Document:

Unassociated Document

    

    Exhibit
10.4

     

    GARMIN
LTD.

     

    EMPLOYEE
STOCK PURCHASE PLAN

    

    as
Amended and Restated on June 27, 2010

    

    TABLE OF
CONTENTS

     

    
      
        	 
      	 
      	
                Page

              
	 
      	 
      	 
      
	
                I.

              	
                Purpose
      and Effective Date

              	
                1

              
	
                II.

              	
                Definitions

              	
                1

              
	
                III.

              	
                Administration

              	
                4

              
	
                IV.

              	
                Number
      of Shares

              	
                5

              
	
                V.

              	
                Eligibility
      Requirements

              	
                6

              
	
                VI.

              	
                Enrollment

              	
                7

              
	
                VII.

              	
                Grant
      of Options on Enrollment

              	
                7

              
	
                VIII.

              	
                Payroll
      Deductions

              	
                8

              
	
                IX.

              	
                Purchase
      of Shares

              	
                9

              
	
                X.

              	
                Withdrawal
      From the Plan; Termination of Employment; Leave of Absence;
      Death

              	
                11

              
	
                XI.

              	
                Miscellaneous

              	
                12

              

      

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    GARMIN
LTD.

    EMPLOYEE
STOCK PURCHASE PLAN

    (as
Amended and Restated on June 27, 2010)

    

    
      I.    
Purpose and Effective
Date

    

    

    1.1                   The
purpose of the Garmin Ltd. Employee Stock Purchase Plan is to provide an
opportunity for eligible employees to acquire a proprietary interest in Garmin
Ltd. through accumulated payroll deductions.  It is the intent of the
Company to have the Plan qualify as an "employee stock purchase plan" under
Section 423 of the Code.  The provisions of the Plan shall be
construed to extend and limit participation in a manner consistent with the
requirements of Section 423 of the Code.

    

    1.2                   The
Plan was initially approved by the board of directors of Garmin Ltd., a company
incorporated in the Cayman Islands (“Garmin Cayman”), on October 20, 2000 and
approved by Garmin Cayman’s stockholders on October 24, 2000.  The
Plan was amended and restated  as of January 1, 2010 and again as of
June 27, 2010 following the redomestication transaction on June 27, 2010
pursuant to which the shares of Garmin Cayman were exchanged for shares of the
Company and the Company became the public holding company of Garmin Cayman and
its subsidiaries.. No option shall be granted under the Plan after the date as
of which the Plan is terminated by the Board in accordance with Section 11.7 of
the Plan.

    

    
      II.   
 Definitions

    

    

    The following words and phrases, when
used in this Plan, unless their context clearly indicates otherwise, shall have
the following respective meanings:

    

    2.1          "Account"
means a recordkeeping account maintained for a Participant to which payroll
deductions are credited in accordance with Article VIII of the
Plan.

    

    2.2          "Administrator"
means the persons or committee appointed under Section 3.1 to administer the
Plan.

    

    2.3          "Article"
means an Article of this Plan.

    

    2.4          "Accumulation
Period" means, as to the Company or a Participating Subsidiary, a period of six
months commencing with the first regular payroll period commencing on or after
each successive January 1 and ending on each successive June 30 and a period of
six months commencing with the first regular payroll period commencing on or
after each successive July 1 and ending on each successive December
31.  The Committee may modify (including increasing or decreasing the
length of time covered) or suspend Accumulation Periods at anytime and from time
to time.

    

    2.5          "Base
Earnings" means base salary and wages payable by the Company or a Participating
Subsidiary to an Eligible Employee, prior to pre-tax deductions for
contributions to qualified or non-qualified (under the Code) benefit plans or
arrangements, and excluding bonuses, incentives and overtime pay but including
commissions.

    
      
         

      

      
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    2.6          "Board"
means the Board of Directors of the Company.

    

    2.7          "Code"
means the Internal Revenue Code of 1986, as amended.

    

    2.8          "Company"
means Garmin Ltd., a Swiss corporation.

    

    2.9          "Cut-Off
Date" means the date established by the Administrator from time to time by which
enrollment forms must be received with respect to an Accumulation
Period.

    

    2.10        "Eligible
Employee" means an Employee, including an employee on an Authorized Leave of
Absence (as defined in Section 10.3), eligible to participate in the Plan in
accordance with Article V.

    

    2.11        "Employee"
means an individual who performs services for the Company or a Participating
Subsidiary pursuant to an employment relationship described in Treasury
Regulations Section 31.3401(c)-1 or any successor provision, or an individual
who would be performing such services but for such individual’s Authorized Leave
of Absence (as defined in Section 10.3).

    

    2.12        "Enrollment
Date" means the first Trading Day of an Accumulation Period beginning on or
after January 1, 2000.

    

    2.13        "Exchange
Act" means the Securities Exchange Act of 1934.

    

    2.14        "Fair
Market Value" means, as of any applicable date:

    

    (a)           If
the security is listed on any established stock exchange or traded on the Nasdaq
Global Select Market or the Nasdaq Global Market (formerly the Nasdaq National
Market), the closing price, regular way, of the security on such exchange, or if
no such reported sale of the security shall have occurred on such date, on the
latest preceding date on which there was such a reported sale, in all cases, as
reported in The Wall Street Journal or such other source as the Board deems
reliable.

    

    (b)           If
the security is listed or traded on the Nasdaq Capital Market (formerly the
Nasdaq SmallCap Market), the mean between the bid and asked prices for the
security on the date of determination, as reported in The Wall Street Journal or
such other source as the Board deems reliable. Unless otherwise provided by the
Board, if there is no closing sales price (or closing bid if no sales were
reported) for the security on the date of determination, then the Fair Market
Value shall be the mean between the bid and asked prices for the security on the
last preceding date for which such quotation exists.

    

    (c)           In
the absence of such markets for the security, the value determined by the Board
in good faith.

    

    2.15        "Participant"
means an Eligible Employee who has enrolled in the Plan pursuant to Article
VI.  A Participant shall remain a Participant until the applicable
date set forth in Article X.

    
      
         

      

      
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    2.16        "Participating
Subsidiary" means a Subsidiary incorporated under the laws of any state in the
United States, a territory of the United States, Puerto Rico, or the District of
Columbia, or such foreign Subsidiary approved under Section 3.3, which has
adopted the Plan as a Participating Subsidiary by action of its board of
directors and which has been designated by the Board in accordance with Section
3.3 as covered by the Plan, subject to the requirements of Section 423 of the
Code except as noted in Section 3.3.

    

    2.17        "Plan"
means the Garmin Ltd. Employee Stock Purchase Plan, as amended
on  January 1, 2010 and on June 27, 2010, as set forth herein and as
from time to time amended.

    

    2.18        "Purchase
Date" means the specific Trading Day during an Accumulation Period on which
Shares are purchased under the Plan in accordance with Article
IX.  For each Accumulation Period, the Purchase Date shall be the last
Trading Day occurring in such Accumulation Period.  The Administrator
may, in its discretion, designate a different Purchase Date with respect to any
Accumulation Period.

    

    2.19        "Qualified
Military Leave” means an absence due to service in the uniformed services of the
United States (as defined in Chapter 43 of Title 38 of the United States Code)
by an individual employee of the Company or a Participating Subsidiary, provided
the individual’s rights to reemployment under the Uniformed Services Employment
and Reemployment Rights Act of 1994 have not expired or terminated.

    

    2.20        "Section"
means a section of this Plan, unless indicated otherwise.

    

    2.21        "Securities
Act" means the Securities Act of 1933, as amended.

    

    2.22        "Share"
means a share, CHF 10 par value, of Garmin Ltd.

    

    2.23        "Subsidiary"
means any corporation in an unbroken chain of corporations beginning with the
Company if, as of the applicable Enrollment Date, each of the corporations other
than the last corporation in the chain owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other
corporations in the chain.

    

    2.24        "Trading
Day" means a day the national exchange on which the Shares are listed for
trading or, if not so listed, a day the New York Stock Exchange is open for
trading.

    

    III.      Administration

    

    3.1           Subject
to Section 11.7, the Plan shall be administered by the Board, or committee
("Committee") appointed by the Board.  The Committee shall consist of
at least one Board member, but may additionally consist of individuals who are
not members of the Board.  The Committee shall serve at the pleasure
of the Board.  If the Board does not so appoint a Committee, the Board
shall administer the Plan.  Any references herein to "Administrator"
are, except as the context requires otherwise, references to the Board or the
Committee, as applicable.

    
      
         

      

      
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    3.2           If
appointed under Section 3.1, the Committee may select one of its members as
chairman and may appoint a secretary.  The Committee shall make such
rules and regulations for the conduct of its business as it shall deem
advisable; provided, however, that all determinations of the Committee shall be
made by a majority of its members.

    

    3.3           The
Administrator shall have the power, in addition to the powers set forth
elsewhere in the Plan, and subject to and within the limits of the express
provisions of the Plan, to construe and interpret the Plan and options granted
under it; to establish, amend and revoke rules and regulations for
administration of the Plan; to determine all questions of policy and expediency
that may arise in the administration of the Plan; to allocate and delegate such
of its powers as it deems desirable to facilitate the administration and
operation of the Plan; and, generally, to exercise such powers and perform such
acts as it deems necessary or expedient to promote the best interests of the
Company.  The Administrator's determinations as to the interpretation
and operation of this Plan shall be final and conclusive.

    

    The Board
may designate from time to time which Subsidiaries of the Company shall be
Participating Subsidiaries.  Without amending the Plan, the Board may
adopt special or different rules for the operation of the Plan which allow
employees of any foreign Subsidiary to participate in the purposes of the
Plan.  In furtherance of such purposes, the Board may approve such
modifications, procedures, rules or sub-plans as it deems necessary or
desirable, including those deemed necessary or desirable to comply with any
foreign laws or to realize tax benefits under foreign law.  Any such
different or special rules for employees of any foreign Subsidiary shall not be
subject to Code Section 423 and for purposes of the Code shall be treated as
separate and apart from the balance of the Plan.

    

    3.4           This
Article III relating to the administration of the Plan may be amended by the
Board from time to time as may be desirable to satisfy any requirements of or
under the federal securities and/or other applicable laws of the United States,
or to obtain any exemption under such laws.

    

    IV.    Number of
Shares

    

    4.1           Four
million (4,000,000) Shares are reserved for sales and authorized for issuance
pursuant to the Plan.  Shares sold under the Plan may be newly-issued
Shares, outstanding Shares reacquired in private transactions or open market
purchases, or any combination of the foregoing.  If any option granted
under the Plan shall for any reason terminate without having been exercised, the
Shares not purchased under such option shall again become available for the
Plan.

    

    4.2           In
the event of any reorganization, recapitalization, stock split, stock dividend,
combination of shares, merger, consolidation, acquisition of property or shares,
separation, asset spin-off, stock rights offering, liquidation or other similar
change in the capital structure of the Company, the Board shall make such
adjustment, if any, as it deems appropriate in the number, kind and purchase
price of the Shares available for purchase under the Plan.  In the
event that, at a time when options are outstanding hereunder, there occurs a
dissolution or liquidation of the Company, except pursuant to a transaction to
which Section 424(a) of the Code applies, each option to purchase Shares shall
terminate, but the Participant holding such option shall have the right to
exercise his or her option prior to such termination of the option upon the
dissolution or liquidation.  The Company reserves the right to reduce
the number of Shares which Employees may purchase pursuant to their enrollment
in the Plan.

    
      
         

      

      
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    V.    Eligibility
Requirements

    

    5.1           Except
as provided in Section 5.2, each individual who is an Eligible Employee of the
Company or a Participating Subsidiary on the applicable Cut-Off Date shall
become eligible to participate in the Plan in accordance with Article VI as of
the first Enrollment Date following the date the individual becomes an Employee
of the Company or a Participating Subsidiary, provided that the individual
remains an Eligible Employee on the first day of the Accumulation Period
associated with such Enrollment Date.  Participation in the Plan is
entirely voluntary.

    

    5.2           Employees
meeting any of the following restrictions are not eligible to participate in the
Plan:

    

     (a)  Employees
who, immediately upon enrollment in the Plan or upon grant of an Option would
own directly or indirectly, or hold options or rights to acquire, an aggregate
of 5% or more of the total combined voting power or value of all outstanding
shares of all classes of stock of the Company or any Subsidiary (and for
purposes of this paragraph, the rules of Code Section 424(d) shall apply, and
stock which the Employee may purchase under outstanding options shall be treated
as stock owned by the Employee);

    

     (b)           Employees
(other than individuals on Authorized Leave of Absence (as defined in Section
10.3)) who are customarily employed by the Company or a Participating Subsidiary
for not more than 20 hours per week; or

    

     (c)           Employees
(other than individuals on Authorized Leave of Absence (as defined in Section
10.3)) who are customarily employed by the Company or a Participating Subsidiary
for not more than five (5) months in any calendar year.

    

    5.3           The
Plan is intended to conform to the extent necessary with all provisions of the
Securities Act and the Exchange Act and any and all regulations and rules
promulgated by the Securities and Exchange Commission
thereunder.  Notwithstanding anything herein to the contrary, the Plan
shall be administered, and the options shall be granted and may be exercised,
only in such a manner as to conform to such laws, rules and
regulations.  To the extent permitted by applicable law, the Plan and
the options granted hereunder shall be deemed amended to the extent necessary to
conform to such laws, rules and regulations.

    
      
         

      

      
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    VI.    Enrollment

    

    6.1           Eligible
Employees will be automatically enrolled in the Plan on the first day of each
Accumulation Period.  Any Eligible Employee may consent to enrollment
in the Plan for an Accumulation Period by completing and signing an enrollment
form (which authorizes payroll deductions during such Accumulation Period in
accordance with Section 8.1) and submitting such enrollment form to the Company
or the Participating Subsidiary on or before the Cut-Off Date specified by the
Administrator.  Payroll deductions pursuant to the enrollment form
shall be effective as of the first payroll period with a pay day after the
Enrollment Date for the Accumulation Period to which the enrollment form
relates, and shall continue in effect until the earliest of:

    

    (a)           the
end of the last payroll period with a payday in the Accumulation
Period;

    

    (b)           the
date during the Accumulation Period as of which the Employee elects to cease his
or her enrollment in accordance with Section 8.3; and

    

    (c)           the
date during the Accumulation Period as of which the Employee withdraws from the
Plan or has a termination of employment in accordance with Article
X.

    

    VII.   Grant of Options on
Enrollment

    

    7.1           The
automatic enrollment by an Eligible Employee in the Plan as of an Enrollment
Date will constitute the grant as of such Enrollment Date by the Company to such
Participant of an option to purchase Shares from the Company pursuant to the
Plan.

    

    7.2           An
option granted to a Participant pursuant to this Plan shall expire, if not
terminated earlier for any reason, on the earliest to occur
of:  (a) the end of the Purchase Date with respect to the
Accumulation Period in which such option was granted; (b) the completion of
the purchase of Shares under the option under Article IX; or (c) the date
on which participation of such Participant in the Plan terminates for any
reason.

    

    7.3           As
of each Enrollment Date, each Participant shall automatically be granted an
option to purchase a maximum number of Shares, subject to the terms of the Plan,
equal to the quotient of $25,000 divided by the Fair Market Value of a Share on
the Enrollment Date.

    

    7.4           Notwithstanding
any other provision of this Plan, no Employee may be granted an option which
permits his or her rights to purchase Shares under the Plan and any other Code
Section 423 employee stock purchase plan of the Company or any of its
Subsidiaries or parent companies to accrue (when the option first becomes
exercisable) at a rate which exceeds $25,000 of Fair Market Value of such Shares
(determined at the time such option is granted) for each calendar year in which
such option is outstanding at any time.  For purposes of administering
this accrual limitation, the Administrator shall limit purchases under the Plan
as follows:

    
      
         

      

      
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    (a)           The
number of Shares that may be purchasable by an Employee during his or her first
Accumulation Period during a calendar year may not exceed a number of Shares
determined by dividing $25,000 by the Fair Market Value of a Share on the
Enrollment Date for that Accumulation Period.

    

    (b)           The
number of Shares that may be purchasable by an Employee during any subsequent
Accumulation Period during the same calendar year (if any) shall not exceed the
number of Shares determined by performing the calculation below:

    

    (i)           First,
the number of Shares purchased by the Employee during any previous Accumulation
Period during the same calendar year shall be multiplied by the Fair Market
Value of a Share on the Enrollment Date of such previous Accumulation
Period.

