Document:

ex10_27.htm

    
      

    

    EXHIBIT
      10.27

    

    

    SYMYX
      TECHNOLOGIES, INC. 2007 STOCK INCENTIVE  PLAN

    

    NOTICE
      OF RESTRICTED STOCK UNIT AWARD

    

    
      	
              Grantee’s
                Name:

            	
               

            

    

    

                You
      (the “Grantee”) have been granted an award of Restricted Stock Units (the
“Award”), subject to the terms and conditions of this Notice of Restricted Stock
      Unit Award (the “Notice”), the Symyx Technologies, Inc. 2007 Stock Incentive
      Plan, as amended from time to time (the “Plan”) and the Restricted Stock Unit
      Agreement (the “Agreement”) attached hereto, as follows.  Unless otherwise
      defined herein, the terms defined in the Plan shall have the same defined
      meanings in this Notice.

    

    
      	
              Award
                Number

            	
               

            
	
               

            	
               

            
	
              Date
                of Award

            	
               

            
	
               

            	
               

            
	
              Total
                Number of Restricted Stock

            	
               

            
	
              Units
                Awarded (the “Units”)

            	
               

            

    

    

    Vesting
      Schedule:

    

    Subject
      to the Grantee’s continued status as an Employee, Director or Consultant (a
“Service Provider”) and other limitations set forth in this Notice, the
      Agreement and the Plan, the Units will “vest” in accordance with the following
      schedule:

    

    [to
      be determined]

    

    In
      the
      event of the Grantee’s change in status from Employee, Director or Consultant to
      any other status of Employee, Director or Consultant, the Award shall remain
      in
      effect and the Units shall continue to vest in accordance with the Vesting
      Schedule.

    

    During
      any authorized leave of absence, the vesting of the Units as provided in this
      schedule shall be suspended (to the extent permitted under Section 409A of
      the Code) after the leave of absence exceeds a period of three (3) months. 
The Vesting Schedule of the Units shall be extended by the length of the
      suspension.  Vesting of the Units shall resume upon the Grantee’s
      termination of the leave of absence and return to service to the Company or
      a
      Related Entity; provided, however, that if the leave of absence exceeds six
      (6)
      months, and a return to service upon expiration of such leave is not guaranteed
      by statute or contract, then (a) the Grantee’s status as a Service Provider
      shall be deemed to terminate on the first date following such six-month period
      and (b) the Grantee will forfeit the Units that are unvested on the date
      the Grantee ceases to be Service Provider.  An authorized leave of absence
      shall include sick leave, military leave, or other bona fide leave of absence
      (such as temporary employment by the government).

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    For
      purposes of this Notice and the Agreement, the term “vest” shall mean, with
      respect to any Units, that such Units are no longer subject to forfeiture to
      the
      Company.  If the Grantee would become vested in a fraction of a Unit, such
      Unit shall not vest until the Grantee becomes vested in the entire Unit. 
Notwithstanding the foregoing, the Units subject to this Notice will be subject
      to the provisions of Section 4 of the Agreement relating to the release of
      forfeiture provisions in the event of a Change in Control (as defined in the
      Agreement).

    

    Vesting
      shall cease upon the date the Grantee ceases to be a Service Provider for any
      reason, including Disability.  Except as provided below, in the event the
      Grantee ceases to be a Service Provider for any reason, including Disability,
      any Units held by the Grantee immediately following such termination of the
      Grantee’s status as a Service Provider shall be deemed reconveyed to the Company
      and the Company shall thereafter be the legal and beneficial owner of the Units
      and shall have all rights and interest in or related thereto without further
      action by the Grantee.  In the event the Grantee ceases to be a Service
      Provider on account of death, the Grantee shall become vested as of the date
      of
      death in the number of Units determined as follows:

    

    [to
      be determined]

    

    IN
      WITNESS WHEREOF, the Company and the Grantee have executed this Notice and
      agree
      that the Award is to be governed by the terms and conditions of this Notice,
      the
      Plan, and the Agreement.

    

     

    
      	 	Symyx
              Technologies, Inc.,  
	a
              Delaware corporation	 	 	 
	
               

            	 	
              By:

            	
               

            
	 	 	 	 
	 	 	
              Title:

            	 

    

    

     

    THE
      GRANTEE ACKNOWLEDGES AND AGREES THAT THE UNITS SHALL VEST, IF AT ALL, ONLY
      WHILE
      THE GRANTEE IS A SERVICE PROVIDER (NOT THROUGH THE ACT OF BEING HIRED, BEING
      GRANTED THIS AWARD OR ACQUIRING SHARES HEREUNDER).  THE GRANTEE FURTHER
      ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE AGREEMENT, NOR IN
      THE
      PLAN, SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO CONTINUATION
      OF
      THE GRANTEE’S STATUS AS A SERVICE PROVIDER, NOR SHALL IT INTERFERE IN ANY WAY
      WITH THE GRANTEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE THE GRANTEE’S
      STATUS AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE, AND WITH OR
      WITHOUT NOTICE.  THE GRANTEE ACKNOWLEDGES THAT UNLESS THE GRANTEE HAS A
      WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE CONTRARY, THE GRANTEE’S
      STATUS IS AT WILL.

    

    The
      Grantee acknowledges receipt of a copy of the Plan and the Agreement and
      represents that he or she is familiar with the terms and provisions thereof,
      and
      hereby accepts the Award subject to all of the terms and provisions hereof
      and
      thereof.  The Grantee has reviewed this Notice, the Agreement and the Plan
      in their entirety, has had an opportunity to obtain the advice of counsel prior
      to executing this Notice and fully understands all provisions of this Notice,
      the Agreement and the Plan.  The Grantee hereby agrees that all questions
      of interpretation and administration relating to this Notice, the Plan and
      the
      Agreement shall be resolved by the Administrator in accordance with
      Section 9 of the Agreement.  The Grantee further agrees to the venue
      selection in accordance with Section 10 of the Agreement.  The Grantee
      further agrees to notify the Company upon any change in the residence address
      indicated in this Notice.

    

    

    
      	
              Dated:

            	
               

            	
               

            	
              Signed:

            	
               

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Award
      Number:    

     

    

    SYMYX
      TECHNOLOGIES, INC. 2007 STOCK INCENTIVE PLAN

    

    RESTRICTED
      STOCK UNIT AGREEMENT

    

    1.           
      Issuance of Units.  Symyx Technologies, Inc., a Delaware corporation
      (the “Company”), hereby issues to the Grantee (the “Grantee”) named in the
      Notice of Restricted Stock Unit Award (the “Notice”) an award (the “Award”) of
      the Total Number of Restricted Stock Units Awarded set forth in the Notice
      (the
“Units”), subject to the Notice, this Restricted Stock Unit Agreement (the
“Agreement”) and the terms and provisions of the Company’s 2007 Stock Incentive
      Plan, as amended from time to time (the “Plan”), which is incorporated herein by
      reference.  Unless otherwise defined herein, the terms defined in the Plan
      shall have the same defined meanings in this Agreement.

    

    2.           Transfer
      Restrictions.  The Units may not be transferred in any manner other
      than by will or by the laws of descent and distribution.

    

    3.           Conversion
      of Units and Issuance of Shares.

    

    (a)           General. 
      Subject to Section 3(b), upon the vesting of a Unit, one share of Common
      Stock shall be issuable for each Unit that vests on a particular date (the
      “Shares”), subject to the terms and provisions of the Plan and this
      Agreement.  Thereafter, the Company will transfer such Shares to the
      Grantee upon satisfaction of any required tax or other withholding
      obligations.  Any fractional Unit remaining after the Award is fully vested
      shall be discarded and shall not be converted into a fractional
      Share.

    

    (b)           Delay
      of Conversion.  The conversion of the Units to Common Stock upon the
      vesting of a Unit shall be delayed in the event the Company reasonably
      anticipates that the issuance of Common Stock would constitute a violation
      of
      federal securities laws or other applicable law.  If the conversion of the
      Units to Common Stock is delayed by the provisions of this Section 3(b),
      the conversion of the Units to Common Stock shall occur at the earliest date
      at
      which the Company reasonably anticipates issuing the Common Stock will not
      cause
      a violation of federal securities laws or other applicable law.  For
      purposes of this Section 3(b), the issuance of Common Stock that would
      cause inclusion in gross income or the application of any penalty provision
      or
      other provision of the Code is not considered a violation of applicable
      law.

