiary.

 

 

8.4       Breach of
Confidentiality or Noncompete Agreements.  Notwithstanding anything in
the Plan to the contrary, in the event that a Participant materially breaches
the terms of any confidentiality or noncompete agreement entered into with the
Company or any Subsidiary, whether such breach occurs before or after such
Participant’s Separation from Service, the Committee in its sole discretion may
immediately terminate all rights of the Participant under the Plan and any
agreements evidencing an Option or Equity Unit grant then held by the
Participant without notice of any kind.

 

8.5       Payment
Date.  A Participant’s “Payment Date” is the first day of the seventh
month after the month in which the Participant’s Separation from Service
occurred.  For example, if a Participant’s Separation from Service
occurs on May 15, 2007 her Payment Date is December 1, 2007, and
payment must occur on or after December 1, 2007 and on or before March 15,
2008.  If another Participant’s Separation from Service occurs January 31,
2008, his Payment Date is August 1, 2008 and payment must occur on or
after August 1, 2008 and on or before December 31, 2008.

 

8.6       Non-Employee
Directors.  Sections 8.1 through 8.5 are not applicable to Options or
Equity Units granted to Directors who are not Employees.  If such an
individual has a Separation from Service (i.e. ceases to be a Director):

 

(a)       
He or she may exercise any outstanding Options within 12 months after ceasing
to be a Director (or within such other period as approved by the Board or
Committee at the time the Options were granted).

 

(b)       
All Equity Units then held by the Participant will vest.  The Company will
transfer to the Participant a number of shares of Common Stock equal to the
number of the Participant’s outstanding Equity Units.  Said transfer shall
occur as of a date or dates determined by the Company which shall not be later
than December 31 of the Year in which the Participant ceased to be a
Director.  However, as permitted by Code §409A, if a Participant’s
Separation from Service occurs during October, November, or December, payment
shall be considered timely if made by the fifteenth day of the third month
after the month in which the Participant ceased to be a Director.

 

8.7       Options Not
Exercisable After Expiration Date.  Notwithstanding any provisions of
this Section 8 to the contrary, no Option will be exercisable after its
Expiration Date.

 

8.8       Provisions
Applicable If a Participant’s Employer Ceases to be a Subsidiary.  For
purposes of sections 8.2 and 8.3, if a Participant’s employer ceases to be a
Subsidiary of the Company due to a sale of stock which qualifies as a change of
control for purposes of Code §409A, and the Participant remains an employee of
that employer, the Participant will be considered to have a Separation from
Service as of the date the employer ceases to be a Subsidiary.  The
preceding sentence does not apply if, at the time the employer ceases to be a
Subsidiary, the Participant transfers to employment with the Company or another
Subsidiary.

 

9.         Payment
of Withholding Taxes.

 

9.1       General
Rules.  The Company is entitled to (i) withhold and deduct
from the shares of Common Stock payable under the Plan, from future wages of
the Participant, or from other amounts that may be due and owing to the
Participant from the Company or a Subsidiary, or make other arrangements for
the collection of, all legally required amounts necessary to satisfy any and
all federal, state and local withholding and employment-related tax
requirements attributable to an Option or Equity Unit, including, without
limitation, the grant, exercise or vesting of, or payment of dividends with
respect to, an Equity Unit or a disqualifying disposition of stock received
upon exercise of an Incentive Stock Option, or (ii) require the
Participant promptly to remit the amount of such withholding to the Company
before taking any action, including issuing any shares of Common Stock, with
respect to the Option or Equity Unit.

 

9.2       Special
Rules.  The Committee may, in its sole discretion and upon terms and
conditions established by the Committee, permit or require a Participant to
satisfy, in whole or in part, any withholding or employment-related tax
obligation described in Section 9.1 of the Plan by electing to tender
Previously Acquired Shares (including but not limited to the Shares the acquisition
of which triggered the tax obligation), by withholding shares of Common Stock
payable to the Participant under this Plan, or by payments made pursuant to a
Broker Exercise Notice, or by a combination of such methods.

