Document:

2003 STOCK INCENTIVE PLAN, AS AMENDED

    Exhibit
      10.1

      CENTENE
        CORPORATION 

       

      Amended
        and Restated 

      2003
        Stock Incentive Plan 

      (as
        of April 24, 2007) 

       

      
        	
                1.

              	
                Purpose
                  

              

      

       

      The
        purpose of this Amended and Restated 2003 Stock Incentive Plan (the “Plan”) of
        Centene Corporation, a Delaware corporation (the “Company”), is to advance the
        interests of the Company’s stockholders by enhancing the Company’s ability to
        attract, retain and motivate persons who make (or are expected to make)
        important contributions to the Company by providing such persons with equity
        ownership opportunities and performance-based incentives and thereby better
        aligning the interests of such persons with those of the Company’s stockholders.
        Except where the context otherwise requires, the term “Company” shall include
        any of the Company’s present or future parent or subsidiary corporations as
        defined in Sections 424(e) or (f) of the Internal Revenue Code of 1986, as
        amended, and any regulations promulgated thereunder (the “Code”) and any other
        business venture (including joint venture or limited liability company) in
        which
        the Company has a controlling interest, as determined by the Board of Directors
        of the Company (the “Board”). 

       

      
        	
                2.

              	
                Eligibility
                  

              

      

       

      All
        of
        the Company’s employees, officers, directors, consultants and advisors are
        eligible to be granted options, restricted stock, restricted stock units
        and
        stock appreciation rights (each, an “Award”) under the Plan. Each person who has
        been granted an Award under the Plan shall be deemed a “Participant.”

       

      
        	
                3.

              	
                Administration
                  and Delegation 

              

      

       

      
        	
                 

              	
                (a)

              	
                Administration
                  by Board of Directors.
                  The Plan will be administered by the Board. The Board shall have
                  authority
                  to grant Awards and to adopt, amend and repeal such administrative
                  rules,
                  guidelines and practices relating to the Plan as it shall deem
                  advisable.
                  The Board may correct any defect, supply any omission or reconcile
                  any
                  inconsistency in the Plan or any Award in the manner and to the
                  extent it
                  shall deem expedient to carry the Plan into effect and it shall
                  be the
                  sole and final judge of such expediency. All decisions by the Board
                  shall
                  be made in the Board’s sole discretion and shall be final and binding on
                  all persons having or claiming any interest in the Plan or in any
                  Award.
                  No director or person acting pursuant to the authority delegated
                  by the
                  Board shall be liable for any action or determination relating
                  to or under
                  the Plan made in good faith. 

              

      

       

      
        	
                 

              	
                (b)

              	
                Appointment
                  of Committees.
                  To the extent permitted by applicable law, the Board may delegate
                  any or
                  all of its powers under the Plan to one or more committees or
                  subcommittees of the Board (a “Committee”). All references in the Plan to
                  the “Board” shall mean the Board or a Committee of the Board or the
                  executive officers referred to in Section 3(c) to the extent that the
                  Board’s powers or authority under the Plan have been delegated to such
                  Committee or executive officers. 

              

      

       

      
        	
                 

              	
                (c)

              	
                 

                Delegation
                  to Executive Officers.
                  To the extent permitted by applicable law, the Board may delegate
                  to one
                  or more executive officers of the Company the power to grant Awards
                  to
                  employees or officers of the Company or any of its present or future
                  subsidiary corporations and to exercise such other powers under
                  the Plan
                  as the Board may determine, provided
                  that the Board shall fix the terms of the Awards to be granted
                  by such
                  executive officers (including the exercise price of such Awards,
                  which may
                  

                 

              

      

       

      A-1
        

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 

              	
                include
                  a formula by which the exercise price will be determined) and the
                  maximum
                  number of shares subject to Awards that the executive officers
                  may grant;
                  provided
                  further,
                  however,
                  that
                  no executive officer shall be authorized to grant Awards to any
“executive
                  officer” of the Company, as defined by Rule 3b-7 under the Securities
                  Exchange Act of 1934, as amended (the “Exchange Act”), or to any “officer”
                  of the Company (as defined by Rule 16a-1 under the Exchange Act).
                  

                 

              

      

       

      
        	
                4.

              	
                Stock
                  Available for Awards 

              

      

       

      
        	
                 

              	
                (a)

              	
                Number
                  of Shares.
                  Subject to adjustment under Section 7, Awards may be made under the
                  Plan for up to 5,900,000 shares of common stock, $.001 par value
                  per
                  share, of the Company (“Common Stock”). For purposes of counting the
                  number of shares available for the grant of Awards under the Plan,
                  

              

      

       

      
        	
                 

              	
                (1)

              	
                shares
                  of Common Stock covered by independent SARs (as hereinafter defined)
                  shall
                  be counted against the number of shares available for the grant
                  of Awards
                  under the Plan; provided that independent SARs that may be settled
                  in cash
                  only shall not be so counted; 

              

      

       

      
        	
                 

              	
                (2)

              	
                if
                  any Award (A) expires or is terminated, surrendered or canceled
                  without
                  having been fully exercised or is forfeited in whole or in part
                  (including
                  as the result of shares of Common Stock subject to such Award being
                  repurchased by the Company at the original issuance price pursuant
                  to a
                  contractual repurchase right) or (B) results in any Common Stock
                  not being
                  issued (including as a result of an independent SAR that was settleable
                  either in cash or in stock actually being settled in cash), the
                  unused
                  Common Stock covered by such Award shall again be available for
                  the grant
                  of Awards under the Plan; provided, however, in the case of Incentive
                  Stock Options (as hereinafter defined), the foregoing shall be
                  subject to
                  any limitations under the Code; and

              

      

       

      
        	
                 

              	
                (3)

              	
                shares
                  of Common Stock tendered to the Company by a Participant to (A)
                  purchase
                  shares of Common Stock upon the exercise of an Award or (B) satisfy
                  tax
                  withholding obligations (including shares retained from the Award
                  creating
                  the tax obligation) shall not be added back to the number of shares
                  available for the future grant of Awards under the Plan. Shares
                  issued
                  under the Plan may consist in whole or in part of authorized but
                  unissued
                  shares or treasury shares. 

              

      

       

      
        	
                 

              	
                (b)

              	
                Sub-limits.
                  Subject to adjustment under Section 8, the following sub-limits on
                  the number of shares subject to Awards shall apply:
                  

              

      

       

      
        	
                 

              	
                (1)

              	
                Plan
                  Limit.
                  The maximum number of shares of Common Stock with respect to which
                  Awards
                  may be granted under the Plan in any fiscal year, commencing in
                  fiscal
                  year 2007, shall not exceed 4.19% of the number of shares of the
                  total outstanding shares of the Company as of January 1 of each
                  fiscal year. For purposes of calculating the number of shares granted
                  in a
                  year, restricted stock Awards will count as equivalent to (1) 1.5
                  option shares, if the Company's annual stock price volatility is 53%
                  or higher, (2) two option shares if the Company's annual stock
                  price volatility is between 25% and 52%, and (3) four option shares
                  if the Company's annual stock price volatility is less than
                  25%. Shares Awards granted to new employees in connection with
                  acquisitions made by the Company are excluded from the foregoing
                  calculation.

              

      

       

      
        	
                 

              	
                (2)

              	
                Restricted
                  Stock Award Limit. From
                  and after April 24, 2007, the maximum number of shares of Common
                  Stock with respect to which Restricted Stock Awards (as hereafter
                  defined)
                  may be granted under the Plan shall be 400,000.

              

      

       

      
        	
                 

              	
                (3)

              	
                Per-Participant
                  Limit. The
                  maximum number of shares of Common Stock with respect to which
                  Awards may
                  be granted to any Participant under the Plan shall be 1,500,000
                  per
                  calendar year. For purposes of the foregoing limit, the combination
                  of an
                  Option in tandem with a SAR shall be treated as a single Award.
                  The
                  per-Participant limit described in this Section 4(b)(3) shall be
                  construed
                  and applied consistently with Section 162(m) of the Code or any
                  successor
                  provision thereto (“Section 162(m)”).

              

      

       

      A-2
        

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                5.

              	
                Stock
                  Options 

              

      

       

      
        	
                 

              	
                (a)

              	
                General.
                  The Board may grant options to purchase Common Stock (each, an
“Option”)
                  and determine the number of shares of Common Stock to be covered
                  by each
                  Option, the exercise price of each Option and the conditions and
                  limitations applicable to the exercise of each Option, including
                  conditions relating to applicable federal or state securities laws,
                  as it
                  considers necessary or advisable. An Option that is not intended
                  to be an
                  Incentive Stock Option (as hereinafter defined) shall be designated
                  a
                  “Nonstatutory Stock Option.” 

              

      

       

      
        	
                 

              	
                (b)

              	
                Incentive
                  Stock Options.
                  An Option that the Board intends to be an “incentive stock option” as
                  defined in Section 422 of the Code (an “Incentive Stock Option”)
                  shall only be granted to employees of Centene Corporation, any
                  of Centene
                  Corporation’s present or future parent or subsidiary corporations as
                  defined in Sections 424(e) or (f) of the Code, and any other entities
                  the employees of which are eligible to receive Incentive Stock
                  Options
                  under the Code, and shall be subject to and shall be construed
                  consistently with the requirements of Section 422 of the Code. The
                  Company shall have no liability to a Participant, or any other
                  party, if
                  an Option (or any part thereof) that is intended to be an Incentive
                  Stock
                  Option is not an Incentive Stock Option.