    

    (c)           Delay
      of Issuance of Shares.  The Company shall have the authority to delay
      the issuance of any shares of Common Stock under this Section 3 to the
      extent it deems necessary or appropriate to comply with Section 409A of the
      Code
      (relating to payments made to certain “key employees” of certain publicly-traded
      companies); in such event, any shares of Common Stock to which the Grantee
      would
      otherwise be entitled during the six (6) month period following the date the
      Grantee ceases to be a Service Provider will be issued on the first business
      day
      following the expiration of such six (6) month period.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    4.           Change
      in Control.

    

    (a)           Notwithstanding
      Section 11 of the Plan, in the event of a Change in Control, the Award
      shall automatically become fully vested with respect to all of the Units at
      the
      time represented by the Award, immediately prior to the specified effective
      date
      of such Change in Control, provided that the Grantee has not ceased to be a
      Service Provider prior to such date.  Effective upon the consummation of a
      Change in Control, the Award shall terminate. 

    

    (b)           “Change
      in Control” means the occurrence of any change in ownership of the Company,
      change in effective control of the Company, or change in the ownership of a
      substantial portion of the assets of the Company, applied in a manner consistent
      with those terms as defined in Code Section 409A, the regulations thereunder,
      and any other published interpretive authority, as issued or amended from time
      to time.

    

    5.           Right
      to Shares.  The Grantee shall not have any right in, to or with respect
      to any of the Shares (including any voting rights or rights with respect to
      dividends paid on the Common Stock) issuable under the Award until the Award
      is
      settled by the issuance of such Shares to the Grantee.

    

    6.           Taxes.

    

    (a)           Tax
      Liability.  The Grantee is ultimately liable and responsible for all
      taxes owed by the Grantee in connection with the Award, regardless of any action
      the Company or any Parent or Subsidiary of the Company takes with respect to
      any
      tax withholding obligations that arise in connection with the Award. 
Neither the Company nor any Parent or Subsidiary of the Company makes any
      representation or undertaking regarding the treatment of any tax withholding
      in
      connection with the grant or vesting of the Award or the subsequent sale of
      Shares subject to the Award.  The Company does not commit and is under no
      obligation to structure the Award to reduce or eliminate the Grantee’s tax
      liability.

    

    (b)           Payment
      of Withholding Taxes.  Prior to any event in connection with the Award
      (e.g., vesting) that the Company determines may result in any tax withholding
      obligation, whether United States federal, state, local or non-U.S., including
      any employment tax obligation (the “Tax Withholding Obligation”), the Grantee
      must arrange for the satisfaction of the minimum amount of such Tax Withholding
      Obligation in a manner acceptable to the Company.

    

    (i)           By
      Share Withholding.  The Grantee authorizes the Company to, upon the
      exercise of its sole discretion, withhold from those Shares issuable to the
      Grantee the whole number of Shares sufficient to satisfy the minimum applicable
      Tax Withholding Obligation.  The Grantee acknowledges that the withheld
      Shares may not be sufficient to satisfy the Grantee’s minimum Tax Withholding
      Obligation.  Accordingly, the Grantee agrees to pay to the Company or any
      Parent or Subsidiary of the Company as soon as practicable, including through
      additional payroll withholding, any amount of the Tax Withholding Obligation
      that is not satisfied by the withholding of Shares described above.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      (ii)    By
        Sale
        of Shares. Unless the Grantee determines to satisfy the Tax Withholding
        Obligation by some other means in accordance with clause (iii) below, the
        Grantee’s acceptance of this Award constitutes the Grantee’s instruction and
        authorization to the Company and any brokerage firm determined acceptable
        to the
        Company for such purpose to sell on the Grantee’s behalf a whole number of
        Shares from those Shares issuable to the Grantee as the Company determines
        to be
        appropriate to generate cash proceeds sufficient to satisfy the minimum
        applicable Tax Withholding Obligation. Such Shares will be sold on the day
        such
        Tax Withholding Obligation arises (e.g., a vesting date) or as soon thereafter
        as practicable. The Grantee will be responsible for all broker’s fees and other
        costs of sale, and the Grantee agrees to indemnify and hold the Company harmless
        from any losses, costs, damages, or expenses relating to any such sale. To
        the
        extent the proceeds of such sale exceed the Grantee’s minimum Tax Withholding
        Obligation, the Company agrees to pay such excess in cash to the Grantee.
        The
        Grantee acknowledges that the Company or its designee is under no obligation
        to
        arrange for such sale at any particular price, and that the proceeds of any
        such
        sale may not be sufficient to satisfy the Grantee’s minimum Tax Withholding
        Obligation. Accordingly, the Grantee agrees to pay to the Company or any
        Parent
        or Subsidiary of the Company as soon as practicable, including through
        additional payroll withholding, any amount of the Tax Withholding Obligation
        that is not satisfied by the sale of Shares described above.

       

    

    (iii)           By
      Check, Wire Transfer or Other Means. At any time not less than five (5)
      business days (or such fewer number of business days as determined by the
      Administrator) before any Tax Withholding Obligation arises (e.g., a vesting
      date), the Grantee may elect to satisfy the Grantee’s Tax Withholding Obligation
      by delivering to the Company an amount that the Company determines is sufficient
      to satisfy the Tax Withholding Obligation by (x) wire transfer to such
      account as the Company may direct, (y) delivery of a certified check
      payable to the Company, or (z) such other means as specified from time to
      time by the Administrator.

    

    7.           Entire
      Agreement: Governing Law.  The Notice, the Plan and this Agreement
      constitute the entire agreement of the parties with respect to the subject
      matter hereof and supersede in their entirety all prior undertakings and
      agreements of the Company and the Grantee with respect to the subject matter
      hereof, and may not be modified adversely to the Grantee’s interest except by
      means of a writing signed by the Company and the Grantee.  These agreements
      are to be construed in accordance with and governed by the internal laws of
      the
      State of California without giving effect to any choice of law rule that would
      cause the application of the laws of any jurisdiction other than the internal
      laws of the State of California to the rights and duties of the parties. 
Should any provision of the Notice or this Agreement be determined to be illegal
      or unenforceable, the other provisions shall nevertheless remain effective
      and
      shall remain enforceable.

    

    8.           
      Construction.  The captions used in the Notice and this Agreement are
      inserted for convenience and shall not be deemed a part of the Award for
      construction or interpretation.  Except when otherwise indicated by the
      context, the singular shall include the plural and the plural shall include
      the
      singular.  Use of the term “or” is not intended to be exclusive, unless the
      context clearly requires otherwise.

    

    9.           Administration
      and Interpretation.  Any question or dispute regarding the
      administration or interpretation of the Notice, the Plan or this Agreement
      shall
      be submitted by the Grantee or by the Company to the Administrator.  The
      resolution of such question or dispute by the Administrator shall be final
      and
      binding on all persons.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    10.           Venue. 
      The parties agree that any suit, action, or proceeding arising out of or
      relating to the Notice, the Plan or this Agreement shall be brought in the
      United States District Court for the Northern District of California (or should
      such court lack jurisdiction to hear such action, suit or proceeding, in a
      California state court in the County of Santa Clara) and that the parties shall
      submit to the jurisdiction of such court.  The parties irrevocably waive,
      to the fullest extent permitted by law, any objection the party may have to
      the
      laying of venue for any such suit, action or proceeding brought in such
      court.  If any one or more provisions of this Section 10 shall for any
      reason be held invalid or unenforceable, it is the specific intent of the
      parties that such provisions shall be modified to the minimum extent necessary
      to make it or its application valid and enforceable.

    

    11.           Notices. 
      Any notice required or permitted hereunder shall be given in writing and shall
      be deemed effectively given upon personal delivery, upon deposit for delivery
      by
      an internationally recognized express mail courier service or upon deposit
      in
      the United States mail by certified mail (if the parties are within the United
      States), with postage and fees prepaid, addressed to the other party at its
      address as shown in these instruments, or to such other address as such party
      may designate in writing from time to time to the other party.

    

    12.           
      Amendment to Meet the Requirements of Section 409A.  The Grantee
      acknowledges that the Company, in the exercise of its sole discretion and
      without the consent of the Grantee, may amend or modify this Agreement in any
      manner and delay the payment of any amounts payable pursuant to this Agreement
      to the minimum extent necessary to meet the requirements of Section 409A of
      the Code as amplified by any Internal Revenue Service or U.S. Treasury
      Department regulations or guidance as the Company deems appropriate or
      advisable.

    

    

    END
      OF AGREEMENTExhibit
        A

      

      SKIN
        SHOES, INC.