    

    (ii)          Second,
the amount determined under (i) above shall be subtracted from
$25,000.

     

    (iii)         Third,
the amount determined under (ii) above shall be divided by the Fair Market Value
of a Share on the Enrollment Date for such subsequent Accumulation Period (for
which the maximum number of Shares purchasable is being determined by this
calculation) occurs.  The quotient thus obtained shall be the maximum
number of Shares that may be purchased by any Employee for such subsequent
Accumulation Period.

    

    VIII.     Payroll
Deductions

    

    8.1           An
Employee who files an enrollment form pursuant to Article VI shall elect and
authorize in such form to have deductions made from his or her pay on each
payday he or she receives a paycheck during the Accumulation Period to which the
enrollment form relates, and he or she shall designate in such form the
percentage (in whole percentages) of Base Earnings to be deducted each payday
during such Accumulation Period.  The minimum an Employee may elect
and authorize to have deducted is 1% of his or her Base Earnings paid per pay
period in such Accumulation Period, and the maximum is 10% of his or her Base
Earnings paid per pay period in such Accumulation Period (or such larger or
smaller percentage as the Administrator may designate from time to
time).

    

    8.2           Except
as provided in the last paragraph of Section 6.1, deductions from a
Participant’s Base Earnings shall commence upon the first payday on or after the
commencement of the Accumulation Period, and shall continue until the date on
which such authorization ceases to be effective in accordance with Article
VI.  The amount of each deduction made for a Participant shall be
credited to the Participant’s Account.  All payroll deductions
received or held by the Company or a Participating Subsidiary may be, but are
not required to be, used by the Company or Participating Subsidiary for any
corporate purpose, and the Company or Participating Subsidiary shall not be
obligated to segregate such payroll deductions, but may do so at the discretion
of the Board.

    
      
         

      

      
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    8.3           As
of the last day of any month during an Accumulation Period, a Participant may
elect to cease (but not to increase or decrease) payroll deductions made on his
or her behalf for the remainder of such Accumulation Period by filing the
applicable election with the Company or Participating Subsidiary in such form
and manner and at such time as may be permitted by the
Administrator.  A Participant who has ceased payroll deductions may
have the amount which was credited to his or her Account prior to such cessation
applied to the purchase of Shares as of the Purchase Date, in accordance with
Section 9.1, and receive the balance of the Account with respect to which the
enrollment is ceased, if any, in cash.  A Participant who has ceased
payroll deductions may also voluntarily withdraw from the Plan pursuant to
Section 10.1.  Any Participant who ceases payroll deductions for an
Accumulation Period may re-enroll in the Plan on the next subsequent Enrollment
Date following the cessation in accordance with the provisions of Article
VI.  A Participant who ceases to be employed by the Company or any
Participating Subsidiary will cease to be a Participant in accordance with
Section 10.2.

    

    8.4           A
Participant may not make any separate or additional contributions to his Account
under the Plan.  Neither the Company nor any Participating Subsidiary
shall make separate or additional contributions to any Participant’s Account
under the Plan.

    

    IX.    Purchase of
Shares

    

    9.1           Subject
to Section 9.2, any option held by the Participant which was granted under this
Plan and which remains outstanding as of a Purchase Date shall be deemed to have
been exercised on such Purchase Date for the purchase of the number of whole
Shares which the funds accumulated in his or her Account as of the Purchase Date
will purchase at the applicable purchase price (but not in excess of the number
of Shares for which options have been granted to the Participant pursuant to
Section 7.3).  No Shares will be purchased on behalf of any
Participant who fails to file an enrollment form authorizing payroll deductions
for an Accumulation Period.

    

    9.2           A
Participant who holds an outstanding option as of a Purchase Date shall not be
deemed to have exercised such option if the Participant elected not to exercise
the option by withdrawing from the Plan in accordance with Section
10.1.

    

    9.3           If,
after a Participant’s exercise of an option under Section 9.1, an amount remains
credited to the Participant’s Account as of a Purchase Date, then the remaining
amount shall be distributed to the Participant in cash as soon as
administratively practical after such Purchase Date.

    

    9.4           Except
as otherwise set forth in this Section 9.4, the purchase price for each Share
purchased under any option shall be 85% of the lower of:

    

    (a)           the
Fair Market Value of a Share on the Enrollment Date on which such option is
granted; or

    

    (b)           the
Fair Market Value of a Share on the Purchase Date,

    

    but - in
the case of newly issued Shares - not lower than the par value of a
Share.

    
      
         

      

      
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    Notwithstanding
the above, the Board may establish a different purchase price for each Share
purchased under any option provided that such purchase price is determined at
least thirty (30) days prior to the Accumulation Period for which it is
applicable and provided that such purchase price may not be less than (i) the
purchase price set forth above and (ii) – in the case of newly issued Shares -
than the par value per Share.

    

    9.5           If
Shares are purchased by a Participant pursuant to Section 9.1, then such Shares
shall be held in non-certificated form at a bank or other appropriate
institution selected by the Administrator until the earlier of the Participant’s
termination of employment or the time a Participant requests delivery of
certificates representing such shares, which would only be possible if the Board
resolved that share certificates shall be issued.  If any law
governing corporate or securities matters, or any applicable regulation of the
Securities and Exchange Commission or other body having jurisdiction with
respect to such matters, shall require that the Company or the Participant take
any action in connection with the Shares being purchased under the option,
delivery of such Shares shall be postponed until the necessary action shall have
been completed, which action shall be taken by the Company at its own expense,
without unreasonable delay.

    

    Shares
transferred pursuant to this Section 9.5 shall be registered in the name of the
Participant or, if the Participant so elects, in the names of the Participant
and one or more such other persons as may be designated by the Participant in
joint tenancy with rights of survivorship or in tenancy by the entireties or as
spousal community property, or in such forms of trust as may be approved by the
Administrator, to the extent permitted by law.

    

    9.6           In
the case of Participants employed by a Participating Subsidiary, the Board may
provide for Shares to be sold through the Subsidiary to such Participants, to
the extent consistent with and governed by Section 423 of the Code.

    

    9.7           If
the total number of Shares for which an option is exercised on any Purchase Date
in accordance with this Article IX, when aggregated with all Shares previously
granted under this Plan, exceeds the maximum number of Shares reserved in
Section 4.1, the Administrator shall make a pro rata allocation of the Shares
available for delivery and distribution in as nearly a uniform manner as shall
be practicable and as it shall determine to be equitable, and the balance of the
cash amount credited to the Account of each Participant under the Plan shall be
returned to him or her as promptly as administratively practical.

    

    9.8           If
a Participant or former Participant sells, transfers, or otherwise makes a
disposition of Shares purchased pursuant to an option granted under the Plan
within two years after the date such option is granted or within one year after
the Purchase Date to which such option relates, or if the Participant or former
Participant otherwise has a taxable event relating to Shares purchased under the
Plan, and if such Participant or former Participant is subject to U.S. federal
income tax, then such Participant or former Participant shall notify the Company
or Participating Subsidiary in writing of any such sale, transfer or other
disposition within 10 days of the consummation of such sale, transfer or other
disposition, and shall remit to the Company or Participating Subsidiary or
authorize the Company or Participating Subsidiary to withhold from other sources
such amount as the Company may determine to be necessary to satisfy any federal,
state or local tax withholding obligations of the Company or Participating
Subsidiary.  A Participant must reply to a written request, within 10
days of the receipt of such written request, from the Company, Participating
Subsidiary, or Administrator regarding whether such a sale, transfer or other
disposition has occurred.

    
      
         

      

      
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    The
Administrator may from time to time establish rules and procedures (including
but not limited to postponing delivery of Shares until the earlier of the
expiration of the two-year or one-year period or the disposition of such Shares
by the Participant) to cause the withholding requirements to be
satisfied.

    

    X.   Withdrawal From the Plan;
Termination of Employment; Leave of Absence; Death

    

    10.1        Withdrawal from the
Plan.  Effective as of the last day of any calendar quarter
during an Accumulation Period, a Participant may withdraw from the Plan in full
(but not in part) by delivering a notice of withdrawal to the Company (in a
manner prescribed by the Administrator) at least ten business days prior to the
end of such calendar quarter (but in no event later than the June 1 or December
1 immediately preceding the Purchase Date for the Plan's two Accumulation
Periods, respectively).  Upon such withdrawal from participation in
the Plan, all funds then accumulated in the Participant’s Account shall not be
used to purchase Shares, but shall instead be distributed to the Participant as
soon as administratively practical after the end of such calendar quarter, and
the Participant’s payroll deductions shall cease as of the end of such calendar
quarter.  An Employee who has withdrawn during an Accumulation Period
may not return funds to the Company or a Participating Subsidiary during the
same Accumulation Period and require the Company or Participating Subsidiary to
apply those funds to the purchase of Shares, nor may such Participant’s payroll
deductions continue, in accordance with Article VI.  Any Eligible
Employee who has withdrawn from the Plan may, however, re-enroll in the Plan on
the next subsequent Enrollment Date following withdrawal in accordance with the
provisions of Article VI.

    

    10.2        Termination of
Employment.  Participation in the Plan terminates immediately
when a Participant ceases to be employed by the Company or any Participating
Subsidiary for any reason whatsoever, including but not limited to termination
of employment, whether voluntary or involuntary, or on account of disability, or
retirement, but not including death, or if the participating Subsidiary
employing the Participant ceases for any reason to be a Participating
Subsidiary.  Participation in the Plan also terminates immediately
when a Participant ceases to be an Eligible Employee under Article V or
withdraws from the Plan.  Upon termination of participation such
terminated Participant’s outstanding options shall thereupon
terminate.  As soon as administratively practical after termination of
participation, the Company shall pay to the Participant or legal representative
all amounts accumulated in the Participant’s Account and held by the Company at
the time of termination of participation, and any Participating Subsidiary shall
pay to the Participant or legal representative all amounts accumulated in the
Participant's Account and held by the Participating Subsidiary at the time of
termination of participation.

    

    10.3        Leaves of
Absence.

    

    (a)           If
a Participant takes a leave of absence (other than an Authorized Leave of
Absence) without terminating employment, such Participant will be deemed to have
discontinued

    

    contributions
to the Plan in accordance with Section 8.3, but will remain a Participant in the
Plan through the balance of the Accumulation Period in which his or her leave of
absence begins, so long as such leave of absence does not exceed 90
days.  If a Participant takes a leave of absence (other than an
Authorized Leave of Absence) without terminating employment, such Participant
will be deemed to have withdrawn from the Plan in accordance with Section 10.1
if such leave of absence exceeds 90 days.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    

    (b)           An
Employee on an Authorized Leave of Absence shall remain a Participant in the
Plan and, in the case of a paid Authorized Leave of Absence, shall have
deductions made under Section 8.1 from payments that would, but for the
Authorized Leave of Absence, be Base Earnings.  An Employee who does
not return from an Authorized Leave of Absence on the scheduled date (or, in the
case of Qualified Military Leave, prior to the date such individual’s
reemployment rights under the Uniformed Services Employment and Reemployment
Rights Act of 1994 have expired or terminated) shall be deemed to have
terminated employment on the last day of such Authorized Leave of Absence (or,
in the case of Qualified Military Leave, the date such reemployment rights
expire or are terminated).

    

    (c)           An
“Authorized Leave of Absence” means (a) a Qualified Military Leave, and (b) an
Employee’s absence of more than 90 days which has been authorized, either
pursuant to a policy of the Company or the Participating Subsidiary that employs
the Employee, or pursuant to a written agreement between the employer and the
Employee, which policy or written agreement guarantees the Employee’s rights to
return to employment.

    

    10.4        Death.  Unless
mandatory applicable law provides otherwise as soon as administratively feasible
after the death of a Participant, amounts accumulated in his or her Account
shall be paid in cash to the beneficiary or beneficiaries designated by the
Participant on a beneficiary designation form approved by the Board, but if the
Participant does not make an effective beneficiary designation then such amounts
shall be paid in cash to the Participant’s spouse if the Participant has a
spouse, or, if the Participant does not have a spouse, to the executor,
administrator or other legal representative of the Participant’s
estate.  Such payment shall relieve the Company and the Participating
Subsidiary of further liability with respect to the Plan on account of the
deceased Participant.  If more than one beneficiary is designated,
each beneficiary shall receive an equal portion of the Account unless the
Participant has given express contrary instructions.  None of the
Participant’s beneficiary, spouse, executor, administrator or other legal
representative of the Participant’s estate shall, prior to the death of the
Participant by whom he has been designated, acquire any interest in the amounts
credited to the Participant’s Account under the Plan.

    

    XI.    Miscellaneous

    

    11.1Interest.  Interest
or earnings will not be paid on any Employee Accounts.

     

    11.2        Restrictions on
Transfer.  The rights of a Participant under the Plan shall not
be assignable or transferable by such Participant, and an option granted under
the Plan may not be exercised during a Participant’s lifetime other than by the
Participant.  Any such attempt at assignment, transfer, pledge or
other disposition shall be without effect, except that the Company may treat
such act as an election to withdraw from the Plan in accordance with Section
10.1.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    11.3        Administrative
Assistance.  If the Administrator in its discretion so elects,
it may retain a brokerage firm, bank, other financial institution or other
appropriate agent to assist in the purchase of Shares, delivery of reports or
other administrative aspects of the Plan.  If the Administrator so
elects, each Participant shall (unless prohibited by applicable law) be deemed
upon enrollment in the Plan to have authorized the establishment of an account
on his or her behalf at such institution.  Shares purchased by a
Participant under the Plan shall be held in the account in the Participant’s
name, or if the Participant so indicates in the enrollment form, in the
Participant’s name together with the name of one or more other persons in joint
tenancy with right of survivorship or in tenancy by the entireties or as spousal
community property, or in such forms of trust as may be approved by the
Administrator, to the extent permitted by law.

    

    11.4        Costs.  All
costs and expenses incurred in administering the Plan shall be paid by the
Company or Participating Subsidiaries, including any brokerage fees on the
purchased Shares; excepting that any stamp duties, transfer taxes, fees to issue
stock certificates, and any brokerage fees on the sale price applicable to
participation in the Plan after the initial purchase of the Shares on the
Purchase Date shall be charged to the Account or brokerage account of such
Participant.

    

    11.5        Equal Rights and
Privileges.  All Eligible Employees shall have equal rights and
privileges with respect to the Plan so that the Plan qualifies as an "employee
stock purchase plan" within the meaning of Section 423 or any successor
provision of the Code and the related regulations.  Notwithstanding
the express terms of the Plan, any provision of the Plan which is inconsistent
with Section 423 or any successor provision of the Code shall without
further act or amendment by the Company or the Board be reformed to comply with
the requirements of Code Section 423.  This Section 11.5
shall take precedence over all other provisions in the Plan.

    

    11.6        Applicable
Law.  The Plan shall be governed by the substantive laws
(excluding the conflict of laws rules) of the State of Kansas.

    

    11.7        Amendment and
Termination.  The Board may amend, alter or terminate the Plan
at any time; provided, however, that no amendment which would amend or modify
the Plan in a manner requiring stockholder approval under Code Section 423 or
the requirements of any securities exchange on which the Shares are traded shall
be effective unless, within one year after it is adopted by the Board, it is
approved by the holders of a majority of the voting power of the Company’s
outstanding shares.  In addition, the Committee (if appointed under
Section 3.1) may amend the Plan as provided in Section 3.3, subject to the
conditions set forth therein and in this Section 11.7.

    

    If the
Plan is terminated, the Board may elect to terminate all outstanding options
either prior to their expiration or upon completion of the purchase of Shares on
the next Purchase Date, or may elect to permit options to expire in accordance
with the terms of this Plan (and participation to continue through such
expiration dates).  If the options are terminated prior to expiration,
all funds accumulated in Participants’ Accounts as of the date the options are
terminated shall be returned to the Participants as soon as administratively
feasible.

