Document:

Exhibit
10.2
  February 1, 2007
  Private and Confidential
  Mr. Nic Austin
  c/o Accelrys, Inc.
  Dear Nic:
  Variations
to Employment Agreement
  I am happy to
confirm that, as requested, your employment with Accelrys, Inc. (the “Company”)
has relocated to our Cambridge office in the U.K., with effect from January 1,
2007.  Your employment has also transferred
to the Company’s U.K. subsidiary, Accelrys, Limited.  The purpose of this letter agreement is to
record the necessary amendments to be made to your Employment Agreement,
executed on or about October 26, 2006 (the “Agreement”).  The following changes will take effect from
the date on which you sign this letter agreement.
  English law will
prevail if there is any inconsistency between the terms of the Agreement, or
this letter agreement, and English law. 
Participation in U.S. statutory schemes (including COBRA) will cease
with effect from the date of your relocation.
  	  1.
  	   
  	  Your U.K. rate of remuneration will be £120,000 per
  annum, Payable monthly by the 24th of each month for the current calendar month
  by direct credit transfer to your Bank Account. Cash compensation due to you
  under the Agreement will be subject to the appropriate statutory deductions.
  We recommend that you seek independent advice as to your tax obligations.
  
	   
  	   
  	   
  
	  2.
  	   
  	  You are required to be familiar with and comply with
  all policies and procedures of the Company. Such policies and procedures are
  referred to for guidance only and do not form part of the Agreement.
  
	   
  	   
  	   
  
	  3.
  	   
  	  You may terminate your employment with the Company
  by giving the Company four weeks’ notice in writing. The Company may
  terminate your employment at any time during or after the Term by giving you
  U.K. statutory minimum notice in writing (and your employment with Accelrys,
  Inc. will count towards your continuous period of employment for that
  purpose). Your period of continuous employment for the purposes of your
  statutory employment rights is effective from your original date of hire,
  April 12, 1990. The Company reserves the right to require you to refrain from
  working during the whole or any part of your notice period (whether you or
  the Company gave notice) but to remain available to attend the workplace or
  answer queries if required (“garden leave”). Should the Company require you
  to take garden leave you are entitled during the garden leave to any pay and
  any other contractual benefits then enjoyed. During the garden leave period
  you are not permitted to work for any other person, firm company or organization
  or to carry out work on your own account without the Company’s prior written
  permission. Nor are you permitted to contact any customer, employee or
  supplier of the Company. The implied duty of good faith and fidelity will
  continue during any period of garden leave.
  
	   
  	   
  	   
  
	  4.
  	   
  	  You agree that any severance or termination
  payments, awards or compensation to which you are entitled under English law,
  as well as payments made to you during the notice period will be included
  within the amount of any contractual severance payments made to you under
  Section 4(b) of the Agreement. As indicated in Section 4(b), the
  payment of such severance benefits is also contingent upon your continued
  compliance with the non-competition provisions set forth in section 7 of the
  Agreement, which provisions apply in favor of Accelrys, UK Limited and its
  affiliates, and you agree to refund any amounts in excess of any amount to
  which you are entitled to under English law in the event you do not comply
  with the terms of Section 4(b) and Section 7 of the Agreement.
  
	   
  	   
  	   
  
	  5.
  	   
  	  You agree that the limit specified in Regulation 4
  (t) of the Working Time Directive 1998 shall not apply in your case and that
  you may only withdraw from this agreement to opt out of the 48 hour average
  limit, you must give the Company not less than three months’ advance notice
  in writing.
  
	   
  	   
  	   
  
	  6.
  	   
  	  Other than after the occurrence of a Change of
  Control, as defined and set forth in the Agreement, the Company can require
  you to return to the U.S. on 90 days’ written notice. This letter agreement
  will lapse and cease to have any
  

   
   

 1
 

     
  	  
  	   
  	  legal effect upon your return to the U.S., and you
  will not be entitled to any benefits under Section 4 of the Employment
  Agreement if you refuse to return to the U.S.
  
	   
  	   
  	   
  
	  7.
  	   
  	  The Agreement and this letter agreement shall be
  governed by English law and the Company and you agree to submit any dispute
  as to their terms or effect to the exclusive jurisdiction of the English
  courts.
  

