Document:

Unassociated Document

    TERMINATION
AGREEMENT AND RELEASE

    

    This
TERMINATION AGREEMENT AND RELEASE (this “Agreement”) dated as of June 17, 2010
(the “Effective Date”) is made and entered into by and among Hitoshi Yoshida, an
Individual residing at No. 22-23, 5 Chome, Nakano, Nakanoku, Tokyo, Japan
(“Hitoshi”) and Jieming Huang, an Individual residing at Rome 102, Bing Suite,
No. 65 Qingtanxincun, Changzhou, China 213000 (“Jieming”), Jieping Huang, an
Individual residing at Room 1201, No. 1 Building, Shijiahuating, Changzhou,
China 213000 (“Jieping”) and Linyin Wang, an Individual residing at Room 1301,
Jia Suite, No. 2 building, Yulong Park, Zhonglou District, Changzhou, China
213000 (“Linyin”). Hitoshi, Jieming, Jieping and Linyin are collectively
referred to herein as the “Parties” and each individually as a
“Party”.

    

    WHEREAS, Yoshida is the owner of 10,000
shares of common stock (the “Yoshida Shares”) of Baby Fox Limited, a British
Virgin Islands corporation (the “Company”) and Hitoshi had previously granted
Jieming, Jieping and Linyin each an option in the Yoshida Shares (Jieming,
Jieping and Linyin are hereinafter collectively referred to as the “Optionees”)
pursuant to certain Stock Option Agreements dated as of May 6,
2008;

    

    WHEREAS, the Parties have rescinded the
Stock Option Agreements pursuant to certain Rescission of Option Agreements
dated as of June 17, 2010;

     

    WHEREAS,
the Parties have entered into a Shareholders’ Agreement dated as of May 6, 2008
(the "Shareholders’ Agreement") pursuant to which, subject to the terms and
conditions stated therein, the Parties agreed to be bound by certain
restrictions with respect to the transfer of the Yang Shares; and

     

    WHEREAS,
Section 10.1 of the Shareholders’ Agreement provides that the Shareholders’
Agreement may be terminated at any time by written agreement of the parties
thereto.

     

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth in
this Agreement, the Parties, intending to be legally bound, agree as
follows:

    

    1.  Termination of Shareholders’
Agreement. The Parties agree that, effective immediately, (i) the
Shareholders’ Agreement is hereby terminated pursuant to Section 10.1 of the
Shareholders’ Agreement and that such Shareholders’ Agreement will no longer be
of any further force or effect as of the Effective Date.

    

    2.  No
Obligations.  Yoshida and the Optionees and any other party
related thereto or controlled thereby, wholly or in part, directly or
indirectly, hereby acknowledge and agree, subject to the provisions of this
Agreement, that effective at and as of the Effective Date, neither Yoshida nor
the Optionees shall have any further obligations to each other pursuant to or
arising directly or indirectly from the Shareholders’ Agreement or from any
other agreement and understanding whether written or oral relating to the
subject matter thereof; provided, however, neither Yoshida nor the Optionees are
released from any obligations which may arise under this Agreement.

    

    3.  Release.  Subject
to the provisions of this Agreement, effective at and as of the Effective Date,
Yoshida and the Optionees hereby forever release and discharge the other and
each of them, together with their respective agents, successors and assigns,
from any and all actions, causes of action, contracts, covenants (whether
express or implied), claims and demands for damages, indemnity, costs, interest,
loss or injury of every nature and kind whatsoever and howsoever (the “Actions”)
arising, whether known or unknown, suspected or unsuspected, which such Party
may heretofore have had, may now have, or may in the future have, at law or in
equity, by reason of or arising directly or indirectly from the Shareholders’
Agreement; provided, however, neither Yoshida nor the Optionees are released
from any Actions which may arise under this Agreement.

    

    4.  Amendment. This
Agreement may be amended, supplemented or modified only by a written instrument
duly executed by or on behalf of each Party hereto.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    5.  No Assignment; Binding
Effect. Neither this Agreement nor any right, interest or obligation
hereunder may be assigned by any Party hereto without the prior written consent
of the other Parties hereto and any attempt to do so will be void, except for
assignments and transfers by operation of any laws. Subject to the preceding
sentence, this Agreement is binding upon, inures to the benefit of and is
enforceable by the Parties and their respective successors and
assigns.

    

    6.  Entire Agreement.
This Agreement constitutes the entire agreement between the Parties hereto with
respect to the subject matter hereof and supersedes all prior agreements,
understandings, negotiations and discussions, whether written or
oral.  There are no conditions, covenants, agreements,
representations, warranties or other provisions, express or implied, collateral,
statutory or otherwise, relating to the subject matter hereof except as herein
provided.

    

    7.  Third Party
Beneficiaries. There are no third party beneficiaries to this Agreement
except for the Hitoshi Releasees, the Optionees Releasees.

    

    8.  Headings. The
headings used in this Agreement have been inserted for convenience of reference
only and do not define or limit the provisions hereof.

    

    9.  Invalid Provisions.
If any provision of this Agreement is held to be illegal, invalid or
unenforceable under any present or future laws, and if the rights or obligations
of any Party hereto under this Agreement will not be materially and adversely
affected thereby, (a) such provision will be fully severable, (b) this Agreement
will be construed and enforced as if such illegal, invalid or unenforceable
provision had never comprised a part hereof, and (c) the remaining provisions of
this Agreement will remain in full force and effect and will not be affected by
the illegal, invalid or unenforceable provision or by its severance herefrom.
Notwithstanding anything in this Agreement to the contrary, if for any reason
any of the releases contained in Sections 2 or 3 hereof are avoided, nullified
or otherwise rendered ineffective, then all releases in Section 2 or 3 hereof
shall be rendered invalid and unenforceable and this Agreement shall be
automatically reformed to delete Sections 2 and 3 herefrom.

    

    10.  Governing Law. This
Agreement will be governed by and construed in accordance with the laws of
Nevada.

    

    11.  Counterparts. This
Agreement may be executed in any number of counterparts (by original or
facsimile signature) and all such counterparts taken together will be deemed to
constitute one and the same instrument.

    

    

    

    [SIGNATURE
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    IN
WITNESS WHEREOF the Parties hereto have executed this Termination Agreement and
Release to be effective as of the Effective Date above.

    

    

    

    
      
        	
                Submitted
      by:

              
	 
      
	
                Hitoshi
      Yoshida

              
	
                 

                 

                

                Signature

                 

              

      

    

    

    

    
      
        	
                 

                Accepted
      by:

              
	 
      
	
                Jieming
      Huang

              
	
                 

                 

                

                Signature

                 

              

      

    

    

    
      
        	
                 

                 

                Accepted
      by:

              
	 
      
	
                Jieping
      Huang

              
	
                 

                 

                

                Signature

                 

              

      

    

    

    
      
        	
                 

                 

                Accepted
      by:

              
	 
      
	
                Linyin
      Wang

              
	
                 

                 

                

                SignatureExhibit
4.3

    

    PPGI,
INC.