 

10.      
Change of Control Event.

 

10.1     Change of Control
Event.  A “Change of Control Event” shall be deemed to have occurred
if any of the following occurs:

 

(a)       
Any “Person” (as defined in Section 13(d) of the Exchange Act)
acquires or becomes a beneficial owner (as defined in Exchange Act Rule 13d-3),
directly or indirectly, of securities of the Company representing 20% or more
of the combined voting power of the Company’s then outstanding securities
entitled to vote generally in the election of directors (Voting Securities) or
20% or more of the outstanding shares of Common Stock; provided, however, that
the following shall not constitute a “Change of Control Event”:

 

(1)       
any acquisition or beneficial ownership by the Company or a Subsidiary;

 

(2)       
any acquisition or beneficial ownership by any employee benefit plan (or
related trust) sponsored or maintained by the Company or a Subsidiary;

 

(3)       
any transaction immediately following which more than 80% respectively, of (i) the
combined voting power of the Company’s Voting Securities and (ii) the
Common Stock is then beneficially owned, directly or indirectly, by all or
substantially all of the persons who beneficially owned Voting Securities and
Common 

 

 

Stock immediately prior to such transaction in
substantially the same proportions as their ownership immediately prior to such
acquisition;

 

(b)       
Continuing Directors do not constitute a majority of the members of the Board;

 

(c)       
Consummation of a reorganization, merger or consolidation of the Company (other
than a merger or consolidation with a subsidiary of the Company), unless
immediately following such reorganization, merger or consolidation, all or
substantially all of the persons who were the beneficial owners, respectively,
of Voting Securities and Common Stock immediately prior to such reorganization,
merger or consolidation beneficially own, directly or indirectly, more than 80%
respectively of (i) the combined voting power of the then outstanding
Voting Securities and (ii) the then outstanding shares of Common Stock of
the corporation resulting from such reorganization, merger or consolidation in
substantially the same proportions as their ownership of the Voting Securities
and Common Stock as the case may be, immediately prior to such reorganization,
merger or consolidation;

 

(d)      
Approval by the shareholders of the Company of a complete liquidation or
dissolution of the Company or the sale or other disposition of all or
substantially all of the assets of the Company (in one or a series of
transactions), other than to a corporation with respect to which, immediately
following such sale or other disposition, more than 80%, respectively, of (i) the
combined voting power of the then outstanding Voting Securities and (ii) the
then outstanding shares of Common Stock of such corporation is then
beneficially owned, directly or indirectly, by all or substantially all of the
persons who were the beneficial owners respectively of the Voting Securities
and Common Stock immediately prior to such sale or other disposition in
substantially the same proportions as their ownership of the Voting Securities
and Common Stock, as the case may be, immediately prior to such sale or other
disposition;

 

(e)       
The Company enters into a letter of intent, an agreement in principle or a
definitive agreement relating to a “Change in Control Event” described in (a),
(b), (c) or (d) that ultimately results in such a “Change of Control
Event”, or a tender or exchange offer or proxy contest is commenced which
ultimately results in such a “Change in Control Event”.

 

Notwithstanding anything stated above, a “Change of
Control Event” shall not be deemed to occur with respect to a Participant if
the acquisition or beneficial ownership of the 20% or greater interest referred
to in (a) is by the Participant or by a group, acting in concert, that
includes the Participant or a majority of the then combined voting power of the
then outstanding Voting Securities (or voting equity interests) of the
surviving corporation or of any corporation (or other entity) acquiring all or
substantially all of the assets of the Company shall, immediately after a
reorganization, merger, consolidation or disposition of assets referred to in (c) or
(d), be beneficially owned, directly or indirectly, by the Participant or by a
group, acting in concert, that includes the Participant

 

           
10.2     Code §409A Event.  A “Code §409A Event”
is a Change of Control Event (as defined in section 10.1) that qualifies as a
change in control event for purposes of Code §409A and any applicable
regulations.

 

10.3     Continuing Directors. 
Continuing Directors means:

 

(a)       
individuals who, on January 1, 2006, are Directors;

 

(b)       
individuals elected as Directors after January 1, 2006 for whose election
proxies are solicited by the Board; or

 

(c)       
individuals elected or appointed by the Board to fill vacancies on the Board
caused by death or resignation (but not by removal) or to fill newly-created
directorships, provided that a Continuing Director shall not include an
individual whose initial assumption of office occurs as a result of an actual
or threatened election contest with respect to the threatened election or
removal of directors (or other actual or threatened solicitation of proxies or
consents) by or on behalf of any person other than the Board.