   
  Further
Particulars
  English law requires
the Company to provide you with various “particulars of employment”, as
follows:
  Absence
due to Sickness or Injury
  In addition to the
Statutory Sick Pay Scheme for which the qualifying days will be Monday to
Friday, the Company operates a discretionary Sick Pay Scheme for employees,
details of which are as follows:
  0 to
45 days of illness or injury          100%
of basic pay per annum
  46
to 90 days of illness or injury        75%
of basic pay per annum
  The Company sick
year runs from 1st January to 31 December each year and all
payments are inclusive of any Statutory sick Pay entitlement and less any State
Sickness Benefit received.
  Insurances
  The Company
operates a Permanent Health Insurance plan for all UK based employees.  After 90 days of sickness absence you will be
assessed for eligibility under the Scheme. 
Any payments due will be made at 75% of basic annual salary less any
State Benefits paid.
  The Company offers
all UK based employees health insurance cover subject to insurer acceptance on
a moratorium basis.  Eligible dependents
may also be included subject to insurer acceptance on a moratorium basis
  Life insurance is
provided for all UK based employees at four times basic annual salary.
  Pension
Scheme
  The Company offers
all UK based employees access to a Group Personal Pension scheme.  The Company will contribute the equivalent of
10% of your gross basic annual salary subject to a requirement for you to
contribute a minimum of the equivalent of 5% of gross basic annual salary.
  Annual
Holiday
  You will be
entitled to 25 days annual holiday per annum. 
The holiday year runs from 1st January to 31 December.  The Working Time Directive stipulates that at
least four weeks of annual holiday must be taken during the leave year and it
cannot be replaced by payment in lieu of holiday except when employment ceases.
  In addition you
will receive paid holiday in respect of the eight Public Holidays that the
Company recognizes for UK employees.
  Payment for all
holiday is calculated at the basic rate of pay. 
Should you leave the Company for whatever reason and holidays taken
exceed entitlements then you agree that the Company has the right to deduct
payments made in excess from any monies owning to you at the time of leaving.
  Data
Protection
  You are required
to comply with the provision of the Data Protection Act 1998 and any subsequent
modifying legislation.  By signing this
letter you agree that the Company is permitted to hold personal information
about you as part of its personnel and other business records and may use such
information in the course of the Company’s business.  You agree that the Company may disclose such
information to third parties, in the event that in the Company’s view, it is
required for the proper conduct of the Company’s business.  This clause applied to information held, used
or disclosed in any medium.  Subject to
the Data Protection Acty 1998, by singing this letter, you consent to your data
being held and processed, both during and after employment for purposes
connected with your employment, recruitment and retention.  Furthermore, you consent to your data being
transferred to other Company offices across international borders.
  Discipline
and Grievance
  The Company’s
disciplinary and grievance procedures will conform with relevant U.K. guidance
and such written policies as the Company may operate at the relevant time.

 2
 

    Collective
Agreement
  There is no
collective agreement which directly affects your employment.
  All other terms
and conditions of your employment stated in the Agreement remain unaltered.
  In this letter
agreement, the “Company” includes Accelrys, Limited. For the avoidance of doubt
all references to a “Change of Control” and the consequences thereof shall
continue to apply solely to a Change of Control of Accelrys, Inc. as set forth
in the Agreement. Words and expressions defined in the Agreement shall have the
same meanings when used herein unless the context requires otherwise.
  Please sign, date
and return to me the enclosed duplicate copy of this letter agreement to
confirm your acceptance of its terms.
  Yours sincerely,
  	  /s/ Mark J. Emkjer
  	   
  
	  Mark Emkjer,
  President and Chief Executive Officer
  
	  for and on
  behalf of Accelrys, Inc.
  

   
  In consideration
of the Company’s agreement to my request to relocate to the U.K., I agree to
the above changes to the Agreement.
  Signed:
  	  /s/ Nic Austin
  	   
  
	  Nic Austin
  

   
  Date: February 1, 2007
  

   

 3Exhibit
4.3

 

Safety Insurance Group, Inc.

2002 Management Omnibus Incentive Plan, as
Amended

ARTICLE 1

Establishment, Objectives, and Duration

1.1                               Establishment of the Plan. 
Safety Insurance Group, Inc., a corporation organized and existing under
Delaware law (hereinafter referred to as the “Company”), hereby establishes an
incentive compensation plan to be known as the “Safety Insurance Group, Inc.
2002 Management Omnibus Incentive Plan, as amended” (hereinafter referred to as
the “Plan”), as set forth in this document. 
The Plan permits the grant of Nonqualified Stock Options, Incentive
Stock Options, Stock Appreciation Rights, and Restricted Stock.

The Plan first became
effective when approved by the Board on June 25, 2002.  The Plan, as amended, will become effective
on May 19, 2006 if it is approved by the stockholders at the 2006 annual
meeting.  The Plan shall remain in effect
as provided in Section 1.3 hereof.

1.2                               Objectives of the Plan.  The
objectives of the Plan are to optimize the profitability and growth of the
Company through incentives which are consistent with the Company’s goals and
which link the personal interests of Participants to those of the Company’s
shareholders; to provide Participants with an incentive for excellence in
individual performance; and to promote teamwork among Participants.

The Plan is further
intended to provide flexibility to the Company in its ability to motivate,
attract, and retain the services of Participants who make significant
contributions to the Company’s success and to allow Participants to share in
the success of the Company.

1.3                               Duration of the Plan.  The
Plan shall remain in effect, subject to the right of the Board to amend or
terminate the Plan at any time pursuant to Article 15 hereof, until all Shares
subject to it shall have been purchased or acquired according to the Plan’s
provisions.

ARTICLE 2

Definitions

Whenever used in the
Plan, the following terms shall have the meanings set forth below, and, when
the meaning is intended, the initial letter of the word shall be capitalized:

2.1                               “Affiliate” means any person or entity which, at the
time of reference, directly, or indirectly through one or more intermediaries,
controls or is controlled by the Company.

2.2                               “Award” means, individually or collectively, a grant
under this Plan of Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights, or Restricted Stock.