    

    2010
EQUITY COMPENSATION PROGRAM

    

    1.           Purposes.  This
PPGI, Inc. 2010 Equity Compensation Program (the “Program”) is intended to
secure for PPGI, Inc. (the “Corporation”), its direct and indirect present and
future subsidiaries, including without limitation any entity which the
Corporation reasonably expects to become a subsidiary (the “Subsidiaries”), and
its shareholders, the benefits arising from ownership of the Corporation's
Common Stock, par value $.01 per share (“Common Stock”), by those selected
directors, officers, employees and consultants of the Corporation and the
Subsidiaries who are responsible for future growth.  The Program is
designed to help attract and retain superior individuals for positions of
substantial responsibility with the Corporation and the Subsidiaries and to
provide these persons with an additional incentive to contribute to the success
of the Corporation and the Subsidiaries.

    

    2.           Elements of the
Program.  In order to maintain flexibility in the award of
benefits, the Program is comprised of four parts -- the Incentive Stock Option
Plan (“Incentive Plan”), the Supplemental Stock Option Plan (“Supplemental
Plan”), the Stock Appreciation Rights Plan (“SAR Plan”) and the Restricted Stock
Award Plan (“Restricted Stock Plan”).  Copies of the Incentive Plan,
Supplemental Plan, SAR Plan and Restricted Stock Plan are attached hereto as
Parts I, II, III and IV, respectively.  Each such plan is referred to
herein as a “Plan” and all such plans are collectively referred to herein as the
“Plans.”  The grant of any options, stock appreciation rights,
restricted shares, unrestricted shares or restricted stock units under one of
the Plans (collectively, the “Awards”) shall not be construed to prohibit the
grant of options, stock appreciation rights, restricted shares, unrestricted
shares or restricted stock units under any of the other Plans.

    

    3.           Applicability of General
Provisions.  Unless any Plan specifically indicates to the
contrary, all Plans shall be subject to the general provisions of the Program
set forth below under the heading “General Provisions of the Equity Compensation
Program” (the “General Provisions”).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    GENERAL
PROVISIONS OF THE EQUITY COMPENSATION PROGRAM

    

     

    Section
1. Administration.  The
Program shall be administered by the Board of Directors of the Corporation (the
“Board” or the “Board of Directors”) or any duly created committee appointed by
the Board and charged with the administration of the Program.  To the
extent required in order to satisfy the requirements of Section 162(m) of the
Internal Revenue Code of 1986, as amended (the “Code”), such committee shall
consist solely of “Outside Directors” (as defined herein).  The Board,
or any duly appointed committee, when acting to administer the Program, is
referred to as the “Program Administrator”.  Any action of the Program
Administrator shall be taken by majority vote at a meeting or by unanimous
written consent of all members without a meeting.  No Program
Administrator or member of the Board of the Corporation shall be liable for any
action or determination made in good faith with respect to the Program or with
respect to any option, stock appreciation right, restricted stock award or
restricted stock unit award granted pursuant to the Program, and each of the
foregoing shall be entitled in all cases to indemnification and reimbursement by
the Corporation in respect of any claim, loss, damage or expense (including
without limitation reasonable attorneys’ fees) arising or resulting therefrom to
the fullest extent permitted by law and/or under any directors’ and officers’
liability insurance coverage which may be in effect from time to
time.  For purposes of the Program, the term “Outside Director” shall
mean a director who (a) is not a current employee of the Corporation or the
Subsidiaries; (b) is not a former employee of the Corporation or the
Subsidiaries who receives compensation for prior services (other than benefits
under a tax-qualified retirement plan) during the then current taxable year; (c)
has not been an officer of the Corporation or the Subsidiaries; and (d) does not
receive remuneration (which shall be deemed to include any payment in exchange
for goods or services)  from the Corporation or the Subsidiaries,
either directly or indirectly, in any capacity other than as a director, except
as otherwise permitted under Code Section 162(m) and the regulations
thereunder.

     

    Section
2. Authority of Program
Administrator.  Subject to the other provisions of this
Program, and with a view to effecting its purpose, the Program Administrator
shall have the authority:  (a) to construe and interpret the Program;
(b) to define the terms used herein; (c) to prescribe, amend and rescind rules
and regulations relating to the Program; (d) to determine the persons to whom
Awards shall be granted under the Program; (e) to determine the time or times at
which Awards shall be granted under the Program; (f) to determine the number of
shares subject to any Award; (g) to determine the exercise price of any option
or stock appreciation right, and the duration of each option or stock
appreciation right granted under the Program; (h) to determine all other terms
and conditions of any Award; and (i) to make any other determinations necessary
or advisable for the administration of the Program and to do everything
necessary or appropriate to administer the Program.  All decisions,
determinations and interpretations made by the Program Administrator shall be
binding and conclusive on all participants in the Program and on their legal
representatives, heirs and beneficiaries.

     

    Section
3. Maximum Number of Shares
Subject to the Program.  The maximum aggregate number of shares
of Common Stock issuable pursuant to the Program shall be  4,000,000
shares.  No one person participating in the Program may receive
options, separately exercisable stock appreciation rights or other awards for
more than 500,000 shares of Common Stock in any calendar year.  All
such shares may be issued under any Plan which is part of the
Program.  If any of the options (including incentive stock options) or
stock appreciation rights granted under the Program expire or terminate for any
reason before they have been exercised in full, the unissued shares subject to
those expired or terminated options and/or stock appreciation rights shall again
be available for purposes of the Program.  If the conditions
associated with the grant of any restricted shares or restricted stock units are
not satisfied within the time period required by the Award, the shares of Common
Stock associated with such Award shall again be available for purposes of the
Program.  Any shares of Common Stock delivered pursuant to the Program
may consist, in whole or in part, of authorized and unissued shares or treasury
shares.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
4. Eligibility and
Participation.  All directors, officers, employees and
consultants of the Corporation and the Subsidiaries shall be eligible to
participate in the Program.  The term "employee" shall include any
person who has agreed to become an employee and the term "consultant" shall
include any person who has agreed to become a consultant.

     

    Section
5. Effective Date and Term of
Program.  The Program shall become effective immediately upon
approval of the Program by the Board of Directors of the Corporation, subject to
approval of the Program by the shareholders of the Corporation within twelve
months after the date of approval of the Program by the Board of
Directors.  The Program shall continue in effect for a term of ten
years from the date that the Program is adopted by the Board of Directors,
unless sooner terminated by the Board of Directors of the
Corporation.

