Document:

Exhibit 10.4

First Amendment

to

Second Amended and Restated Credit Agreement

Among

Linn Energy, LLC

as Borrower,

BNP Paribas,

as Administrative
Agent,

and

The Lenders
Signatory Hereto

Effective as of
February 1, 2007

FIRST AMENDMENT TO SECOND AMENDED AND RESTATED
CREDIT AGREEMENT

This First Amendment to
Second Amended and Restated Credit Agreement (this “First Amendment”)
executed effective as of the 1st of February, 2007 (the “First Amendment
Effective Date”) is among Linn
Energy, LLC, a limited liability company formed under the laws of the
State of Delaware (the “Borrower”); each of the undersigned guarantors
(the “Guarantors”, and together with the Borrower, the “Obligors”);
each of the Lenders that is a signatory hereto; and BNP Paribas, as administrative agent for the Lenders (in such
capacity, together with its successors, the “Administrative Agent”).

Recitals

A.                                   The
Borrower, the Administrative Agent and the Lenders are parties to that certain
Second Amended and Restated Credit Agreement dated as of August 1, 2006 (the “Credit
Agreement”), pursuant to which the Lenders have made certain credit
available to and on behalf of the Borrower.

B.                                     The
Borrower has requested and the Administrative Agent and the Lenders have agreed
to amend certain provisions of the Credit Agreement.

C.                                     The
Borrower is anticipating acquiring additional Oil and Gas Properties (the “Stallion
Acquisition Properties”) pursuant to two Purchase and Sale Agreement with
Cavello Energy, LLC (which together with all bills of sale, assignments,
agreements, instruments and documents executed and delivered in connection
therewith, as amended, the “Stallion Acquisition Documents”) (the “Stallion
Acquisition”).

D.                                    NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein contained,
for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

Section 1.                                            Defined
Terms.  Each capitalized term which
is defined in the Credit Agreement, but which is not defined in this First
Amendment, shall have the meaning ascribed such term in the Credit
Agreement.  Unless otherwise indicated,
all section references in this First Amendment refer to the Credit Agreement.

Section 2.                                            Amendments
to Credit Agreement.

2.1                                 Definitions.  Section 1.02 is hereby amended by amending
and restated the definition of “Agreement” as follows:

“ ‘Agreement’
means this Second Amended and Restated Credit Agreement, as amended by that
certain First Amendment to Second Amended and Restated Credit Agreement, dated
as of February 1, 2007, and as the same may from time to time be further
amended, modified, supplemented or restated.”

 2
 

2.2                                 Section
9.02.  Section 9.02(g) is hereby
amended and restated in its entirety as follows:

“(g)                           other Debt not to exceed
$40,000,000 in the aggregate at any one time.”

2.3                                 Annex
I.  Annex I is hereby amended and
restated in its entirety as set forth on the attached Annex I.

Section
3.                                            Additional
Lenders.  For an agreed
consideration, the current Lenders (including the Administrative Agent in its
capacity as a Lender) hereby collectively irrevocably sell and assign to each
of BMO Capital Markets Financing, Inc., JPMorgan Chase Bank, N.A., Deutsche
Bank Trust Company Americas, Wachovia Bank, National Association, Allied Irish
Bank, p.l.c., U.S. Bank National Association and Amegy Bank National
Association (collectively, the “New Lenders”), and the New Lenders, by
their signature hereto, hereby irrevocably purchase and assume from such
Lenders, subject to and in accordance with the Credit Agreement, as of the
First Amendment Effective Date (i) the rights and obligations of the Lenders
under the Credit Agreement and any other documents or instruments delivered
pursuant thereto, such that the outstanding Maximum Credit Amount and
Applicable Percentage of each Lender (including the New Lenders) are in the
amounts set forth on Annex I attached hereto and (ii) to the extent permitted
to be assigned under applicable law, all claims, suits, causes of action and
any other right of the assigning Lenders against any Person, whether known or
unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions
governed thereby or in any way based on or related to any of the foregoing,
including contract claims, tort claims, malpractice claims, statutory claims
and all other claims at law or in equity related to the rights and obligations
sold and assigned pursuant to clause (i) above.

Section
4.                                            Scheduled
Redetermination of the Borrowing Base. 
Pursuant to a Scheduled Redetermination pursuant to Section 2.07(b), the
Borrowing Base shall be increased to 725,000,000, effective from and including
the First Amendment Effective Date to but excluding the next Redetermination
Date.  Notwithstanding the foregoing, the
Borrowing Base may be subject to further adjustments from time to time pursuant
to Section 8.13 or Section 9.12.

Section 5.                                            Conditions Precedent.  The
effectiveness of this First Amendment is subject to the receipt by the
Administrative Agent of the following documents and satisfaction of the other
conditions provided in this Section 5, each of which shall be reasonably
satisfactory to the Administrative Agent in form and substance:

5.1                                 Payment by the Borrower to the Administrative
Agent of all fees and other amounts due and payable on or prior to the First
Amendment Effective Date, including, to the extent invoiced, reimbursement or
payment of all out-of-pocket expenses required to be reimbursed or paid by the
Borrower.

5.2                                 The Administrative Agent shall have received
multiple counterparts as requested of the this First Amendment from each
Lender.

 3
 

5.3                                 The Administrative Agent shall
have received duly executed Notes payable to the order of each Lender
(including the New Lenders) in a principal amount equal to its Maximum Credit
Amount dated as of the date hereof.

