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ex101.htm

     

     

    
      

      

    

    
                                              

                                                                                                     

                                                                                       Exhibit
10.1

       

       

      BROADPOINT
GLEACHER SECURITIES GROUP, INC.

      

      2003
NON-EMPLOYEE DIRECTORS STOCK PLAN

      (As
Amended and Restated Through June 16, 2009)

      

                 1.  Purpose.  The
purpose of the 2003 Non-Employee Directors’ Stock Plan (the “Plan”) is to
promote the interests of Broadpoint Gleacher Securities Group, Inc. (the
“Company”), its Subsidiaries and its shareholders by further aligning the
intentions of directors with those of the Company’s shareholders.  To
do this, the Plan offers equity-based opportunities providing directors with a
proprietary interest in maximizing the growth, profitability and overall success
of the Company and its Subsidiaries.

      

                 2.      Definitions.  For
purposes of the Plan, the following terms shall have the meanings set forth
below:

      

                            2.1           “Award” means an award or
grant made to a Non-Employee Director under Sections 6 and/or 7 of the
Plan.

      

                            2.2           “Award Agreement” means the
agreement executed by a Non-Employee Director pursuant to Sections 3.2 and 15.6
of the Plan in connection with the granting of an Award.

      

                            2.3           “Board” means the Board of
Directors of the Company, as constituted from time to time.

      

                            2.4           “Code” means the Internal
Revenue Code of 1986, as in effect and as amended from time to time, or any
successor statute thereto, together with any rules, regulations and
interpretations promulgated thereunder or with respect thereto.

       

                            2.5           “Common Stock” means the
Common Stock, par value $.01 per share, of the Company or any security of the
Company issued by the Company in substitution or exchange therefor.

      

                            2.6           “Company” means Broadpoint
Gleacher Securities Group, Inc., a New York corporation, or any successor
corporation to Broadpoint Gleacher Securities Group, Inc.

      

                            2.7           “Disability” means disability
as determined by the Board in accordance with standards and procedures similar
to those under the Company’s long-term disability plan, if any.  At
any time that the Company does not maintain a long-term disability plan,
“Disability” shall mean any physical or mental disability which is determined to
be total and permanent by a physician selected in good faith by the
Company.

      

                            2.8           “Exchange Act” means the
Securities Exchange Act of 1934, as in effect and as amended from time to time,
or any successor statute thereto, together with any rules, regulations and
interpretations promulgated thereunder or with respect thereto.

       

       

       

      
        
          
          

        

        
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                            2.9           “Fair Market Value” means on,
or with respect to, any given date(s), the average of the highest and lowest
market prices of the Common Stock, as reported on the NASDAQ NMS for such
date(s) or, if the Common Stock was not traded on such date(s), on the next
preceding day or days on which the Common Stock was traded.  If at any
time the Common Stock is not traded on such exchange, the Fair Market Value of a
share of the Common Stock shall be determined in good faith by the
Board.

      

                            2.10           “Non-Qualified Stock Option”
means any stock option that is not an “incentive stock option” within the
meaning of Section 422 of the Code.

      

                            2.11           “Plan” means the Broadpoint
Gleacher Securities Group, Inc. 2003 Non-Employee Director Stock Plan, as set
forth herein and as in effect and as amended from time to time (together with
any rules and regulations promulgated by the Board with respect
thereto).

      

                            2.12           “Restricted Shares” means the
restricted shares of Common Stock granted pursuant to the provisions of Section
7 of the Plan and the relevant Award Agreement.

      

                            2.13           “Service Year” means the
approximately annual period commencing at an annual meeting of the Company’s
shareholders and ending at the next annual meeting of the Company’s
shareholders.

      

                            2.14           “Subsidiary(ies)” means any
corporation (other than the Company) in an unbroken chain of corporations,
including and beginning with the Company, if each of such corporations, other
than the last corporation in the unbroken chain, owns, directly or indirectly,
more than fifty percent (50%) of the voting stock in one of the other
corporations in such chain.

      

                 3.  Administration.

      

                           
3.1           Administrator
of the Plan.  The Plan shall be
administered by the Board.

      

                            3.2           Plan
Rules.  The Board shall
have full power and authority to promulgate, amend and rescind rules and
regulations relating to the implementation, administration and maintenance of
the Plan.  Subject to the terms and conditions of the Plan, the Board
shall make all determinations necessary or advisable for the implementation,
administration and maintenance of the Plan including, without limitation, (a)
making Awards in such amounts and form as the Board shall determine, (b)
imposing such restrictions, terms and conditions upon such Awards as the Board
shall deem appropriate, and (c) correcting any technical defect(s) or technical
omission(s), or reconciling any technical inconsistency(ies), in the Plan and/or
any Award Agreement.  The Board may designate persons other than
members of the Board to carry out the day-to-day ministerial administration of
the Plan under such conditions and limitations as it may prescribe, except that
the Board shall not delegate its authority with regard to the granting of any
Awards to Non-Employee Directors.  Any determination, decision or
action of the Board in connection with the construction, interpretation,
administration, implementation or maintenance of the Plan shall be final,
conclusive and binding upon all Non-Employee Directors and any person(s)
claiming under or through any Non-Employee Directors.  The Company
shall effect the granting of Awards under the Plan, in accordance with the
determinations made by the Board, by execution of written agreements and/or
other instruments in such form as is approved by the Board.

       

       

       

       

      
        
          
          

        

        
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                            3.3           Liability
Limitation.  Neither the Board
nor any of its members shall be liable for any act, omission, interpretation,
construction or determination made in good faith in connection with the Plan (or
any Award Agreement), and the members of the Board shall be entitled to
indemnification and reimbursement by the Company in respect of any claim, loss,
damage or expense (including, without limitation, attorneys’ fees) arising or
resulting therefrom to the fullest extent permitted by law and/or under any
directors and officers liability insurance coverage which may be in effect from
time to time.

       

          4.  Term of Plan/Common Stock
Subject to Plan.

      
        
        

      

      

                            4.1           Term.  The
Plan shall terminate at such time as no shares of Common Stock remain available
for grant of Awards and no Awards remain outstanding.  Outstanding
Awards shall remain in effect until they have been exercised, become vested or
have terminated or expired.

      

                            4.2           Common
Stock.  The maximum
number of shares of Common Stock in respect of which Awards may be granted or
paid out under the Plan, subject to adjustment as provided in Section 12.2 of
the Plan, shall not exceed 2,000,000 shares.  In the event of a change
in the Common Stock of the Company that is limited to a change in the
designation thereof to “Capital Stock” or other similar designation, or to a
change in the par value thereof, or from par value to no par value, without
increase or decrease in the number of issued shares, the shares resulting from
any such change shall be deemed to be the Common Stock for purposes of the
Plan.  Common Stock which may be issued under the Plan may be either
authorized and unissued shares or issued shares which have been reacquired by
the Company (in the open-market or in private transactions) and which are being
held as treasury shares.  No fractional shares of Common Stock shall
be issued under the Plan.

      

                            4.3           Computation
of Available Shares.  For the purpose
of computing the total number of shares of Common Stock available for Awards
under the Plan, there shall be counted against the limitations set forth in
Section 4.2 of the Plan the maximum number of shares of Common Stock potentially
subject to issuance upon exercise of Stock Options granted under Sections 6 of
the Plan and the number of shares of Common Stock issued under grants of
Restricted Shares pursuant to Section 7 of the Plan, in each case determined as
of the date on which such Awards are granted.  If any Awards expire
unexercised or are forfeited, surrendered, cancelled or terminated, the shares
of Common Stock which were theretofore subject to such Awards shall again be
available for Awards under the Plan to the extent of such expiration,
forfeiture, surrender, cancellation or termination of such Awards.

       

       

       

      
        
          
          

        

        
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          5.  Eligibility.  Any member of the
Board who is not an employee of the Company or any Subsidiary (a “Non-Employee
Director”) is eligible to participate in the Plan.

       

          6.  Stock
Options.

       

              6.1           Terms and
Conditions.  Stock options granted under the Plan shall be in
respect of Common Stock and shall be in the form of Non-Qualified Stock Options
(“Stock Options”).  Such Stock Options shall be subject to the terms
and conditions set forth in this Section 6 and any additional terms and
conditions, not inconsistent with the express terms and provisions of the Plan,
as the Board shall set forth in the relevant Award Agreement.

       

              6.2           Annual
Stock Option Grant.  Each person who
is or becomes a Non-Employee Director on the date of an annual meeting of the
Company’s shareholders and whose service will continue after such meeting shall
be granted a Stock Option under the Plan to purchase a number of shares of
Common Stock, if any, determined annually by the Board; provided, however, that
no Non-Employee Director may receive Stock Options worth in the aggregate
more than $100,000 (as determined by the Board) in any Service Year (including
Stock Options granted pursuant to Section 6.3, but not including Stock Options
granted in lieu of a Non-Employee Director’s annual cash retainer pursuant to
Section 6.8).  Any Stock Options granted pursuant to this Section 6.2
shall be granted as of the date of the annual meeting.

       

              6.3           Discretionary
Stock Option Grant.  In addition to any Stock Options granted
pursuant to Section 6.2, the Board may from time to time grant Stock Options to
Non-Employee Directors to purchase a number of shares of Common Stock determined
by the Board; provided, however, that no Non-Employee Director may receive Stock
Options worth in the aggregate more than $100,000 (as determined by the Board)
in any Service Year (including Stock Options granted pursuant to Section 6.2,
but not including Stock Options granted in lieu of a Non-Employee Director’s
annual cash retainer pursuant to Section 6.8).

       

              6.4           Exercise
Price.  The exercise
price of a Stock Option shall not be less than one hundred percent (100%) of the
Fair Market Value of the Common Stock on the date of the grant of such Stock
Option.

       

              6.5           Term.  The term of each
Stock Option shall be not more than ten (10) years after the date immediately
preceding the date on which the Stock Option is granted, as determined by the
Board in its sole discretion.

       

              6.6    Method of
Exercise.  A Stock Option
may be exercised, in whole or in part, by giving written notice of exercise to
the Secretary of the Company, or the Secretary’s designee, specifying the number
of shares to be purchased.  Such notice shall be accompanied by
payment in full of the exercise price in cash, by certified check, bank draft,
or money order payable to the order of the Company, by delivery of shares of
Common Stock already owned by the Non-Employee Director for at least six (6)
months, or, if permitted by the Board (in its sole discretion) and applicable
law, by delivery of, alone or in conjunction with a partial cash or instrument
payment, some other form of payment acceptable to the Board.  Payment
instruments shall be received by the Company subject to
collection.  The proceeds received by the Company upon exercise of any
Stock Option may be used by the Company for general corporate
purposes.  Any portion of a Stock Option that is exercised may not be
exercised again.

       

       

       

      
        
          
          

        

        
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              6.7    Exercisability.  In respect of any
Stock Option granted under the Plan, unless otherwise determined by the Board
(in its sole discretion) at any time and from time to time, such Stock Option
shall become exercisable as to the aggregate number of shares of Common Stock
underlying such Stock Option, as determined on the date of grant, as
follows:

      

      
        	
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                One
      third (1/3), on the first anniversary of the date of grant of the Stock
      Option, provided the Non-Employee Director continuously remains a director
      of the Company; 

              

      

      

      
        	
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                Two
      thirds (2/3), on the second anniversary of the date of grant of the Stock
      Option, provided the Non-Employee Director continuously remains a director
      or consultant of the Company;

              

      

      

      
        	
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                100%,
      on the third anniversary of the date of grant of the Stock Option,
      provided the Non-Employee Director continuously remains a director or
      consultant of the Company.