2.3                               “Award Agreement” means an agreement entered into by the
Company and each Participant setting forth the terms and provisions applicable
to Awards granted under the Plan.

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

2.5                               “Cause” means (i) the willful engaging by the
Participant in misconduct that is demonstrably injurious to the Company
(monetarily or otherwise), as determined by the Board in its sole discretion,
(ii) the Participant’s conviction of, or pleading guilty or nolo contendere to,
a felony involving moral turpitude, (iii) the

 
 

Participant’s violation of any confidentiality, non-solicitation, or
non-competition covenant to which the Participant is subject, or (iv) the
Participant’s poor performance, as determined by the Board, based on reasonable
business objectives, after written notice from the Company and a reasonable
opportunity to correct such poor performance.

2.6                               “Change in Control” will be deemed to have occurred as of the
first day any of the following events occurs:

(a)                                  the closing of any merger, combination,
consolidation or similar business transaction involving the Company in which
the holders of Shares immediately prior to such closing are not the holders,
directly or indirectly, of a majority of the ordinary voting securities of the
surviving Person in such transaction immediately after such closing;

(b)                                 the closing of any sale or transfer by the Company
of all or substantially all of its assets to an acquiring Person in which the
holders of Shares immediately prior to such closing are not the holders of a
majority of the ordinary voting securities of the acquiring Person immediately
after such closing; or

(c)                                  the closing of any sale by the holders of
Shares of an amount of Shares that equals or exceeds a majority of the Shares
immediately prior to such closing to a Person in which the holders of the
Shares immediately prior to such closing are not the holders of a majority of
the ordinary voting securities of such Person immediately after such closing.

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

2.8                               “Committee” means the Compensation Committee of the
Board, as specified in Article 3 herein, or such other Committee appointed by
the Board to administer the Plan with respect to grants of Awards.

2.9                               “Company” means Safety Insurance Group, Inc., a
corporation organized and existing under Delaware law, and any successor
thereto as provided in Article 19 herein.

2.10                        “Consultant” means an independent contractor who is
performing consulting services for one or more entities in the Group and who is
not an employee of any entity in the Group.

2.11                        “Director” means a member of the Board or a member of
the board of directors of an Affiliate.

2.12                        “Disability” shall have the meaning ascribed to such term
in the long-term disability plan maintained by the Company, or if no such plan
exists, at the discretion of the Committee.

2.13                        “Employee” means any employee of the Group, including
any employees who are also Directors. 
Nonemployee Directors and Consultants shall not be considered Employees
under this Plan.

2.14                        “Exchange Act” means the Securities Exchange Act of 1934,
as amended from time to time, or any successor act thereto.

2.15                        “Exercise Price” means the price at which a Share may be
purchased by a Participant pursuant to an Option.

2.16                        “Fair Market Value” shall be determined in good faith by the
Committee.

2.17                        “Freestanding SAR” means an SAR that is granted independently
of any Options, as described in Article 7 herein.

2.18                        “Good Reason” means, with respect to an Employee, (a) a
material reduction in an Employee’s authority, perquisites, position or
responsibilities (other than such a reduction in perquisites which affects all
of the Company’s senior executives on a substantially equal or proportionate
basis), (b) the relocation of the Employee’s

 2
 

primary place of business or the relocation of the
Employee to another Company (or Affiliate) office more than 75 miles from the
location of the Employee’s principal office, or, if applicable, (c) the
Employee’s employer’s willful, material violation of its obligations under his
or her employment agreement, in each case, after 60 days prior written notice
to the Employee’s employer and its board of directors and the Employee’s
employer’s failure thereafter to cure such reduction or violation.

2.19                        “Group” means the Company and the Affiliates.

2.20                        “Incentive Stock Option” or “ISO” means an
option to purchase Shares granted under Article 6 herein and which is
designated as an Incentive Stock Option intended to meet the requirements of
Code Section 422.

2.21                        “Named Executive Officer” means a Participant who, as of the date of
vesting and/or payout of an Award, as applicable, is one of the group of “covered
employees,” as defined in the regulations promulgated under Code Section
162(m), or any successor statute.

2.22                        “Nonemployee Director” shall have the meaning ascribed to such term
in Rule 16b-3 of the Exchange Act.

2.23                        “Nonqualified Stock Option” or “NQSO” means an
option to purchase Shares granted under Article 6 herein and which is not
intended to meet the requirements of Code Section 422.

2.24                        “Option” means an Incentive Stock Option or a
Nonqualified Stock Option, as described in Article 6 herein.

2.25                        “Outside Director” shall have the meaning ascribed to such term
under the regulations promulgated with respect to Code Section 162(m).

2.26                        “Participant” means a current or former Employee,
Director, or Consultant who has outstanding an Award granted under the Plan.

2.27                        “Performance-Based Exception” means the performance-based exception from
the tax deductibility limitations of Code Section 162(m).

2.28                        “Period of Restriction” means the period during which the transfer
of Shares of Restricted Stock is limited in some way (based on the passage of
time, the achievement of performance goals, or upon the occurrence of other
events as determined by the Committee, at its discretion), and the Shares are
subject to a substantial risk of forfeiture, as provided in Article 8 herein.

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

2.30                        “Restricted Stock” means an Award granted to a Participant
pursuant to Article 8 herein.