     

    Section
6. Adjustments.  In
the event that the outstanding shares of Common Stock of the Corporation are
hereafter increased, decreased, changed into or exchanged for a different number
or kind of shares or securities through merger, consolidation, combination,
exchange of shares, other reorganization, recapitalization, reclassification,
stock dividend, stock split or reverse stock split (an "Adjustment Event"), an
appropriate and proportionate adjustment shall be made by the Program
Administrator in the maximum number and kind of shares as to which Awards may be
granted under the Program.  A corresponding adjustment changing the
number or kind of shares allocated to unexercised options, stock appreciation
rights, restricted shares and restricted stock units which shall have been
granted prior to any such Adjustment Event, shall likewise be
made.  Any such adjustment in outstanding options and stock
appreciation rights shall be made without change in the aggregate purchase price
applicable to the unexercised portion of the option or stock appreciation right
but with a corresponding adjustment in the price for each share or other unit of
any security covered by the option or stock appreciation right.  In
making any adjustment pursuant to this Article 6, any fractional shares shall be
disregarded.

     

    Section
7. Termination and Amendment of
Program and Awards.  No Award shall be granted under the
Program after the termination of the Program.  The Program
Administrator may at any time amend or revise the terms of the Program or of any
outstanding Award issued under the Program, provided, however, that (a) any
shareholder approval required by applicable law or regulation shall be obtained
and (b) no amendment, suspension or termination of the Program or of any
outstanding Award shall, without the consent of the person who has received such
Award, impair any of that person's rights or obligations under such
Award.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
8. Privileges of Stock
Ownership.  Notwithstanding the exercise of any option or stock
appreciation rights granted pursuant to the terms of the Program or the
satisfaction of any condition specified in any Award of restricted shares or
restricted stock units granted pursuant to the terms of the Program, no person
shall have any of the rights or privileges of a stockholder of the Corporation
in respect of any shares of stock issuable upon the exercise of his or her
option or stock appreciation right or achievement of such condition(s) until
certificates representing the shares of Common Stock covered thereby have been
issued and delivered.  If certificates for restricted stock have been
issued, the holder of such shares shall have voting rights with respect to such
shares unless the Program Administrator provides otherwise.  No
adjustment shall be made for dividends or any other distributions for which the
record date is prior to the date on which any stock certificate is issued
pursuant to the Program.

     

    Section
9. Reservation of Shares of
Common Stock.  During the term of the Program, the Corporation
will at all times reserve and keep available such number of shares of its Common
Stock as shall be sufficient to satisfy the requirements of the
Program.

     

    Section
10. Tax
Withholding.  The exercise of any option or stock appreciation
right, and the delivery of any shares of Common Stock upon vesting or lapse of
any conditions or restrictions associated with restricted shares or restricted
stock units under the Program, is subject to the condition that, if at any time
the Corporation shall determine, in its discretion, that the satisfaction of
withholding tax or other withholding liabilities under any state or federal law
is necessary or desirable as a condition of, or in any connection with, such
exercise or the delivery or purchase of shares pursuant thereto, then, in such
event, the exercise of the option or stock appreciation right or delivery of
shares of Common Stock in connection with the vesting or lapse of any conditions
or restrictions associated with restricted shares or restricted stock units,
shall not be effective unless such withholding tax or other withholding
liabilities shall have been satisfied in a manner acceptable to the
Corporation.

     

    Section
11. Employment; Service as a
Consultant or Director.  Nothing in the Program gives to any
person any right to continued employment by the Corporation or the Subsidiaries
or to continued service as a consultant to or director of the Corporation or the
Subsidiaries or limits in any way the right of the Corporation or the
Subsidiaries at any time to terminate or alter the terms of that employment or
service.

     

    Section
12. Investment Letter;
Restrictions on Obligation of the Corporation to Issue Securities; Restrictive
Legend.  Any person acquiring or receiving Common Stock or
other securities of the Corporation pursuant to the Program, as a condition
precedent to receiving the shares of Common Stock or other securities, may be
required by the Program Administrator to submit a letter to the Corporation
stating that the shares of Common Stock or other securities are being acquired
for investment and not with a view to the distribution thereof.  The
Corporation shall not be obligated to sell or issue any shares of Common Stock
or other securities pursuant to the Program unless, on the date of sale and
issuance thereof, the shares of Common Stock or other securities are either
registered under the Securities Act of 1933, as amended, and all applicable
state securities laws, or exempt from registration thereunder.  All
shares of Common Stock and other securities issued pursuant to the Program shall
bear a restrictive legend referring to any restrictions on transferability
applicable thereto, including, if such shares are not then covered by an
effective registration statement, those imposed by federal and state securities
laws.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
13. Rights Upon Termination of
Employment, Service as a Consultant or Service as a
Director.  Notwithstanding any other provision of the Program,
any Award granted to an individual who has agreed to become an employee or a
consultant of the Corporation or any Subsidiary or to become an employee of any
entity which the Corporation reasonably expects to become a Subsidiary, shall
immediately terminate if the Program Administrator determines, in its sole
discretion, that such person will not become an employee or consultant of the
Corporation or any Subsidiary.  If a recipient ceases to be employed
by or to provide consulting services or services as a director to the
Corporation or any Subsidiary, or a corporation or a parent or subsidiary of
such corporation issuing or assuming a stock option in a transaction to which
Section 424(a) of the Code applies, for any reason other than death or
disability, then, unless any other provision of the Program provides for earlier
termination or the grant agreement provides otherwise:

     

    (a) all
options and stock appreciation rights (other than “Naked Rights”, as hereinafter
defined) shall terminate immediately in the event the recipient's employment or
consulting services are terminated for cause and shall be exercisable, to the
extent exercisable on the date of termination, for a period of:

     

    (i)           90
days after the date of such termination if such termination is due to the
recipient’s resignation; and

     

    (ii)           12
months after the date of such termination if such termination is due to the
involuntary termination of the recipient’s service or employment other than for
cause.

     

    (b) subject
to Section 5(b) of the SAR Plan, all Naked Rights not payable on the date of
termination shall terminate immediately; and

     

    (c) all
restricted share and restricted stock unit awards shall terminate immediately
unless the conditions of the Award have been satisfied.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
14. Rights Upon
Disability.  If a recipient becomes disabled within the meaning
of Section 22(e)(3) of the Code while employed by or while rendering consulting
services or services as a director to the Corporation or any Subsidiary (or a
corporation or a parent or subsidiary of such corporation issuing or assuming a
stock option in a transaction to which Section 424(a) of the Code applies),
then, unless any other provision of the Program provides for earlier termination
or the grant agreement provides otherwise:

     

    (a) all
options and stock appreciation rights (other than Naked Rights) may be
exercised, to the extent exercisable on the date of termination,, at any
time within one year after the date of termination due to
disability;

     

    (b) all Naked
Rights shall be fully paid by the Corporation as of the date of disability;
and

     

    (c) all
restricted share and restricted stock unit awards for which all conditions of
the Award have been satisfied (other than continued employment or status as a
consultant on the Vesting Date) shall be paid in full by the Corporation; all
other restricted shares and restricted stock units shall terminate
immediately.