              

      

      

      Notwithstanding
anything to the contrary contained in this Section 6.7, such Stock Option shall
become one hundred percent (100%) exercisable as to the aggregate number of
shares of Common Stock underlying such Stock Option upon the death or Disability
of the Non-Employee Director.\

       

              6.8    Election
to Receive Stock Options in Lieu of Annual Cash Retainer.  In
addition to any Awards granted pursuant to Sections 6.2, 6.3, 7.2 and 7.3, the
Board, in its discretion, may permit a Non-Employee Director to elect to receive
Stock Options in lieu of all or a portion of his or her annual cash
retainer.  If the Board permits such an election, it, in its
discretion, shall determine the appropriate terms of such Stock
Options.  Any such election, if permitted by the Board, shall be made
in accordance with such procedures as are adopted from time to time by the
Board.

       

              6.9    Election
of Form of Grant.  The Board, in its discretion, may permit a
Non-Employee Director to elect whether an annual grant (in the amount determined
by the Board) is made to such Non-Employee Director in the form of Stock Options
pursuant to Section 6.2 or Restricted Shares pursuant to Section 7.2, provided
that such election is made prior to the date of the applicable annual meeting
and otherwise is made in accordance with such procedures as are adopted from
time to time by the Board.

       

       

       

       

       

      
        
          
          

        

        
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          7.    Restricted
Shares.

       

              7.1           Terms and
Conditions; Annual Grant of Restricted Shares.  Grants of
Restricted Shares shall be subject to the terms and conditions set forth in this
Section 7 and any additional terms and conditions, not inconsistent with the
express terms and provisions of the Plan, as the Board shall set forth in the
relevant Award Agreement.

       

              7.2           Annual
Grant of Restricted Shares.  Restricted Shares may be granted
alone or in addition to Stock Options.  Each person who is or becomes
a Non-Employee Director on the date of an annual meeting of the Company’s
shareholders and whose service will continue after such meeting shall be granted
a number of Restricted Shares, if any, determined annually by the Board;
provided, however, that no Non-Employee Director may receive more than $100,000
in Restricted Shares in any Service Year (including Restricted Shares
granted pursuant to Section 7.3, but not including Restricted Shares granted in
lieu of a Non-Employee Director’s annual cash retainer pursuant to Section
7.4).  Any Restricted Shares granted pursuant to this Section 7.2
shall be granted as of the date of the annual meeting.

       

              7.3           Discretionary
Grant of Restricted Shares.  In addition to any Restricted
Shares granted pursuant to Section 7.2, the Board may from time to time grant a
number of Restricted Shares to Non-Employee Directors determined by the Board;
provided, however, that no Non-Employee Director may receive more than $100,000
in Restricted Shares in any Service Year (including Restricted Shares
granted pursuant to Section 7.2, but not including Restricted Shares granted in
lieu of a Non-Employee Director’s annual cash retainer pursuant to Section
7.4).

       

              7.4    Election
to Receive Restricted Shares in Lieu of Annual Cash
Retainer.  In addition to any Awards granted pursuant to
Sections 6.2, 6.3, 7.2 and 7.3, the Board, in its discretion, may permit a
Non-Employee Director to elect to receive Restricted Shares in lieu of all or a
portion of his or her annual cash retainer.  If the Board permits such
an election, it, in its discretion, shall determine the appropriate terms of
such Restricted Shares.  Any such election, if permitted by the Board,
shall be made in accordance with such procedures as are adopted from time to
time by the Board.

       

              7.5    Restrictive
Legend.  With respect to each Non-Employee Director receiving
an Award of Restricted Shares, there shall be issued a stock certificate (or
certificates) in respect of such Restricted Shares.  Such stock
certificate(s) shall be registered in the name of such Non-Employee Director,
shall be accompanied by a stock power duly executed by such Non-Employee
Director, and shall bear, among other required legends, the following
legend:

      

      
        	 	
                “The
      transferability of this certificate and the shares of stock represented
      hereby are subject to the terms and conditions (including, without
      limitation, forfeiture events) contained in the Broadpoint Gleacher
      Securities Group, Inc. 2003 Non-Employee Directors Stock Plan and an Award
      Agreement entered into between the registered owner hereof and Broadpoint
      Gleacher Securities Group, Inc.  Copies of such Plan and Award
      Agreement are on file in the office of the Secretary of Broadpoint
      Gleacher Securities Group, Inc., 12 East 49th
      Street, 31st
      Floor, New York, NY 10017.  Broadpoint Gleacher Securities
      Group, Inc. will furnish to the recordholder of the certificate, without
      charge and upon written request at its principal place of business, a copy
      of such Plan and Award Agreement.  Broadpoint Gleacher
      Securities Group, Inc. reserves the right to refuse to record the transfer
      of this certificate until all such restrictions are satisfied, all such
      terms are complied with and all such conditions are
      satisfied.”

              

      

       

       

      
 

      
        
          
          

        

        
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      Such
stock certificate evidencing such shares shall, in the sole discretion of the
Board, be deposited with and held in custody by the Company until the
restrictions thereon shall have lapsed and all of the terms and conditions
applicable to such grant shall have been satisfied.

       

              7.6           Nature of
Restricted Shares.  A grant of
Restricted Shares is an Award of shares of Common Stock granted to a
Non-Employee Director, subject to such restrictions, terms and conditions as the
Board deems appropriate, including, without limitation, (a) restrictions on the
sale, assignment, transfer, hypothecation or other disposition of such shares,
(b) the requirement that the Non-Employee Director deposit such shares with the
Company while such shares are subject to such restrictions, and (c) the
requirement that such shares be forfeited if the Non-Employee Director ceases to
be a director for specified reasons within a specified period of time or for
other reasons.

       

              7.7           Restriction
Period.  In accordance
with this Section 7 of the Plan and unless otherwise determined by the Board (in
its sole discretion) at any time and from time to time, Restricted Shares shall
only become unrestricted and vested in the Non-Employee Director in accordance
with such vesting schedule relating to such Restricted Shares, if any, as the
Board may establish in the relevant Award Agreement (the “Restriction
Period”).  Notwithstanding the preceding sentence, in no event shall
the Restriction Period be less than six (6) months after the date of
grant.  During the Restriction Period, such stock shall be and remain
unvested and a Non-Employee Director may not sell, assign, transfer, pledge,
encumber or otherwise dispose of or hypothecate such Award.  Upon
satisfaction of the vesting schedule and any other applicable restrictions,
terms and conditions, the Non-Employee Director shall be entitled to receive
payment of the Restricted Shares or a portion thereof, as the case may be, as
provided in Section 7.8  of the Plan.

       

              7.8           Payment
of Restricted Share Grants.  After the satisfaction and/or
lapse of the restrictions, terms and conditions established by the Board in
respect of a grant of Restricted Shares, a new certificate, without the legend
set forth in Section 7.5 of the Plan, for the number of shares of Common Stock
which are no longer subject to such restrictions, terms and conditions shall, as
soon as practicable thereafter, be delivered to the Non-Employee
Director.

       

       

       

       

      
        
          
          

        

        
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               7.9           Shareholder
Rights.  A Non-Employee
Director shall have, with respect to the shares of Common Stock underlying a
grant of Restricted Shares, all of the rights of a shareholder of such stock
(except as such rights are limited or restricted under the Plan or in the
relevant Award Agreement).  Any stock dividends paid in respect of
unvested Restricted Shares shall be treated as additional Restricted Shares and
shall be subject to the same restrictions and other terms and conditions that
apply to the unvested Restricted Shares in respect of which such stock dividends
are issued.

       

          8.    Deferral
Elections.  The Board may
permit a Non-Employee Director to elect to defer receipt of any payment of cash
or any delivery of shares of Common Stock that would otherwise be due to such
Non-Employee Director by virtue of the exercise or settlement of any Award made
under the Plan.  If any such election is permitted, the Board shall
establish rules and procedures for such deferrals, including, without
limitation, the payment or crediting of reasonable interest on such deferred
amounts credited in cash, and the payment or crediting of dividend equivalents
in respect of deferrals credited in units of Common Stock.  The Board
may also provide in the relevant Award Agreement for a tax reimbursement cash
payment to be made by the Company in favor of any Non-Employee Director in
connection with the tax consequences resulting from the grant, exercise or
settlement of any Award made under the Plan.

       

          9.    Dividend
Equivalents.  In addition to
the provisions of Section 7.9 of the Plan, Awards of Stock Options may, in the
sole discretion of the Board and if provided for in the relevant Award
Agreement, earn dividend equivalents.  In respect of any such Award
which is outstanding on a dividend record date for Common Stock, the
Non-Employee Director shall be credited with an amount equal to the amount of
cash or stock dividends that would have been paid on the shares of Common Stock
covered by such Award had such covered shares been issued and outstanding on
such dividend record date.  The Board shall establish such rules and
procedures governing the crediting of such dividend equivalents, including,
without limitation, the amount, the timing, form of payment and payment
contingencies and/or restrictions of such dividend equivalents, as it deems
appropriate or necessary.

       

          10.   Termination of
Service.

       

              10.1           Options.  If a Non-Employee
Director ceases to be a member of the Board for any reason, any then
unexercisable Stock Options shall be forfeited and cancelled by the
Company.  Except as otherwise provided in this Section 10.1, if a Non
Employee Director ceases to be a member of the Board for any reason, such
Non-Employee Director’s rights, if any, to exercise any then exercisable Stock
Options, if any, shall terminate ninety (90) days after the date of such
termination of service (but not beyond the stated term of any such Stock Option
as determined under Sections 6.5) and thereafter such Stock Options shall be
forfeited and cancelled by the Company.  If a Non-Employee Director
ceases to be a member of the Board due to death or Disability, a Non-Employee
Director (and such Non-Employee Director’s estate, designated beneficiary or
other legal representative, as the case may be and as determined by the Board)
shall have the right, to the extent exercisable immediately prior to any such
termination of service, to exercise such Stock Options, if any, at any time
within the one (1) year period following such termination due to death or
Disability (but not beyond the term of any such Stock Option as determined under
Sections 6.5).

       

       

       

      
        
          
          

        

        
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            10.2           Restricted
Shares.  If a Non-Employee
Director ceases to be a member of the Board for any reason (other than due to
Disability or death) prior to the satisfaction and/or lapse of the restrictions,
terms and conditions applicable to a grant of Restricted Shares, such Restricted
Shares shall immediately be cancelled and the Non-Employee Director (and such
Non-Employee Director’s estate, designated beneficiary or other legal
representative) shall forfeit any rights or interests in and with respect to any
such Restricted Shares.  If the Non-Employee Director ceases to be a
member of the Board due to death or Disability, the Non-Employee Director shall
become 100% vested in any such Non-Employee Director’s Restricted Shares as of
the date of any such termination.