2.31                        “Shares” means the shares of common stock of the
Company, par value $0.01 per share, subject to adjustment pursuant to Section
4.2 herein.

2.32                        “Stock Appreciation Right” or “SAR” means an
Award, granted alone or in connection with a related Option, designated as an
SAR, pursuant to the terms of Article 7 herein.

2.33                        “Tandem SAR” means an SAR that is granted in connection
with a related Option pursuant to Article 7 herein.

 3
 

2.34                        “Termination of Service” means, if an Employee, termination of
employment with all entities in the Group, if a Director, termination of
service on the Board and the board of directors of any Affiliate, as
applicable, and if a Consultant, termination of the consulting relationship
with all entities in the Group.

ARTICLE 3

Administration

3.1                               The Committee.  The
Plan shall be administered by the Committee. 
To the extent the Company deems it to be necessary or desirable with
respect to any Awards made hereunder, the members of the Committee may be
limited to Nonemployee Directors or Outside Directors, who shall be appointed
from time to time by, and shall serve at the discretion of, the Board.

3.2                               Authority of the Committee. 
Except as limited by law or by the Articles of Incorporation or the
By-laws of the Company, and subject to the provisions herein, the Committee
shall have full power to select the persons who shall participate in the Plan;
determine the sizes and types of Awards; determine the terms and conditions of
Awards in a manner consistent with the Plan; construe and interpret the Plan
and any agreement or instrument entered into under the Plan as they apply to
Participants; establish, amend, or waive rules and regulations for the Plan’s
administration as they apply to Participants; and (subject to the provisions of
Article 15 herein) amend the terms and conditions of any outstanding Award to
the extent such terms and conditions are within the discretion of the Committee
as provided in the Plan.  Further, the
Committee shall make all other determinations which may be necessary or
advisable for the administration of the Plan, as the Plan applies to Participants.  As permitted by law, the Committee may
delegate its authority as identified herein.

3.3                               Decisions Binding.  All
determinations and decisions made by the Committee pursuant to the provisions
of the Plan and all related orders and resolutions of the Board shall be final,
conclusive and binding on all persons, including the Company, its shareholders,
Affiliates, Participants, and their estates and beneficiaries.

ARTICLE 4

Shares Subject to the Plan and Maximum Awards

4.1                               Number of Shares Available for
Grants.

(a)                                  Subject to Section 4.2 herein, the maximum
number of Shares that may be issued pursuant to Awards under the Plan shall be
2,500,000.  Shares underlying lapsed or
forfeited Awards of Restricted Stock shall not be treated as having been issued
pursuant to an Award under the Plan.  Shares
withheld from an Award of Restricted Stock to satisfy tax withholding
obligations shall be counted as Shares issued pursuant to an Award under the
Plan.  Shares that are potentially
deliverable under an Award that expires or is canceled, forfeited, settled in
cash or otherwise settled without the delivery of Shares shall not be treated
as having been issued under the Plan. 
Shares that are withheld to satisfy the Exercise Price of an Option or
tax withholding obligations related to an Option or SAR shall not be deemed to
be Shares issued under the Plan.

(b)                                 Unless the Committee determines that Code
Section 162(m) will not apply to an Award, or that an Award should not be
designed to comply with the Performance-Based Exception, the following
limitations shall apply to grants of Awards under the Plan:

(1)                                  Options:  The maximum aggregate number of Shares with
respect to which Options may be granted in any one calendar year to any one
Participant shall be 1,250,000;

(2)                                  SARs:  The
maximum aggregate number of Shares with respect to which Stock Appreciation
Rights may be granted in any one calendar year to any one Participant shall be
1,250,000; and

(3)                                  Restricted Stock:  The
maximum aggregate number of Shares of Restricted Stock that may be granted in
any one calendar year to any one Participant shall be 1,250,000.

 4
 

4.2                               Adjustments in Authorized Shares.  In
the event of any change in corporate capitalization, such as a stock split or a
stock dividend, or a corporate transaction, such as any merger, consolidation,
separation, including a spin-off, or other distribution of stock or property of
the Company, any reorganization (whether or not such reorganization comes
within the definition of such term in Code Section 368) or any partial or
complete liquidation of the Company, an adjustment shall be made to the number
and kind of Shares which may be delivered pursuant to Section 4.1, to the
number, kind and/or price of Shares subject to outstanding Awards granted under
the Plan, and to the individual Award limitations set forth in subsections
4.1(b)(1) through 4.1(b)(3), as may be determined to be appropriate and
equitable by the Committee, in its sole discretion, to prevent dilution or
enlargement of rights; provided, however, that the number of Shares subject to
any Award shall always be rounded to the nearest whole number, with one-half
(1⁄2) of a Share rounded up to the next whole number.

ARTICLE 5

Eligibility and Participation

5.1                               Eligibility. 
Persons eligible to participate in this Plan include all Employees,
Directors and Consultants of the Group, as determined by the Committee.

5.2                               Actual Participation. 
Subject to the provisions of the Plan, the Committee may, from time to
time, select from all eligible Employees, Directors and Consultants those to
whom Awards shall be granted and shall determine the nature and amount of each
Award.