5.4                                 The
Administrative Agent shall have received (a) a certificate of a Responsible
Officer of the Borrower certifying:  (i)
that the Borrower is concurrently consummating the Stallion Acquisition in
accordance with the terms of the Stallion Acquisition Documents (with all of
the material conditions precedent thereto having been satisfied in all material
respects by the parties thereto)
and acquiring substantially all of the Stallion Acquisition Properties
contemplated by the Stallion Acquisition Documents; (ii) as to the final
purchase price for the Stallion Acquisition Properties after giving effect to
all adjustments as of the closing date contemplated by the Stallion Acquisition
Documents and specifying, by category, the amount of such adjustment; (iii)
that attached thereto is a true and complete list of the Stallion Acquisition
Properties which have been excluded from the Stallion Acquisition pursuant to
the terms of the Acquisition Documents, specifying with respect thereto the
basis of exclusion as (A) title defect, (B) preferential purchase right, (C)
environmental or (D) casualty loss; (iv) that attached thereto is a true and
complete list of all Stallion Acquisition Properties for which any seller has
elected to cure a title defect, (v) that attached thereto is a true and
complete list of all Stallion Acquisition Properties for which any seller has
elected to remediate an adverse environmental condition, and (vi) that attached
thereto is a true and complete list of all Stallion Acquisition Properties
which are currently pending final decision by a third party regarding purchase
of such property in accordance with any preferential right; (x) a true and
complete executed copy of each of the Stallion Acquisition Documents; (y)
original counterparts or copies, certified as true and complete, of the
assignments, deeds and leases for all of the Stallion Acquisition Properties;
and (b) such other related documents and information as the Administrative
Agent shall have reasonably requested.

5.5                                 The Administrative Agent shall
have received from each party thereto duly executed counterparts (in such
number as may be requested by the Administrative Agent) of the Security
Instrument described on Exhibit A.  In
connection with the execution and delivery of the Security Instruments, the
Administrative Agent shall be reasonably satisfied that the Security Instruments
create first priority, perfected Liens (subject only to Excepted Liens
identified in clauses (a) to (d) and (f) of the definition thereof, but subject
to the provisos at the end of such definition) on at least 80% of the total
value of the Stallion Acquisition Properties.

5.6                                 The Administrative Agent shall
have received an opinion of local counsel in each of the following states:
Texas and any other jurisdictions requested by the Administrative Agent, in
form and substance satisfactory to the Administrative Agent.

5.7                                 The Administrative Agent shall
have received title information as the Administrative Agent may reasonably
require satisfactory to the Administrative Agent setting forth the status of
title to at least 80% of the total value of the Stallion Acquisition
Properties.

5.8                                 The Administrative Agent shall
be reasonably satisfied with the environmental condition of the Stallion
Acquisition Properties.

 4
 

5.9                                 The Administrative Agent shall
have received a Reserve Report covering the Stallion Acquisition Properties.

5.10                           The Administrative Agent shall
have received a certificate of a Responsible Officer certifying that the
Borrower has received all consents and approvals required by Section 7.03 in
connection with the Stallion Acquisition.

5.11                           The
Administrative Agent shall have received evidence satisfactory to it that all
Liens associated with the Stallion Acquisition Properties have been released or
terminated contemporaneously with the Stallion Acquisition and that
arrangements satisfactory to the Administrative Agent have been made for recording
and filing of such releases.

5.12                           The Administrative Agent shall
have received such other documents as the Administrative Agent or special
counsel to the Administrative Agent may reasonably request.

5.13                           The
Administrative Agent shall have received a certificate of a Responsible Officer
of the Borrower certifying that the Borrower has received or is receiving
concurrently with the Stallion Acquisition, at least $300,000,000 from the sale
of its Equity Interests.

5.14                           No Default or Event of Default
shall have occurred and be continuing as of the First Amendment Effective Date.

Section 6.                                            Representations and Warranties; Etc.  Each
Obligor hereby affirms:  (a) that as of
the date of execution and delivery of this First Amendment, all of the
representations and warranties contained in each Loan Document to which such
Obligor is a party are true and correct in all material respects as though made
on and as of the First Amendment Effective Date (unless made as of a specific
earlier date, in which case, was true as of such date); and (b) that after
giving effect to this First Amendment and to the transactions contemplated
hereby, no Defaults exist under the Loan Documents or will exist under the Loan
Documents.

Section 7.                                            Miscellaneous.

7.1                                 Confirmation.  The
provisions of the Credit Agreement (as amended by this First Amendment) shall
remain in full force and effect in accordance with its terms following the
effectiveness of this First Amendment.

7.2                                 Ratification and Affirmation of Obligors.  Each
of the Obligors hereby expressly (i) acknowledges the terms of this First
Amendment, (ii) ratifies and affirms its obligations under the Guarantee
Agreement and the other Security Instruments to which it is a party, (iii)
acknowledges, renews and extends its continued liability under the Guarantee
Agreement and the other Security Instruments to which it is a party and agrees
that its guarantee under the Guarantee Agreement and the other Security
Instruments to which it is a party remains in full force and effect with respect
to the Indebtedness as amended hereby.

7.3                                 Counterparts.  This
First Amendment may be executed by one or more of the parties hereto in any
number of separate counterparts, and all of such counterparts taken together
shall be deemed to constitute one and the same instrument.

 5
 

7.4                                 No Oral Agreement.  This written First Amendment, the Credit
Agreement and the other Loan Documents executed in connection herewith and
therewith represent the final agreement between the parties and may not be
contradicted by evidence of prior, contemporaneous, or unwritten oral
agreements of the parties.  There are no
subsequent oral agreements between the parties.

7.5                                 Governing Law.  This First Amendment (including, but not
limited to, the validity and enforceability hereof) shall be governed by, and
construed in accordance with, the laws of the State of Texas.

 6

  
  IN WITNESS WHEREOF, the parties hereto have caused
this First Amendment to be duly executed effective as of the date first written
above.
  	  BORROWER:
  	  LINN ENERGY, LLC
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/Kolja Rockov
  	   
  
	   
  	   
  	  Kolja Rockov, Executive Vice President

  and Chief Financial Officer
  
					

   

 1
 

     
  	  GUARANTORS:
  	  LINN
  ENERGY HOLDINGS, LLC
  
	   
  	   
  
	   
  	  LINN
  OPERATING, INC.
  