              

      

       

      
        	
                 

              	
                (c)

              	
                Exercise
                  Price.
                  The Board shall establish the exercise price at the time each Option
                  is
                  granted and specify it in the applicable option agreement, provided,
                  however,
                  that the exercise price shall be not less than 100% of the fair
                  market
                  value of the Common Stock, as determined by the Board, at the time
                  the
                  Option is granted. 

              

      

       

      
        	
                 

              	
                (d)

              	
                Duration
                  of Options.
                  Each Option shall be exercisable at such times and subject to such
                  terms
                  and conditions as the Board may specify in the applicable option
                  agreement, provided,
                  however,
                  that no Option will be granted for a term in excess of 10 years.
                  

              

      

       

      
        	
                 

              	
                (e)

              	
                Exercise
                  of Option.
                  Options may be exercised by delivery to the Company of a written
                  notice of
                  exercise signed by the proper person or by any other form of notice
                  (including electronic notice) approved by the Board together with
                  payment
                  in full as specified in Section 5(f) for the number of shares for
                  which the Option is exercised. 

              

      

       

      
        	
                 

              	
                (f)

              	
                Payment
                  Upon Exercise.
                  Common Stock purchased upon the exercise of an Option granted under
                  the
                  Plan shall be paid for as follows: 

              

      

       

      
        	
                 

              	
                (1)

              	
                in
                  cash or by check, payable to the order of the Company;
                  

              

      

       

      
        	
                 

              	
                (2)

              	
                except
                  as the Board may, in its sole discretion, otherwise provide in
                  an option
                  agreement, by (i) delivery of an irrevocable and unconditional
                  undertaking by a creditworthy broker to deliver promptly to the
                  Company
                  sufficient funds to pay the exercise price and any required tax
                  withholding or (ii) delivery by the Participant to the Company of a
                  copy of irrevocable and unconditional instructions to a creditworthy
                  broker to deliver promptly to the Company cash or a check sufficient
                  to
                  pay the exercise price and any required tax withholding;
                  

              

      

       

      
        	
                 

              	
                (3)

              	
                when
                  the Common Stock is registered under the Exchange Act, by delivery
                  of
                  shares of Common Stock owned by the Participant valued at their
                  fair
                  market value as determined by (or in a manner approved by) the
                  Board in
                  good faith (“Fair Market Value”), provided (i) such method of payment is
                  then permitted under applicable law and (ii) such Common Stock,
                  if
                  acquired directly from the Company was owned by the Participant
                  at least
                  six months prior to such delivery; 

              

      

       

      
        	
                 

              	
                (4)

              	
                such
                  other lawful consideration as the Board may determine in its sole
                  discretion, provided that (i) at least an amount equal to the par
                  value of the Common Stock being purchased shall be paid in cash
                  and (ii)
                  no such consideration shall consist in whole or in part of a promissory
                  note or other evidence of indebtedness; or

              

      

       

      
        	
                 

              	
                (5)

              	
                by
                  any combination of the above permitted forms of payment.
                  

              

      

       

      A-3
        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 

              	
                (g)

              	
                Substitute
                  Options.
                  In connection with a merger or consolidation of an entity with
                  the Company
                  or the acquisition by the Company of property or stock of an entity,
                  the
                  Board may grant Options in substitution for any options or other
                  stock or
                  stock-based Awards granted by such entity or an affiliate thereof.
                  Substitute Options may be granted on such terms as the Board deems
                  appropriate in the circumstances, notwithstanding any limitations
                  on
                  Options contained in the other sections of this Section 5 or in
                  Section 2. 

              

      

       

      
        	
                6.

              	
                Restricted
                  Stock; Restricted Stock Units

              

      

       

      
        	
                 

              	
                (a)

              	
                Grants.
                  The Board may grant Awards entitling recipients to acquire shares
                  of
                  Common Stock (“Restricted Stock”), subject to the right of the Company to
                  repurchase all or part of such shares at their issue price or other
                  stated
                  or formula price (or to require forfeiture of such shares if issued
                  at no
                  cost) from the recipient in the event that conditions specified
                  by the
                  Board in the applicable Award are not satisfied prior to the end
                  of the
                  applicable restriction period or periods established by the Board
                  for such
                  Award. Instead of granting Awards for Restricted Stock, the Board
                  may
                  grant Awards entitling the recipient to receive shares of Common
                  Stock to
                  be delivered in the future (“Restricted Stock Units”) subject to such
                  terms and conditions on the delivery of the shares of Common Stock
                  as the
                  Board shall determine (each Award for Restricted Stock or Restricted
                  Stock
                  Units, a “Restricted Stock Award”). The Board may also permit an exchange
                  of unvested shares of Common Stock that have already been delivered
                  to a
                  Participant for an instrument evidencing the right to future delivery
                  of
                  Common Stock at such time or times, and on such conditions, as
                  the Board
                  shall specify. 

              

      

       

      
        	
                 

              	
                (b)

              	
                Terms
                  and Conditions.
                  The Board shall determine the terms and conditions of any such
                  Restricted
                  Stock Award, including the conditions for repurchase (or forfeiture)
                  and
                  the issue price, if any. 

              

      

       

      
        	
                 

              	
                (c)

              	
                Stock
                  Certificates.
                  Any stock certificates issued in respect of a Restricted Stock
                  Award, if
                  applicable, shall be registered in the name of the Participant
                  and, unless
                  otherwise determined by the Board, deposited by the Participant,
                  together
                  with a stock power endorsed in blank, with the Company (or its
                  designee).
                  At the expiration of the applicable restriction periods, the Company
                  (or
                  such designee) shall deliver the certificates no longer subject
                  to such
                  restrictions to the Participant or if the Participant has died,
                  to the
                  beneficiary designated, in a manner determined by the Board, by
                  a
                  Participant to receive amounts due or exercise rights of the Participant
                  in the event of the Participant’s death (the “Designated Beneficiary”). In
                  the absence of an effective designation by a Participant, Designated
                  Beneficiary shall mean the Participant’s estate.
                  

              

      

       

      
        	
                7.

              	
                Stock
                  Appreciation Rights 

              

      

       

      
        	
                 

              	
                (a)

              	
                General.
                  A
                  Stock Appreciation Right (“SAR”) is an Award entitling the holder, upon
                  exercise, to receive an amount in Common Stock determined by reference
                  to
                  appreciation, from and after the date of grant, in the fair market
                  value
                  of a share of Common Stock. The date as of which such appreciation
                  or
                  other measure is determined shall be the exercise date.
                  

              

      

       

      
        	
                 

              	
                (b)

              	
                Grants.
                  SARs may be granted in tandem with, or independently of, Options
                  granted
                  under the Plan. The Board shall establish the exercise price at
                  the time
                  each SAR is granted and specify it in the applicable SAR agreement,
                  provided, however, that the exercise price shall be not less than
                  100% of
                  the fair market value of the Common Stock, as determined by the
                  Board, at
                  the time the SAR is granted. 

              

      

       

      
        	
                 

              	
                (1)

              	
                 

                Tandem
                  Awards.
                  When SARs are expressly granted in tandem with Options, (i) the
                  SAR will
                  be exercisable only at such time or times, and to the extent, that
                  the
                  related Option is exercisable (except to the extent designated
                  by the
                  Board in connection with a Reorganization Event) and will be exercisable
                  in accordance with the procedure required for exercise of the related
                  Option; (ii) the 

                 

              

      

       

      A-4
        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 

              	
                SAR
                  will terminate and no longer be exercisable upon the termination
                  or
                  exercise of the related Option, except to the extent designated
                  by the
                  Board in connection with a Reorganization Event and except that
                  a SAR
                  granted with respect to less than the full number of shares covered
                  by an
                  Option will not be reduced until the number of shares as to which
                  the
                  related Option has been exercised or has terminated exceeds the
                  number of
                  shares not covered by the SAR; (iii) the Option will terminate
                  and no
                  longer be exercisable upon the exercise of the related SAR; and
                  (iv) the
                  SAR will be transferable only with the related Option. 

                 

              

      

       

      
        	
                 

              	
                (2)

              	
                Independent
                  SARs.
                  A
                  SAR not expressly granted in tandem with an Option will become
                  exercisable
                  at such time or times, and on such conditions, as the Board may
                  specify in
                  the SAR Award. 

              

      

       

      
        	
                 

              	
                (c)

              	
                Exercise.
                  SARs may be exercised by delivery to the Company of a written notice
                  of
                  exercise signed by the proper person or by any other form of notice
                  (including electronic notice) approved by the Board, together with
                  any
                  other documents required by the Board.

              

      

       

      
        	
                8.

              	
                Adjustments
                  for Changes in Common Stock and Certain Other Events
                  

              

      

       

      
        	
                 

              	
                (a)

              	
                Changes
                  in Capitalization.
                  In the event of any stock split, reverse stock split, stock dividend,
                  recapitalization, combination of shares, reclassification of shares,
                  spin-off or other similar change in capitalization or event, or
                  any
                  distribution to holders of Common Stock other than a normal cash
                  dividend,
                  (i) the number and class of securities available under the Plan,
                  (ii) the per-Participant limit set forth in Section 4(b),
                  (iii) the number and class of securities and exercise price per share
                  subject to each outstanding Option, and (iv) the repurchase price per
                  share subject to each outstanding Restricted Stock Award shall
                  be
                  appropriately adjusted by the Company (or substituted Awards may
                  be made,
                  if applicable) to the extent the Board shall determine, in good
                  faith,
                  that such an adjustment (or substitution) is necessary and appropriate.
                  If
                  this Section 8(a) applies and Section 8(c) also applies to any
                  event, Section 8(c) shall be applicable to such event, and this
                  Section 8(a) shall not be applicable.