      

      2005
        INCENTIVE PLAN

      

      ARTICLE
        I 

      

      PURPOSE
        AND ADOPTION OF THE PLAN

      

      1.01. Purpose.
        The
        purpose of the Skin Shoes, Inc. 2005 Incentive Plan (as amended from time
        to
        time, the "Plan") is to assist in attracting and retaining highly competent
        employees, directors and consultants to act as an incentive in motivating
        selected employees, directors and consultants of Skin Shoes, Inc. and its
        Subsidiaries to achieve long-term corporate objectives and to enable stock-based
        and cash-based incentive awards to qualify as performance-based compensation
        for
        purposes of the tax deduction limitations under Section 162(m) of the
        Code.

      

      1.02. Adoption
        and Term.
        The
        Plan has been approved by the Board to be effective as of October 26, 2005
        and
        has been approved by the stockholders of the Company to be effective as of
        October 26, 2005. The Plan shall remain in effect until terminated by action
        of
        the Board; provided,
        however,
        that no
        Awards may be granted hereunder after the tenth anniversary of its initial
        effective date. 

      

      1.03 Share
        Exchange Transaction.
        The
        Company is a party to that certain Share Exchange Agreement dated November
        2,
        2005, and as amended February 1, 2006, by and between the Company and Logicom
        Inc., a Nevada corporation (“Logicom”), whereby Logicom shall assume the Plan
        and all Awards then in existence upon the closing of the transactions
        contemplated thereby (the “Share Exchange Transaction”). Upon the closing of the
        Share Exchange Transaction, the governing law reflected in Section 10.10
        hereof
        shall change, with no further action by the Board or the stockholders of
        the
        Company or Logicom, to be governed by the laws of Nevada and construed in
        accordance therewith. 

       

      ARTICLE
        II

      

      DEFINITIONS

      

      For
        the
        purpose of this Plan, capitalized terms shall have the following
        meanings:

      

      2.01. Award
        means
        any one or a combination of Non-Qualified Stock Options or Incentive Stock
        Options described in Article VI, Stock Appreciation Rights described in Article
        VI, Restricted Shares described in Article VII, Performance Awards described
        in
        Article VIII, Stock Units and other stock-based Awards described in Article
        IX,
        short-term cash incentive Awards described in Article X or any other Award
        made
        under the terms of the Plan.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      2.02. Award
        Agreement
        means a
        written agreement between the Company and a Participant or a written
        acknowledgment from the Company to a Participant specifically setting forth
        the
        terms and conditions of an Award granted under the Plan.

      

      2.03. Award
        Period
        means,
        with respect to an Award, the period of time, if any, set forth in the Award
        Agreement during which specified target performance goals must be achieved
        or
        other conditions set forth in the Award Agreement must be
        satisfied.

       

      2.04. Beneficiary
        means an
        individual, trust or estate who or which, by a written designation of the
        Participant filed with the Company, or if no such written designation is
        filed,
        by operation of law, succeeds to the rights and obligations of the Participant
        under the Plan and the Award Agreement upon the Participant's death.

      

      2.05. Board
        means
        the Board of Directors of the Company.

      

      2.06. Change
        in Control
        means,
        and shall be deemed to have occurred upon the occurrence of, any one of the
        following events, all of which shall exclude the closing of the Share Exchange
        Transaction and the transactions contemplated thereby:

      

      (a) The
        acquisition in one or more transactions, other than from the Company, by
        any
        individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
        of the Exchange Act), other than the Company, a Subsidiary or any employee
        benefit plan (or related trust) sponsored or maintained by the Company or
        a
        Subsidiary, of beneficial ownership (within the meaning of Rule 13d-3
        promulgated under the Exchange Act) of a number of Company Voting Securities
        in
        excess of 25% of the Company Voting Securities unless such acquisition has
        been
        approved by the Board;

      

      (b) Any
        election has occurred of persons to the Board that causes two-thirds of the
        Board to consist of persons other than (i) persons who were members of the
        Board
        on the effective date of the Plan and (ii) persons who were nominated for
        elections as members of the Board at a time when two-thirds of the Board
        consisted of persons who were members of the Board on the effective date
        of the
        Plan, provided, however, that any person nominated for election by a Board
        at
        least two-thirds of whom constituted persons described in clauses (i) and/or
        (ii) or by persons who were themselves nominated by such Board shall, for
        this
        purpose, be deemed to have been nominated by a Board composed of persons
        described in clause (i);

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
      

         (c) The
        consummation (i.e.
        closing)
        of a reorganization, merger or consolidation involving the Company, unless,
        following such reorganization, merger or consolidation, all or substantially
        all
        of the individuals and entities who were the respective beneficial owners
        of the
        Outstanding Common Stock and Company Voting Securities immediately prior
        to such
        reorganization, merger or consolidation, following such reorganization, merger
        or consolidation beneficially own, directly or indirectly, more than seventy
        five percent (75%) of, respectively, the then outstanding shares of common
        stock
        and the combined voting power of the then outstanding voting securities entitled
        to vote generally in the election of directors or trustees, as the case may
        be,
        of the entity resulting from such reorganization, merger or consolidation
        in
        substantially the same proportion as their ownership of the Outstanding Common
        Stock and Company Voting Securities immediately prior to such reorganization,
        merger or consolidation, as the case may be; 

      

         (d) The
        consummation (i.e.
        closing)
        of a sale or other disposition of all or substantially all the assets of
        the
        Company, unless, following such sale or disposition, all or substantially
        all of
        the individuals and entities who were the respective beneficial owners of
        the
        Outstanding Common Stock and Company Voting Securities immediately prior
        to such
        reorganization, merger or consolidation, following such reorganization, merger
        or consolidation beneficially own, directly or indirectly, more than seventy
        five percent (75%) of, respectively, the then outstanding shares of common
        stock
        and the combined voting power of the then outstanding voting securities entitled
        to vote generally in the election of directors or trustees, as the case may
        be,
        of the entity purchasing such assets in substantially the same proportion
        as
        their ownership of the Outstanding Common Stock and Company Voting Securities
        immediately prior to such sale or disposition, as the case may be; or

      

      (e) a
        complete liquidation or dissolution of the Company. 

      

      2.07. Code
        means
        the Internal Revenue Code of 1986, as amended. References to a section of
        the
        Code shall include that section and any comparable section or sections of
        any
        future legislation that amends, supplements or supersedes said
        section.

      

      2.08. Committee
        means
        the Committee defined in Section 3.01.

      

      2.09. Company
        means
        Skin Shoes, Inc., a Delaware corporation, and its successors and assigns,
        including, but not limited to, Logicom. 

      

      2.10. Common
        Stock
        means
        Common Stock of the Company, par value $.001 per share.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      2.10. Company
        Voting Securities
        means
        the combined voting power of all outstanding voting securities of the Company
        entitled to vote generally in the election of directors to the
        Board.

      

      2.12. Date
        of Grant
        means
        the date designated by the Committee as the date as of which it grants an
        Award,
        which shall not be earlier than the date on which the Committee approves
        the
        granting of such Award.  

      

      2.13. Dividend
        Equivalent Account
        means a
        bookkeeping account related to an Award that is credited with the amount
        of any
        cash dividends or stock distributions that would be payable with respect
        to the
        shares of Common Stock subject to such Awards had such shares been outstanding
        shares of Common Stock.

      

      2.14 Exchange
        Act
        means
        the Securities Exchange Act of 1934, as amended.

      

      2.15. Exercise
        Price
        means,
        with respect to a Stock Appreciation Right, the amount established by the
        Committee in the Award Agreement which is to be subtracted from the Fair
        Market
        Value on the date of exercise in order to determine the amount of the payment
        to
        be made to the Participant, as further described in Section
        6.02(b).

      2.16. Fair
        Market Value
        means,
        on any date, (i) the closing sale price of a share of Common Stock, as reported
        on the Composite Tape for New York Stock Exchange Listed Companies (or other
        established stock exchange on which the Common Stock is regularly traded)
        on
        such date or, if there were no sales on such date, on the last date preceding
        such date on which a sale was reported; (ii) if the Common Stock is not listed
        for trading on an established stock exchange, the closing sale price of a
        share
        of Common Stock on The Nasdaq Stock Market's National Market ("NNM") or SmallCap
        Market (“NSM”), or if there were no sales on such date, on the last date
        preceding such date on which a sale was reported; (iii) if shares of Common
        Stock are not listed for trading on an established stock exchange or quoted
        on
        NNM or NSM, but a regular, active public market for the Common Stock exists
        (as
        determined in the sole discretion of the Committee, whose discretion shall
        be
        conclusive and binding), the average of the closing bid and ask quotations
        per
        share of Common Stock in the over-the-counter (“OTC”) market for such shares on
        such date or, if no quotations are available on such date, on the last date
        preceding such date on which a quotation was reported; or (iv) if shares
        of
        Common Stock are not listed for trading on an established stock exchange
        or
        quoted on NNM or NSM or OTC, Fair Market Value shall be determined by the
        Committee in good faith. Such definition of Fair Market Value shall be specified
        in the Award Agreement and may differ depending on whether Fair Market Value
        is
        in reference to the grant, exercise, vesting, or settlement or payout of
        an
        Award. 

