Document:

exh10-7.htm

     

    
      

      

    

     

     

    TEXAS
PETROCHEMICALS INC.

     

    2004
STOCK AWARDS PLAN

     

    As
Amended and Restated Effective March 23, 2006

     

    I.

     

    PURPOSE

     

    The
purpose of the Texas Petrochemicals Inc. 2004 Stock Awards Plan (the “Plan”) is
to provide a means through which Texas Petrochemicals Inc. (the “Company”), a
Delaware corporation and its Subsidiaries, may attract able persons to the
Company and to provide a means whereby those Employees, officers and directors
of the Company upon whom the responsibilities of the successful administration
and management of the Company rest, and whose present and potential
contributions to the welfare of the Company are of importance, can acquire and
maintain stock ownership, thereby strengthening their concern for the welfare of
the Company and their desire to remain in its employ or service.  A
further purpose of the Plan is to provide such Employees, officers and directors
of the Company with additional incentive and reward opportunities designed to
enhance the profitable growth of the Company.  The Plan is a broad
based plan that provides for grants of Incentive Stock Options, Nonqualified
Stock Options, Stock Appreciation Rights, Restricted Stock Awards, Performance
Awards, Phantom Stock Awards, or any combination of the foregoing, as is best
suited to the circumstances of the particular Employee, officer or director of
the Company, as provided herein.  The Plan is hereby amended and
restated effective March 23, 2006 (“the Restatement Effective
Date”).  Any Awards made prior to the Restatement Effective Date shall
be subject to the terms and conditions of the Plan as in effect on the date of
such Award.

     

    II.

     

    DEFINITIONS

     

    The
following definitions shall be applicable throughout the Plan unless
specifically modified by any paragraph:

     

    (a)           “Affiliate” means any parent
or Subsidiary of the Major Holders.

     

    (b)           “Award” means, individually
or collectively, any Option, Restricted Stock Award, Phantom Stock Award,
Performance Award or Stock Appreciation Right.

     

    (c)           “Award Agreement” means a
written agreement between the Company and a Holder with respect to any
Award.

     

    (d)           “Board” means the Board of
Directors of Texas Petrochemicals Inc.

     

    (e)           “Board Resolution” means a
copy of a resolution having been duly adopted by the Board in accordance with
the terms of the Company’s by-laws and to be in full force and effect on such
adopted date.

     

    
      
         

      

      
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    (f)           “Cause” shall mean the term
as defined in any written employment agreement between the Company and the
Participant.  To the extent that there is no such agreement, “Cause”
shall mean the Participant’s conviction of, or plea of guilty or no contest to,
any felony (or equivalent under applicable law) or a misdemeanor that results in
a material economic injury to the Company.

     

    (g)           “Change in Control”
means:

     

    (i)           a
transaction in which any “person” (as such term is defined in Section 3(a)(9) of
the Exchange Act and is used in Sections 13(d)(3) and 14(d)(2) of the Exchange
Act) or group of persons acting together within the meaning of Section 13(d)(3)
of the Exchange Act (other than and excluding any of the Major Holders acting
alone, or in concert with each other, their respective Affiliates or others),
becomes the direct or indirect beneficial owner of fifty percent (50%) or more
of the Company’s Voting Stock; provided, however, that (x)
there shall not be a “Change in Control” unless the Major Holders beneficially
own, directly or indirectly, in the aggregate, a lesser percentage of the
Company’s Voting Stock than such other person, and do not have the right or
ability, in the aggregate, by voting power, contract, or otherwise, to elect or
designate for election, a majority of the Board and (y) the Board may at any
time prior to such transaction provide by Board Resolution that this
subparagraph (i) shall not apply if such acquiring person is a corporation or
other entity and a majority of the board of directors of the acquiring person
(or other board or committee performing similar functions) immediately after the
transaction consists of individuals who constituted a majority of the Board
immediately prior to the acquisition of such fifty percent (50%) or more of the
Company’s Voting Stock.  For purposes of subparagraph (i)(x) (A) such
other person shall be deemed to beneficially own any Voting Stock of a specified
entity held by a parent entity, if such other person is the beneficial owner,
directly or indirectly, of more than 50% of the parent entity’s Voting Stock,
and the Major Holders beneficially own, directly or indirectly, in the
aggregate, a lesser percentage of the total voting power of the parent entity’s
Voting Stock than such other person, and do not have the right or ability, in
the aggregate, by voting power, contract or otherwise, to elect, or designate
for election, a majority of the parent entity’s board of directors (or other
board or committee performing similar functions) and (B) the Major Holders shall
be deemed to beneficially own any Voting Stock of an entity held by any other
parent entity, so long as the Major Holders beneficially own, directly or
indirectly, in the aggregate, a majority of the parent entity’s Voting
Stock;

     

    (ii)           a
transaction involving a merger or consolidation of the Company with or into
another person or the merger of another person with or into the Company, other
than:

     

    (A)           a
merger effecting a re-incorporation of the Company in another state or any other
merger or a consolidation in which the shareholders or other equity owners of
the surviving person and their proportionate interests therein immediately after
the merger or consolidation are substantially identical to the shareholders of
the Company and their proportionate interests therein immediately prior to the
merger or consolidation, or

     

    
      
         

      

      
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    (B)           a
transaction following which the holders of securities that represented 100% of
the Voting Stock of the Company immediately prior to such transaction own,
directly or indirectly, at least a majority of the Voting Stock of the surviving
person immediately after such transaction in substantially the same proportion
that such holders held the Voting Stock of the Company immediately prior to such
transaction

     

    following
which the Company is not the surviving person, or survives only as a subsidiary
of another person in a transaction in which the shareholders of the parent of
the Company and their proportionate interests therein immediately after the
transaction are not substantially identical to the shareholders of the Company
and their proportionate interests therein immediately prior to the transaction;
provided, however, that the
Board may at any time prior to such a merger or consolidation provide by
resolution that the foregoing provisions of the preceding half-sentence
(beginning with the word “following” and ending with the word “transaction”)
shall not apply if a majority of the board of directors of such parent (or other
board or committee performing similar functions if the parent is not a
corporation) immediately after the transaction consists of individuals who
constituted a majority of the Board immediately prior to the transaction;
or

     

    (iii)           a
sale of all or substantially all the assets of the Company to another person,
other than the Major Holders, or any of them.

     

    (h)           “Change in Control Value”
means (i) the per share price offered to stockholders of the Company in
any such merger, consolidation, reorganization, sale of assets or dissolution
transaction, (ii) the price per share offered to stockholders of the Company in
any tender offer or exchange offer whereby a Change in Control takes place, or
(iii) if such Change in Control occurs other than pursuant to clause (i) or (ii)
of this paragraph (h), the Fair Market Value per share of the shares for which
Awards are exercisable, as determined by a Board Resolution, whichever is
applicable.  In the event that the consideration offered to
stockholders of the Company consists of anything other than cash, the Board
shall determine by a Board Resolution the fair cash equivalent of the portion of
the consideration offered which is other than cash.

     

    (i)           “Code” means the Internal
Revenue Code of 1986, as amended.  Reference in the Plan to any
section of the Code shall be deemed to include any amendments or successor
provisions to any section and any regulations under such section.

     

    (j)           “Committee” means any
Committee to which the Board has delegated some or all of its powers and
authority under the Plan.

     

    (k)           “Continuous Service” means
the Holder’s service as an officer, Employee, or director with the Company or
any Subsidiary that is not interrupted or terminated.  The Holder’s
Continuous Service shall not be deemed to have terminated merely because of a
change in the capacity in which the Holder renders service to the Company as an
officer, Employee, or director or a change in the entity for which the Holder
renders such service; provided, however,
that there is no interruption or termination of the Holder’s Continuous
Service other than an approved leave of absence.  The Board may
determine whether Continuous Service shall be considered
interrupted.

     

    (l)           “Company” means Texas
Petrochemicals Inc.

     

    
      
         

      

      
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    (m)           “Covered Employee” means such
person described in Section 162(m)(3) of the Code.

     

    (n)           “Current Market Price” means
on any date on which the Stock is listed on any national securities exchange or
on the NASDAQ Stock Market, (the average of the Quoted Prices for the five
consecutive Trading Days selected by the Committee commencing not more than 20
Trading Days before, and ending not later than, the earlier of (x) the date in
question and (y) in the case of any computation under Paragraph XII (d) or XII
(e), the day before the “ex” date for the issuance or distribution requiring
such computation; provided, however,
that if the “ex” date for any event (other than the issuance or
distribution requiring such computation) that requires an adjustment to the
Exercise Price pursuant to Paragraph XII(a), XII(b), XII(d), or XII(e) occurs on
or after the 20th Trading Day prior to the day in question and prior to the “ex”
date for the issuance or distribution requiring such computation, the Quoted
Price for each Trading Day prior to the “ex” date for such other event shall be
adjusted by multiplying such Quoted Price by the same fraction by which the
Exercise Price is so required to be adjusted pursuant to Paragraph XII(a),
XII(b), XII(d), or XII(e) as applicable, as a result of such other
event.

     

    (o)            “Effective Date” means the
date set forth in Paragraph III(a).

     

    (p)           “Employee” means any person
in an employment relationship with the Company or Parent or
Subsidiaries.

     

    (q)           “Equity Interest” means, (i)
with respect to any Person that is a corporation, any and all shares, interests,
participations or other equivalents (however designated and whether or not
voting) of corporate stock, including each class of common stock and preferred
stock of such Person and all options, warrants or other rights to purchase or
acquire any of the foregoing; and (ii) with respect to any Person that is not a
corporation, any and all partnership, membership or other equity interests of
such Person, and all options, warrants or other rights to purchase or acquire
any of the foregoing

     

    (r)           “ex date” means:

     

    
      	
               
      

            	
              (i)

            	
              when
      used with respect to any issuance or distribution, the first date on which
      the Stock trades regular way on the relevant exchange or in the relevant
      market from which the Quoted Price was obtained without the right to
      receive such issuance or
distribution;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              when
      used with respect to any subdivision or combination of shares of Stock,
      the first date on which the Stock trades regular way on the relevant
      exchange or in the relevant market after the time at which such
      subdivision or combination becomes effective;
or

            

    

     

    
      	
               
      

            	
              (iii)

            	
              when
      used with respect to any tender offer, the first date on which the Stock
      trades regular way on the relevant exchange or in the relevant market
      after the Expiration Time of such tender
offer.

            

    

     

    (s)           “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

     

    
      
         

      

      
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    (t)           “Excluded Dividend” means any
Property Dividend or any dividend or distribution of rights or warrants referred
to in Paragraph XU(f) that is paid or made in cash out of earnings or earned
surplus, determined in accordance with GAAP.

     

    (u)           “Exercise Price” means the
exercise price per share of Stock under any Award, subject to adjustment as
provided in Paragraph XII.

     

    (v)           “Expiration Time” means the
period of time set forth in Paragraph XII(e).

     

    (w)           “Fair Market Value” means as
of any specified date, (i) the Current Market Price or (ii) if the Stock is not
then listed on any national securities exchange or on the NASDAQ Stock Market,
the fair value as determined by the Board in good faith, as evidenced by a Board
Resolution.  The Board may, but shall have no obligation to, engage
one or more appraisers in making its determination of Fair Market Value under
clause (ii). The Fair Market Value as determined by the Board under clause (ii)
may be higher or lower than any such appraisal.

     

    (x)           “Forfeiture Restrictions”
means the restrictions set forth in Paragraph IX(a).

     

    (y)           “GAAP” means generally
accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which are in
effect from time to time.

     

    (z)           “Holder” means an Employee,
officer or director who has been granted an Award.

     

    (aa)           “Incentive Stock Option”
means an option to purchase Stock that is designated as an incentive
stock option within the meaning of Section 422 of the Code.

     

    (bb)           “Major Holders” means
Castlerigg Master Investments Ltd., RCG Carpathia Master Fund, Ltd. and Mellon
HBV SPV LLC, and any investment fund managed by the same investment advisor of
any such Major Holder.

     

    (cc)           “Nonqualified Stock Option”
means an option granted under Paragraph VII of the Plan to purchase Stock
which does not constitute an Incentive Stock Option.

     

    (dd)           “Option” means an Award
granted under Paragraph VII of the Plan and includes both Incentive Stock
Options and Nonqualified Stock Options.

     

    (ee)           “Option Agreement” means an
Award Agreement with respect to an Option.

     

    (ff)           “Ownership Interest” means
any shares of capital stock of the Company and any other security of the Company
or any successor thereto into which any shares of capital stock of the Company
are converted or for which any shares of capital stock of the Company are
exchanged.

     

    
      
         

      

      
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    (gg)           “Parent” means, for purposes
of the grant of Incentive Stock Options, a parent of the Company (if any) which
qualifies as a “parent corporation” within the meaning of Section 424(e) of the
Code.

     

    (hh)           “Performance Award” means an
Award granted under Paragraph X of the Plan.

     

    (ii)           “Performance Award Agreement”
means an Award Agreement with respect to a Performance
Award.

     

    (jj)           “Performance Goals” means or
may be expressed in terms of any of the following business criteria: revenue,
earnings before interest, taxes, depreciation and amortization (“EBITDA”),
operating income, pre- or after-tax income, cash available for distribution,
cash available for distribution per share, net earnings, earnings per share,
return on equity, return on assets, share price performance, improvements in the
Company’s attainment of expense levels, and implementing or completion of
critical projects, or improvement in cash flow (before or after
tax).  A Performance Goal may be measured over a Performance Period on
a periodic, annual, cumulative or average basis and may be established on a
corporate-wide basis or established with respect to one or more operating units,
divisions, subsidiaries, acquired businesses, minority investments, partnerships
or joint ventures.