      

                 11.           Non-transferability
of Awards.  No Award under
the Plan or any Award Agreement, and no rights or interests herein or therein,
shall or may be assigned, transferred, sold, exchanged, encumbered, pledged, or
otherwise hypothecated or disposed of by a Non-Employee Director or any
beneficiary(ies) of any Non-Employee Director, except by testamentary
disposition by the Non-Employee Director or the laws of intestate succession;
provided, however, that an Award may be transferred to a Non-Employee Director’s
family members or to one or more trusts established in whole or in part for the
benefit of one or more of such family members.  No such interest shall
be subject to execution, attachment or similar legal process, including, without
limitation, seizure for the payment of the Non-Employee Director’s debts,
judgements, alimony, or separate maintenance.  During the lifetime of
a Non-Employee Director, Stock Options are exercisable only by the Non-Employee
Director.

      

                 12.           Changes in Capitalization
and Other Matters.

       

               12.1           No
Corporate Action Restriction.  The existence of
the Plan, any Award Agreement and/or the Awards granted hereunder shall not
limit, affect or restrict in any way the right or power of the Board or the
shareholders of the Company to make or authorize (a) any adjustment,
recapitalization, reorganization or other change in the Company’s or any
Subsidiary’s capital structure or its business, (b) any merger, consolidation or
change in the ownership of the Company or any Subsidiary, (c) any issue of
bonds, debentures, capital, preferred or prior preference stocks ahead of or
affecting the Company’s or any Subsidiary’s capital stock or the rights thereof,
(d) any dissolution or liquidation of the Company or any Subsidiary, (e) any
sale or transfer of all or any part of the Company’s or any Subsidiary’s assets
or business, or (f) any other corporate act or proceeding by the Company or any
Subsidiary.  No Non-Employee Director, beneficiary or any other person
shall have any claim against any member of the Board, the Company or any
Subsidiary, or any employees, officers or agents of the Company or any
Subsidiary, as a result of any such action.

       

       

       

       

      
        
          
          

        

        
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              12.2           Recapitalization
Adjustments.  In the event of
any change in capitalization affecting the Common Stock of the Company,
including, without limitation, a distribution, stock split, reverse stock split,
recapitalization, consolidation, subdivision, split-up, spin-off, split-off,
combination or exchange of shares or other form of reorganization or
recapitalization, or any other change affecting the Common Stock, the Board
shall authorize and make such proportionate adjustments, if any, as the Board
deems appropriate to reflect such change, including, without limitation, with
respect to the aggregate number of shares of the Common Stock for which Awards
in respect thereof may be granted under the Plan, the maximum number of shares
of the Common Stock which may be granted or awarded to any Non-Employee
Director, the number of shares of the Common Stock covered by each outstanding
Award, and the exercise price or other price per share of Common Stock in
respect of outstanding Awards.  Notwithstanding the foregoing, in the
event of a stock dividend, the proportionate adjustments described in this
Section 12.2 shall occur automatically, without any Board action being
required.

       

              12.3           Certain
Mergers.

      

      
        	 	
                12.3.1

              	
                If
      the Company enters into or is involved in any merger, reorganization or
      other business combination with any person or entity (such merger,
      reorganization or other business combination to be referred to herein as a
      “Merger Event”) and as a result of any such Merger Event the Company will
      be or is the surviving corporation, a Non-Employee Director shall be
      entitled, as of the date of the execution of the agreement evidencing the
      Merger Event (the “Execution Date”) and with respect to both exercisable
      and unexercisable Stock Options (but only to the extent not previously
      exercised), to receive substitute stock options in respect of the shares
      of the surviving corporation on such terms and conditions, as to the
      number of shares, pricing and otherwise, which shall substantially
      preserve the value, rights and benefits of any affected Stock Options
      granted hereunder as of the date of the consummation of the Merger
      Event.  Notwithstanding anything to the contrary in this Section
      12.3, if any Merger Event occurs, the Company shall have the right, but
      not the obligation, to pay to each affected Non-Employee Director an
      amount in cash or certified check equal to the excess of the Fair Market
      Value of the Common Stock underlying any affected unexercised Stock
      Options or as of the Execution Date (whether then exercisable or not) over
      the aggregate exercise price of such unexercised Stock Options, as the
      case may be.

              

      

      

      
        	 	
                12.3.2

              	
                If,
      in the case of a Merger Event in which the Company will not be, or is not,
      the surviving corporation, and the Company determines not to make the cash
      or certified check payment described in Section 12.3.1 of the Plan, the
      Company shall compel and obligate, as a condition of the consummation of
      the Merger Event, the surviving or resulting corporation and/or the other
      party to the Merger Event, as necessary, or any parent, subsidiary or
      acquiring corporation thereof, to grant, with respect to both exercisable
      and unexercisable Stock Options (but only to the extent not previously
      exercised), substitute stock options in respect of the shares of common or
      other capital stock of such surviving or resulting corporation on such
      terms and conditions, as to the number of shares, pricing and otherwise,
      which shall substantially preserve the value, rights and benefits of any
      affected Stock Options previously granted hereunder as of the date of the
      consummation of the Merger Event.

              

      

       

       

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      
 

      
        	 	
                12.3.3

              	
                Upon
      receipt by any affected Non-Employee Director of any such cash, certified
      check, or substitute stock options as a result of any such Merger Event,
      such Non-Employee Director’s affected Stock Options for which such cash,
      certified check or substitute awards was received shall be thereupon
      cancelled without the need for obtaining the consent of any such affected
      Non-Employee Director.

              

      

      

      
        	 	
                12.3.4

              	
                The
      foregoing adjustments and the manner of application of the foregoing
      provisions, including, without limitation, the issuance of any substitute
      stock options, shall be determined in good faith by the Board in its sole
      discretion.  Any such adjustment may provide for the elimination
      of fractional shares.

              

      

      

              

          13.           Change of
Control.

      

                            13.1           Acceleration
of Awards Vesting.  Anything in the
Plan to the contrary notwithstanding, if a Change of Control of the Company
occurs (a) all Stock Options then unexercised and outstanding shall become fully
vested and exercisable as of the date of the Change of Control and (b) all
restrictions, terms and conditions applicable to all Restricted Shares then
outstanding shall be deemed lapsed and satisfied as of the date of the Change of
Control.  The immediately preceding sentence shall apply to only those
Non-Employee Directors (i) who are serving on the Board as of the date of the
Change of Control or (ii) to whom Section 13.3 below is applicable.

      

                            13.2           Payment
After Change of Control.  Notwithstanding
anything to the contrary in the Plan, within thirty (30) days after a Change of
Control occurs, (a) the holder of an Award of Restricted Shares vested under
Section 13.1(b) above shall receive a new certificate for such shares without
the legend set forth in Section 7 of the Plan (and, in the case only of a Change
of Control under Section 13.3.1 of the Plan, such holder shall have the right,
but not the obligation, to elect, within ten (10) business days after the
Non-Employee Director has actual or constructive knowledge of the occurrence of
such Change of Control, to require the Company to purchase such shares from the
Non-Employee Director at their then Fair Market Value and (b) in the case only
of a Change of Control under Section 13.3.1 of the Plan, the holders of any
Stock Options shall have the right, but not the obligation, to elect, within ten
(10) business days after the Non-Employee Director has actual or constructive
knowledge of the occurrence of such Change of Control, to require the Company to
purchase such Stock Options from the Non-Employee Director for an aggregate
amount equal to the then aggregate Fair Market Value of the Common Stock
underlying such Stock Option tendered, less the aggregate exercise price of such
tendered Stock Option.

      

                            13.3           Change of
Control.  For the purpose
of this Agreement, “Change of Control” shall mean:

       

       

       

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

       

       

      

      
        	 	
                13.3.1

              	
                The
      acquisition, after the effective date of the Plan, by an individual,
      entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
      of the Exchange Act) of beneficial ownership (within the meaning of
      Rule 13d-3 promulgated under the Exchange Act) of 30% or more of
      either (a) the shares of the Common Stock, or (b) the combined
      voting power of the voting securities of the Company entitled to vote
      generally in the election of directors (the “Voting Securities”); provided, however, that
      the following acquisitions shall not constitute a Change of Control: (i)
      any acquisition by any individual who, on the effective date of the Plan,
      beneficially owned 10% or more of the Common Stock, (ii) any
      acquisition by any employee benefit plan (or related trust) sponsored or
      maintained by the Company or any Subsidiary, (iii) any acquisition by any
      underwriter in connection with any firm commitment underwriting of
      securities to be issued by the Company, or (iv) any acquisition by
      any corporation if, immediately following such acquisition, more than 70%
      of the then outstanding shares of common stock of such corporation and the
      combined voting power of the then outstanding voting securities of such
      corporation (entitled to vote generally in the election of directors), is
      beneficially owned, directly or indirectly, by all or substantially all of
      the individuals and entities who, immediately prior to such acquisition,
      were the beneficial owners of the Common Stock and the Voting Securities
      in substantially the same proportions, respectively, as their ownership,
      immediately prior to such acquisition, of the Common Stock and Voting
      Securities; or

              

      

      

      
        	 	
                13.3.2

              	
                Individuals
      who, as of the effective date of the Plan, constitute the Board (the
      “Incumbent Board”) cease thereafter for any reason to constitute at least
      a majority of the Board; provided, however, that
      any individual becoming a director subsequent to the effective date of the
      Plan whose election, or nomination for election by the Company’s
      shareholders, was approved by at least a majority of the directors then
      serving and comprising the Incumbent Board shall be considered as though
      such individual were a member of the Incumbent Board, but excluding, for
      this purpose, any such individual whose initial assumption of office
      occurs as a result of either an actual or threatened election contest (as
      such terms are used in Rule 14a-11 of Regulation 14A promulgated
      under the Exchange Act) or other actual or threatened solicitation of
      proxies or consents; or

              

      

      

      
        	 	
                13.3.3

              	
                Approval
      by the shareholders of the Company of a reorganization, merger or
      consolidation, other than a reorganization, merger or consolidation with
      respect to which all or substantially all of the individuals and entities
      who were the beneficial owners, immediately prior to such reorganization,
      merger or consolidation, of the Common Stock and Voting Securities
      beneficially own, directly or indirectly, immediately after such
      reorganization, merger or consolidation more than 70% of the then
      outstanding common stock and voting securities (entitled to vote generally
      in the election of directors) of the corporation resulting from such
      reorganization, merger or consolidation in substantially the same
      proportions as their respective ownership, immediately prior to such
      reorganization, merger or consolidation, of the Common Stock and the
      Voting Securities; or

              

      

       

       

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      
 

      
        	 	
                13.3.4

              	
                Approval
      by the shareholders of the Company of (a) a complete liquidation or
      substantial dissolution of the Company, or (b) the sale or other
      disposition of all or substantially all of the assets of the Company,
      other than to a Subsidiary, wholly-owned, directly or indirectly, by the
      Company.

              

      

      

                 14.           Amendment,
Suspension and Termination.

      

                            14.1           In
General.  The Board may
suspend or terminate the Plan (or any portion thereof) at any time and may amend
the Plan at any time and from time to time in such respects as the Board may
deem advisable to ensure that any and all Awards conform to or otherwise reflect
any change in applicable laws or regulations, or to permit the Company or the
Non-Employee Directors to benefit from any change in applicable laws or
regulations, or in any other respect the Board may deem to be in the best
interests of the Company or any Subsidiary.  No such amendment,
suspension or termination shall (x) materially adversely effect the rights of
any Non-Employee Director under any outstanding Stock Options or Restricted
Share grants, without the consent of such Non-Employee Director or (y) be
effective without shareholder approval if such approval is required to comply
with any applicable law or stock exchange rule.