     

    Section
15. Rights Upon
Death.  If a recipient dies while employed by or while
rendering consulting services or services as a director to the Corporation or
any Subsidiary (or a corporation or a parent or subsidiary of such corporation
issuing or assuming a stock option in a transaction to which Section 424(a) of
the Code applies), then, unless any other provision of the Program provides for
earlier termination or the grant agreement provides otherwise:

     

    (a) all
options and stock appreciation rights (other than Naked Rights) may be exercised
by the person or persons to whom the recipient's rights shall pass by will or by
the laws of descent and distribution, to the extent exercisable on the date of
death,, at any
time within one year after the date of death unless any other provision of the
Program provides for earlier termination;

     

    (b) all Naked
Rights shall be fully paid by the Corporation as of the date of death;
and

     

    (c) all
restricted share and restricted stock unit awards for which all conditions of
the Award have been satisfied (other than continued employment or status as a
consultant on the Vesting Date) shall be paid in full by the Corporation; all
other restricted shares and restricted stock units shall terminate
immediately.

     

    Section
16. Non-Transferability.  Options
and stock appreciation rights granted under the Program may not be sold,
pledged, assigned or transferred in any manner by the recipient otherwise than
by will or by the laws of descent and distribution and shall be exercisable (a)
during the recipient's lifetime only by the recipient and (b) after the
recipient's death only by the recipient's executor, administrator or personal
representative, provided, however that the Program Administrator may permit the
recipient of an option granted pursuant to Part II of the Program to transfer
options and/or stock appreciation rights granted in tandem with such options to
a family member or a trust or partnership created for the benefit of family
members.  In the case of such a transfer, the transferee's rights and
obligations with respect to the applicable options or stock appreciation rights
shall be determined by reference to the recipient and the recipient's rights and
obligations with respect to the applicable options or stock appreciation rights
had no transfer been made.  The recipient shall remain obligated
pursuant to Articles 10 and 12 hereunder if required by applicable
law.  Common Stock which represents restricted shares or restricted
stock units prior to the satisfaction of the stated conditions may not be sold,
pledged, assigned or transferred in any manner.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
17. Change in
Control..  The
Program Administrator shall have the authority to provide, either at the time
that any Award is granted or thereafter, that an option or stock appreciation
right shall become fully exercisable upon the occurrence of a Change in Control
Event or that all restrictions, performance objectives, performance objective
periods and risks of forfeiture pertaining to restricted shares and restricted
stock units shall lapse upon the occurrence of a Change in Control
Event.  As used in the Program, a "Change in Control Event" shall be
deemed to have occurred if any of the following events occur:

     

    (a) the
consummation of any consolidation or merger of the Corporation in which the
Corporation is not the continuing or surviving corporation or any consolidation
or merger in which the holders of the Corporation's Shares immediately prior to
the consolidation or merger do not own fifty percent (50%) or more of the common
stock of the surviving corporation immediately after the consolidation or
merger; or

     

    (b) the
consummation of any sale, lease, exchange or other transfer (in one transaction
or a series of related transactions) of all, or substantially all, of the assets
of the Corporation, other than to a subsidiary or affiliate; or

     

    (c) an
approval by the shareholders of the Corporation of any plan or proposal for the
liquidation or dissolution of the Corporation; or

     

    (d) (A) a
purchase by any person (as such term is defined in Section 13(d) of the Exchange
Act), corporation or other entity of any voting securities of the Corporation
(the "Voting Securities") (or securities convertible into Voting Securities) for
cash, securities or any other consideration pursuant to a tender offer or
exchange offer, unless, prior to the making of such purchase of Voting
Securities (or securities convertible into Voting Securities), the Board shall
determine that the making of such purchase shall not be deemed a Change in
Control for purposes of the Program, or (B) any action pursuant to which any
person (as such term is defined in Section 13(d) of the Exchange Act),
corporation or other entity (other than the Corporation or any benefit plan
sponsored by the Corporation or any of its subsidiaries) shall become the
"beneficial owner" (as such term is defined in Rule 13d-3 under the Exchange
Act), directly or indirectly, of Voting Securities representing fifty percent
(50%) or more of the combined voting power of the Corporation's then outstanding
Voting Securities ordinarily (and apart from any rights accruing under special
circumstances) having the right to vote in the election of directors (calculated
as provided in Rule 13d-3(d) in the case of rights to acquire any such
securities), unless, prior to such person so becoming such beneficial owner, the
Board shall determine that such person so becoming such beneficial owner shall
not be deemed to constitute a Change in Control for purposes of the Program;
or

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e) the
individuals (A) who, as of the date on which the Program is first adopted by the
Board of Directors, constitute the Board (the "Original Directors") and (B) who
thereafter are elected to the Board and whose election, or nomination for
election, to the Board was approved by a vote of at least two thirds of the
Original Directors then still in office (such Directors being called "Additional
Original Directors") and (C) who thereafter are elected to the Board and whose
election or nomination for election to the Board was approved by a vote of at
least two thirds of the Original Directors and Additional Original Directors
then still in office, cease for any reason to constitute a majority of the
members of the Board.

     