     

    (kk)           “Performance Objectives”
means the level or levels of performance required to be attained with
respect to specified Performance Goals in order that a Holder shall become
entitled to specified rights in connection with an Award of performance
shares.  The Board may provide for adjustments to performance to
eliminate the effects of charges for restructuring, extraordinary items,
discontinued operations, other non-recurring charges, the cumulative effects of
accounting changes, each as defined in GAAP, that occur during a Performance
Period, in each case, to preserve the economic intent of any Award.

     

    (ll)           “Performance Period” means
the one-year period that shall commence July 1 of each year, or such other
longer period designated by the Committee, during which performance will be
measured in order to determine a Holder’s entitlement to receive payment of an
Award.

     

    (mm)                      “Person” means any
individual, corporation, partnership, joint venture, association, joint-stock
company, trust, unincorporated organization or government or any agency or
political subdivision thereof or other entity.

     

    (nn)           “Phantom Stock” means shares
of Stock granted under Paragraph XI of the Plan.

     

    (oo)           “Phantom Stock Award” means
an Award of Phantom Stock.

     

    (pp)           “Phantom Stock Award Agreement”
means an Award Agreement with respect to a Phantom Stock
Award.

     

    (qq)           “Plan” means the Texas
Petrochemicals Inc. 2004 Stock Awards Plan, as amended from time to
time.

     

    (rr)           “Property Dividend” means any
payment by the Company to holders of its Stock of any dividend, or any other
distribution by the Company to such holders of any shares of

     

    
      
         

      

      
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    Equity
Interests of the Company, evidences of indebtedness of the Company, cash or
other assets (including rights, warrants or other securities (of the Company or
any other Person)), other than any dividend or distribution (i) upon a merger or
consolidation or sale to which Paragraph XIII applies or (ii) of any Stock
referred to in Paragraph XII(b).

     

    (ss)           “Purchased Shares” has the
meaning set forth in Paragraph XII.

     

    (tt)           “Quoted Price” means, on any
Trading Day, with respect to any security, the last reported sales price regular
way or, in case no such reported sale takes place on such Trading Day, the
average of the reported closing bid and asked prices regular way, in either case
on the New York Stock Exchange or, if such security is not listed or admitted to
trading on such exchange, on the principal national securities exchange on which
such security is listed or admitted to trading or, if not listed or admitted to
trading on any national securities exchange, on the National Association of
Securities Dealers Automated Quotations National Market System.

     

    (uu)           “Restatement Effective Date”
means the date set forth in Paragraph I of the Plan.

     

    (vv)           “Restricted Stock” means
shares of Stock granted under Paragraph IX of the Plan.

     

    (ww)                      “Restricted Stock Agreement”
means an Award Agreement with respect to a Restricted Stock
Award.

     

    (xx)           “Restricted Stock Award”
means an Award granted under Paragraph IX of the Plan.

     

    (yy)           “Rule 16b-3” means SEC Rule
16b-3 promulgated under the Exchange Act, as such may be amended from time to
time, and any successor rule, regulation or statute fulfilling the same or a
similar function.

     

    (zz)           “SEC” means the Securities
and Exchange Commission.

     

    (aaa)                      “Section 162(m)” means
Section 162(m) of the Code and the regulations promulgated
thereunder.

     

    (bbb)                      “Spread” means, in the case
of a Stock Appreciation Right, an amount equal to the excess, if any, of the
Fair Market Value of a share of Stock on the date such right is exercised (or
deemed exercised pursuant to Section 409A of the Code) over the exercise price
of such Stock Appreciation Right.

     

    (ccc)                      “Stock” means the common
stock, $0.01 par value, of the Company.

     

    (ddd)                      “Stock Appreciation Right”
means an Award granted under Paragraph VIII of the Plan.

     

    (eee)                      “Stock Appreciation Rights
Agreement” means an Award Agreement with respect to an Award of Stock
Appreciation Rights.

     

    (fff)           “Subsequent Awards” means the
Awards defined under Paragraph VI.

     

    
      
         

      

      
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    (ggg)                      “Subsidiaries” means any
subsidiary entity of the Company selected by the Board, provided, that, with respect to
Incentive Stock Options, it shall mean any subsidiary of the Company that
qualifies as a “subsidiary corporation” within the meaning of Section 424(f) of
the Code.

     

    (hhh)                      “Trading Day” means each
Monday, Tuesday, Wednesday, Thursday and Friday, other than any day on which
securities are not traded on the applicable securities exchange or in the
applicable securities market.

     

    (iii)           “Voting Stock” means of a
person all classes of capital stock or other interest, including partnership
interests, of such person then outstanding and normally entitled, without regard
to the occurrence of any contingency, to vote in the election of directors,
managers or trustees thereof.

     

    III.

     

    EFFECTIVE
DATE AND DURATION OF THE PLAN

     

    (a)           Effective
Date.  The Plan was originally effective on December 15, 2004
(the “Effective Date”) and approved by the Company’s stockholders on January 6,
2005.  The Plan, as amended and restated, shall be effective on the
Restatement Effective Date, subject to stockholder approval in accordance with
applicable state law within one year of the Restatement Effective
Date.  Unless the Company determines to submit Paragraph X of the Plan
and the definition of Performance Goal to the Company’s stockholders at the
first stockholder meeting that occurs in the fifth year following the year in
which the Plan was last approved by stockholders (or any earlier meeting
designated by the Board), in accordance with the requirements of Section 162(m),
and such stockholder approval is obtained, then no further Performance Awards
shall be made to Covered Employees under Paragraph X after the date of such
annual meeting, but the remainder of the Plan shall continue in
effect.

     

    (b)           Duration of the
Plan.  The Plan will expire on the sixth anniversary of the
Effective Date, and no Awards may be granted on or after the sixth anniversary
of the Effective Date; provided, however, that any
Award granted prior to such sixth anniversary shall remain outstanding in
accordance with its terms.

     

    IV.

     

    ADMINISTRATION

     

    (a)           General
Administration.  The Plan shall be administered by the Board
provided, however, that to the
extent required by law, specific responsibilities shall be delegated to the
Committee.

     

    (b)           Delegation to
Committee.  Subject to applicable law, the Board may delegate
any of its power and authority under the Plan to a Committee or Committees of
two (2) or more members of the Board, and the term “Committee” shall apply to
any person or persons to whom such authority has been delegated.  If
the Board appoints a Committee, it shall have only those powers the Board has
delegated to it.  Such powers may include the power to delegate to
a

     

    
      
         

      

      
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    subcommittee
or to officers and employees of the Company any of the administrative powers the
Board has delegated to the Committee.  If the Board delegates some or
all of its power and authority to one or more Committees or subcommittees, any
references in this Plan to the Board shall be deemed to be to the Committee(s)
or subcommittee(s), but only to the extent of the delegation.  The
Board may abolish the Committee at any time and revest in the Board the
administration of the Plan.

     

    (c)           Committee
Composition.  Notwithstanding the foregoing, if the Company has
a class of equity securities registered under Section 12 of the Exchange Act,
the Committee shall include at least two “non-employee directors” (as defined
under Ru1e 16b-3 promulgated under the Exchange Act) to permit the Awards and
subsequent transactions contemplated hereunder to comply with Rule
16b-3.  Further, only a Committee comprising two or more “outside
directors,” (within the meaning of Section 162(m)) may grant Awards that are
subject to Section 162(m).  Committee members shall also meet the
requirements of the rules of any exchange or national market system upon which
the Stock is listed.

     

    (d)           Effect of Board’s
Decision.  All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all
persons.  Members of the Board and any officer or employee of the
Company acting at the direction or on behalf of the Board shall not be
personally liable for any action or determination taken or made in good faith
with respect to the Plan.  Such persons shall, to the extent permitted
by law, be fully indemnified by the Company with respect to any such action or
determination.

     

    (e)           Powers of
Board.  The Board shall have the power, subject to, and within
the limitations of, the express provisions of the Plan:

     

    
      	
               
      

            	
              (i)

            	
              To
      determine from time to time which of the persons eligible under the Plan
      shall be granted Awards; when and how each Award shall be granted; what
      type or combination of types of Award shall be granted; the provisions of
      each Award granted (which need not be identical), including the time or
      times when a person shall be permitted to receive Stock pursuant to an
      Award; and the number of shares of Stock with respect to which an Award
      shall be granted to each such
person.

            

    

     

    
      	
               
      

            	
              (ii)

            	
              To
      construe and interpret the Plan and Awards granted under it, and to
      establish, amend and revoke rules and regulations for its
      administration.  The Board, in the exercise of this power, may
      correct any defect, omission or inconsistency in the Plan or in any Award
      Agreement, in a manner and to the extent it shall deem necessary or
      expedient to make the Plan fully
effective.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              To
      provide for the extension of the exercisability of an Award, accelerate
      the vesting or exercisability of an Award, eliminate or make less
      restrictive any restrictions applicable to an Award, waive any restriction
      or other provision of this Plan (insofar as such provision relates to
      Awards) or an Award or otherwise amend or modify an Award in any manner
      that

            

    

     

    
      
         

      

      
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    is either
(i) not adverse to the Holder to whom such Award was granted or (ii) consented
to by such Holder;

     

    
      	
               
      

            	
              (iv)

            	
              Generally,
      to exercise such powers and to perform such acts as the Board deems
      necessary or expedient to promote the best interests of the Company which
      are not in conflict with the provisions of the
  Plan.

            

    

     

    V.

     

    GRANT OF
OPTIONS, STOCK APPRECIATION RIGHTS,

    RESTRICTED
STOCK AWARDS, PERFORMANCE AWARDS

    AND
PHANTOM STOCK AWARDS; SHARES SUBJECT TO THE PLAN

     

    (a)           Stock Grant and Award
Limits.  The Board may from time to time grant and the
Committee may recommend to the Board, from time to time, the grant of Awards to
one or more Employees, officers and directors determined by it to be eligible
for participation in the Plan in accordance with the provisions of Paragraph
VI.  Subject to Paragraph XII, the total of number of shares
(irrespective of class) set aside for issuance under the Plan is
2,613,317.  Subject to Paragraph XII, up to 1,331,722 shares in the
aggregate may be issued as Options or Stock Appreciation Rights, or any
combination thereof, under the Plan and up to 1,281,595 shares in the aggregate
may be issued pursuant to Restricted Stock Awards, Performance Awards or Phantom
Stock Awards under the Plan.  The maximum number of shares of Stock
that may be the subject of all Awards granted to an Employee in anyone calendar
year period may not exceed 600,000, subject to Paragraph XII.  With
respect to any Award paid in cash under the Plan, the number of shares of Stock
having an aggregate Fair Market Value equal to the value of such cash Award
shall be deducted from the total number of shares set aside for issuance under
the Plan.

     

    (b)           Lapse of
Awards.  Shares of Stock shall be deemed to have been issued
under the Plan only to the extent actually issued and delivered pursuant to an
Award.  To the extent that an Award lapses or the rights of its Holder
terminate or are relinquished, any shares of Stock subject to such Award shall
again be available for grant pursuant to an Award, except that if an Award is
paid in cash, the number of shares underlying such Award shall not be available
for new Awards under the Plan.

     

    (c)           Stock
Offered.  The Stock to be offered pursuant to the grant of an
Award may be authorized but issued Stock or Stock previously issued and
outstanding and reacquired by the Company.

     

    VI.

     

    ELIGIBILITY

     

    Awards
may be granted only to persons who, at the time of grant, are Employees,
officers or directors; provided, however,
that only Employees of the Company or any Parent or Subsidiary may be
granted an Incentive Stock Option.  The maximum number and composition
of all Awards granted under the Plan shall be subject to the limitations set
forth in Paragraph V(a).

     

    
      
         

      

      
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      VII.

    

     

    STOCK
OPTIONS

     

    (a)           Option
Period.  The term of each Option shall be as specified by the
Board at the date of grant; provided, however, that if not
otherwise determined by the Board and provided for in an Award Agreement, the
term of each Option shall be six years from the date of grant and each Option
shall vest ratably over five years.

     

    (b)           Special Limitations on
Incentive Stock Options.  No more than 1,331,722 shares of
Stock (irrespective of class) may be issued pursuant to Incentive Stock
Options.  Only Employees may receive grants of Incentive Stock
Options.  The term of an Incentive Stock Option shall not exceed ten
years from the date of grant. To the extent that the aggregate Fair Market Value
of shares of Stock with respect to which Options designated as Incentive Stock
Options first become exercisable by a Holder in any calendar year (under this
and all other plans of the Company, its Parent or any Subsidiaries) exceeds
$100,000, such excess Options shall be treated as Nonqualified Stock
Options.  For purposes of determining whether the $100,000 is
exceeded, the Fair Market Value of the shares subject to an Incentive Stock
Option shall be determined as of the date of grant.  In reducing the
number of Options treated as Incentive Stock Options to meet the $100,000 limit,
the most recently granted Options shall be reduced first.  No
Incentive Stock Option shall be granted to an individual if, at the time the
Option is granted, such individual owns Stock possessing more than 10% of the
total combined voting power of all classes of Stock of the Company and its
Parent and Subsidiaries, within the meaning of Section 422(b)(6) of the Code,
unless (i) at the time such Option is granted the Option price is at least
110% of the Fair
Market Value of the Stock subject to the Option and (ii) such Option by its
terms is not exercisable after the expiration of five years from the date of
grant.