      

                            14.2           Award
Agreement Modifications.  No modification, extension, renewal
or other change in any Award granted under the Plan shall be made after grant,
unless the same is consistent with the provisions of the Plan.

      

                 15.           Miscellaneous.

      

                            15.1           No Right
to Reelection.  Neither the
adoption of the Plan, the granting of any Award, nor the execution of any Award
Agreement, shall confer upon any Non-Employee Director any right to remain a
member of the Board for any period of time, nor shall it create any obligation
on the part of the Board to nominate any of its members for reelection by the
Company’s shareholders.

      

                            15.2           Unfunded
Plan.  The Plan shall be
unfunded and the Company shall not be required to segregate any assets in
connection with any Awards under the Plan.  Any liability of the
Company to any person with respect to any Award under the Plan or any Award
Agreement shall be based solely upon the contractual obligations that may be
created as a result of the Plan or any such award or agreement.  No
such obligation of the Company shall be deemed to be secured by any pledge of,
encumbrance on, or other interest in, any property or asset of the Company or
any Subsidiary.  Nothing contained in the Plan or any Award Agreement
shall be construed as creating in respect of any Non-Employee Director (or
beneficiary thereof or any other person) any equity or other interest of any
kind in any assets of the Company or any Subsidiary or creating a trust of any
kind or a fiduciary relationship of any kind between the Company, any Subsidiary
and/or any such Non-Employee Director, any beneficiary thereof or any other
person.

       

       

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

      
 

                            15.3           Payments
to a Trust.  The Board is
authorized to cause to be established a trust agreement or several trust
agreements or similar arrangements from which the Board may make payments of
amounts due or to become due to any Non-Employee Directors under the
Plan.

      

                            15.4           Other
Company Benefit and Compensation Programs.  Awards under the
Plan may be made in addition to, in combination with, or as alternatives to,
grants, awards or payments under any other plans or arrangements of the Company
or its Subsidiaries.  The existence of the Plan notwithstanding, the
Company or any Subsidiary may adopt such other compensation plans or programs
and additional compensation arrangements as it deems necessary to attract,
retain and motivate directors.

      

                            15.5           Listing,
Registration and Other Legal Compliance.  No Awards or
shares of the Common Stock shall be required to be issued or granted under the
Plan unless legal counsel for the Company shall be satisfied that such issuance
or grant will be in compliance with all applicable federal and state securities
laws and regulations and any other applicable laws or
regulations.  The Board may require, as a condition of any payment or
share issuance, that certain agreements, undertakings, representations,
certificates, and/or information, as the Board may deem necessary or advisable,
be executed or provided to the Company to assure compliance with all such
applicable laws or regulations.  Certificates for shares of the
Restricted Shares and/or Common Stock delivered under the Plan may be subject to
such stock-transfer orders and such other restrictions as the Board may deem
advisable under the rules, regulations, or other requirements of the Securities
and Exchange Commission, any stock exchange upon which the Common Stock is then
listed, and any applicable federal or state securities law.  In
addition, if, at any time specified herein (or in any Award Agreement or
otherwise) for (a) the making of any Award, or the making of any determination,
(b) the issuance or other distribution of Restricted Shares and/or Common Stock,
or (c) the payment of amounts to or through a Non-Employee Director with respect
to any Award, any law, rule, regulation or other requirement of any governmental
authority or agency shall require either the Company, any Subsidiary or any
Non-Employee Director (or any estate, designated beneficiary or other legal
representative thereof) to take any action in connection with any such
determination, any such shares to be issued or distributed, any such payment, or
the making of any such determination, as the case may be, shall be deferred
until such required action is taken.  Transactions under the Plan are
intended to comply with all applicable conditions of SEC Rule
16b-3.  To the extent any provision of the Plan or any action by the
administrators of the Plan fails to so comply with such rule, it shall be deemed
null and void, to the extent permitted by law and deemed advisable by the
Board.

      

                            15.6           Award
Agreements.  Each Non-Employee
Director receiving an Award under the Plan shall enter into an Award Agreement
with the Company in a form specified by the Board.  Each such
Non-Employee Director shall agree to the restrictions, terms and conditions of
the Award set forth therein and in the Plan.

       

       

       

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      
 

                            15.7           Designation
of Beneficiary.  Each Non-Employee
Director to whom an Award has been made under the Plan may designate a
beneficiary or beneficiaries to exercise any option or to receive any payment
which under the terms of the Plan and the relevant Award Agreement may become
exercisable or payable on or after the Non-Employee Director’s
death.  At any time, and from time to time, any such designation may
be changed or cancelled by the Non-Employee Director without the consent of any
such beneficiary.  Any such designation, change or cancellation must
be on a form provided for that purpose by the Board and shall not be effective
until received by the Board.  If no beneficiary has been designated by
a deceased Non-Employee Director, or if the designated beneficiaries have
predeceased the Non-Employee Director, the beneficiary shall be the Non-Employee
Director’s estate.  If the Non-Employee Director designates more than
one beneficiary, any payments under the Plan to such beneficiaries shall be made
in equal shares unless the Non-Employee Director has expressly designated
otherwise, in which case the payments shall be made in the shares designated by
the Non-Employee Director.

      

                            15.8           Governing
Law.  The Plan and all
actions taken thereunder shall be governed by and construed in accordance with
the laws of the State of New York, without reference to the principles of
conflict of laws thereof.  Any titles and headings herein are for
reference purposes only, and shall in no way limit, define or otherwise affect
the meaning, construction or interpretation of any provisions of the
Plan.

      

                            15.9           Effective
Date.  The Plan as
amended and restated shall be effective upon its approval by the Board and by
the Company’s shareholders.

       

       

       

       

       

       

       

       

       

       

       

       

       

      

      
        
           

        

        
          15ex102.htm

     

     

    
      

      

    

                                                                                                            Exhibit
10.2

     

    

     

    BROADPOINT
GLEACHER SECURITIES GROUP, INC.

     

    2007
INCENTIVE COMPENSATION PLAN

    (As
Amended and Restated Through June 16, 2009)

     

     

    
      	
              1.  

            	
              Purpose
      of the Plan

            

    

     

    The
purpose of this 2007 Incentive Compensation Plan (the “Plan”) is to advance the
interests of the Broadpoint Gleacher Securities Group, Inc., a New York
corporation (the “Company”), and its shareholders by providing a means (a) to
attract, retain, and reward officers, other employees, and persons who provide
services to the Company and its subsidiaries, (b) to link compensation to
measures of the Company’s performance in order to provide additional incentives,
including stock-based incentives and cash-based annual incentives, to such
persons for the creation of shareholder value, and (c) to enable such persons to
acquire or increase a proprietary interest in the Company in order to promote a
closer identity of interests between such persons and the Company’s
shareholders.  The Plan is intended to qualify certain compensation
awarded under the Plan as “performance-based” compensation under Code Section
162(m) to the extent deemed appropriate by the Committee which administers the
Plan.

     

    
      	
              2.  

            	
              Definitions

            

    

     

    The
definitions of awards under the Plan, including Options, SARs, Restricted Stock,
Deferred Stock, Stock granted as a bonus or in lieu of other awards, and Other
Stock-Based Awards, are set forth in Section 6, and the definition of
Performance Awards, including Annual Incentive Awards, is set forth in Section
8.  Such awards, together with any other right or interest granted to
a Participant under the Plan, are termed “Awards.” In addition to such terms and
the terms defined in Section 1, the following terms shall be defined as set
forth below:

     

    2.1    “Annual
Incentive Award” means a conditional right granted to a Participant under
Section 8.3 to receive a cash payment, Shares or other Awards based on
performance during all or part of a specified fiscal year.

     

    2.2    “Beneficiary”
means the person(s) or trust(s) which have been designated by a Participant in
his or her most recent written beneficiary designation filed with the Committee
to receive the benefits specified under the Plan upon such Participant’s
death.  If, upon a Participant’s death, there is no designated
Beneficiary or surviving designated Beneficiary, then the term Beneficiary means
the person(s) or trust(s) entitled by will or the laws of descent and
distribution to receive such benefits.

     

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

     

    2.4    “Cause,”
unless defined otherwise in the terms and conditions of a Participant’s Award,
means (i) the Participant’s conviction of, or plea of guilty or “no contest” to,
any felony; (ii) Participant’s conviction of, or plea of guilty or “no contest”
to, a violation of criminal law involving the Company and its business; (iii)
the Participant’s commission of an act of fraud or theft, or material dishonesty
in connection with his performance of duties to Company and its affiliates; or
(iv) the Participant’s willful refusal or gross neglect by the Participant to
perform the duties reasonably assigned to him and consistent with his position
with Company and its affiliates or otherwise to comply with the material terms
of any employment agreement between the Company or any of its affiliates and the
Participant, which refusal or gross neglect continues for more than fifteen (15)
days after the Participant receives written notice thereof from the Company
providing reasonable detail of the asserted refusal or gross neglect (and which
is not due to a physical or mental impairment).

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    2.5    “Code”
means the Internal Revenue Code of 1986, as amended, including regulations
thereunder and successor provisions and regulations thereto.

     

    2.6    “Committee”
means the Compensation Committee of the Board, and the term “Committee” shall
refer to the full Board in any case in which it is performing any function of
the Committee under the Plan.  A member of the Committee is not
required by the terms of the Plan to be a Qualified Member at the time of
appointment or during his or her term of service on the Committee.

     

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

     

    2.8    “Covered
Employee” has the meaning as defined in Section 8.5 of the Plan.

     

    2.9    “Effective
Date” means the date on which the Plan takes effect, as set forth in Section
9.14 of the Plan.

     

    2.10    “Fair
Market Value,” means, with respect to Shares, Awards, or other property, the
fair market value of such Shares, Awards, or other property determined by such
reasonable methods or procedures as shall be established from time to time by
the Committee in compliance with the requirements of Section 409A of the
Code.  At any time while Shares are traded on the NASDAQ Global
Market, the Fair Market Value of a Share as of any given date means the closing
sales price of a Share in composite trading of NASDAQ Global Market-listed
securities for that date or, if no sale occurred on that date, on the latest
preceding day on which a sale occurred, as reported by a reliable reporting
service.

     

    2.11    “Participant”
means an individual who has been granted an Award under the Plan, for so long as
the Company has any obligation under the Plan with respect to such Award or such
Award remains subject to any restriction under the Plan.

     

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

     

    2.13    “Preexisting
Plans” mean the Company’s 1989 Stock Incentive Plan, 1999 Long-Term Incentive
Plan, 2001 Long-Term Incentive Plan and Restricted Stock Inducement Plan for
Descap Employees, each as amended.

     

    2.14    “Qualified
Member” means a member of the Committee who is a “Non-Employee Director” within
the meaning of Rule 16b-3(b)(3) under the Securities Exchange Act of 1934 and an
“outside director” within the meaning of Regulation 1.162-27 under Code Section
162(m).

     

    2.15    “Retirement,”
unless defined otherwise in the terms and conditions of a Participant’s Award,
means a Participant’s termination of employment with the Company and all of its
affiliates for reasons other than Cause on or after (i) having completed at
least five years of service and (ii) reaching any age, that, when added to
service with the Company and its affiliates (in each case, expressed as
completed years and completed months), equals at least 60.