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      2.17. Incentive
        Stock Option
        means a
        stock option within the meaning of Section 422 of the Code.

      

      2.18. Merger
        means
        any merger, reorganization, consolidation, exchange, transfer of assets or
        other
        transaction having similar effect involving the Company.

      

      2.19. Non-Qualified
        Stock Option
        means a
        stock option which is not an Incentive Stock Option.

      

      2.20. Options
        means
        all Non-Qualified Stock Options and Incentive Stock Options granted at any
        time
        under the Plan.

      

      2.21. Outstanding
        Common Stock
        means,
        at any time, the issued and outstanding shares of Common Stock. 

      

      2.22. Participant
        means a
        person designated to receive an Award under the Plan in accordance with Section
        5.01.

      

      2.23. Performance
        Awards
        means
        Awards granted in accordance with Article VIII.

      

      2.24. Performance
        Goals
        means
        any of the following (in absolute terms or relative to one or more other
        companies or indices): operating income, operating profit (earnings from
        continuing operations before interest and taxes), earnings per share, return
        on
        investment or working capital, return on stockholders' equity, economic value
        added (the amount, if any, by which net operating profit after tax exceeds
        a
        reference cost of capital), reductions in inventory, inventory turns and
        on-time
        delivery performance, any one of which may be measured with respect to the
        Company or any one or more of its Subsidiaries and divisions and either in
        absolute terms or as compared to another company or companies, and quantifiable,
        objective measures of individual performance relevant to the particular
        individual's job responsibilities.

      

      2.25. Plan
        shall
        have the meaning given to such term in Section 1.01.

      

      2.26. Purchase
        Price,
        with
        respect to Options, shall have the meaning set forth in Section
        6.01(b).

      

      2.27. Restoration
        Option
        means a
        Non-Qualified Stock Option granted pursuant to Section 6.01(f).

      

      2.28. Restricted
        Shares
        means
        Common Stock subject to restrictions imposed in connection with Awards granted
        under Article VII.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      2.29. Retirement
        means
        early or normal retirement under a pension plan or arrangement of the Company
        or
        one of its Subsidiaries in which the Participant participates or, in the
        case of
        a Participant who is a non-employee member of the Board, retirement under
        the
        Board’s retirement policy, if any.

      

      2.30. Rule
        16b-3
        means
        Rule 16b-3 promulgated by the Securities and Exchange Commission under Section
        16 of the Exchange Act, as the same may be amended from time to time, and
        any
        successor rule. 

      

      2.31. Stock
        Appreciation Rights
        means
        awards granted in accordance with Article VI. 

    

    

      2.32 Subsidiary
        means a
        subsidiary of the Company within the meaning of Section 424(f) of the
        Code.

      

      2.33. Termination
        of Service
        means
        the voluntary or involuntary termination of a Participant's service as an
        employee, director or consultant with the Company or a Subsidiary for any
        reason, including death, disability, retirement or as the result of the
        divestiture of the Participant's employer or any similar transaction in which
        the Participant's employer ceases to be the Company or one of its Subsidiaries.
        Whether entering military or other government service shall constitute
        Termination of Service, or whether and when a Termination of Service shall
        occur
        as a result of disability, shall be determined in each case by the Committee
        in
        its sole discretion.

      

      ARTICLE
        III

      

      ADMINISTRATION

      

      3.01. Committee.
         

      

      (a) Duties
        and Authority.
        The
        Plan shall be administered by the Compensation committee of the Board
        ("Committee") comprised of at least two persons. The Committee shall have
        exclusive and final authority in each determination, interpretation or other
        action affecting the Plan and its Participants. The Committee shall have
        the
        sole discretionary authority to interpret the Plan, to establish and modify
        administrative rules for the Plan, to impose such conditions and restrictions
        on
        Awards as it determines appropriate, and to take such steps in connection
        with
        the Plan and Awards granted hereunder as it may deem necessary or advisable.
        The
        Committee shall not, however, have or exercise any discretion that would
        disqualify amounts payable under Article X as performance-based compensation
        for
        purposes of Section 162(m) of the Code. The Committee may delegate such of
        its
        powers and authority under the Plan as it deems appropriate to a subcommittee
        of
        the Committee and/or designated officers or employees of the Company. In
        addition, the full Board may exercise any of the powers and authority of
        the
        Committee under the Plan. In the event of such delegation of authority or
        exercise of authority by the Board, references in the Plan to the Committee
        shall be deemed to refer, as appropriate, to the delegate of the Committee
        or
        the Board. Actions taken by the Committee or any subcommittee thereof, and
        any
        delegation by the Committee to designated officers or employees, under this
        Section 3.01 shall comply with Section 16(b) of the Exchange Act, the
        performance-based provisions of Section 162(m) of the Code, and the regulations
        promulgated under each of such statutory provisions, or the respective
        successors to such statutory provisions or regulations, as in effect from
        time
        to time, to the extent applicable.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b) Indemnification.
        Each
        person who is or shall have been a member of the Board or the Committee,
        or an
        officer of the Company to whom authority was delegated in accordance with
        the
        Plan 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 the 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
        or
        her own behalf; provided, however, that the foregoing indemnification shall
        not
        apply to any loss, cost, liability, or expense that is a result of his or
        her
        own willful misconduct. The foregoing right of indemnification shall not
        be
        exclusive of any other rights of indemnification to which such persons may
        be
        entitled under the Company’s Certificate of Incorporation or Bylaws, conferred
        in a separate agreement with the Company, as a matter of law, or otherwise,
        or
        any power that the Company may have to indemnify them or hold them
        harmless.

       

      ARTICLE
        IV

      

      SHARES

      

      4.01. Number
        of Shares Issuable.
        The
        total number of shares initially authorized to be issued under the Plan shall
        be
        Three Million Three Hundred Seventy Five Thousand (3,375,000) shares of
        Common
        Stock. The foregoing share limits shall be subject to adjustment in accordance
        with Section 10.07. The shares to be offered under the Plan shall be authorized
        and unissued Common Stock, or issued Common Stock that shall have been
        reacquired by the Company. 

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      4.02. Shares
        Subject to Terminated Awards.
        Common
        Stock covered by any unexercised portions of terminated or forfeited Options
        (including canceled Options) granted under Article VI, Common Stock forfeited
        as
        provided in Section 7.02(a), Stock Units and other stock-based Awards terminated
        or forfeited as provided in Article IX, and Common Stock subject to any Awards
        that are otherwise surrendered by the Participant may again be subject to
        new
        Awards under the Plan. Shares of Common Stock surrendered to or withheld
        by the
        Company in payment or satisfaction of the Purchase Price of an Option or
        tax
        withholding obligation with respect to an Award shall be available for the
        grant
        of new Awards under the Plan. In the event of the exercise of Stock Appreciation
        Rights, whether or not granted in tandem with Options, only the number of
        shares
        of Common Stock actually issued in payment of such Stock Appreciation Rights
        shall be charged against the number of shares of Common Stock available for
        the
        grant of Awards hereunder, and any Common Stock subject to tandem Options,
        or
        portions thereof, which have been surrendered in connection with any such
        exercise of Stock Appreciation Rights shall not be charged against the number
        of
        shares of Common Stock available for the grant of Awards hereunder.
        .

      

      ARTICLE
        V

      

      PARTICIPATION

      

      5.01. Eligible
        Participants.
        Participants in the Plan shall be such employees, directors and consultants
        of
        the Company and its Subsidiaries as the Committee, in its sole discretion,
        may
        designate from time to time. The Committee's designation of a Participant
        in any
        year shall not require the Committee to designate such person to receive
        Awards
        or grants in any other year. The designation of a Participant to receive
        Awards
        or grants under one portion of the Plan does not require the Committee to
        include such Participant under other portions of the Plan. The Committee
        shall
        consider such factors as it deems pertinent in selecting Participants and
        in
        determining the type and amount of their respective Awards. 

       

      ARTICLE
        VI

      

      STOCK
        OPTIONS AND STOCK APPRECIATION RIGHTS

      

      6.01. Option
        Awards.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

         (a) Grant
        of Options.
        The
        Committee may grant, to such Participants as the Committee may select, Options
        entitling the Participant to purchase shares of Common Stock from the Company
        in
        such number, at such price, and on such terms and subject to such conditions,
        not inconsistent with the terms of this Plan, as may be established by the
        Committee. The terms of any Option granted under this Plan shall be set forth
        in
        an Award Agreement. 