              

      

       

      
        	
                 

              	
                (b)

              	
                Liquidation
                  or Dissolution.
                  In the event of a proposed liquidation or dissolution of the Company,
                  the
                  Board shall upon written notice to the Participants provide that
                  all then
                  unexercised Options will (i) become exercisable in full as of a
                  specified time at least 10 business days prior to the effective
                  date of
                  such liquidation or dissolution and (ii) terminate effective upon
                  such liquidation or dissolution, except to the extent exercised
                  before
                  such effective date. The Board may specify the effect of a liquidation
                  or
                  dissolution on any Restricted Stock Award granted under the Plan
                  at the
                  time of the grant. 

              

      

       

      
        	
                 

              	
                (c)

              	
                Reorganization
                  Events.
                  

              

      

       

      
        	
                 

              	
                (1)

              	
                Definition.
                  A
                  “Reorganization Event” shall mean: (a) any merger or consolidation of
                  the Company with or into another entity as a result of which all
                  of the
                  Common Stock of the Company is converted into or exchanged for
                  the right
                  to receive cash, securities or other property or (b) any exchange of
                  all of the Common Stock of the Company for cash, securities or
                  other
                  property pursuant to a share exchange transaction.
                  

              

      

       

      
        	
                 

              	
                (2)

              	
                 

                Consequences
                  of a Reorganization Event on Options.
                  Upon the occurrence of a Reorganization Event, or the execution
                  by the
                  Company of any agreement with respect to a Reorganization Event,
                  the Board
                  shall provide that all outstanding Options shall be assumed, or
                  equivalent
                  options shall be substituted, by the acquiring or succeeding corporation
                  (or an affiliate thereof). For purposes hereof, an Option shall
                  be
                  considered to be assumed if, following consummation of the Reorganization
                  Event, the Option confers the right to purchase, for each share
                  of Common
                  Stock subject to the Option immediately prior to the consummation
                  of the
                  Reorganization Event, the consideration (whether cash, securities
                  or other
                  property) received as a result of the 

                 

              

      

       

      A-5
        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 

              	
                Reorganization
                  Event by holders of Common Stock for each share of Common Stock
                  held
                  immediately prior to the consummation of the Reorganization Event
                  (and if
                  holders were offered a choice of consideration, the type of consideration
                  chosen by the holders of a majority of the outstanding shares of
                  Common
                  Stock); provided,
                  however,
                  that
                  if the consideration received as a result of the Reorganization
                  Event is
                  not solely common stock of the acquiring or succeeding corporation
                  (or an
                  affiliate thereof), the Company may, with the consent of the acquiring
                  or
                  succeeding corporation, provide for the consideration to be received
                  upon
                  the exercise of Options to consist solely of common stock of the
                  acquiring
                  or succeeding corporation (or an affiliate thereof) equivalent
                  in fair
                  market value to the per share consideration received by holders
                  of
                  outstanding shares of Common Stock as a result of the Reorganization
                  Event. 

                 

              

      

       

      Notwithstanding
        the foregoing, if the acquiring or succeeding corporation (or an affiliate
        thereof) does not agree to assume, or substitute for, such Options, then
        the
        Board shall, upon written notice to the Participants, provide that all then
        unexercised Options will become exercisable in full as of a specified time
        prior
        to the Reorganization Event and will terminate immediately prior to the
        consummation of such Reorganization Event, except to the extent exercised
        by the
        Participants before the consummation of such Reorganization Event; provided,
        however,
        that
        in
        the event of a Reorganization Event under the terms of which holders of Common
        Stock will receive upon consummation thereof a cash payment for each share
        of
        Common Stock surrendered pursuant to such Reorganization Event (the “Acquisition
        Price”), then the Board may instead provide that all outstanding Options shall
        terminate upon consummation of such Reorganization Event and that each
        Participant shall receive, in exchange therefore, a cash payment equal to
        the
        amount (if any) by which (A) the Acquisition Price multiplied by the number
        of shares of Common Stock subject to such outstanding Options (whether or
        not
        then exercisable), exceeds (B) the aggregate exercise price of such
        Options. To the extent all or any portion of an Option becomes exercisable
        solely as a result of the first sentence of this paragraph, upon exercise
        of
        such Option the Participant shall receive shares subject to a right of
        repurchase by the Company or its successor at the Option exercise price.
        Such
        repurchase right (1) shall lapse at the same rate as the Option would have
        become exercisable under its terms and (2) shall not apply to any shares
        subject to the Option that were exercisable under its terms without regard
        to
        the first sentence of this paragraph. 

       

      
        	
                 

              	
                (3)

              	
                Consequences
                  of a Reorganization Event on Restricted Stock Awards.
                  Upon the occurrence of a Reorganization Event, the repurchase and
                  other
                  rights of the Company under each outstanding Restricted Stock Award
                  shall
                  inure to the benefit of the Company’s successor and shall apply to the
                  cash, securities or other property that the Common Stock was converted
                  into or exchanged for pursuant to such Reorganization Event in
                  the same
                  manner and to the same extent as they applied to the Common Stock
                  subject
                  to such Restricted Stock Award. 

              

      

       

      
        	
                9.

              	
                General
                  Provisions Applicable to Awards

              

      

       

      
        	
                 

              	
                (a)

              	
                 

                Transferability
                  of Awards.
                  Awards shall not be sold, assigned, transferred, pledged or otherwise
                  encumbered by the person to whom they are granted, either voluntarily
                  or
                  by operation of law, except by will or the laws of descent and
                  distribution or, other than in the case of an Incentive Stock Option,
                  pursuant to a qualified domestic relations order, and, during the
                  life of
                  the Participant, shall be exercisable only by the Participant;
                  provided
                  that
                  the Board may permit or provide in an Award for the gratuitous
                  transfer of
                  the Award by the Participant to or for the benefit of any immediate
                  family
                  member, family trust or family partnership established solely for
                  the
                  benefit of the Participant and/or an immediate family member thereof
                  if,
                  with respect to such proposed transferee, the Company would be
                  eligible to
                  use a registration statement on Form S-8 for the registration of
                  the sale
                  of the Common Stock subject to such Award under the Securities
                  Act of
                  1933, as amended and provided
                  further
                  that the Company shall not be required to recognize any such transfer
                  until such time as the Participant and such permitted transferee
                  shall, as
                  a condition to such transfer, deliver to the Company a written
                  

                 

              

      

       

      A-6
        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 

              	
                instrument
                  in form and substance satisfactory to the Company confirming that
                  such
                  transferee shall be bound by all of the terms and conditions of
                  the Award.
                  References to a Participant, to the extent relevant in the context,
                  shall
                  include references to authorized transferees. 

                 

              

      

       

      
        	
                 

              	
                (b)

              	
                Documentation.
                  Each Award shall be evidenced in such form (written, electronic
                  or
                  otherwise) as the Board shall determine. Each Award may contain
                  terms and
                  conditions in addition to those set forth in the Plan.
                  

              

      

       

      
        	
                 

              	
                (c)

              	
                Board
                  Discretion.
                  Except as otherwise provided by the Plan, each Award may be made
                  alone or
                  in addition or in relation to any other Award. The terms of each
                  Award
                  need not be identical, and the Board need not treat Participants
                  uniformly. 

              

      

       

      
        	
                 

              	
                (d)

              	
                Termination
                  of Status.
                  The Board shall determine the effect on an Award of the disability,
                  death,
                  retirement, authorized leave of absence or other change in the
                  employment
                  or other status of a Participant and the extent to which, and the
                  period
                  during which, the Participant, the Participant’s legal representative,
                  conservator, guardian or Designated Beneficiary may exercise rights
                  under
                  the Award. 

              

      

       

      
        	
                 

              	
                (e)

              	
                Withholding.
                  Each Participant shall pay to the Company, or make provision satisfactory
                  to the Board for payment of, any taxes required by law to be withheld
                  in
                  connection with Awards to such Participant no later than the date
                  of the
                  event creating the tax liability. Except as the Board may otherwise
                  provide in an Award, when the Common Stock is registered under
                  the
                  Exchange Act, Participants may satisfy such tax obligations in
                  whole or in
                  part by delivery of shares of Common Stock, including shares retained
                  from
                  the Award creating the tax obligation, valued at their Fair Market
                  Value;
                  provided,
                  however,
                  that the total tax withholding where stock is being used to satisfy
                  such
                  tax obligations cannot exceed the Company’s minimum statutory withholding
                  obligations (based on minimum statutory withholding rates for federal
                  and
                  state tax purposes, including payroll taxes, that are applicable
                  to such
                  supplemental taxable income). The Company may, to the extent permitted
                  by
                  law, deduct any such tax obligations from any payment of any kind
                  otherwise due to a Participant. 

              

      

       

      
        	
                 

              	
                (f)

              	
                Amendment
                  of Award.
                  The Board may amend, modify or terminate any outstanding Award,
                  including
                  but not limited to, substituting therefore another Award of the
                  same or a
                  different type, changing the date of exercise or realization, and
                  converting an Incentive Stock Option to a Nonstatutory Stock Option,
                  provided
                  that the Participant’s consent to such action shall be required unless the
                  Board determines that the action, taking into account any related
                  action,
                  would not materially and adversely affect the Participant.
                  