	   
  	   
  
	   
  	  PENN
  WEST PIPELINE, LLC
  
	   
  	   
  
	   
  	  PENN
  WEST STORAGE, LLC
  
	   
  	   
  
	   
  	  MID
  ATLANTIC WELL SERVICE,

  INC.
  
	   
  	   
  
	   
  	  LINN
  WESTERN OPERATING, INC.
  
	   
  	   
  
	   
  	  LINN
  WESTERN PROCESSING, LLC
  
	   
  	   
  
	   
  	  LINN
  MID-CONTINENT OPERATING,

  INC.
  
	   
  	   
  	   
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/Kolja Rockov
  	   
  
	   
  	   
  	  Kolja Rockov

  Executive Vice President and Chief

  Financial Officer
  

   

 2
 

     
  	  ADMINISTRATIVE
  AGENT:
  	  BNP PARIBAS,
  
	   
  	  as Administrative Agent and Lender
  
	   
  	   
  	   
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Douglas R. Litman
  	   
  
	   
  	  Name:
  	  Douglas R. Litman
  
	   
  	  Title:
  	  Managing Director
  
	   
  	   
  	   
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Betsy Jocher
  	   
  
	   
  	  Name:
  	  Betsy Jocher
  
	   
  	  Title:
  	  Director
  
					

   

 3
 

     
  	  LENDERS:
  	  ROYAL BANK OF CANADA, as
  a Syndication

  Agent and a Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Don J. McKinnerney
  	   
  
	   
  	  Name:
  	  Don J. McKinnerney
  
	   
  	  Title:
  	  Authorized Signatory
  
					

   

 4
 

     
  	  
  	  SOCIETE GENERALE, as
  a Syndication Agent

  and a Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Graeme R. Bullen
  	   
  
	   
  	  Name:
  	  Graeme R. Bullen
  
	   
  	  Title:
  	  Director
  
					

   

 5
 

     
  	  
  	  COMERICA BANK, as
  a Documentation Agent

  and a Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Huma Vadgama
  	   
  
	   
  	  Name:
  	  Huma Vadgama
  
	   
  	  Title:
  	  Vice President
  
					

   

 6
 

     
  	  
  	  CITIBANK, N.A., as
  a Documentation Agent

  and a Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Thomas Benavidos
  	   
  
	   
  	  Name:
  	  Thomas Benavidos
  
	   
  	  Title:
  	  Vice President
  
					

   

 7
 

     
  	  
  	  KEYBANK NATIONAL ASSOCIATION, as
  a

  Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Thomas Rajan
  	   
  
	   
  	  Name:
  	  Thomas Rajan
  
	   
  	  Title:
  	  Senior Vice President
  
					

   

 8
 

     
  	  
  	  FORTIS CAPITAL CORP., as
  a Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ David Montgomery
  	   
  
	   
  	  Name:
  	  David Montgomery
  
	   
  	  Title:
  	  Senior Vice President
  
					

   
   
  	  
  	  By:
  	  /s/ Darrell Holley
  	   
  
	   
  	  Name:
  	  Darrell Holley
  
	   
  	  Title:
  	  Managing Director
  
					

   

 9
 

     
  	  
  	  LEHMAN COMMERICAL PAPER INC., as
  a

  Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Diane Albanese
  	   
  
	   
  	  Name:
  	  Diane Albanese
  
	   
  	  Title:
  	  Authorized Signatory
  
					

   

 10
 

     
  	  NEW LENDERS:
  	  BMO Capital Markets
  Financing, Inc., as a Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ James V. Ducote
  	   
  
	   
  	  Name:
  	  James V. Ducote
  
	   
  	  Title:
  	  Director
  
					

   

 11
 

     
  	  
  	  JPMORGAN CHASE BANK, N.A., as
  a Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Jo Linda Papadakis
  	   
  
	   
  	  Name:
  	  Jo Linda Papadakis
  
	   
  	  Title:
  	  Vice President
  
					

   

 12
 

     
  	  
  	  Deutsche Bank Trust
  Company

  Americas, as a Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Evelyn Thierry
  	   
  
	   
  	  Name:
  	  Evelyn Thierry
  
	   
  	  Title:
  	  Vice President
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Carin Keegan
  	   
  
	   
  	  Name:
  	  Carin Keegan
  
	   
  	  Title:
  	  Vice President
  
						

   

 13
 

     
  	  
  	  WACHOVIA BANK, NATIONAL

  ASSOCIATION, as a Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Chris Hewitt
  	   
  
	   
  	  Name:
  	  Chris Hewitt
  
	   
  	  Title:
  	  Vice President
  
					

   

 14
 

     
  	  
  	  ALLIED IRISH BANK, p.l.c., as
  a Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ David O’Driscoll
  	   
  
	   
  	  Name:
  	  David O’Driscoll
  
	   
  	  Title:
  	  Assistant Vice President
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Vaughn Buck
  	   
  
	   
  	  Name:
  	  Vaughn Buck
  
	   
  	  Title:
  	  Director
  
					

   

 15
 

     
  	  
  	  U.S. BANK NATIONAL ASSOCIATION,
  as a

  Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ Justin M. Alexander
  	   
  
	   
  	  Name:
  	  Justin M. Alexander
  
	   
  	  Title:
  	  Vice President
  
					

   

 16
 

     
  	  
  	  AMEGY BANK NATIONAL ASSOCIATION,

  as a Lender
  
	   
  	   
  	   
  
	   
  	  By:
  	  /s/ W. Bryan Chapman
  	   
  
	   
  	  Name:
  	  W. Bryan Chapman
  
	   
  	  Title:
  	  Senior Vice President
  
					

   

 17

ANNEX I

LIST OF MAXIMUM CREDIT AMOUNTS

Aggregate Maximum Credit Amounts

	
  Name of Lender

  	
   

  	
  Applicable Percentage

  	
   

  	
  Maximum Credit Amount

  	
   

  
	
  BNP Paribas

  	
   

  	
  10.34

  	
  %

  	
  $

  	
  82,758,620.69

  	
   

  
	
  Royal Bank of
  Canada

  	
   

  	
  10.34

  	
  %

  	
  $

  	
  82,758,620.69

  	
   

  
	
  Societe Generale

  	
   

  	
  9.66

  	
  %

  	
  $

  	
  77,241,379.31

  	
   

  
	
  BMO Capital
  Markets Financing, Inc.

