Document:

Exhibit 10.4

AMENDMENT NO. 5 TO
CREDIT AGREEMENT

This
Amendment No. 5 (this “Amendment”) to the Credit Agreement, dated as of
September 30, 2005 (as amended by Amendment No. 1, dated as of June 14, 2006
and Amendment No. 2, dated October 31, 2006, and subject to a Consent and
Waiver No. 3, dated as of October 31, 2006, and Waiver No. 4, dated as of March
30, 2007, the “Credit Agreement”), and entered into by and among Duff
& Phelps, LLC (the “Borrower”), Duff & Phelps Acquisitions, LLC,
as one of the guarantors (“Holdings”), the persons designated as “Lenders”
on the signature pages hereto (the “Lenders”) and General Electric
Capital Corporation, in its capacity as Administrative Agent (the “Administrative
Agent”) for its own benefit and the benefit of the Lenders, is dated as of
August 31, 2007 and entered into by and among Borrower, the other Loan Parties
signatory hereto, the Lenders signatory hereto and Administrative Agent.

R E C I T A L S:

 

WHEREAS,
Borrower has advised Administrative Agent and Lenders that the Borrower intends
to consummate on or prior to December 31, 2007 a firm commitment, underwritten
initial public offering of the Borrower’s Class A Common Stock registered
pursuant to the Securities Act of 1933, as amended, pursuant to a Registration
Statement on Form S-1 filed with the Securities and Exchange Commission on May
23, 2007 (Registration No. 333-143205) (the “Registered Offering”);

WHEREAS,
Borrower has advised the Administrative Agent and Lenders that Borrower will
enter into a Stock Purchase Agreement, with Shinsei Bank Limited (the “Shinsei
Stock Purchase Agreement”) substantially in the form attached as Exhibit
1 hereto, with such changes to such form prior to execution and delivery
thereof as may be approved by the Administrative Agent (such approval not to be
unreasonably withheld and not to be required for the insertion of the purchase
price) pursuant to which Shinsei Bank Limited will purchase Class A Common
Stock of the Borrower and may in connection therewith acquire certain promissory
notes of Holdings;

WHEREAS,
Borrower has requested that the Required Lenders amend the Credit Agreement so
that the requirement under Section 2.8(b) of the Credit Agreement that
Borrower apply a portion of the Net Cash Proceeds of any Equity Issuance  to the prepayment of the Obligations shall
not apply to the Net Cash Proceeds of the Registered Offering or to the Net
Cash Proceeds of the issuance of Class A Common Stock to Shinsei Bank Limited
under the Shinsei Stock Purchase Agreement; and

WHEREAS,
the Lenders whose signatures appear below are willing to agree to such request
and the Lenders whose signatures appear below and Administrative Agent are
willing to enter into such amendment upon the terms and conditions provided
herein.

NOW,
THEREFORE, in consideration of the premises and the agreements, provisions and
covenants herein contained, and subject to the terms and conditions hereof the
Loan Parties, the Lenders whose signatures appear below and Administrative
Agent agree as follows:

Section
1.

DEFINITIONS

1.1           Defined Terms. 
Unless otherwise provided all capitalized terms used herein shall have
the meanings ascribed thereto in the Credit Agreement.

 

 

Section 2.

AMENDMENT

2.1           Amendments.  Subject to the satisfaction of the conditions
set forth in Section 3, the Credit Agreement is hereby amended as
follows:

(a)           The
following terms are added to Section 1.1 of the Credit Agreement in
their respective appropriate alphabetical places:

“Amendment No. 5” means Amendment No. 5, dated as of August 31,
2007, to this Agreement.

“Class A Common Stock” means Class A Common Stock, par value
$.01 per share of Duff & Phelps Corporation.

“First Shinsei Note” means the “Note” as such term is defined in
the Shinsei Stock Purchase Agreement.

“Second Shinsei Note” means the “New Note” as such term is
defined in the Shinsei Stock Purchase Agreement.

“Registered Offering” means 
a firm commitment, underwritten initial public offering of Class A
Common Stock registered pursuant to the Securities Act of 1933, as amended,
pursuant to the Registration Statement on Form S-1 filed with the Securities
and Exchange Commission on May 23, 2007 (Registration No. 333-143205) and
consummated on or prior to December 31, 2007.

“Shinsei” means Shinsei Bank, Limited, a Japanese corporation.

“Shinsei Notes” means each of the First Shinsei Note and the
Second Shinsei Note. attached as Exhibit C and Exhibit D, respectively, to the
Shinsei Stock Purchase Agreement.

“Shinsei Stock Purchase Agreement” means the Stock Purchase
Agreement substantially in the form of Exhibit 1 to Amendment No. 5, with such
changes to such form prior to execution and delivery thereof as may be approved
by the Administrative Agent (such approval not to be unreasonably withheld and
not to be required for the insertion of the purchase price) by and among the
Borrower, Holdings and  Shinsei.

(b)           The
definition of “Change of Control” appearing in Section 1.1, is amended
and restated in its entirety as follows:

“Change
of Control” means the occurrence of any of the following: (a) prior to the
consummation of the Registered Offering, (i) the Permitted Investors shall
cease to have the power to vote or direct the voting of securities having a
majority of the ordinary voting power for the election of directors of Holdings
(determined on a fully diluted basis) or (ii) any Permitted Investor shall
cease to own and control legally and beneficially at least 50% of the Stock of
Holdings beneficially owned and controlled by such Permitted Investor on the
Closing Date, (b) following the consummation of the 

 

 

2

 

 

Resisted
Offering, (i) any “person” or “group” (within the meaning of Rules 13d-3 and
13d-5 under the Securities Exchange Act of 1934 as amended), other than any
combination of the Permitted Investors or any “group” including any Permitted
Investors, shall have acquired the beneficial ownership of 35% or more on a
fully diluted basis of the Voting Stock of Holdings; and the Permitted
Investors shall own, directly or indirectly, less than such “person” or “group”
on a fully diluted basis of the Voting Stock of Holdings; or (ii) continuing
directors shall cease for any reason other than death or disability to
constitute a majority of the directors of Holdings then in office, where “continuing
director” means, at any date of determination, each individual director of
Holdings who (x) has been a member of such board in the period of twelve
successive calendar months last ended prior to such date or (y) whose
nomination for election by the directors of Holdings was approved by a vote of
at least a majority of the directors who were continuing directors at the time
of such nomination, (c) Holdings shall cease to own and control legally and
beneficially (directly or indirectly) all of the Voting Stock of the Borrower,
or (d) a “Change of Control” or any term of similar effect, as defined in any
document governing Indebtedness of any Group Member having a principal amount
in excess of $5,000,000 shall occur.

 

(c)           Section
2.8(b) of the Credit Agreement is amended by replacing the first
parenthetical phrase appearing therein with the following:

(other than (A) any issuance of Stock of such
Loan Party occurring in the ordinary course of business to any director, member
of the management or employee of the Borrower or its Subsidiaries, (B) any
issuance of Stock to the Permitted Investors, their respective Affiliates or
co-investors, (C) any issuance of Stock in connection with Permitted
Acquisitions, (D) any issuance of Class A Common Stock pursuant to the
Registered Offering and (E) any Issuance on or prior to November  30, 2009 of Class A Common Stock pursuant to
the Shinsei Stock Purchase Agreement).

 

(d)           Section
8.1(h) of the Credit Agreement is amended by inserting the phrase “less the
then outstanding principal amount of the Shinsei Notes (but in no event shall
the amount be less than zero)” immediately after each of the dollar figures
appearing in the table in such section.

(e)           Section
8.1 of the Credit Agreement is amended by (i) deleting the word “and” after
the semicolon ending paragraph (l), (ii) adding immediately prior to the period
ending Section 8.1 the phrase “; and” and (iii) adding immediately after
such phrase the following: “(n) to the extent constituting Subordinated Debt,
Indebtedness of Holdings evidenced by the First Shinsei Note, and following
exchange and cancellation thereof, by the Second Shinsei Note”.

(f)            Section
8.5(c) of the Credit Agreement is amended by (i) deleting the word “and”
that follows the semicolon ending clause (vi) thereof, (ii) adding immediately
after the semicolon ending clause (v) thereof the word “and” and (iii) adding
immediately after such word the following: “(vi) so long as no Event of Default
is continuing or would arise therefrom, the payment of interest at the times
and in the amounts required by the Shinsei Notes;”.