     

    2.16    “Shares”
means shares of common stock, par value $0.01 per share, of the Company and such
other securities as may be substituted or resubstituted for Shares pursuant to
Section 5.3.

     

    
      	
                             
      3.  

            	
              Administration

            

    

     

    3.1    Authority of the
Committee.  The Plan shall be administered by the
Committee.  The Committee shall have full and final authority to take
the following actions, in each case subject to and consistent with the
provisions of the Plan:

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (a)    to select
persons to whom Awards may be granted;

     

    (b)    to
determine the type or types of Awards to be granted to each
Participant;

     

    (c)    to
determine the number of Awards to be granted, the number of Shares to which an
Award will relate, the cash amount payable in settlement of an Annual Incentive
Award and the performance conditions applicable thereto, all other terms and
conditions of any Award granted under the Plan (including, but not limited to,
any exercise price, grant price, or purchase price, any restriction or
condition, any schedule or performance conditions for the lapse of restrictions
or conditions relating to transferability, forfeiture, exercisability, or
settlement of an Award, and accelerations or modifications thereof, based in
each case on such considerations as the Committee shall determine), and all
other matters to be determined in connection with an Award;

     

    (d)    to
determine whether, to what extent, and under what circumstances an Award may be
settled, or the exercise price of an Award may be paid, in cash, Shares, other
Awards, or other property, or an Award may be canceled, forfeited, or
surrendered;

     

    (e)    to
determine whether, to what extent, and under what circumstances cash, Shares,
other Awards, or other property payable with respect to an Award will be
deferred either automatically, at the election of the Committee, or at the
election of the Participant;

     

    (f)    to
prescribe the form of each Award agreement, which need not be identical for each
Participant;

     

    (g)   to adopt,
amend, suspend, and rescind such rules and regulations and appoint such agents
as the Committee may deem necessary or advisable to administer the
Plan;

     

    (h)   to
correct any defect or supply any omission or reconcile any inconsistency in the
Plan and to construe and interpret the Plan and any Award, rules and
regulations, Award agreement, or other instrument hereunder; and

     

    (i)    to make
all other decisions and determinations as may be required under the terms of the
Plan or as the Committee may deem necessary or advisable for the administration
of the Plan.

     

    3.2    Manner of Exercise of Committee
Authority.  Any action of the Committee with respect to the
Plan shall be final, conclusive, and binding on all persons, including the
Company, subsidiaries of the Company, Participants, any person claiming any
rights under the Plan from or through any Participant, and
shareholders.  The express grant of any specific power to the
Committee, and the taking of any action by the Committee, shall not be construed
as limiting any power or authority of the Committee.  At any time that
a member of the Committee is not a Qualified Member, (i) any action of the
Committee relating to an Award intended by the Committee to qualify as
“performance-based compensation” within the meaning of Code Section 162(m) and
regulations thereunder may be taken by a subcommittee, designated by the
Committee or the Board, composed solely of two or more Qualified Members, and
(ii) any action relating to an Award granted or to be granted to a Participant
who is then subject to Section 16 of the Securities Exchange Act of 1934 in
respect of the Company may be taken either by such a subcommittee or by the
Committee but with each such member who is not a Qualified Member abstaining or
recusing himself or herself from such action, provided that, upon such
abstention or recusal, the Committee remains composed of two or more Qualified
Members.  Such action, authorized by such a subcommittee or by the
Committee upon the abstention or recusal of such non-Qualified Member(s), shall
be the action of the Committee for purposes of the Plan.  The
Committee may delegate to officers or managers of the Company or any subsidiary
of the Company the authority, subject to such terms as the Committee shall
determine, to perform functions designated by the Committee, to the extent that
such delegation is permitted under applicable laws.  Other provisions
of the Plan notwithstanding, the Board may perform any function of the Committee
under the Plan, in order to ensure that transactions under the Plan are exempt
under Rule 16b-3 or for any other reason; provided, however , that authority
specifically reserved to the Board under the terms of the Plan, the Company’s
Certificate of Incorporation or By-Laws, or applicable law shall be exercised by
the Board and not by the Committee.

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    3.3    Limitation of
Liability.  Each member of the Committee shall be entitled to,
in good faith, rely or act upon any report or other information furnished to him
by any officer or other employee of the Company or any subsidiary, the Company’s
independent certified public accountants, or any executive compensation
consultant, legal counsel, or other professional retained by the Company to
assist in the administration of the Plan.  No member of the Committee,
nor any officer or employee of the Company acting on behalf of the Committee,
shall be personally liable for any action, determination, or interpretation
taken or made in good faith with respect to the Plan, and all members of the
Committee and any officer or employee of the Company acting on behalf of the
Committee or members thereof shall, to the extent permitted by law, be fully
indemnified and protected by the Company with respect to any such action,
determination, or interpretation.

     

    
      	
              4.  

            	
              Eligibility

            

    

     

    Persons
who are eligible to be granted Awards under the Plan include (i) any executive
officer and other officer or employee of the Company or any subsidiary,
including any such person who may also be a director of the Company, (ii) any
other person who provides substantial personal services to the Company or any
subsidiary not solely in the capacity as a director, and (iii) any person who
has agreed to become an employee of the Company or a subsidiary provided that no such person
may receive any payment or exercise any right relating to an Award until such
person has commenced employment.

     

    
      	
              5.  

            	
              Limitation
      on Shares Available for Awards; Per-Person Limitations;
      Adjustments

            

    

     

    5.1    Aggregate Number of Shares Available
for Awards.

     

    (a)    Evergreen Share
Reservation.  Awards relating to Shares may be granted if, at
the time of grant of each Award, the aggregate number of Shares subject to
outstanding Awards and outstanding awards under the Preexisting Plans plus the
number of Shares subject to the Award being granted do not exceed the sum of (x)
15,675,000 Shares (subject to adjustment as provided in Section 5.3) plus (y)
25% of the number of Shares issued and outstanding immediately prior to the
grant of such Award.  For purposes of this Section 5.1(a), an Option
or SAR is “outstanding” until it is exercised and any other Award is
“outstanding” in the calendar year in which it is granted and for so long
thereafter as it remains subject to any vesting condition requiring continued
employment, and options and other awards under each of the Preexisting Plans are
treated as “outstanding” in accordance with the terms of each such Preexisting
Plan.  The foregoing notwithstanding, the maximum number of shares
that may be subject to ISOs granted under the Plan shall be 2.5 million, subject
to adjustment as provided in Section 5.3.

     

    (b)    Type of Shares
Deliverable.  The Shares delivered in connection with Awards
may consist, in whole or in part, of authorized and unissued Shares, treasury
Shares or Shares acquired in the market for the account of a
Participant.

     

    5.2    Annual Per-Person
Limitations.  In each calendar year during any part of which
the Plan is in effect, a Participant may be granted Awards under Section 6
(including Performance Awards under Section 8 based on Awards authorized under
Section 6) relating to up to his or her Annual Limit, which consists of an
Annual Share Award Limit and an Annual Performance Award Limit.  A
Participant’s Annual Share Award Limit, in any year during any part of which the
Participant is then eligible under the Plan, shall equal two million Shares plus
the amount of the Participant’s unused Annual Share Award Limit relating to the
same type of Award as of the close of the previous year, subject to adjustment
as provided in Section 5.3.  With respect to Annual Incentive Awards
pursuant to Section 8, a Participant’s Annual Incentive Award limit relating to
a given fiscal year shall be (i), in the case of the Chief Executive Officer or
any other executive officer principally having Company-wide responsibilities,
the greater of 25% of Company profits after taxes but before payment of bonuses
to all employees or 10% of Company revenue, and (ii), in the case of an
executive officer or other person principally having responsibilities for one or
more specific business units, the greatest of 30% of the net income of such
business unit(s), 10% of the revenues of such business unit(s), or 25% of the
economic value created (“EVC”, as defined in Section 8.2(b) below) of such
business unit(s).  With respect to Performance Awards pursuant to
Section 8, other than Annual Incentive Awards, which Performance Awards are
payable solely in cash, a Participant may not be granted Awards authorizing the
earning during any calendar year of an amount that exceeds the Participant’s
Annual Performance Award Limit, which for this purpose shall equal $3.0 million
plus the amount of the Participant’s unused cash Annual Performance Award Limit
as of the close of the previous year.  For this purpose, (i) “earning”
means satisfying performance conditions so that an amount becomes payable,
without regard to whether it is to be paid currently or on a deferred basis or
continues to be subject to any service requirement or other non-performance
condition, and (ii) a Participant’s Annual Performance Award Limit is used to
the extent a cash amount or number of shares may be potentially earned or paid
under an Award, regardless of whether such amount or shares are in fact earned
or paid.  The per-person limitations on Awards under Section 6, Annual
Incentive Awards, and other Performance Awards are each separate from one
another.

     

     

     

    
      
        
        

      

      
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    5.3    Adjustments.  In
the event of any change in the outstanding Shares after the Effective Date by
reason of any Share dividend or split, reorganization, recapitalization, merger,
consolidation, spin-off, combination or exchange of Shares, repurchase,
liquidation, dissolution or other corporate exchange, any large, special and
non-recurring dividend or distribution to shareholders, or other similar
corporate transaction, the Committee may make such substitution or adjustment,
if any, as it deems to be equitable and in order to preserve, without enlarging,
the rights of Participants, as to (i) the number and kind of Shares which may be
delivered in connection with Awards granted thereafter, including the number of
shares reserved for incentive stock options under Section 5.1(a), (ii) the
number and kind of Shares by which annual per-person Award limitations are
measured under Section 5.2, (iii) the number and kind of Shares subject to or
deliverable in respect of outstanding Awards, and (iv) the exercise price, grant
price or purchase price relating to any Award and/or make provision for payment
of cash, other Awards or other property in respect of any outstanding
Award.  In addition, the Committee is authorized to make adjustments
in the terms and conditions of, and the criteria included in, Awards (including
Performance Awards, Annual Incentive Awards, and the performance goals relating
thereto) in recognition of unusual or nonrecurring events (including events
described in the preceding sentence, as well as acquisitions and dispositions of
businesses and assets) affecting the Company, any subsidiary or any business
unit, or the financial statements of the Company or any subsidiary, or in
response to changes in applicable laws, regulations, accounting principles, tax
rates and regulations or business conditions or in view of the Committee’s
assessment of the business strategy of the Company, any subsidiary or business
unit thereof, performance of comparable organizations, economic and business
conditions, personal performance of a Participant, and any other circumstances
deemed relevant; provided that no such
adjustment shall be authorized or made if and to the extent that such authority
or the making of such adjustment would cause Options, SARs, Performance Awards
granted under Section 8.2 hereof, or Annual Incentive Awards granted under
Section 8.3 hereof to Participants designated by the Committee as Covered
Employees and intended to qualify as “performance-based compensation” under Code
Section 162(m) and regulations thereunder otherwise to fail to qualify as
“performance-based compensation” under Code Section 162(m) and regulations
thereunder.

     

     

     

     

    
      
        
        

      

      
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              6.  

            	
              Specific
      Terms of Awards

            

    

     

    6.1    General.  Awards
may be granted on the terms and conditions set forth in this Section
6.  In addition, the Committee may impose on any Award, at the date of
grant or thereafter (subject to Section 9.5), such additional terms and
conditions, not inconsistent with the provisions of the Plan, as the Committee
shall determine, including terms requiring forfeiture of Awards in the event of
termination of employment or service by the Participant or upon the occurrence
of other events (including, without limitation, the existence of
Cause).  The Committee may require payment of consideration in
connection with any Award, including for purposes of complying with requirements
of applicable state corporation law.