  	
   

  	
  8.97

  	
  %

  	
  $

  	
  71,724,137.93

  	
   

  
	
  JPMorgan Chase
  Bank, N.A.

  	
   

  	
  8.97

  	
  %

  	
  $

  	
  71,724,137.93

  	
   

  
	
  Citibank, N.A.

  	
   

  	
  8.97

  	
  %

  	
  $

  	
  71,724,137.93

  	
   

  
	
  Comerica Bank

  	
   

  	
  6.90

  	
  %

  	
  $

  	
  55,172,413.79

  	
   

  
	
  Deutsche Bank
  Trust Company Americas

  	
   

  	
  6.90

  	
  %

  	
  $

  	
  55,172,413.79

  	
   

  
	
  KeyBank National
  Association

  	
   

  	
  6.90

  	
  %

  	
  $

  	
  55,172,413.79

  	
   

  
	
  Wachovia Bank,
  National Association

  	
   

  	
  6.90

  	
  %

  	
  $

  	
  55,172,413.79

  	
   

  
	
  Fortis Capital
  Corp.

  	
   

  	
  3.45

  	
  %

  	
  $

  	
  27,586,206.90

  	
   

  
	
  Allied Irish
  Bank, p.l.c.

  	
   

  	
  3.45

  	
  %

  	
  $

  	
  27,586,206.90

  	
   

  
	
  U.S. Bank
  National Association

  	
   

  	
  3.45

  	
  %

  	
  $

  	
  27,586,206.90

  	
   

  
	
  Amegy Bank
  National Association

  	
   

  	
  3.45

  	
  %

  	
  $

  	
  27,586,206.90

  	
   

  
	
  Lehman
  Commercial Paper Inc.

  	
   

  	
  1.38

  	
  %

  	
  $

  	
  11,034,482.76

  	
   

  
	
  TOTAL

  	
   

  	
  100

  	
  %

  	
  $

  	
  800,000,000.00

  	
   

  

 

First Amendment

Annex I

EXHIBIT A

Security
Instruments

1.                                       Deed
of Trust, Fixture Filing, Assignment of As-Extracted Collateral, Security
Agreement and Financing Statement from Linn Energy Holdings, LLC in favor of
BNP Paribas, as Administrative Agent, filed in various Texas counties.

2.                                       UCC-1
in connection with item 1.

3.                                       Deed
of Trust, Fixture Filing, Assignment of As-Extracted Collateral, Security
Agreement and Financing Statement from Penn West Pipeline, LLC in favor of BNP
Paribas, as Administrative Agent, filed in various Texas counties.

4.                                       UCC-1
in connection with item 3.

First Amendment

Exhibit AExhibit 10.2

ADOBE SYSTEMS INCORPORATED

AMENDED 1994 PERFORMANCE AND RESTRICTED STOCK PLAN

1.             Establishment
and Purpose.

(a)           Establishment.  The Adobe Systems Incorporated 1989
Restricted Stock Plan was initially adopted on February 9, 1989 (the “Initial Plan”).  The
Initial Plan was amended and restated in its entirety as the “1994 Performance
and Restricted Stock Plan” effective as of August 31, 1994, the date it was
approved by the stockholders of Adobe Systems Incorporated.  This amendment is effective as of the date it
is approved by the Board of Directors of Adobe Systems Incorporated (the “Board”). The Initial Plan, as amended from time to time, is
referred to as the “Plan.”

(b)           Purpose.  The purpose of the Plan is to attract, retain
and reward key employees of Adobe Systems Incorporated and any successor
corporation thereto (collectively referred to as the “Company”),
and any present or future parent and/or subsidiary corporations of the Company
(all of whom along with the Company being individually referred to as a “Participating Company” and collectively referred to as the “Participating Company Group”), and to motivate such persons
to contribute to the financial success and progress of the Participating
Company Group.  For purposes of the Plan,
a parent corporation and a subsidiary corporation shall be as defined in
sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended
(the “Code”).

2.             Administration.

(a)           Administration
by Committee.  The Plan shall be
administered by one or more committees (individually, a “Committee”)
duly appointed by the Board; provided, however, that with respect to the
participation of individuals who are subject to the provisions of Section 16 of
the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), or who are divisional officers of the Participating Company
Group, the Plan shall be administered by a Committee consisting of not less
than two directors each of whom is both (i) a “Non-Employee Director” within
the meaning of Rule 16b-3 under the Exchange Act or any successor rule (“Rule 16b-3”) and (ii) an “outside director” for purposes of
Section 162(m) of the Code and the regulations promulgated thereunder.  The Committee shall have all of the powers
vested in it by the terms of the Plan, subject to the limitations described
herein, including the full and final authority in its sole discretion to:

(i)            select the
eligible persons to whom (a “Participant”),
and the time at which, awards shall be granted under the Plan;

(ii)           determine type of
award granted and the number of shares of stock, units or other consideration
subject to awards (which need not be identical);

(iii)         determine the terms
and conditions of each award granted, including, without limitation, the terms
of vesting, if any, the effect of a Participant’s termination 

 1
 

of employment with the Participating Company Group,
the method for satisfaction of any tax withholding obligation arising in
connection with any award, and all other terms and conditions of the award not
inconsistent with the terms of the Plan;