       

      (b) Purchase
        Price of Options.
        The
        Purchase Price of each share of Common Stock which may be purchased upon
        exercise of any Option granted under the Plan shall be determined by the
        Committee; provided, however, that in no event shall the Purchase Price be
        less
        than the Fair Market Value on the Date of Grant. 

      

      (c) Designation
        of Options.
        The
        Committee shall designate, at the time of the grant of each Option, the Option
        as an Incentive Stock Option or a Non-Qualified Stock Option. 

      

      (d) Incentive
        Stock Option Share Limitation.
        No
        Participant may be granted Incentive Stock Options under the Plan (or any
        other
        plans of the Company and its Subsidiaries) that would result in shares with
        an
        aggregate Fair Market Value (measured on the Date of Grant) of more than
        $100,000 first becoming exercisable in any one calendar year.

      

      (e) Rights
        As a Stockholder.
        A
        Participant shall have no rights as a stockholder with respect to Common
        Stock
        covered by an Option until the Participant shall have become the holder of
        record of any such shares, and no adjustment shall be made for dividends
        in cash
        or other property or distributions or other rights with respect to any such
        Common Stock for which the record date is prior to the date on which the
        Participant or a transferee of the Option shall have become the holder of
        record
        of any such shares covered by the Option; provided, however, that Participants
        are entitled to share adjustments to reflect capital changes under Section
        10.07.

      

      (f) Restoration
        Options Upon the Exercise of a Non-Qualified Stock Option.
        In the
        event that any Participant delivers to the Company, or has withheld from
        the
        shares otherwise issuable upon the exercise of a Non-Qualified Stock Option,
        shares of Common Stock in payment of the Purchase Price of any Non-Qualified
        Stock Option granted hereunder in accordance with Section 6.04, the Committee
        shall have the authority to grant or provide for the automatic grant of a
        Restoration Option to such Participant. The grant of a Restoration Option
        shall
        be subject to the satisfaction of such conditions or criteria as the Committee
        in its sole discretion shall establish from time to time. A Restoration Option
        shall entitle the holder thereof to purchase a number of shares of Common
        Stock
        equal to the number of such shares so delivered or withheld upon exercise
        of the
        original Option and, in the discretion of the Committee, the number of shares,
        if any, delivered or withheld to the Corporation to satisfy any withholding
        tax
        liability arising in connection with the exercise of the original Option.
        A
        Restoration Option shall have a per share Purchase Price of not less than
        100%
        of the per share Fair Market Value of the Common Stock on the date of grant
        of
        such Restoration Option, a term not longer than the remaining term of the
        original Option at the time of exercise thereof, and such other terms and
        conditions as the Committee in its sole discretion shall determine.  

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (g) Dividend
        Equivalents.
        For any
        Option (with or without alternative Stock Appreciation Rights) granted under
        the
        Plan, the Committee shall have the discretion, upon the grant of the Option
        or
        thereafter, to establish a Dividend Equivalent Account with respect to the
        Option, and the applicable Award Agreement or an amendment thereto shall
        confirm
        such establishment. If a Dividend Equivalent Account is established, the
        following terms apply. 

       

      (i) Subject
        to such conditions, limitations and restrictions as shall be established
        by the
        Committee, from the Date of Grant of the Option or, if later, the date of
        establishment of the Dividend Equivalent Account, to the earlier of (i) the
        date
        of payment of such Dividend Equivalent Account or (ii) the date of cancellation,
        termination or expiration of the Option, the Dividend Equivalent Account
        shall
        be credited as of the record date of each cash dividend on the Common Stock
        with
        an amount equal to the cash dividends which would be paid with respect to
        the
        Common Stock then covered by the Option if the Option had been exercised
        and
        such Common Stock had been held of record on such record date. The Participant
        or other holder of such Option shall be entitled to receive from the Company
        in
        cash the balance credited to the Dividend Equivalent Account at such time,
        or
        from time to time, as shall be determined by the Committee and set forth
        in the
        applicable Award Agreement or an amendment thereto; provided, however, that
        if
        the applicable Award Agreement shall so provide, the Committee may determine
        that the balance credited to a Participant’s Dividend Equivalent Account be paid
        in the form of shares of Common Stock having a fair market value equal to
        such
        balance, or a combination of cash and shares.

       

      (ii) To
        the
        extent that an Option and any alternative Stock Appreciation Rights granted
        in
        conjunction with the Option are canceled, terminate or expire without the
        exercise of the Option or the alternative Stock Appreciation Rights, if any,
        granted in conjunction with the Option, the Dividend Equivalent Account with
        respect to the Option shall be eliminated, and no payment with respect to
        the
        Dividend Equivalent Account shall be made by the Company. Dividend Equivalent
        Accounts shall be established and maintained only on the books and records
        of
        the Company and no assets or funds of the Company shall be set aside, placed
        in
        trust, removed from the claims of the Company's general creditors, or otherwise
        made available until such amounts are actually payable as provided hereunder.
        

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      6.02. Stock
        Appreciation Rights.

      

      (a) Stock
        Appreciation Right Awards.
        The
        Committee is authorized to grant to any Participant one or more Stock
        Appreciation Rights. Such Stock Appreciation Rights may be granted either
        independent of or in tandem with Options granted to the same Participant.
        Stock
        Appreciation Rights granted in tandem with Options may be granted simultaneously
        with, or, in the case of Non-Qualified Stock Options, subsequent to, the
        grant
        to such Participant of the related Option; provided however, that: (i) any
        Option covering any share of Common Stock shall expire and not be exercisable
        upon the exercise of any Stock Appreciation Right with respect to the same
        share, (ii) any Stock Appreciation Right covering any share of Common Stock
        shall expire and not be exercisable upon the exercise of any related Option
        with
        respect to the same share, and (iii) an Option and Stock Appreciation Right
        covering the same share of Common Stock may not be exercised simultaneously.
        Upon exercise of a Stock Appreciation Right with respect to a share of Common
        Stock, the Participant shall be entitled to receive an amount equal to the
        excess, if any, of (A) the Fair Market Value of a share of Common Stock on
        the
        date of exercise over (B) the Exercise Price of such Stock Appreciation Right
        established in the Award Agreement, which amount shall be payable as provided
        in
        Section 6.02(c). 

       

         (b) Exercise
        Price.
        The
        Exercise Price established under any Stock Appreciation Right granted under
        this
        Plan shall be determined by the Committee, but in the case of Stock Appreciation
        Rights granted in tandem with Options shall not be less than the Purchase
        Price
        of the related Option. Upon exercise of Stock Appreciation Rights granted
        in
        tandem with options, the number of shares subject to exercise under any related
        Option shall automatically be reduced by the number of shares of Common Stock
        represented by the Option or portion thereof which are surrendered as a result
        of the exercise of such Stock Appreciation Rights.

      

         (c) Payment
        of Incremental Value.
        Any
        payment which may become due from the Company by reason of a Participant's
        exercise of a Stock Appreciation Right may be paid to the Participant as
        determined by the Committee (i) all in cash, (ii) all in Common Stock, or
        (iii)
        in any combination of cash and Common Stock. In the event that all or a portion
        of the payment is made in Common Stock, the number of shares of Common Stock
        delivered in satisfaction of such payment shall be determined by dividing
        the
        amount of such payment or portion thereof by the Fair Market Value on the
        Exercise Date. No fractional share of Common Stock shall be issued to make
        any
        payment in respect of Stock Appreciation Rights; if any fractional share
        would
        be issuable, the combination of cash and Common Stock payable to the Participant
        shall be adjusted as directed by the Committee to avoid the issuance of any
        fractional share.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      6.03. Terms
        of Stock Options and Stock Appreciation Rights.

      

      (a) Conditions
        on Exercise.
        An
        Award Agreement with respect to Options and/or Stock Appreciation Rights
        may
        contain such waiting periods, exercise dates and restrictions on exercise
        (including, but not limited to, periodic installments) as may be determined
        by
        the Committee at the time of grant. 

      

      (b) Duration
        of Options and Stock Appreciation Rights.
        Options
        and Stock Appreciation Rights shall terminate upon the first to occur of
        the
        following events:

      

      (i) Expiration
        of the Option or Stock Appreciation Right as provided in the Award Agreement;
        or

      

      (ii) Termination
        of the Award in the event of a Participant's disability, Retirement, death
        or
        other Termination of Service as provided in the Award Agreement; or

      

      (iii) In
        the
        case of an Incentive Stock Option, ten years from the Date of Grant;
        or

      

      (iv) Solely
        in
        the case of a Stock Appreciation Right granted in tandem with an Option,
        upon
        the expiration of the related Option. 