(g)           Section
8.5 of the Credit Agreement is amended by (i) deleting the word “and”
following the semicolon ending paragraph (c) thereof, (ii) adding immediately
prior to the period ending paragraph (d) thereof the phrase “; and” and (iii)
adding immediately after such phrase the following: “(e) the redemption of
Stock of Holdings with the proceeds of the Class A Common Stock issued pursuant
to the Registered Offering”.

(h)           Section
8.6(c) of the Credit Agreement is amended and restated in its entirety as
follows:

 

3

 

(c)            (i) make regularly scheduled or
otherwise required repayments or redemptions of Subordinated Debt (other than
the Shinsei Notes) to the extent permitted by the subordination provisions
thereof, and (ii) (x) convert a Shinsei Note into Class A Common Stock in
accordance with the terms of the Shinsei Stock Purchase Agreement or (y)
exchange the First Shinsei Note for the Second Shinsei Note in accordance with
the Shinsei Stock Purchase Agreement.

 

(i)            Section
8.9 of the Credit Agreement is amended by (i) replacing the word “and”
appearing immediately before the designation “(g)” appearing therein with a
comma, and (ii) inserting immediately prior to the period ending such section
the following: “; (h) the redemption of the Stock of Holdings pursuant to Section
8.5(e); and (i) transactions with Shinsei in accordance with and as
required by the Shinsei Stock Purchase Agreement”.

(j)            Section
8.11(b) of the Credit Agreement is amended and restated in its entirety as
follows:

(b)           waive or otherwise modify any term of any Subordinated
Debt (including the Shinsei Notes) if the effect thereof on such Subordinated Debt
is to (i) increase the interest rate, (ii) change the due dates for
principal or interest, other than to extend such dates, (iii) modify any
default or event of default, other than to delete it or make it less
restrictive, (iv) add any covenant with respect thereto, (v) modify
any subordination provision, (vi) modify any redemption or prepayment
provision, other than to extend the dates therefor or to reduce the premiums
payable in connection therewith or (vii) materially increase any
obligation of any Group Member or confer additional material rights to the
holder of such Subordinated Debt in a manner adverse to any Group Member or any
Secured Party; or . . .

 

(k)           Section 8.11 of the Credit
Agreement is amended by adding the following paragraph (c) at the end thereof:  “(c) waive
or otherwise modify any term of the Shinsei Stock Purchase Agreement in any
manner that is materially adverse to the interest of any Group Member or the Lenders.”

 

(l)            Section
9.1(c) of the Credit Agreement is amended by inserting the phrase “(and except
in the case of any failure to comply with any Subordination Agreement)”
immediately after the phrase “if, in the case of this clause (ii)”.

 

Section
3.

CONDITIONS
TO EFFECTIVENESS

The
amendments provided in Section 2.1 shall become effective on the date
(the “Effective Date”) that the following conditions have been satisfied
in full or waived by the Required Lenders:

(a)           Administrative
Agent shall have received one or more counterparts of this Amendment No. 5
executed and delivered by the Loan Parties,
the Required Lenders and Administrative Agent.

(b)           There
shall be no continuing Default or Event of Default and the representations and
warranties of the Loan Parties contained in the Loan Documents, shall
be true and correct in all material respects as of the Effective Date or such
other specific date as of which any such representation or warranty is by its
terms made.

 

4

 

Section 4.

LIMITATION ON SCOPE

Except
as expressly amended hereby, the Loan Documents shall remain in full force and
effect in accordance with their respective terms.  The amendments set forth herein shall be
limited precisely as provided for herein and shall not be deemed to be waivers
of, amendments of, consents to or modifications of any term or provision of the
Loan Documents or any other document or instrument referred to therein or of
any transaction or further or future action on the part of any Loan Party
requiring the consent of Administrative Agent or Lenders except to the extent
specifically provided for herein. 
Administrative Agent and Lenders have not and shall not be deemed to
have waived any of their respective rights and remedies against any Loan Party
for any existing or future Defaults or Events of Default.

Section
5.

MISCELLANEOUS

(a)           Each Loan
Party hereby represents and warrants as follows:

(i)            this Amendment No.
5 has been duly authorized and executed by such Loan Party and the Credit
Agreement, as amended by this Amendment No. 5 is the legal, valid and binding
obligation of such Loan Party, enforceable in accordance with its terms, except
as (1) such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium and similar laws affecting the rights of
creditors in general and (2) the availability of equitable remedies may be
limited by equitable principles of general applicability; and

(ii)           Such Loan Party
repeats and restates the representations and warranties of such Loan Party
contained in the Credit Agreement as of the Effective Date, except to the
extent such representations and warranties relate to a specific date; provided
that references to the “Credit Agreement” or “this Agreement” in such
representations and warranties shall be deemed to be references to the Credit
Agreement as amended pursuant to this Amendment No. 5.

(b)           This
Amendment No. 5 is being delivered in the State of New York.

(c)           Each Loan
Party hereby ratifies and confirms that the Credit Agreement as amended hereby
remains in full force and effect.

(d)           Each Loan
Party agrees that all Loan Documents, as amended hereby or otherwise amended in
connection herewith, remain in full force and effect notwithstanding the
execution and delivery of this Amendment No. 5 and all other Loan Documents and
that nothing contained in this Amendment No. 5 shall constitute a defense to
the enforcement of any Loan Document.

(e)           This
Amendment No. 5 may be executed by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed an original, but all
of which counterparts together shall constitute but one and the same
instrument.

(f)            All
references in the Loan Documents to the “Credit Agreement” and in the Credit
Agreement as amended hereby to “this Agreement,” “hereof,” “herein” or the like
shall mean and refer to the Credit Agreement as amended by this Amendment No. 5
(as well as by all subsequent amendments, restatements, modifications and
supplements thereto).

 

5

 

(g)           This Amendment is a “Loan Document”
and each of the following provisions of the Credit Agreement is hereby
incorporated herein by this reference with the
same effect as though set forth in its entirety herein, mutatis mutandis, and as if “this Agreement” in any such
provision read “this Amendment No. 5”: Section 12.13 (Governing Law), Section
12.14 (Jurisdiction), Section 12.15 (Waiver of Jury Trial) and Section 12.16
(Severability).

 

[Signature page is next page]

 

6

 

Witness
the due execution hereof by the respective duly authorized officers of the
undersigned of this Amendment No. 5 to the Credit Agreement as of the date
first written above.

 

	
   

  	
  DUFF
  & PHELPS, LLC

  
	
   

  	
  as
  Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jacob Silverman

  
	
   

  	
  Name:

  	
  Jacob Silverman

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  DUFF
  & PHELPS ACQUISITIONS, LLC

  
	
   

  	
  as
  Holdings

  
	
   

  	
   

  
	
   

  	
  By:  DUFF
  & PHELPS HOLDINGS LLC

  
	
   

  	
  its Member

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Noah Gottdiener

  
	
   

  	
  Name:

  	
  Noah Gottdiener

  
	
   

  	
  Title:

  	
  Member

  
	
   

  	
   

  
	
   

  	
  GENERAL
  ELECTRIC CAPITAL CORPORATION,

  
	
   

  	
  as
  Administrative Agent, L/C Issuer, and Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Andrew Crain

  
	
   

  	
  Name:

  	
  Andrew
  Crain

  
	
   

  	
  Title:

  	
  Duly Authorized
  Signatory

  

 

 

Amendment No. 5 to Credit
Agreement

 

7

 

 

 

 

 

	
   

  	
  LASALLE
  BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as Syndication
  Agent and a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Emily Eigel

  
	
   

  	
  Name:

  	
  Emily
  Eigel

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

Amendment No. 5 to Credit
Agreement

 

 

 

8

 

 

 

 

 

 

 

	
   

  	
  ING
  CAPITAL LLC, as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Lawrence P. Eyink

  
	
   

  	
  Name:

  	
  Lawrence
  P. Eyink

  
	
   

  	
  Title:

  	
  Director

  

 

 

Amendment No. 5 to Credit
Agreement

 

 

 

9

 

 

 

 

	
   

  	
  SOVEREIGN
  BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christine Gerula

  
	
   

  	
  Name:

  	
  Christine
  Gerula

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

 

Amendment No. 5 to Credit
Agreement

 

 

10

 

CONSENT AND REAFFIRMATION

 

                The undersigned (“Guarantor”) hereby (i)
acknowledges receipt of a copy of the foregoing Amendment No. 5; (ii) consents
to Borrower’s execution and delivery thereof and approves and consents to the
transactions contemplated thereby; (iii) agrees to be bound thereby; and (iv)
affirms that nothing contained therein shall modify or diminish in any respect
whatsoever its obligations under the Guaranty and the other Loan Documents to
which it is a party and reaffirms that such Guaranty is and shall continue to
remain in full force and effect.  This
acknowledgement by the Guarantor is made and delivered to induce Agent and
Lenders to enter into Amendment No. 5, and the Guarantor acknowledges that
Agent and Lenders would not enter into Amendment No. 5 in the absence of the
acknowledgements contained herein. 
Although Guarantor has been informed of the matters set forth herein and
has acknowledged and agreed to same, Guarantor understands that Agent and
Lenders have no obligation to inform Guarantor of such matters in the future or
to seek Guarantor’s acknowledgment or agreement to future amendments or
waivers, and nothing herein shall create such a duty.  Capitalized terms used herein without
definition shall have the meanings given to such terms in the Amendment No. 5
to which this Consent is attached or in the Credit Agreement referred to
therein, as applicable.