     

    (c)           Option Agreement.  Each Option
shall be evidenced by an Option Agreement in such form and containing such
provisions not inconsistent with the provisions of the Plan as the Board from
time to time shall approve, including, without limitation, provisions to qualify
an Incentive Stock Option under Section 422 of the Code.  The Option
price must be paid in full at the time of each exercise in one or a combination
of the following methods (to the extent authorized and approved by the Board or
set forth in the applicable Option Agreement): (i) cash or immediately available
funds (including wire transfer, personal check, cashier’s check, postal or
express money order or bank draft) or (ii) with shares of Stock already owned by
the Holder for at least six months prior to the exercise (or whatever period as
maybe required to avoid a change to earnings for financial accounting
purposes).  Additionally, in the discretion of the Board, payment for
any shares of Stock subject to an Option may also be made by a “cashless
exercise” which shall include the following: delivering a properly executed
exercise notice to the Company, together with a copy of irrevocable instructions
to a broker to deliver promptly to the Company the amount of sale or loan
proceeds necessary to pay the purchase price, and, if requested, the amount of
any federal, state, local or foreign withholding taxes.  To facilitate
the foregoing “cashless exercise,” the Company may enter into agreements for
coordinated procedures with one or more brokerage firms.  The terms
and conditions of the respective Option Agreements need not be
identical.  Option Agreements may also include, without limitation,
provisions relating to (i) vesting of Awards, (ii) tax matters (including
provisions covering

     

    
      
         

      

      
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    applicable
wage withholding requirements), and (iii) any other matters, not inconsistent
with the terms and provisions of this Plan.

     

    (d)           Treatment of Options Upon
Termination of Continuous Service.  Upon a Holder’s termination
of Continuous Service, all unvested Options shall terminate as of the date of
termination of Continuous Service with the Company.

     

    (e)           Exercise Price and
Payment.  The price at which a share of Stock may be purchased
upon exercise of an Option shall be an amount that is not less than the Fair
Market Value of Stock subject to an Option on the date the Option is granted,
subject to adjustment as provided in Paragraph XII.  The Option or
portion thereof may be exercised by delivery of an irrevocable written notice of
exercise to the Company.  The purchase price of the Option or portion
thereof shall be paid in full in the manner set forth in the applicable Option
Agreement.

     

    (f)           Stockholder Rights and
Privileges.  The Holder shall be entitled to all the privileges
and rights of a stockholder only with respect to such shares of Stock as have
been purchased under the Option and for which certificates of stock have been
registered in the Holder’s name.

     

    (g)           Options and Stock
Appreciation Rights in Substitution for Stock Options Granted by Other
Corporations.  Options and Stock Appreciation Rights may be
granted under the Plan from time to time in substitution for stock options held
by individuals who become Employees as a result of a merger or consolidation of
their employer with the Company, or the acquisition by the Company of the assets
of such employer, or the acquisition by the Company of stock of such employer
with the result that such employer becomes a Subsidiary.

     

    (h)           Prohibition on
Repricing.  No Option granted hereunder shall be amended to
reduce the Option Price under such Option, or surrendered in exchange for a
replacement Option having a lower purchase price per share; provided, however, that this
Paragraph VII (i) shall not restrict or prohibit any adjustment or other action
taken pursuant to Paragraph XII.

     

    VIII.

     

    STOCK
APPRECIATION RIGHTS

     

    (a)           Stock Appreciation
Rights.  A Stock Appreciation Right is the right to receive an
amount equal to the Spread with respect to a share of Stock upon the exercise of
such Stock Appreciation Rights.  Stock Appreciation Rights may be
granted in connection with the grant of an Option, in which case the Option
Agreement will provide that exercise of Stock Appreciation Rights will result in
the surrender of the right to purchase the shares under the Option as to which
the Stock Appreciation Rights were exercised.  Alternatively, Stock
Appreciation Rights may be granted independently of Options in which case each
Award of Stock Appreciation Rights shall be evidenced by a Stock Appreciation
Rights Agreement.  The Board, or such other person as designated by
the Board, shall designate the portion of Options that will be subject to
treatment as Stock Appreciation Rights under the Plan.  The Spread
with respect to Stock Appreciation Rights shall be payable in cash, provided, however, that the
Stock Appreciation Rights Agreement may specify that the Spread may be payable
in cash, shares of Stock with a Fair Market Value equal to the Spread or in a
combination of cash and shares of Stock, at the election

     

    
      
         

      

      
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    of the
Board.  With respect to Stock Appreciation Rights that are subject to
Section 16 of the Exchange Act, however, the Board shall, except as provided in
Paragraph XII retain discretion (i) to determine the form in which payment of
Stock Appreciation Rights will be made (i.e., cash, securities or any
combination thereof) and (ii) to approve an election by a Holder to receive cash
in full or partial settlement of Stock Appreciation Rights.

     

    (b)           Treatment of Stock
Appreciation Rights Upon Termination of Continuous
Service.  Upon a Holder’s termination of Continuous Service,
all unvested Stock Appreciation Rights shall terminate as of the date of
termination of Continuous Service with the Company.

     

    (c)           Other Terms and
Conditions.  At the time of such Award, the Board may, in its
sole discretion, prescribe additional terms, conditions or restrictions relating
to Stock Appreciation Rights, including, but not limited to, rules pertaining to
termination of employment or the cessation of performing services to the Company
(by retirement, disability, death or otherwise) of a Holder prior to the
expiration of such Stock Appreciation Rights.  Such additional terms,
conditions or restrictions shall be set forth in the Stock Appreciation Rights
Agreement made in conjunction with the Award.  Such Stock Appreciation
Rights Agreements may also include, without limitation, provisions relating to
(i) vesting of Awards, (ii) tax matters (including provisions covering
applicable wage withholding requirements), and (iii) any other matters not
inconsistent with the terms and provisions of this Plan, that the Board shall in
its sole discretion determine, provided, however, that unless
otherwise determined by the Board and provided in a Stock Appreciation Rights
Agreement, the term of an Award of Stock Appreciation Rights shall not exceed
six years from the date of grant and Stock Appreciation Rights shall vest
ratably over five years.  The terms and conditions of the respective
Stock Appreciation Rights Agreements need not be identical.

     

    (d)           Exercise
Price.  The exercise price of each Stock Appreciation Right
shall be determined by the Board, but such exercise price (i) shall not be less
than the Fair Market Value of a share of Stock on the date the Stock
Appreciation Right is granted (or such greater exercise price as may be required
if such Stock Appreciation Right is granted in connection with an Incentive
Stock Option that must have an exercise price equal to 110% of the Fair Market
Value of the Stock on the date of grant pursuant to Paragraph VII), and (ii)
shall be subject to adjustment as provided in Paragraph XII.

     

    IX.

     

    RESTRICTED
STOCK AWARDS

     

    (a)           Forfeiture Restrictions to
be Established by the Board.  Shares of Stock that are the
subject of a Restricted Stock Award shall be subject to restrictions on
disposition by the Holder and an obligation of the Holder to forfeit and
surrender the shares to the Company under certain circumstances (the “Forfeiture
Restrictions”).  The Forfeiture Restrictions shall be determined by
the Board in its sole discretion.  The Board may provide that the
Forfeiture Restrictions shall lapse upon either (i) the attainment of
Performance Objectives, or (ii) the Holder’s Continuous Service for a specified
period of time, or (iii) a combination of any two of the factors listed in
clauses (i) and (ii) of this sentence, or other factors set forth in the
Restricted Stock Agreement.  Each Restricted Stock Award may have
different Forfeiture Restrictions, in

     

    
      
         

      

      
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    the
discretion of the Board; provided, however, that unless
otherwise determined by the Board and provided in a Restricted Stock Agreement,
all Restricted Stock Awards shall vest ratably over a period of five
years.  The Forfeiture Restrictions applicable to a particular
Restricted Stock Award shall not be changed except as permitted by Paragraph
XII.

     

    (b)           Other Terms and
Conditions.  Stock awarded pursuant to a Restricted Stock Award
shall be represented by a stock certificate registered in the name of the Holder
of such Restricted Stock Award.  The Holder shall have the right to
receive dividends with respect to Stock subject to a Restricted Stock Award, to
vote Stock subject thereto and to enjoy all other stockholder rights, except
that (i) the Holder shall not be entitled to delivery of the stock certificate
until the Forfeiture Restrictions shall have expired, (ii) the Company shall
retain custody of the certificate evidencing such Stock until the Forfeiture
Restrictions shall have expired, (iii) the Holder may not sell, transfer,
pledge, exchange, hypothecate or otherwise dispose of the Stock until the
Forfeiture Restrictions shall have expired, and (iv) a breach of the terms and
conditions established by the Board pursuant to the Restricted Stock Agreement
shall cause a forfeiture of the Restricted Stock Award.

     

    (c)           Treatment of Restricted
Stock Awards Upon Termination of Continuous Service.  Upon a
Holder’s termination of Continuous Service with the Company, a Holder shall
forfeit any and all shares of Restricted Stock to which Forfeiture Restrictions
at the time are applicable as of the date of termination of Continuous Service
with the Company.

     

    (d)           Payment for Restricted
Stock.  The Board shall determine the amount and form of any
payment for Stock received pursuant to a Restricted Stock Award; provided, however, that in the
absence of such a determination, a Holder shall not be required to make any
payment for Stock received pursuant to a Restricted Stock Award, except to the
extent otherwise required by law.  To the extent the Holder is subject
to any tax liability as a result of a Restricted Stock Award, the Holder may
offer as payment for such tax liability shares of Stock, the value of which
shall in whole or in part satisfy such tax liability.

     

    (e)           Agreements.  At
the time any Award is made under this Paragraph IX, the Company and the Holder
shall enter into a Restricted Stock Agreement setting forth each of the matters
as the Board may determine to be appropriate.  The Board may, in its
sole discretion, prescribe additional terms, conditions or restrictions relating
to Restricted Stock Awards.

     

    X.

     

    PERFORMANCE
AWARDS

     

    (a)           Delegation to
Committee.  At any time on or after the Company qualifies as a
“publicly held corporation” as defined in Section 162(m) and the applicable
regulations, all decisions with respect to Performance Awards to Covered
Employees must be made by a Committee of two or more “outside directors” as set
forth in 162(m) and the applicable regulations, and such a Committee must grant
to Covered Employees all Options and Stock Appreciation Rights intended to be
“performance-based” under Section 162(m).  For the avoidance of doubt,
prior to such time that the Company qualifies as a “publicly held

     

    
      
         

      

      
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    corporation,”
all Awards granted hereunder shall be made by the Board, and any reference in
this Paragraph X to the Committee shall be deemed to be a reference to the
Board.

     

    (b)           Performance
Awards.  The Committee shall grant Performance Awards in the
form of actual shares of Stock, Phantom Stock or Restricted Stock.  In
the event that a share certificate is issued in respect of Performance Awards,
such certificate shall be registered in the name of the Holder,
but shall be held by the Company until the time the performance shares are
earned.  In addition, the Committee may make cash bonuses to Holders
based on the Performance Objectives described herein; such cash bonuses shall be
subject to the provisions of Paragraph V(a).  The Performance
Objectives and the length of the Performance Period shall be determined by the
Committee.  The Committee shall determine in its sole discretion
whether Performance Awards shall be granted in the form of Stock, Phantom Stock
or Restricted Stock or shall be paid in cash, Stock, or a combination of cash
and Stock.

     

    (c)           Performance Award
Limits.  Each Performance Award shall have a maximum value
established by the Committee at the time of grant of such Award; provided, however, that no
Covered Employee may be granted a Performance Award in any calendar year during
the Performance Period where the value of such award exceeds the Fair Market
Value of 600,000 shares of Stock, subject to Paragraph XII (or, to the extent
the Performance Awards are paid in cash, the maximum dollar amount of any such
Award shall be the equivalent cash value based on Fair Market Value of such
number of shares of Stock on the last day of the Performance
Period).

     

    (d)           Performance
Measures.  A Performance Award shall be awarded to an Employee,
officer or director of the Company contingent upon future performance of the
Employee, officer or director of the Company or any Subsidiaries, or division or
department thereof by or in which he is employed or for which he performs
services during the Performance Period.  The Committee shall establish
the performance measures applicable to such performance prior to the beginning
of the Performance Period but subject to such later revisions as the Committee
shall deem appropriate to reflect significant unforeseen events or
changes.  The performance measures established by the Committee may be
based on (i) the price of a share of Stock, (ii) the Company’s earnings per
share, (iii) the Company’s revenue or EBITDA, (iv) the revenue or EBITDA of a
business unit of the Company designated by the Committee, (v) the return on
stockholder’s equity achieved by the Company, (vi) the Company or business
unit’s pre-tax cash flow from operations, or (vii) a combination of such
factors.

     

    (e)           Performance
Objectives.  The Committee shall establish the Performance
Objective for each Performance Award, consisting of one or more business
criteria permitted as Performance Goals hereunder, one or more levels of
performance with respect to each such criteria, and the amount or amounts
payable or other rights that the Holder will be entitled to upon achievement of
such levels of performance.  The Performance Objective shall be
established by the Committee prior to, or reasonably promptly following the
inception of, a Performance Period but, to the extent required by Section
162(m), by no later than the earlier of the date that is ninety (90) days after
the commencement of the Performance Period or the day prior to the date on which
twenty-five percent of the Performance Period has elapsed.  More than
one Performance Goal may be incorporated in a Performance Objective, in which
case achievement with respect to each Performance Goal may be assessed
individually or in combination with each other.  The Committee may, in
connection with the establishment of

     

    
      
         

      

      
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    Performance
Objectives for a Performance Period, establish a matrix setting forth the
relationship between performance of two or more Performance Goals and the amount
of the Performance Award payable for that Performance Period.  The
level or levels of performance specified with respect to a Performance Goal may
be established in absolute terms, as objectives relative to performance in prior
periods, as an objective compared to the performance of one or more comparable
companies or an index covering multiple companies, or otherwise as the Committee
may determine.  Performance Objectives shall be objective and shall
otherwise meet the requirements of Section 162(m).  Performance
Objectives may differ for Performance Awards granted to any one Holder or to
different Holders.  A Performance Award to a Holder who is a Covered
Employee shall (unless the Committee determines otherwise) provide that in the
event of the Holder’s termination of Continuous Service prior to the end of the
Performance Period for any reason, such Performance Award will be payable only
(i) if the applicable Performance Objectives are achieved, (ii) to the extent,
if any, as the Committee shall determine or (iii) as otherwise provided in the
Performance Award Agreement at the time granted.