              

      

       

      
        	
                 

              	
                (g)

              	
                Conditions
                  on Delivery of Stock.
                  The Company will not be obligated to deliver any shares of Common
                  Stock
                  pursuant to the Plan or to remove restrictions from shares previously
                  delivered under the Plan until (i) all conditions of the Award have
                  been met or removed to the satisfaction of the Company, (ii) in the
                  opinion of the Company’s counsel, all other legal matters in connection
                  with the issuance and delivery of such shares have been satisfied,
                  including any applicable securities laws and any applicable stock
                  exchange
                  or stock market rules and regulations, and (iii) the Participant has
                  executed and delivered to the Company such representations or agreements
                  as the Company may consider appropriate to satisfy the requirements
                  of any
                  applicable laws, rules or regulations.

              

      

       

      
        	
                 

              	
                (h)

              	
                Vesting
                  of Awards.
                  No Award granted under the Plan after July 19, 2005 to any employee
                  of the Company may vest or become exercisable in increments greater
                  than
                  one-third of the total Award in any period of twelve consecutive
                  months
                  following the date of grant. 

              

      

       

      
        	
                 

              	
                (i)

              	
                 

                Repricing
                  of Awards.
                  Unless such action is approved by the Company’s stockholders: (1) no
                  outstanding Award granted under the Plan may be amended to provide
                  for an
                  exercise price per share that is less than the then-existing exercise
                  price per share of such outstanding Award (other than 

                 

              

      

       

      A-7
        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 

              	
                adjustments
                  pursuant to Section 8), (2) the Board may not cancel any
                  outstanding Award (whether or not granted under the Plan) and grant
                  in
                  substitution therefore new Awards under the Plan covering the same
                  or a
                  different number of shares of Common Stock and having an exercise
                  price
                  per share less than the then-existing exercise price per share
                  of the
                  cancelled Award, and (3) the Board may not repurchase any outstanding
                  Award granted under the Plan at a price greater than the current
                  fair
                  market value of the existing award. 

                 

              

      

       

      
        	
                10.

              	
                Miscellaneous
                  

              

      

       

      
        	
                 

              	
                (a)

              	
                No
                  Right To Employment or Other Status.
                  No person shall have any claim or right to be granted an Award,
                  and the
                  grant of an Award shall not be construed as giving a Participant
                  the right
                  to continued employment or any other relationship with the Company.
                  The
                  Company expressly reserves the right at any time to dismiss or
                  otherwise
                  terminate its relationship with a Participant free from any liability
                  or
                  claim under the Plan, except as expressly provided in the applicable
                  Award. 

              

      

       

      
        	
                 

              	
                (b)

              	
                No
                  Rights As Stockholder.
                  Subject to the provisions of the applicable Award, no Participant
                  or
                  Designated Beneficiary shall have any rights as a stockholder with
                  respect
                  to any shares of Common Stock to be distributed with respect to
                  an Award
                  until becoming the record holder of such shares. Notwithstanding
                  the
                  foregoing, in the event the Company effects a split of the Common
                  Stock by
                  means of a stock dividend and the exercise price of and the number
                  of
                  shares subject to such Option are adjusted as of the date of the
                  distribution of the dividend (rather than as of the record date
                  for such
                  dividend), then an optionee who exercises an Option between the
                  record
                  date and the distribution date for such stock dividend shall be
                  entitled
                  to receive, on the distribution date, the stock dividend with respect
                  to
                  the shares of Common Stock acquired upon such Option exercise,
                  notwithstanding the fact that such shares were not outstanding
                  as of the
                  close of business on the record date for such stock dividend.
                  

              

      

       

      
        	
                 

              	
                (c)

              	
                Effective
                  Date and Term of Plan.
                  The Plan shall become effective on the date on which it is adopted
                  by the
                  Board, but no Award granted to a Participant that is intended to
                  comply
                  with Section 162(m) shall become exercisable, vested or realizable,
                  as applicable to such Award, unless and until the Plan has been
                  approved
                  by the Company’s stockholders to the extent stockholder approval is
                  required by Section 162(m) in the manner required under
                  Section 162(m), including the vote required under
                  Section 162(m). No Awards shall be granted under the Plan after the
                  completion of ten years from the earlier of (i) the date on which the
                  Plan was adopted by the Board or (ii) the date the Plan was approved
                  by the Company’s stockholders, but Awards previously granted may extend
                  beyond that date. 

              

      

       

      
        	
                 

              	
                (d)

              	
                Amendment
                  of Plan.
                  The Board may amend, suspend or terminate the Plan or any portion
                  thereof
                  at any time, provided
                  that (i) any “material revision” to the Plan (as defined in the New
                  York Stock Exchange Listed Company Manual, as in effect as of
                  July 22, 2005) must be approved by the Company’s stockholders prior
                  to such revision becoming effective and (ii) to the extent required
                  by Section 162(m), no Award granted to a Participant that is intended
                  to comply with Section 162(m) after the date of such amendment shall
                  become exercisable, realizable or vested, as applicable to such
                  Award,
                  unless and until such amendment shall have been approved by the
                  Company’s
                  stockholders if required by Section 162(m), including the vote
                  required under Section 162(m).

              

      

       

      
        	
                 

              	
                (e)

              	
                Governing
                  Law.
                  The provisions of the Plan and all Awards made hereunder shall
                  be governed
                  by and interpreted in accordance with the laws of the State of
                  Delaware,
                  without regard to any applicable conflicts of law.
                  

              

      

       

      A-82007 LONG-TERM INCENTIVE PLAN

    Exhibit
      10.2

    Centene
      Corporation 

    2007
      Long-Term Incentive Plan 

     

    Effective
      April 24,
      2007 

     

     

     

    B-1
      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    

     

    Contents
      

     

    
      	 	 	 
	
               

              Article
                1. Establishment, Purpose, and Duration

            	
                

            	
              B-3

            
	
              Article
                2. Definitions

            	
                

            	
              B-3

            
	
              Article
                3. Administration

            	
                

            	
              B-6

            
	
              Article
                4. Adjustments in Awards

            	
                

            	
              B-6

            
	
              Article
                5. Eligibility and Participation

            	
                

            	
              B-7

            
	
              Article
                6. Cash-Based Awards

            	
                

            	
              B-7

            
	
              Article
                7. Transferability of Awards

            	
                

            	
              B-8

            
	
              Article
                8. Performance Measures

            	
                

            	
              B-8

            
	
              Article
                9. Covered Employee Annual Incentive Award

            	
                

            	
              B-9

            
	
              Article
                10. Beneficiary Designation

            	
                

            	
              B-9

            
	
              Article
                11. Rights of Participants

            	
                

            	
              B-10

            
	
              Article
                12. Amendment, Modification, Suspension, and Termination

            	
                

            	
              B-10

            
	
              Article
                13. Tax Withholding

            	
                

            	
              B-10

            
	
              Article
                14. Successors

            	
                

            	
              B-11

            
	
              Article
                15. General Provisions

            	
                

            	
              B-11

            

    

     

     

    B-2

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Centene
      Corporation 

    2007
      Long-Term Incentive Plan 

     

    Article
      1. Establishment, Purpose, and Duration 

     

    
      	
               

            	
              1.1

            	
              Establishment.
                Centene Corporation, a Delaware corporation (hereinafter referred
                to as
                the “Company”), establishes an incentive compensation plan to be known as
                the Centene Corporation 2007 Long-Term Incentive Plan (hereinafter
                referred to as the “Plan”), as set forth in this document.
                

            

    

     

    
      	
               

            	
                  

            	
              This
                Plan permits the grant of Cash-Based Awards.

            

    

     

    
      	
               

            	
                  

            	
              This
                Plan shall become effective upon shareholder approval (the “Effective
                Date”) and shall remain in effect as provided in Section 1.3 hereof.
                

            

    

     

    
      	
               

            	
              1.2

            	
              Purpose
                of this Plan.
                The purpose of this Plan is to provide a means whereby Employees
                of the
                Company develop a sense of proprietorship and personal involvement
                in the
                development and financial success of the Company, and to encourage
                them to
                devote their best efforts to the business of the Company, thereby
                advancing the interests of the Company and its shareholders. A further
                purpose of this Plan is to provide a means through which the Company
                may
                attract able individuals to become Employees of the Company and to
                retain
                key Employees of the Company. 

            

    

     

    
      	
               

            	
              1.3

            	
              Duration
                of this Plan.
                Unless sooner terminated as provided herein, this Plan shall terminate
                ten
                (10) years from the Effective Date. After this Plan is terminated, no
                Awards may be granted but Awards previously granted shall remain
                outstanding in accordance with their applicable terms and conditions
                and
                this Plan’s terms and conditions. 

            

    

     

    Article
      2. Definitions 

     

    Whenever
      used in this Plan, the following terms shall have the meanings set forth below,
      and when the meaning is intended, the initial letter of the word shall be
      capitalized. 

     

    
      	
               

            	
              2.1

            	
              “Affiliate”
                shall mean any corporation or other entity (including, but not limited
                to,
                a partnership or a limited liability company), that is affiliated
                with the
                Company through stock or equity ownership or otherwise, and is designated
                as an Affiliate for purposes of this Plan by the Committee.
                

            

    

     

    
      	
               

            	
              2.2

            	
              “Award”
                means, individually or collectively, a grant under this Plan of
                Cash-Based Awards or Covered Employee Annual Incentive Awards, subject
                to
                the terms of this Plan. 