 

                IN WITNESS WHEREOF, the undersigned has executed this
Consent and Reaffirmation on and as of the date of Amendment No. 5.

 

	
   

  	
  DUFF
  & PHELPS ACQUISITIONS, LLC

  
	
   

  	
  as
  Holdings

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  DUFF
  & PHELPS HOLDINGS LLC

  
	
   

  	
   

  	
  its Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Noah Gottdiener

  
	
   

  	
  Name:

  	
  Noah Gottdiener

  
	
   

  	
  Title:

  	
  Member

  
				

 

 

Amendment No. 5 to Credit
Agreement

 

 

11Exhibit
10.13

DUFF & PHELPS CORPORATION

2007 OMNIBUS
STOCK INCENTIVE PLAN

SECTION 1.           GENERAL
PURPOSE OF THE PLAN; DEFINITIONS

The name of the plan is the Duff & Phelps
Corporation 2007 Omnibus Stock Incentive Plan (the “Plan”).  The purpose of the Plan is to encourage and
enable the officers, employees, Non-Employee Directors and consultants of Duff
& Phelps Corporation (the “Company”) and its Subsidiaries upon whose
judgment, initiative and efforts the Company largely depends for the successful
conduct of its business to acquire a proprietary interest in the Company.  It is anticipated that providing such persons
with a direct stake in the Company’s welfare will assure a closer
identification of their interests with those of the Company and its
stockholders, thereby stimulating their efforts on the Company’s behalf and
strengthening their desire to remain with the Company.

The following terms shall be defined as set
forth below:

“Act” means the Securities Act of 1933, as amended, and
the rules and regulations thereunder.

“Award” or “Awards,” except where referring to a particular category
of grant under the Plan, shall include  Incentive Stock Options, Non-Qualified Stock
Options, Stock Appreciation Rights, Deferred Stock Awards,  Restricted Stock Awards,
Other Stock-Based Awards and Dividend Equivalent Rights.

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

“Code” means the Internal Revenue Code of 1986, as
amended, and any successor Code, and related rules,  regulations and interpretations.

“Committee” means the compensation committee of the Board or a
similar committee performing the  functions of the compensation committee and
which is comprised of not less than two Non-Employee Directors  who meet the independence
requirements imposed by the New York Stock Exchange, who are “outside directors”  within the meaning of
Section 162(m) of the Code and “non-employee directors” within the meaning of
Rule 16b-3 of the Exchange Act.

 

“Covered Employee” means an employee who is a “Covered
Employee” within the
meaning of Section 162(m) of the Code.

“Deferred Stock Award” means Awards granted pursuant to Section 8.

“Dividend Equivalent Right” means Awards granted pursuant to Section 10.

“DPA” means Duff
& Phelps Acquisitions, LLC, a Delaware limited liability company and the
entity through which the Company conducts its business.

“Effective Date” means the date on which the Plan is approved by
stockholders as set forth in Section 19.

“Exchange Act” means the Securities Exchange Act of 1934, as amended,
and the rules and  regulations  thereunder.

“Fair Market Value” of the Stock on any given date means the fair
market value of the Stock determined in  good faith by the Committee; provided,
however, that if the Stock is admitted to quotation on the National  Association of Securities
Dealers Automated Quotation System (“NASDAQ”), NASDAQ National System or a  national securities
exchange, the determination shall be made by reference to the closing price on
such date.  If  there are no market quotations for such date,
the determination shall be made by reference to the last date  preceding such date for
which there are market quotations; provided further, however, that if the date
for which  Fair Market
Value is determined is the first day when trading prices for the Stock are
reported on NASDAQ or  on a national securities exchange, the Fair
Market Value shall be the “Price to the Public” (or equivalent) set forth  on the cover page for the
final prospectus relating to the Company’s Initial Public Offering.

“Incentive Stock Option” means any Stock Option designated and qualified as
an “incentive stock option” as  defined in Section 422 of the Code.

“Initial Public Offering” means the consummation of the first fully
underwritten, firm commitment public  offering pursuant to an effective registration
statement under the Act covering the offer and sale by the Company  of its equity securities, or
such other event as a result of or following which the Stock shall be publicly
held.

“Non-Employee Director” means a member of the Board who is not also an
employee of the Company or  any Subsidiary.

 

2

“Non-Qualified Stock Option” means any Stock Option that is not an Incentive
Stock Option.

“Other Stock-Based Awards” means Awards granted pursuant to Section 9.

“Option” or “Stock Option” means any option to purchase shares of Stock
granted pursuant to Section 5.

“Performance-based Award” means any Restricted Stock Award, Deferred Stock
Award or Other Stock-based  Award granted to a Covered Employee that is
intended to qualify as “performance-based compensation” under Section 162(m) of
the Code and the regulations promulgated thereunder.

“Performance Criteria” means the criteria that the Committee selects for
purposes of establishing the Performance Goal or Performance Goals for an
individual for a Performance Cycle.  The
Performance Criteria (which shall be applicable to the organizational level
specified by the Committee, including, but not limited to, the Company, DPA or
a unit, division, group, or Subsidiary of the Company) that will be used to
establish Performance Goals are limited to the following: earnings before
interest, taxes, depreciation and amortization, net income (loss) (either
before or after interest, taxes, depreciation and/or amortization), changes in
the market price of the Stock, economic value-added, funds from operations or
similar measure, sales or revenue, acquisitions or strategic transactions,
operating income (loss), cash flow (including, but not limited to, operating
cash flow and free cash flow), return on capital, assets, equity, or
investment, stockholder returns, return on sales, gross or net profit levels,
productivity, expense, margins, operating efficiency, customer satisfaction,
working capital, earnings (loss) per share of Stock, sales or market shares and
number of customers, any of which may be measured either in absolute terms or
as compared to any incremental increase or as compared to results of a peer
group.

“Performance Cycle” means one or more periods of time, which may be of
varying and overlapping durations, as the Committee may select, over which the
attainment of one or more Performance Criteria will be measured for the purpose
of determining a grantee’s right to and the payment of a Restricted Stock
Award, Deferred Stock Award or Other Stock-based Award.

“Performance Goals” means, for a Performance Cycle, the specific goals
established in writing by the Committee for a Performance Cycle based upon the
Performance Criteria.

“Restricted Stock Award” means Awards granted pursuant to Section 7.

 

3

“Section 409A” means Section 409A of the Code and the regulations
and other guidance promulgated thereunder.

“Stock” means the Common Stock, par value $0.01 per share,
of the Company, subject to adjustments pursuant to Section 3.

“Stock Appreciation Right” means any Award granted pursuant to Section 6.

“Subsidiary” means any corporation or other entity (other than
the Company, but including DPA) in which the Company or DPA has at least a 50
percent interest, either directly or indirectly.

“Ten Percent Owner” means an employee who owns or is deemed to own (by
reason of the attribution rules of Section 424(d) of the Code) more than 10
percent of the combined voting power of all classes of stock of the Company or
any “parent corporation” or “subsidiary corporation,” as defined in Sections
424(e) and (f), respectively, of the Code.

SECTION 2.           ADMINISTRATION
OF PLAN; COMMITTEE AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS

(a)           Committee.  The Plan
shall be administered by the Committee; provided, however, that any Awards granted
prior to the Initial Public Offering may be made by the Board.