    Section
18. Merger or Asset
Sale.  For purposes of the Program, a merger or consolidation
which would constitute a Change in Control Event pursuant to Article 17 and a
sale of assets which would constitute a Change in Control Event pursuant to
Article 17 are hereinafter referred to as “Article 18
Events”.   In the event of an Article 18 Event, each outstanding
Award shall be assumed or an equivalent benefit shall be substituted by the
entity determined by the Board of Directors of the Corporation to be the
successor corporation.  However, in the event that any such successor
corporation does not agree in writing, at least 15 days prior to the anticipated
date of consummation of such Article 18 Event, to assume or so substitute each
such Award, each option and stock appreciation right not so assumed or
substituted shall be deemed to be fully vested and exercisable and the
restrictions or conditions associated with each restricted stock award and
restricted stock unit award not so assumed or substituted shall immediately
lapse or be deemed satisfied immediately prior to the Article 18 Event and the
shares of Common Stock associated with such restricted stock award or restricted
stock unit award shall be issued and delivered to the recipient of such
Award.  If an option or stock appreciation right becomes fully vested
and exercisable pursuant to the terms of this Article 18, the Program
Administrator shall notify the holder thereof in writing or electronically that
(a) such holder’s option or stock appreciation right shall be fully exercisable
until immediately prior to the consummation of such Article 18 Event and (b)
such holder’s option or stock appreciation right shall terminate upon the
consummation of such Article 18 Event.  For purposes of this Article
18, an Award shall be considered assumed if, immediately following consummation
of the applicable Article 18 Event, the Award confers the right to purchase or
receive, for each share of Common Stock subject to the Award immediately prior
to the consummation of such Article 18 Event, the consideration (whether stock,
cash or other securities or property) received in such Article 18 Event by
holders of Common Stock for each share of Common Stock held on the effective
date of such Article 18 Event (and, if holders of Common Stock are 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
such consideration received in such Article 18 Event is not solely common stock
of such successor, the Program Administrator may, with the consent of such
successor corporation, provide for the consideration to be received in
connection with such Award to be solely common stock of such successor equal in
fair market value to the per share consideration received by holders of Common
Stock in the Article 18 Event.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
19. Method of
Exercise.  Any holder of an option or stock appreciation right
may exercise his or her option or stock appreciation right from time to time by
giving written notice thereof to the Corporation at its principal office
together with payment in full for the shares of Common Stock to be
purchased.  The date of such exercise shall be the date on which the
Corporation receives such notice.  Such notice shall state the number
of shares to be purchased.  The purchase price of any shares purchased
upon the exercise of any option or stock appreciation right granted pursuant to
the Program shall be paid in full at the time of exercise of the option or stock
appreciation right by certified or bank cashier's check payable to the order of
the Corporation, by tender of shares of Common Stock which have a Fair Market
Value on the date of tender equal to the purchase price, or by a combination of
checks and shares of Common Stock; provided however that any shares of Common
Stock so tendered shall have been owned by the optionee for a period of least
six months free of any substantial risk of forfeiture or were purchased on the
open market without assistance, direct or indirect, from the
Corporation.  The Program Administrator may, subject to such rules and
procedures as the Program Administrator may prescribe, permit a holder of an
option or stock appreciation right to effect a net exercise or make “cashless
exercise” arrangements, to the extent permitted by applicable law, and may
require such holders to utilize the services of a single broker selected by the
Program Administrator in connection with any cashless exercise.  No
option or stock appreciation right may be exercised for a fraction of a share of
Common Stock.  If any portion of the purchase price is paid in shares
of Common Stock, those shares shall be valued at their then Fair Market Value as
determined by the Program Administrator in accordance with Section 4 of the
Incentive Plan.

     

    Section
20. Ten-Year
Limitations.  Notwithstanding any other provision of the
Program, (a) no Award may be granted pursuant to the Program more than ten years
after the date on which the Program was adopted by the Board of Directors and
(b) any option or stock appreciation right granted under the Program shall, by
its terms, not be exercisable more than ten years after the date of
grant.

     

    Section
21. Substitute
Options.  In the event that the Corporation, directly or
indirectly, acquires another entity, the Program Administrator may authorize the
issuance of stock options (“substitute options”) to the individuals performing
services for the acquired entity in substitution of stock options previously
granted to those individuals in connection with their performance of services
for such entity upon such terms and conditions as the Program Administrator
shall determine, taking into account the conditions of Code Section 424(a), as
from time to time amended or superseded, in the case of a substitute option that
is intended to be an incentive stock option within the meaning of Section 422 of
the Code.  Shares of Common Stock underlying substitute stock options
shall not constitute shares of Common Stock issued pursuant to the Plan for any
purpose.

     

    Section
22. Sunday or
Holiday.  In the event that the time for the performance of any
action or the giving of any notice is called for under the Program within a
period of time which ends or falls on a Sunday or legal holiday, such period
shall be deemed to end or fall on the next day following such Sunday or legal
holiday which is not a Sunday or legal holiday.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Section
23. Governing
Law.  The Program shall be governed by and construed in
accordance with the laws of the State of New Jersey.

     

    Section
24. Covenant Against
Competition.  The Program Administrator shall have the right to
condition any Award upon the recipient's execution and delivery to the
Corporation of an agreement in a form satisfactory to the Program Administrator
containing such non-compete, non-solicitation and non-disclosure terms as shall
be determined by the Program Administrator.

     

    Section
25. Termination, Rescission and
Recapture of Awards.

     

    (a) Each
Award under the Plan is intended to align the recipient’s long-term interest
with those of the Corporation.  If the recipient engages in certain
activities discussed below, either during employment or service with the
Corporation or after service with the Corporation terminates for any reason, the
recipient is acting contrary to the long-term interests of the
Corporation.  Accordingly, but only to the extent expressly provided
in an Award agreement, the Corporation may terminate any outstanding,
unexercised, unexpired or unpaid Awards (“Termination”), rescind any exercise,
payment or delivery pursuant to the Award (“Rescission”), or recapture any
Common Stock (whether restricted or unrestricted) or proceeds from the
recipient’s sale of shares of Common Stock issued pursuant to the Award
(“Recapture”), if the recipient does not comply with the conditions of
subsections (b), (c) and (e) hereof (collectively, the
“Conditions”).

     

    (b) A
recipient shall not, without the Corporation’s prior written authorization,
disclose to anyone outside the Corporation, or use in other than the
Corporation’s business, any proprietary or confidential information or material,
as those or other similar terms are used in any applicable patent,
confidentiality, inventions, secrecy, or other agreement between the recipient
and the Corporation with regard to any such proprietary or confidential
information or material.

     

    (c) Pursuant
to any agreement between the recipient and the Corporation with regard to
intellectual property (including but not limited to patents, trademarks,
copyrights, trade secrets, inventions, developments, improvements, proprietary
information, confidential business and personnel information), a recipient shall
promptly disclose and assign to the Corporation or its designee all right,
title, and interest in such intellectual property, and shall take all reasonable
steps necessary to enable the Corporation to secure all right, title and
interest in such intellectual property in the United States and in any foreign
country.

     

    (d) Upon
exercise, payment, or delivery of cash or Common Stock pursuant to an Award, the
recipient shall certify on a form acceptable to the Corporation that he or she
is in compliance with the terms and conditions of the Plan and, if a severance
of service has occurred for any reason, shall state the name and address of the
recipient’s then-current employer or any entity for which the recipient performs
business services and the recipient’s title, and shall identify any organization
or business in which the recipient owns a greater-than-five-percent equity
interest.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e) If the
Corporation determines, in its sole and absolute discretion, that (i) a
recipient has violated any of the Conditions or (ii) during his or her service
with the Corporation or its Subsidiaries, or within one (1) year after its
termination for any reason, a recipient (x) has rendered services to or
otherwise directly or indirectly engaged in or assisted, any organization or
business that, in the judgment of the Corporation in its sole and absolute
discretion, is or is working to become competitive with the Corporation; (y) has
solicited any non-administrative employee of the Corporation to terminate
employment with the Corporation; or (z) has engaged in activities which are
materially prejudicial to or in conflict with the interests of the Corporation,
including any breach of fiduciary duty or the duty of loyalty, then the
Corporation may, in its sole and absolute discretion, impose a Termination,
Rescission, and/or Recapture with respect to any or all of the recipient’s
relevant Awards, Shares, and the proceeds thereof.