            

    

     

    
      	
               

            	
              2.3

            	
              “Award
                Agreement”
                means either (i) a written agreement entered into by the Company and
                a Participant setting forth the terms and provisions applicable to
                an
                Award granted under this Plan, or (ii) a written or electronic
                statement issued by the Company to a Participant describing the terms
                and
                provisions of such Award, including any amendment or modification
                thereof.
                The Committee may provide for the use of electronic, internet or
                other
                non-paper Award Agreements, and the use of electronic, internet or
                other
                non-paper means for the acceptance thereof and actions thereunder
                by a
                Participant. 

            

    

     

    
      	
               

            	
              2.4

            	
              “Beneficial
                Owner”
                or
                “Beneficial
                Ownership”
                shall have the meaning ascribed to such term in Rule 13d-3 of the
                General
                Rules and Regulations under the Exchange Act.
                

            

    

     

    
      	
               

            	
              2.5

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

            

    

     

    
      	
               

            	
              2.6

            	
              “Cash-Based
                Award”
                means an Award, denominated in cash, granted to a Participant as
                described
                in Article 6. 

            

    

     

    B-3
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              2.7

            	
              “Cause”
                means,
                unless otherwise specified in an Award Agreement or in an applicable
                employment agreement between the Company and a Participant, with
                respect
                to any Participant, as determined by the Committee in its sole discretion:
                

            

    

     

    
      	
               

            	
              (a)

            	
              Willful
                failure to substantially perform his or her duties as an Employee
                (for
                reasons other than physical or mental illness) or Director after
                reasonable notice to the Participant of that failure;
                

            

    

     

    
      	
               

            	
              (b)

            	
              Misconduct
                that materially injures the Company or any Subsidiary or Affiliate;
                

            

    

     

    
      	
               

            	
              (c)

            	
              Conviction
                of, or entering into a plea of nolo contendere to, a felony; or
                

            

    

     

    
      	
               

            	
              (d)

            	
              Breach
                of any written covenant or agreement with the Company or any Subsidiary
                or
                Affiliate. 

            

    

     

    
      	
               

            	
              2.8

            	
              “Change
                of Control”
                means any of the following events: 

            

    

     

    
      	
               

            	
              (a)

            	
              The
                acquisition by any one person, or more than one person acting as
                a group
                (as defined in paragraph (g)(5)(v)(B) of 26 CFR §1.409A-3), acquires
                ownership of stock of the Company that, together with stock held
                by such
                person or group, constitutes more than fifty (50) percent of the
                total fair market value or total voting power of the stock of the
                Company.
                However, if any one person, or more than one person acting as a group,
                is
                considered to own more than fifty (50) percent of the total fair
                market value or total voting power of the stock of the Company, the
                acquisition of additional stock by the same person or persons is
                not
                considered to cause a Change of Control. An increase in the percentage
                of
                stock owned by any one person, or persons acting as a group, as a
                result
                of a transaction in which the Company acquires its stock in exchange
                for
                property will be treated as an acquisition of stock for purposes
                of this
                section (a); 

            

    

     

    
      	
               

            	
              (b)

            	
              A
                majority of members of the Board is replaced during any 12-month
                period by
                directors whose appointment or election is not endorsed by a majority
                of
                the members of the Company's Board prior to the date of the appointment
                or
                election; or 

            

    

     

    
      	
               

            	
              (c)

            	
              The
                acquisition by any one person, or more than one person acting as
                a group
                (as defined in paragraph (g)(5)(v)(B) of 26 CFR §1.409A-3), acquires (or
                has acquired during the 12- month period ending on the date of the
                most
                recent acquisition by such person or persons) assets from the Company
                that
                have a total gross fair market value equal to or more than forty
                (40) percent of the total gross fair market value of all of the
                assets of the Company immediately prior to such acquisition or
                acquisitions. For purposes of this paragraph (c), gross fair market
                value
                means the value of the assets of the Company, or the value of the
                assets
                being disposed of, determined without regard to any liabilities associated
                with such assets. 

            

    

     

    
      	
               

            	
              2.9

            	
              “Code”
                means the U.S. Internal Revenue Code of 1986, as amended from time
                to
                time. For purposes of this Plan, references to sections of the Code
                shall
                be deemed to include references to any applicable regulations thereunder
                and any successor or similar provision.

            

    

     

    
      	
               

            	
              2.10

            	
              “Committee”
                means the Compensation Committee of the Board or a subcommittee thereof,
                or any other committee designated by the Board to administer this
                Plan.
                The members of the Committee shall be appointed from time to time
                by and
                shall serve at the discretion of the Board. If the Committee does
                not
                exist or cannot function for any reason, the Board may take any action
                under the Plan that would otherwise be the responsibility of the
                Committee. 

            

    

     

    
      	
               

            	
              2.11

            	
              “Company”
                means Centene Corporation, a Delaware corporation, and any successor
                thereto as provided in Article 14 herein.

            

    

     

    
      	
               

            	
              2.12

            	
              “Consolidated
                Operating Earnings”
                means the consolidated earnings before income taxes of the Company,
                computed in accordance with generally accepted accounting principles,
                but
                shall exclude the effects of Extraordinary Items.
                

            

    

     

    B-4
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              2.13

            	
              “Covered
                Employee”
                means any Employee who is or may become a “Covered Employee,” as defined
                in Code Section 162(m), and who is designated, either as an
                individual Employee or class of Employees, by the Committee within
                the
                shorter of (i) ninety (90) days after the beginning of the
                Performance Period, or (ii) twenty-five percent (25%) of the
                Performance Period has elapsed, as a “Covered Employee” under this Plan
                for such applicable Performance Period.

            

    

     

    
      	
               

            	
              2.14

            	
              “Covered
                Employee Annual Incentive Award” means
                an Award granted to a Covered Employee as described in Article 9.
                

            

    

     

    
      	
               

            	
              2.15

            	
              “Effective
                Date”
                has the meaning set forth in Section 1.1.

            

    

     

    
      	
               

            	
              2.16

            	
              “Employee”
                means any individual performing services for the Company, an Affiliate,
                or
                a Subsidiary and designated as an employee of the Company, its Affiliates,
                and/or its Subsidiaries on the payroll records thereof. An Employee
                shall
                not include any individual during any period he or she is classified
                or
                treated by the Company, Affiliate, and/or Subsidiary as an independent
                contractor, a consultant, or any employee of an employment, consulting,
                or
                temporary agency or any other entity other than the Company, Affiliate,
                and/or Subsidiary, without regard to whether such individual is
                subsequently determined to have been, or is subsequently retroactively
                reclassified as a common-law employee of the Company, Affiliate,
                and/or
                Subsidiary during such period. 

            

    

     

    
      	
               

            	
              2.17

            	
              “Exchange
                Act”
                means the Securities Exchange Act of 1934, as amended from time to
                time,
                or any successor act thereto. 

            

    

     

    
      	
               

            	
              2.18

            	
              “Extraordinary
                Items”
                means (i) extraordinary, unusual, and/or nonrecurring items of gain
                or loss; (ii) gains or losses on the disposition of a business;
                (iii) changes in tax or accounting regulations or laws; or
                (iv) the effect of a merger or acquisition, all of which must be
                identified in the audited financial statements, including footnotes,
                or
                Management Discussion and Analysis section of the Company’s annual report.
                

            

    

     

    
      	
               

            	
              2.19

            	
              “Insider”
                shall mean an individual who is, on the relevant date, an officer,
                or
                Director of the Company, or a more than ten percent
                (10%) Beneficial Owner of any class of the Company’s equity
                securities that is registered pursuant to Section 12 of the Exchange
                Act, as determined by the Board in accordance with Section 16 of the
                Exchange Act. 

            

    

     

    
      	
               

            	
              2.20

            	
              “Net
                Income” means
                the consolidated net income before taxes for the Plan Year, as reported
                in
                the Company’s annual report to shareholders or as otherwise reported to
                shareholders. 

            

    

     

    
      	
               

            	
              2.21

            	
              “Operating
                Cash Flow”
                means cash flow from operating activities as defined in Statement
                of
                Financial Accounting Standard No. 95, “Statement of Cash Flows.”
                

            

    

     

    
      	
               

            	
              2.22

            	
              “Participant”
                means any eligible individual as set forth in Article 5 to whom an
                Award
                is granted. 

            

    

     

    
      	
               

            	
              2.23

            	
              “Performance-Based
                Compensation”
                means compensation under an Award that is intended to satisfy the
                requirements of Code Section 162(m) for certain performance-based
                compensation paid to Covered Employees. Notwithstanding the foregoing,
                nothing in this Plan shall be construed to mean that an Award which
                does
                not satisfy the requirements for performance-based compensation under
                Code
                Section 162(m) does not constitute performance-based compensation for
                other purposes, including Code Section 409A.
                

            

    

     

    
      	
               

            	
              2.24

            	
              “Performance
                Measures”
                means measures as described in Article 8 on which the performance
                goals
                are based and which are approved by the Company’s shareholders pursuant to
                this Plan in order to qualify Awards as Performance-Based Compensation.
                

            

    

     

    B-5
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      	
               

            	
              2.25

            	
              “Performance
                Period”
                means the period of time during which the performance goals must
                be met in
                order to determine the degree of payout and/or vesting with respect
                to an
                Award. 

            

    

     

    
      	
               

            	
              2.26

            	
              “Plan”
                means the Centene Corporation 2007 Long-Term Incentive Plan.
                

            

    

     

    
      	
               

            	
              2.27

            	
              “Plan
                Year” means
                the respective calendar year. 