(b)           Powers of Committee.  The
Committee (or the Board prior to the Initial Public Offering) shall have the power
and authority to grant Awards consistent with the terms of the Plan, including
the power and authority:

(i)    to select the individuals to whom Awards may
from time to time be granted;

(ii)   to determine the time or times of grant, and
the extent, if any, of Incentive Stock Options, Non-Qualified Stock Options,
Stock Appreciation Rights, Restricted Stock Awards, Deferred Stock Awards, Other
Stock-Based Awards and Dividend Equivalent Rights, or any combination of the
foregoing, granted to any one or more grantees;

(iii)  to determine the number of shares of Stock to
be covered by any Award;

 

4

(iv)  to determine and modify from time to time the
terms and conditions, including restrictions, not inconsistent with the terms
of the Plan, of any Award, which terms and conditions may differ among individual
Awards and grantees, and to approve the form of written instruments evidencing
the Awards;

(v)   to accelerate at any time the exercisability
or vesting of all or any portion of any Award;

(vi)  subject to the provisions of Section 5(c), to
extend at any time the period in which Stock Options may be exercised; and

(vii) at any time to adopt, alter and repeal such
rules, guidelines and practices for administration of the Plan and for its own
acts and proceedings as it shall deem advisable; to interpret the terms and provisions
of the Plan and any Award (including related written instruments); to make all
determinations it deems advisable for the administration of the Plan; to decide
all disputes arising in connection with the Plan; and to otherwise supervise
the administration of the Plan.

All decisions and interpretations of the
Board and the Committee shall be binding on all persons, including  the Company and Plan
grantees.

(c)           Indemnification.  Neither
the Board nor the Committee, nor any member of either or any delegate  thereof, shall be liable for any
act, omission, interpretation, construction or determination made in good faith
in  connection
with the Plan, and the members of the Board and the Committee (and any delegate
thereof) shall be  entitled
in all cases to indemnification and reimbursement by the Company in respect of
any claim, loss, damage  or
expense (including, without limitation, reasonable attorneys’ fees) arising or
resulting therefrom to the fullest extent permitted by law and/or under the
Company’s  articles
or bylaws, any directors’ and officers’ liability insurance coverage which may
be in effect from time to  time
and/or any indemnification agreement between such individual and the Company.

SECTION 3.           STOCK
ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION

(a)           Stock Issuable.  The
maximum number of shares of Stock reserved and available for issuance under  the Plan shall be 6,150,000, subject to adjustment as
provided in Section 3(b); provided that not more than one-half of the
authorized  number
shall be issued in the form of Incentive Stock Options.  For purposes of this limitation, each unit  underlying an Other Stock-Based
Award shall count as one share and the shares of Stock underlying any Awards  that are forfeited, canceled or
otherwise terminated (other than by exercise) shall be 

 

5

added back to the shares of  Stock available for issuance under the Plan.  Shares tendered or held back upon exercise of
an Option or  settlement
of an Award to cover the exercise price or tax withholding shall not be
available for future issuance  under
the Plan.  In addition, upon exercise of
Stock Appreciation Rights, the gross number of shares exercised  shall be deducted from the total
number of shares remaining available for issuance under the Plan.  Subject to  such overall limitations, shares of Stock may be issued up to
such maximum number pursuant to any type or  types of Award; provided, however, that from and after the
end of the Code Section 162(m) transition period  applicable to the Company, Stock Options or Stock
Appreciation Rights with respect to no more than one-half of the  total number of shares of Stock authorized
to be issued under this Plan (subject to adjustment as provided in Section
3(b)) may be granted to any one individual  grantee during any one calendar year period.  The shares available for issuance under the
Plan may be authorized  but
unissued shares of Stock or shares of Stock reacquired by the Company.

(b)           Changes in Stock.  Subject
to Section 3(c) hereof, if, as a result of any reorganization,
recapitalization, reclassification, stock dividend, stock split, reverse stock
split or other similar change in the Company’s capital stock, the outstanding
shares of Stock are increased or decreased or are exchanged for a different
number or kind of shares or other securities of the Company, or additional
shares or new or different shares or other securities of the Company or other
non-cash assets are distributed with respect to such shares of Stock or other
securities, or, if, as a result of any merger or consolidation, sale of all or
substantially all of the assets of the Company, the outstanding shares of Stock
are converted into or exchanged for a different number or kind of securities of
the Company or any successor entity (or a parent or subsidiary thereof), the
Committee shall make an appropriate or proportionate adjustment in (i) the
maximum number of shares reserved for issuance under the Plan, (ii) the number
of Stock Options or Stock Appreciation Rights that can be granted to any one
individual grantee and the maximum number of shares that can be granted under a
Performance-based Award, (iii) the number and kind of shares or other
securities subject to any then outstanding Awards under the Plan, (iv) the
repurchase price, if any, per share subject to each outstanding Restricted
Stock Award, (v) the number of Stock Options automatically granted to Non-Employee
Directors, and (vi) the price for each share subject to any then outstanding
Stock Options and Stock Appreciation Rights under the Plan, without changing
the aggregate exercise price (i.e., the exercise price multiplied by the number
of Stock Options and Stock Appreciation Rights) as to which such Stock Options
and Stock Appreciation Rights remain exercisable.  The Committee shall also adjust the number of
shares subject to outstanding Awards and the exercise price and the terms of
outstanding Awards to take into consideration extraordinary dividends,
acquisitions or dispositions of stock or property or any other similar corporate
event to the extent necessary to avoid distortion in the value of the Awards.  The adjustment by the Committee shall be
final, binding and conclusive.  No
fractional shares of Stock shall be issued under the Plan  resulting from any such adjustment, but the
Committee in its discretion may make a cash payment in lieu of fractional
shares.

No adjustment shall be made under this
Section 3(b) in the case of an  Option without
the consent of the grantee, if such adjustment would constitute a modification,
extension or renewal of the Option within the meaning of Section 424(h) of the
Code or a modification of 

 

6

the Option such that the Option
becomes treated as “nonqualified deferred compensation” subject to Section
409A.

(c)           Mergers and Other Transactions.  In the case of and subject to the
consummation of (i) the dissolution or liquidation of the Company, (ii) the
sale of all or substantially all of the assets of the Company on a consolidated
basis to an unrelated person or entity, (iii) a merger, reorganization or
consolidation in which the outstanding shares of Stock are converted into or
exchanged for securities of the successor entity and the holders of the Company’s
outstanding voting power immediately prior to such transaction do not own a
majority of the outstanding voting power of the successor entity immediately
upon completion of such transaction, or (iv) the sale of all of the Stock of
the Company to an unrelated person or entity (in each case, a “Sale Event”),
the Committee reserves the right to accelerate the vesting and /or
exercisability of all outstanding Awards.  Upon the effective time of the Sale Event, the
Plan and all outstanding Awards granted hereunder shall terminate, unless provision
is made in connection with the Sale Event in the sole discretion of the parties
thereto for the assumption or continuation of Awards theretofore granted by the
successor entity, or the substitution of such Awards with new Awards of the
successor entity or parent thereof, with appropriate adjustment as to the
number and kind of shares and, if appropriate, the per share exercise prices,
as such parties shall agree (after taking into account any acceleration
hereunder).  In the event of such
termination, each grantee shall be permitted, within a specified period of time
prior to the consummation of the Sale Event as determined by the Committee, to
exercise all outstanding Options and Stock Appreciation Rights held by such
grantee, including those that will become exercisable upon the consummation of
the Sale Event; provided, however, that the exercise of Options and Stock Appreciation
Rights not exercisable prior to the Sale Event shall be subject to the
consummation of the Sale Event.

Notwithstanding anything to the contrary in
Section 3(b) or this Section 3(c), in the event of a Sale Event pursuant to
which holders of the Stock of the Company will receive upon consummation
thereof a cash payment for each share surrendered in the Sale Event, the
Company shall have the right, but not the obligation, to make or provide for a cash
payment to the grantees holding Options and Stock Appreciation Rights, in
exchange for the cancellation thereof, in an amount equal to the difference
between (A) the value as determined by the Committee of the consideration
payable per share of Stock pursuant to the Sale Event (the “Sale Price”) times
the number of shares of Stock subject to outstanding Options and Stock
Appreciation Rights (to the extent then exercisable at prices not in excess of
the Sale Price) and (B) the aggregate exercise price of all such outstanding
Options and Stock Appreciation Rights.