      

      (c) Acceleration
        or Extension of Exercise Time.
        The
        Committee, in its sole discretion, shall have the right (but shall not be
        obligated), exercisable on or at any time after the Date of Grant, to permit
        the
        exercise of an Option or Stock Appreciation Right (i) prior to the time such
        Option or Stock Appreciation Right would become exercisable under the terms
        of
        the Award Agreement, (ii) after the termination of the Option or Stock
        Appreciation Right under the terms of the Award Agreement, or (iii) after
        the
        expiration of the Option or Stock Appreciation Right.

      

      6.04. Exercise
        Procedures.
        Each
        Option and Stock Appreciation Right granted under the Plan shall be exercised
        prior to the close of business on the expiration date of the Option or Stock
        Appreciation Right by written notice to the Company or
        by
        such other method as provided in the Award Agreement or as the Committee
        may
        establish or approve from time to time. The Purchase Price of shares purchased
        upon exercise of an Option granted under the Plan shall be paid in full in
        cash
        by the Participant pursuant to the Award Agreement; provided, however, that
        the
        Committee may (but shall not be required to) permit payment to be made by
        delivery to the Company of either (a) Common Stock (which may include Restricted
        Shares or shares otherwise issuable in connection with the exercise of the
        Option, subject to such rules as the Committee deems appropriate) or (b)
        any
        combination of cash and Common Stock, or (c) such other consideration as
        the
        Committee deems appropriate and in compliance with applicable law (including
        payment in accordance with a cashless exercise program under which, if so
        instructed by the Participant, Common Stock may be issued directly to the
        Participant's broker or dealer upon receipt of an irrevocable written notice
        of
        exercise from the Participant). In the event that any Common Stock shall
        be
        transferred to the Company to satisfy all or any part of the Purchase Price,
        the
        part of the Purchase Price deemed to have been satisfied by such transfer
        of
        Common Stock shall be equal to the product derived by multiplying the Fair
        Market Value as of the date of exercise times the number of shares of Common
        Stock transferred to the Company. The Participant may not transfer to the
        Company in satisfaction of the Purchase Price any fractional share of Common
        Stock. Any part of the Purchase Price paid in cash upon the exercise of any
        Option shall be added to the general funds of the Company and may be used
        for
        any proper corporate purpose. Unless the Committee shall otherwise determine,
        any Common Stock transferred to the Company as payment of all or part of
        the
        Purchase Price upon the exercise of any Option shall be held as treasury
        shares.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      6.05. Change
        in Control.
        Unless
        otherwise provided by the Committee in the applicable Award Agreement, in
        the
        event of a Change in Control, all Options outstanding on the date of such
        Change
        in Control, and all Stock Appreciation Rights shall become immediately and
        fully
        exercisable. The provisions of this Section 6.05 shall not be applicable
        to any
        Options or Stock Appreciation Rights granted to a Participant if any Change
        in
        Control results from such Participant's beneficial ownership (within the
        meaning
        of Rule 13d-3 under the Exchange Act) of Common Stock or Company Voting
        Securities.

      

      ARTICLE
        VII

      

      RESTRICTED
        SHARES

      

      7.01. Restricted
        Share Awards.
        The
        Committee may grant to any Participant an Award of Common Stock in such number
        of shares, and on such terms, conditions and restrictions, whether based
        on
        performance standards, periods of service, retention by the Participant of
        ownership of purchased or designated shares of Common Stock or other criteria,
        as the Committee shall establish. With respect to performance-based Awards
        of
        Restricted Shares to "covered employees" (as defined in Section 162(m) of
        the
        Code), performance targets will be limited to specified levels of one or
        more of
        the Performance Goals. The terms of any Restricted Share Award granted under
        this Plan shall be set forth in an Award Agreement which shall contain
        provisions determined by the Committee and not inconsistent with this
        Plan.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (a) Issuance
        of Restricted Shares.
        As soon
        as practicable after the Date of Grant of a Restricted Share Award by the
        Committee, the Company shall cause to be transferred on the books of the
        Company, or its agent, Common Stock, registered on behalf of the Participant,
        evidencing the Restricted Shares covered by the Award, but subject to forfeiture
        to the Company as of the Date of Grant if an Award Agreement with respect
        to the
        Restricted Shares covered by the Award is not duly executed by the Participant
        and timely returned to the Company. All Common Stock covered by Awards under
        this Article VII shall be subject to the restrictions, terms and conditions
        contained in the Plan and the Award Agreement entered into by the Participant.
        Until the lapse or release of all restrictions applicable to an Award of
        Restricted Shares, the share certificates representing such Restricted Shares
        may be held in custody by the Company, its designee, or, if the certificates
        bear a restrictive legend, by the Participant. Upon the lapse or release
        of all
        restrictions with respect to an Award as described in Section 7.01(d), one
        or
        more share certificates, registered in the name of the Participant, for an
        appropriate number of shares as provided in Section 7.01(d), free of any
        restrictions set forth in the Plan and the Award Agreement shall be delivered
        to
        the Participant. 

      

      (b) Stockholder
        Rights.
        Beginning on the Date of Grant of the Restricted Share Award and subject
        to
        execution of the Award Agreement as provided in Section 7.01(a), the Participant
        shall become a stockholder of the Company with respect to all shares subject
        to
        the Award Agreement and shall have all of the rights of a stockholder,
        including, but not limited to, the right to vote such shares and the right
        to
        receive dividends; provided, however, that any Common Stock distributed as
        a
        dividend or otherwise with respect to any Restricted Shares as to which the
        restrictions have not yet lapsed, shall be subject to the same restrictions
        as
        such Restricted Shares and held or restricted as provided in Section
        7.01(a).

      

         (c) Restriction
        on Transferability.
        None of
        the Restricted Shares may be assigned or transferred (other than by will
        or the
        laws of descent and distribution, or to an inter vivos trust with respect
        to
        which the Participant is treated as the owner under Sections 671 through
        677 of
        the Code, except to the extent that Section 16 of the Exchange Act limits
        a
        Participant's right to make such transfers), pledged or sold prior to lapse
        of
        the restrictions applicable thereto.

      

      (d) Delivery
        of Shares Upon Vesting.
        Upon
        expiration or earlier termination of the forfeiture period without a forfeiture
        and the satisfaction of or release from any other conditions prescribed by
        the
        Committee, or at such earlier time as provided under the provisions of Section
        7.03, the restrictions applicable to the Restricted Shares shall lapse. As
        promptly as administratively feasible thereafter, subject to the requirements
        of
        Section 10.05, the Company shall deliver to the Participant or, in case of
        the
        Participant's death, to the Participant's Beneficiary, one or more share
        certificates for the appropriate number of shares of Common Stock, free of
        all
        such restrictions, except for any restrictions that may be imposed by
        law.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      7.02. Terms
        of Restricted Shares.

      

      (a) Forfeiture
        of Restricted Shares.
        Subject
        to Sections 7.02(b) and 7.03, all Restricted Shares shall be forfeited and
        returned to the Company and all rights of the Participant with respect to
        such
        Restricted Shares shall terminate unless the Participant continues in the
        service of the Company or a Subsidiary as an employee until the expiration
        of
        the forfeiture period for such Restricted Shares and satisfies any and all
        other
        conditions set forth in the Award Agreement. The Committee shall determine
        the
        forfeiture period (which may, but need not, lapse in installments) and any
        other
        terms and conditions applicable with respect to any Restricted Share
        Award.

      

      (b) Waiver
        of Forfeiture Period.
        Notwithstanding anything contained in this Article VII to the contrary, the
        Committee may, in its sole discretion, waive the forfeiture period and any
        other
        conditions set forth in any Award Agreement under appropriate circumstances
        (including the death, disability or Retirement of the Participant or a material
        change in circumstances arising after the date of an Award) and subject to
        such
        terms and conditions (including forfeiture of a proportionate number of the
        Restricted Shares) as the Committee shall deem appropriate.

      

      7.03. Change
        in Control.
        Unless
        otherwise provided by the Committee in the applicable Award Agreement, in
        the
        event of a Change in Control, all restrictions applicable to the Restricted
        Share Award shall terminate fully and the Participant shall immediately have
        the
        right to the delivery of share certificate or certificates for such shares
        in
        accordance with Section 7.01(d).