ARTICLE 6

Options

6.1                               Grant of Options. 
Subject to the terms and provisions of the Plan, Options may be granted
to Participants in such number (subject to Article 4 herein), and upon such
terms, and at any time and from time to time as shall be determined by the
Committee; provided, however, that ISOs may be granted only to Employees.

6.2                               Award Agreement.  Each
Option grant shall be evidenced by an Award Agreement that shall specify the
Exercise Price, the duration of the Option, the number of Shares to which the
Option pertains, and such other provisions as the Committee shall
determine.  The Award Agreement also
shall specify whether the Option is intended to be an ISO or an NQSO.

6.3                               Exercise Price.  The
Exercise Price for each grant of an Option under this Plan shall be at least
equal to one hundred percent (100%) of the Fair Market Value of a Share on the
date the Option is granted.  However, in
the case of an ISO granted to a Participant who, at the time the Option is
granted, owns stock representing more than ten percent (10%) of the voting
power of all classes of stock of the Company or any subsidiary, the Exercise
Price for each grant of an Option shall be not less than one hundred ten
percent (110%) of the Fair Market Value of a Share on the date the Option is
granted.  The Exercise Price will be
subject to adjustment in accordance with the provisions of Section 4.2 of the
Plan.

6.4                               Duration of Options.  Each
Option granted to a Participant shall expire at such time as the Committee
shall determine at the time of grant; provided, however, that no Option shall
be exercisable later than the tenth (10th) anniversary date of its grant.  However, in the case of an ISO granted to a
Participant who, at the time the Option is granted, owns stock representing
more than ten percent (10%) of the voting power of all classes of stock of the
Company or any subsidiary, such Option shall not be exercisable after the
expiration of five (5) years from the date such Option is granted or such
shorter term as the Committee may determine.

6.5                               Exercise of Options. 
Options granted under this Article 6 shall be exercisable at such times
and be subject to such restrictions and conditions as set forth in the Award
Agreement and as the Committee shall in each instance approve, which need not
be the same for each grant or for each Participant.

 5
 

6.6                               Payment.

(a)                                  Options granted under this Article 6 shall be
exercised by the delivery of a written notice of exercise to the Company,
setting forth the number of Shares with respect to which the Option is to be
exercised, accompanied by full payment for the Shares.

(b)                                 The Exercise Price of any Option shall be
payable to the Company in full (i) in cash or its equivalent, (ii) if permitted
by the Committee, by tendering previously acquired Shares having an aggregate
Fair Market Value at the time of exercise equal to the total Exercise Price
(provided that the Shares, other than Shares purchased by the Participant on the
open market, must have been held by the Participant for at least six (6) months
prior to their tender), or (iii) by a combination of (i) and (ii).

(c)                                  If the Company’s shares are publicly traded,
an Option may be exercised by means of a cashless exercise with the assistance
of a broker or by any other means permitted by the Committee in accordance with
such terms and conditions as the Committee, in its sole discretion, shall
determine to be consistent with the Plan’s purpose and applicable law.

(d)                                 Subject to any governing rules or
regulations, as soon as practicable after receipt of a written notification of
exercise of an Option, provisions for full payment therefor and satisfaction or
provision for satisfaction of any tax withholding or other obligations, the
Company shall (i) deliver to the Participant, in the Participant’s name or the
name of the Participant’s designee, a Share certificate or certificates in an
appropriate amount based upon the number of Shares purchased under the Option,
or (ii) cause to be issued in the Participant’s name or the name of the
Participant’s designee, in book-entry form, an appropriate number of Shares
based upon the number of Shares purchased under the Option.

6.7                               Nontransferability of Options.

(a)                                  Incentive Stock Options.  No
ISO granted under the Plan may be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution. Further, during the lifetime of a Participant, all
ISOs granted to such Participant under the Plan shall be exercisable only by
such Participant.

(b)                                 Nonqualified Stock Options. 
Except as otherwise provided in a Participant’s Award Agreement, no NQSO
granted under the Plan may be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution.  Further,
except as otherwise provided in a Participant’s Award Agreement, during the
lifetime of a Participant, all NQSOs granted to such Participant under the Plan
shall be exercisable only by such Participant.

ARTICLE 7

Stock Appreciation Rights

7.1                               Grant of SARs.

(a)                                  Subject to the terms and conditions of the
Plan, SARs may be granted to Participants at any time and from time to time as
shall be determined by the Committee. 
The Committee may grant Freestanding SARs, Tandem SARs, or any
combination of these forms of SAR.

(b)                                 The Committee shall have complete discretion
in determining the number of SARs granted to each Participant (subject to
Article 4 herein) and, consistent with the provisions of the Plan, in
determining the terms and conditions pertaining to such SARs.

(c)                                  The grant price of a Freestanding SAR shall
equal the Fair Market Value of a Share on the date of grant of the SAR.  The grant price of Tandem SARs shall equal
the Exercise Price of the related Option.

 6
 

7.2                               Exercise of Tandem SARs.

(a)                                  Tandem SARs may be exercised for all or part
of the Shares subject to the related Option upon the surrender of the right to
exercise the equivalent portion of the related Option.  A Tandem SAR may be exercised only with
respect to the Shares for which its related Option is then exercisable.