(d)           Substitute Awards.  The
Committee may grant Awards under the Plan in substitution for stock and stock
based awards held by employees, directors or other key persons of another
corporation in connection with the merger or consolidation of the employing
corporation with the Company or a Subsidiary or the acquisition by the Company
or a Subsidiary of property or stock of the employing corporation.  The Committee may direct that the substitute
awards be granted on such terms and conditions as the Committee considers
appropriate in the 

 

7

 

circumstances.  Any
substitute Awards granted under the Plan shall not count against the share
limitation set forth in Section 3(a).

SECTION 4.           ELIGIBILITY

Grantees under the Plan will be such full or
part-time officers and other employees, Non-Employee Directors and consultants
of the Company and its Subsidiaries as are selected from time to time by the Committee
in its sole discretion.

SECTION 5.           STOCK
OPTIONS

(a)           Any
Stock Option granted under the Plan shall be in such form as the Committee may
from time to time approve.

Stock Options granted under the Plan may be
either Incentive Stock Options or Non-Qualified Stock Options.  Incentive Stock Options may be granted only
to employees of the Company, a “parent corporation” within the meaning of
Section 424(e) of the Code or any Subsidiary that is a “subsidiary corporation”
within the meaning of Section 424(f) of the Code.  To the extent that any Option does not
qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified Stock
Option.

Stock Options granted pursuant to this
Section 5(a) shall be subject to the following terms and conditions and shall
contain such additional terms and conditions, not inconsistent with the terms
of the Plan, as the Committee shall deem desirable.

(b)           Exercise Price.  The
exercise price per share for the Stock covered by a Stock Option granted
pursuant to this Section 5 shall be determined by the Committee at the time of
grant but shall not be less than 100 percent of the Fair Market Value on the
date of grant.  In the case of an
Incentive Stock Option that is granted to a Ten Percent Owner, the option price
of such Incentive Stock Option shall be not less than 110 percent of the Fair Market
Value on the grant date.

(c)           Option Term.  The term
of each Stock Option shall be fixed by the Committee, but no Stock Option shall
be exercisable more than ten years after the date the Stock Option is granted.  In the case of an Incentive Stock Option that
is granted to a Ten Percent Owner, the term of such Stock Option shall be no
more than five years from the date of grant.

(d)           Exercisability; Rights of a Stockholder.  Stock Options shall become exercisable at
such time or times, whether or not in installments, as shall be determined by
the Committee at or after the grant date. 
The Committee may at any time accelerate the 

 

8

exercisability of all or any portion of any Stock Option.  An optionee shall have the rights of a
stockholder only as to shares acquired upon the exercise of a Stock Option and
not as to unexercised Stock Options.

(e)           Method of Exercise.  Stock
Options may be exercised in whole or in part, by giving written notice of exercise
to the Company, specifying the number of shares to be purchased.  Payment of the purchase price may be made by
one or more of the following methods to the extent provided in the Option Award
agreement:

(i)    In cash, by certified or bank check or other
instrument acceptable to the Committee;

(ii)   Through the delivery (or attestation to the
ownership) of shares of Stock that have been purchased by the optionee on the
open market or that are beneficially owned by the optionee and are not then
subject to restrictions under any Company plan. 
Such surrendered shares shall be valued at Fair Market Value on the
exercise date.  To the extent required to
avoid variable accounting treatment under FAS 123R or other applicable
accounting rules, such surrendered shares shall have been owned by the optionee
for at least six months;

(iii)  By the optionee delivering to the Company a
properly executed exercise notice together with irrevocable instructions to a
broker to promptly deliver to the Company cash or a check payable and acceptable
to the Company for the purchase price; provided that in the event the optionee
chooses to pay the purchase price as so provided, the optionee and the broker
shall comply with such procedures and enter into such agreements of indemnity
and other agreements as the Committee shall prescribe as a condition of such
payment procedure;

(iv)  By means of any cashless exercise or net
exercise procedure approved by the Committee, in its sole discretion and
permitted by applicable law; or

(v)   Any other form of consideration approved by
the Committee and permitted by applicable law, including, but not limited to
any combination of the foregoing.

Payment instruments will be received subject
to collection.  The transfer to the
optionee on the records of the Company or of the transfer agent of the shares
of Stock to be purchased pursuant to the exercise of a Stock Option will be
contingent upon receipt from the optionee (or a purchaser acting in his stead
in accordance with the provisions of the Stock Option) 

 

9

by the Company of the full
purchase price for such shares and the fulfillment of any other requirements
contained in the Option Award agreement or applicable provisions of laws
(including the satisfaction of any withholding taxes that the Company is
obligated to withhold with respect to the optionee).  In the event an optionee chooses to pay the
purchase price by previously-owned shares of Stock through the attestation
method, the number of shares of Stock transferred to the optionee upon the exercise
of the Stock Option shall be net of the number of shares attested to.

(f)            Annual Limit on Incentive Stock Options.  To the extent required for “incentive stock
option” treatment under Section 422 of the Code, the aggregate Fair Market
Value (determined as of the time of grant) of the shares of Stock with respect
to which Incentive Stock Options granted under this Plan and any other plan of the
Company or its parent and subsidiary corporations become exercisable for the
first time by an optionee during any calendar year shall not exceed $100,000.  To the extent that any Stock Option exceeds
this limit, it shall constitute a Non-Qualified Stock Option.

SECTION 6.           STOCK
APPRECIATION RIGHTS

(a)           Nature of Stock Appreciation Rights.  A Stock Appreciation Right is an Award
entitling the recipient to receive shares of Stock having a value equal to the
excess of the Fair Market Value of the Stock on the date of exercise over the
exercise price of the Stock Appreciation Right, which price shall not be less
than 100 percent of the Fair Market Value of the Stock on the date of grant (or
more than the option exercise price per share, if the Stock Appreciation Right
was granted in tandem with a Stock Option) multiplied by the number of shares
of Stock with respect to which the Stock Appreciation Right shall have been
exercised.

(b)           Grant and Exercise of Stock Appreciation Rights.  Stock Appreciation Rights may be granted by
the Committee in tandem with, or independently of, any Stock Option granted
pursuant to Section 5 of the Plan.  In the
case of a Stock Appreciation Right granted in tandem with a Non-Qualified Stock
Option, such Stock Appreciation Right may be granted either at or after the
time of the grant of such Option.  In the
case of a Stock Appreciation Right granted in tandem with an Incentive Stock
Option, such Stock Appreciation Right may be granted only at the time of the
grant of the Incentive Stock Option.

A Stock Appreciation Right or applicable
portion thereof granted in tandem with a Stock Option shall terminate and no
longer be exercisable upon the termination or exercise of the related Option.

(c)           Terms and Conditions of Stock Appreciation Rights.  Stock Appreciation Rights shall be subject to
such terms and conditions as shall be determined from time to time by the
Committee, subject to the following:

 

10

(i)    Stock Appreciation Rights granted in tandem
with Options shall be exercisable at such time or times and to the extent that
the related Stock Options shall be exercisable.

(ii)   Upon exercise of a Stock Appreciation Right,
the applicable portion of any related Option shall be surrendered.

SECTION 7.           RESTRICTED
STOCK AWARDS

(a)           Nature of Restricted Stock Awards.  A Restricted Stock Award is an Award
entitling the recipient to acquire, at such purchase price (which may be zero)
as determined by the Committee, shares of Stock subject to such restrictions
and conditions as the Committee may determine at the time of grant (“Restricted
Stock”).  Conditions may be based on
continuing employment (or other service relationship) and/or achievement of
preestablished performance goals and objectives.  The grant of a Restricted Stock Award is
contingent on the grantee executing the Restricted Stock Award agreement.  The terms and conditions of each such
agreement shall be determined by the Committee, and such terms and conditions
may differ among individual Awards and grantees.

(b)           Rights as a Stockholder. 
Upon execution of a written instrument setting forth the Restricted Stock
Award and payment of any applicable purchase price, a grantee shall have the
rights of a stockholder with respect to the voting of the Restricted Stock,
subject to such conditions contained in the written instrument evidencing the
Restricted Stock Award.  Unless the
Committee shall otherwise determine, (i) uncertificated Restricted Stock shall
be accompanied by a notation on the records of the Company or the transfer
agent to the effect that they are subject to forfeiture until such Restricted
Stock are vested as provided in Section 7(d) below, and (ii) certificated Restricted
Stock shall remain in the possession of the Company until such Restricted Stock
is vested as provided in Section 7(d) below, and the grantee shall be required,
as a condition of the grant, to deliver to the Company such instruments of
transfer as the Committee may prescribe.