       

      ARTICLE
        VIII

      

      PERFORMANCE
        AWARDS

      

      8.01. Performance
        Awards.

      

      (a) Award
        Periods and Calculations of Potential Incentive Amounts.
        The
        Committee may grant Performance Awards to Participants. A Performance Award
        shall consist of the right to receive a payment (measured by the Fair Market
        Value of a specified number of shares of Common Stock, increases in such
        Fair
        Market Value during the Award Period and/or a fixed cash amount) contingent
        upon
        the extent to which certain predetermined performance targets have been met
        during an Award Period. The Award Period shall be two or more fiscal or calendar
        years as determined by the Committee. The Committee, in its discretion and
        under
        such terms as it deems appropriate, may permit newly eligible Participants,
        such
        as those who are promoted or newly hired, to receive Performance Awards after
        an
        Award Period has commenced. 

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b) Performance
        Targets.
        The
        performance targets may include such goals related to the performance of
        the
        Company or, where relevant, any one or more of its Subsidiaries or divisions
        and/or the performance of a Participant as may be established by the Committee
        in its discretion. In the case of Performance Awards to "covered employees"
        (as
        defined in Section 162(m) of the Code), the targets will be limited to specified
        levels of one or more of the Performance Goals. The performance targets
        established by the Committee may vary for different Award Periods and need
        not
        be the same for each Participant receiving a Performance Award in an Award
        Period. Except to the extent inconsistent with the performance-based
        compensation exception under Section 162(m) of the Code, in the case of
        Performance Awards granted to employees to whom such section is applicable,
        the
        Committee, in its discretion, but only under extraordinary circumstances
        as
        determined by the Committee, may change any prior determination of performance
        targets for any Award Period at any time prior to the final determination
        of the
        Award when events or transactions occur to cause the performance targets
        to be
        an inappropriate measure of achievement. 

      

      (c) Earning
        Performance Awards.
        The
        Committee, at or as soon as practicable after the Date of Grant, shall prescribe
        a formula to determine the percentage of the Performance Award to be earned
        based upon the degree of attainment of the applicable performance
        targets.

      

      (d) Payment
        of Earned Performance Awards.
        Subject
        to the requirements of Section 10.05, payments of earned Performance Awards
        shall be made in cash or Common Stock, or a combination of cash and Common
        Stock, in the discretion of the Committee. The Committee, in its sole
        discretion, may define, and set forth in the applicable Award Agreement,
        such
        terms and conditions with respect to the payment of earned Performance Awards
        as
        it may deem desirable.

      

      8.02. Termination
        of Service.
        In the
        event of a Participant’s Termination of Service during an Award Period, the
        Participant’s Performance Awards shall be forfeited except as may otherwise be
        provided in the applicable Award Agreement.

      

      8.03. Change
        in Control.
        Unless
        otherwise provided by the Committee in the applicable Award Agreement, in
        the
        event of a Change in Control, all Performance Awards for all Award Periods
        shall
        immediately become fully vested and payable to all Participants and shall
        be
        paid to Participants in accordance with Section 8.02(d), within 30 days after
        such Change in Control.

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      ARTICLE
        IX

      

      OTHER
        STOCK-BASED AWARDS

      

      9.01. Grant
        of Other Stock-Based Awards.
        Other
        stock-based awards, consisting of stock purchase rights (with or without
        loans
        to Participants by the Company containing such terms as the Committee shall
        determine), Awards of Common Stock, or Awards valued in whole or in part
        by
        reference to, or otherwise based on, Common Stock, may be granted either
        alone
        or in addition to or in conjunction with other Awards under the Plan. Subject
        to
        the provisions of the Plan, the Committee shall have sole and complete authority
        to determine the persons to whom and the time or times at which such Awards
        shall be made, the number of shares of Common Stock to be granted pursuant
        to
        such Awards, and all other conditions of the Awards. Any such Award shall
        be
        confirmed by an Award Agreement executed by the Committee and the Participant,
        which Award Agreement shall contain such provisions as the Committee determines
        to be necessary or appropriate to carry out the intent of this Plan with
        respect
        to such Award. 

      

      9.02. Terms
        of Other Stock-Based Awards.
        In
        addition to the terms and conditions specified in the Award Agreement, Awards
        made pursuant to this Article IX shall be subject to the following:

      

      (a) Any
        Common Stock subject to Awards made under this Article IX may not be sold,
        assigned, transferred, pledged or otherwise encumbered prior to the date
        on
        which the shares are issued, or, if later, the date on which any applicable
        restriction, performance or deferral period lapses; and 

      

      (b) If
        specified by the Committee in the Award Agreement, the recipient of an Award
        under this Article IX shall be entitled to receive, currently or on a deferred
        basis, interest or dividends or dividend equivalents with respect to the
        Common
        Stock or other securities covered by the Award; and

      

      (c) The
        Award
        Agreement with respect to any Award shall contain provisions dealing with
        the
        disposition of such Award in the event of a Termination of Service prior
        to the
        exercise, realization or payment of such Award, whether such termination
        occurs
        because of Retirement, disability, death or other reason, with such provisions
        to take account of the specific nature and purpose of the Award.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      ARTICLE
        X

      

      TERMS
        APPLICABLE GENERALLY TO AWARDS 

      GRANTED
        UNDER THE PLAN

      

      10.01. Plan
        Provisions Control Award Terms.
        Except
        as provided in Section 10.16, the terms of the Plan shall govern all Awards
        granted under the Plan, and in no event shall the Committee have the power
        to
        grant any Award under the Plan which is contrary to any of the provisions
        of the
        Plan. In the event any provision of any Award granted under the Plan shall
        conflict with any term in the Plan as constituted on the Date of Grant of
        such
        Award, the term in the Plan as constituted on the Date of Grant of such Award
        shall control. Except as provided in Section 10.03 and Section 10.07, the
        terms
        of any Award granted under the Plan may not be changed after the Date of
        Grant
        of such Award so as to materially decrease the value of the Award without
        the
        express written approval of the holder.

      

      10.02. Award
        Agreement.
        No
        person shall have any rights under any Award granted under the Plan unless
        and
        until the Company and the Participant to whom such Award shall have been
        granted
        shall have executed and delivered an Award Agreement or received any other
        Award
        acknowledgment authorized by the Committee expressly granting the Award to
        such
        person and containing provisions setting forth the terms of the
        Award.

      

      10.03. Modification
        of Award After Grant.
        No
        Award granted under the Plan to a Participant may be modified (unless such
        modification does not materially decrease the value of the Award) after the
        Date
        of Grant except by express written agreement between the Company and the
        Participant, provided that any such change (a) shall not be inconsistent
        with
        the terms of the Plan, and (b) shall be approved by the Committee.

      

      10.04. Limitation
        on Transfer.
        Except
        as provided in Section 7.01(c) in the case of Restricted Shares, a Participant's
        rights and interest under the Plan may not be assigned or transferred other
        than
        by will or the laws of descent and distribution, and during the lifetime
        of a
        Participant, only the Participant personally (or the Participant's personal
        representative) may exercise rights under the Plan. The Participant's
        Beneficiary may exercise the Participant's rights to the extent they are
        exercisable under the Plan following the death of the
        Participant.

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

      10.05. Taxes.
        The
        Company shall be entitled, if the Committee deems it necessary or desirable,
        to
        withhold (or secure payment from the Participant in lieu of withholding)
        the
        amount of any withholding or other tax required by law to be withheld or
        paid by
        the Company with respect to any amount payable and/or shares issuable under
        such
        Participant's Award, or with respect to any income recognized upon a
        disqualifying disposition of shares received pursuant to the exercise of
        an
        Incentive Stock Option, and the Company may defer payment or issuance of
        the
        cash or shares upon exercise or vesting of an Award unless indemnified to
        its
        satisfaction against any liability for any such tax. The amount of such
        withholding or tax payment shall be determined by the Committee and shall
        be
        payable by the Participant at such time as the Committee determines in
        accordance with the following rules:

      

      (a) The
        Participant shall have the right to elect to meet his or her withholding
        requirement (i) by having withheld from such Award at the appropriate time
        that
        number of shares of Common Stock, rounded up to the next whole share, whose
        Fair
        Market Value is equal to the amount of withholding taxes due, (ii) by direct
        payment to the Company in cash of the amount of any taxes required to be
        withheld with respect to such Award or (iii) by a combination of shares and
        cash.

      

      (b) The
        Committee shall have the discretion as to any Award, to cause the Company
        to pay
        to tax authorities for the benefit of any Participant, or to reimburse such
        Participant for the individual taxes which are due on the grant, exercise
        or
        vesting of any share Award, or the lapse of any restriction on any share
        Award
        (whether by reason of a Participant's filing of an election under Section
        83(b)
        of the Code or otherwise), including, but not limited to, Federal income
        tax,
        state income tax, local income tax and excise tax under Section 4999 of the
        Code, as well as for any such taxes as may be imposed upon such tax payment
        or
        reimbursement. 