            

    

     

    
      	
               

            	
              2.28

            	
              “Subsidiary”
                means any corporation or other entity, whether domestic or foreign,
                in
                which the Company has or obtains, directly or indirectly, a proprietary
                interest of more than fifty percent (50%) by reason of stock
                ownership or otherwise. 

            

    

     

    Article
      3. Administration 

     

    
      	
               

            	
              3.1

            	
              General.
                The Committee shall be responsible for administering this Plan, subject
                to
                this Article 3 and the other provisions of this Plan. The Committee
                may
                employ attorneys, consultants, accountants, agents, and other individuals,
                any of whom may be an Employee, and the Committee, the Company, and
                its
                officers and Directors shall be entitled to rely upon the advice,
                opinions, or valuations of any such individuals. All actions taken
                and all
                interpretations and determinations made by the Committee shall be
                final
                and binding upon the Participants, the Company, and all other interested
                individuals. 

            

    

     

    
      	
               

            	
              3.2

            	
              Authority
                of the Committee.
                The Committee shall have full and exclusive discretionary power to
                interpret the terms and the intent of this Plan and any Award Agreement
                or
                other agreement or document ancillary to or in connection with this
                Plan,
                to determine eligibility for Awards and to adopt such rules, regulations,
                forms, instruments, and guidelines for administering this Plan as
                the
                Committee may deem necessary or proper. Such authority shall include,
                but
                not be limited to, selecting Award recipients, establishing all Award
                terms and conditions, including the terms and conditions set forth
                in
                Award Agreements, granting Awards as an alternative to or as the
                form of
                payment for grants or rights earned or due under compensation plans
                or
                arrangements of the Company, construing any ambiguous provision of
                the
                Plan or any Award Agreement, and, subject to Article 12 adopting
                modifications and amendments to this Plan or any Award Agreement,
                including without limitation, any that are necessary to comply with
                the
                laws of the countries and other jurisdictions in which the Company,
                its
                Affiliates, and/or its Subsidiaries operate.

            

    

     

    
      	
               

            	
              3.3

            	
              Delegation.
                The Committee may delegate to one or more of its members or to one
                or more
                officers of the Company, and/or its Subsidiaries and Affiliates or
                to one
                or more agents or advisors such administrative duties or powers as
                it may
                deem advisable, and the Committee or any individuals to whom it has
                delegated duties or powers as aforesaid may employ one or more individuals
                to render advice with respect to any responsibility the Committee
                or such
                individuals may have under this Plan. The Committee may, by resolution,
                authorize one or more officers of the Company to do one or both of
                the
                following on the same basis as can the Committee: (a) designate
                Employees to be recipients of Awards; determine the size of any such
                Awards; provided, however, (i) the Committee shall not delegate such
                responsibilities to any such officer for Awards granted to an Employee
                who
                is considered an Insider; (ii) the resolution providing such
                authorization sets forth the total number of Awards such officer(s)
                may
                grant; and (iii) the officer(s) shall report periodically to the
                Committee regarding the nature and scope of the Awards granted pursuant
                to
                the authority delegated. 

            

    

     

    Article
      4. Adjustments in Awards 

     

    In
      the
      event of any corporate event or transaction (including, but not limited to,
      a
      change in the Shares of the Company or the capitalization of the Company) such
      as a merger, consolidation, reorganization, recapitalization, separation,
      partial or complete liquidation, stock dividend, stock split, reverse stock
      split, split up, spin-off, or 

     

    B-6
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    other
      distribution of stock or property of the Company, combination of Shares,
      exchange of Shares, dividend in-kind, or other like change in capital structure,
      the Committee shall make appropriate adjustments in the terms of any Awards
      under this Plan to reflect or relate to such changes or distributions and to
      modify any other terms of outstanding Awards, including modifications of
      performance goals and changes in the length of Performance Periods.
      Notwithstanding anything herein to the contrary, following a Change in Control
      the Committee may not take any such action as described in this Article 4 if
      such action would result in a violation of the requirements of Code
      Section 409A. The determination of the Committee as to the foregoing
      adjustments, if any, shall be conclusive and binding on Participants under
      this
      Plan. 

     

    Subject
      to the provisions of Article 12 and notwithstanding anything else herein to
      the
      contrary, the Committee may authorize the issuance or assumption of benefits
      under this Plan in connection with any merger, consolidation, acquisition of
      property or stock, or reorganization upon such terms and conditions as it may
      deem appropriate, subject to compliance with the rules under Code
      Section 409A, where applicable. 

     

    Article
      5. Eligibility and Participation 

     

    
      	
               

            	
              5.1

            	
              Eligibility.
                Individuals eligible to participate in this Plan include all Employees.
                

            

    

     

    
      	
               

            	
              5.2

            	
              Actual
                Participation.
                Subject to the provisions of this Plan, the Committee may, from time
                to
                time, select from all eligible individuals, those individuals to
                whom
                Awards shall be granted and shall determine, in its sole discretion,
                the
                nature of, any and all terms permissible by law, and the amount of
                each
                Award. 

            

    

     

    Article
      6. Cash-Based Awards 

     

    
      	
               

            	
              6.1

            	
              Grant
                of Cash-Based Awards.
                Subject to the terms and provisions of the Plan, the Committee, at
                any time and from time to time, may grant Cash-Based Awards to
                Participants in such amounts and upon such terms as the Committee
                may
                determine. 

            

    

     

    
      	
               

            	
              6.2

            	
              Value
                of Cash-Based Awards.
                Each Cash-Based Award shall specify a payment amount or payment range
                as
                determined by the Committee. The Committee may establish performance
                goals
                in its discretion. If the Committee exercises its discretion to establish
                performance goals, the number and/or value of Cash-Based Awards that
                will
                be paid out to the Participant will depend on the extent to which
                the
                performance goals are met. 

            

    

     

    
      	
               

            	
              6.3

            	
              Payment
                of Cash-Based Awards.
                Payment, if any, with respect to a Cash-Based Award shall be made
                in
                accordance with the terms of the Award, in cash or Shares as the
                Committee
                determines. 

            

    

     

    
      	
               

            	
              6.4

            	
              Termination
                of Employment.
                The Committee shall determine the extent to which the Participant
                shall
                have the right to receive Cash-Based Awards following termination
                of the
                Participant’s employment with or provision of services to the Company, its
                Affiliates, and/or its Subsidiaries, as the case may be. Such provisions
                shall be determined in the sole discretion of the Committee, such
                provisions may be included in an agreement entered into with each
                Participant, but need not be uniform among all Awards of Cash-Based
                Awards
                issued pursuant to the Plan, and may reflect distinctions based on
                the
                reasons for termination. 

            

    

     

    
      	
               

            	
              6.5

            	
              Change
                of Control. The
                Committee shall determine the extent to which the Participant shall
                have
                the right to receive Cash-Based Awards following a Change of Control.
                Such
                provisions shall be determined in the sole discretion of the Committee,
                such provisions may be included in an agreement entered into with
                each
                Participant, but need not be uniform among all Awards of Cash-Based
                Awards
                issued pursuant to the Plan. 

            

    

     

    B-7
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Article
      7. Transferability of Awards 

     

    Except
      as
      otherwise provided in a Participant’s Award Agreement or otherwise determined at
      any time by the Committee, no Award granted under this Plan may be sold,
      transferred, pledged, assigned, or otherwise alienated or hypothecated, other
      than by will or by the laws of descent and distribution; provided that the
      Board
      or Committee may permit further transferability, on a general or a specific
      basis, and may impose conditions and limitations on any permitted
      transferability. 

     

    Article
      8. Performance Measures 

     

    
      	
               

            	
              8.1

            	
              Performance
                Measures.
                The performance goals upon which the payment or vesting of an Award
                to a
                Covered Employee (other than a Covered Employee Annual Incentive
                Award
                awarded or credited pursuant to Article 9) that is intended to qualify
                as
                Performance-Based Compensation shall be limited to the following
                Performance Measures: 

            

    

     

    
      	
               

            	
              (a)

            	
              Net
                earnings or net income (before or after taxes);

            

    

    

    
      	
               

            	
              (b)

            	
              Earnings
                per share; 

            

    

    

    
      	
               

            	
              (c)

            	
              Net
                sales or revenue growth; 

            

    

    

    
      	
               

            	
              (d)

            	
              Net
                operating profit; 

            

    

    

    
      	
               

            	
              (e)

            	
              Return
                measures (including, but not limited to, return on assets, capital,
                invested capital, equity, sales, or revenue);

            

    

    

    
      	
               

            	
              (f)

            	
              Cash
                flow (including, but not limited to, operating cash flow, free cash
                flow,
                cash flow return on equity, and cash flow return on investment);
                

            

    

    

    
      	
               

            	
              (g)

            	
              Earnings
                before or after taxes, interest, depreciation, and/or amortization;
                

            

    

    

    
      	
               

            	
              (h)

            	
              Gross
                or operating margins; 

            

    

    

    
      	
               

            	
              (i)

            	
              Productivity
                ratios; 

            

    

    

    
      	
               

            	
              (j)

            	
              Share
                price (including, but not limited to, growth measures and total
                shareholder return); 

            

    

    

    
      	
               

            	
              (k)

            	
              Expense
                targets; 

            

    

    

    
      	
               

            	
              (l)

            	
              Margins;
                

            

    

    

    
      	
               

            	
              (m)

            	
              Operating
                efficiency; 

            

    

    

    
      	
               

            	
              (n)

            	
              Market
                share; 

            

    

    

    
      	
               

            	
              (o)

            	
              Customer
                satisfaction; 

            

    

    

    
      	
               

            	
              (p)

            	
              Working
                capital targets; and 

            

    

    

    
      	
               

            	
               

              (q)

               

            	
               

              Economic
                value added or EVA®
                (net operating profit after tax minus the sum of capital multiplied
                by the
                cost of capital). 