(b)                                 Notwithstanding any other provision of this
Plan to the contrary, with respect to a Tandem SAR granted in connection with an
ISO: (i) the Tandem SAR will expire no later than the expiration of the
underlying ISO; (ii) the value of the payout with respect to the Tandem SAR may
be for no more than one hundred percent (100%) of the difference between the
Exercise Price of the underlying ISO and the Fair Market Value of the Shares
subject to the underlying ISO at the time the Tandem SAR is exercised; and
(iii) the Tandem SAR may be exercised only when the Fair Market Value of
the Shares subject to the ISO exceeds the Exercise Price of the ISO.

7.3                               Exercise of Freestanding SARs. 
Freestanding SARs may be exercised upon whatever terms and conditions
the Committee, in its sole discretion, imposes upon them and sets forth in the
Award Agreement.

7.4                               SAR Agreement.  Each
SAR grant shall be evidenced by an Award Agreement that shall specify the grant
price, the term of the SAR, and such other provisions as the Committee shall
determine.

7.5                               Term of SARs.  The
term of an SAR granted under the Plan shall be determined by the Committee, in
its sole discretion; provided, however, that such term shall not exceed ten
(10) years.

7.6                               Payment of SAR Amount.  Upon
exercise of an SAR, a Participant shall be entitled to receive payment from the
Company in an amount determined by multiplying:

(a)                                  the difference between the Fair Market Value
of a Share on the date of exercise over the grant price; by

(b)                                 the number of Shares with respect to which
the SAR is exercised.

At the discretion of the
Committee, the payment upon SAR exercise may be in cash, in Shares of
equivalent value, or in some combination thereof.

7.7                               Nontransferability of SARs. 
Except as otherwise provided in a Participant’s Award Agreement, no SAR
granted under the Plan may be sold, transferred, pledged, assigned, or
otherwise alienated or hypothecated, other than by will or by the laws of
descent and distribution.  Further,
except as otherwise provided in a Participant’s Award Agreement, during the
lifetime of a Participant, all SARs granted to such Participant under the Plan
shall be exercisable only by such Participant.

ARTICLE 8

Restricted Stock

8.1                               Grant of Restricted Stock. 
Subject to the terms and provisions of the Plan, the Committee, at any
time and from time to time, may grant Shares of Restricted Stock to
Participants in such amounts as the Committee shall determine.

8.2                               Restricted Stock Agreement.  Each
Restricted Stock grant shall be evidenced by an Award Agreement that shall
specify the Period(s) of Restriction, the number of Shares of Restricted Stock
granted, and such other provisions as the Committee shall determine.

8.3                               Transferability. 
Except as provided in this Article 8, the Shares of Restricted Stock
granted herein may not be sold, transferred, pledged, assigned or otherwise
alienated or hypothecated until the end of the applicable Period of Restriction
established by the Committee and specified in the Award Agreement, or upon
earlier satisfaction of any other conditions, as specified by the Committee in
its sole discretion and set forth in the

 7
 

Award Agreement. 
During the lifetime of a Participant, all rights with respect to the
Restricted Stock granted to such Participant under the Plan shall be available
only to such Participant.

8.4                               Restrictions.

(a)                                  Subject to the terms hereof, the Committee
shall impose such conditions and/or restrictions on any Shares of Restricted
Stock granted pursuant to the Plan as it may deem advisable and as are set
forth in the Award Agreement including, without limitation, a requirement that
Participants pay a stipulated purchase price for each Share of Restricted
Stock, restrictions based upon the achievement of specific performance goals
(Company-wide, divisional, and/or individual), time-based restrictions on
vesting following the attainment of the performance goals, and/or restrictions
under applicable federal or state securities laws.

(b)                                 The Company shall retain the certificates
representing Shares of Restricted Stock in the Company’s possession until such
time as all conditions and/or restrictions applicable to such Shares have been
satisfied.

(c)                                  Except as otherwise provided in this Article
8, Shares of Restricted Stock covered by each Restricted Stock grant made under
the Plan shall become freely transferable by the Participant after the last day
of the applicable Period of Restriction.

8.5                               Voting Rights. 
During the Period of Restriction, subject to any limitations imposed
under the By-laws of the Company, Participants holding Shares of Restricted
Stock granted hereunder may exercise full voting rights with respect to those
Shares.

8.6                               Dividends and Other Distributions. 
Subject to the Committee’s right to determine otherwise at the time of
grant, during the Period of Restriction, Participants holding Shares of
Restricted Stock granted hereunder may receive or be credited with regular dividends
paid with respect to the underlying Shares while they are so held.  The Committee may apply any restrictions to
the dividends that the Committee deems appropriate and as are set forth in the
Award Agreement.  Without limiting the
generality of the preceding sentence, if the grant or vesting of Restricted
Stock awarded to a Named Executive Officer is designed to comply with the
requirements of the Performance-Based Exception, the Committee may apply any
restrictions it deems appropriate to the payment of dividends declared with
respect to such Restricted Stock, such that the dividends and/or the Restricted
Stock maintain eligibility for the Performance-Based Exception.