(iv)          determine the
performance goals and other conditions, if any, for the settlement of any award
and whether such goals and conditions have been satisfied;

(v)            determine whether
an award shall be paid in cash, in shares of stock or in any combination
thereof;

(vi)          determine whether
payment of an award should be reduced or eliminated;

(vii)         modify or amend any
award, or waive any restrictions or conditions applicable to any award;

(viii)        accelerate, continue,
extend or defer the payment or vesting of any award, including with respect to
the period following a Participant’s termination of employment with the
Participating Company Group;

(ix)          determine the fair
market value of the common stock of the Company;

(x)           authorize any person
to execute on behalf of the Company any instrument required to effectuate the
grant of an award;

(xi)          prescribe, amend or
rescind rules, regulations and policies relating to the Plan;

(xii)         approve one or more
forms of agreement for use under the Plan;

(xiii)       construe and interpret
the Plan and any agreement used under the Plan and define the terms employed
herein and therein;

(xiv)        make all other
determinations and take such other action with respect to the Plan and any
award granted hereunder as the Committee may deem advisable, to the extent
permitted by applicable law.

All decisions, determinations and interpretations of
the Committee shall be final and binding upon all persons having an interest in
the Plan or any award granted under the Plan.

(b)           Authority of
Officers.  Any officer of a
Participating Company shall have the authority to act on behalf of the Company
with respect to any matter, right, obligation, or election which is the
responsibility of or which is allocated to the Company herein, provided the
officer has apparent authority with respect to such matter, right, obligation,
or election.

 2
 

3.             Eligibility.  Key employees of the Participating Company
Group are eligible to participate in the Plan. 
The Committee shall, in the Committee’s sole discretion, determine which
individuals shall be granted awards under the Plan.

4.             Shares Subject
to Plan.  Shares issued pursuant to
the Plan shall be authorized but unissued shares of the common stock of the
Company (the “Stock”).  Subject to adjustment as provided in Section
5, the maximum number of shares of Stock that may be issued under the Plan is
16,000,000 (reflecting Stock splits on October 26, 1999, October 24,
2000 and May 23, 2005).  In the event
that any award granted under the Plan denominated in shares for any reason
expires or is canceled, terminated or paid in cash, or shares of Stock subject
to forfeiture are forfeited to the Company, the shares allocable to such award
or such forfeited shares shall again be available for issuance under the
Plan.  Notwithstanding the foregoing, any
such shares shall be made subject to a new award only if the grant of such new
award and the issuance of such shares pursuant to such new award would not
cause the Plan or any award granted under the Plan to contravene Rule 16b-3.

5.             Adjustments
for Changes in Capital Structure. 
Appropriate adjustments shall be made in the number and class of shares
of Stock subject to the Plan, in the maximum number of shares set forth in
Section 7(f), and to any awards outstanding under the Plan, other than
Performance Units (as defined below), in the event of a stock dividend, stock
split, reverse stock split, recapitalization, combination, reclassification or
like change in the capital structure of the Company.  In the event a majority of the shares which
are of the same class as the shares that are subject to outstanding awards
under the Plan are exchanged for, converted into, or otherwise become shares of
another corporation (the “New Shares”),
the Company may unilaterally amend outstanding awards to provide that such
awards may be settled in New Shares.  In
the event of any such amendment, the number of shares shall be adjusted in a
fair and equitable manner.  Any and all
new, substituted or additional shares or Performance Shares (as defined below)
received by a Participant pursuant to this Section 5 will be subject to the
applicable restrictions set forth in the agreement evidencing an award as if
such shares or Performance Shares were part of the original award.

6.             Term of Plan.  The Plan shall continue in effect until
terminated by the Board or Committee or until all of the shares of Stock
available for issuance under the Plan have been issued and all restrictions on
such shares under the terms of the Plan and the agreements evidencing such
awards have lapsed.

7.             Performance
Awards.

(a)           Types of
Performance Awards.  The Committee
may from time to time grant awards under this Section 7 (“Performance
Awards”) which are Performance-Based Restricted Stock, Performance
Shares, or Performance Units. 
Performance Awards shall be evidenced by written agreements, in such
form as the Committee shall from time to time establish (each an “Award Agreement”), specifying the number of shares of Stock
or the dollar amount covered thereby, the performance goals established by the
Committee, the period in which such goals are to be met and the other terms,
conditions and restrictions of the award, which Award Agreements may
incorporate all or any of the terms of the Plan by reference.  The 

 3
 

Committee shall not require a Participant to make any
monetary payment (other than applicable tax withholding) as a condition of
receiving a Performance Award.

(i)            “Performance-Based Restricted Stock”
shall mean shares of Stock awarded to a Participant which, in accordance with
rules established by the Committee prior to the grant of such award, are
subject to forfeiture in full or in part or with respect to which additional
shares of Stock may be granted on the basis of the degree of attainment of
Performance Goals (as defined below) within a Performance Period (as defined
below).  Shares of Performance-Based
Restricted Stock shall be evidenced in such manner as the Committee may deem
appropriate, including by book-entry registration or issuance of one or more
stock certificates.  Any certificate
issued in respect of shares of Performance-Based Restricted Stock shall be
registered in the name of the Participant and shall bear an appropriate legend
referring to the terms, conditions, and restrictions applicable to such
award.  The Committee may require that
such certificates be held in the custody of the Company or other escrow agent
until the restrictions thereon lapse.

(ii)           “Performance Shares”
shall mean bookkeeping units, denominated in shares of Stock, awarded to a
Participant which, in accordance with rules established by the Committee prior
to the grant of such award, are subject to forfeiture in full or in part or
with respect to which additional shares of Stock may be granted on the basis of
the degree of attainment of Performance Goals (as defined below) within a
Performance Period (as defined below).