 

10.4     Acceleration of
Vesting.  If a Change of Control Event occurs, (a) all Options
will become immediately exercisable in full and will remain exercisable for the
remainder of their terms, regardless of whether the Participants to whom such
Options have been granted remain in the employ or service of the Company or any
Subsidiary; and (b) all Equity Units then held by Participants will vest
and be payable as follows:

 

(a)       
If the Change of Control Event qualifies as a Code §409A Event, all Equity
Units then held by Participants will vest and be payable immediately.

 

(b)        If the
Change of Control Event does not qualify as a Code §409A Event:

 

           
(1)        All Equity Units which would not
have been vested immediately before the Change of Control Event if the
Participant then had a Separation from Service will vest and be paid as soon as
administratively feasible during the year in which the Change of Control Event
occurred.

 

 

           
(2)        All Equity Units which would have
been vested immediately before the Change of Control Event if the Participant
then had a Separation from Service will vest and will be paid as of whichever
of the following dates is earlier:

 

           
(A)       As soon as administratively feasible in
the Year after the Year in which the Performance Period for the Equity Unit
ends.

 

           
(B)       During the seventh month after the
month in which the Participant’s Separation from Service occurs.

 

10.5     Cash Payment. 
If a Code §409A Event occurs, then the Board or Committee may, without the
consent of any Participant affected thereby, terminate the Plan and all
substantially similar plans.  Upon such termination, all Participants will
receive the following amounts as payment for their outstanding Options or
Equity Units:

 

(a)       
With respect to the shares of Common Stock subject to Options, as of the
effective date of any such Change of Control Event, cash in an amount equal to
the excess of the Fair Market Value of such shares immediately prior to the
effective date of such Change of Control Event over the exercise price per
share of such Option.

 

(b)       
With respect to the Equity Units, cash in an amount equal to the Fair Market
Value (determined immediately prior to the effective date of the Change of
Control Event), of the shares of Common Stock represented by such Equity Units.

 

Any
such termination must occur during the 1 month period preceding or the 12 month
period following the Code §409A Event.  The cash payments must be
completed within 12 months after the Plan is terminated.

 

10.6     Gross-Up for Change
of Control Payments.  If, with respect to a Participant, the
acceleration of the vesting of an Option or Equity Unit as provided in Section 10.4
(which acceleration could be deemed a “Payment” within the meaning of Code §
280G(b)(2)) or the payment of cash in exchange for all or part of an Option or
Equity Unit as provided in Section 10.5, together with any other payments
which such Participant has the right to receive from the Company or any
corporation that is a member of an “affiliated group” (as defined in Code §
1504(a) without regard to Code § 1504(b)) of which the Company is a
member, would constitute an “excess parachute payment” (as defined in Code §
280G(b)(1)), and therefore be subject to the excise tax imposed under Code §
4999, then the Participant shall be entitled to receive an additional cash
payment from the Company in an amount such that the Participant would be in the
same financial position as if there were no excise tax imposed on such
payments.  That is, if any amount paid pursuant to this Plan is subject to
the excise tax imposed by Code § 4999, the Company shall pay the Participant an
additional amount such that, after payment by the Participant of all income
taxes and excise taxes imposed upon such additional payment, the Participant
will retain a portion of the additional payment equal to the excise tax. 
For this purpose, the Company shall assume that the Participant’s income is
taxed at the highest federal and state marginal rate then in effect.

 

11.      
Rights of Eligible Recipients and Participants; Transferability.

 

           
11.1     Employment.  Nothing in the Plan will
interfere with or limit in any way the right of the Company or any Subsidiary
to terminate the employment of any Employee or Participant at any time, nor
confer upon any Employee or Participant any right to continue in the employ of
the Company or any Subsidiary.