               

            

    

     

    
      	
               

            	
                  

            	
              Any
                Performance Measure(s) may be used to measure the performance of
                the
                Company, Subsidiary, and/or Affiliate as a whole or any business
                unit of
                the Company, Subsidiary, and/or Affiliate or any combination thereof,
                as
                the Committee may deem appropriate, or any of the above Performance
                Measures as compared to the performance of a group of comparator
                companies, or published or special index that the Committee, in its
                sole
                discretion, deems appropriate, or the Company may select Performance
                Measure (j) above as compared to various stock market indices. The
                Committee also has the authority to provide for accelerated vesting
                of any
                Award based on the achievement of performance goals pursuant to the
                Performance Measures specified in this Article 8.
                

            

    

     

    
      	
               

            	
              8.2

            	
               

              Evaluation
                of Performance.
                The Committee may provide in any such Award that any evaluation of
                performance may include or exclude any of the following events that
                occurs
                during a Performance Period: (a) asset write-downs,
                (b) litigation or claim judgments or settlements, (c) the effect
                of changes in tax laws, accounting principles, or other laws or provisions
                affecting reported results, (d) any reorganization and restructuring
                programs, (e) extraordinary nonrecurring items as described in
                Accounting Principles Board Opinion No. 30 and/or in management’s
                discussion and analysis of financial condition and results of operations
                appearing in the Company’s annual report to shareholders for the
                applicable year, (f) acquisitions or divestitures, and
                (g) foreign exchange gains 

               

            

    

     

    B-8
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              and
                losses. To the extent such inclusions or exclusions affect Awards
                to
                Covered Employees, they shall be prescribed in a form that meets
                the
                requirements of Code Section 162(m) for deductibility. 

               

            

    

     

    
      	
               

            	
              8.3

            	
              Adjustment
                of Performance-Based Compensation.
                Awards that are intended to qualify as Performance-Based Compensation
                may
                not be adjusted upward. The Committee shall retain the discretion
                to
                adjust such Awards downward, either on a formula or discretionary
                basis or
                any combination, as the Committee determines.

            

    

     

    
      	
               

            	
              8.4

            	
              Committee
                Discretion.
                In
                the event that applicable tax and/or securities laws change to permit
                Committee discretion to alter the governing Performance Measures
                without
                obtaining shareholder approval of such changes, the Committee shall
                have
                sole discretion to make such changes without obtaining shareholder
                approval, provided the exercise of such discretion does not violate
                Code
                Section 409A. In addition, in the event that the Committee determines
                that it is advisable to grant Awards that shall not qualify as
                Performance-Based Compensation, the Committee may make such grants
                without
                satisfying the requirements of Code Section 162(m) and base vesting
                on Performance Measures other than those set forth in Section 8.1.
                

            

    

     

    Article
      9. Covered Employee Incentive Award 

     

    
      	
               

            	
              9.1

            	
              Establishment
                of Incentive Pool.
                The Committee may designate Covered Employees who are eligible to
                receive
                a monetary payment in any Plan Year based on a percentage of an incentive
                pool equal to the greater of: (i) five percent (5%) of the
                Company’s Consolidated Net Earnings before income taxes for this Plan
                Year, (ii) three percent (3%) of the Company’s Operating Cash
                Flow for this Plan Year, or (iii) eight percent (8%) of the
                Company’s Net Income for this Plan Year. The Committee shall allocate an
                incentive pool percentage to each designated Covered Employee for
                each
                Plan Year. In no event may (1) the incentive pool percentage for any
                one Covered Employee exceed fifty percent (50%) of the total pool and
                (2) the sum of the incentive pool percentages for all Covered
                Employees cannot exceed one hundred percent (100%) of the total pool.
                

            

    

     

    
      	
               

            	
              9.2

            	
              Determination
                of Covered Employees’ Portions.
                As
                soon as possible after the determination of the incentive pool for
                a Plan
                Year, the Committee shall calculate each Covered Employee’s allocated
                portion of the incentive pool based upon the percentage established
                at the
                beginning of this Plan Year. Each Covered Employee’s incentive Award then
                shall be determined by the Committee based on the Covered Employee’s
                allocated portion of the incentive pool subject to adjustment in
                the sole
                discretion of the Committee. In no event may the portion of the incentive
                pool allocated to a Covered Employee be increased in any way, including
                as
                a result of the reduction of any other Covered Employee’s allocated
                portion. The Committee shall retain the discretion to adjust such
                Awards
                downward. 

            

    

     

    
      	
               

            	
              9.3

            	
              Change
                of Control. The
                Committee shall determine the extent to which the Participant shall
                have
                the right to receive Covered Employee Annual Incentive Award following
                a
                Change of Control. Such provisions shall be determined in the sole
                discretion of the Committee, such provisions may be included in an
                agreement entered into with each Participant, but need not be uniform
                among all Covered Employee Annual Incentive Awards issued pursuant
                to the
                Plan. 

            

    

     

    Article
      10. Beneficiary Designation 

     

    Each
      Participant under this Plan may, from time to time, name any beneficiary or
      beneficiaries (who may be named contingently or successively) to whom any
      benefit under this Plan is to be paid in case of his death before he receives
      any or all of such benefit. Each such designation shall revoke all prior
      designations by the same Participant, shall be in a form prescribed by the
      Committee, and will be effective only when filed by the Participant in writing
      with the Company during the Participant’s lifetime. In the absence of any such
      beneficiary designation, benefits remaining unpaid at the Participant’s death
      shall be paid to the Participant’s executor, administrator, or legal
      representative. 

     

    B-9
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Article
      11. Rights of Participants 

     

    
      	
               

            	
              11.1

            	
              Employment.
                Nothing in this Plan or an Award Agreement shall interfere with or
                limit
                in any way the right of the Company, its Affiliates, and/or its
                Subsidiaries, to terminate any Participant’s employment at any time or for
                any reason not prohibited by law, nor confer upon any Participant
                any
                right to continue his employment for any specified period of time.
                

            

    

     

    
      	
               

            	
                  

            	
              Neither
                an Award nor any benefits arising under this Plan shall constitute
                an
                employment contract with the Company, its Affiliates, and/or its
                Subsidiaries and, accordingly, subject to Articles 3 and 12 this
                Plan and
                the benefits hereunder may be terminated at any time in the sole
                and
                exclusive discretion of the Committee without giving rise to any
                liability
                on the part of the Company, its Affiliates, and/or its Subsidiaries.
                

            

    

     

    
      	
               

            	
              11.2

            	
              Participation.
                No individual shall have the right to be selected to receive an Award
                under this Plan, or, having been so selected, to be selected to receive
                a
                future Award. 

            

    

     

    Article
      12. Amendment, Modification, Suspension, and Termination 

     

    
      	
               

            	
              12.1

            	
              Amendment,
                Modification, Suspension, and Termination.
                Subject to Section 12.3, the Committee may, at any time and from
                time to time, alter, amend, modify, suspend, or terminate this Plan
                and
                any Award Agreement in whole or in part; provided, however, that, no
                amendment of this Plan shall be made without shareholder approval
                if
                shareholder approval is required by law, regulation, or stock exchange
                rule, including, but not limited to, the Securities Exchange Act
                of 1934,
                as amended, the Internal Revenue Code of 1986, as amended, and, if
                applicable, the New York Stock Exchange Listed Company Manual/the
                Nasdaq
                issuer rules. 

            

    

     

    
      	
               

            	
              12.2

            	
              Adjustment
                of Awards Upon the Occurrence of Certain Unusual or Nonrecurring
                Events.
                The Committee may make adjustments in the terms and conditions of,
                and the
                criteria included in, Awards in recognition of unusual or nonrecurring
                events affecting the Company or the financial statements of the Company
                or
                of changes in applicable laws, regulations, or accounting principles,
                whenever the Committee determines that such adjustments are appropriate
                in
                order to prevent unintended dilution or enlargement of the benefits
                or
                potential benefits intended to be made available under this Plan.
                The
                determination of the Committee as to the foregoing adjustments, if
                any,
                shall be conclusive and binding on Participants under this Plan.
                

            

    

     

    
      	
               

            	
              12.3

            	
              Awards
                Previously Granted.
                Notwithstanding any other provision of this Plan to the contrary
                (other
                than Section 12.4), no termination, amendment, suspension, or
                modification of this Plan or an Award Agreement shall adversely affect
                in any material way any Award previously granted under this Plan,
                without the written consent of the Participant holding such Award.
                

            

    

     

    
      	
               

            	
              12.4

            	
              Amendment
                to Conform to Law.
                Notwithstanding any other provision of this Plan to the contrary,
                the
                Board of Directors may amend the Plan or an Award Agreement, to take
                effect retroactively or otherwise, as deemed necessary or advisable
                for
                the purpose of conforming the Plan or an Award Agreement to any present
                or
                future law relating to plans of this or similar nature (including,
                but not
                limited to, Code Section 409A), and to the administrative regulations
                and rulings promulgated thereunder. By accepting an Award under this
                Plan,
                a Participant agrees to any amendment made pursuant to this
                Section 12.4 to any Award granted under the Plan without further
                consideration or action. 