      

         (c) In
        the
        case of Participants who are subject to Section 16 of the Exchange Act, the
        Committee may impose such limitations and restrictions as it deems necessary
        or
        appropriate with respect to the delivery or withholding of shares of Common
        Stock to meet tax withholding obligations. 

      

      10.06. Surrender
        of Awards.
        Any
        Award granted under the Plan may be surrendered to the Company for cancellation
        on such terms as the Committee and the holder approve. With the consent of
        the
        Participant, the Committee may substitute a new Award under this Plan in
        connection with the surrender by the Participant of an equity compensation
        award
        previously granted under this Plan or any other plan sponsored by the Company;
        provided, however, that no such substitution shall be permitted without the
        approval of the Company’s stockholders if such approval is required by the rules
        of any applicable stock exchange. 

      

      10.07. Adjustments
        to Reflect Capital Changes.

      

      (a) Recapitalization.
        The
        number and kind of shares subject to outstanding Awards, the Purchase Price
        or
        Exercise Price for such shares, the number and kind of shares available for
        Awards subsequently granted under the Plan and the maximum number of shares
        in
        respect of which Awards can be made to any Participant in any calendar year
        shall be appropriately adjusted to reflect any stock dividend, stock split,
        combination or exchange of shares, merger, consolidation or other change
        in
        capitalization with a similar substantive effect upon the Plan or the Awards
        granted under the Plan. The maximum number of shares in respect of which
        Awards
        can be made to any Participant in any calendar year shall be proportionately
        adjusted to reflect any other event that results in an increase in the number
        of
        issued and outstanding shares of Common Stock. The Committee shall have the
        power and sole discretion to determine the amount of the adjustment to be
        made
        in each case.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b) Merger.
        After
        any Merger in which the Company is the surviving corporation, each Participant
        shall, at no additional cost, be entitled upon any exercise of all Options
        or
        receipt of other Award to receive (subject to any required action by
        stockholders), in lieu of the number of shares of Common Stock receivable
        or
        exercisable pursuant to such Award, the number and class of shares or other
        securities to which such Participant would have been entitled pursuant to
        the
        terms of the Merger if, at the time of the Merger, such Participant had been
        the
        holder of record of a number of shares equal to the number of shares receivable
        or exercisable pursuant to such Award. Comparable rights shall accrue to
        each
        Participant in the event of successive Mergers of the character described
        above.
        In the event of a Merger in which the Company is not the surviving corporation,
        the surviving, continuing, successor, or purchasing corporation, as the case
        may
        be (the "Acquiring Corporation"), shall either assume the Company's rights
        and
        obligations under outstanding Award Agreements or substitute awards in respect
        of the Acquiring Corporation's stock for such outstanding Awards. In the
        event
        the Acquiring Corporation fails to assume or substitute for such outstanding
        Awards, the Board shall provide that any unexercisable and/or unvested portion
        of the outstanding Awards shall be immediately exercisable and vested as
        of a
        date prior to such Merger, as the Board so determines. The exercise and/or
        vesting of any Award that was permissible solely by reason of this Section
        10.07(b) shall be conditioned upon the consummation of the Merger. Any Options
        which are neither assumed by the Acquiring Corporation nor exercised as of
        the
        date of the Merger shall terminate effective as of the effective date of
        the
        Merger. 

      

      (c) Options
        to Purchase Shares or Stock of Acquired Companies.
        After
        any Merger in which the Company or a Subsidiary shall be a surviving
        corporation, the Committee may grant substituted options under the provisions
        of
        the Plan, pursuant to Section 424 of the Code, replacing old options granted
        under a plan of another party to the Merger whose shares or stock subject
        to the
        old options may no longer be issued following the Merger. The foregoing
        adjustments and manner of application of the foregoing provisions shall be
        determined by the Committee in its sole discretion. Any such adjustments
        may
        provide for the elimination of any fractional shares which might otherwise
        become subject to any Options.

      

      10.08. No
        Right to Continued Service.
        No
        person shall have any claim of right to be granted an Award under this Plan.
        Neither the Plan nor any action taken hereunder shall be construed as giving
        any
        Participant any right to be retained in the service of the Company or any
        of its
        Subsidiaries.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      10.09. Awards
        Not Includable for Benefit Purposes.
        Payments received by a Participant pursuant to the provisions of the Plan
        shall
        not be included in the determination of benefits under any pension, group
        insurance or other benefit plan applicable to the Participant which is
        maintained by the Company or any of its Subsidiaries, except as may be provided
        under the terms of such plans or determined by the Board.

      

      10.10. Governing
        Law.
        All
        determinations made and actions taken pursuant to the Plan shall be governed
        by
        the laws of Delaware and construed in accordance therewith. 

      

      10.10. No
        Strict Construction.
        No rule
        of strict construction shall be implied against the Company, the Committee,
        or
        any other person in the interpretation of any of the terms of the Plan, any
        Award granted under the Plan or any rule or procedure established by the
        Committee.

      

      10.12. Compliance
        with Rule 16b-3.
        It is
        intended that, unless the Committee determines otherwise, Awards under the
        Plan
        be eligible for exemption under Rule 16b-3. The Board is authorized to amend
        the
        Plan and to make any such modifications to Award Agreements to comply with
        Rule
        16b-3, as it may be amended from time to time, and to make any other such
        amendments or modifications as it deems necessary or appropriate to better
        accomplish the purposes of the Plan in light of any amendments made to Rule
        16b-3. 

      

      10.13. Captions.
        The
        captions (i.e., all Section headings) used in the Plan are for convenience
        only,
        do not constitute a part of the Plan, and shall not be deemed to limit,
        characterize or affect in any way any provisions of the Plan, and all provisions
        of the Plan shall be construed as if no captions have been used in the
        Plan.

      

      10.14. Severability.
        Whenever possible, each provision in the Plan and every Award at any time
        granted under the Plan shall be interpreted in such manner as to be effective
        and valid under applicable law, but if any provision of the Plan or any Award
        at
        any time granted under the Plan shall be held to be prohibited by or invalid
        under applicable law, then (a) such provision shall be deemed amended to
        accomplish the objectives of the provision as originally written to the fullest
        extent permitted by law and (b) all other provisions of the Plan and every
        other
        Award at any time granted under the Plan shall remain in full force and
        effect.

      

      10.15. Amendment
        and Termination.

      

      (a) Amendment.
        The
        Board shall have complete power and authority to amend the Plan at any time;
        provided, however, that the Board shall not, without the requisite affirmative
        approval of stockholders of the Company, make any amendment which requires
        stockholder approval under the Code or under any other applicable law or
        rule of
        any stock exchange which lists Common Stock or Company Voting Securities.
        No
        termination or amendment of the Plan may, without the consent of the Participant
        to whom any Award shall theretofore have been granted under the Plan, adversely
        affect the right of such individual under such Award. 

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      (b) Termination.
        The
        Board shall have the right and the power to terminate the Plan at any time.
        No
        Award shall be granted under the Plan after the termination of the Plan,
        but the
        termination of the Plan shall not have any other effect and any Award
        outstanding at the time of the termination of the Plan may be exercised after
        termination of the Plan at any time prior to the expiration date of such
        Award
        to the same extent such Award would have been exercisable had the Plan not
        terminated.

      

      10.16. Foreign
        Qualified Awards.
        Awards
        under the Plan may be granted to such employees of the Company and its
        Subsidiaries who are residing in foreign jurisdictions as the Committee in
        its
        sole discretion may determine from time to time. The Committee may adopt
        such
        supplements to the Plan as may be necessary or appropriate to comply with
        the
        applicable laws of such foreign jurisdictions and to afford Participants
        favorable treatment under such laws; provided, however, that no Award shall
        be
        granted under any such supplement with terms or conditions inconsistent with
        the
        provision set forth in the Plan.

      10.17 Section
        409A of the Code.
        Notwithstanding anything in this Plan to the contrary, any Award granted
        under
        the Plan shall contain terms that (i) are designed to avoid application of
        Section 409A of the Code to the Award or (ii) are designed to avoid adverse
        tax
        consequences under Section 409A of the Code should that section apply to
        the
        Award. If any Plan provision or Award under the Plan would result in the
        imposition of an applicable tax under Section 409A of the Code and related
        regulations and pronouncements, the Company shall take commercially-reasonable
        efforts to reform that Plan provision or Award to avoid imposition of the
        applicable tax and no action taken to comply with Section 409A of the Code
        shall
        be deemed to adversely affect the Participant's rights to an Award or to
        require
        the Participant's consent.

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