 

11.2     Rights as a
Shareholder.  As a holder of Options or Equity Units, a Participant
will have no rights as a shareholder unless and until the Options are exercised
or the Equity Units are paid in the form of Common Stock.  However, as
part of any grant of Equity Units, the Committee may provide that a Participant
will be entitled to receive cash distributions equivalent to the dividends paid
from time to time on the Common Stock underlying such Units.

 

11.3     Restrictions on
Transfer.  Any Option or Equity Unit granted under this Plan shall by
its terms be non-transferable by the grantee other than by will or the laws of
descent and distribution and shall be exercisable during the grantee’s lifetime
only by the grantee or by the grantee’s guardian or legal representative,
except that a Non-Qualified Stock Option may, if the Option Agreement so
provides, also be transferable to members of the grantee’s immediate family, to
a partnership whose members are only the optionee and/or members of the grantee’s
immediate family, or to a trust for the benefit of only the grantee and/or
members of the grantee’s immediate family.  “Immediate Family” for
purposes of this section includes only the grantee’s spouse, parents, children,
and other direct descendants of the grantee and his or her spouse (including
children and other descendants by adoption).

 

11.4     Non-Exclusivity of
the Plan.  Nothing contained in the Plan is intended to modify or
rescind any previously approved compensation plans or programs of the Company
or create any limitations on the power or authority of the Board to adopt such
additional or other compensation arrangements as the Board may deem necessary
or desirable.

 

12.      
Securities Law and Other Restrictions.

 

           
Notwithstanding any other provision of the Plan or any agreements entered into
pursuant to the Plan, the Company will not be required to issue any shares of
Common Stock under this Plan, and a Participant may not sell, assign, transfer
or otherwise dispose of shares of Common Stock issued pursuant to the Plan,
unless (a) there is in effect with respect to such shares a registration
statement under the Securities Act and any applicable state securities laws or
an exemption from such registration under the Securities Act and applicable
state securities laws, and (b) there has been obtained any other consent,
approval or permit from any other regulatory body which the 

 

 

Committee,
in its sole discretion, deems necessary or advisable.  The Company may
condition such issuance, sale or transfer upon the receipt of any
representations or agreements from the parties involved, and the placement of
any legends on certificates representing shares of Common Stock, as may be
deemed necessary or advisable by the Company in order to comply with such
securities law or other restrictions.

 

13. 
     Plan Amendment, Modification and Termination.

 

The Board or Committee may suspend or terminate the
Plan or any portion thereof at any time, and may amend the Plan from time to
time in such respects as the Board or Committee may deem advisable. 
However, no amendments to the Plan will be effective without approval of the
stockholders of the Company if stockholder approval of the amendment is then
required pursuant to Code § 422 or the rules of the New York Stock
Exchange.  No termination, suspension or amendment of the Plan may
adversely affect any outstanding award without the consent of the affected
Participant; provided, however, that this sentence will not impair the right of
the Board or Committee to take whatever action it deems appropriate under
Sections 3(e), 4.3 and 10.5.

 

14. 
     Effective Date and Duration of the Plan.

 

The Plan is effective upon approval by the Company’s
shareholders.  The Plan will terminate at midnight on December 31,
2015, and may be terminated prior to such time to by Board action, and no
Options or Equity Units will be granted after such termination.  Except as
provided in section 10.5, awards outstanding upon termination of the Plan may
continue to be exercised, or become free of restrictions and paid, in
accordance with their terms.

 

15. 
     Miscellaneous.

 

15.1     Governing Law. 
The Plan will be construed in accordance with the laws of Missouri.

 

15.2     Successors and
Assigns.  The Plan will be binding upon and inure to the benefit of
the successors and permitted assigns of the Company and the Participants.’

 

15.3     Code §409A. 
The Plan is intended to satisfy all applicable requirements of Code
§409A and will be construed in light of that intent.  The Committee
may modify the Plan and Options or Equity Units granted pursuant to the Plan to
the extent the Committee deems necessary to comply with Code §409A, even if
such modifications adversely affect outstanding Options and Equity Units,
provided the Committee determines that such modifications are necessary to
avoid adverse tax consequences.

 

	
   

  	
  APPROVED IN BEHALF OF THE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
                  Jeffrey H.
  Curler, Chairman and CEO

  
	
   

  	
   

  
	
   

  	
  Date Signed:

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