     

    (f) Within
ten days after receiving notice from the Corporation of any such activity
described in Article 25(e) above, the recipient shall deliver to the Corporation
the shares of Common Stock acquired pursuant to the Award, or, if recipient has
sold the shares, the gain realized, or payment received as a result of the
rescinded exercise, payment, or delivery; provided, that if the recipient
returns shares that the recipient purchased pursuant to the exercise of an
Option (or the gains realized from the sale of such Common Stock), the
Corporation shall promptly refund the exercise price, without earnings, that the
recipient paid for such shares.  Any payment by the recipient to the
Corporation pursuant to this Article 25 shall be made either in cash or by
returning to the Corporation the number of shares that the recipient received in
connection with the rescinded exercise, payment, or delivery.  It
shall not be a basis for Termination, Rescission or Recapture if after
termination of a recipient’s service with the Corporation and its Subsidiaries,
the recipient purchases, as an investment or otherwise, stock or other
securities of such an organization or business, so long as (i) such stock or
other securities are listed upon a recognized securities exchange or traded
over-the-counter, and (ii) such investment does not represent more than a five
percent (5%) equity interest in the organization or business.

     

    (g) Notwithstanding
the foregoing provisions of this Article 25, the Corporation has sole and
absolute discretion not to require Termination, Rescission and/or Recapture, and
its determination not to require Termination, Rescission and/or Recapture with
respect to any particular act by a particular recipient or Award shall not in
any way reduce or eliminate the Corporation’s authority to require Termination,
Rescission and/or Recapture with respect to any other act or recipient or
Award.  Nothing in this Section shall be construed to impose
obligations on the recipient to refrain from engaging in lawful competition with
the Corporation after the termination of employment that does not violate
subsections (b) or (c) of this Article, other than any obligations that are part
of any separate agreement between the Corporation and the recipient or that
arise under applicable law.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (h) All
administrative and discretionary authority given to the Corporation under this
Article shall be exercised by the most senior human resources executive of the
Corporation or such other person or committee (including without limitation
the  Program Administrator) as the  Program Administrator
may designate from time to time.

     

    (i) Notwithstanding
any provision of this Article, if any provision of this Article is
determined to be unenforceable or invalid under any applicable law, such
provision will be applied to the maximum extent permitted by applicable law, and
shall automatically be deemed amended in a manner consistent with its objectives
to the extent necessary to conform to any limitations required under applicable
law.  Furthermore, if any provision of this Article is illegal under
any applicable law, such provision shall be null and void to the extent
necessary to comply with applicable law.

     

     

    Notwithstanding
the foregoing, but subject to any contrary terms set forth in any Award
agreement, this Article shall not be applicable) to any recipient from and after
his or her termination of service with the Corporation and its Subsidiaries
after a Change in Control Event.

     

    Section
26. Recoupment of
Awards.  Unless otherwise specifically provided in an Award
agreement, and to the extent permitted by applicable law, the  Program
Administrator may in its sole and absolute discretion, without obtaining the
approval or consent of the Corporation’s shareholders or any recipient with
respect to his or her outstanding Awards, require that each recipient agree to
reimburse the Corporation for all or any portion of any Awards granted under
this Plan (“Reimbursement”), or the  Program Administrator may require
the Termination or Rescission of, or the Recapture associated with, any Award,
if –

     

    (a) the
granting, vesting, or payment of such Award (or portion thereof) was predicated
upon the achievement of certain financial results or other performance
criteria;

     

    (b) in
the  Program Administrator’s view the recipient either benefited from
a calculation that later proves to be materially inaccurate, or engaged in one
or more material acts of fraud or misconduct that caused or partially caused the
need for a financial restatement by the Corporation or any material Subsidiary;
and

     

    (c) a lower
granting, vesting, or payment of such Award would have occurred based upon the
conduct described in clause (b) of this Article.

     

    In each
instance, the  Program Administrator will, to the extent practicable
and allowable under applicable laws, require Reimbursement, Termination or
Rescission of, or Recapture relating to, any such Award granted to a recipient,
including reimbursement for any gains realized on the exercise of Options or
SARs attributable to such Awards, plus a reasonable rate of interest, effecting
the cancellation of restricted shares, restricted stock units, unrestricted
shares, and outstanding Options and SARs; provided that the Corporation will not
seek Reimbursement, Termination or Rescission of, or Recapture relating to, any
such Awards that were paid or vested more than three years prior to the date the
applicable restatement is disclosed.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    PART
I

    

    INCENTIVE
STOCK OPTION PLAN

    

    The following provisions shall apply
with respect to options granted by the Program Administrator pursuant to Part I
of the Program:

     

    General.  This
Incentive Stock Option Plan ("Incentive Plan") is Part I of the Corporation's
Program.  The Corporation intends that options granted pursuant to the
provisions of the Incentive Plan will qualify and will be identified as
"incentive stock options" within the meaning of Section 422 of the
Code.  Unless any provision herein indicates to the contrary, this
Incentive Plan shall be subject to the General Provisions of the
Program.

     

    Terms and
Conditions.  The Program Administrator may grant incentive
stock options to purchase Common Stock to any employee of the Corporation or its
Subsidiaries.  The terms and conditions of options granted under the
Incentive Plan may differ from one another as the Program Administrator shall,
in its discretion, determine, as long as all options granted under the Incentive
Plan satisfy the requirements of the Incentive Plan.

     

    Duration of
Options.  Each option and all rights thereunder granted
pursuant to the terms of the Incentive Plan shall expire on the date determined
by the Program Administrator, but in no event shall any option granted under the
Incentive Plan expire later than ten years from the date on which the option is
granted.  Notwithstanding the foregoing, any option granted under the
Incentive Plan to any person who owns more than 10% of the combined voting power
of all classes of stock of the Corporation or any Subsidiary shall expire no
later than five years from the date on which the option is granted.