     

    6.2    Options.  The
Committee is authorized to grant options to purchase Shares (“Options”) to
Participants on the following terms and conditions:

     

    (a)    Exercise
Price.  The exercise price per Share purchasable under an
Option shall be determined by the Committee; provided, however, that such exercise
price shall be not less than the Fair Market Value of a share on the date of
grant of such Option.

     

    (b)    Time and Method of
Exercise.  The Committee shall determine the time or times at
which an Option may be exercised in whole or in part, the methods by which such
exercise price may be paid or deemed to be paid, the form of such payment,
including cash, Shares, other Awards or awards granted under other Company
plans, or other property (including notes or other contractual obligations of
Participants to make payment on a deferred basis, or through broker-assisted
“cashless exercise” arrangements, to the extent permitted by applicable law),
and the methods by which Shares will be delivered or deemed to be delivered to
Participants.

     

    (c)    Incentive Stock
Options.  The terms of any incentive stock option (“ISO”)
granted under the Plan shall comply in all respects with the provisions of
Section 422 of the Code, including but not limited to the requirement that no
ISO shall be granted more than ten years after the Effective
Date.  Anything in the Plan to the contrary notwithstanding, no term
of the Plan relating to ISOs shall be interpreted, amended, or altered, nor
shall any discretion or authority granted under the Plan be exercised, so as to
disqualify either the Plan or any ISO under Section 422 of the Code, unless the
Participant has first requested such disqualification.

     

    6.3    Stock Appreciation
Rights.  The Committee is authorized to grant stock
appreciation rights (“SARs”) to Participants on the following terms and
conditions:

     

    (a)    Right to
Payment.  An SAR shall confer on the Participant to whom it is
granted a right to receive, upon exercise thereof, the excess of (a) the Fair
Market Value of one Share on the date of exercise, over (B) the grant price of
the SAR as determined by the Committee as of the date of grant of the SAR, which
shall be not less than the Fair Market Value of one Share on the date of
grant.

     

    (b)    Other Terms.  The
Committee shall determine the time or times at which an SAR may be exercised in
whole or in part, the method of exercise, method of settlement, whether cash or
Shares shall be payable to the Participant upon exercise, the method by which
Shares will be delivered or deemed to be delivered to Participants, whether or
not an SAR shall be in tandem with any other Award, and any other terms and
conditions of an SAR.

     

    6.4    Restricted
Stock.  The Committee is authorized to grant Awards, in the
form of Shares issued at or shortly after grant of the Award subject to
restrictions (“Restricted Stock”), to Participants on the following terms and
conditions:

     

     

     

    
      
        
        

      

      
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    (a)    Grant and
Restrictions.  Restricted Stock shall be subject to such
restrictions on transferability and other restrictions, if any, as the Committee
may impose, which restrictions may lapse separately or in combination at such
times, under such circumstances, in such installments, or otherwise as the
Committee may determine.  Except to the extent restricted under the
terms of the Plan and any Award agreement relating to the Restricted Stock, a
Participant granted Restricted Stock shall have all of the rights of a
shareholder including the right to vote Restricted Stock or the right to receive
dividends thereon.

     

    (b)    Forfeiture.  Except
as otherwise determined by the Committee, upon termination of employment or
service during the applicable restriction period, Restricted Stock that is at
that time subject to restrictions shall be forfeited and reacquired by the
Company; provided,
however , that the
Committee may provide, by rule or regulation or in any Award agreement, or may
determine in any individual case, that restrictions or forfeiture conditions
relating to Restricted Stock will lapse in whole or in part in the event of
terminations resulting from specified causes (including, without limitation,
Retirement or termination by the Company without Cause), provided that the payment or
settlement of any Award subject to Section 409A of the Code may be accelerated
only to the extent, and only upon the occurrence of events or causes, permitted
under such Section.

     

    (c)    Certificates for
Shares.  Restricted Stock granted under the Plan may be
evidenced in such manner as the Committee shall determine.  If
certificates representing Restricted Stock are registered in the name of the
Participant, such certificates shall bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to such Restricted Stock, the
Company shall retain physical possession of the certificate, and the Participant
shall have delivered a stock power to the Company, endorsed in blank, relating
to the Restricted Stock.

     

    (d)    Dividends and
Distributions.  As a condition to the grant of an Award of
Restricted Stock, the Committee may require that any cash dividends paid on a
share of Restricted Stock be automatically reinvested in additional shares of
Restricted Stock or applied to the purchase of additional Awards under the
Plan.  The dates and terms upon which such reinvestment or purchases
occur shall be within the discretion of the Committee.  Unless
otherwise determined by the Committee, and subject to applicable law, Shares
distributed in connection with a stock split or stock dividend, and other
property distributed as a dividend, shall be subject to restrictions and a risk
of forfeiture to the same extent as the Restricted Stock with respect to which
such Shares or other property has been distributed.

     

    6.5    Deferred
Stock.  The Committee is authorized to grant Awards in the form
of Shares to be delivered at a specified future date (“Deferred Stock”) to
Participants, subject to the following terms and conditions:

     

    (a)    Award and
Restrictions.  Issuance of Shares will occur upon expiration of
the deferral period specified for an Award of Deferred Stock by the Committee
(or, if permitted by the Committee, as elected by the Participant either (i)
before the year in which such Award is made, or (ii) at least one year before
such deferral period otherwise would have expired, provided that such election
shall not be effective for one year and must extend such deferral period at
least five years).  In addition, Deferred Stock shall be subject to
such restrictions as the Committee may impose, if any, which restrictions may
lapse at the expiration of the deferral period or at earlier specified times,
separately or in combination, under such circumstances, in such installments, or
otherwise as the Committee may determine.

     

    (b)    Forfeiture.  Except
as otherwise determined by the Committee, upon termination of employment or
service during the applicable deferral period or portion thereof to which
forfeiture conditions apply (as provided in the Award agreement evidencing the
Deferred Stock), all Deferred Stock that is at that time subject to such risk of
forfeiture shall be forfeited; provided, however, that the Committee
may provide, by rule or regulation or in any Award agreement, or may determine
in any individual case, in each case subject to applicable law, that
restrictions or forfeiture conditions relating to Deferred Stock will lapse in
whole or in part in the event of terminations upon specified causes or events
(including, without limitation, Retirement or termination by the Company without
Cause), provided that
the lapse of restrictions or conditions relating to any Award subject to Section
409A of the Code may be accelerated only to the extent, and only upon the
occurrence of events or causes, permitted under such Section.

     

     

    
      
        
        

      

      
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    Deferred
Stock which is subject to a risk of forfeiture may be denominated as “restricted
stock units.”

     

    (c)    Dividend
Equivalents.  The Committee may provide that payments in the
form of dividend equivalents will be credited in respect of Deferred Stock,
which amounts shall be paid or distributed upon expiration of the deferral
period specified for such Award of Deferred Stock.

     

    6.6    Bonus Shares and Awards in Lieu of
Cash Obligations.  The Committee is authorized to grant Shares
as a bonus, or to grant Shares or other Awards in lieu of Company obligations to
pay cash or grant other awards under other plans or compensatory
arrangements.  Shares or Awards granted hereunder shall be subject to
such other terms as shall be determined by the Committee.

     

    6.7    Other Stock-Based
Awards.  The Committee is authorized, subject to limitations
under applicable law, to grant to Participants such other Awards that may be
denominated or payable in, valued in whole or in part by reference to, or
otherwise based on, or related to, Shares and factors that may influence the
value of Shares, as deemed by the Committee to be consistent with the purposes
of the Plan, including convertible or exchangeable debt securities, other rights
convertible or exchangeable into Shares, purchase rights for Shares, Awards with
value and payment contingent upon performance of the Company or any other
factors designated by the Committee, and Awards valued by reference to the book
value of Shares or the value of securities of or the performance of specified
subsidiaries.  The Committee shall determine the terms and conditions
of such Awards.  Shares issued pursuant to an Award in the nature of a
purchase right granted under this Section 6.7 shall be purchased for such
consideration, paid for at such times, by such methods, and in such forms,
including cash, Shares, other Awards, or other property, as the Committee shall
determine.  Cash awards, as an element of or supplement to any other
Award under the Plan, may be granted pursuant to this Section 6.7.

    

     

    
      	
              7.  

            	
              Certain
      Provisions Applicable to Awards

            

    

     

    7.1    Deferral of Cash Compensation into
Awards.  The Committee is authorized to grant Awards in lieu of
cash compensation or upon the deferral of cash compensation payable by the
Company or any subsidiary, including cash amounts payable under other
plans.  In such case, the Committee shall determine the value of the
Awards to be granted in lieu of or upon deferral of such cash compensation, and
may provide for a discount in such valuation in order to promote the purposes of
the Plan.

     

    7.2    Term of
Awards.  The term of each Award shall be for such period as may
be determined by the Committee; provided, however, that in no event
shall the term of any ISO or an SAR granted in tandem therewith exceed a period
of ten years from the date of its grant (or such shorter period as may be
applicable under Section 422 of the Code).

     

    7.3    Form and Timing of Payment under
Awards; Deferrals.  Subject to the terms of the Plan and any
applicable Award agreement, payments to be made by the Company or a subsidiary
upon the exercise of an Option or other Award or settlement of an Award may be
made in such forms as the Committee shall determine, including cash, Shares,
other Awards, or other property, and may be made in a single payment or
transfer, in installments, or on a deferred basis.  The vesting of any
Award may be accelerated, in the discretion of the Committee or upon the
occurrence of one or more specified events or causes (including, without
limitation, Retirement or termination by the Company without
Cause).  The settlement of any Award may be accelerated, and cash paid
in lieu of Shares in connection with such settlement, in the discretion of the
Committee or upon the occurrence of one or more specified events or causes,
provided that the
payment or settlement of any Award subject to Section 409A of the Code may be
accelerated only to the extent, and only upon the occurrence of events or
causes, permitted under such Section.  The foregoing notwithstanding,
no Award specified as settleable in Shares may be settled otherwise than by
delivery of Shares if the Award agreement does not specify such alternative form
of settlement and the authorization of alternative forms of settlement would
preclude fixed accounting for the compensation expense relating to such Award
under accounting rules then applicable to the Company prior to the determination
or event which causes settlement to be in a form other than
Shares.  Installment or deferred payments may be required by the
Committee (subject to Section 9.5 of the Plan, including the consent provisions
thereof in the case of any deferral of an outstanding Award not provided for in
the original Award agreement) or permitted at the election of the Participant on
terms and conditions established by the Committee.  Payments may
include provisions for the payment or crediting of reasonable interest on
installment or deferred payments or the grant or crediting of dividend
equivalents or other amounts in respect of installment or deferred payments
denominated in Shares.