ARTICLE 9

Termination of Service

Each
Award Agreement shall set forth the extent to which the Participant shall have
the right to exercise Options and SARs, and receive unvested Shares of
Restricted Stock, following Termination of Service with the Group.  Such provisions shall be determined in the
sole discretion of the Committee, shall be included in the Award Agreement
entered into with each Participant, need not be uniform among all Awards issued
pursuant to the Plan, and may reflect distinctions based on the reasons for
Termination of Service; provided, however, that the following shall
automatically apply to the extent different provisions are not set forth in a
Participant’s Award Agreement:

(a)                                  If the Termination of Service is by the
Company for Cause, by a Nonemployee Director or Consultant for any reason, or
by an Employee without Good Reason, all previously unexercised Options and SARs
shall expire and all unvested Restricted Stock shall be forfeited upon the date
of Termination of Service.

(b)                                 If the Participant is an Employee and the
Termination of Service is by the Participant for Good Reason, all previously
unexercised Options and SARs may be exercised for a period of three (3) months
after the date of the Participant’s Termination of Service and all unvested
Restricted Stock shall be forfeited as of such date.

 8
 

(c)                                  If the Termination of Service is a result of
the Participant’s death or Disability, all previously unexercised Options and
SARs may be exercised for a period of 12 months after the date of the
Participant’s Termination of Service and all unvested Restricted Stock shall
vest.

(d)                                 If the Termination of Service is by the
Company for any reason other than Cause or the Participant’s Disability, all
previously unexercised Options and SARs may be exercised for a period of three
(3) months after the date of the Participant’s Termination of Service and all
unvested Restricted Stock which was not granted during the year in which such
Termination of Service occurs shall vest. 
Any Restricted Stock granted during the year of Termination of Service
shall be forfeited.

ARTICLE 10

Restrictions on Shares

All
Shares acquired pursuant Awards granted hereunder, and Participants’ right to
exercise Options and SARS and/or receive Shares upon exercise or vesting of an
Award, shall be subject to all applicable restrictions contained in the Company’s
By-laws, shareholders agreement or insider trading policy, and any other
restrictions imposed by the Committee, including, without limitation,
restrictions under applicable securities laws, under the requirements of any
stock exchange or market upon which such Shares are then listed and/or traded,
and restrictions under any blue sky or state securities laws applicable to such
Shares.

ARTICLE 11

Performance Measures

If Awards under the Plan
are subject to Code Section 162(m) and the Committee determines that such
Awards should be designed to comply with the Performance-Based Exception, the
performance measure(s), the attainment of which determine the degree of payout
and/or vesting, to be used for purposes of such Awards shall be chosen from
among earnings per share, economic value added, market share (actual or
targeted growth), net income (before or after taxes), operating income, return
on assets (actual or targeted growth), return on capital (actual or targeted
growth), return on equity (actual or targeted growth), return on investment
(actual or targeted growth), gross or net underwriting results, revenue (actual
or targeted growth), share price, stock price growth, total shareholder return,
or such other performance measures as are approved by the Committee and the
Company’s shareholders.

The Committee shall have
the discretion to adjust the determinations of the degree of attainment of the
pre-established performance goals; provided, however, that Awards which are
designed to qualify for the Performance-Based Exception, and which are held by
Named Executive Officers, may not be adjusted upward (the Committee shall
retain the discretion to adjust such Awards downward).

In the event that
applicable tax laws change to permit the Committee to alter the governing
performance measures without obtaining shareholder approval of such changes,
the Committee shall have sole discretion to make such changes without obtaining
shareholder approval.  In addition,
Awards that are not intended to qualify for the Performance-Based Exception may
be based on these or such other performance measures as the Committee may
determine.

ARTICLE 12

Beneficiary Designation

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

 9
 

ARTICLE 13

 

Rights of Participants

13.1                        Continued Service. 
Nothing in the Plan shall:

(a)                                  interfere with or limit in any way the right
of the Company to terminate any Participant’s employment, service as a
Director, or service as a Consultant with the Group at any time, or

(b)                                 confer upon any Participant any right to
continue in the service of any member of the Group as an Employee, Director or
Consultant.

13.2                        Participation. 
Participation is determined by the Committee. No person shall have the
right to be selected to receive an Award under the Plan, or, having been so
selected, to be selected to receive a future Award.

ARTICLE 14

Change in Control

14.1                        Treatment of Outstanding
Awards.  Upon the occurrence of a Change in Control,
unless otherwise specifically prohibited under applicable laws, or by the rules
and regulations of any governing governmental agencies or national securities
exchanges:

(a)                                  any and all Options and SARs granted
hereunder shall become immediately exercisable; and

(b)                                 any restriction periods and restrictions
imposed on Restricted Stock shall lapse.

14.2                        Termination, Amendment, and
Modifications of Change-in-Control Provisions.  Notwithstanding any other
provision of this Plan or any Award Agreement provision, the provisions of this
Article 14 may not be terminated, amended, or modified on or after the date of
a Change in Control to affect adversely any Award theretofore granted under the
Plan without the prior written consent of the Participant with respect to said
Participant’s outstanding Awards; provided, however, that the Board, upon
recommendation of the Committee, may terminate, amend, or modify this Article
14 at any time and from time to time prior to the date of a Change in Control.