     

    (f)           Certification.  Following
the completion of each Performance Period, the Committee shall certify in
writing, in accordance with the requirements of Section 162(m), whether the
Performance Objectives and other material terms of the Performance Award have
been achieved or met.  Unless the Committee determines otherwise,
Performance Awards shall not be settled until the Committee has made the
certification specified under this Section X(f).

     

    (g)           Awards
Criteria.  In determining the value of Performance Awards, the
Committee shall take into account an Employee’s, officer’s or director’s
responsibility level, performance, potential, other Awards and such other
considerations as it deems appropriate.

     

    (h)           Adjustments.  The
Committee may, in its discretion, reduce or eliminate the amount of payment with
respect to the Performance Award to a Covered Employee, notwithstanding the
achievement of specified Performance Objectives; provided, however, that no such
adjustment shall be made which would adversely affect a Holder following a
Change in Control.

     

    (i)           Payment.  Following
the end of the Performance Period, the Holder of a Performance Award shall be
entitled to receive payment of an amount, not exceeding the maximum value of the
Performance Award, based on the achievement of the performance measures for such
Performance Period, as determined by the Committee.  Payment of a
Performance Award may be made in cash, Stock or a combination thereof, as
determined by the Committee.  Payment shall be made in a lump sum or
in installments as prescribed by the Committee.  Any payment to be
made in Stock shall be based on the Fair Market Value of the Stock on the
payment date.  If a payment of cash is to be made on a deferred basis,
the Committee shall establish whether interest shall be credited, the rate
thereof and any other terms and conditions applicable thereto in accordance with
Paragraph XV(n).

     

    (j)           Treatment of Performance
Awards Upon Termination of Continuous Service.  A Performance
Award shall terminate if the Holder does not remain continuously in the employ
of the Company or fails to perform services for the Company at all times during
the applicable Performance Period.

     

    
      
         

      

      
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    (k)           Agreements.  At
the time any Award is made under this Paragraph X, the Company and the Holder
shall enter into a Performance Award Agreement setting forth each of the matters
contemplated hereby and, in addition, such matters set forth in Paragraph X(b)
as the Committee may determine to be appropriate.  The terms and
provisions of the respective agreements need not be identical.

     

    XI.

     

    PHANTOM
STOCK AWARDS

     

    (a)           Phantom Stock
Awards.  Phantom Stock Awards are rights to receive shares of
Stock (or cash in an amount equal to the Fair Market Value thereof), or rights
to receive an amount equal to any appreciation in the Fair Market Value of Stock
(or portion thereof) over a specified period of time, upon either (i) the
attainment of Performance Objectives or (ii) the Holder’s Continuous Service for
a specified period of time, or (iii) a combination of any two of the factors
listed in clauses (i) and (ii) of this sentence, or other factors set forth in
the Phantom Stock Award.  Each Phantom Stock Award shall have a
maximum value established by the Board at the time of such Award.

     

    (b)           Award
Period.  The Board shall establish, with respect to and at the
time of each Phantom Stock Award, a period over which or the event upon which
the Award shall vest with respect to the Holder, provided, however, that unless
subject to a performance-based vesting schedule under Paragraph X, or unless
otherwise determined by the Board and provided in a Phantom Stock Award
Agreement, each Phantom Stock Award shall vest ratably over a period of five
years.

     

    (c)           Awards
Criteria.  In determining the value of Phantom Stock Awards,
the Board shall take into account an Employee’s, officer’s or director’s
responsibility level, performance, potential, other Awards and such other
considerations as it deems appropriate.

     

    (d)           Payment.  Following
the end of the vesting period for a Phantom Stock Award, the Holder of a Phantom
Stock Award shall be entitled to receive payment of an amount, not exceeding the
maximum value of the Phantom Stock Award, based on the then vested value of the
Award.  Payment of a Phantom Stock Award may be made in cash, Stock or
a combination thereof as determined by the Board.  Payment shall be
made in a lump sum or in installments as prescribed by the Board in its sole
discretion.  Any payment to be made in Stock shall be based on the
Fair Market Value of the Stock on the payment date.  Cash dividend
equivalents may be paid during or after the vesting period with respect to a
Phantom Stock Award, as determined by the Board.  If a payment of cash
is to be made on a deferred basis, the Board shall establish whether interest
shall be credited, the rate thereof and any other terms and conditions
applicable thereto in accordance with Paragraph XV(n).

     

    (e)           Treatment of Phantom Stock
Awards Upon Termination of Continuous Service. Unless
otherwise provided in the Phantom Stock Award Agreement, a Phantom Stock Award
shall terminate if the Holder does not remain continuously in the employ of the
Company or fails to perform services for the Company at all times during the
applicable vesting period.

     

    
      
         

      

      
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    (f)           Agreements.  At
the time any Award is made under this Paragraph XI, the Company and the Holder
shall enter into a Phantom Stock Award Agreement setting forth each of the
matters contemplated hereby and, in addition, such matters set forth in
Paragraph IX(b) as the Board may determine to be appropriate.  The
terms and provisions of the respective agreements need not be
identical.

     

    XII.

     

    RECAPITALIZATION
OR REORGANIZATION

     

    (a)           Subdivisions and
Combinations.  In the event the Company, shall at any time,
effect a subdivision (by stock split or otherwise) of the outstanding shares of
Stock into a greater number of shares of Stock (other than (x) a subdivision
upon a merger or consolidation or sale to which Paragraph XIII shall apply or
(y) a stock split effected by means of a stock dividend or distribution to which
Paragraph XII(b)(i) below applies), then in each such event the Exercise Price
in effect at the opening of business on the day after the date upon which such
subdivision becomes effective shall be proportionately
decreased.  Conversely, if the Company shall, at any time or from time
to time, effect a combination (by any reverse stock split or otherwise) of the
outstanding shares of Stock into a smaller number of shares of Stock (other than
a combination upon a merger or consolidation or sale to which Paragraph XIII
applies), then and in each such event the Exercise Price in effect at the
opening of business on the day after the date upon which such combination
becomes effective shall be proportionally increased.  Any adjustment
under this Paragraph XII(a) shall become effective immediately after the opening
of business on the day after the date upon which the subdivision or combination
becomes effective.

     

    (b)           Common Stock
Dividends.  In the event the Company shall, at any time or from
time to time after the grant date of any Award, make or issue to the holders of
its Stock a dividend or distribution payable in, or otherwise make or issue a
dividend or other distribution on any class of its Equity Interests payable in,
shares of Stock (other than a dividend or distribution upon a merger or
consolidation or sale to which Paragraph XIII applies), then and in each such
event the Exercise Price in effect at the opening of business on the day after
the date for the determination of the holders entitled to receive such dividend
or distribution shall be decreased by multiplying such Exercise Price by a
fraction (not to be greater than 1):

     

    
      	
               
      

            	
              (i)

            	
              the
      numerator of which shall be the total number of shares of Stock issued and
      outstanding at the close of business on such date for determination;
      and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      denominator of which shall be the total number of shares of Stock issued
      and outstanding at the close of business on such date for determination
      plus the number of shares of Stock issuable in payment of such dividend or
      distribution.

            

    

     

    (c)           Reclassifications.  A
reclassification of the Stock (other than any such reclassification in
connection with a merger or consolidation or sale to which Paragraph XIII
applies) into shares of Stock and shares of any other class of stock shall be
deemed:

     

    
      
         

      

      
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    (i)           a
distribution by the Company to the holders of its Stock of such shares of such
other class of stock for the purposes and within the meaning of Paragraph XII(d)
below (and the effective date of such reclassification shall be deemed to be
“the date for the determination of the holders entitled to receive such dividend
or distribution” for the purposes and within the meaning of Paragraph XII(d);
and

     

    
      	
               
      

            	
              (ii)

            	
              if
      the outstanding shares of Stock shall be changed into a larger or smaller
      number of shares of Stock as a part of such reclassification, such change
      shall be deemed a subdivision or combination, as the case may be, of the
      outstanding shares of Stock for the purposes and within the meaning of
      Paragraph XII(a) above (and the effective date of such reclassification
      shall be deemed to be “the date upon which such subdivision becomes
      effective” or “the date upon which such combination becomes effective”, as
      applicable, for the purposes and within the meaning of Paragraph
      XII(a)).

            

    

     

    (d)           Property
Dividends.  In the event the Company shall, at any time or from
time to time, make or issue a dividend or distribution to a holder of its Stock
a Property Dividend (other than (x) an Excluded Dividend or (y) any dividend or
distribution of any rights or warrants referred to in Paragraph XII(e)), then
and in each such event the Exercise Price in effect immediately prior to the
close of business on the date for the determination of the holders of Stock
entitled to receive such dividend or distribution shall be decreased by
multiplying such Exercise Price by a fraction (not to be greater than
1):

     

    
      	
               
      

            	
              (i)

            	
              the
      numerator of which shall be the Fair Market Value per share of Stock on
      such date for determination minus the portion applicable to one share of
      Stock of the fair market value (as determined in good faith by the Board,
      whose determination shall be conclusive and evidenced by a Board
      Resolution) of such Property Dividend so distributed;
  and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              the
      denominator of which shall be such Fair Market Value per share of Stock on
      such date for determination.

            

    

     

    If the
Board determines the fair market value of any Property Dividend for purposes of
this Paragraph XII(d) by reference to the actual or when issued trading market
for any securities comprising such Property Dividend, it must in doing so
consider, to the extent applicable, the prices in such market over the same
period used in computing the Current Market Price.

     

    (e)           Distributions of
Warrants.  In the event the Company shall, at any time or from
time to time, make or issue any warrants or other rights to subscribe for or
purchase any shares of Common Stock (other than a distribution of such warrants
or rights upon a merger or consolidation or sale to which Paragraph XIII
applies), which are exercisable for a period of not more than 60 days from the
issuance thereof, and the consideration per share for which shares of Stock may
at any time thereafter be issuable pursuant to such warrants or other rights
shall be less than the Current Market Price on the date of issuance, then and in
each such event the Exercise Price at the opening of business on the day after
such date for determination shall be decreased by multiplying such Exercise
Price by a fraction (not to be greater than 1):

     

    
      
         

      

      
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    (i)           the
numerator of which shall be the number of shares of Stock outstanding at the
close of business on such date for determination plus the number of shares of
Stock that the minimum consideration received and receivable by the Company for
the issuance of such maximum number of shares of Stock pursuant to the terms of
such warrants or other rights would purchase at such Current Market Price;
and

     

    
      	
               
      

            	
              (ii)

            	
              the
      denominator of which shall be the number of shares of Stock outstanding at
      the close of business on such date for determination plus the maximum
      number of shares of Stock issuable pursuant to all such warrants or other
      rights.

            

    

     

    Any
adjustment under Paragraph XII(e) shall, subject to Paragraph XII(h)(iv), become
effective immediately after the opening of business on the day after the date
for the determination of the holders of shares of Stock entitled to receive such
dividend or distribution.  Rights or warrants issued by the Company to
all holders of Stock entitling the holders thereof to subscribe for or purchase
shares of Stock, which rights or warrants (A) are deemed to be transferred with
such shares of Stock, (B) are not exercisable and (C) are also issued in respect
of future issuances of Stock, in each case in clauses (A) through (C) until the
occurrence of a specified event or events, shall for purposes of this Paragraph
XII(e) and Paragraph XII(d) not be deemed distributed until the occurrence of
the earliest such event.

     

    (f)           Superseding
Adjustment.  In the event at any time after any adjustment of
the number of shares of Stock for which any Award is exercisable shall have been
made pursuant to Paragraph XII(e) on the basis of the distribution of warrants
or other rights or after any new adjustment of the number of shares of Stock for
which any Award is exercisable shall have been made pursuant to this Paragraph
XII(f), such warrants or rights shall expire, and all or a portion of such
warrants or rights shall not have been exercised, then, and in each such case,
upon the election of the Company, such previous adjustment in respect of such
warrants or rights which have expired without exercise shall be rescinded and
annulled and the shares of Stock that were deemed for purposes of the
computations set forth in Paragraph XII(e) to have been issued by virtue of such
adjustment in respect of such warrants or rights shall no longer be deemed to
have been issued.

     

    (g)           Adjustment of Number of
Shares.  Upon each adjustment in the Exercise Price pursuant to
Paragraphs XII(a), XII(b), XII(c), XII(d), or XII (e), the number of shares of
Stock purchasable or receivable under outstanding Awards upon payment of the
applicable Exercisable Price shall be adjusted, to the nearest whole share, to
the product obtained by multiplying the number of shares of Stock so purchasable
or receivable immediately prior to such adjustment in the Exercise Price by a
fraction (i) the numerator of which shall be the Exercise Price immediately
prior to such adjustment, and (ii) the denominator of which shall be the
Exercise Price immediately after such adjustment.