    

    11.8        No Right of
Employment. Neither the grant nor the exercise of any rights to purchase
Shares under this Plan nor anything in this Plan shall impose upon the Company
or Participating Subsidiary any obligation to employ or continue to employ any
employee.  The right of the Company or Participating Subsidiary to
terminate any employee shall not be diminished or affected because any rights to
purchase Shares have been granted to such employee.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    11.9        Requirements of
Law.  The Company shall not be required to sell, issue, or
deliver any Shares under this Plan if such sale, issuance, or delivery might
constitute a violation by the Company or the Participant of any provision of
law.  Unless a registration statement under the Securities Act is in
effect with respect to the Shares proposed to be delivered under the Plan, the
Company shall not be required to issue such Shares if, in the opinion of the
Company or its counsel, such issuance would violate the Securities
Act.  Regardless of whether such Shares have been registered under the
Securities Act or registered or qualified under the securities laws of any
state, the Company may impose restrictions upon the hypothecation or further
sale or transfer of such shares  if, in the judgment of the Company or
its counsel, such restrictions are necessary or desirable to achieve compliance
with the provisions of the Securities Act, the securities laws of any state, or
any other law or are otherwise in the best interests of the
Company.  Any determination by the Company or its counsel in
connection with any of the foregoing shall be final and binding on all
parties.

    

    The
Company may, but shall not be obligated to, register or qualify any securities
covered by the Plan.  The Company shall not be obligated to take any
other affirmative action in order to cause the grant or exercise of any right or
the issuance, sale, or deliver of Shares pursuant to the exercise of any right
to comply with any law.

    

    11.10      Gender.  When
used herein, masculine terms shall be deemed to include the feminine, except
when the context indicates to the contrary.

    

    11.11.
Data Protection. The Board, the Committee, and any other person or entity
empowered by the Board or the Committee to administer the Plan may process,
store, transfer or disclose personal data of the Participants to the extent
required for the implementation and administration of the Plan. The Board, the
Committee and any other person or entity empowered by the Board or the Committee
to administer the Restated Plan shall comply with any applicable data protection
laws.

    

    11.12      Withholding of
Taxes.  The Company or Participating Subsidiary may withhold
from any purchase of Shares under this Plan or any sale, transfer or other
disposition thereof any local, state, federal or foreign taxes, employment
taxes, social taxes or other taxes at such times and from such other amounts as
it deems appropriate.  The Company or Participating Subsidiary may
require the Participant to remit an amount in cash sufficient to satisfy any
required withholding amounts to the Company or Participating Subsidiary, as the
case may be.

    

    

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

    

    Annex
to the Plan for Grantees subject to Swiss inheritance law

    

    
      	
              1.

            	
              Section
      10.4 shall be replaced with the
following:

            

    

     

    10.4        Death.  After
the death of a Participant, amounts accumulated in his or her Account shall be
paid to the Participant's estate in accordance with the applicable Swiss
inheritance rules.

    
      
         

      

      
        15Garmin
Ltd.

    

    2005
Equity Incentive Plan

     

    as
amended and restated on June 27, 2010

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    
      
        
          
            	 
      	 
      	
                    Page

                  
	 	 
	
                    Article
      1. Establishment, Objectives and Duration

                  	
                    1

                  
	
                    1.1.

                  	
                    Establishment
      and Amendment of the Plan.

                  	
                    1

                  
	
                    1.2.

                  	
                    Objectives
      of the Plan.

                  	
                    1

                  
	
                    1.3.

                  	
                    Duration
      of the Plan.

                  	
                    1

                  
	 
      	 
      
	
                    Article
      2. Definitions

                  	
                    1

                  
	 
      	 
      
	
                    Article
      3. Administration

                  	
                    8

                  
	
                    3.1.

                  	
                    Board
      and Plan Committee.

                  	
                    8

                  
	
                    3.2.

                  	
                    Powers
      of the Board.

                  	
                    9

                  
	 
      	 
      
	
                    Article
      4. Shares Subject to the Plan

                  	
                    11

                  
	
                    4.1.

                  	
                    Number
      of Shares Available.

                  	
                    11

                  
	
                    4.2.

                  	
                    Adjustments
      in Authorized Shares.

                  	
                    12

                  
	 
      	 
      
	
                    Article
      5. Eligibility and General Conditions of Awards

                  	
                    12

                  
	
                    5.1.

                  	
                    Eligibility.

                  	
                    12

                  
	
                    5.2.

                  	
                    Grant
      Date.

                  	
                    12

                  
	
                    5.3.

                  	
                    Maximum
      Term.

                  	
                    13

                  
	
                    5.4.

                  	
                    Award
      Agreement.

                  	
                    13

                  
	
                    5.5.

                  	
                    Restrictions
      on Share Transferability.

                  	
                    13

                  
	
                    5.6.

                  	
                    Termination
      of Affiliation.

                  	
                    13

                  
	
                    5.7.

                  	
                    Nontransferability
      of Awards.

                  	
                    16

                  
	
                    5.8.

                  	
                    Section
      162(m) Performance Awards.

                  	
                    17

                  
	 
      	 
      
	
                    Article
      6. Stock Options

                  	
                    20

                  
	
                    6.1.

                  	
                    Grant
      of Options.

                  	
                    20

                  
	
                    6.2.

                  	
                    Award
      Agreement.

                  	
                    20

                  
	
                    6.3.

                  	
                    Option
      Price.

                  	
                    20

                  
	
                    6.4.

                  	
                    Grant
      of Incentive Stock Options.

                  	
                    20

                  
	
                    6.5.

                  	
                    Exercise
      of Options.

                  	
                    22

                  
	 
      	 
      
	
                    Article
      7. Stock Appreciation Rights

                  	
                    23

                  
	
                    7.1.

                  	
                    Grant
      of SARs.

                  	
                    23

                  
	
                    7.2.

                  	
                    SAR
      Award Agreement

                  	
                    23

                  
	
                    7.3.

                  	
                    Exercise
      of SARs.

                  	
                    23

                  
	
                    7.4.

                  	
                    Expiration
      of SARs.

                  	
                    23

                  
	
                    7.5.

                  	
                    Payment
      of SAR Amount.

                  	
                    24

                  
	 
      	 
      
	
                    Article
      8. Restricted Shares and Bonus Shares

                  	
                    24

                  
	
                    8.1.

                  	
                    Grant
      of Restricted Shares.

                  	
                    24

                  
	
                    8.2.

                  	
                    Bonus
      Shares.

                  	
                    24

                  
	
                    8.3.

                  	
                    Award
      Agreement.

                  	
                    24

                  
	
                    8.4.

                  	
                    Consideration.

                  	
                    24

                  
	
                    8.5.

                  	
                    Effect
      of Forfeiture.

                  	
                    24

                  
	
                    8.6.

                  	
                    Escrow.

                  	
                    25

                  

          

        

      

    

    
      
         

      

      
        i

        
          

        

      

      
         

      

    

    

    
      
        
          	
                  Article
      9. Restricted Stock Units (f/k/a “Deferred Shares”)

                	
                  25

                
	
                  9.1.

                	
                  Grant
      of Restricted Stock Units.

                	
                  25

                
	
                  9.2.

                	
                  Award
      Agreement.

                	
                  25

                
	
                  9.3.

                	
                  Crediting
      Restricted Stock Units.

                	
                  25

                
	
                  9.4.

                	
                  Settlement
      of RSU Accounts.

                	
                  25

                
	 
      	 
      
	
                  Article
      10. Performance Units and Performance Shares

                	
                  26

                
	
                  10.1.

                	
                  Grant
      of Performance Units and Performance Shares.

                	
                  26

                
	
                  10.2.

                	
                  Value/Performance
      Goals.

                	
                  26

                
	
                  10.3.

                	
                  Payment
      of Performance Units and Performance Shares.

                	
                  26

                
	
                  10.4.

                	
                  Form
      and Timing of Payment of Performance Units and Performance
      Shares.

                	
                  26

                
	 
      	 
      
	
                  Article
      11. Beneficiary Designation

                	
                  27

                
	 
      	 
      
	
                  Article
      12. Rights of Employees

                	
                  27

                
	
                  12.1.

                	
                  Employment.

                	
                  27

                
	
                  12.2.

                	
                  Participation.

                	
                  27

                
	 
      	 
      
	
                  Article
      13. Amendment, Modification, and Termination

                	
                  27

                
	
                  13.1.

                	
                  Amendment,
      Modification, and Termination.

                	
                  27

                
	
                  13.2.

                	
                  Adjustments
      Upon Certain Unusual or Nonrecurring Events.

                	
                  27

                
	
                  13.3.

                	
                  Awards
      Previously Granted.

                	
                  28

                
	
                  13.4.

                	
                  Adjustments
      in Connection with Change of Control.

                	
                  28

                
	
                  13.5.

                	
                  Prohibition
      on Repricings.

                	
                  29

                
	 
      	 
      
	
                  Article
      14. Withholding

                	
                  29

                
	
                  14.1.

                	
                  Mandatory
      Tax Withholding.

                	
                  29

                
	
                  14.2.

                	
                  Notification
      under Code Section 83(b).

                	
                  30

                
	 
      	 
      
	
                  Article
      15. Equity Incentive Plans of Foreign Subsidiaries

                	
                  30

                
	 
      	 
      
	
                  Article
      16. Additional Provisions

                	
                   30

                
	
                  16.1.

                	
                  Successors.

                	
                  30

                
	
                  16.2.

                	
                  Gender
      and Number.

                	
                  30

                
	
                  16.3.

                	
                  Severability.

                	
                  30

                
	
                  16.4.

                	
                  Requirements
      of Law.

                	
                  31

                
	
                  16.5.

                	
                  Securities
      Law Compliance.

                	
                  31

                
	
                  16.6.

                	
                  No
      Rights as a Shareholder.

                	
                  31

                
	
                  16.7.

                	
                  Nature
      of Payments.

                	
                  32

                
	
                  16.8.

                	
                  Military
      Service.

                	
                  32

                
	
                  16.9.

                	
                  Data
      Protection.

                	
                  32

                
	
                  16.10.

                	
                  Governing
      Law.

                	
                  32

                
	 
      	 
      
	
                  Annex

                	
                  A1

                

        

      

    

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    GARMIN
LTD.

    2005
Equity Incentive Plan

    

    as
amended and restated on June 27, 2010

    

    
      Article
1.  Establishment, Objectives and Duration

    

     

    
      	
               
      

            	
              1.1.

            	
              Establishment and
      Amendment of the Plan.  The Board of Directors (the
      “Board”) of Garmin Ltd., a Swiss company (the "Company"), hereby
      establishes the incentive compensation plan to be known as the Garmin Ltd.
      2005 Equity Incentive Plan (the "Plan").  The Plan was adopted
      by the Board of Directors of Garmin Ltd., a Cayman Islands company
      (“Garmin Cayman”),on March 1, 2005  and was approved by the
      shareholders of Garmin Cayman on June 3, 2005.  The Plan is
      effective as of June 3, 2005 (the "Effective Date").  In 2006,
      Garmin Cayman effected a two-for-one stock split of its common Shares (the
      "Stock Split").  Subject to approval of the shareholders of
      Garmin Cayman, the Board of Directors of Garmin Cayman adopted an amended
      and restated plan effective June 5, 2009 with certain amendments
      reflecting the Stock Split, updated changes in the law and an expanded
      type of performance-based awards eligible to be granted under the Plan.
      The Plan was amended and restated on June 27, 2010 following the
      redomestication transaction on June 27, 2010 pursuant to which the shares
      of Garmin Cayman were exchanged for shares of the Company and the Company
      became the public holding company of Garmin Cayman and its
      subsidiaries

            

    

     

    
      	
               
      

            	
              1.2.

            	
              Objectives of the
      Plan.  The Plan is intended to allow employees of the
      Company and its Subsidiaries to acquire or increase equity ownership in
      the Company, or to be compensated under the Plan based on growth in the
      Company's equity value, thereby strengthening their commitment to the
      success of the Company and stimulating their efforts on behalf of the
      Company, and to assist the Company and its Subsidiaries in attracting new
      employees and retaining existing employees.  The Plan is also
      intended to optimize the profitability and growth of the Company through
      incentives which are consistent with the Company's goals; to provide
      incentives for excellence in individual performance; and to promote
      teamwork.

            

    

     

    
      	
               
      

            	
              1.3.

            	
              Duration of the
      Plan.  The Plan shall commence on the Effective Date and
      shall remain in effect, subject to the right of the Board to amend or
      terminate the Plan at any time pursuant to Article 13 hereof, until all
      Shares subject to it shall have been purchased or acquired according to
      the Plan's provisions.

            

    

     

    
      Article
2.  Definitions

    

     

    Whenever
used in the Plan, the following terms shall have the meanings set forth
below:

     

    
      	
               
      

            	
              2.1.

            	
              "Article" means
      an Article of the Plan.

            

    

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              2.2.

            	
              "Award" means
      Options, Restricted Shares, Bonus Shares, SARs, Restricted Stock Units,
      Performance Units or Performance Shares granted under the
      Plan.

            

    

     

    
      	
               
      

            	
              2.3.

            	
              "Award
      Agreement" means a written agreement by which an Award is
      evidenced.

            

    

     

    
      	
               
      

            	
              2.4.

            	
              "Beneficial
      Owner" has the meaning specified in Rule 13d-3 of the SEC under the
      Exchange Act.

            

    

     

    
      	
               
      

            	
              2.5.

            	
              "Board" means
      the Board of Directors of the
Company..

            

    

     

    
      	
               
      

            	
              2.6.

            	
              "Bonus Shares"
      means Shares that are awarded to a Grantee without cost and without
      restrictions in recognition of past performance (whether determined by
      reference to another employee benefit plan of the Company or otherwise) or
      as an incentive to become an employee of the Company or a
      Subsidiary.

            

    

     

    
      	
               
      

            	
              2.7.

            	
              "Business
      Criteria" has the meaning set forth in Section
    5.8(c).

            

    

     

    
      	
               
      

            	
              2.8.

            	
              "Cause" means,
      unless otherwise defined in an Award
Agreement,

            

    

     

    
      	
               
      

            	
              (a)

            	
              a
      Grantee's conviction of, plea of guilty to, or plea of nolo contendere to
      a felony or other crime that involves fraud, dishonesty or moral
      turpitude,

            

    

     

    
      	
               
      

            	
              (b)

            	
              any
      willful action or omission by a Grantee which would constitute grounds for
      immediate dismissal under the employment policies of the Company or the
      Subsidiary by which Grantee is employed, including but not limited to
      intoxication with alcohol or illegal drugs while on the premises of the
      Company or any Subsidiary, or violation of sexual harassment laws or the
      internal sexual harassment policy of the Company or the Subsidiary by
      which Grantee is employed, irrespective of whether the applicable law
      would allow an immediate dismissal in these
  cases,

            

    

     

    
      	
               
      

            	
              (c)

            	
              a
      Grantee's habitual neglect of duties, including but not limited to
      repeated absences from work without reasonable excuse,
  or

            

    

     

    
      	
               
      

            	
              (d)

            	
              a
      Grantee's willful and intentional material misconduct in the performance
      of his duties that results in financial detriment to the Company or any
      Subsidiary;

            

    

     

    provided, however, that for
purposes of clauses (b), (c) and (d), Cause shall not include any one or more of
the following: bad judgment, negligence or any act or omission believed by the
Grantee in good faith to have been in or not opposed to the interest of the
Company (without intent of the Grantee to gain, directly or indirectly, a profit
to which the Grantee was not legally entitled).  A Grantee who agrees
to resign from his affiliation with the Company or a Subsidiary in lieu of being
terminated for Cause may be deemed to have been terminated for Cause for
purposes of the Plan.

     

    
      	
               
      

            	
              2.9.

            	
              "Change of
      Control" means, unless otherwise defined in an Award Agreement, any
      one or more of the following:

            

    

     

    
      
         

      

      
        - 2
-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (a)

            	
              any
      Person other than (i) a Subsidiary, (ii) any employee benefit plan (or any
      related trust) of the Company or any of its Subsidiaries or (iii) any
      Excluded Person, becomes the Beneficial Owner of 35% or more of the shares
      of the Company representing 35% or more of the combined voting power of
      the Company (such a person or group, a "35% Owner"),
      except that (i) no Change of Control shall be deemed to have occurred
      solely by reason of such beneficial ownership by a corporation with
      respect to which both more than 60% of the common shares of such
      corporation and Voting Securities representing more than 60% of the
      aggregate voting power of such corporation are then owned, directly or
      indirectly, by the persons who were the direct or indirect owners of the
      shares of the Company immediately before such acquisition in substantially
      the same proportions as their ownership, immediately before such
      acquisition, of the shares of the Company, as the case may be and (ii)
      such corporation shall not be deemed a 35% Owner;
  or

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      Incumbent Directors (determined using the Effective Date as the baseline
      date) cease for any reason to constitute at least a majority of the
      directors of the Company then serving;
or

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      consummation by the Company (whether directly involving the Company or
      indirectly involving the Company through one or more intermediaries) of a
      merger, reorganization, consolidation, or similar transaction, or the sale
      or other disposition of all or substantially all (at least 40%) of the
      consolidated assets of the Company or a resolution of dissolution of the
      Company (any of the foregoing transactions, a "Reorganization
      Transaction") which is not an Exempt Reorganization
      Transaction.