ARTICLE 15

Amendment, Modification, and Termination

15.1                        Amendment, Modification, and
Termination.  The Board may at any time and from time to
time, alter, amend, suspend or terminate the Plan or any Award hereunder in
whole or in part; provided, however, that no amendment which requires
shareholder approval in order for the Plan to continue to comply with any
applicable tax or securities or the rules of any securities exchange on which
the securities of the Company are listed, shall be effective unless such
amendment shall be approved by the requisite vote of shareholders of the
Company entitled to vote thereon; provided further that no such shall
alteration, amendment, suspension or termination shall adversely affect any
Award hereunder without the consent of the Participant to whom such Award shall
have been made.

15.2                        Adjustment of Awards Upon the
Occurrence of Certain Unusual or Nonrecurring Events.  The
Committee may make adjustments in the terms and conditions of, and the criteria
included in, Awards in recognition of unusual or nonrecurring events
(including, without limitation, the events described in Section 4.2 hereof)
affecting the Company or the financial statements of the Company or of changes
in applicable laws, regulations, or accounting principles, whenever the
Committee determines that such adjustments are appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be
made available under the

 10
 

Plan; provided that no such adjustment shall be
authorized to the extent that such authority would be inconsistent with the
Plan’s meeting the requirements, if applicable, of Code Section 162(m), as
amended from time to time.

15.3                        Compliance with Code Section
162(m).  At all times when Code Section 162(m) is
applicable, all Awards granted under this Plan to Named Executive Officers, or
to Participants who will likely become Named Executive Officers at the time of
vesting or payment, shall be awarded and administered to comply with the
requirements of Code Section 162(m), unless the Committee determines that such
compliance is not desired.  In addition,
if changes are made to Code Section 162(m) or the regulations promulgated
thereunder to permit greater flexibility with respect to any Award or Awards
available under the Plan, the Committee may, subject to this Article 15, make
any adjustments it deems appropriate.

ARTICLE 16

Withholding

16.1                        Tax Withholding.  The
Company shall have the power and the right to deduct or withhold, or require a
Participant to remit to the Company, an amount (in cash or Shares) sufficient
to satisfy any taxes required by federal, state, or local law or regulation to
be withheld with respect to any taxable event arising as a result of this Plan.

16.2                        Share Withholding. 
Participants may elect, subject to the approval of the Committee, to
satisfy all or part of such withholding requirement by having the Company withhold
Shares having a Fair Market Value equal to the amount to be withheld up to the
minimum statutory total tax withholding rate (or such other rate that will not
result in a negative accounting impact). 
All such elections shall be irrevocable, made in writing, signed by the
Participant, and shall be subject to any restrictions or limitations that the
Committee, in its sole discretion, deems appropriate.

ARTICLE 17

Indemnification

Each person who is or
shall have been a member of the Committee, or of the Board, shall be
indemnified and held harmless by the Company to the fullest extent permitted by
applicable law against and from any loss, cost, liability, or expense that may
be imposed upon or reasonably incurred by him or her in connection with or resulting
from any claim, action, suit, or proceeding to which he or she may be a party
or in which he or she may be involved by reason of any action taken or failure
to act under the Plan and against and from any and all amounts paid by him or
her in settlement thereof, with the Company’s approval, or paid by him or her
in satisfaction of any judgment in any such action, suit, or proceeding against
him or her, provided he or she shall give the Company an opportunity, at its
own expense, to handle and defend the same before he or she undertakes to
handle and defend it on his or her own behalf. 
The foregoing right of indemnification is subject to the person having
been successful in the legal proceedings or having acted in good faith and what
is reasonably believed to be a lawful manner in the Company’s best
interests.  The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification
to which such persons may be entitled under the Company’s Articles of
Incorporation or Bylaws, as a matter of law, or otherwise, or any power that
the Company may have to indemnify them or hold them harmless.

ARTICLE 18

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.

 11
 

ARTICLE 19

 

Legal Construction

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

19.2                        Severability.  In
the event any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of
the Plan, and the Plan shall be construed and enforced as if the illegal or
invalid provision had not been included.

19.3                        Requirements of Law.  The
granting of Awards and the issuance of Shares under the Plan shall be subject
to, and may be made contingent upon satisfaction of, all applicable laws,
rules, and regulations, and to such approvals by any governmental agencies or
national securities exchanges as may be required.

19.4                        Governing Law.  To
the extent not preempted by federal law, the Plan, and all agreements
hereunder, shall be construed in accordance with and governed by the laws of
the state of New York, excluding any conflicts or choice of law rule or
principle that might otherwise refer construction or interpretation of this
Plan to the substantive law of another jurisdiction.

19.5                        Code
Section 409A Compliance.  To the
extent applicable, it is intended that this Plan and any Awards granted
hereunder comply with the requirements of Section 409A of the Code and any
related regulations or other guidance promulgated with respect to such Section
by the U.S. Department of the Treasury or the Internal Revenue Service (“Section
409A”).  Any provision that would cause
the Plan or any Award granted hereunder to fail to satisfy Section 409A shall
have no force or effect until amended to comply with Section 409A, which
amendment may be retroactive to the extent permitted by Section 409A.

 12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]