(iii)         “Performance Units”
shall mean bookkeeping units, denominated in dollar amounts, awarded to a
Participant which, in accordance with rules established by the Committee prior
to the grant of such award, are subject to forfeiture in full or in part or
with respect to which additional such units may be granted on the basis of the
degree of attainment of Performance Goals (as defined below) within a Performance
Period (as defined below).

(b)           Performance
Goals and Performance Period.  Unless
otherwise permitted in compliance with the requirements of Section 162(m) of
the Code with respect to “performance-based compensation,” the Committee shall
establish with respect to one or more of the Performance Factors set forth
below the target levels of attainment of such Performance Factors
(collectively, “Performance Goals”) which, when
measured at the end of the Performance Period (as defined below), in accordance
with the Performance Award Formula (as defined below), shall determine the
number of shares of Stock, if any, which shall become nonforfeitable and/or
issuable with respect to such Performance Award or the dollar amount, if any,
payable with respect to such Performance Award, and such Committee actions
shall occur no later than the earlier of (i) the date ninety (90) days after
the commencement of the applicable Performance Period or (ii) the date on which
25% of the Performance Period has elapsed, and, in any event, at a time when
the outcome of the Performance Goals remains substantially uncertain.  Once established, the Performance Goals and
the Performance Award Formula (as defined below) shall not be changed during the
Performance Period.  The Award Agreement
shall set forth the applicable Performance Goals, Performance Award Formula,
Performance Period, and the number of shares of Stock or dollar amount, as the
case may be, which may be earned by the Participant upon the attainment of the
Performance Goals at the end of the Performance Period.

 4
 

(i)            “Performance
Factors” shall have the same meanings as used in the Company’s financial
statements, or, if such terms are not used in the Company’s financial
statements, they shall have the meanings applied pursuant to generally accepted
accounting principles, or as used generally in the Company’s industry.  Performance Factors shall be calculated with
respect to the Company and each subsidiary corporation consolidated therewith
for financial reporting purposes or such division or other business unit as may
be selected by the Committee.  For
purposes of the Plan, the Performance Factors applicable to a Performance Award
shall be calculated in accordance with generally accepted accounting
principles, but prior to the accrual or payment of any Performance Award for
the same Performance Period and excluding the effect (whether positive or
negative) of any change in accounting standards or any extraordinary, unusual
or nonrecurring item, as determined by the Committee, occurring after the
establishment of the Performance Goals applicable to the Performance
Award.  Performance Factors may be one or
more of the following, as determined by the Committee:

(A)          growth in revenue;

(B)          growth in the market
price of the Stock;

(C)          operating margin;

(D)          gross margin;

(E)           operating income;

(F)           pre-tax profit;

(G)          earnings before
interest, taxes and depreciation;

(H)          net income;

(I)            total return on
shares of Stock relative to the increase in an appropriate index as may be
selected by the Committee;

(J)           earnings per share;

(K)          return on
stockholder equity;

(L)           return on net
assets;

(M)          expenses;

(N)          return on capital;

(O)          economic value
added;

(P)           market share; and

 5
 

(Q)          cash flow, as
indicated by book earnings before interest, taxes, depreciation and
amortization.

(ii)           “Performance
Period” shall mean a period established by the Committee, at the end of
which the degree of attainment of the Performance Goals is measured.  Performance Periods for different Performance
Awards, including Performance Awards made to the same Participant, need not be
consecutive.

(iii)         “Performance Award
Formula” shall mean, for any Performance Award, a formula or table
established by the Committee which provides the basis for computing the value
of a Performance Award at one or more threshold levels of attainment of the
applicable Performance Goal(s) measured at the end of the applicable
Performance Period.

(c)           Settlement
of Performance Awards.

(i)            Determination
of Final Value.  As soon as
practicable following the completion of the Performance Period applicable to a
Performance Award, the Committee shall certify in writing the extent to which
the applicable Performance Goals have been attained and the resulting final
value of the Performance Award earned by the Participant and to be paid upon
its settlement in accordance with the applicable Performance Award Formula.

(ii)           Discretionary
Adjustment of Performance Award Formula. 
In its discretion, the Committee may, either at the time it grants a
Performance Award or at any time thereafter, provide for the positive or
negative adjustment of the Performance Award Formula applicable to a
Performance Award granted to any Participant who is not a “covered employee”
within the meaning of Section 162(m) (a “Covered Employee”) to reflect
such Participant’s individual performance in his or her position with the
Company or such other factors as the Committee may determine.  If permitted under a Covered Employee’s Award
Agreement, the Committee shall have the discretion, on the basis of such
criteria as may be established by the Committee, to reduce some or all of the
value of the Performance Award that would otherwise be paid to the Covered
Employee upon its settlement notwithstanding the attainment of any Performance
Goal and the resulting value of the Performance Award determined in accordance
with the Performance Award Formula.  No
such reduction may result in an increase in the amount payable upon settlement
of another Participant’s Performance Award.

(iii)         Effect of Leaves
of Absence.  Unless otherwise
required by law, payment of the final value, if any, of a Performance Award
held by a Participant who has taken in excess of thirty (30) days of leaves of
absence during a Performance Period shall be prorated on the basis of the
number of days of the Participant’s service during the Performance Period
during which the Participant was not on a leave of absence.

(iv)          Notice to
Participants.  As soon as practicable
following the Committee’s determination and certification in accordance with
Section 7(c)(i), the Company shall notify each Participant of the determination
of the Committee.

 6
 

(v)            Payment in
Settlement of Performance Awards.  As
soon as practicable following the Committee’s determination and certification
in accordance with Section 7(c)(i), payment shall be made to each eligible
Participant (or such Participant’s legal representative or other person who
acquired the right to receive such payment by reason of the Participant’s
death) of the final value of the Participant’s Performance Award.  Payment of such amount shall be made in cash,
shares of Stock, or a combination thereof as determined by the Committee.  Unless otherwise provided in the Award
Agreement, payment shall be made in a lump sum. 
An Award Agreement may provide for deferred payment in a lump sum or in
installments.