     

    (h)           Other Provisions Applicable
to Adjustments.  The following provisions shall be applicable
to the making of adjustments to the Conversion Price under this Paragraph
XII:

     

    
      	
               
      

            	
              (i)

            	
              Treasury
      Stock.  The dividend or distribution of any issued shares of
      Stock owned or held by or for the account of the Company shall be deemed
      a

            

    

     

    
      
         

      

      
        20

        
          

        

      

      
         

      

    

    dividend
or distribution of shares of Stock for purposes of this Paragraph
XII.  The Company shall not make or issue any dividend or distribution
on shares of Stock held in the treasury of the Company.  For the
purposes of this Paragraph XII, the number of shares of Stock at any time
outstanding shall not include shares held in the treasury of the Company but
shall include shares issuable in respect of scrip certificates issued in lieu of
fractions of shares of Stock.

     

    
      	
               
      

            	
              (ii)

            	
              When
      Adjustments Are to be Made.  The adjustments required by
      Paragraph XII shall be made whenever and as often as any specified event
      requiring an adjustment shall occur, except that no adjustment of the
      Exercise Price that would otherwise be required shall be made unless and
      until such adjustment either by itself or with other adjustments not
      previously made increases or decreases the Exercise Price immediately
      prior to the making of such adjustment by at least 1%.  Any
      adjustment representing a change of less than such minimum amount (except
      as aforesaid) shall be carried forward and made as soon as such
      adjustment, together with other adjustments required by Paragraph XII and
      not previously made, would result in such minimum
    adjustment.

            

    

     

    
      	
               
      

            	
              (iii)

            	
              Fractional
      Interests.  In computing adjustments under this Paragraph XII,
      fractional interests in Stock shall be taken into account to the nearest
      share.

            

    

     

    
      	
               
      

            	
              (iv)

            	
              Compliance
      with Governmental Requirements.  Before taking any action that
      would cause an adjustment reducing the Exercise Price below the then par
      value of any of the shares of Stock, the Company will take any corporate
      action that may be necessary in order that the Company may validly and
      legally issue fully paid and non-assessable shares of such Stock at such
      adjusted Exercise Price.

            

    

     

    (i)           Notice of
Adjustments.  Upon the occurrence of an adjustment pursuant to
Paragraph XII, the Company at its expense shall promptly:

     

    
      	
               
      

            	
              (i)

            	
              compute
      such adjustments in accordance with the terms hereof;
  and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              after
      such adjustments become effective, deliver to all Holders notice in
      accordance with requirements under Paragraph XV(I) setting forth such
      adjustments (including the kind and amount of securities, cash or other
      property for which the Awards shall be exercisable and the Exercise Price)
      and showing in detail the facts upon which such adjustment is
      based.

            

    

     

    (j)           The
existence of the Plan, the Award Agreements and the Awards granted hereunder
shall not affect or restrict in any way the right or power of the Company, the
Board or the shareholders of the Company to make, declare, payor authorize any
adjustment, recapitalization, reorganization or other change in the Company’s
capital structure or its business, any merger or consolidation of the Company,
any issue of stock or of options, warrants or rights to purchase stock or of
bonds, debentures, preferred or prior preference stocks whose rights are
superior to or affect the Stock or the rights thereof or which are convertible
into or

     

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    exchangeable
for Stock, or any Property Dividend or the dissolution or liquidation of the
Company, or any sale or transfer of all or any part of its assets or business,
or any other corporate act or proceeding, whether of a similar character or
otherwise.

     

    (k)           Except
as hereinbefore expressly provided in this Paragraph XII, the issuance by the
Company of shares of stock of any other class of Equity Interests or securities
convertible into shares of stock of any other class of Equity Interests, for
cash, property, labor or services, upon direct sale, upon the exercise of rights
or warrants to subscribe therefore, or upon conversion of shares or obligations
of the Company convertible into such shares or other securities, and in any case
whether or not for fair value, shall not affect, and no adjustment by reason
thereof shall be made with respect to, the number of shares of Stock subject to
Awards theretofore granted or the Exercise Price, if applicable.

     

    XIII.

     

    CHANGE IN
CONTROL

     

    (a)           Upon
the occurrence of a Change in Control, all outstanding Awards shall immediately
vest and become exercisable or satisfiable, as
applicable.  Notwithstanding the foregoing, the Board may also
determine, in its discretion, the following:  (i) except in the case
of Option Awards, that upon the occurrence of a Change in Control, each Award
shall terminate within a specified number of days after notice to the Holder,
and such Holder shall receive, with respect to each share of Stock subject to
such Award, cash in an amount equal to the excess, if any, of the Change in
Control Value over the Exercise Price, if any or (ii) in the case of Option
Awards, but only if a
Holder’s Option Agreement does not provide otherwise, the Board may act to
effect one or more of the following alternatives with respect to outstanding
Options, which may vary among individual Holders and which may vary among
Options held by any individual Holder:  (1) determine a limited period
of time for the exercise of such Options on or before a specified date (before
or after such Change in Control) after which specified date all unexercised
Options and all rights of Holders thereunder shall terminate, (2) require the
mandatory surrender to the Company by selected Holders of some or all of the
outstanding Options held by such Holders (irrespective of whether such Options
are then exercisable under the provisions of the Plan) as of a date, before or
after such Change in Control, specified by the Board, in which event the Board
shall thereupon cancel such Options and the Company shall pay to each Holder an
amount of cash per share equal to the excess, if any, of the Change in Control
Value of the shares subject to such Option over the Exercise Price(s) under such
Options for such shares, (3) make such adjustments to Options then outstanding
as the Board deems appropriate to reflect such Change in Control (provided, however, that the
Board may determine in its sole discretion that no adjustment is necessary to
Options then outstanding) or (4) provide that thereafter upon any exercise of an
Option theretofore granted the Holder shall be entitled to purchase under such
Option, in lieu of the number of shares of Stock then covered by such Option,
the number and class of Equity Interests or other securities or property
(including, without limitation, cash) to which the Holder would have been
entitled pursuant to the terms of the agreement of merger, consolidation or sale
of assets and dissolution if, immediately prior to such merger, consolidation or
sale of assets and dissolution the Holder had been the holder of record of the
number of shares of Stock then covered by such Option.  The provisions
contained in this subparagraph (a) shall be inapplicable to an Award granted
within six (6) months before the occurrence of a Change in

     

    
      
         

      

      
        22

        
          

        

      

      
         

      

    

    Control,
but only if (x) the Holder of such Award is subject to the reporting
requirements of Section 16(a) of the Exchange Act and (y) such provisions (even
after preapproval by the Board pursuant to Rule 16b-3) would create a matching
transaction under Section 16(b) of the Exchange Act with respect to such
Holder.  The provisions contained in this subparagraph (a) shall
not alter any rights or terminate any rights of the Holder to further payments
pursuant to any other agreement with the Company following a Change in
Control.  The Board may, in its sole discretion, include such further
provisions and limitation in any agreement documenting such Awards as it may
deem equitable and in the best interest of the Company.

     

    (b)           Any
adjustment provided for in subparagraph (a) above shall be subject to any
required stockholder action.

     

    XIV.

     

    AMENDMENT
AND TERMINATION OF THE PLAN

     

    (a)           The
Board in its discretion may terminate the Plan at any time with respect to any
shares for which Awards have not theretofore been granted.  Subject to
the limitations in the Plan, the Board shall have the right to alter or amend
the Plan or any part thereof from time to time; provided that no
change in any Award theretofore granted may be made which would impair the
rights of the Holder without the consent of the Holder (unless such change is
required in order to cause the benefits under the Plan to qualify as
performance-based compensation within the meaning of Section 162(m) and
applicable interpretive authority thereunder); and provided, further, that the
Board may not, without approval of the stockholders, amend the Plan
to:

     

    
      	
               
      

            	
              (i)

            	
              increase
      the maximum number of shares which may be issued on exercise or surrender
      of an Award, except as provided in Paragraph
  XII;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              change
      the class of any Employee, officer or director eligible to receive Awards
      or materially increase the benefits accruing to any Employee, officer, or
      director under the Plan;

            

    

     

    
      	
               
      

            	
              (iii)

            	
              extend
      the maximum period during which Awards may be granted under the
      Plan;

            

    

     

    
      	
               
      

            	
              (iv)

            	
              modify
      materially the requirements as to eligibility for participation in the
      Plan; or

            

    

     

    
      	
               
      

            	
              (v)

            	
              decrease
      any authority granted to the Committee in contravention of Rule 16b-3 or
      Section 162(m).

            

    

     

    XV.

     

    MISCELLANEOUS

     

    (a)           Representations.  The
Board may require each Holder purchasing or acquiring shares pursuant to an
Award under the Plan to represent to and agree with the Company in

     

    
      
         

      

      
        23

        
          

        

      

      
         

      

    

    writing
that such Holder is acquiring the shares for investment and without a view to
distribution thereof.

     

    (b)           Forfeiture.  Notwithstanding
anything in the Plan to the contrary and unless otherwise specifically provided
in an Award Agreement, in the event a Holder or former Holder is terminated for
Cause, the Board may cancel any outstanding Award granted to such Holder or
former Holder, in whole or in part, whether or not vested.  Such
cancellation shall be effective as of the date specified by the
Board.  Except in the case of Performance Awards granted under
Paragraph X and as provided in Paragraph XIII, each Award shall be forfeited and
cancelled upon a termination of the Holder’s Continuous Service for any reason,
to the extent that such Award has not become vested (for prior Continuous
Service) in 20% installments on each anniversary of the Award’s grant date, and
any vested Award shall cease to be exercisable (if applicable) no later than the
first anniversary of the Holder’s termination of Continuous Service for any
reason.

     

    (c)           No Right to an
Award.  Neither the adoption of the Plan by the Company nor any
action of the Board shall be deemed to give an Employee, officer or director any
right to be granted an Award to purchase Stock, a right to a Stock Appreciation
Right, a Restricted Stock Award, a Performance Award or a Phantom Stock Award or
any of the rights hereunder except as may be evidenced by an Award or by an
Option Agreement, Stock Appreciation Rights Agreement, Restricted Stock
Agreement, Performance Award Agreement or Phantom Stock Award Agreement on
behalf of the Company, and then only to the extent and on the terms and
conditions expressly set forth therein.

     

    (d)           No Employment or Service
Rights Conferred.  Nothing contained in the Plan shall (i)
confer upon any Employee, officer or director any right with respect to
continuation of employment or service with the Company or (ii) interfere in any
way with the right of the Company to terminate his or her employment or service
at any time, with or without cause.

     

    (e)           Other
Laws.  The Company shall not be obligated to issue any shares
of Stock pursuant to any Award granted under the Plan at any time when the
shares covered by such Award have not been registered under the Securities Act
of 1933 and such other state and federal laws, rules or regulations as the Board
deems applicable and, in the opinion of legal counsel for the Company, there is
no exemption from the registration requirements of such laws, rules or
regulations available for the issuance and sale of such shares.  No
fractional shares of Stock shall be delivered, nor shall any cash in lieu of
fractional shares be paid.

     

    (f)           Withholding.  The
Company shall have the right to deduct in connection with all Awards any taxes
required by law to be withheld and to require any payments required to enable it
to satisfy its withholding obligations.  Upon (i) disposition of
shares of Stock acquired pursuant to the exercise of an Incentive Stock Option
granted pursuant to the Plan within two (2) years of the grant of the Incentive
Stock Option or within one (1) year after exercise of the Incentive Stock
Option, or (ii) exercise of a Nonqualified Stock Option (or an Incentive Stock
Option treated as a Nonqualified Stock Option), or the vesting or payment of any
other Award under the Plan, or (iii) under any other circumstances determined by
the Board in its sole discretion, the Company shall have the right to require
any Holder, and such Holder by accepting the Awards granted under the Plan
agrees, to pay to the Company the amount of any taxes which

     

    
      
         

      

      
        24

        
          

        

      

      
         

      

    

    the
Company shall be required to withhold with respect thereto.  In the
event of clauses (i), (ii) or (iii), with the consent of the Board, at its sole
discretion, such Holder may elect to have the Company withhold shares of Stock
having a Fair Market Value equal to the amount of the withholding tax obligation
as determined by the Company; provided, however, that no
shares of Stock are withheld with a value exceeding the minimum amount of tax
required to be withheld by law.  Such shares so delivered to satisfy
the minimum withholding obligation may be either shares withheld by the Company
upon the exercise of the Option or other shares.  At the Board’s sole
discretion, a Holder may elect to have additional taxes withheld and satisfy
such withholding with cash or shares of Stock held for at least six (6) months
prior to exercise if, in the opinion of the Company’s outside accountants, doing
so would not result in a charge against earnings.

     

    (g)           No Restriction on Corporate
Action.  Nothing contained in the Plan shall be construed to
prevent the Company from taking any corporate action which is deemed by the
Company to be appropriate or in its best interest, whether or not such action
would have an adverse effect on the Plan or any Award made under the
Plan.  No Employee, officer or director beneficiary or other person
shall have any claim against the Company as a result of any such
action.

     

    (h)           Restrictions on
Transfer.  An Award shall not be transferable otherwise than by
will or the laws of descent and distribution or pursuant to a “qualified
domestic relations order” as defined by the Code or Title I of the Employee
Retirement Income Security Act of 1974, as amended, or the rules thereunder, and
shall be exercisable during the Holder’s lifetime only by such Holder or the
Holder’s guardian or legal representative.  Except as otherwise
provided herein, no Award or interest or right therein or part thereof shall be
liable for the debts, contracts, or engagements of the Holder or his or her
successors in interest or shall be subject to the disposition by transfer,
alienation, anticipation, pledge, encumbrances, assignment or any other means
whether such disposition be voluntary or involuntary or by operation of law,
judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including bankruptcy), and any attempted disposition thereof shall
be null and void and of no effect.  However, the Board may, in its
discretion, provide in an Option Agreement (other than with respect to an
Incentive Stock Option) that the Option right granted to the individual may be
transferred (in whole or in part and shall be subject to such terms and
conditions as the Board may impose thereon, including, without limitation, the
approval by the Company of the form of transfer agreement) by the individual to
(i) the spouse, children, grandchildren and/or the direct descendents of the
individual (“Immediate Family Members”), (ii) a partnership in which such
Immediate Family Members and, if applicable, the individual are the only
partners, or (iii) any other person or entity otherwise permitted by the
Board.  Following transfer, any such transferred Option rights shall
continue to be subject to the same terms and conditions as were applicable to
the Option rights immediately prior to transfer; provided, however, that no
transferred Option rights shall be exercisable unless arrangements satisfactory
to the Company have been made to satisfy any tax withholding obligations the
Company may have with respect to the Option rights.