(c)           Restrictions.  Restricted
Stock may not be sold, assigned, transferred, pledged or otherwise encumbered
or disposed of except as specifically provided herein or in the Restricted
Stock Award agreement.  Except as may
otherwise be provided by the Committee either in the Award agreement or,
subject to Section 16 below, in writing after the Award agreement is issued, if
a grantee’s employment (or other service relationship) with the Company and its
Subsidiaries terminates for any reason, any Restricted Stock that has not vested
at the time of termination shall automatically and without any requirement of
notice to such grantee from or other action by or on behalf of, the Company be
deemed to have been reacquired by the Company at its original purchase price
from such grantee or such grantee’s legal representative simultaneously with
such termination of employment (or other service relationship), and thereafter
shall cease to represent any ownership of the Company by the grantee or rights
of the grantee as a stockholder.  Following
such deemed reacquisition of unvested Restricted Stock that 

 

11

are represented by physical certificates, a grantee shall
surrender such certificates to the Company upon request without consideration.

(d)           Vesting of Restricted Stock. 
The Committee at the time of grant shall specify the date or dates
and/or the attainment of pre-established performance goals, objectives and
other conditions on which the nontransferability of the Restricted Stock and
the Company’s right of repurchase or forfeiture shall lapse.  Subsequent to such date or dates and/or the
attainment of such pre-established performance goals, objectives and other conditions,
the shares on which all restrictions have lapsed shall no longer be Restricted
Stock and shall be deemed “vested.” Except as may otherwise be provided by the
Committee either in the Award agreement or, subject to Section 16 below, in
writing after the Award agreement is issued, a grantee’s rights in any shares
of Restricted Stock that have not vested shall automatically terminate upon the
grantee’s termination of employment (or other service relationship) with the
Company and its Subsidiaries and such shares shall be subject to the provisions
of Section 7(c) above.

SECTION 8.           DEFERRED
STOCK AWARDS

(a)           Nature of Deferred Stock Awards.  A Deferred Stock Award is an Award of phantom
stock units to a grantee, subject to restrictions and conditions as the
Committee may determine at the time of grant. 
Conditions may be based on continuing employment (or other service
relationship) and/or achievement of pre-established performance goals and
objectives.  The grant of a Deferred
Stock Award is contingent on the grantee executing the Deferred Stock Award
agreement.  The terms and conditions of
each such agreement shall be determined by  the Committee, and such terms and conditions
may differ among individual Awards and grantees.  At the end of the deferral period, the
Deferred Stock Award, to the extent vested, shall be paid to the grantee in the
form of shares of Stock.

(b)           Election to Receive Deferred Stock Awards in Lieu of Compensation.  The Committee may, in its sole discretion,
permit a grantee to elect to receive a portion of future cash compensation
otherwise due to such grantee in the form of a Deferred Stock Award.  Any such election shall be made in writing
and shall be delivered to the Company no later than the date specified by the
Committee and in accordance with Section 409A and such other rules and
procedures established by the Committee. 
The Committee shall have the sole right to determine whether and under
what circumstances to permit such elections and to impose such limitations and
other terms and conditions thereon as the Committee deems appropriate.  Any such deferred compensation shall be
converted to a fixed number of phantom stock units based on the Fair Market
Value of Stock on the date the compensation would otherwise have been paid to
the grantee but for the deferral.

(c)           Rights as a Stockholder. 
During the deferral period, a grantee shall have no rights as a
stockholder; provided, however, that the grantee may be credited with Dividend
Equivalent Rights with respect to the phantom stock units underlying his
Deferred Stock Award, subject to such terms and conditions as the Committee may
determine.

 

12

(d)           Termination.  Except as may otherwise be provided by the
Committee either in the Award agreement or, subject to Section 16 below, in
writing after the Award agreement is issued, a grantee’s right in all Deferred
Stock Awards that have not vested shall automatically terminate upon the
grantee’s termination of employment (or cessation of service relationship) with
the Company and its Subsidiaries for any reason.

SECTION 9.           OTHER
STOCK-BASED AWARDS

(a)           Nature of Other
Stock-Based Awards.  Other
Stock-Based Awards that may be granted under the Plan include Awards that are
valued in whole or in part by reference to, or otherwise calculated by
reference to or based on, shares of Stock, including without limitation: (i)
convertible preferred stock, convertible debentures and other convertible,
exchangeable or redeemable securities or equity interests, (ii) limited
liability company interests in a Subsidiary, (iii) Awards valued by reference
to book value, fair value or Subsidiary performance, and (iv) any class of
profits interest or limited liability company interest created or issued
pursuant to the terms of a limited liability company operating agreement or
otherwise by DPA or other Subsidiary.

(b)           Calculation of Reserved
Shares.  For purposes of
calculating the number of shares of Stock underlying an Other Stock-Based Award
relative to the total number of shares of Stock reserved and available for
issuance under Section 3(a) of the Plan, the Committee shall establish in good
faith the maximum number of shares of Stock to which a grantee receiving such
Award may be entitled upon fulfillment of all applicable conditions set forth
in the relevant award documentation, including vesting conditions, limited
liability company capital account allocations, value accretion factors,
conversion ratios, exchange ratios and other similar criteria.  If and when any such conditions are no longer
capable of being met, in whole or in part, the number of shares of Stock
underlying Other Stock-Based Awards shall be reduced accordingly by the
Committee and the related shares of Stock shall be added back to the shares of
Stock otherwise available for issuance under the Plan.  Other Stock-Based Awards may be granted
either alone or in addition to other Awards granted under the Plan.  The Committee shall determine the eligible
grantees to whom, and the time or times at which, Other Stock-Based Awards
shall be made; the number of Other Stock-Based Awards to be granted; the price,
if any, to be paid by the grantee for the acquisition of such Other Stock-Based
Awards; and the restrictions and conditions applicable to such Other
Stock-Based Awards.  Conditions may be
based on continuing employment (or other service relationship), computation of
financial metrics and/or achievement of pre-established performance goals and
objectives, with related length of the service period for vesting, minimum or
maximum performance thresholds, measurement procedures and length of the
performance period to be established by the Committee at the time of grant in
its sole discretion.  The Committee may
allow Other Stock-Based Awards to be held through a limited liability company,
or similar “look-through” entity, and the Committee may require such limited
liability company or similar entity to impose restrictions on its partners or
other beneficial owners that are not inconsistent with the provisions of this
Section 9.  The provisions of the grant
of Other Stock-Based Awards need not be the same with respect to each grantee.

 

13

(c)           Restrictions on Transfer.  Awards made pursuant to this Section 9 may be
subject to transfer restrictions, with conditions and limitations as to when
Other Stock-Based Awards can be sold, assigned, transferred, pledged or
otherwise encumbered prior to the date on which any applicable vesting,
performance or deferral period lapses to be established by the Committee at the
time of grant in its sole discretion.

(d)           Dividend Equivalents.  The award agreement, other award
documentation in respect of an Other Stock- Based Award, or a separate
agreement if required by Section 409A, may provide that the recipient of an
Award under this Section 9 shall be entitled to receive, currently or on a
deferred or contingent basis, dividends or Dividend Equivalents with respect to
the number of shares of Stock underlying the Award or other distributions from
DPA prior to vesting (whether based on a period of time or based on attainment
of specified performance conditions), as determined at the time of grant by the
Committee in its sole discretion, and the Committee may provide that such
amounts (if any) shall be deemed to have been reinvested in additional shares
of Stock or otherwise reinvested.

(e)           Consideration.  Other Stock-Based Awards granted under this
Section 9 may be issued for no cash consideration.

SECTION 10.         DIVIDEND
EQUIVALENT RIGHTS

(a)           Dividend Equivalent Rights.  A Dividend Equivalent Right is an Award
entitling the grantee to receive credits based on cash dividends that would
have been paid on the shares of Stock specified in the Dividend Equivalent
Right (or other award to which it relates) if such shares had been issued to
and held by the grantee.  A Dividend
Equivalent Right may be granted hereunder to any grantee as a component of
another Award or as a freestanding award. 
The terms and conditions of Dividend Equivalent Rights shall be
specified in the Award agreement. 
Dividend equivalents credited to the holder of a Dividend Equivalent
Right may be paid currently or may be deemed to be reinvested in additional
shares of Stock, which may thereafter accrue additional equivalents.  Any such reinvestment shall be at Fair Market
Value on the date of reinvestment or such other price as may then apply under a
dividend reinvestment plan sponsored by the Company, if any.  Dividend Equivalent Rights may be settled in
cash or shares of Stock or a combination thereof, in a single installment or
installments.  A Dividend Equivalent
Right granted as a component of another Award may provide that such Dividend
Equivalent Right shall be settled upon exercise, settlement, or payment of, or
lapse of restrictions on, such other award, and that such Dividend Equivalent
Right shall expire or be forfeited or annulled under the same conditions as
such other award.  A Dividend Equivalent
Right granted as a component of another Award may also contain terms and
conditions different from such other award.