            

    

     

    Article
      13. Tax Withholding 

     

    The
      Company shall have the power and the right to deduct or withhold, or require
      a
      Participant to remit to the Company, the minimum statutory amount to satisfy
      federal, state, and local taxes, domestic or foreign, required by law or
      regulation to be withheld with respect to any taxable event arising as a result
      of this Plan. 

     

    B-10
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Article
      14. Successors 

     

    All
      obligations of the Company under this Plan with respect to Awards granted
      hereunder shall be binding on any successor to the Company, whether the
      existence of such successor is the result of a direct or indirect purchase,
      merger, consolidation, or otherwise, of all or substantially all of the business
      and/or assets of the Company. 

     

    Article
      15. General Provisions 

     

    
      	
               

            	
              15.1

            	
              Forfeiture
                Events.
                

            

    

     

    
      	
               

            	
              (a)

            	
              The
                Committee may specify in an Award Agreement that the Participant’s rights,
                payments, and benefits with respect to an Award shall be subject
                to
                reduction, cancellation, forfeiture, or recoupment upon the occurrence
                of
                certain specified events, in addition to any otherwise applicable
                vesting
                or performance conditions of an Award. Such events may include, but
                shall
                not be limited to, termination of employment for cause, termination
                of the
                Participant’s provision of services to the Company, Affiliate, and/or
                Subsidiary, violation of material Company, Affiliate, and/or Subsidiary
                policies, breach of noncompetition, confidentiality, or other restrictive
                covenants that may apply to the Participant, or other conduct by
                the
                Participant that is detrimental to the business or reputation of
                the
                Company, its Affiliates, and/or its Subsidiaries.
                

            

    

     

    
      	
               

            	
              (b)

            	
              If
                the Company is required to prepare an accounting restatement due
                to the
                material noncompliance of the Company, as a result of misconduct,
                with any
                financial reporting requirement under the securities laws, if the
                Participant is one of the individuals subject to automatic forfeiture
                under Section 304 of the Sarbanes-Oxley Act of 2002, the Board may
                require
                the Participant to reimburse the Company the amount of any payment
                in
                settlement of an Award earned or accrued during the twelve- (12-)
                month
                period following the first public issuance or filing with the United
                States Securities and Exchange Commission (whichever just occurred)
                of the
                financial document embodying such financial reporting requirement.
                

            

    

     

    
      	
               

            	
              15.2

            	
              Gender
                and Number.
                Except where otherwise indicated by the context, any masculine term
                used
                herein also shall include the feminine, the plural shall include
                the
                singular, and the singular shall include the plural.
                

            

    

     

    
      	
               

            	
              15.3

            	
              Severability.
                In the event any provision of this Plan shall be held illegal or
                invalid
                for any reason, the illegality or invalidity shall not affect the
                remaining parts of this Plan, and this Plan shall be construed and
                enforced as if the illegal or invalid provision had not been included.
                

            

    

     

    
      	
               

            	
              15.4

            	
              Requirements
                of Law.
                The granting of Awards under this Plan shall be subject to all applicable
                laws, rules, and regulations, and to such approvals by any governmental
                agencies or national securities exchanges as may be required.
                

            

    

     

    
      	
               

            	
              15.5

            	
              Employees
                Based Outside of the United States.
                Notwithstanding any provision of this Plan to the contrary, in order
                to
                comply with the laws in other countries in which the Company, its
                Affiliates, and/or its Subsidiaries operate or have Employees, the
                Committee, in its sole discretion, shall have the power and authority
                to:
                

            

    

     

    
      	
               

            	
              (a)

            	
              Determine
                which Affiliates and Subsidiaries shall be covered by this Plan;
                

            

    

     

    
      	
               

            	
              (b)

            	
              Determine
                which Employees outside the United States are eligible to participate
                in
                this Plan; 

            

    

     

    
      	
               

            	
              (c)

            	
              Modify
                the terms and conditions of any Award granted to Employees outside
                the
                United States to comply with applicable foreign laws;
                

            

    

     

    B-11
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              (d)

            	
              Establish
                subplans and modify exercise procedures and other terms and procedures,
                to
                the extent such actions may be necessary or advisable. Any subplans
                and
                modifications to Plan terms and procedures established under this
                Section 15.5 by the Committee shall be attached to this Plan document
                as appendices; and 

            

    

     

    
      	
               

            	
              (e)

            	
              Take
                any action, before or after an Award is made, that it deems advisable
                to
                obtain approval or comply with any necessary local government regulatory
                exemptions or approvals. 

            

    

     

    
      	
               

            	
                  

            	
              Notwithstanding
                the above, the Committee may not take any actions hereunder, and
                no Awards
                shall be granted, that would violate applicable law.
                

            

    

     

    
      	
               

            	
              15.6

            	
              Unfunded
                Plan.
                Participants shall have no right, title, or interest whatsoever in
                or to
                any investments that the Company, and/or its Subsidiaries, and/or
                its
                Affiliates may make to aid it in meeting its obligations under this
                Plan.
                Nothing contained in this Plan, and no action taken pursuant to its
                provisions, shall create or be construed to create a trust of any
                kind, or
                a fiduciary relationship between the Company and any Participant,
                beneficiary, legal representative, or any other individual. To the
                extent
                that any individual acquires a right to receive payments from the
                Company,
                its Subsidiaries, and/or its Affiliates under this Plan, such right
                shall
                be no greater than the right of an unsecured general creditor of
                the
                Company, a Subsidiary, or an Affiliate, as the case may be. All payments
                to be made hereunder shall be paid from the general funds of the
                Company,
                a Subsidiary, or an Affiliate, as the case may be and no special
                or
                separate fund shall be established and no segregation of assets shall
                be
                made to assure payment of such amounts except as expressly set forth
                in
                this Plan. 

            

    

     

    
      	
               

            	
              15.7

            	
              Retirement
                and Welfare Plans.
                Neither Awards made under this Plan nor cash paid pursuant to such
                Awards
                except pursuant to Covered Employee Annual Incentive Awards, may
                be
                included as “compensation” for purposes of computing the benefits payable
                to any Participant under the Company’s or any Subsidiary’s or Affiliate’s
                retirement plans (both qualified and non-qualified) or welfare benefit
                plans unless such other plan expressly provides that such compensation
                shall be taken into account in computing a Participant’s benefit.
                

            

    

     

    
      	
               

            	
              15.8

            	
              Deferred
                Compensation. It
                is intended that any Award made under this Plan that results in the
                deferral of compensation (as defined under Code Section 409A)
                complies with the requirements of Code Section 409A.
                

            

    

     

    
      	
               

            	
              15.9

            	
              Nonexclusivity
                of this Plan.
                The adoption of this Plan shall not be construed as creating any
                limitations on the power of the Board or Committee to adopt such
                other
                compensation arrangements as it may deem desirable for any Participant.
                

            

    

     

    
      	
               

            	
              15.10

            	
              No
                Constraint on Corporate Action.
                Nothing in this Plan shall be construed to: (i) limit, impair, or
                otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right
                or power to make adjustments, reclassifications, reorganizations,
                or
                changes of its capital or business structure, or to merge or consolidate,
                or dissolve, liquidate, sell, or transfer all or any part of its
                business
                or assets; or, (ii) limit the right or power of the Company or a
                Subsidiary or an Affiliate to take any action which such entity deems
                to
                be necessary or appropriate. 

            

    

     

    
      	
               

            	
              15.11

            	
              Governing
                Law.
                The Plan and each Award Agreement shall be governed by the laws of
                the
                State of Delaware, excluding any conflicts or choice of law rule
                or
                principle that might otherwise refer construction or interpretation
                of
                this Plan to the substantive law of another jurisdiction. Unless
                otherwise
                provided in the Award Agreement, recipients of an Award under this
                Plan
                are deemed to submit to the exclusive jurisdiction and venue of the
                federal or state courts of Delaware, to resolve any and all issues
                that
                may arise out of or relate to this Plan or any related Award Agreement.
                

            

    

     

    B-12
      

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              15.12

            	
              Indemnification.
                Subject
                to requirements of Delaware law, each individual who is or shall
                have been
                a member of the Board, or a Committee appointed by the Board, or
                an
                officer of the Company to whom authority was delegated in accordance
                with
                Article 3, shall be indemnified and held harmless by the Company
                against
                and from any loss, cost, liability, or expense that may be imposed
                upon or
                reasonably incurred by him or her in connection with or resulting
                from any
                claim, action, suit, or proceeding to which he or she may be a party
                or in
                which he or she may be involved by reason of any action taken or
                failure
                to act under this Plan and against and from any and all amounts paid
                by
                him or her in settlement thereof, with the Company’s approval, or paid by
                him or her in satisfaction of any judgment in any such action, suit,
                or
                proceeding against him or her, provided he or she shall give the
                Company
                an opportunity, at its own expense, to handle and defend the same
                before
                he or she undertakes to handle and defend it on his/her own behalf,
                unless
                such loss, cost, liability, or expense is a result of his/her own
                willful
                misconduct or except as expressly provided by statute.
                

            

    

     

    
      	
               

            	
                  

            	
              The
                foregoing right of indemnification shall not be exclusive of any
                other
                rights of indemnification to which such individuals may be entitled
                under
                the Company’s Certificate of Incorporation or Bylaws, as a matter of law,
                or otherwise, or any power that the Company may have to indemnify
                them or
                hold them harmless. 

            

    

     

    B-13

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