     

    (i)           Rule
16b-3.  It is intended that any grant of an Award (and
subsequent transactions contemplated thereby) made to a person subject to
Section 16 of the Exchange Act meet all of the requirements of Rule 16b-3 and
that the Plan conform to the extent necessary with all provisions of the
Securities Act of 1933, as amended and the Exchange Act and any and
all

     

    
      
         

      

      
        25

        
          

        

      

      
         

      

    

    regulations
and rules promulgated by the SEC, to the extent the Company or any Holder is
subject to the provisions thereof.  Notwithstanding anything herein to
the contrary, the Plan shall be administered and Awards shall be granted and may
be exercised, only in such a manner as to conform to such laws, rules and
regulations.  If this Plan or any such Award does not comply with Rule
16b-3, or any other laws, rules and regulations, then to the extent permitted by
law, the Plan and such Award shall be construed or deemed amended to the extent
necessary to comply with Rule 16b-3 or such other laws, rules and
regulations.

     

    (j)           Section
162(m).  If the Plan is subject to Section 162(m), it is
intended that the Plan comply fully with and meet all the requirements of
Section 162(m) so that Options, Stock Appreciation Rights and Performance Awards
hereunder shall constitute “performance-based” compensation within the meaning
of Section 162(m).  If any provision of the Plan would disqualify the
Plan or would not otherwise permit the Plan to comply with Section 162(m) as so
intended, such provision shall be construed or deemed amended to conform to the
requirements or provisions of Section 162(m); provided, however, that no such
construction or amendment shall have an adverse effect on the economic value to
a Holder of any Award previously granted hereunder.  The Board may,
without stockholder or grantee approval (unless otherwise required under
applicable law to be effective), amend the Plan or the relevant Award agreement
retroactively or prospectively to the extent it determines necessary in order to
comply with any subsequent clarification of Section 162(m) required to preserve
the Company’s Federal income tax deduction for compensation paid pursuant to any
such Award, and no such amendment will be made if such amendment would
disqualify any Options, Stock Appreciation Rights or Performance Awards as
“performance based compensation” under Section 162(m).

     

    (k)           Unfunded
Status.  The Plan is intended to constitute an “unfunded plan”
for incentive compensation and nothing contained in the Plan shall give any
Holder any rights that are greater than those of a general unsecured creditor of
the Company.  The Company shall not be required to establish any
special or separate fund or to make any other segregation of funds or assets to
assure the payment of any Award.

     

    (l)           Governing
Law.  This Plan shall be construed in accordance with the laws
of the State of Delaware.

     

    (m)           Notice to
Holders.  To the extent that the Plan requires the Company to
give notice to any Holder, such notice shall be sufficiently given (unless
otherwise expressly provided), if in writing and mailed, first class postage
prepaid, to each Holder affected by such event, at his most current address as
it appears on record with the Company, no later than the latest date, and no
earlier than the earliest date, prescribed for giving such notice under the
Plan.  Where the Plan provide for notice in any manner, such notice
may be waived in writing by either party entitled to receive such notice either
before, or after the event and such waiver shall be the equivalent of such
notice.

     

    (n)           Section 409A.
Notwithstanding anything in this Plan to the contrary, if any Plan provision or
Award under the Plan, or any deferral permitted under the Plan, would result in
the imposition of an applicable tax under Section 409A of the Code and related
regulations and United States Department of Treasury pronouncements (“Section
409A”), that Plan provision or Award will be reformed, and that deferral
provision will be structured, to avoid imposition of the

     

    
      
         

      

      
        26

        
          

        

      

      
         

      

    

    applicable
tax and no action taken to comply with Section 409A shall be deemed to adversely
affect the Holder’s rights to an Award.

     

    IN WITNESS WHEREOF, the Company has
caused this Plan to be executed on this 23rd day of March, 2006.

     

    TEXAS PETROCHEMICALS INC.

     

    

     

    By:           /s/
Charles W. Shaver

    Charles W. Shaver

    Title:       Chief
Executive Officer/President

     

    

    
      
         

      

      
        27exh10-8.htm

    
      

      

    

     

    TEXAS
PETROCHEMICALS INC.

    2009
LONG-TERM INCENTIVE PLAN

    

     

    1.      Plan.  The Texas
Petrochemicals Inc. 2009 Long-Term Incentive Plan (the “Plan”) was adopted by
the Board of Directors of Texas Petrochemicals Inc., a Delaware corporation (the
“Company”), to reward certain officers, employees and directors of the Company
and its Subsidiaries by enabling them to acquire shares of Common Stock and by
providing for certain cash benefits.

     

    2.      Objectives.  The Plan is
designed to attract and retain officers, employees and directors of the Company
and its Subsidiaries, to encourage the sense of proprietorship of such officers,
employees and directors, to stimulate the active interest of such persons in the
development and financial success of the Company and its Subsidiaries and to
provide such persons with additional incentive and reward opportunities designed
to enhance the profitable growth of the Company an its
Subsidiaries.  These objectives are to be accomplished by making
Awards under this Plan and thereby aligning the interests of Participants and
the Company’s stockholders, motivating Participants to act in the long-term best
interests of the Company and its Subsidiaries and providing Participants with a
proprietary interest in the growth and performance of the Company and its
Subsidiaries.

     

    3.      Definitions.  As used herein,
the terms set forth below shall have the following respective
meanings:

     

    “Award”
means any Option, SAR, Stock Award, Restricted Stock Unit Award, Performance
Share Unit Award, Cash Award or Performance Award granted, whether singly, in
combination or in tandem, to a Participant pursuant to such applicable terms,
conditions and limitations (including treatment as a Performance Award) as the
Committee may establish in order to fulfill the objectives of the
Plan.

     

    “Award
Agreement” means a written agreement setting forth the terms, conditions and
limitations applicable to an Award, to the extent the Committee determines such
agreement is necessary.

     

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

     

    “Cash
Award” means an award denominated in cash.

     

    “Change
in Control” means and shall be deemed to have occurred on the date of the first
to occur of any of the following:  (i) any “person” (as such term
is defined in Section 3(a)(9) of the Exchange Act and is used in Sections
13(d)(3) and 14(d)(2) of the Exchange Act) or group of persons acting together
(within the meaning of Section 13(d)(3) of the Exchange Act) becomes the direct
or indirect beneficial owner of 50% or more of the Company’s voting stock; (ii)
an election of Directors not in accord with the recommendations of the majority
of the Directors who were in office before the pending election (the “Incumbent
Directors”), where such election results in the replacement of at least a
majority of the Incumbent Directors; (iii) the stockholders of the Company
approve an agreement to merge or consolidate, or otherwise reorganize, with or
into one or more entities, as a result of which outstanding securities with less
than 50% of the fair market value of the surviving or resulting entity are, or
are to be, owned by stockholders of the Company immediately prior to such
merger, consolidation or reorganization; or (iv) the sale of the Company’s
assets having a total gross fair market value of at least 50% of all of the
Company’s assets immediately before such sale.  The definition of
“Change in Control” is intended to comply with, and shall be interpreted in a
manner compliant with, a change in the ownership or effective control of a
corporation or a change in the ownership of a substantial portion of the assets
of a corporation under Section 409A of the Code and accompanying U.S. Treasury
regulations.

     

    “Code”
means the Internal Revenue Code of 1986, as amended from time to
time.

     

    “Committee”
means such committee of two or more members of the Board as is designated by the
Board to administer the Plan, or the full Board if so designated.

     

    “Common
Stock” means the Common Stock, par value $0.01 per share, of the
Company.

     

    “Company”
has the meaning set forth in Section 1.

     

    “Director”
means a member of the Board of Directors of the Company.

     

    “Dividend
Equivalents” means, with respect to Restricted Stock Units, an amount equal to
all dividends and other distributions (or the economic equivalent thereof) that
are payable to stockholders of record during the Restriction Period on a like
number of shares of Common Stock granted in the Award.

     

    “Employee”
means an employee or officer of the Company or any of its
Subsidiaries.

     

    “Equity
Award” means any Option, SAR, Stock Award, or Non-Qualified Performance Award
(other than a Non-Qualified Performance Award denominated in cash) granted to a
Participant under the Plan.

     

    “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

     

    “Fair
Market Value” means, as of a particular date:  (i) if the shares of
Common Stock are listed on the New York Stock Exchange, then the final closing
sales price per share of Common Stock as reported on New York Stock
Exchange

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    Composite
Trading Listings, or a similar report selected by the Company, on that date, or,
if there shall have been no such sale so reported on that date, on the last
preceding date on which such a sale was so reported, (ii) if the shares of
Common Stock are listed on a national securities exchange other than the New
York Stock Exchange, the mean between the highest and lowest sales price per
share of Common Stock on the primary such national securities exchange on that
date, or, if there shall have been no such sale so reported on that date, on the
last preceding date on which such a sale was so reported, (iii) if the shares of
Common Stock are not so listed but are quoted by the NASDAQ Stock Market, Inc.,
the mean between the highest and lowest sales price per share of Common Stock on
the consolidated transaction reporting system for The NASDAQ Stock Market, Inc.
on that date, or, if there shall have been no such sale so reported on that
date, on the last preceding date on which such a sale was so reported, (iv) if
the Common Stock is not so listed or quoted, the mean between the closing bid
and asked price on that date, or, if there are no quotations available for such
date, on the last preceding date on which such quotations shall be available, as
reported by The NASDAQ Stock Market, Inc., or, if not reported by The NASDAQ
Stock Market, Inc., by the National Quotation Bureau, Inc., or (v) if none of
the above are applicable, the fair market value of a share of Common Stock as
determined in good faith by the Committee.

     

    “Grant
Date” means the date an Award is granted to a Participant pursuant to the
Plan.

     

    “Grant
Price” means the price at which a Participant may exercise his or her right to
receive cash or Common Stock, as applicable, under the terms of an
Award.

     

    “Incentive
Stock Option” means an Option that is intended to comply with the requirements
set forth in Section 422 of the Code.

     

    “Non-Qualified
Performance Award” means a Performance Award that is not intended qualify as
qualified performance-based compensation under Section 162(m) of the Code,
as described in Section 8(a)(vii)(A) of the Plan.

     

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

     

    “Option”
means a right to purchase a specified number of shares of Common Stock at a
specified Grant Price, which may be an Incentive Stock Option or a Non-Qualified
Stock Option.

     

    “Participant”
means an Employee or Director to whom an Award has been granted under this
Plan.

     

    “Performance
Award” means an Award made pursuant to this Plan that is subject to the
attainment of one or more performance goals.

     

    “Performance
Goal” means a standard established by the Committee to determine in whole or in
part whether a Qualified Performance Award shall be earned.

     

    “Performance
Share Unit” means a unit evidencing the right to receive in specified
circumstances one share of Common Stock.

     

    “Performance
Share Unit Award” means an Award of Performance Share Units that, upon
attainment of the performance goals, entitles the Participant to shares of
Common Stock.

     

    “Plan”
has the meaning set forth in Section 1.

     

    “Qualified
Performance Award” means a Performance Award made to a Participant who is an
Employee that is intended to qualify as qualified performance-based compensation
under Section 162(m) of the Code, as described in Section 8(a)(vii)(B)
of the Plan.

     

    “Restricted
Stock” means Common Stock that is restricted or subject to forfeiture
provisions.

     

    “Restricted
Stock Unit” means a unit evidencing the right to receive in specified
circumstances one share of Common Stock or equivalent value in cash that is
restricted or subject to forfeiture provisions.

     

    “Restricted
Stock Unit Award” means an Award in the form of Restricted Stock
Units.

     

    “Restriction
Period” means a period of time beginning as of the Grant Date of an Award of
Restricted Stock or Restricted Stock Units and ending as of the date upon which
the Common Stock subject to such Award is issued (if not previously issued), no
longer restricted or subject to forfeiture provisions.

     

    “Stock
Appreciation Right” or “SAR” means a right to receive a payment, in cash or
Common Stock, equal to the excess of the Fair Market Value or other specified
valuation of a specified number of shares of Common Stock on the date the right
is exercised over a specified Grant Price.

     

    “Stock
Award” means an Award in the form of, or denominated in, or by reference to,
shares of Common Stock, including an award of Restricted Stock.

     

    “Subsidiary”
means (i) with respect to any Awards other than Incentive Stock Options within
the meaning of Section 422 of the Code, any corporation, limited liability
company or similar entity of which the Company directly or indirectly owns
shares representing more than 50% of the voting power of all classes or series
of equity securities of such entity, which have the right to vote generally on
matters submitted to a vote of the holders of equity interests in such entity,
and (ii) with respect

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    to Awards
of Incentive Stock Options, any subsidiary within the meaning of Section 424(f)
of the Code or any successor provision.

     

    4.      Effective Date
and Duration

     

    a.      Effective
Date.  The Plan was approved and adopted by the Board on
October 10, 2008 and will be submitted to the Company’s stockholders on November
11, 2008.  If approved by the Company’s stockholders, the Plan shall
be effective on the date of stockholder approval (the “Effective
Date”).  If the stockholders of the Company should fail to so approve
this Plan at such meeting, this Plan shall terminate and cease to be of any
further force or effect, and all grants of Awards hereunder, if any, shall be
null and void.