(b)           Interest Equivalents.  Any Award under this Plan that is settled in
whole or in part in cash on a deferred basis may provide in the grant for
interest equivalents to be 

 

14

credited
with respect to such cash payment. 
Interest equivalents may be compounded and shall be paid upon such terms
and conditions as may be specified by the grant.

(c)           Termination.  Except as may otherwise be provided by the
Committee either in the Award agreement or, subject to Section 16 below, in
writing after the Award agreement is issued, a grantee’s rights in all Dividend
Equivalent Rights or interest equivalents granted as a component of another
Award that has not vested shall automatically terminate upon the grantee’s
termination of employment (or cessation of service relationship) with the
Company and its Subsidiaries for any reason.

SECTION 11.         PERFORMANCE-BASED
AWARDS TO COVERED EMPLOYEES

(a)           Performance-based Awards.  Any Covered Employee providing services to
the Company and who is selected by the Committee may be granted one or more
Performance-based Awards in the form of a Restricted Stock Award, Deferred
Stock Award or Other Stock-based Award payable upon the attainment of
Performance Goals that are established by the Committee and relate to one or
more of the Performance Criteria, in each case on a specified date or dates or
over any period or periods determined by the Committee.  The Committee shall define in an objective
fashion the manner of calculating the Performance Criteria it selects to use
for any Performance Period.  Depending on
the Performance Criteria used to establish such Performance Goals, the
Performance Goals may be expressed in terms of overall Company performance or
the performance of a division, business unit, or an individual.  The Committee, in its discretion, may adjust
or modify the calculation of Performance Goals for such Performance Period in
order to prevent the dilution or enlargement of the rights of an individual (i)
in the event of, or in anticipation of, any unusual or extraordinary corporate
item, transaction, event or development, or (ii) in recognition of, or in
anticipation of, any other unusual or nonrecurring events affecting the
Company, or the financial statements of the Company, or (iii) in response to,
or in anticipation of, changes in applicable laws, regulations, accounting
principles, or business conditions provided however, that the Committee may not
exercise such discretion in a manner that would increase the Performance-based
Award granted to a Covered Employee in a manner that would be inconsistent with
the requirements of Section 162(m) of the Code. 
Each Performance-based Award shall comply with the provisions set forth
below.

(b)           Grant of Performance-based
Awards.  With respect to each
Performance-based Award granted to a Covered Employee, the Committee shall
select, within the first 90 days of a Performance Cycle (or, if shorter, within
the maximum period allowed under Section 162(m) of the Code) the Performance
Criteria for such grant, and the Performance Goals with respect to each
Performance Criterion (including a threshold level of performance below which
no amount will become payable with respect to such Award).  Each Performance-based Award will specify the
amount payable, or the formula for determining the amount payable, upon
achievement of the various applicable performance targets.  The Performance Criteria established by the
Committee may be (but need not be) different for each Performance Cycle and
different Performance Goals may be applicable to Performance-based Awards to
different Covered Employees.

(c)           Payment of Performance-based
Awards.  Following the
completion of a Performance Cycle, the Committee shall meet to review and
certify in writing whether, and to what extent, the Performance Goals for the
Performance Cycle have been achieved and, if so, to also calculate and certify
in writing the amount of the Performance-based Awards earned for the
Performance Cycle.  The Committee shall
then determine the actual size of each Covered Employee’s Performance-based
Award, and, in doing so, may reduce or eliminate the amount of the
Performance-based Award for a Covered Employee if, in its sole judgment, such
reduction or elimination is appropriate.

 

15

(d)           Maximum Award Payable.  The maximum Performance-based Award payable
to any one Covered Employee under the Plan for a Performance Cycle is one-half
of the total number of shares of Stock authorized to be issued under this Plan,
as adjusted in accordance with Section 3(b).

SECTION 12.         TRANSFERABILITY
OF AWARDS

(a)           Transferability.  Except as provided in Section 12(b) below,
during a grantee’s lifetime, his or her Awards shall be exercisable only by the
grantee, or by the grantee’s legal representative or guardian in the event of
the grantee’s incapacity.  No Awards
shall be sold, assigned, transferred or otherwise encumbered or disposed of by
a grantee other than by will or by the laws of descent and distribution.  No Awards shall be subject, in whole or in
part, to attachment, execution, or levy of any kind, and any purported transfer
in violation hereof shall be null and void.

(b)           Committee Action.  Notwithstanding Section 12(a), the Committee,
in its discretion, may provide either in the Award agreement regarding a given
Award or by subsequent written approval that the grantee (who is an employee or
director) may transfer his or her Awards (other than any Incentive Stock
Options) to his or her immediate family members, to trusts for the benefit of
such family members, or to partnerships in which such family members are the
only partners, provided that the transferee agrees in writing with the Company
to be bound by all of the terms and conditions of this Plan and the applicable
Award.

(c)           Family Member.  For purposes of Section 12(b), “family member”
shall mean a grantee’s child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, former spouse, sibling, niece, nephew, mother-inlaw,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
including adoptive relationships, any person sharing the grantee’s household
(other than a tenant of the grantee), a trust in which these persons (or the
grantee) have more than 50 percent of the beneficial interest, a foundation in
which these persons (or the grantee) control the management of assets, and any
other entity in which these persons (or the grantee) own more than 50 percent
of the voting interests.

 

16

(d)           Designation of Beneficiary.  Each grantee to whom an Award has been made
under the Plan may designate a beneficiary or beneficiaries to exercise any
Award or receive any payment under any Award payable on or after the grantee’s
death.  Any such designation shall be on
a form provided for that purpose by the Committee and shall not be effective
until received by the Committee.  If no
beneficiary has been designated by a deceased grantee, or if the designated
beneficiaries have predeceased the grantee, the beneficiary shall be the
grantee’s estate.

SECTION 13.         TAX
WITHHOLDING

(a)           Payment by Grantee.  Each grantee shall, no later than the date as
of which the value of an Award or of any Stock or other amounts received
thereunder first becomes includable in the gross income of the grantee for
Federal income tax purposes, pay to the Company, or make arrangements satisfactory
to the Committee regarding payment of, any Federal, state, or local taxes of
any kind required by law to be withheld by the Company with respect to such
income.  The Company and its Subsidiaries
shall, to the extent permitted by law, have the right to deduct any such taxes
from any payment of any kind otherwise due to the grantee.  The Company’s obligation to deliver evidence
of book entry (or stock certificates) to any grantee is subject to and
conditioned on tax withholding obligations being satisfied by the grantee.

(b)           Payment in Stock.  Subject to approval by the Committee, a
grantee may elect to have the Company’s minimum required tax withholding
obligation satisfied, in whole or in part, by (i) authorizing the Company to
withhold from shares of Stock to be issued pursuant to any Award a number of
shares with an aggregate Fair Market Value (as of the date the withholding is
effected) that would satisfy the minimum withholding amount due, or (ii)
transferring to the Company shares of Stock owned by the grantee with an
aggregate Fair Market Value (as of the date the withholding is effected) that
would satisfy the minimum withholding amount due.

SECTION 14.         ADDITIONAL
CONDITIONS APPLICABLE TO NONQUALIFIED DEFERRED COMPENSATION UNDER SECTION 409A.

In the event any Stock Option or Stock Appreciation Right under the
Plan is materially modified and deemed a new grant at a time when the Fair
Market Value exceeds the exercise price, or any other Award is otherwise
determined to constitute “nonqualified deferred compensation” within the
meaning of Section 409A (a “409A Award”), the following additional conditions
shall apply and shall supersede any contrary provisions of this Plan or the
terms of any agreement relating to such 409A Award.

(a)           Exercise and Distribution.  Except as provided in Section 14(b) hereof,
no 409A Award shall be exercisable or distributable earlier than upon one of
the following:

 

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(i)    Specified Time.  A
specified time or a fixed schedule set forth in the written instrument
evidencing the 409A Award.