     

    Purchase
Price.  The option price with respect to any option granted
pursuant to the Incentive Plan shall not be less than the Fair Market Value of
the shares on the date of the grant of the option; except that the option price
with respect to any option granted pursuant to the Incentive Plan to any person
who owns more than 10% of the combined voting power of all classes of stock of
the Corporation shall not be less than 110% of the Fair Market Value of the
shares on the date the option is granted.  For purposes of the
Program, the phrase  “Fair Market Value” shall mean on the date of
grant or other relevant date:  (i) the closing price of a share of
Common Stock as reported on the principal nationally recognized stock exchange
on which shares of Common Stock are traded on such date, or if no prices are
reported with respect to such shares on such date, the closing price of a share
of Common Stock on the last preceding date on which there were reported prices
of such shares; or (ii) if shares of Common Stock are not listed or admitted to
unlisted trading privileges on a nationally recognized stock exchange, but are
traded on the OTC Bulletin Board, the closing sale price of the Common Stock for
such date (or the closing bid price for that date or the nearest preceding date
if no sale price is available on that date) on the OTC Bulletin Board, or (iii)
if neither (i) nor (ii) apply and the Common Stock is reported in the “Pink
Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per
share of the Common Stock so reported on such date (or the nearest preceding
date); or (iv) if none of (i), (ii) or (iii) apply, the Fair Market Value of a
share the Common Stock will be determined in good faith by the Program
Administrator acting in its discretion using the reasonable application of a
reasonable valuation method based on the facts and circumstances existing on the
valuation date, which determination will be conclusive.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Maximum Amount of Options in
Any Calendar Year.  The aggregate Fair Market Value (determined
as of the time the option is granted) of the Common Stock with respect to which
incentive stock options are exercisable for the first time by any employee
during any calendar year (under the terms of the Incentive Plan and all
incentive stock option plans of the Corporation and the Subsidiaries) shall not
exceed $100,000.

     

    Exercise of
Options.  Unless otherwise provided by the Program
Administrator at the time of grant or unless the installment provisions set
forth herein are subsequently accelerated pursuant to the General Provisions of
the Program or otherwise by the Program Administrator with respect to any one or
more previously granted options, incentive stock options may only be exercised
to the following extent during the following periods of time:

     

    
      
        	 
      	 	 	 
	 
      	 	
                Maximum
      Percentage of

              	 
	 
      	 	
                Shares
      Covered by

              	 
	 
      	 	
                Option
      Which May be

              	 
	
                During

              	
              	
                Purchased

              	
              
	 
      	 	 	 
	
                First
      12 months after grant

              	 	 	
                0            
      

              	 
	 
      	 	 	 	 
	
                First
      24 months after grant

              	 	 	
                33-1/3%

              	 
	 
      	 	 	 	 
	
                First
      36 months after grant

              	 	 	
                66-2/3%

              	 
	 
      	 	 	 	 
	
                Beyond
      36 months after grant

              	 	 	
                100%      
      

              	 

      

    

     

     

    Failure to Satisfy
Applicable Requirements.  In the event that an option is
intended to be granted pursuant to the provisions of this Incentive Plan but
fails to satisfy one or more requirements of this Incentive Plan, such option
shall be deemed to have been granted pursuant to the Supplemental Plan set forth
as Part II of the Program, provided that such option satisfies the requirements
of the Supplemental Plan.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    PART
II

    

    SUPPLEMENTAL
STOCK OPTION PLAN

    

    The following provisions shall apply
with respect to options granted by the Program Administrator pursuant to Part II
of the Program:

     

    General.  This
Supplemental Stock Option Plan ("Supplemental Plan") is Part II of the
Corporation's Program.  Any option granted pursuant to this
Supplemental Plan shall not be an incentive stock option as defined in Section
422 of the Code.  Unless any provision herein indicates to the
contrary, this Supplemental Plan shall be subject to the General Provisions of
the Program.

     

     

    Terms and
Conditions.  The Program Administrator may grant supplemental
stock options to any person eligible under Article 4 of the General
Provisions.  The terms and conditions of options granted under this
Supplemental Plan may differ from one another as the Program Administrator
shall, in its discretion, determine as long as all options granted under this
Supplemental Plan satisfy the requirements of this Supplemental
Plan.

     

     

    Duration of
Options.  Each option and all rights thereunder granted
pursuant to the terms of this Supplemental Plan shall expire on the date
determined by the Program Administrator, but in no event shall any option
granted under this Supplemental Plan expire later than ten years from the date
on which the option is granted.

     

     

    Purchase
Price.  The option price with respect to any option granted
pursuant to this Supplemental Plan shall be determined by the Program
Administrator at the time of grant.

     

     

    Exercise of
Options.  Unless otherwise provided by the Program
Administrator at the time of grant or unless the installment provisions set
forth herein are subsequently accelerated pursuant to the General Provisions of
the Program or otherwise by the Program Administrator with respect to any one or
more previously granted options, supplemental stock options may only be
exercised to the following extent during the following periods of
time:

    
       

      
        
          	 
      	 	 	 
	 
      	 	
                  Maximum
      Percentage of

                	 
	 
      	 	
                  Shares
      Covered by

                	 
	 
      	 	
                  Option
      Which May be

                	 
	
                  During

                	
                	
                  Purchased

                	
                
	 
      	 	 	 
	
                  First
      12 months after grant

                	 	 	
                  0            
      

                	 
	 
      	 	 	 	 
	
                  First
      24 months after grant

                	 	 	
                  33-1/3%

                	 
	 
      	 	 	 	 
	
                  First
      36 months after grant

                	 	 	
                  66-2/3%

                	 
	 
      	 	 	 	 
	
                  Beyond
      36 months after grant

                	 	 	
                  100%      
      

                	 

        

      

       

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    PART
III

    

    STOCK
APPRECIATION RIGHTS PLAN

    

    

    The
following provisions shall apply with respect to stock appreciation rights
granted by the Program Administrator pursuant to Part III of the
Program:

     

    General.  This
Stock Appreciation Rights Plan ("SAR Plan") is Part III of the Corporation's
Program.

     

    Terms and
Conditions.  The Program Administrator may grant stock
appreciation rights to any person eligible under Article 4 of the General
Provisions.  Stock appreciation rights may be granted either in tandem
with supplemental stock options or incentive stock options as described in
Section 4 of this SAR Plan or as naked stock appreciation rights as described in
Section 5 of this SAR Plan.

     

    Mode of
Payment.  At the discretion of the Program Administrator,
payments to recipients upon exercise of stock appreciation rights may be made in
(a) cash or by the Corporation’s check, (b) shares of Common Stock having a Fair
Market Value (determined in the manner provided in Section 4 of the Incentive
Plan) equal to the amount of the payment, (c) a note in the amount of the
payment containing such terms as are approved by the Program Administrator or
(d) any combination of the foregoing in an aggregate amount equal to the amount
of the payment.

     

    Stock Appreciation Right in
Tandem with Supplemental or Incentive Stock Option.  A SAR
granted in tandem with a supplemental stock option or an incentive stock option
(in either case, an "Option") shall be on the following terms and
conditions:

    

    Each SAR
shall relate to a specific Option or portion of an Option granted under the
Supplemental Plan or Incentive Plan, as the case may be, and may be granted by
the Program Administrator at the same time that the Option is granted or at any
time thereafter prior to the last day on which the Option may be
exercised.