     

    b.      Duration.  The
Plan will expire on the tenth anniversary of the Effective Date, and no Awards
may be granted on or after the tenth anniversary of the Effective Date; provided, however, that any Award
granted prior to such tenth anniversary shall remain outstanding in accordance
with its terms.

     

    5.      Administration

     

    a.      Authority
of the Committee.  This Plan shall be administered by the
Committee except as otherwise provided herein.  Subject to the
provisions hereof, the Committee shall have full and exclusive power and
authority to administer this Plan and to take all actions that are specifically
contemplated hereby or are necessary or appropriate in connection with the
administration hereof.  The Committee shall also have full and
exclusive power to interpret this Plan and to adopt such rules, regulations and
guidelines for carrying out this Plan as it may deem necessary or proper, all of
which powers shall be exercised in the best interests of the Company and in
keeping with the objectives of this Plan.  Subject to Section 5(d)
hereof, the Committee may, in its discretion, provide for the extension of the
exercisability of an Award, accelerate the vesting or exercisability of an
Award, eliminate or make less restrictive any restrictions contained in an
Award, waive any restriction or other provision of this Plan (insofar as such
provision relates to Awards) or an Award or otherwise amend or modify an Award
in any manner that is:  (i) not adverse to the Participant to whom
such Award was granted, (ii) consented to by such Participant or
(iii) authorized by Section 15(c) hereof; provided, however, that no
such action shall permit the term of any Option to be greater than 10 years from
the applicable Grant Date.  The Committee may correct any defect or
supply any omission or reconcile any inconsistency in this Plan or in any Award
in the manner and to the extent the Committee deems necessary or desirable to
further the Plan purposes.  Any decision of the Committee, with
respect to Awards, in the interpretation and administration of this Plan shall
lie within its sole and absolute discretion and shall be final, conclusive and
binding on all parties concerned.

     

    b.      Indemnification.  No
member of the Committee or officer of the Company to whom the Committee has
delegated authority in accordance with the provisions of Section 5(e) of this
Plan shall be liable for anything done or omitted to be done by him or her, by
any member of the Committee or by any officer of the Company in connection with
the performance of any duties under this Plan, except for his or her own willful
misconduct or as expressly provided by statute.

     

    c.      Authority
of the Board.  The Board shall have the same powers, duties,
and authority to administer the Plan as the Committee.

     

    d.      Prohibition
on Repricing of Awards.  No Option or SAR may be repriced,
replaced, regranted through cancellation or modified without stockholder
approval (except in connection with a change in the Company’s capitalization),
if the effect would be to reduce the Grant Price for the shares underlying such
Award.

     

    e.      Delegation
of Authority.  The Committee may delegate to the President and
to other senior officers of the Company its duties under this Plan pursuant to
such conditions or limitations as the Committee may establish with respect to
Awards, except that the Committee may not delegate to any person the authority
to grant Awards to, or take other action with respect to, Participants who are
subject to Section 16 of the Exchange Act.  The Committee may
engage or authorize the engagement of a third party administrator to carry out
administrative functions under the Plan.

     

    6.      Eligibility.  All Employees
and Directors are eligible for Awards under this Plan.  The Committee
shall select the Participants in the Plan from time to time by the grant of
Awards under the Plan.

     

    7.      Common
Stock Available for Awards.  Subject to the
provisions of Section 15 hereof, no Award shall be granted if it shall result in
the aggregate number of shares of Common Stock issued under the Plan plus the
number of shares of Common Stock covered by or subject to Awards then
outstanding (after giving effect to the grant of the Award in question) to
exceed 1,250,000 shares of Common Stock.  The number of shares of
Common Stock that are the subject of Awards under this Plan that are forfeited,
terminated or expire unexercised shall again immediately become available for
Awards hereunder.  Notwithstanding the foregoing, the number of shares
of Common Stock reserved for issuance shall be reduced by the total number of
Options or SARs exercised, and the number of shares of Common Stock reserved for
issuance under the Plan shall not be increased by (i) any shares tendered or
Award surrendered in connection with the purchase of shares of Common Stock upon
the exercise of an Option as described in Section 11 or (ii) any shares of
Common Stock deducted from an Award payment in connection with the Company’s tax
withholding obligations as described in Section 12.  The
Committee may from time to time adopt and observe such procedures concerning the
counting of shares against the Plan maximum as it may deem
appropriate.  The Board and the appropriate officers of the Company
shall from time to time take whatever actions are

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    necessary
to file any required documents with governmental authorities, stock exchanges
and transaction reporting systems to ensure that shares of Common Stock are
available for issuance pursuant to Awards.

     

    8.      Awards.

     

    a.      The
Committee shall determine the type or types of Awards to be made under this Plan
and shall designate from time to time the individuals who are to be the
recipients of such Awards.  Each Award shall be evidenced in such
communications as the Committee deems appropriate, including in an Award
Agreement, and shall contain such terms, conditions and limitations as shall be
determined by the Committee in its sole discretion.  Awards may
consist of those listed in this Section 8(a) and may be granted singly, in
combination or in tandem.  Awards may also be granted in combination
or in tandem with, in replacement of, or as alternatives to, grants or rights
under this Plan or any other plan of the Company or any of its Subsidiaries,
including the plan of any acquired entity; provided, however, that,
except as contemplated in Section 15 hereof, no Option may be issued in exchange
for the cancellation of an Option with a higher Grant Price nor may the Grant
Price of any Option be reduced.  All or part of an Award may be
subject to conditions established by the Committee.  Upon the
termination of employment or service by a Participant, any unexercised,
deferred, unvested or unpaid Awards shall be treated as set forth in the
applicable Award Agreement or in any other agreement with the
Participant.

     

    (i)      Option.  An Award
may be in the form of an Option.  An Option awarded to an Employee
pursuant to this Plan may consist of either an Incentive Stock Option or a
Non-Qualified Stock Option.  An Option awarded to a Director may
consist of a Non-Qualified Stock Option.  On the Grant Date, the Grant
Price of an Option shall be not less than the Fair Market Value of the Common
Stock subject to such Option.  The term of the Option shall extend no
more than 10 years after the Grant Date.  Options may not include
provisions that “reload” the option upon exercise.  Subject to the
foregoing provisions, the terms, conditions and limitations applicable to any
Options awarded to Employees pursuant to this Plan, including the Grant Price,
the term of the Options, the number of shares subject to the Option and the date
or dates upon which they become exercisable, shall be determined by the
Committee.

     

    (ii)           Stock Appreciation
Rights.  An Award may be in the form of an SAR.  On
the Grant Date, the Grant Price of an SAR shall be not less than the Fair Market
Value of the Common Stock subject to such SAR.  The holder of a tandem
SAR may elect to exercise either the option or the SAR, but not
both.  The exercise period for an SAR shall extend no more than 10
years after the Grant Date.  SARs may not include provisions that
“reload” the SAR upon exercise.  Subject to the foregoing provisions,
the terms, conditions and limitations applicable to any SARs awarded to a
Participant pursuant to this Plan, including the Grant Price, the term of any
SARs and the date or dates upon which they become exercisable, shall be
determined by the Committee.

     

    (iii)           Stock Award.  An
Award may be in the form of a Stock Award.  The terms, conditions and
limitations applicable to any Stock Award, including, but not limited to,
vesting or other restrictions, shall be determined by the
Committee.

     

    (iv)           Restricted Stock Unit
Awards.  An Award may be in the form of a Restricted Stock Unit
Award.  The terms, conditions and limitations applicable to a
Restricted Stock Unit Award, including, but not limited to, the Restriction
Period and the right to Dividend Equivalents, shall be determined by the
Committee.

     

    (v)      Performance Share Unit
Awards.  An Award may be in the form of a Performance Share
Unit Award.  The terms, conditions and limitations applicable to any
Performance Share Unit Award, including, but not limited to, vesting or other
restrictions, shall be determined by the Committee.  Performance Share
Unit Awards shall be in the form of a Non-Qualified Performance Award or a
Qualified Performance Award and shall have a minimum performance period of one
year from the date of grant.

     

    (vi)           Cash Award.  An
Award may be in the form of a Cash Award.  The terms, conditions and
limitations applicable to any Cash Awards granted to Participants pursuant to
this Plan, including, but not limited to, vesting or other restrictions, shall
be determined by the Committee.

     

    (vii)           Performance
Award.  Without limiting the type or number of Awards that may
be made under the other provisions of this Plan, an Award may be in the form of
a Performance Award.  The terms, conditions and limitations applicable
to an Award that is a Performance Award shall be determined by the
Committee.  The Committee shall set performance goals in its
discretion which, depending on the extent to which they are met, will determine
the value and/or amount of Performance Awards that will be paid out to the
Employee and/or the portion that may be exercised.

     

    (A)                 Non-Qualified Performance
Awards.  Performance Awards granted to Employees that are not
intended to qualify as qualified performance-based compensation under Section
162(m) of the Code shall be based on achievement of such goals and be subject to
such terms, conditions and restrictions as the Committee or its delegate shall
determine.

     

    (B)                 Qualified Performance
Awards.  Performance Awards granted to Employees under the Plan
that are intended to qualify as qualified performance-based compensation under
Section 162(m) of the Code shall be paid, vested or otherwise deliverable solely
on account of the attainment of one or more pre-established, objective
Performance

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    Goals
established by the Committee prior to the earlier to occur of (x) 90 days after
the commencement of the period of service to which the Performance Goal relates
or (y) the lapse of 25% of the period of service (as scheduled in good faith at
the time the goal is established), and in any event while the outcome is
substantially uncertain.  A Performance Goal is objective if a third
party having knowledge of the relevant facts could determine whether the goal is
met.  Such a Performance Goal may be based on one or more business
criteria that apply to the Employee, one or more business segments, units, or
divisions of the Company, or the Company as a whole, and if so desired by the
Committee, by comparison with a peer group of companies.  A
Performance Goal may include one or more of the following:

     

    
      	
               
      

            	
              ·

            	
              Cash
      flow measures (including but not limited to before or after tax cash flow,
      cash flow per share, cash flow return on capital, net cash flow or
      attainment of working capital
levels);

            

    

     

    
      	
               
      

            	
              ·

            	
              Expense
      measures (including but not limited to overhead cost, general and
      administrative expense and improvement in or attainment of expense
      levels);

            

    

     

    
      	
               
      

            	
              ·

            	
              Income
      measures (including but not limited to net income and income before or
      after taxes);

            

    

     

    
      	
               
      

            	
              ·

            	
              Operating
      measures (including operating income, funds from operations, cash from
      operations, after-tax operating income, net operating profit after tax,
      operating efficiency, production volumes and production
      efficiency);

            

    

     

    
      	
               
      

            	
              ·

            	
              Return
      measures (including but not limited to return on capital employed, return
      on equity, return on investment and return on
  assets);

            

    

     

    
      	
               
      

            	
              ·

            	
              Stock
      price measures (including but not limited to price per share, growth
      measures and total stockholder
return);

            

    

     

    
      	
               
      

            	
              ·

            	
              Earnings
      per share (actual or targeted
growth);

            

    

     

    
      	
               
      

            	
              ·

            	
              Earnings
      before interest, taxes, depreciation, and amortization
      (“EBITDA”);

            

    

     

    
      	
               
      

            	
              ·

            	
              Net
      earnings;

            

    

     

    
      	
               
      

            	
              ·

            	
              Market
      share;

            

    

     

    
      	
               
      

            	
              ·

            	
              Debt
      to equity ratio;

            

    

     

    
      	
               
      

            	
              ·

            	
              Debt
      reduction;

            

    

     

    
      	
               
      

            	
              ·

            	
              Economic
      value added (or an equivalent
metric);

            

    

     

    
      	
               
      

            	
              ·

            	
              Cash
      available for distribution;

            

    

     

    
      	
               
      

            	
              ·

            	
              Cash
      available for distribution per
share;

            

    

     

    
      	
               
      

            	
              ·

            	
              Operating
      income;

            

    

     

    
      	
               
      

            	
              ·

            	
              Margins;

            

    

     

    
      	
               
      

            	
              ·

            	
              Implementing
      or completion of critical projects;

            

    

     

    
      	
               
      

            	
              ·

            	
              Revenue
      or sales;

            

    

     

    
      	
               
      

            	
              ·

            	
              Total
      market value;

            

    

     

    
      	
               
      

            	
              ·

            	
              Reliability;

            

    

     

    
      	
               
      

            	
              ·

            	
              Productivity;
      and

            

    

     

    
      	
               
      

            	
              ·

            	
              Corporate
      values measures (including but not limited to diversity commitment, ethics
      compliance, environmental and
safety).

            

    

     

    Unless
otherwise stated, such a Performance Goal need not be based upon an increase or
positive result under a particular business criterion and could include, for
example, maintaining the status quo or limiting economic losses (measured, in
each case, by reference to specific business criteria).  In
interpreting Plan provisions applicable to Performance Goals and Qualified
Performance Awards, it is the intent of the Plan to conform with the standards
of Section 162(m) of the Code and Treasury Regulation Section 1.162-27(e)(2)(i),
as to grants to those Employees whose compensation is, or is likely to be,
subject to Section 162(m) of the Code, and the Committee in establishing such
goals and interpreting the Plan shall be guided by such
provisions.  Prior to the payment of any compensation based on the
achievement of Performance Goals, the Committee must certify in writing that
applicable Performance Goals and any of the material terms thereof were, in
fact, satisfied.  Subject to

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    the
foregoing provisions, the terms, conditions and limitations applicable to any
Qualified Performance Awards made pursuant to this Plan shall be determined by
the Committee.