(vi)          Provisions
Applicable to Payment in Shares.  If
payment is to be made in shares of Stock, the number of such shares shall be
determined by dividing the final value of the Performance Award by the value of
a share of Stock determined by the method specified in the Award
Agreement.  Such methods may include,
without limitation, the closing market price on a specified date (such as the
settlement date) or an average of market prices over a series of trading
days.  Shares of Stock issued in payment
of any Performance Award may be fully vested and freely transferable shares or
may be shares of Stock subject to further vesting conditions as provided in
Section 8.  Any shares subject to further
vesting conditions shall be evidenced by an appropriate agreement setting forth
the terms of a Performance Award and shall be subject to the provisions of
Section 8.

(d)           Effect of
Termination of Service.  The effect
of a Participant’s termination of Service on the Participant’s Performance
Award shall be as determined by the Committee, in its discretion, and set forth
in the Award Agreement.

(e)           Nontransferability
of Performance Awards.  Prior to
settlement in accordance with the provisions of the Plan, no Performance Award
may be subject in any manner to anticipation, alienation, sale, exchange,
transfer, assignment, pledge, encumbrance, or garnishment by creditors of the
Participant or the Participant’s beneficiary, except by will or by the laws of
descent and distribution.  All rights
with respect to a Performance Award granted to a Participant hereunder shall be
exercisable during his or her lifetime only by such Participant or the
Participant’s guardian or legal representative.

(f)            Maximum
Performance Award.  Subject to
adjustment as provided in Section 5, no Participant may be granted a
Performance Award in the form of Performance-Based Restricted Stock or
Performance Shares which could result in such Participant receiving more than
1,600,000 shares (reflecting Stock splits on October 26, 1999,
October 24, 2000 and May 23, 2005) of Stock free of the restrictions
imposed by this Section 7 with respect to any Performance Period or a
Performance Award in the form of Performance Units which could result in such
Participant receiving more than $10,000,000 with respect to any Performance
Period.  No Participant may be granted
more than one (1) Performance Award for the same Performance Period.

 7
 

8.             Restricted
Stock and Restricted Stock Unit Awards.

(a)           Restricted Stock.  The Committee may from time to time grant
shares of Stock under this Section 8(a) (“Restricted Stock”).  Restricted Stock awards shall be evidenced by
written agreements, in such form as the Committee shall from time to time
establish, specifying the number of shares of Stock covered thereby and the
terms, conditions and restrictions of the award, and which agreements may
incorporate all or any of the terms of the Plan by reference.  The number of shares of Restricted Stock
which a Participant may receive under the Plan shall be determined by the
Committee in its sole discretion.  Shares
of Restricted Stock shall be evidenced in such manner as the Committee may deem
appropriate, including by book-entry registration or issuance of one or more
stock certificates.  Any certificate
issued in respect of shares of Restricted Stock shall be registered in the name
of the Participant and shall bear an appropriate legend referring to the terms,
conditions, and restrictions applicable to such award.  The Committee may require that such
certificates be held in the custody of the Company or other escrow agent until
the restrictions thereon lapse.  The
Committee shall not require a Participant to make any monetary payment (other than
applicable tax withholding) as a condition of receiving Restricted Stock.

(b)           Restricted Stock
Units.  The Committee may from time
to time grant “Restricted Stock Units” under
this Section 8(b) Restricted Stock Units shall represent a contractual right to
receive one share of Stock (or cash, as determined in the sole discretion of
the Committee) in respect of each Restricted Stock Unit.  Restricted Stock Units shall be subject to
vesting based on service to the Company or a Participating Company or other
criteria, and to such other restrictions or conditions that may delay the
delivery of the shares of Stock (or their cash equivalent) subject to a
Restricted Stock Unit award after the vesting of such award.  Each Restricted Stock Unit award shall be
evidenced by a written Award Agreement, in such form as the Committee shall
from time to time establish, specifying the number of shares of Stock covered
thereby and the terms, conditions and restrictions of the award, which
agreements may incorporate all or any of the terms of the Plan by reference.

(i)            Consideration.  At the time of grant of a Restricted Stock
Unit award, the Committee will determine the consideration, if any, to be paid
by the Participant upon delivery of each share of Stock subject to the award.
The consideration to be paid (if any) by the Participant for each share of
Stock acquired pursuant to the award agreement shall be paid either: (i) in
cash upon delivery of each share of Stock subject to the award; or (ii) in any
other form of legal consideration that may be acceptable to the Committee, in
its discretion, subject to any restrictions under applicable law regarding
payment in respect of the “par value” of the Stock.

(ii)           Settlement.  A Restricted Stock
Unit award may be settled by the delivery of shares of Stock, their cash equivalent,
any combination thereof or in any other form of consideration, as determined by
the Committee.

(iii)         Termination of
Participant’s Service.  Except as
otherwise provided in the applicable Award Agreement, such portion of the
Restricted Stock Unit award that has not vested will be forfeited upon the
Participant’s termination of Service.

 8
 

9.             Voting Rights.  A Participant issued shares of Stock pursuant
to an award of Performance-Based Restricted Stock or Restricted Stock shall be
entitled to vote such shares.  A
Participant awarded Performance Shares or Restricted Stock Units shall not be
entitled to vote any shares of Stock represented by such Performance Shares or
Restricted Stock Units until the date of issuance of shares of Stock upon
settlement of such award.

10.          Dividends and
Other Distributions.  Except as
provided in this Section 10 or in Section 5, no Participant shall be entitled
to dividends or other distributions (collectively, “Dividends”)
with respect to shares of Stock subject to an award under the Plan for which
the record date is prior to the later of the date such shares are issued to the
Participant or the date on which such shares become nonforfeitable under the
terms of the agreement evidencing such award.