(ii)   Separation from Service. 
Separation from service (within the meaning of Section 409A) by the 409A
Award grantee; provided, however, that if the 409A Award grantee is a “key
employee” (as defined in Section 416(i) of the Code without regard to paragraph
(5) thereof) and any of the Company’s Stock is publicly traded on an
established securities market or otherwise, exercise or distribution under this
Section 14(a)(ii) may not be made before the date that is six months after the
date of separation from service.

(iii)  Death.  The date of
death of the 409A Award grantee.

(iv)  Disability.  The date
the 409A Award grantee becomes disabled (within the meaning of Section
14(c)(ii) hereof).

(v)   Unforeseeable Emergency. 
The occurrence of an unforeseeable emergency (within the meaning of
Section 14(c)(iii) hereof), but only if the net value (after payment of the
exercise price) of the number of shares of Stock that become issuable does not
exceed the amounts necessary to satisfy such emergency plus amounts necessary
to pay taxes reasonably anticipated as a result of the exercise, after taking
into account the extent to which the emergency is or may be relieved through
reimbursement or compensation by insurance or otherwise or by liquidation of
the grantee’s other assets (to the extent such liquidation would not itself
cause severe financial hardship).

(vi)  Change in Control Event. 
The occurrence of a Change in Control Event (within the meaning of Section
14(c)(i) hereof), including the Company’s discretionary exercise of the right
to accelerate vesting of such grant upon a Change in Control Event or to
terminate the Plan or any 409A Award granted hereunder within 12 months of the
Change in Control Event to the extent permitted by Section 409A.

(b)           No Acceleration.  A 409A Award may not be settled or exercised
prior to the time specified in Section 14(a) hereof, except in the case of one
of the following events:

(i)    Domestic Relations Order. 
The 409A Award may permit the acceleration of the exercise or
distribution time or schedule to an individual other than the grantee as may be
necessary to comply with the terms of a domestic relations order (as defined in
Section 414(p)(1)(B) of the Code).

 

18

(ii)   Conflicts of Interest. 
The 409A Award may permit the acceleration of the exercise or
distribution time or schedule as may be necessary to comply with the terms of a
certificate of divestiture (as defined in Section 1043(b)(2) of the Code).

(iii)  Change in Control Event. 
The Committee may exercise the discretionary right to accelerate the
vesting of such 409A Award upon a Change in Control Event or to terminate the
Plan or any 409A Award granted thereunder within 12 months of the Change in
Control Event and cancel the 409A Award for compensation to the extent
permitted by Section 409A.

(c)           Definitions.  Solely for purposes of this Section 14 and
not for other purposes of the Plan, the following terms shall be defined as set
forth below:

(i)    “Change
in Control Event” means the occurrence of a change in the ownership of the
Company, a change in effective control of the Company, or a change in the
ownership of a substantial portion of the assets of the Company (as defined in
the most recent authoritative guidance (as determined by the Committee in good
faith) from the Department of the Treasury).

(ii)   “Disabled”
means a grantee who (i) is unable to engage in any substantial gainful activity
by reason of any medically determinable physical or mental impairment that can
be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, or (ii) is, by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than
three months under an accident and health plan covering employees of the Company
or its Subsidiaries.

(iii)  “Unforeseeable
Emergency” means a severe financial hardship to the grantee resulting from an
illness or accident of the grantee, the grantee’s spouse, or a dependent (as
defined in Section 152(a) of the Code) of the grantee, loss of the grantee’s
property due to casualty, or similar extraordinary and unforeseeable
circumstances arising as a result of events beyond the control of the grantee.

SECTION 15.         TRANSFER,
LEAVE OF ABSENCE, ETC.

For purposes of the Plan, the following events shall not be deemed a
termination of employment:

 

19

(a)           a transfer to the employment of the
Company from a Subsidiary or from the Company to a Subsidiary, or from one
Subsidiary to another; or

(b)           an approved leave of absence for
military service or sickness, or for any other purpose approved by the Company,
if the employee’s right to re-employment is guaranteed either by a statute or
by contract or under the policy pursuant to which the leave of absence was
granted or if the Committee otherwise so provides in writing.

SECTION 16.         AMENDMENTS
AND TERMINATION

The Board may, at any time, amend or discontinue the Plan and the
Committee may, at any time, amend or cancel any outstanding Award for the
purpose of satisfying changes in law or for any other lawful purpose, but no
such action shall adversely affect rights under any outstanding Award without
the holder’s consent.  The Committee may
exercise its discretion to reduce the exercise price of outstanding Stock
Options or Stock Appreciation Rights or effect repricing through cancellation
and re-grants without approval of stockholders. To the extent required by any
applicable law or stock exchange rules, any material Plan amendments shall be
subject to approval by the Company stockholders entitled to vote at a meeting
of stockholders.

SECTION 17.         STATUS OF
PLAN

With respect to the portion of any Award that has not been exercised
and any payments in cash, Stock or other consideration not received by a
grantee, a grantee shall have no rights greater than those of a general
creditor of the Company unless the Committee shall otherwise expressly
determine in connection with any Award or Awards.  In its sole discretion, the Committee may
authorize the creation of trusts or other arrangements to meet the Company’s
obligations to deliver Stock or make payments with respect to Awards hereunder,
provided that the existence of such trusts or other arrangements is consistent
with the foregoing sentence.

SECTION 18.         GENERAL
PROVISIONS

(a)           No Distribution;
Compliance with Legal Requirements. 
The Committee may require each person acquiring Stock pursuant to an
Award to represent to and agree with the Company in writing that such person is
acquiring the shares without a view to distribution thereof.

No shares of Stock shall be issued pursuant to an Award until all
applicable securities law and other legal and stock exchange or similar
requirements have been satisfied.  The
Committee may require the placing of such stop-orders and restrictive legends
on certificates for Stock and Awards as it deems appropriate.

 

20

(b)           Delivery of Stock
Certificates.  Stock
certificates to grantees under this Plan shall be deemed delivered for all purposes
when the Company or a stock transfer agent of the Company shall have mailed
such certificates in the United States mail, addressed to the grantee, at the
grantee’s last known address on file with the Company.  Uncertificated Stock shall be deemed delivered
for all purposes when the Company or a Stock transfer agent of the Company
shall have given to the grantee by electronic mail (with proof of receipt) or
by United States mail, addressed to the grantee, at the grantee’s last known
address on file with the Company, notice of issuance and recorded the issuance
in its records (which may include electronic “book entry” records).

(c)           Other Compensation
Arrangements; No Employment Rights. 
Nothing contained in this Plan shall prevent the Board from adopting
other or additional compensation arrangements, including trusts, and such
arrangements may be either generally applicable or applicable only in specific
cases.  The adoption of this Plan and the
grant of Awards do not confer upon any employee any right to continued
employment with the Company or any Subsidiary.

(d)           Trading Policy
Restrictions.  Option
exercises and other Awards under the Plan shall be subject to such Company’s
insider trading policy and procedures, as in effect from time to time.

(e)           Forfeiture of Awards under
Sarbanes-Oxley Act.  If the
Company is required to prepare an accounting restatement due to the material
noncompliance of the Company, as a result of misconduct, with any financial
reporting requirement under the securities laws, then any grantee who is one of
the individuals subject to automatic forfeiture under Section 304 of the
Sarbanes-Oxley Act of 2002 shall reimburse the Company for the amount of any
Award received by such individual under the Plan during the 12-month period following
the first public issuance or filing with the United States Securities and
Exchange Commission, as the case may be, of the financial document embodying
such financial reporting requirement.

(f)            Section 409A.  If any distribution or settlement of an Award
pursuant to the terms of this Plan or an Award agreement would subject a
grantee to tax under Section 409A, the Company shall modify the Plan or
applicable Award agreement in the least restrictive reasonable manner (as
determined by the Committee in good faith) necessary in order to comply with
the provisions of Section 409A, other applicable provisions of the Code and/or
any rules, regulations or other regulatory guidance issued under such statutory
provisions.

 

21

 

SECTION 19.         EFFECTIVE
DATE OF PLAN

This Plan was adopted by the Board on September 10, 2007 and was
approved by the stockholders on September 10, 2007.  No grants will be made under the Plan after
the tenth anniversary of the Effective Date.

SECTION 20.         GOVERNING
LAW

THIS PLAN AND ALL AWARDS AND ACTIONS TAKEN
THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES
THEREOF (OTHER THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK).

 

22

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