            

    

     

    The
definition of "Change of Control" may be amended at any time prior to the
occurrence of a Change of Control, and such amended definition shall be applied
to all Awards granted under the Plan whether or not outstanding at the time such
definition is amended, without requiring the consent of any
Grantee.  Notwithstanding the occurrence of any of the foregoing
events, (a) a Change of Control shall be deemed not to have occurred with
respect to any Section 16 Person if such Section 16 Person is, by agreement
(written or otherwise), a participant on such Section 16 Person's own behalf in
a transaction which causes the Change of Control to occur and (b) a Change of
Control shall not occur with respect to a Grantee if, in advance of such event,
the Grantee agrees in writing that such event shall not constitute a Change of
Control.

     

    
      	  
    	
              2.10.

            	
              "Change
      of Control Period" has the meaning set forth in Section
      5.6(c).

            

    

     

    
      	  
    	
              2.11.

            	
              "Change
      of Control Value" means the Fair Market Value of a Share on the
      date of a Change of Control.

            

    

     

    
      	  	
              2.12.

            	
              "Code"
      means the Internal Revenue Code of 1986, as amended from time to time, and
      regulations and rulings thereunder.  References to a particular
      section of the Code include references to successor provisions of the Code
      or any successor statute.

            

    

     

    
      
         

      

      
        - 3
-

        
          

        

      

      
         

      

    

    
      	  
    	
              2.13.

            	
              "Company"
      has the meaning set forth in Section
1.1.

            

    

     

    
      	  	
              2.14.

            	
              "Disabled"
      or "Disability"
      means an individual (i) is unable to engage in any substantial gainful
      activity by reason of any medically determinable physical or mental
      impairment which can be expected to result in death or can be expected to
      last for a continuous period of not less than twelve (12) months or (ii)
      is, by reason of any medically determinable physical or mental impairment
      which can be expected to result in death or can be expected to last for a
      continuous period of not less than twelve (12) months, receiving income
      replacement benefits for a period of not less than 3 months under a
      Company-sponsored accident and health plan.  Notwithstanding the
      foregoing, with respect to an Incentive Stock Option, "Disability" means a
      permanent and total disability, within the meaning of Code Section
      22(e)(3), as determined by the Board in good faith, upon receipt of
      medical advice from one or more individuals, selected by the Board, who
      are qualified to give professional medical
  advice.

            

    

     

    
      	  	
              2.15.

            	
              "Effective
      Date" has the meaning set forth in Section
  1.1.

            

    

     

    
      	  	
              2.16.

            	
              "Eligible
      Person" means any employee (including any officer) of the Company
      or any Subsidiary, including any such employee who is on an approved leave
      of absence or has been subject to a disability which does not qualify as a
      Disability.

            

    

     

    
      	  	
              2.17.

            	
              "Exchange
      Act" means the Securities Exchange Act of 1934, as amended.
      References to a particular section of the Exchange Act include references
      to successor provisions.

            

    

     

    
      	  	
              2.18.

            	
              "Excluded
      Person" means any Person who, along with such Person's Affiliates
      and Associates (as such terms are defined in Rule 12b-2 of the General
      Rules and Regulations under the Exchange Act) is the Beneficial Owner of
      15% or more of the Shares outstanding as of the Effective
      Date.

            

    

     

    
      	  	
              2.19.

            	
              "Exempt
      Reorganization Transaction" means a Reorganization Transaction
      which (i) results in the Persons who were the direct or indirect owners of
      the outstanding shares of the Company immediately before such
      Reorganization Transaction becoming, immediately after the consummation of
      such Reorganization Transaction, the direct or indirect owners of both
      more than 60% of the then-outstanding common shares of the Surviving
      Corporation and Voting Securities representing more than 60% of the
      aggregate voting power of the Surviving Corporation, in substantially the
      same respective proportions as such Persons' ownership of the shares of
      the Company immediately before such Reorganization Transaction, or (ii)
      after such transaction, more than 50% of the members of the board of
      directors of the Surviving Corporation were Incumbent Directors at the
      time of the Board's approval of the agreement providing for the
      Reorganization Transaction or other action of the Board approving the
      transaction (or whose election or nomination was approved by a vote of at
      least two-thirds of the members who were members of the Board at that
      time).

            

    

     

    
      
         

      

      
        - 4
-

        
          

        

      

      
         

      

    

    
      	  	
              2.20.

            	
              "Fair
      Market Value" means, unless otherwise determined or provided by the
      Board in the circumstances, (A) with respect to any property other than
      Shares, the fair market value of such property determined by such methods
      or procedures as shall be established from time to time by the Board, and
      (B) with respect to Shares, (i) the last sale price (also referred to as
      the closing price) of a Share on such U.S. securities exchange as the
      Shares are then traded, for the applicable date, (ii) if such U.S.
      securities exchange is closed for trading on such date, or if the Shares
      do not trade on such date, then the last sales price used shall be the one
      on the date the Shares last traded on such U.S. securities exchange, or
      (iii) in the event that there shall be no public market for the Shares,
      the fair market value of the Shares as determined in good faith by the
      Board using a method consistently applied.  Notwithstanding the
      above, for all Options, SARs and Deferred Shares (RSUs) granted before
      June 5, 2009, Fair Market Value for purposes of establishing Option
      Prices, Exercise Prices or values of Shares, respectively, was established
      based on the average of the high and low trading prices on the Nasdaq
      Global Select Market (or, if no sale of Shares was reported for such date,
      on the next preceding date on which a sale of Shares was
      reported).

            

    

     

    
      	  	
              2.21.

            	
              "Freestanding
      SAR" means any SAR that is granted independently of any
      Option.

            

    

     

    
      	  	
              2.22.

            	
              "Good
      Reason" means any action by the Company or the Subsidiary employing
      a Grantee which results in any of the following without the Grantee's
      consent:  (a) a material diminution or other material adverse
      change in the Grantee's position, authority or duties, (b) requiring the
      Grantee to be based at any office or location more than 50 miles from the
      location where he or she was previously based; (c) a material diminution
      in the Grantee's compensation in the aggregate, other than a diminution
      applicable to all similarly situated employees.  A Grantee shall
      not have Good Reason to terminate his or her position unless, (1) within
      60 days following the event or circumstance set forth above in (a), (b) or
      (c), the Grantee notifies the Company of such event or circumstance, (2)
      the Grantee gives the Company 30 days to correct the event or
      circumstance, and (3) the Company does not correct, in all material
      respects, such event or
circumstance.

            

    

     

    
      	  	
              2.23.

            	
              "Grant
      Date" has the meaning set forth in Section
  5.2.

            

    

     

    
      	  	
              2.24.

            	
              "Grantee"
      means an individual who has been granted an
  Award.

            

    

     

    
      	  	
              2.25.

            	
              "Including"
      or "includes"
      mean "including, without limitation," or "includes, without limitation",
      respectively.

            

    

     

    
      
         

      

      
        - 5
-

        
          

        

      

      
         

      

    

    
      	  	
              2.26.

            	
              "Incumbent
      Directors" means, as of any specified baseline date, individuals
      then serving as members of the Board who were members of the Board as of
      the date immediately preceding such baseline date; provided
      that any subsequently-appointed or elected member of the Board whose
      election, or nomination for election by shareholders of the Company or the
      Surviving Corporation, as applicable, was approved by a vote or written
      consent of a majority of the directors then comprising the Incumbent
      Directors shall also thereafter be considered an Incumbent Director,
      unless the initial assumption of office of such subsequently-elected or
      appointed director was in connection with (i) an actual or threatened
      election contest, including a consent solicitation, relating to the
      election or removal of one or more members of the Board, (ii) a "tender
      offer" (as such term is used in Section 14(d) of the Exchange Act), or
      (iii) a proposed Reorganization
Transaction.

            

    

     

    
      	  	
              2.27.

            	
              "Option"
      means an option granted under Article 6 of the Plan, including an
      incentive stock option.

            

    

     

    
      	  	
              2.28.

            	
              "Option
      Price" means the price at which a Share may be purchased by a
      Grantee pursuant to an Option.

            

    

     

    
      	  	
              2.29.

            	
              "Option
      Term" means the period beginning on the Grant Date of an Option and
      ending on the expiration date of such Option, as specified in the Award
      Agreement for such Option and as may, consistent with the provisions of
      the Plan, be extended from time to time by the Board prior to the
      expiration date of such Option then in
effect.

            

    

     

    
      	  	
              2.30.

            	
              "Performance
      Award" means any Award that will be issued, granted, vested,
      exercisable or payable, as the case may be, upon the achievement of one or
      more Business Criteria, as set forth in Section
  5.8.

            

    

     

    
      	  	
              2.31.

            	
              "Performance
      Period" has the meaning set forth in Section
  10.2.

            

    

     

    
      	  	
              2.32.

            	
              "Performance
      Share" or "Performance
      Unit" has the meaning set forth in
  Article 10.

            

    

     

    
      	  	
              2.33.

            	
              "Period
      of Restriction" means the period during which the transfer of
      Restricted Shares is limited in some way (based on the passage of time,
      the achievement of performance goals, or upon the occurrence of other
      events as determined by the Board) or the Shares are subject to a
      substantial risk of forfeiture, as provided in Article
  8.

            

    

     

    
      	  	
              2.34.

            	
              "Person"
      shall have the meaning ascribed to such term in Section 3(a)(9) of the
      Exchange Act and used in Sections 13(d) and 14(d) thereof, including a
      "group" as defined in Section 13(d)
thereof.

            

    

     

    
      	  	
              2.35.

            	
              "Plan"
      has the meaning set forth in Section
1.1.

            

    

     

    
      	  	
              2.36.

            	
              "Plan
      Committee" has the meaning set forth in Section
  3.1.

            

    

     

    
      	  	
              2.37.

            	
              "Reorganization
      Transaction" has the meaning set forth in Section
      2.8(c).

            

    

     

    
      
         

      

      
        - 6
-

        
          

        

      

      
         

      

    

    
      	  
    	
              2.38.

            	
              "Restricted
      Shares" means Shares that are issued as an Award under the Plan
      that is subject to Restrictions.

            

    

     

    
      	  	
              2.39.

            	
              "Restricted
      Stock Units" (f/k/a "Deferred
      Shares") means units awarded to Grantees pursuant to Article 9
      hereof, which are convertible into Shares at such time as such units are
      no longer subject to Restrictions as established by the
      Board.  Restricted Stock Units are the same as "Deferred Shares"
      previously referred to and granted under the Plan prior to this Amended
      and Restated Plan becoming
effective.

            

    

     

    
      	  	
              2.40.

            	
              "Restriction"
      means any restriction on a Grantee's free enjoyment of the Shares or other
      rights underlying Awards, including (a) that the Grantee or other holder
      may not sell, transfer, pledge, or assign a Share or right, and (b) such
      other restrictions as the Board may impose in the Award Agreement that are
      permissible under Swiss law. Restrictions may be based on the passage of
      time or the satisfaction of performance criteria or the occurrence of one
      or more events or conditions, and shall lapse separately or in combination
      upon such conditions and at such time or times, in installments or
      otherwise, as the Board shall specify. Awards subject to a Restriction
      shall be forfeited if the Restriction does not lapse prior to such date or
      the occurrence of such event or the satisfaction of such other criteria as
      the Board shall determine.

            

    

     

    
      	  	
              2.41.

            	
              "Rule
      16b-3" means Rule 16b-3 promulgated by the SEC under the Exchange
      Act, together with any successor rule, as in effect from time to
      time.

            

    

     

    
      	  	
              2.42.

            	
              "SAR"
      means a stock appreciation right and includes both Tandem SARs and
      Freestanding SARs.

            

    

     

    
      	  	
              2.43.

            	
              "SAR
      Term"
      means the period beginning on the Grant Date of a SAR and ending on the
      expiration date of such SAR, as specified in the Award Agreement for such
      SAR and as may, consistent with the provisions of the Plan, be extended
      from time to time by the Board prior to the expiration date of such SAR
      then in effect.

            

    

     

    
      	  	
              2.44.

            	
              "SEC"
      means the United States Securities and Exchange Commission, or any
      successor thereto.

            

    

     

    
      	  	
              2.45.

            	
              "Section"
      means, unless the context otherwise requires, a Section of the
      Plan.

            

    

     

    
      	  	
              2.46.

            	
              "Section
      16 Person" means a person who is subject to obligations under
      Section 16 of the Exchange Act with respect to transactions involving
      equity securities of the Company.

            

    

     

    
      	  	
              2.47.

            	
              "Share"
      means a registered share, CHF 10 par value, of the
  Company.

            

    

     

    
      	  	
              2.48.

            	
              "Subsidiary"
      means with respect to any Person (a) any corporation of which more than
      50% of the Voting Securities are at the time, directly or indirectly,
      owned by such Person, and (b) any partnership or limited liability company
      in which such Person has a direct or indirect interest (whether in the
      form of voting power or participation in profits or capital contribution)
      of more than 50%.  Solely with respect to a grant of an
      incentive stock option under the requirements of Section 422 of the Code,
      "Subsidiary" means a "subsidiary corporation" as defined in Section 424(f)
      of the Code.

            

    

     

    
      
         

      

      
        - 7
-

        
          

        

      

      
         

      

    

    
      	  
    	
              2.49.

            	
              "Substitute
      Option" has the meaning set forth in Section
  6.3.

            

    

     

    
      	  	
              2.50.

            	
              "Surviving
      Corporation" means the corporation resulting from a Reorganization
      Transaction or, if Voting Securities representing at least 50% of the
      aggregate voting power of such resulting corporation are directly or
      indirectly owned by another corporation, such other
      corporation.

            

    

     

    
      	  	
              2.51.

            	
              "Tandem
      SAR" means a SAR that is granted in connection with, or related to,
      an Option, and which requires forfeiture of the right to purchase an equal
      number of Shares under the related Option upon the exercise of such SAR;
      or alternatively, which requires the cancellation of an equal amount of
      SARs upon the purchase of the Shares subject to the
  Option.

            

    

     

    
      	  	
              2.52.

            	
              "Tax
      Withholding" has the meaning set forth in Section
      14.1(a).

            

    

     

    
      	  	
              2.53.

            	
              "Termination
      of Affiliation" occurs on the first day on which an individual is
      for any reason no longer providing services to the Company or any
      Subsidiary in the capacity of an employee, or with respect to an
      individual who is an employee of a Subsidiary, the first day on which such
      Subsidiary ceases to be a Subsidiary.  A Termination of
      Affiliation shall have the same meaning as a "separation from service"
      under Code Section 409A(2)(A)(i).

            

    

     

    
      	  	
              2.54.

            	
              "Voting
      Securities" of a corporation means securities of such corporation
      that are entitled to vote generally in the election of directors, but not
      including any other class of securities of such corporation that may have
      voting power by reason of the occurrence of a
  contingency.

            

    

     

    
      Article
3.  Administration

    

     

    
      	
               
      

            	
              3.1.

            	
              Board and Plan
      Committee.  Subject to Article 13, and to Section 3.2,
      the Plan shall be administered by the Board, or a committee of the Board
      appointed by the Board to administer the Plan ("Plan
      Committee").  To the extent the Board considers it desirable for
      transactions relating to Awards to be eligible to qualify for an exemption
      under Rule 16b-3, the Plan Committee shall consist of two or more
      directors of the Company, all of whom qualify as "non-employee directors"
      within the meaning of Rule 16b-3.  To the extent the Board
      considers it desirable for compensation delivered pursuant to Awards to be
      eligible to qualify for an exemption from the limit on tax deductibility
      of compensation under Section 162(m) of the Code, the Plan Committee shall
      consist of two or more directors of the Company, all of whom shall qualify
      as "outside directors" within the meaning of Code Section
      162(m).  The number of members of the Plan Committee shall from
      time to time be increased or decreased, and shall be subject to such
      conditions, including, but not limited to having exclusive authority to
      make certain grants of Awards or to perform such other acts, in each case
      as the Board deems appropriate to permit transactions in Shares pursuant
      to the Plan to satisfy such conditions of Rule 16b-3 or Code Section
      162(m) as then in effect.