     

    (d) A SAR
shall entitle a recipient, upon surrender of the unexpired related Option, or a
portion thereof, to receive from the Corporation an amount equal to the excess
of (i) the Fair Market Value (determined in accordance with Section 4 of the
Incentive Plan) of the shares of Common Stock which the recipient would have
been entitled to purchase on that date pursuant to the portion of the Option
surrendered over (ii) the amount which the recipient would have been required to
pay to purchase such shares upon exercise of such Option.

     

    (e) A SAR
shall be exercisable only for the same number of shares of Common Stock, and
only at the same times, as the Option to which it relates.  SARs shall
be subject to such other terms and conditions as the Program Administrator may
specify.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (f) A SAR
shall lapse at such time as the related Option is exercised or lapses pursuant
to the terms of the Program.  On exercise of the SAR, the related
Option shall lapse as to the number of shares exercised.

     

     

    Naked Stock Appreciation
Right.  SARs granted by the Program Administrator as naked
stock appreciation rights ("Naked Rights") shall be subject to the following
terms and conditions:

     

    The
Program Administrator may award Naked Rights to recipients for periods not
exceeding ten years.  Each Naked Right shall represent the right to
receive the excess of the Fair Market Value of one share of Common Stock
(determined in accordance with Section 4 of the Incentive Plan) on the date of
exercise of the Naked Right over the Fair Market Value of one share of Common
Stock (determined in accordance with Section 4 of the Incentive Plan) on the
date the Naked Right was awarded to the recipient.

     

    (g) Unless
otherwise provided by the Program Administrator at the time of award or unless
the installment provisions set forth herein are subsequently accelerated
pursuant to the General Provisions of the Program or otherwise by the Program
Administrator with respect to any one or more previously granted Naked Rights,
Naked Rights may only be exercised to the following extent during the following
periods of employment or service as a consultant or director:

     

    
       

      
        
          	 
      	 	 	 
	 
      	 	
                  Maximum
      Percentage 

                	 
	 
      	 	
                  of
      Naked Rights Which

                	 
	
                  During

                	
                	
                  May
      Be Exercised

                	
                
	 
      	 	 	 
	
                  First
      12 months after award

                	 	 	
                  0            
      

                	 
	 
      	 	 	 	 
	
                  First
      24 months after award

                	 	 	
                  33-1/3%

                	 
	 
      	 	 	 	 
	
                  First
      36 months after award

                	 	 	
                  66-2/3%

                	 
	 
      	 	 	 	 
	
                  Beyond
      36 months after award

                	 	 	
                  100%      
      

                	 

        

      

       

    

    (h) The Naked
Rights solely measure and determine the amounts to be paid to recipients upon
exercise as provided in Section 5(a).  Naked Rights do not represent
Common Stock or any right to receive Common Stock.  The Corporation
shall not hold in trust or otherwise segregate amounts which may become payable
to recipients of Naked Rights; such funds shall be part of the general funds of
the Corporation.  Naked Rights shall constitute an unfunded contingent
promise to make future payments to the recipient.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    PART
IV

    

    RESTRICTED
STOCK AWARD PLAN

    

    The
following provisions shall apply with respect to restricted shares and
restricted stock units granted by the Program Administrator pursuant to Part IV
of the Program:

     

    General.  This
Restricted Stock Award Plan (“Restricted Stock Plan”) is Part IV of the
Corporation’s Program.  Unless any provision herein indicates to the
contrary, this Restricted Stock Plan shall be subject to the General Provisions
of the Program.

     

    Terms and
Conditions.  The Program Administrator may in its sole
discretion grant restricted shares of Common Stock to any person eligible under
Article 4 of the General Provisions and shall evidence such grant in an Award
agreement that is delivered to the recipient and that sets forth the number of
restricted shares of Common Stock, the purchase price for such restricted shares
(if any), and the terms upon which the restricted shares may become
vested.  In addition, the Corporation may in its discretion grant to any
person eligible under Article 4 of the General Provisions the right to receive
shares of Common Stock after certain vesting requirements are met (“restricted
stock units”), and shall evidence such grant in an Award agreement that is
delivered to the recipient which sets forth the number of shares of Common Stock
(or formula, that may be based on future performance or conditions, for
determining the number of shares of Common Stock) that the recipient shall be
entitled to receive upon vesting and the terms upon which the shares subject to
a restricted stock unit may become vested.  The Program Administrator may
condition any Award of restricted shares or restricted stock units upon
receiving from the recipient such further assurances and documents as the
Program Administrator may require to enforce the restrictions.  In
addition, the Program Administrator may grant Awards hereunder in the form of
unrestricted shares of Common Stock; that is, shares of Common Stock without
conditions and conveying immediate ownership to the holder upon the date of
grant or such other date as the  Program Administrator may
determine.

     

    Vesting and
Forfeiture.  The Program Administrator shall set forth in an Award
agreement granting restricted shares or restricted stock units, the terms and
conditions under which the recipient’s interest in the restricted shares or the
shares subject to restricted stock units will become vested and non-forfeitable,
which conditions may be based on the recipient’s continued employment or
services to the Corporation and its Subsidiaries and/or the achievement of such
specified performance objectives as the program Administrator may
establish.

     

    Issuance of Shares upon
Vesting.  As
soon as practicable after vesting of a holder’s restricted shares (or right to
receive shares of Common Stock underlying restricted stock units) and the
recipient’s satisfaction of applicable tax withholding requirements, the
Corporation shall release to the recipient, free from the vesting restrictions,
one share of Common Stock for each vested restricted share (or issue one share
of Common Stock free of the vesting restriction for each vested restricted stock
unit), unless an Award agreement provides otherwise.  No fractional shares
shall be distributed, and cash shall be paid in lieu thereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Dividends Payable on
Vesting. Unless otherwise
provided in an Award agreement, whenever shares of Common Stock are released to
an individual as a result of the vesting of restricted shares, such individual
shall also be entitled to receive (unless otherwise provided in the Award
agreement), with respect to each share of Common Stock released or issued a
number of shares of Common Stock equal to (i) any stock dividends, which were
declared and paid to the holders of shares of Common Stock between the date of
the Award and the date such share of Common Stock is released from the vesting
restrictions, and (ii) in the discretion of the Program Administrator, (x) a
number of shares of Common Stock equal to the shares of Common Stock that the
individual could have purchased at Fair Market Value on the payment date of any
cash dividends for shares of Common Stock if the individual had received such
cash dividends with respect to each restricted share between the date of the
Award and lapse of the restrictions of such restricted share, and/or (y) a cash
amount equal to the cumulative amount of such cash dividends.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]