     

    b.      Notwithstanding
anything to the contrary contained in this Plan, the following limitations shall
apply to any Awards made hereunder:

     

    (i)      no
Employee may be granted, during the term of the Plan, Awards consisting of,
relating to, or exercisable for more than 250,000 shares of Common Stock (the
limitation set forth in this clause (i) being hereinafter referred to as “Stock
Based Awards Limitations”) and

     

    (ii)           no
individual may be granted Cash Awards in respect of any one calendar year having
a value determined on the Grant Date in excess of $5,000,000.

     

    9.      Change
in Control.  Notwithstanding
the provisions of Section 8 hereof, unless otherwise expressly provided in the
applicable Award Agreement, or as otherwise specified in the terms of an Equity
Award, in the event of a Change in Control during a Participant’s employment
with the Company or one of its Subsidiaries, each Equity Award granted under
this Plan to the Participant shall become immediately vested and fully
exercisable, with Non-Qualified Performance Awards vesting at the target
level.

     

    10.           Payment
of Awards.

     

    a.      General.  Payment of Awards may be
made in the form of cash or Common Stock, or a combination thereof, and may
include such restrictions as the Committee shall determine, including, but not
limited to, in the case of Common Stock, restrictions on transfer and forfeiture
provisions.  For an Award of Restricted Stock, the certificates
evidencing the shares of such Restricted Stock (to the extent that such shares
are so evidenced) shall contain appropriate legends and restrictions that
describe the terms and conditions of the restrictions applicable
thereto.  For an Award of Restricted Stock Units or Performance Share
Units, the shares of Common Stock that may be issued at the end of the
Restriction Period shall be evidenced by book entry registration or in such
other manner as the Committee may determine.

     

    b.      Deferral.  With the
approval of the Committee, amounts payable in respect of Awards may be deferred
and paid either in the form of installments or as a lump-sum payment; provided, however, that if
deferral is permitted, such deferral shall be in compliance with the
requirements of Section 409A of the Code.  The Committee may permit
selected Participants to elect to defer payments of some or all types of Awards
in accordance with procedures established by the Committee.  Any
deferred payment pursuant to an Award, whether elected by the Participant or
specified by the Award Agreement or the terms of the Award or by the Committee,
may be forfeited if and to the extent that the Award Agreement or the terms of
the Award so provide.

     

    c.      Dividends and
Interest.  Rights to (i) dividends will be extended to and made
part of any Stock Award and (ii) Dividend Equivalents may be extended to and
made part of any Restricted Stock Unit, subject in each case to such terms,
conditions and restrictions as the Committee may establish.  The
Committee may also
establish rules and procedures for the crediting of interest on deferred cash
payments for Awards.

     

    11.           Option
Exercise.  The Grant Price
shall be paid in full at the time of exercise in cash or, if elected by the
Participant, the Participant may purchase such shares by means of tendering
Common Stock or surrendering another Award, including Restricted Stock, valued
at Fair Market Value on the date of exercise, or any combination
thereof.  The Committee shall determine acceptable methods for
Participants to tender Common Stock or other Awards.  The Committee
may provide for procedures to permit the exercise or purchase of such Awards by
use of the proceeds to be received from the sale of Common Stock issuable
pursuant to an Award (including “cashless exercise”).  Unless
otherwise provided in the applicable Award Agreement, in the event shares of
Restricted Stock are tendered as consideration for the exercise of an Option, a
number of the shares issued upon the exercise of the Option, equal to the number
of shares of Restricted Stock used as consideration thereof, shall be subject to
the same restrictions as the Restricted Stock so submitted as well as any
additional restrictions that may be imposed by the Committee.  The
Committee may adopt additional rules and procedures regarding the exercise of
Options from time to time, provided that such rules and procedures are not
inconsistent with the provisions of this Section.

     

    12.           Taxes.  The Company or
its designated third party administrator shall have the right to deduct
applicable taxes from any Award payment and withhold, at the time of delivery or
vesting of cash or shares of Common Stock under this Plan, an appropriate amount
of cash or number of shares of Common Stock or a combination thereof for payment
of taxes or other amounts required by law or to take such other action as may be
necessary in the opinion of the Company to satisfy all obligations for
withholding of such taxes or other amounts.  The Committee may also
permit withholding to be satisfied by the transfer to the Company of shares of
Common Stock theretofore owned by the holder of the Award with respect to which
withholding is required.  If shares of Common Stock are used to
satisfy tax withholding, such shares shall be valued based on the Fair Market
Value when the tax withholding is required to be made.

     

    13.           Amendment,
Modification, Suspension or Termination of the Plan.  The Board may
amend, modify, suspend or terminate this Plan for the purpose of meeting or
addressing any changes in legal requirements or for any other purpose permitted
by law, except that (i) no amendment or alteration that would adversely affect
the rights of any Participant under any Award previously granted to such
Participant shall be made without the consent of such Participant and
(ii) no amendment or alteration shall be effective prior to its approval by
the stockholders of the Company to the extent such

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    approval
is required by applicable legal requirements or the requirements of the
securities exchange on which the Common Stock is listed.

     

    14.           Assignability.  Except as
otherwise provided herein, no Award granted under this Plan shall be sold,
transferred, pledged, assigned or otherwise alienated or hypothecated by a
Participant other than by will or the laws of descent and distribution, and
during the lifetime of a Participant, any Award shall be exercisable only by the
Participant, or, in the case of a Participant who is mentally incapacitated, the
Award shall be exercisable by the Participant’s guardian or legal
representative.  The Committee may prescribe and include in applicable
Award Agreements other restrictions on transfer.  Any attempted
assignment or transfer in violation of this Section 14 shall be null and
void.  Upon the Participant’s death, the personal representative or
other person entitled to succeed to the rights of the Participant (the
“Successor Participant”) may exercise such rights.  A Successor
Participant must furnish proof satisfactory to the Company of his or her right
to exercise the Award under the Participant’s will or under the applicable laws
of descent and distribution.

     

    Notwithstanding
any provision of the Plan to the contrary, the Committee may permit transfers of
Non-Qualified Stock Options, SARs, Stock Award, Restricted Stock Unit Award or
Cash Award to Family Members (including, without limitation, transfers affected
by a domestic relations order) subject to such terms and conditions as the
Committee shall determine.  “Family Members” means as to a
Participant, any (i) child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, mother-in-law, father-in-law, son-in-law or daughter-in-law
(including adoptive relationships), (ii) trusts for the exclusive benefit of one
or more such persons and/or the Participant and (iii) other entity owned solely
by one or more such persons and/or the Participant.

     

    15.           Adjustments.

     

    a.      The
existence of outstanding Awards shall not affect in any manner the right or
power of the Company or its stockholders to make or authorize any or all
adjustments, recapitalizations, reorganizations or other changes in the capital
stock of the Company or its business or any merger or consolidation of the
Company, or any issue of bonds, debentures, preferred or prior preference stock
(whether or not such issue is prior to, on a parity with or junior to the
existing Common Stock) or the dissolution or liquidation of the Company, or any
sale or transfer of all or any part of its assets or business, or any other
corporate act or proceeding of any kind, whether or not of a character similar
to that of the acts or proceedings enumerated above.

     

    b.      In
the event of any subdivision or consolidation of outstanding shares of Common
Stock, declaration of a dividend payable in shares of Common Stock or other
stock split, then:  (i) the number of shares of Common Stock reserved
under this Plan, (ii) the number of shares of Common Stock covered by
outstanding Awards in the form of Common Stock or units denominated in Common
Stock, (iii) the Grant Price or other price in respect of such Awards, (iv) the
appropriate Fair Market Value and other price determinations for such Awards,
and (v) the Stock Based Awards Limitations shall each be proportionately
adjusted by the Board as appropriate to reflect such transaction.  In
the event of any other recapitalization or capital reorganization of the
Company, any consolidation or merger of the Company with another corporation or
entity, the adoption by the Company of any plan of exchange affecting Common
Stock or any distribution to holders of Common Stock of securities or property
(other than normal cash dividends or dividends payable in Common Stock), the
Board shall make appropriate adjustments to (i) the number of shares of Common
Stock covered by Awards in the form of Common Stock or units denominated in
Common Stock, (ii) the Grant Price or other price in respect of such Awards,
(iii) the appropriate Fair Market Value and other price determinations for such
Awards, and (iv) the Stock Based Awards Limitations to reflect such
transaction; provided that such adjustments shall only be such as are necessary
to maintain the proportionate interest of the holders of the Awards and
preserve, without increasing, the value of such Awards.

     

    c.      In
the event of a corporate merger, consolidation, acquisition of property or
stock, separation, reorganization or liquidation, the Board may make such
adjustments to Awards or other provisions for the disposition of Awards as it
deems equitable, and shall be authorized, in its discretion: (1) to provide for
the substitution of a new Award or other arrangement (which, if applicable, may
be exercisable for such property or stock as the Board determines) for an Award
or the assumption of the Award, regardless of whether in a transaction to which
Section 424(a) of the Code applies, (2) to provide, prior to the
transaction, for the acceleration of the vesting and exercisability of, or lapse
of restrictions with respect to, the Award and, if the transaction is a cash
merger, provide for the termination of any portion of the Award that remains
unexercised at the time of such transaction, or (3) to cancel any such
Awards and to deliver to the Participants cash in an amount that the Board shall
determine in its sole discretion is equal to the fair market value of such
Awards on the date of such event, which in the case of Options or SARs shall be
the excess of the Fair Market Value of Common Stock on such date over the Grant
Price of such Award.

     

    d.      No
adjustment or substitution pursuant to this Section 15 shall be made in a manner
that results in noncompliance with the requirements of Section 409A of the Code,
to the extent applicable.

     

    16.           Restrictions.  No Common Stock
or other form of payment shall be issued with respect to any Award unless the
Company shall be satisfied based on the advice of its counsel that such issuance
will be in compliance with applicable federal and state securities
laws.  Certificates evidencing shares of Common Stock delivered under
this Plan (to the extent that such shares are so evidenced) may be subject to
such stop transfer orders and other restrictions as the Committee may deem
advisable under the rules, regulations and other requirements of the Securities
and Exchange Commission, any securities exchange or transaction reporting system
upon which the Common Stock is then listed or to which it is admitted for
quotation

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    and any
applicable federal or state securities law.  The Committee may cause a
legend or legends to be placed upon such certificates (if any) to make
appropriate reference to such restrictions.

     

    17.           Unfunded
Plan.  Insofar as it
provides for Awards of cash, Common Stock or rights thereto, this Plan shall be
unfunded.  Although bookkeeping accounts may be established with
respect to Participants who are entitled to cash, Common Stock or rights thereto
under this Plan, any such accounts shall be used merely as a bookkeeping
convenience.  The Company shall not be required to segregate any
assets that may at any time be represented by cash, Common Stock or rights
thereto, nor shall this Plan be construed as providing for such segregation, nor
shall the Company, the Board or the Committee be deemed to be a trustee of any
cash, Common Stock or rights thereto to be granted under this
Plan.  Any liability or obligation of the Company to any Participant
with respect to an Award of cash, Common Stock or rights thereto under this Plan
shall be based solely upon any contractual obligations that may be created by
this Plan and any Award Agreement, and no such liability or obligation of the
Company shall be deemed to be secured by any pledge or other encumbrance on any
property of the Company.  Neither the Company nor the Board nor the
Committee shall be required to give any security or bond for the performance of
any obligation that may be created by this Plan.

     

    18.           Section
409A of the Code.  It is intended that any Awards under the
Plan satisfy the requirements of Section 409A of the Code, and any ambiguous
provision will be construed in a manner that is compliant with or exempt from
the application of Section 409A of the Code.

     

    19.           Parachute
Payment Limitation.  Notwithstanding any contrary provision of
the Plan, the Committee may provide in the Award Agreement or in any other
agreement with the Participant for a limitation on the acceleration of vesting
and exercisability of unmatured Awards to the extent necessary to avoid or
mitigate the impact of the golden parachute excise tax under Section 4999 of the
Code on the Participant or may provide for a supplemental payment to be made to
the Participant as necessary to offset or mitigate the impact of the golden
parachute excise tax on the Participant.  In the event the Award
Agreement or other agreement with the Participant does not contain any contrary
provision regarding the method of avoiding or mitigating the impact of the
golden parachute excise tax under Section 4999 of the Code on the Participant,
then notwithstanding any contrary provision of this Plan, the aggregate present
value of all parachute payments payable to or for the benefit of a Participant,
whether payable pursuant to this Plan or otherwise, shall be limited to three
times the Participant’s base amount less one dollar and, to the extent
necessary, the exercisability of an unmatured Award shall be reduced in order
that this limitation not be exceeded, with the order of reduction applied first
against the Award with the latest vesting date and continuing, as necessary, to
those Awards with earlier vesting dates.  For purposes of this Section
19, the terms “parachute payment,” “base amount” and “present value” shall
have the meanings assigned thereto under Section 280G of the Code.  It
is the intention of this Section 19 to avoid excise taxes on the Participant
under Section 4999 of the Code or the disallowance of a deduction to the Company
pursuant to Section 280G of the Code.

     

    20.           Right
to Employment.  Nothing in the
Plan or an Award Agreement shall interfere with or limit in any way the right of
the Company to terminate any Participant’s employment or other service
relationship at any time, nor confer upon any Participant any right to continue
in the capacity in which he or she is employed or otherwise serves the
Company.

     

    21.           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 and/or assets of the
Company.

     

    22.           Governing
Law.  This Plan and
all determinations made and actions taken pursuant hereto, to the extent not
otherwise governed by mandatory provisions of the Code or the securities laws of
the United States, shall be governed by and construed in accordance with the
laws of the State of Texas.

     

     

    
      
         

      

      
        8

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