            

    

     

    
      
         

      

      
        - 8
-

        
          

        

      

      
         

      

    

    Any
references herein to "Board" are, except as the context requires otherwise,
references to the Board or the Plan Committee, as applicable.

     

    
      	
               
      

            	
              3.2.

            	
              Powers of the
      Board.  Subject to the express provisions of the Plan,
      the Board has full and final authority and sole discretion as
      follows:

            

    

     

    
      	
               
      

            	
              (a)

            	
              taking
      into consideration the reasonable recommendations of management, to
      determine when, to whom and in what types and amounts Awards should be
      granted and the terms and conditions applicable to each Award, including
      the Option Price, the Option Term, the Restrictions, the benefit payable
      under any SAR, Performance Unit or Performance Share and whether or not
      specific Awards shall be granted in connection with other specific Awards,
      and if so whether they shall be exercisable cumulatively with, or
      alternatively to, such other specific
Awards;

            

    

     

    
      	
               
      

            	
              (b)

            	
              to
      determine the amount, if any, that a Grantee shall pay for Restricted
      Shares, whether and on what terms to permit or require the payment of cash
      dividends thereon to be deferred, when Restrictions on Restricted Shares
      (including Restricted Shares acquired upon the exercise of an Option)
      shall  lapse and whether such shares shall be held in
      escrow;

            

    

     

    
      	
               
      

            	
              (c)

            	
              to
      construe and interpret the Plan and to make all determinations necessary
      or advisable for the administration of the
Plan;

            

    

     

    
      	
               
      

            	
              (d)

            	
              to
      make, amend, and rescind rules relating to the Plan, including rules with
      respect to the exercisability and nonforfeitability of Awards and lapse of
      Restrictions upon the Termination of Affiliation of a
    Grantee;

            

    

     

    
      	
               
      

            	
              (e)

            	
              to
      determine the terms and conditions of all Award Agreements (which need not
      be identical) and, with the consent of the Grantee, to amend any such
      Award Agreement at any time, among other things, to permit transfers of
      such Awards to the extent permitted by the Plan; provided that the
      consent of the Grantee shall not be required for any amendment which (A)
      does not adversely affect the rights of the Grantee, or (B) is necessary
      or advisable (as determined by the Board) to carry out the purpose of the
      Award as a result of any new or change in existing applicable
      law;

            

    

     

    
      	
               
      

            	
              (f)

            	
              to
      cancel, with the consent of the Grantee, outstanding Awards and to grant
      new Awards in substitution therefor; provided that any
      replacement grant that would be considered a repricing shall be subject to
      shareholder approval;

            

    

     

    
      
         

      

      
        - 9
-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (g)

            	
              to
      accelerate the exercisability (including exercisability within a period of
      less than six months after the Grant Date) of, and to accelerate or waive
      any or all of the terms  conditions or Restrictions applicable
      to, any Award or any group of Awards for any reason and at any time,
      including in connection with a Termination of
  Affiliation;

            

    

     

    
      	
               
      

            	
              (h)

            	
              subject
      to Section 5.3, to extend the time during which any Award or group of
      Awards may be exercised;

            

    

     

    
      	
               
      

            	
              (i)

            	
              to
      make such adjustments or modifications to Awards to Grantees who are
      working outside the United States as are advisable to fulfill the purposes
      of the Plan or to comply with applicable local law, and to authorize
      foreign Subsidiaries to adopt plans as provided in Article
    15;

            

    

     

    
      	
               
      

            	
              (j)

            	
              to
      delegate to any member of the Board or committee of Board members such of
      its powers as it deems appropriate, including the power to subdelegate,
      except that only a member of the Board of Directors of the Company (or a
      committee thereof) may grant Awards from time to time to specified
      categories of Eligible Persons in amounts and on terms to be specified by
      the Board; provided that no such grants shall be made other than by the
      Board or the Plan Committee to individuals who are then Section 16 Persons
      or other than by the Plan Committee to individuals who are then or are
      deemed likely to become a "covered employee" within the meaning of Code
      Section 162(m);

            

    

     

    
      	
               
      

            	
              (k)

            	
              to
      delegate to officers, employees or independent contractors of the Company
      matters involving the routine administration of the Plan and which are not
      specifically required by any provision of the Plan  to be
      performed by the Board of Directors of the
  Company;

            

    

     

    
      	
               
      

            	
              (l)

            	
              to
      delegate its duties and responsibilities under the Plan with respect to
      foreign Subsidiary plans, except its duties and responsibilities with
      respect to Section 16 Persons, and (A) the acts of such delegates shall be
      treated hereunder as acts of the Board and (B) such delegates shall report
      to the Board regarding the delegated duties and
      responsibilities;

            

    

     

    
      	
               
      

            	
              (m)

            	
              to
      correct any defect or supply any omission or reconcile any inconsistency,
      and construe and interpret the Plan, the rules and regulations, any Award
      Agreement or any other instrument entered into or relating to an Award
      under the Plan, and to make all determinations, including factual
      determinations, necessary or advisable for the administration of the
      Plan;

            

    

     

    
      	
               
      

            	
              (n)

            	
              to
      impose such additional terms and conditions upon the grant, exercise or
      retention of Awards as the Board may, before or concurrently with the
      grant thereof, deem appropriate, including limiting the percentage of
      Awards which may from time to time be exercised by a Grantee;
      and

            

    

     

    
      
         

      

      
        - 10
-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (o)

            	
              to
      take any other action with respect to any matters relating to the Plan for
      which it is responsible.

            

    

     

    All
determinations on any matter relating to the Plan or any Award Agreement may be
made in the sole and absolute discretion of the Board, and to the fullest extent
permitted by the applicable law all such determinations of the Board shall be
final, conclusive and binding on all Persons.  To the fullest extent
permitted by the applicable law no member of the Board shall be liable for any
action or determination made with respect to the Plan or any Award.

     

    
      Article
4.  Shares Subject to the Plan

    

     

    
      	
               
      

            	
              4.1.

            	
              Number of Shares
      Available.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Plan
      Limit.  Subject to adjustment as provided in Section 4.2,
      the number of Shares hereby reserved for delivery under the Plan is ten
      million (10,000,000) Shares.  The maximum number of Shares that
      may be delivered pursuant to the exercise of Options (including incentive
      stock options under Code Section 422) or SARs is ten million (10,000,000
      Shares. The maximum number of Shares that may be delivered as Restricted
      Shares or pursuant to Performance Units or Restricted Stock Units is three
      million (3,000,000) Shares.  The maximum number of Bonus Shares
      that may be awarded is one million (1,000,000) Shares.  If any
      Shares subject to an Award granted hereunder are forfeited or an Award or
      any portion thereof otherwise terminates or is settled without the
      issuance of Shares, the Shares subject to such Award, to the extent of any
      such forfeiture, termination or settlement, shall again be available for
      grant under the Plan.  The Board may from time to time determine
      the appropriate methodology for calculating the number of Shares issued
      pursuant to the Plan.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Individual
      Limit.  No individual Grantee may be granted Options,
      SARs, Restricted Shares, Restricted Stock Units, Bonus Shares, Performance
      Units or Performance Shares in Shares, or in any combination thereof,
      relating to an aggregate number of Shares under the Plan that exceeds two
      million (2,000,000) Shares in any 5-year period.  If a
      previously granted Option, SAR, Restricted Stock Unit, Performance Unit,
      or Performance Share is forfeited, canceled or repriced, such forfeited,
      canceled or repriced Award as the case may be, shall continue to be
      counted against the maximum number of Shares subject to Awards that may be
      delivered to any Grantee under this Section
  4.1(b).

            

    

     

    
      
         

      

      
        - 11
-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              4.2.

            	
              Adjustments in
      Shares.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Adjustment
      Principle.  In the event that the Board determines that
      any dividend or other distribution (whether in the form of cash, Shares,
      other securities, or other property), recapitalization, share split,
      reverse share split, subdivision, consolidation or reduction of capital,
      reorganization, merger, scheme of arrangement, split-up, spin-off or
      combination involving the Company or repurchase or exchange of Shares or
      other rights to purchase Shares or other securities of the Company, or
      other similar corporate transaction or event affects the Shares such that
      any adjustment is determined by the Board to be appropriate in order to
      prevent dilution or enlargement of the benefits or potential benefits
      intended to be made available under the Plan, then the Board shall, in
      such manner as it may deem equitable, adjust any or all of (i) the number
      and type of Shares (or other securities or property of the Company or any
      Person that is a party to a Reorganization Transaction with the Company)
      with respect to which Awards may be granted, (ii) the number and type of
      Shares (or other securities or property of the Company or any Person that
      is a party to a Reorganization Transaction with the Company) subject to
      outstanding Awards, and (iii) the grant or exercise price with respect to
      any Award or, if deemed appropriate, make provision for a cash payment to
      the holder of an outstanding Award or the substitution of other property
      for Shares subject to an outstanding Award; provided, that the number of
      Shares subject to any Award denominated in Shares shall always be a whole
      number.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Example.  By
      way of illustration, and not by way of limitation, the following
      illustrates how the foregoing adjustment principles would apply in the
      context of a stock split:  Assume a Grantee holds an Option to
      purchase 1,000 shares of Company stock at an Option Price of $50 per
      share.  Assume further that the Company completes a two-for-one
      share split such that every shareholder on the requisite record date
      receives two Shares  for every one Share held on the record
      date.  Pursuant to the adjustment principles set forth above in
      Section 4.2(a), the Grantee's Option would be adjusted such that, after
      such adjustment, the Grantee would hold an Option to purchase 2,000 Shares
      at an Option Price of $25 per Share.  All other terms and
      conditions of the Option would remain the same.  Similar
      adjustment principles would apply to SARs, Performance Shares, Performance
      Units, Bonus Shares and Deferred Shares.  This Section 4.2(b) is
      for illustrative purposes only, assumes hypothetical facts, and shall not,
      under any event or circumstance, be interpreted as the adjustment outcome
      with respect to specific factual
situations.

            

    

     

    
      Article
5.  Eligibility and General Conditions of Awards

    

     

    
      	
               
      

            	
              5.1.

            	
              Eligibility.  The
      Board may grant Awards to any Eligible Person, whether or not he or she
      has previously received an Award.

            

    

     

    
      	
               
      

            	
              5.2.

            	
              Grant
      Date.  The Grant Date of an Award shall be the date on
      which the Board grants the Award or such later date as specified by the
      Board (i) in the Board's resolutions or minutes addressing the Award
      grants or (ii) in the Award
Agreement.

            

    

     

    
      
         

      

      
        - 12
-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              5.3.

            	
              Maximum
      Term.  Subject to the following proviso, the Option Term
      or other period during which an Award may be outstanding shall not extend
      more than 10 years after the Grant Date, and shall be subject to earlier
      termination as herein specified.

            

    

     

    
      	
               
      

            	
              5.4.

            	
              Award
      Agreement.  To the extent not set forth in the Plan, the
      terms and conditions of each Award (which need not be the same for each
      grant or for each Grantee) shall be set forth in an Award
      Agreement.

            

    

     

    
      	
               
      

            	
              5.5.

            	
              Restrictions on Share
      Transferability.  The Board may include in the Award
      Agreement such restrictions on any Shares acquired pursuant to the
      exercise or vesting of an Award as it may deem advisable, including
      restrictions under applicable federal securities
  laws.

            

    

     

    
      	
               
      

            	
              5.6.

            	
              Termination of
      Affiliation.  Except as otherwise provided in an Award
      Agreement (including an Award Agreement as amended by the Board pursuant
      to Section 3.2), and subject to the provisions of Section 13.1, the extent
      to which the Grantee shall have the right to exercise, vest in, or receive
      payment in respect of an Award following Termination of Affiliation shall
      be determined in accordance with the following provisions of this Section
      5.6.

            

    

     

    
      	
               
      

            	
              (a)

            	
              For
      Cause.  If a Grantee has a Termination of Affiliation for
      Cause:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Grantee's Restricted Shares that are forfeitable immediately before such
      Termination of Affiliation shall automatically be forfeited on such date,
      subject in the case of Restricted Shares to the provisions of Section 8.5
      regarding repayment of certain amounts to the
  Grantee;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Grantee's Restricted Stock Units shall automatically be forfeited;
      and

            

    

     

    
      	
               
      

            	
              (iii)

            	
              any
      unexercised Option or SAR, and any Performance Share or Performance Unit
      with respect to which the Performance Period has not ended immediately
      before such Termination of Affiliation, shall terminate effective
      immediately upon such Termination of
  Affiliation.

            

    

     

    
      	
               
      

            	
              (b)

            	
              On Account of Death or
      Disability.  If a Grantee has a Termination of
      Affiliation on account of death or
Disability:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Grantee's Restricted Shares that were forfeitable immediately before such
      Termination of Affiliation shall thereupon become
      nonforfeitable;

            

    

     

    
      
         

      

      
        - 13
-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (ii)

            	
              the
      Grantee’s Restricted Stock Units shall immediately be settled in
      accordance with Section 9.4;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              any
      unexercised Option or SAR, whether or not exercisable immediately before
      such Termination of Affiliation, shall be fully exercisable and may be
      exercised, in whole or in part, at any time up to one year after such
      Termination of Affiliation (but only during the Option Term or SAR Term,
      respectively) by the Grantee or, after his or her death, by (A) his or her
      personal representative or the person to whom the Option or SAR, as
      applicable, is transferred by will or the applicable laws of descent and
      distribution, or (B) the Grantee's beneficiary designated in accordance
      with Article 11; and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      benefit payable with respect to any Performance Share or Performance Unit
      with respect to which the Performance Period has not ended immediately
      before such Termination of Affiliation on account of death or Disability
      shall be equal to the product of the Fair Market Value of a Share as of
      the date of such Termination of Affiliation or the value of the
      Performance Unit specified in the Award Agreement (determined as of the
      date of such Termination of Affiliation), as applicable, multiplied
      successively by each of the
following:

            

    

     

    (A)         a
fraction, the numerator of which is the number of months (including as a whole
month any partial month) that have elapsed since the beginning of such
Performance Period until the date of such Termination of Affiliation and the
denominator of which is the number of months (including as a whole month any
partial month) in the Performance Period; and

     

    (B)         
a percentage determined by the Plan Committee that would be earned under the
terms of the applicable Award Agreement assuming that the rate at which the
performance goals have been achieved as of the date of such Termination of
Affiliation would continue until the end of the Performance Period, or, if the
Board elects to compute the benefit after the end of the Performance Period, the
Performance percentage, as determined by the Board, attained during the
Performance Period.

     

    
      	
               
      

            	
              (c)

            	
              Change of Control
      Period.  If a Grantee has a Termination of Affiliation
      during the period ("Change of Control Period") commencing on a Change of
      Control and ending on the first anniversary of the Change of Control,
      which Termination of Affiliation is initiated by the Company or a
      Subsidiary other than for Cause, or initiated by the Grantee for Good
      Reason, then

            

    

     

    
      
         

      

      
        - 14
-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (i)

            	
              the
      Grantee’s Restricted Shares that were forfeitable shall thereupon become
      nonforfeitable;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Grantee’s Restricted Stock Units shall immediately be settled in
      accordance with Section 9.4;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              any
      unexercised Option or SAR, whether or not exercisable on the date of such
      Termination of Affiliation, shall thereupon be fully exercisable and may
      be exercised, in whole or in part for ninety (90) days following such
      Termination of Affiliation (but only during the Option Term or SAR Term,
      respectively); and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              the
      Company shall immediately pay to the Grantee, with respect to any
      Performance Share or Performance Unit with respect to which the
      Performance Period has not ended as of the date of such Termination of
      Affiliation, a cash payment equal to the product of (A) in the case of a
      Performance Share, the Change of Control Value or (B) in the case of a
      Performance Unit, the value of the Performance Unit specified in the Award
      Agreement, as applicable, multiplied successively by each of the
      following:

            

    

     

    (A)      a
fraction, the numerator of which is the number of whole and partial months that
have elapsed between the beginning of such Performance Period and the date of
such Termination of Affiliation and the denominator of which is the number of
whole and partial months in the Performance Period; and

     

    (B)       a
percentage equal to a greater of (x) the target percentage, if any, specified in
the applicable Award Agreement or (y) the maximum percentage, if any, that would
be earned under the terms of the applicable Award Agreement assuming that the
rate at which the performance goals have been achieved as of the date of such
Termination of Affiliation would continue until the end of the Performance
Period.