     

     

    
      
        
        

      

      
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    7.4    Cancellation and Rescission of
Awards.  Unless the Award agreement specifies otherwise, the
Committee may cancel any unexpired, unpaid, or deferred Awards at any time, and,
unless otherwise determined by the Committee, the Company shall have the
additional rights set forth in subsection (d) below, if the Participant is not
in compliance with all applicable material provisions of the Award agreement and
the Plan, including the following conditions:

     

    (a)    A
Participant shall not render services for any organization or engage directly or
indirectly in any business which, in the judgment of the Chief Executive Officer
of the Company or other senior executive officer designated by the Committee, is
or becomes competitive with the Company.  For Participants whose
employment has terminated, the judgment of the Chief Executive Officer or other
senior officer designated by the Committee shall be based on the Participant’s
post-employment responsibilities and position with the other organization or
business, the extent of past, current and potential competition or conflict
between the Company and the other organization or business, the effect on the
Company’s shareholders, customers, suppliers and competitors of the Participant
assuming the post-employment responsibilities and such other considerations as
are deemed relevant given the applicable facts and circumstances.  A
Participant who has terminated employment shall be free, however, to purchase as
an investment or otherwise, stock or other securities of such organization or
business so long as they are listed upon a recognized securities exchange or
traded over-the-counter, and such investment does not represent a greater than
five percent equity interest in the organization or business.

     

    (b)    A
Participant shall not, without prior written authorization from the Company,
disclose to anyone outside the Company or use in other than the Company’s
business any confidential information or material relating to the business of
the Company which is acquired by the Participant either during or after
employment with the Company.

     

    (c)    A
Participant shall disclose promptly and assign to the Company all right, title,
and interest in any invention or idea, patentable or not, made or conceived by
the Participant during employment by the Company, relating in any manner to the
actual or anticipated business, research, or development work of the Company and
shall do anything reasonably necessary to enable the Company to secure a patent
where appropriate in the United States and in foreign countries.

     

     

     

    
      
        
        

      

      
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    (d)    Upon
exercise, settlement, payment, or delivery pursuant to an Award, the Participant
shall certify on a form acceptable to the Committee that he or she is in
compliance with the terms and conditions of this Section 7.4.  Failure
to comply with the provisions of this Section 7.4 prior to, or during the six
months after, any exercise, payment or delivery pursuant to an Award shall cause
such exercise, payment or delivery to be rescinded.  The Company shall
notify the Participant in writing of any such rescission within two years after
such exercise, payment, or delivery.  Within ten days after receiving
such a notice from the Company, the Participant shall pay to the Company the
amount of any gain realized or payment received as a result of the rescinded
exercise, payment, or delivery pursuant to an Award.  Such payment
shall be made either in cash or by returning to the Company the number of Shares
that the Participant received in connection with the rescinded exercise,
payment, or delivery, in which case the Company shall promptly repay the lesser
of the exercise price or the then-Fair Market Value of the Shares
returned.

     

    The
Committee may modify the conditions imposed under this Section 7.4 with respect
to any Award.  If the terms of this Section 7.4 would require that the
accounting expense for an Award that otherwise could be measured at the date of
grant or other measurement date cannot be so measured until a later time, but
such measurement would be permissible if the forfeiture of the Award were in
connection with a termination of the Participant’s employment, then the
cancellation of the Award will occur at the later of the time of the Committee’s
determination or the Participant’s termination of employment.

     

    7.5    Stand-Alone, Additional, Tandem, and
Substitute Awards.  Awards granted under the Plan may, in the
discretion of the Committee, be granted either alone or in addition to, in
tandem with, or in substitution or exchange for, any other Award or any award
granted under another plan of the Company, any subsidiary, or any business
entity to be acquired by the Company or a subsidiary, any other right of a
Participant to receive payment from the Company or any
subsidiary.  Such additional, tandem, and substituted or exchanged
Awards may be granted at any time.  Subject to Section 11.5, the
Committee may determine that, in granting a new Award, the intrinsic value of
any surrendered Award or award may be applied to reduce the exercise price of
any Option, grant price of any SAR, or purchase price of any other
Award.

     

    
      	
              8.  

            	
              Performance
      and Annual Incentive Awards

            

    

     

    8.1    Performance
Conditions.  The right of a Participant to exercise or receive
a grant or settlement of any Award, and the timing thereof, may be subject to
such performance conditions as may be specified by the Committee.  The
Committee may use such business criteria and measures of performance as it may
deem appropriate in establishing performance conditions, and may exercise its
discretion to reduce or increase the amounts payable under any Award subject to
performance conditions, except as limited under Sections 8.2 and 8.3 hereof in
the case of a Performance Award or Annual Incentive Award intended to qualify
under Code Section 162(m).

     

    8.2    Performance Awards Granted to
Designated Covered Employees.  If the Committee determines that
a Performance Award to be granted to an eligible person who is designated by the
Committee as likely to be a Covered Employee should qualify as
“performance-based compensation” for purposes of Code Section 162(m), the grant,
exercise, and/or settlement of such Performance Award shall be contingent upon
achievement of preestablished performance goals and other terms set forth in
this Section 8.2.

     

    (a)    Performance Goals
Generally.  The performance goals for such Performance Awards
shall consist of one or more business criteria and a targeted level or levels of
performance with respect to each such criteria, as specified by the Committee
consistent with this Section 8.2.  Performance goals shall be
objective and shall otherwise meet the requirements of Code Section 162(m) and
regulations thereunder (including Regulation 1.162-27 and successor regulations
thereto), including the requirement that the level or levels of performance
targeted by the Committee result in the achievement of performance goals being
“substantially uncertain.” The Committee may determine that such Performance
Awards shall be granted, exercised, and/or settled upon achievement of any one
performance goal or that two or more of the performance goals must be achieved
as a condition to grant, exercise, and/or settlement of such Performance
Awards.  Performance goals may differ for Performance Awards granted
to any one Participant or to different Participants.

     

     

    
      
        
        

      

      
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    (b)    Business
Criteria.  One or more of the following business criteria for
the Company, on a consolidated basis, and/or for specified subsidiaries,
divisions, or other business units of the Company (where the criteria are
applicable), shall be used by the Committee in establishing performance goals
for such Performance Awards: (1) earnings per share; (2) revenues; (3) cash
flow; (4) cash flow return on investment; (5) return on net assets, return on
assets, return on investment, return on capital, return on equity;
profitability; (6) economic value created (“EVC”. as defined below); (7)
operating margins or profit margins; (8) income or earnings before or after
taxes; pretax earnings; pretax earnings before interest, depreciation and
amortization; operating earnings; pretax operating earnings, before or after
interest expense and before or after incentives, service fees, and extraordinary
or special items; net income; (9) total shareholder return or stock price; (10)
book value per share; (11) expense management; improvements in capital
structure; working capital; costs; and (12) any of the above goals as compared
to the performance of a published or special index deemed applicable by the
Committee including, but not limited to, the Standard & Poor’s 500 Stock
Index or a group of comparator companies.  “EVC” means the amount by
which a business unit’s income exceeds the cost of the capital used by the
business unit during the performance period, as determined by the
Committee.  Income of a business unit may be before payment of
bonuses, capital charges, non-recurring or extraordinary income or expense, and
general and administrative expenses for the performance period, if so specified
by the Committee.  One or more of the foregoing business criteria
shall also be exclusively used in establishing performance goals for Annual
Incentive Awards granted to a Covered Employee under Section 8.3
hereof.

     

    (c)    Performance Period; Timing for
Establishing Performance Award Terms.  Achievement of
performance goals in respect of such Performance Awards shall be measured over a
performance period of up to ten years, as specified by the
Committee.  Performance goals, amounts payable upon achievement of
such goals, and other material terms of Performance Awards shall be established
by the Committee (i) while the performance outcome for that performance period
is substantially uncertain and (ii) no more than 90 days after the commencement
of the performance period to which the performance goal relates or, if less, the
number of days which is equal to 25 percent of the relevant performance
period.  In all cases, the maximum amount payable in respect of a
Performance Award to any Participant shall be subject to the limitation set
forth in Section 5.2 hereof.

     

    (d)    Performance Award
Pool.  The Committee may establish a Performance Award pool,
which shall be an unfunded pool, for purposes of measuring performance of the
Company in connection with Performance Awards.  The amount of such
Performance Award pool shall be based upon the achievement of a performance goal
or goals based on one or more of the business criteria set forth in Section
8.2(b) hereof during the given performance period, as specified by the Committee
in accordance with Section 8.2(c) hereof.  The Committee may specify
the amount of the Performance Award pool as a percentage of any of such business
criteria, a percentage thereof in excess of a threshold amount, or as another
amount which need not bear a strictly mathematical relationship to such business
criteria.  In such case, Performance Awards may be granted as rights
to payment of a specified portion of the Award pool; such grants shall be
subject to the requirements of Section 8.2(c).

     

    (e)    Settlement of Performance Awards;
Other Terms.  Settlement of such Performance Awards shall be in
cash, Shares, other Awards, or other property, in the discretion of the
Committee.  The Committee may, in its discretion, reduce the amount of
a settlement otherwise to be made in connection with such Performance Awards,
but may not exercise discretion to increase any such amount payable to a Covered
Employee in respect of a Performance Award subject to this Section
8.2.  The Committee shall specify the circumstances in which such
Performance Awards shall be paid or forfeited in the event of termination of
employment by the Participant prior to the end of a performance period or
settlement of Performance Awards, provided that the payment or settlement of any
Award subject to Section 409A of the Code may be accelerated only to the extent,
and only upon the occurrence of events or causes, permitted under such
Section.

     

     

     

    
      
        
        

      

      
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    8.3    Annual Incentive Awards Granted to
Designated Covered Employees.  If the Committee determines that
an Annual Incentive Award to be granted to an eligible person who is designated
by the Committee as likely to be a Covered Employee should qualify as
“performance-based compensation” for purposes of Code Section 162(m), the grant,
exercise, and/or settlement of such Annual Incentive Award shall be contingent
upon achievement of preestablished performance goals and other terms set forth
in this Section 8.3.

     

    (a)    Potential Annual Incentive
Awards.  Not later than the deadline specified in Section
8.2(c) above, the Committee shall determine the eligible persons who will
potentially receive Annual Incentive Awards, and the amounts potentially payable
thereunder, for that fiscal year, either out of an Annual Incentive Award pool
established by such date under Section 8.3(b) hereof or as individual Annual
Incentive Awards.  In the case of individual Annual Incentive Awards
intended to qualify under Code Section 162(m), the amount potentially payable
shall be based upon the achievement of a performance goal or goals based on one
or more of the business criteria set forth in Section 8.2(b) hereof in the given
performance year, as specified by the Committee; in other cases, such amount
shall be based on such criteria as shall be established by the
Committee.  In all cases, the maximum Annual Incentive Award of any
Participant shall be subject to the limitation set forth in Section 5.2
hereof.

     

    (b)    Annual Incentive Award
Pool.  The Committee may establish an Annual Incentive Award
pool, which shall be an unfunded pool, for purposes of measuring performance of
the Company in connection with Annual Incentive Awards.  The amount of
such Annual Incentive Award pool shall be based upon the achievement of a
performance goal or goals based on one or more of the business criteria set
forth in Section 8.2(b) hereof during the given performance period, as specified
by the Committee in accordance with Section 8.2(c) hereof.  The
Committee may specify the amount of the Annual Incentive Award pool as a
percentage of any of such business criteria, a percentage thereof in excess of a
threshold amount, or as another amount which need not bear a strictly
mathematical relationship to such business criteria.