(a)           Performance-Based
Restricted Stock and Restricted Stock. 
With respect to shares of Stock issued pursuant to the award of
Performance-Based Restricted Stock or Restricted Stock, the Committee may, in
its sole discretion, provide either for the current payment of Dividends or the
accumulation and payment of Dividends to the extent that such shares become
nonforfeitable.

(b)           Performance
Shares and Restricted Stock Units. 
With respect to Performance Shares and Restricted Stock Units, the
Committee may, in its sole discretion, provide that dividend equivalents shall
not be paid or provide either for the current payment of dividend equivalents
or for the accumulation and payment of dividend equivalents to the extent that
the Performance Shares or Restricted Stock Units become nonforfeitable.

(c)           Performance
Units.  Dividend equivalents shall
not be paid with respect to Performance Units.

11.          Change
of Control.

(a)           Definition.  A “Change of Control”
shall be deemed to have occurred in the event any of the following occurs with
respect to the Company:

(i)            the direct or
indirect sale or exchange by the stockholders of the Company of all or
substantially all of the stock of the Company where the stockholders of the
Company before such sale or exchange do not retain, directly or indirectly, at
least a majority of the beneficial interest in the voting stock of the Company
after such sale or exchange;

(ii)           a merger or
consolidation in which the Company is not the surviving corporation;

(iii)         a merger or
consolidation in which the Company is the surviving corporation where the
stockholders of the Company before such merger or consolidation do not retain,
directly or indirectly, at least a majority of the beneficial interest in the
voting stock of the Company after such merger or consolidation;

 9
 

(iv)          the sale, exchange,
or transfer of all or substantially all of the assets of the Company (other
than a sale, exchange, or transfer to one (1) or more subsidiary corporations
of the Company); or

(v)            A liquidation or
dissolution of the Company.

(b)           Effect on
Performance Awards.  Notwithstanding
any other provision of the Plan to the contrary, each Participant granted a
Performance Award for a Performance Period that will not be completed as of the
date of a Change of Control shall be deemed to have earned and shall receive
immediately prior to the Change of Control, free of the restrictions imposed by
Section 7, award consideration as provided in Section 7(c) equal to the product
of (i) the target amount that may be earned under the Performance Award in accordance
with the terms of the Award Agreement and (ii) a fraction, the numerator of
which is the number of full and partial months that have elapsed since the
beginning of such Performance Period to the date on which the Change of Control
occurs, and the denominator of which is the total number of months in such
Performance Period.

(c)           Effect on
Restricted Stock and Restricted Stock Units.  Notwithstanding any other provision of the
Plan to the contrary, all forfeiture conditions and restrictions imposed under
outstanding agreements evidencing Restricted Stock and Restricted Stock Units
shall automatically lapse immediately prior to a Change of Control.

12.          Tax Withholding.  The Company shall have the right to deduct
from the payment of any award hereunder any federal, state, local or foreign
taxes required by law to be withheld with respect to such payment.  Alternatively, in its sole discretion, the
Company shall have the right to require the Participant, through payroll
withholding or otherwise, to make adequate provision for any such tax
withholding obligations of the Company arising in connection with such
award.  The Company shall have no
obligation to deliver cash and/or shares of Stock in payment of an award unless
the Company’s tax withholding obligations have been satisfied.

13.          Provision of
Information.  Each Participant shall
be given access to information concerning the Company equivalent to that
information generally made available to the Company’s common stockholders.

14.          Nontransferability
of Awards.  Prior to the payment of,
and lapse of all restrictions with respect to, an award under the Plan, no
award or any rights or interests therein may be assigned or transferred in any
manner except by will or by the laws of descent and distribution.

15.          Termination or
Amendment of Plan and Awards.  The
Committee or the Board may terminate or amend the Plan or any award under the
Plan at any time; provided, however, that no such termination or amendment may
adversely affect any outstanding award without the consent of the Participant,
unless such termination or amendment is necessary to comply with any applicable
law or government regulation.  An award
shall be considered as outstanding as of the effective date of the grant of
such award as determined by the Committee. 
Notwithstanding the foregoing, the approval of the Company’s
stockholders shall be sought for any amendment to 

 10
 

the Plan or an award for which the Committee deems
stockholder approval necessary in order to comply with Rule 16b-3.

16.          Continuation of
Initial Plan as to Outstanding Awards. 
Notwithstanding any other provision of the Plan to the contrary, the
terms of the Initial Plan shall remain in effect and apply to awards granted
pursuant to the Initial Plan.

17.          Section 409A.  Notwithstanding
anything in the Plan to the contrary, it is the intent of the Company that the
administration of the Plan, and the granting of all awards under the Plan,
shall be in accordance with Section 409A of the Code, and shall not cause the
acceleration of, or the imposition of the additional, taxes provided for in
Section 409A of the Code without the express consent of the affected
Participant.  Any award shall be granted,
deferred, paid out or modified under the Plan in a manner that shall be
intended to avoid the acceleration of taxation, or the imposition of penalty
taxation, under Section 409A upon a Participant absent the express consent of
the affected Participant. If it is reasonably determined by the Committee that
any amounts payable in respect of any Award under the Plan will be taxable to a
Participant under Section 409A of the Code prior to the payment and/or delivery
to such Participant of such amounts or will be subject to the acceleration of
taxation or the imposition of penalty taxation under Section 409A of the Code,
in either case without the consent of the Participant, the Committee may,
without the consent of the affected Participants, (i) adopt such amendments to
the Plan and related award, and appropriate policies and procedures, including
amendments and policies with retroactive effect, that the Committee determines
necessary or appropriate to preserve the intended tax treatment of the benefits
provided by the Plan and awards hereunder, and/or (ii) take such other actions
as the Committee determines necessary or appropriate to comply with the
requirements of Section 409A of the Code.

 

 11

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