     

    
      	
               
      

            	
              (d)

            	
              Any Other
      Reason.  If a Grantee has a Termination of Affiliation
      for any reason other than for Cause, death or Disability, and other than
      under the circumstances described in Section 5.6(c),
  then:

            

    

     

    
      	
               
      

            	
              (i)

            	
              the
      Grantee's Restricted Shares, to the extent forfeitable immediately before
      such Termination of Affiliation, shall thereupon automatically be
      forfeited, subject in the case of Restricted Shares to the provisions of
      Section 8.5 regarding repayment of certain amounts to the
      Grantee;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      Grantee's Restricted Stock Units shall automatically be
      forfeited;

            

    

     

    
      
         

      

      
        - 15
-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (iii)

            	
              any
      unexercised Option or SAR, to the extent exercisable immediately before
      such Termination of Affiliation, shall remain exercisable in whole or in
      part for ninety (90) days after such Termination of Affiliation (but only
      during the Option Term or SAR Term, respectively) by the Grantee or, after
      his or her death, by (A) his or her personal representative or the person
      to whom the Option or SAR, as applicable, is transferred by will or the
      applicable laws of descent and distribution, or (B) the Grantee's
      beneficiary designated in accordance with Article 11;
  and

            

    

     

    
      	
               
      

            	
              (iv)

            	
              any
      Performance Shares or Performance Units with respect to which the
      Performance Period has not ended as of the date of such Termination of
      Affiliation shall terminate immediately upon such Termination of
      Affiliation.

            

    

     

    
      	
               
      

            	
              5.7.

            	
              Nontransferability of
      Awards.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Except
      as provided in Section 5.7(c) below, each Award, and each right under any
      Award, shall be exercisable only by the Grantee during the Grantee's
      lifetime, or, if permissible under applicable law, by the Grantee's
      guardian or legal representative.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Except
      as provided in Section 5.7(c) below, no Award (prior to the time, if
      applicable, Shares are issued in respect of such Award), and no right
      under any Award, may be assigned, alienated, pledged, attached, sold or
      otherwise transferred or encumbered by a Grantee otherwise than by will or
      by the laws of descent and distribution and any such purported assignment,
      alienation, pledge, attachment, sale, transfer or encumbrance shall be
      void and unenforceable against the Company or any Subsidiary; provided, that the
      designation of a beneficiary shall not constitute an assignment,
      alienation, pledge, attachment, sale, transfer or
    encumbrance.

            

    

     

    
      	
               
      

            	
              (c)

            	
              To
      the extent and in the manner permitted by the Board, and subject to such
      terms and conditions as may be prescribed by the Board, a Grantee may
      transfer an Award to (a) a child, stepchild, grandchild, parent,
      stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
      mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law,
      or sister-in-law of the Grantee, (including adoptive relationships), (b)
      any person sharing the Grantee's household (other than a tenant or
      employee), (c) a trust in which persons described in (a) or (b) have more
      than 50% of the beneficial interest, (d) a foundation in which persons
      described in (a) or (b) or the Grantee own more than 50% of the voting
      interests; provided such transfer is not for value.  The
      following shall not be considered transfers for value:  (i) a
      transfer under a domestic relations order in settlement of marital
      property rights; and (ii) a transfer to an entity in which more than 50%
      of the voting interests are owned by persons described in (a) or (b) above
      or the Grantee, in exchange for an interest in that
  entity.

            

    

    
      
         

      

      
        - 16
-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              5.8.

            	
              Section 162(m)
      Performance Awards.

            

    

     

    
      	
               
      

            	
              (a)

            	
              General. Any
      type of Award that is eligible to be granted under the Plan may be granted
      to officers and employees as awards intended to satisfy the requirements
      of "performance-based compensation" within the meaning of Section 162(m)
      of the Code ("Performance
      Awards").  The grant, vesting, exercisability or payment
      of Performance Awards may depend on the degree of achievement of one or
      more performance goals relative to a preestablished target level or levels
      using one or more of the Business Criteria set forth
  below.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Class. The
      eligible class of persons to receive Performance Awards shall be any
      hourly or salaried officer or employee of the Company or one of its
      subsidiaries.  The Plan Committee approving Performance Awards
      or making any certification required pursuant to Section 5.8(c) must be
      constituted as provided for in Section 3.1 for awards that are intended as
      performance-based compensation under Section 162(m) of the
      Code.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Performance
      Goals.  The specific performance goals for Performance
      Awards shall be, on an absolute or relative basis, established based on
      one or more of the following business criteria ("Business
      Criteria") for the Company on a segregated or consolidated basis or
      for one or more of the Company's subsidiaries, segments, divisions, or
      business units, as selected by the Plan
  Committee:

            

    

     

    (i)           Earnings
(either in the aggregate or on a per-Share basis);

     

    (ii)          Operating
profit (either in the aggregate or on a per-Share basis);

     

    (iii)         Operating
income (either in the aggregate or on a per-Share basis);

     

    (iv)         Net
earnings on either a LIFO or FIFO basis (either in the aggregate or on a
per-Share basis);

     

    (v)          Net
income or loss (either in the aggregate or on a per-Share basis);

     

    (vi)         Ratio
of debt to debt plus equity;

     

    (vii)        Net
borrowing;

     

    (viii)       Credit
quality or debt ratings;

     

    (ix)         Inventory
levels, inventory turn or shrinkage;

    (x)          Cash
flow provided by operations (either in the aggregate or on a per-Share
basis);

     

    
      
        
        

      

      
        - 17
-

        
          

        

      

      
        
        

      

    

     

    (xi)          Free
cash flow (either in the aggregate or on a per-Share basis);

     

    (xii)         Reductions
in expense levels, determined either on a Company-wide basis or in respect of
any one or more business units;

     

    (xiii)       Operating
and maintenance cost management and employee productivity;

     

    (xiv)       Gross
margin;

     

    (xv)        Return
measures (including return on assets, equity, or sales);

     

    (xvi)       Productivity
increases;

     

    (xvii)      Share
price (including attainment of a specified per-Share price during the relevant
performance period; growth measures and total shareholder return or attainment
by the Shares of a specified price for a specified period of time);

     

    (xviii)     Where
applicable, growth or rate of growth of any of the above Business Criteria set
forth in this Section 5.8(c);

     

    (xix)        Strategic
business criteria, consisting of one or more objectives based on meeting
specified revenue, market share, market penetration, geographic business
expansion goals, objectively identified project milestones, production volume
levels, cost targets, and goals relating to acquisitions or
divestitures;

     

    (xx)         Achievement
of business or operational goals such as market share and/or business
development; and/or

     

    (xxi)        Accomplishment
of mergers, acquisitions, dispositions, public offerings or similar
extraordinary business transactions;

     

    provided
that applicable Business Criteria may be applied on a pre- or post-tax basis;
and provided further that the Plan Committee may, when the applicable
performance goals are established, provide that the formula for such goals may
include or exclude items to measure specific objectives, such as losses from
discontinued operations, extraordinary gains or losses, the cumulative effect of
accounting changes, acquisitions or divestitures, foreign exchange impacts and
any unusual, nonrecurring gain or loss.  As established by the Plan
Committee, the Business Criteria may include, without limitation, GAAP and
non-GAAP financial measures. In addition to the foregoing performance goals, the
performance goals shall also include any performance goals which are set forth
in a Company bonus or incentive plan, if any, which has been approved by the
Company's shareholders, which are incorporated herein by reference. Such
performance goals shall be set by the Plan Committee within the time period
prescribed by, and shall otherwise comply with the requirements of, Code Section
162(m).

    
      
         

      

      
        - 18
-

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              (d)

            	
              Flexibility as to
      Timing, Weighting, Applicable Business Unit.  For Awards
      intended to comply with the performance-based exception to Code Section
      162(m), the Plan Committee shall set the Business Criteria within the time
      period prescribed by Section 162(m) of the Code. The levels of performance
      required with respect to Business Criteria may be expressed in absolute or
      relative levels and may be based upon a set increase, set positive result,
      maintenance of the status quo, set decrease or set negative result.
      Business Criteria may differ for Awards to different Grantees. The Plan
      Committee shall specify the weighting (which may be the same or different
      for multiple objectives) to be given to each performance objective for
      purposes of determining the final amount payable with respect to any such
      Award. Any one or more of the Business Criteria may apply to a Grantee, to
      the Company as a whole, to one or more Subsidiaries or to a department,
      unit, division or function within the Company, within any one or more
      Subsidiaries or any one or more joint ventures of which the Company is a
      party, and may apply either alone or relative to the performance of other
      businesses or individuals (including industry or general market
      indices).

            

    

     

    
      	
               
      

            	
              (e)

            	
              Discretion to
      Adjust.  The Plan Committee shall have the discretion to
      adjust the determinations of the degree of attainment of the
      pre-established performance goals; provided, however, that Awards which
      are designed to qualify for the performance-based exception under Code
      Section 162(m) may not (unless the Plan Committee determines to amend the
      Award so that it no longer qualifies for such performance-based exception)
      be adjusted upward. The Plan Committee shall retain the discretion to
      adjust such Awards downward. The Plan Committee may not, unless the Plan
      Committee determines to amend the Award so that it no longer qualifies for
      the performance-based exception, delegate any responsibility with respect
      to Awards intended to qualify for such performance-based exception. All
      determinations by the Plan Committee as to the achievement of the Business
      Criteria shall be certified in writing prior to payment of the
      Award.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Alteration of
      Performance Measures.  In the event that applicable laws
      allow an Award to qualify for the performance-based exception to Code
      Section 162(m) even if the Plan Committee alters the governing Business
      Criteria without obtaining shareholder approval, the Plan Committee shall
      have sole discretion to make such changes without obtaining shareholder
      approval.

            

    

    
      
         

      

      
        - 19
-

        
          

        

      

      
         

      

    

    
      Article
6.  Stock Options

    

     

    
      	
               
      

            	
              6.1.

            	
              Grant of
      Options.  Subject to the terms and provisions of the
      Plan, Options may be granted to any Eligible Person in such number, and
      upon such terms, and at any time and from time to time as shall be
      determined by the Board.  Without limiting the generality of the
      foregoing, the Board may grant to any Eligible Person, or permit any
      Eligible Person to elect to receive, an Option in lieu of or in
      substitution for any other compensation (whether payable currently or on a
      deferred basis, and whether payable under the Plan or otherwise) which
      such Eligible Person may be eligible to receive from the Company or a
      Subsidiary, which Option may have a value (as determined by the Board
      under Black-Scholes or any other option valuation method) that is equal to
      or greater than the amount of such other
  compensation.

            

    

     

    
      	
               
      

            	
              6.2.

            	
              Award
      Agreement.  Each Option grant shall be evidenced by an
      Award Agreement that shall specify the Option Price, the Option Term, the
      number of shares to which the Option pertains, the time or times at which
      such Option shall be exercisable and such other provisions as the Board
      shall determine.

            

    

     

    
      	
               
      

            	
              6.3.

            	
              Option
      Price.  The Option Price of an Option under the Plan
      shall be determined by the Board, and shall be the higher of 100% of the
      Fair Market Value of a Share on the Grant Date or 100% of the par value of
      a Share; provided,
      however, that any Option ("Substitute Option") that is (x) granted
      to a Grantee in connection with the acquisition ("Acquisition"), however
      effected, by the Company of another corporation or entity ("Acquired
      Entity") or the assets thereof, (y) associated with an option to purchase
      shares of stock or other equity interest of the Acquired Entity or an
      affiliate thereof ("Acquired Entity Option") held by such Grantee
      immediately prior to such Acquisition, and (z) intended to preserve for
      the Grantee the economic value of all or a portion of such Acquired Entity
      Option, shall be granted such that such option substitution is completed
      in conformity with the rules set forth in Section 424(a) of the
      Code.

            

    

     

    
      	
               
      

            	
              6.4.

            	
              Grant of Incentive
      Stock Options.

            

    

     

    
      	
               
      

            	
              (a)

            	
              At
      the time of the grant of any Option to an Eligible Person who is an
      employee of the Company or a Subsidiary, the Board may designate that such
      option shall be made subject to additional restrictions to permit it to
      qualify as an "incentive stock option" under the requirements of Section
      422 of the Code.  Any option designated as an incentive stock
      option:

            

    

     

    
      	
               
      

            	
              (i)

            	
              shall
      not be granted to a person who owns shares (including shares treated as
      owned under Section 424(d) of the Code) possessing more than 10% of the
      total combined voting power of all classes of shares of the
      Company;

            

    

    
      	
               
      

            	
              (ii)

            	
              shall
      be for a term of not more than 10 years from the Grant Date, and shall be
      subject to earlier termination as provided herein or in the applicable
      Award Agreement;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              shall
      not have an aggregate Fair Market Value (determined for each incentive
      stock option at its Grant Date) of Shares with respect to which incentive
      stock options are exercisable for the first time by such Grantee during
      any calendar year (under the Plan and any other employee stock option plan
      of the Grantee's employer or any parent or Subsidiary thereof ("Other
      Plans")), determined in accordance with the provisions of Section 422 of
      the Code, which exceeds $100,000 (the "$100,000
  Limit");

            

    

     

    
      
        
        

      

      
        - 20
-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (iv)

            	
              shall,
      if the aggregate Fair Market Value of a Share (determined on the Grant
      Date) with respect to the portion of such grant which is exercisable for
      the first time during any calendar year ("Current Grant") and all
      incentive stock options previously granted under the Plan and any Other
      Plans which are exercisable for the first time during a calendar year
      ("Prior Grants") would exceed the $100,000 Limit, be exercisable as
      follows:

            

    

     

    (A)       
  the portion of the Current Grant which would, when added to any
Prior Grants, be exercisable with respect to Shares which would have an
aggregate Fair Market Value (determined as of the respective Grant Date for such
options) in excess of the $100,000 Limit shall, notwithstanding the terms of the
Current Grant, be exercisable for the first time by the Grantee in the first
subsequent calendar year or years in which it could be exercisable for the first
time by the Grantee when added to all Prior Grants without exceeding the
$100,000 Limit; and

     

    (B)           if,
viewed as of the date of the Current Grant, any portion of a Current Grant could
not be exercised under the preceding provisions of this Subsection (iv) during
any calendar year commencing with the calendar year in which it is first
exercisable through and including the last calendar year in which it may by its
terms be exercised, such portion of the Current Grant shall not be an incentive
stock option, but shall be exercisable as a separate Option at such date or
dates as are provided in the Current Grant;

     

    
      	
               
      

            	
              (v)

            	
              shall
      be granted within 10 years from the earlier of the date the Plan is
      adopted or the date the Plan is approved by the shareholders of the
      Company;

            

    

     

    
      	
               
      

            	
              (vi)

            	
              shall
      require the Grantee to notify the Board of any disposition of any Shares
      issued pursuant to the exercise of the incentive stock option under the
      circumstances described in Section 421(b) of the Code (relating to certain
      disqualifying dispositions), within 10 days of such disposition;
      and

            

    

    
      	
               
      

            	
              (vii)

            	
              shall
      by its terms not be assignable or transferable other than by will or the
      laws of descent and distribution and may be exercised, during the
      Grantee's lifetime, only by the Grantee; provided, however, that the
      Grantee may, to the extent provided in the Plan in any manner specified by
      the Board, designate in writing a beneficiary to exercise such incentive
      stock option after the Grantee's
death.

            

    

     

    
      
        
        

      

      
        - 21
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    Notwithstanding
the foregoing, the Board may, without the consent of the Grantee, at any time
before the exercise of an option (whether or not an incentive stock option),
take any action necessary to prevent such option from being treated as an
incentive stock option.

     

    
      	
               
      

            	
              6.5.