     

    (c)    Payout of Annual Incentive
Awards.  After the end of each fiscal year, the Committee shall
determine the amount, if any, of the potential Annual Incentive Award payable to
each Participant eligible therefor and, if applicable, the amount of any Annual
Incentive Award pool.  The Committee may, in its discretion, determine
that the amount payable to any Participant as a final Annual Incentive Award
shall be increased or reduced from the amount of his or her potential Annual
Incentive Award, including a determination to make no final Award whatsoever,
but may not exercise discretion to increase any such amount in the case of an
Annual Incentive Award intended to qualify under Code Section
162(m).  The Committee shall specify the circumstances in which an
Annual Incentive Award shall be paid or forfeited in the event of termination of
employment by the Participant prior to the end of a fiscal year or prior to
settlement of such Annual Incentive Award, provided that the payment or
settlement of any Award subject to Section 409A of the Code may be accelerated
only to the extent, and only upon the occurrence of events or causes, permitted
under such Section.

     

     

     

    
      
        
        

      

      
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    8.4    Written
Determinations.  Determinations by the Committee as to the
establishment of performance goals, the amount potentially payable in respect of
Performance Awards and Annual Incentive Awards, the achievement of performance
goals relating to Performance Awards and Annual Incentive Awards, and the amount
of any final Performance Award and Annual Incentive Award shall be recorded in
writing, except that the Committee may determine that this requirement shall not
apply in the case of Performance Awards not intended to qualify under Section
162(m).  Specifically, the Committee shall certify in writing, in a
manner conforming to applicable regulations under Section 162(m), prior to
settlement of each such Award granted to a Covered Employee, that the
performance goals and other material terms of the Award upon which settlement of
the Award was conditioned have been satisfied.  The Committee may not
delegate any responsibility relating to such Performance Awards or Annual
Incentive Awards, and the Board shall not perform such functions at any time
that the Committee is composed solely of Qualified Members.

     

    8.5    Status of Section 8.2 and Section
8.3 Awards under Code Section 162(m).  It is the intent of the
Company that Performance Awards and Annual Incentive Awards under Sections 8.2
and 8.3 hereof granted to persons who are designated by the Committee as likely
to be Covered Employees within the meaning of Code Section 162(m) and
regulations thereunder (including Regulation 1.162-27 and successor regulations
thereto) shall, if so designated by the Committee, constitute “performance-based
compensation” within the meaning of Code Section 162(m) and regulations
thereunder.  Accordingly, the terms of Sections 8.2, 8.3, 8.4 and 8.5,
including the definitions of Covered Employee and other terms used therein,
shall be interpreted in a manner consistent with Code Section 162(m) and
regulations thereunder.  The foregoing notwithstanding, because the
Committee cannot determine with certainty whether a given Participant will be a
Covered Employee with respect to a fiscal year that has not yet been completed,
the term “Covered Employee” as used herein shall mean only a person designated
by the Committee, at the time of grant of a Performance Award or Annual
Incentive Award, as likely to be a Covered Employee with respect to a specified
fiscal year.  If any provision of the Plan as in effect on the date of
adoption of any agreements relating to Performance Awards or Annual Incentive
Awards that are designated as intended to comply with Code Section 162(m) does
not comply or is inconsistent with the requirements of Code Section 162(m) or
regulations thereunder, such provision shall be construed or deemed amended to
the extent necessary to conform to such requirements.

     

    
      	
              9.  

            	
              General
      Provisions

            

    

     

    9.1    Compliance with Laws and
Obligations.  The Company shall not be obligated to issue or
deliver Shares in connection with any Award or take any other action under the
Plan in a transaction subject to the registration requirements of the Securities
Act of 1933, as amended, or any other federal or state securities law, any
requirement under any listing agreement between the Company and any national
securities exchange or automated quotation system, or any other law, regulation,
or contractual obligation of the Company, until the Company is satisfied that
such laws, regulations, and other obligations of the Company have been complied
with in full.  Certificates representing Shares issued under the Plan
will be subject to such stop-transfer orders and other restrictions as may be
applicable under such laws, regulations, and other obligations of the Company,
including any requirement that a legend or legends be placed
thereon.

     

    9.2    Limitations on
Transferability.  Awards and other rights under the Plan will
not be transferable by a Participant except by will or the laws of descent and
distribution (or to a designated Beneficiary in the event of the Participant’s
death), and, if exercisable, shall be exercisable during the lifetime of a
Participant only by such Participant or his guardian or legal representative;
provided, however, that such Awards and
other rights (other than ISOs and SARs in tandem therewith) may be transferred
during the lifetime of the Participant, for purposes of the Participant’s estate
planning or other purposes consistent with the purposes of the Plan (as
determined by the Committee), and may be exercised by such transferees in
accordance with the terms of such Award, but only if and to the extent permitted
by the Committee.  Awards and other rights under the Plan may not be
pledged, mortgaged, hypothecated, or otherwise encumbered, and shall not be
subject to the claims of creditors.  A Beneficiary, transferee, or
other person claiming any rights under the Plan from or through any Participant
shall be subject to all terms and conditions of the Plan and any Award agreement
applicable to such Participant, except as otherwise determined by the Committee,
and to any additional terms and conditions deemed necessary or appropriate by
the Committee.

     

     

     

    
      
        
        

      

      
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    9.3    No Right to Continued Employment;
Leaves of Absence.  Neither the Plan, the grant of any Award,
nor any other action taken hereunder shall be construed as giving any employee,
consultant, director, or other person the right to be retained in the employ or
service of the Company or any of its subsidiaries, nor shall it interfere in any
way with the right of the Company or any of its subsidiaries to terminate any
person’s employment or service at any time.

     

    Unless
otherwise specified in the applicable Award agreement, an approved leave of
absence shall not be considered a termination of employment or service for
purposes of an Award under the Plan.

     

    9.4    Taxes.  The Company
and any subsidiary is authorized to withhold from any Award granted or to be
settled, any delivery of Shares in connection with an Award, any other payment
relating to an Award, or any payroll or other payment to a Participant amounts
of withholding and other taxes due or potentially payable in connection with any
transaction involving an Award, and to take such other action as the Committee
may deem advisable to enable the Company and Participants to satisfy obligations
for the payment of withholding taxes and other tax obligations relating to any
Award.  This authority shall include authority to withhold or receive
Shares or other property and to make cash payments in respect thereof in
satisfaction of a Participant’s tax obligations.

     

    9.5    Changes to the Plan and
Awards.  The Board may amend, suspend, discontinue, or
terminate the Plan or the Committee’s authority to grant Awards under the Plan
without the consent of shareholders or Participants, except that any amendment
shall be subject to the approval of the Company’s shareholders at or before the
next annual meeting of shareholders for which the record date is after the date
of such Board action if such shareholder approval is required by any federal or
state law or regulation or the rules of the NASDAQ Global Market, and the Board
may otherwise, in its discretion, determine to submit other such amendments to
shareholders for approval; provided, however , that, without the
consent of an affected Participant, no such action may materially impair the
rights of such Participant under any Award theretofore granted.  The
Committee may amend, suspend, discontinue, or terminate any Award theretofore
granted and any Award agreement relating thereto; provided, however, that no such
amendment may provide for Award terms that the Plan would not then permit for a
newly granted Award; and provided further, that,
without the consent of an affected Participant, no such action may materially
impair the rights of such Participant under such Award.  Other
provisions of the Plan notwithstanding, without the prior approval of
shareholders, the Committee shall not take any action (including the repricing
of outstanding Options) for the which the approval of the shareholders of the
Company is required under Rule 4350-5 of the NASDAQ Company Manual unless such
approval has been obtained.

     

    9.6    No Rights to Awards; No Shareholder
Rights.  No Participant or other person shall have any claim to
be granted any Award under the Plan, and there is no obligation for uniformity
of treatment of Participants, employees, consultants, or
directors.  No Award shall confer on any Participant any of the rights
of a shareholder of the Company unless and until Shares are duly issued or
transferred and delivered to the Participant in accordance with the terms of the
Award or, in the case of an Option, the Option is duly exercised.

     

     

     

    
      
        
        

      

      
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    9.7    International
Participants.  With respect to Participants who reside or work
outside the United States of America, the Committee may, in its sole discretion,
amend the terms of the Plan with respect to such Participants or grant Awards
not conforming to the terms of the Plan to such Participants in order that such
Awards conform to the requirements of local law and customary employment
practices in such locations and in order that such Awards shall serve the
purposes of the Plan in light of such local laws and customary employment
practices.

     

    9.8    Unfunded Status of Awards; Creation
of Trusts.  The Plan is intended to constitute an “unfunded”
plan for incentive and deferred compensation.  With respect to any
payments not yet made to a Participant pursuant to an Award, nothing contained
in the Plan or any Award shall give any such Participant any rights that are
greater than those of a general creditor of the Company; provided, however, that the Committee
may authorize the creation of trusts or make other arrangements to meet the
Company’s obligations under the Plan to deliver cash, Shares, other Awards, or
other property pursuant to any Award, which trusts or other arrangements shall
be consistent with the “unfunded” status of the Plan unless the Committee
otherwise determines with the consent of each affected Participant.

     

    9.9    Nonexclusivity of the
Plan.  Neither the adoption of the Plan by the Board nor its
submission or the submission of any amendment to shareholders for approval shall
be construed as creating any limitations on the power of the Board to adopt such
other compensatory arrangements as it may deem desirable, including the granting
of awards otherwise than under the Plan, and such arrangements may be either
applicable generally or only in specific cases.

     

    9.10    Payments in the Event of
Forfeitures; Fractional Shares.  Unless otherwise determined by
the Committee, in the event of a forfeiture of an Award with respect to which a
Participant paid cash consideration, the Participant shall be repaid the amount
of such cash consideration.  No fractional Shares shall be issued or
delivered pursuant to the Plan or any Award (although fractional share units may
be credited in connection with any Award if so authorized by the
Committee).  The Committee shall determine whether and in what manner
cash, other Awards, or other property shall be issued or paid in lieu of such
fractional Shares or whether such fractional Shares or any rights thereto shall
be forfeited or otherwise eliminated.

     

    9.11    Successors and
Assigns.  The Plan shall be binding on all successors and
assigns of the Company and a Participant, including any permitted transferee of
a Participant, the Beneficiary or estate of such Participant and the executor,
administrator or trustee of such estate, or any receiver or trustee in
bankruptcy or representative of the Participant’s creditors.

     

    9.12    Governing Law.  The
validity, construction, and effect of the Plan, any rules and regulations under
the Plan, and any Award agreement will be determined in accordance with the laws
(including those governing contracts) of the State of New York, without giving
effect to principles of conflicts of laws, and applicable federal
law.

     

    9.13    Preexisting
Plans.  Upon shareholder approval of the Plan as provided under
Section 9.14, no further grants of awards will be made under each of the
Preexisting Plans, but awards previously granted thereunder will remain
outstanding in accordance with the applicable award agreement and other
applicable terms of each such Preexisting Plan.

     

    9.14    Effective Date, Shareholder
Approval, and Plan Termination.  The Plan as amended and
restated shall become effective if and at the time that such amendment and
restatement is approved by the shareholders of the Company.  Unless
earlier terminated by action of the Board, the Plan shall terminate on the day
before the tenth anniversary of the effectiveness of the Plan.  Upon
any such termination of the Plan, no new authorizations of grants of Awards may
be made, but then-outstanding Awards shall remain outstanding in accordance with
their terms, and the Committee otherwise shall retain its full powers under the
Plan with respect to such Awards.

     

     

     

    
      
         

      

      
        15

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