            	
              Exercise of
      Options.  Options shall be exercised by the delivery of a
      written notice of exercise to the Company or its designee, setting forth
      the number of Shares with respect to which the Option is to be exercised,
      accompanied by full payment for the Shares as instructed by the Board or,
      subject to the approval of the Board pursuant to procedures approved by
      the Board,

            

    

     

    
      	
               
      

            	
              (a)

            	
              through
      the sale of the Shares acquired on exercise of the Option through a
      broker-dealer to whom the Grantee has submitted an irrevocable notice of
      exercise and irrevocable instructions to deliver promptly to the Company
      the amount of sale or loan proceeds sufficient to pay for such Shares,
      together with, if requested by the Company, the amount of federal, state,
      local or foreign withholding taxes payable by Grantee by reason of such
      exercise,

            

    

     

    
      	
               
      

            	
              (b)

            	
              through
      simultaneous sale through a broker of Shares acquired on exercise, as
      permitted under Regulation T of the Federal Reserve
  Board,

            

    

     

    
      	
               
      

            	
              (c)

            	
              by
      transfer to the Company of the number of Shares then owned by the Grantee,
      the Fair Market Value of which equals the purchase price of the Shares
      purchased in connection with the Option exercise, properly endorsed for
      transfer to the Company; provided however, that Shares used for this
      purpose must have been held by the Grantee for such minimum period of time
      as may be established from time to time by the Board; and provided further
      that the Fair Market Value of any Shares delivered in payment of the
      purchase price upon exercise of the Options shall be the Fair Market Value
      as of the exercise date, which shall be the date of delivery of the
      certificates for the Stock used as payment of the exercise
      price.  For purposes of this Section 6.5(c), in lieu of actually
      transferring to the Company the number of Shares then owned by the
      Grantee, the Board may, in its discretion permit the Grantee to submit to
      the Company a statement affirming ownership by the Grantee of such number
      of Shares and request that such Shares, although not actually transferred,
      be deemed to have been transferred by the Grantee as payment of the
      exercise price, or

            

    

    
      	
               
      

            	
              (d)

            	
              by
      a "net exercise" arrangement pursuant to which the Company will not
      require a payment of the Option Price but will reduce the number of Shares
      upon the exercise by the largest number of whole shares that has a Fair
      Market Value on the date of exercise that does not exceed the aggregate
      Option Price.  With respect to any remaining balance of the
      aggregate option price, the Company will accept a cash payment from the
      Grantee. Notwithstanding the foregoing, a "net exercise" arrangement will
      not be an eligible exercise method for incentive stock options unless and
      until the Company and its advisors conclude that such method of exercise
      may be utilized without resulting in a disqualification of the incentive
      stock option.

            

    

     

    
      
        
        

      

      
        - 22
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      Article
7.  Stock Appreciation Rights

    

     

    
      	
               
      

            	
              7.1.

            	
              Grant of
      SARs.  Subject to the terms and conditions of the Plan,
      SARs may be granted to any Eligible Person at any time and from time to
      time as shall be determined by the Board in its sole
      discretion.  The Board may grant Freestanding SARs or Tandem
      SARs, or any combination thereof.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Number of
      Shares.  The Board shall have complete discretion to
      determine the number of SARs granted to any Grantee, subject to the
      limitations imposed in the Plan and by applicable
  law.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Exercise Price and
      Other Terms.  All SARs shall be granted with an exercise
      price no less than the Fair Market Value of the underlying Shares on the
      SARs' Grant Date.  The Board, subject to the provisions of the
      Plan, shall have complete discretion to determine the terms and conditions
      of SARs granted under the Plan.  The exercise price per Share of
      Tandem SARs shall equal the exercise price per Share of the related
      Option.

            

    

     

    
      	
               
      

            	
              7.2.

            	
              SAR Award
      Agreement.  Each SAR granted under the Plan shall be
      evidenced by a written SAR Award Agreement which shall be entered into by
      the Company and the Grantee to whom the SAR is granted and which shall
      specify the exercise price per share, the SAR Term, the conditions of
      exercise, and such other terms and conditions as the Board in its sole
      discretion shall determine.

            

    

     

    
      	
               
      

            	
              7.3.

            	
              Exercise of
      SARs.  SARs shall be exercised by the delivery of a
      written notice of exercise to the Company or its designee, setting forth
      the number of Shares over which the SAR is to be
      exercised.  Tandem SARs (a) may be exercised with respect to all
      or part of the Shares subject to the related Option upon the surrender of
      the right to exercise the equivalent portion of the related Option; (b)
      may be exercised only with respect to the Shares for which its related
      Option is then exercisable; and (c) may be exercised only when the Fair
      Market Value of the Shares subject to the Option exceeds the Option Price
      of the Option.  The value of the payment with respect to the
      Tandem SAR may be no more than 100% of the difference between the Option
      Price of the underlying Option and the Fair Market Value of the Shares
      subject to the underlying Option at the time the Tandem SAR is
      exercised.

            

    

    
      	
               
      

            	
              7.4.

            	
              Expiration of
      SARs.  A SAR granted under the Plan shall expire on the
      date set forth in the SAR Award Agreement, which date shall be determined
      by the Board in its sole discretion.  Unless otherwise
      specifically provided for in the SAR Award agreement, a Tandem SAR granted
      under the Plan shall be exercisable at such time or times and only to the
      extent that the related Option is exercisable.  The Tandem SAR
      shall terminate and no longer be exercisable upon the termination or
      exercise of the related Options, except that Tandem SARs granted with
      respect to less than the full number of Shares covered by a related Option
      shall not be reduced until the exercise or termination of the related
      Option exceeds the number of Shares not covered by the
    SARs.

            

    

    
       

      
        
          
          

        

        
          - 23
-

          
            

          

        

        
          
          

        

      

    

     

    
      	
               
      

            	
              7.5.

            	
              Payment of SAR
      Amount.  Upon exercise of a SAR, a Grantee shall be
      entitled to receive payment from the Company in an amount determined by
      multiplying (i) the positive difference between the Fair Market Value of a
      Share on the date of exercise over the exercise price per Share by (ii)
      the number of Shares with respect to which the SAR is
      exercised.  The payment upon a SAR exercise shall be solely in
      whole Shares of equivalent value.  Fractional Shares shall be
      rounded down to the nearest whole Share with no cash consideration being
      paid upon exercise.

            

    

     

    
      Article
8.  Restricted Shares and Bonus Shares

    

     

    
      	
               
      

            	
              8.1.

            	
              Grant of Restricted
      Shares.  Subject to the terms and provisions of the Plan,
      the Board, at any time and from time to time, may grant Restricted Shares
      to any Eligible Person in such amounts as the Board shall
      determine.

            

    

     

    
      	
               
      

            	
              8.2.

            	
              Bonus
      Shares.  Subject to the terms of the Plan, the Board may
      grant Bonus Shares to any Eligible Person, in such amount and upon such
      terms and at any time and from time to time as shall be determined by the
      Board.  Bonus Shares shall be Shares issued without any
      Restriction.

            

    

     

    
      	
               
      

            	
              8.3.

            	
              Award
      Agreement.  Each grant of Restricted Shares shall be
      evidenced by an Award Agreement, which shall specify the Restrictions and
      the Period(s) of Restriction, the number of Restricted Shares granted, and
      such other provisions as the Board shall determine.  The Board
      may impose such Restrictions on any Restricted Shares as it may deem
      advisable, including Restrictions based upon the achievement of specific
      performance goals (Company-wide, divisional, Subsidiary or individual),
      time-based Restrictions on vesting or Restrictions under applicable
      securities laws; provided that in all cases, the Restricted Shares shall
      be subject to a minimum two-year graduated vesting schedule (50% each
      year), except, if as provided in the Award Agreement, in the event of
      death, disability, Change of Control, Termination of Affiliation with Good
      Reason, or Termination of Affiliation by the Employer other than for
      Cause.

            

    

    
      	
               
      

            	
              8.4.

            	
              Consideration.  The
      Board shall determine the amount, if any, that a Grantee shall pay for
      Restricted Shares or Bonus Shares.  Such payment shall be made
      in full by the Grantee before the delivery of the shares and in any event
      no later than 10 business days after the Grant Date for such
      shares.

            

    

     

    
      	
               
      

            	
              8.5.

            	
              Effect of
      Forfeiture.  If Restricted Shares are forfeited, and if
      the Grantee was required to pay for such shares or acquired such
      Restricted Shares upon the exercise of an Option, the Grantee shall resell
      such Restricted Shares to the Company at a price equal to the lesser of
      (x) the amount paid by the Grantee for such Restricted Shares, or (y) the
      Fair Market Value of a Share on the date of such
      forfeiture.  The Company shall pay to the Grantee the required
      amount as soon as is administratively
practical.

            

    

     

    
      
        
        

      

      
        - 24
-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              8.6.

            	
              Escrow.  The
      Board may provide that any Restricted Shares or Bonus Shares shall be
      represented by, at the option of the Board, either book entry registration
      or by a stock certificate or certificates.  If the shares of
      Restricted Shares are represented by a certificate or certificates, such
      shares shall be  held (together with an assignment or
      endorsement executed in blank by the Grantee) in escrow by an escrow agent
      until such Restricted Shares become nonforfeitable or are
      forfeited.

            

    

     

    
      Article
9.  Restricted Stock Units (f/k/a "Deferred
Shares")

    

     

    9.1.          Grant of Restricted Stock
Units.  Subject to and consistent with the provisions of the
Plan and Code Sections 409A(a)(2), (3) and (4), the Board, at any time and from
time to time, may grant Restricted Stock Units to any Eligible Person, in such
amount and upon such terms as the Board shall determine. A Grantee shall have no
voting rights in Restricted Stock Units.

     

    9.2.          Award
Agreement.  Each grant of Restricted Stock Units shall be
evidenced by an Award Agreement that shall specify the Restrictions, the number
of Shares subject to the Restricted Stock Units granted, and such other
provisions as the Plan Committee shall determine in accordance with the Plan and
Code Section 409A.  The Plan Committee may impose such Restrictions on
Restricted Stock Units, including time-based Restrictions, Restrictions based on
the achievement of specific performance goals, time-based Restrictions following
the achievement of specific performance goals, Restrictions based on the
occurrence of a specified event, and/or restrictions under applicable securities
laws; provided that in all cases the Restricted Stock Units shall be subject to
a minimum two-year graduated vesting schedule (50% each year), except, if as
provided in the Award Agreement, in the event of death, Disability, Change of
Control, Termination of Affiliation with Good Reason, or Termination of
Affiliation by the Employer other than for Cause.

     

    9.3.          Crediting Restricted Stock
Units.  The Company shall establish an account ("RSU Account") on its
books for each Eligible Person who receives a grant of Restricted Stock Units.
Restricted Stock Units shall be credited to the Grantee's RSU Account as of the
Grant Date of such Restricted Stock Units. RSU Accounts shall be maintained for
recordkeeping purposes only and the Company shall not be obligated to segregate
or set aside assets representing securities or other amounts credited to RSU
Accounts. The obligation to make distributions of securities or other amounts
credited to RSU Accounts shall be an unfunded, unsecured obligation of the
Company.

    9.4.          Settlement of RSU
Accounts.  The Company shall settle an RSU Account by
delivering to the holder thereof (which may be the Grantee or his or her
Beneficiary, as applicable) a number of Shares equal to the whole number of
Shares underlying the Restricted Stock Units then credited to the Grantee's RSU
Account (or a specified portion in the event of any partial settlement);
provided that any fractional Shares underlying Restricted Stock Units remaining
in the RSU Account on the Settlement Date shall be distributed in cash in an
amount equal to the Fair Market Value of a Share as of the Settlement Date
multiplied by the remaining fractional Restricted Share Unit.  The
"Settlement Date" for all Restricted Stock Units credited to a Grantee's RSU
Account shall be the date when Restrictions applicable to an Award of Restricted
Stock Units have lapsed.

     

    
      
        
        

      

      
        - 25
-

        
          

        

      

      
        
        

      

    

     

    
      Article
10.  Performance Units and Performance Shares

    

     

    
      	
            	
              10.1.

            	
              Grant of Performance
      Units and Performance Shares.  Subject to the terms of
      the Plan, Performance Units or Performance Shares may be granted to any
      Eligible Person in such amounts and upon such terms, and at any time and
      from time to time, as the Board shall determine.  Each grant of
      Performance Units or Performance Shares shall be evidenced by an Award
      Agreement which shall specify the terms and conditions applicable to the
      Performance Units or Performance Shares, as the Board
      determines.

            

    

     

    
      	
            	
              10.2.

            	
              Value/Performance
      Goals.  Each Performance Unit shall have an initial value
      that is established by the Board at the time of grant, that is equal to
      the Fair Market Value of a Share on the Grant Date.  The Board
      shall set the Business Criteria which, depending on the extent to which
      they are met, will determine the number or value of Performance Units or
      Performance Shares that will be paid to the Grantee.  For
      purposes of this Article 10, the time period during which the performance
      goals must be met shall be called a "Performance Period."  The
      Board shall have complete discretion to establish the performance
      goals.

            

    

     

    
      	
            	
              10.3.

            	
              Payment of Performance
      Units and Performance Shares.  Subject to the terms of
      the Plan, after the applicable Performance Period has ended, the holder of
      Performance Units or Performance Shares shall be entitled to receive a
      payment based on the number and value of Performance Units or Performance
      Shares earned by the Grantee over the Performance Period, determined as a
      function of the extent to which the corresponding performance goals have
      been achieved.

            

    

     

    If a
Grantee is promoted, demoted or transferred to a different business unit of the
Company during a Performance Period, then, to the extent the Board determines
appropriate, the Board may adjust, change or eliminate the performance goals or
the applicable Performance Period as it deems appropriate in order to make them
appropriate and comparable to the initial performance goals or Performance
Period.

    
      	
            	
              10.4.

            	
              Form and Timing of
      Payment of Performance Units and Performance
      Shares.  Payment of earned Performance Units or
      Performance Shares shall be made in a lump sum following the close of the
      applicable Performance Period.  The Board may cause earned
      Performance Units or Performance Shares to be paid in cash or in Shares
      (or in a combination thereof) which have an aggregate Fair Market Value
      equal to the value of the earned Performance Units or Performance Shares
      at the close of the applicable Performance Period.  Such Shares
      may be granted subject to any restrictions deemed appropriate by the
      Board.  The form of payout of such Awards shall be set forth in
      the Award Agreement pertaining to the grant of the
  Award.

            

    

     

    
      
        
        

      

      
        - 26
-

        
          

        

      

      
        
        

      

    

     

    As
determined by the Board, a Grantee may be entitled to receive any dividends
declared with respect to Shares which have been earned in connection with grants
of Performance Units or Performance Shares but not yet distributed to the
Grantee.  In addition, a Grantee may, as determined by the Board, be
entitled to exercise his or her voting rights with respect to such
Shares.

     

    
      Article
11.  Beneficiary Designation

    

     

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

     

    
      Article
12.  Rights of Employees

    

     

    
      	
            	
              12.1.

            	
              Employment.  Nothing
      in the Plan shall interfere with or limit in any way the right of the
      Company to terminate any Grantee's employment at any time, nor confer upon
      any Grantee the right to continue in the employ of the
      Company.

            

    

     

    
      	
            	
              12.2.

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

            

    

     

    
      Article
13.  Amendment, Modification, and Termination

    

     

    
      	
            	
              13.1.

            	
              Amendment,
      Modification, and Termination.  Subject to the terms of
      the Plan, the Board of Directors of the Company may at any time and from
      time to time, alter, amend, suspend or terminate the Plan in whole or in
      part without the approval of the Company's shareholders, except to the
      extent the Board of Directors of the Company determines it is desirable to
      obtain approval of the Company's shareholders, to retain eligibility for
      exemption from the limitations of Code Section 162(m), to have available
      the ability for Options to qualify as ISOs, to comply with the
      requirements for listing on any exchange where the Company's Shares are
      listed, or for any other purpose the Board of Directors of the Company
      deems appropriate.

            

    

    
      	
            	
              13.2.

            	
              Adjustments Upon
      Certain Unusual or Nonrecurring Events.  The Board may
      make adjustments in the terms and conditions of Awards in recognition of
      unusual or nonrecurring events (including the events described in Section
      4.2) affecting the Company or the financial statements of the Company or
      of changes in applicable laws, regulations, or accounting principles,
      whenever the Board determines that such adjustments are appropriate in
      order to prevent dilution or enlargement of the benefits or potential
      benefits intended to be made available under the
  Plan.

            

    

     

    
      
        
        

      

      
        - 27
-

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              13.3.

            	
              Awards Previously
      Granted.  Notwithstanding any other provision of the Plan
      to the contrary (but subject to Section 2.8 and Section 13.2), no
      termination, amendment or modification of the Plan shall adversely affect
      in any material way any Award previously granted under the Plan, without
      the written consent of the Grantee of such Award.  Any
      adjustment, modification, extension or renewal of an Option shall be
      effected such that the Option is either exempt from, or is compliant with,
      Code section 409A.

            

    

     

    
      	
            	
              13.4.

            	
              Adjustments in
      Connection with Change of Control.  In the event the
      Company undergoes a Change of Control or in the event of a separation,
      spin-off, sale of a material portion of the Company's assets or any "going
      private" transaction under Rule 13e-3 promulgated pursuant to the Exchange
      Act and in which a Change of Control does not occur, the Board, or the
      board of directors of any corporation assuming the obligations of the
      Company, shall have the full power and discretion to prescribe and amend
      the terms and conditions for the exercise, or modification, of any
      outstanding Awards granted hereunder in the manner as agreed to by the
      Board as set forth in the definitive agreement relating to the
      transaction.  Without limitation, the Board or Plan Committee
      may:

            

    

     

    
      	
               
      

            	
              (a)

            	
              remove
      restrictions on Restricted Shares and Restricted Stock
    Units;

            

    

     

    
      	
               
      

            	
              (b)

            	
              modify
      the performance requirements for any other
  Awards;

            

    

     

    
      	
               
      

            	
              (c)

            	
              provide
      that Options or other Awards granted hereunder must be exercised in
      connection with the closing of such transactions, and that if not so
      exercised such Awards will expire;

            

    

     

    
      	
               
      

            	
              (d)

            	
              provide
      for the purchase by the Company of any such Award, upon the Grantee's
      request, for an amount of cash equal to the amount that could have been
      attained upon the exercise of such Award or realization of the Grantee's
      rights had such Award been currently exercisable or
    payable;

            

    

     

    
      	
               
      

            	
              (e)

            	
              make
      such adjustment to any such Award then outstanding as the Board deems
      appropriate to reflect such Change of
Control;

            

    

     

    
      	
               
      

            	
              (f)

            	
              cause
      any such Award then outstanding to be assumed, or new rights substituted
      therefore, by the acquiring or surviving corporation after such Change of
      Control.  Any such determinations by the Board may be made
      generally with respect to all Participants, or may be made on a
      case-by-case basis with respect to particular
  Participants.

            

    

    Notwithstanding
the foregoing, any transaction undertaken for the purpose of reincorporating the
Company under the laws of another jurisdiction, if such transaction does not
materially affect the beneficial ownership of the Company's Shares, such
transaction shall not constitute a merger, consolidation, major acquisition of
property for stock, separation, reorganization, liquidation, or Change of
Control.

     

    
      
        
        

      

      
        - 28
-

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              13.5.

            	
              Prohibition on
      Repricings.  Except in connection with a corporate
      transaction involving the Company (including, without limitation, any
      stock dividend, stock split, extraordinary cash dividend,
      recapitalization, reorganization, merger, consolidation, split-up,
      spin-off, combination, or exchange of shares), the terms of outstanding
      Awards may not be amended to reduce the exercise price of outstanding
      Options or SARs or cancel outstanding Options or SARs in exchange for
      cash, other Awards or Options or SARs with an exercise price that is less
      than the exercise price of the original Options or SARs without
      stockholder approval.

            

    

     

    
      Article
14.  Withholding

    

     

    
      	
            	
              14.1.

            	
              Mandatory Tax
      Withholding.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Whenever
      under the Plan, Shares are to be delivered upon exercise or payment of an
      Award, or upon the lapse of Restrictions on an Award, or any other event
      with respect to rights and benefits hereunder (the exercise date, date
      such Restrictions lapse or such payment of any other benefit or right
      occurs hereinafter referred to as the "Tax Date"), the
      Company shall be entitled to require and may accommodate the Grantee's
      request if so requested, to satisfy all federal, state, local and foreign
      tax withholding requirements, including Social Security and Medicare
      ("FICA")
      taxes related thereto ("Tax
      Withholding"), by one or a combination of the following
      methods:

            

    

     

    (i)           Payment
of an amount in cash equal to the amount to be withheld;

     

    (ii)          Requesting
the Company to withhold from those Shares that would otherwise be received upon
exercise of the Option or the SAR payable in Shares, upon the lapse of
Restrictions on an Award, a number of Shares having a Fair Market Value on the
Tax Date equal to the amount to be withheld; or

     

    (iii)         withholding
from compensation otherwise due to the Grantee.

     

    The Board in its sole discretion may
provide that the maximum amount of tax withholding to be satisfied by
withholding Shares pursuant to clause (ii) above shall not exceed the minimum
amount of taxes, including FICA taxes, required to be withheld under federal,
state and local law. An election by Grantee under this subsection is
irrevocable. Any fractional share amount and any additional withholding not paid
by the withholding or surrender of Shares must be paid in cash.  If no
timely election is made, the Grantee must deliver cash to satisfy all tax
withholding requirements.

     

    
      
        
        

      

      
        - 29
-

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              (b)

            	
              Any
      Grantee who makes a disqualifying disposition of an incentive stock option
      granted under the Plan or who makes an election under Section 83(b) of the
      Code shall remit to the Company an amount sufficient to satisfy all
      resulting Tax Withholding; provided that, in lieu
      of or in addition to the foregoing, the Company shall have the right to
      withhold such Tax Withholding from compensation otherwise due to the
      Grantee or from any Shares or other payment due to the Grantee under the
      Plan.

            

    

     

    
      	
            	
              14.2.

            	
              Notification under
      Code Section 83(b).  If the Grantee, in connection with
      the exercise of any Option, or the grant of Restricted Shares, makes the
      election permitted under Section 83(b) of the Code to include in such
      Grantee's gross income in the year of transfer the amounts specified in
      Section 83(b) of the Code, then such Grantee shall notify the Company of
      such election within 10 days of filing the notice of the election with the
      Internal Revenue Service, in addition to any filing and notification
      required pursuant to regulations issued under Section 83(b) of the
      Code.  The Board may, in connection with the grant of an Award
      or at any time thereafter prior to such an election being made, prohibit a
      Grantee from making the election described
  above.

            

    

     

    
      Article
15.  Equity Incentive Plans of Foreign Subsidiaries

    

     

    The Board
may authorize any foreign Subsidiary to adopt a plan for granting Awards
("Foreign Equity Incentive Plan").  All awards granted under such
Foreign Equity Incentive Plans shall be treated as grants under the
Plan.  Such Foreign Equity Incentive Plans shall have such terms and
provisions as the Board permits not inconsistent with the provisions of the Plan
and which may be more restrictive than those contained in the
Plan.  Awards granted under such Foreign Equity Incentive Plans shall
be governed by the terms of the Plan except to the extent that the provisions of
the Foreign Equity Incentive Plans are more restrictive than the terms of the
Plan, in which case such terms of the Foreign Equity Incentive Plans shall
control.

     

    
      Article
16.  Additional Provisions

    

     

    
      	
            	
              16.1.

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

            

    

     

    
      	
            	
              16.2.

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

            

    

    
      	
            	
              16.3.

            	
              Severability.  If
      any part of the Plan is declared by any court or governmental authority to
      be unlawful or invalid, such unlawfulness or invalidity shall not
      invalidate any other part of the Plan.  Any Section or part of a
      Section so declared to be unlawful or invalid shall, if possible, be
      construed in a manner which will give effect to the terms of such Section
      or part of a Section to the fullest extent possible while remaining lawful
      and valid.

            

    

     

    
      
        
        

      

      
        - 30
-

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              16.4.

            	
              Requirements of
      Law.  The granting of Awards and the issuance of Shares
      under the Plan shall be subject to all applicable laws, rules, and
      regulations, and to such approvals by any governmental agencies or stock
      exchanges as may be required.  Notwithstanding any provision of
      the Plan or any Award, Grantees shall not be entitled to exercise, or
      receive benefits under, any Award, and the Company shall not be obligated
      to deliver any Shares or other benefits to a Grantee, if such exercise or
      delivery would constitute a violation by the Grantee or the Company of any
      applicable law or regulation.

            

    

     

    
      	
            	
              16.5.

            	
              Securities Law
      Compliance.

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      the Board deems it necessary to comply with any applicable securities law,
      or the requirements of any stock exchange upon which Shares may be listed,
      the Board may impose any restriction on Shares acquired pursuant to Awards
      under the Plan as it may deem advisable.  All Shares transferred
      under the Plan pursuant to any Award or the exercise thereof shall be
      subject to such stop transfer orders and other restrictions as the Board
      may deem advisable under the rules, regulations and other requirements of
      the SEC, any stock exchange upon which Shares are then listed, any
      applicable securities law,.  If so requested by the Company, the
      Grantee shall represent to the Company in writing that he or she will not
      sell or offer to sell any Shares unless a registration statement shall be
      in effect with respect to such Shares under the Securities Act of 1933 or
      unless he or she shall have furnished to the Company evidence satisfactory
      to the Company that such registration is not
  required.

            

    

     

    
      	
               
      

            	
              (b)

            	
              If
      the Board determines that the exercise of, or delivery of benefits
      pursuant to, any Award would violate any applicable provision of
      securities laws or the listing requirements of any stock exchange upon
      which any of the Company's equity securities are then listed, then the
      Board may postpone any such exercise or delivery, as applicable, but the
      Company shall use all reasonable efforts to cause such exercise or
      delivery to comply with all such provisions at the earliest practicable
      date.

            

    

    
      	
            	
              16.6.

            	
              No Rights as a
      Shareholder. A Grantee shall not have any rights as a shareholder
      with respect to the Shares (other than Restricted Shares) which may be
      deliverable upon exercise or payment of such Award until such shares have
      been delivered to him or her. Restricted Shares, whether held by a Grantee
      or in escrow by the escrow agent, shall confer on the Grantee all rights
      of a shareholder of the Company, except as otherwise provided in the Plan
      or Award Agreement. Unless otherwise determined by the Board at the time
      of a grant of Restricted Shares, any cash dividends that become payable on
      Restricted Shares shall be deferred and, if the Board so determines,
      reinvested in additional Restricted Shares. Except as otherwise provided
      in an Award Agreement, any share dividends and deferred cash dividends
      issued with respect to Restricted Shares shall be subject to the same
      restrictions and other terms as apply to the Restricted Shares with
      respect to which such dividends are issued. The Board may provide for
      payment of interest on deferred cash
dividends.

            

    

     

    
      
        
        

      

      
        - 31
-

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              16.7.

            	
              Nature of
      Payments.  Awards shall be special incentive payments to
      the Grantee and shall not be taken into account in computing the amount of
      salary or compensation of the Grantee for purposes of determining any
      pension, retirement, death or other benefit under (a) any pension,
      retirement, profit-sharing, bonus, insurance or other employee benefit
      plan of the Company or any Subsidiary or (b) any agreement between (i) the
      Company or any Subsidiary and (ii) the Grantee, except as such plan or
      agreement shall otherwise expressly
provide.

            

    

     

    
      	
            	
              16.8.

            	
              Military
      Service.  Awards shall be administered in accordance with
      Section 414(u) of the Code and the Uniformed Services Employment and
      Reemployment Rights Act of 1994.

            

    

     

    
      	
            	
              16.9.

            	
              Data
      Protection. The Board, the Plan Committee and any other person or
      entity empowered by the Board or the Plan Committee to administer the Plan
      may process, store, transfer or disclose personal data of the Grantees to
      the extent required for the implementation and administration of the Plan.
      The Board, the Plan Committee and any other person or entity empowered by
      the Board or the Plan Committee to administer the Plan shall comply with
      any applicable data protection
laws.

            

    

     

    
      	
            	
              16.10.

            	
              Governing
      Law.  The Plan and the rights of any Grantee receiving an
      Award thereunder shall be construed and interpreted in accordance with and
      governed by the laws of the State of Kansas without giving effect to the
      principles of the conflict of laws to the
  contrary.

            

    

    
      
         

      

      
        - 32
-

        
          

        

      

      
         

      

    

     

    Annex
to the Plan for Swiss based Grantees and Grantees subject to Swiss inheritance
law

    

    
      	
              1.

            	
              Section
      5.6(a)(i) shall be replaced with the
following:

            

    

     

    
      	
               
      

            	
              (i)

            	
              to
      the extent permitted by the applicable Swiss law the Grantee's Restricted
      Shares that are forfeitable immediately before such Termination of
      Affiliation shall automatically be forfeited on such date, subject in the
      case of Restricted Shares to the provisions of Section 8.5 regarding
      repayment of certain amounts to the
Grantee;

            

    

     

    
      	
              2.

            	
              Section
      5.6(a)(ii) shall be replaced with the
following:

            

    

     

    
      	
               
      

            	
              (ii)

            	
              to
      the extent permitted by the applicable Swiss law the Grantee's Restricted
      Stock Units shall automatically be
forfeited;

            

    

     

    
      	
              3.

            	
              Section
      5.6(a)(iii) shall be replaced with the
  following:

            

    

     

    
      	
               
      

            	
              (iii)

            	
              to
      the extent permitted by the applicable Swiss law any unexercised Option or
      SAR, and any Performance Share or Performance Unit with respect to which
      the Performance Period has not ended immediately before such Termination
      of Affiliation, shall terminate effective immediately upon such
      Termination of Affiliation.

            

    

    
      	 
      

    

    
      	
              4.

            	
              Section
      5.6(d)(i) shall be replaced with the
following:

            

    

     

    
      	
               
      

            	
              (i)

            	
              to
      the extent permitted by the applicable Swiss law the Grantee's Restricted
      Shares and Deferred Shares, to the extent forfeitable immediately before
      such Termination of Affiliation, shall thereupon automatically be
      forfeited, subject in the case of Restricted Shares to the provisions of
      Section 8.4 regarding repayment of certain amounts to the
      Grantee;

            

    

    
      	
               
      

            

    

    
      	
              5.

            	
              Section
      5.6(d)(ii) shall be replaced with the
following:

            

    

     

    
      	
               
      

            	
              (ii)

            	
              to
      the extent permitted by the applicable Swiss law the Grantee's Restricted
      Stock Units shall automatically be
forfeited;

            

    

     

    
      	
              6.

            	
              Section
      5.6(d)(iv) shall be replaced with the
following:

            

    

     

    
      	
               
      

            	
              (iv)

            	
              to
      the extent permitted by the applicable Swiss law any Performance Shares or
      Performance Units with respect to which the Performance Period has not
      ended as of the date of such Termination of Affiliation shall terminate
      immediately upon such Termination of
  Affiliation.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              7.

            	
              Section
      6.1 shall be replaced with the
following:

            

    

     

    
      	
               
      

            	
              6.1

            	
              Grant of
      Options.  Subject to the terms and provisions of the
      Plan, Options may be granted to any Eligible Person in such number, and
      upon such terms, and at any time and from time to time as shall be
      determined by the Board.  Without limiting the generality of the
      foregoing and to the extent permitted by the applicable Swiss law, the
      Board may grant to any Eligible Person, or permit any Eligible Person to
      elect to receive, an Option in lieu of or in substitution for any other
      compensation (whether payable currently or on a deferred basis, and
      whether payable under the Plan or otherwise) which such Eligible Person
      may be eligible to receive from the Company or a Subsidiary, which Option
      may have a value (as determined by the Board under Black-Scholes or any
      other option valuation method) that is equal to or greater than the amount
      of such other compensation.

            

    

     

    
      	
              8.

            	
              Article
      11.  shall be replaced with the
  following:

            

    

     

    Each
Grantee under the Plan may, from time to time, name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any
benefit under the Plan is to be paid in case of the Grantee's death before he or
she receives any or all of such benefit.  Each such designation shall
revoke all prior designations by the same Grantee, shall be in a form and
procedure prescribed by the applicable Swiss inheritance law. Irrespective of
any such designation, benefits remaining unpaid at the Grantee's death shall be
paid to the Grantee's estate.

     

    
      
        
        

      

      
        - 2
-

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