Document:

Exhibit 10.2

 

CF INDUSTRIES HOLDINGS, INC.

2009 EQUITY AND INCENTIVE PLAN

NON-EMPLOYEE DIRECTOR RESTRICTED STOCK AWARD

AGREEMENT

 

Name of Grantee:

 

Restricted Stock: [FMV of
$65,000 on Grant Date] shares of Restricted Stock

 

Grant Date: 

 

Vesting Date: The earlier to
occur of the first annual meeting of Company shareholders occurring after the
Grant Date or one-year following the Grant Date, subject to earlier
acceleration as described herein.

 

Capitalized
terms used but not otherwise defined herein shall have the meaning ascribed to
such terms as defined in the CF Industries Holdings, Inc. 2009 Equity and
Incentive Plan (the “Plan”). Please review this Award Agreement and promptly
return a signed copy to Wendy Jablow Spertus in order to render the grant effective.

 

*
* * * *

 

1.                                       You have been
granted the shares of Restricted Stock shown above, subject to the terms and
conditions of the Plan and this Award Agreement.

 

2.                                       From the Grant
Date until the Vesting Date, you may not sell, assign, transfer, donate, pledge
or otherwise dispose of the Restricted Stock unless such restrictions shall
lapse prior to the Vesting Date as described herein.

 

3.                                       Each
certificate representing Restricted Stock shall bear the following legend:

 

THE SHARES REPRESENTED BY
THIS CERTIFICATE ARE SUBJECT TO CERTAIN RESTRICTIONS UPON TRANSFER AS SET FORTH
IN AN AGREEMENT BETWEEN THE COMPANY AND THE SHAREHOLDER, A COPY OF WHICH IS ON
FILE WITH THE COMPANY.

 

You shall be entitled to
have such legend removed from such certificate when the restrictions referred
to in Section 2 with respect to the Restricted Stock have lapsed.

 

4.                                       Restrictions on
the Restricted Stock shall lapse on the Vesting Date, subject to earlier lapse
upon a Change in Control as provided for in the Plan or as otherwise provided
herein.

 

5.                                       If you shall
resign from the Board for any reason prior to the date the restrictions on your
Restricted Stock shall have lapsed, the Restricted Stock shall be forfeited.
Notwithstanding the above, in the event of your death or disability (as
determined by the Board) or in the event that you are not reappointed or
reelected to the Board, the restrictions and forfeiture conditions applicable
to the Restricted Stock shall lapse, and

 

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the Restricted Stock shall
be deemed fully vested in accordance with the terms of the Plan.

 

6.                                       During the
restricted period, you shall have the right to vote Restricted Stock and to
receive any dividends or distributions paid on such stock.

 

7.                                       The Plan is
incorporated herein by reference. The Plan and this Award Agreement constitute
the entire agreement of the parties with respect to the subject matter hereof
and supersede in their entirety all prior undertakings and agreements of you
and the Company with respect to the subject matter hereof, and may not be
modified except by means of a writing signed by you and the Company.  If there is a conflict between the terms and
conditions of the Plan and the terms and conditions of this Award Agreement,
the terms and conditions of the Plan shall govern. This Award Agreement is
governed by the internal substantive laws, but not the choice of law rules, of
the State of Delaware.

 

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By your signature and the
signature of the Company’s representative below, you and the Company agree that
this Award is granted under and governed by the terms and conditions of the
Plan, the terms of which are incorporated herein, and this Award Agreement. You
have reviewed the Plan and this Award Agreement in their entirety, have had an
opportunity to obtain the advice of counsel prior to executing this Award
Agreement and fully understands all provisions of the Plan and Award Agreement.
You hereby agree to accept as binding, conclusive and final all decisions or
interpretations of the Committee upon any questions relating to the Plan and
Award Agreement. You further agree to notify the Company upon any change in the
residence address indicated below.

 

 

	
  GRANTEE

  	
   

  	
  CF INDUSTRIES HOLDINGS,
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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3Exhibit 10.1

 

SILICON
LABORATORIES INC.

 

2009
STOCK INCENTIVE PLAN

 

ARTICLE 1.                          PURPOSES OF THE PLAN

 

The purposes of the Silicon
Laboratories Inc. 2009 Stock Incentive Plan (the “Plan”) are to attract
and retain the best available personnel, to provide additional incentives to
Employees, Directors and Consultants and to promote the success of the Company’s
business by linking the personal interests of the Directors, Employees, and
Consultants to those of Company stockholders and by providing such individuals
with an incentive for outstanding performance to generate superior returns to
Company stockholders.

 

ARTICLE 2.                          DEFINITIONS

 

Wherever the following terms
are used in the Plan they shall have the meanings specified below, unless the
context clearly indicates otherwise.  The
singular pronoun shall include the plural where the context so indicates.

 

2.1                                 “Affiliate” means, at the time of determination, any “parent”
or “subsidiary” as such terms are defined in Rule 405 of the Securities
Act.  The Board shall have the authority
to determine the time or times at which “parent” or “subsidiary” status is
determined within the foregoing definition.

 

2.2                                 “Award” means an Option, an award of Restricted Stock,
a Stock Appreciation Right, an award of Performance Shares, an award of
Performance Stock Units, an award of Restricted Stock Units, a
Performance-Based Award or any other right or benefit, including any other
Award under Article 8, granted to a Participant pursuant to the Plan.

 

2.3                                 “Award Agreement” means any written agreement,
contract, or other instrument or document evidencing the terms and conditions
of an Award, including through electronic medium.

 

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

 

2.5                                 “Change in Control” means and includes each of the
following:

 

(a)                                  A transaction or series of transactions (other than an
offering of the Shares to the general public through a registration statement
filed with the Securities and Exchange Commission) whereby any “person” or
related “group” of “persons” (as such terms are used in Sections 13(d) and
14(d)(2) of the Exchange Act) (other than the Company, any of its
subsidiaries, an employee benefit plan maintained by the Company or any of its
subsidiaries or a “person” that, prior to such transaction, directly or
indirectly controls, is controlled by, or is under common control with, the
Company) directly or indirectly acquires beneficial ownership (within the
meaning of Rule 13d-3 under the Exchange Act) of securities of the Company
possessing more than 50% of the total combined voting power of the Company’s
securities outstanding immediately after such acquisition; or

 

 

(b)                                 During any period of two consecutive years, individuals who,
at the beginning of such period, constitute the Board together with any new
director(s) (other than a director designated by a person who shall have
entered into an agreement with the Company to effect a transaction described in
Section 2.5(a) or Section 2.5(c) hereof) whose election by
the Board or nomination for election by the Company’s stockholders was approved
by a vote of at least a majority of the directors then still in office who
either were directors at the beginning of the two-year period or whose election
or nomination for election was previously so approved, cease for any reason to
constitute a majority thereof; or

 

(c)                                  The consummation by the Company (whether directly involving
the Company or indirectly involving the Company through one or more
intermediaries) of (x) a merger, consolidation, reorganization, or business
combination or (y) a sale or other disposition of all or substantially all
of the Company’s assets in any single transaction or series of related
transactions or (z) the acquisition of assets or stock of another entity,
in each case other than a transaction:

 

(i)                                     Which results in the Company’s voting securities outstanding
immediately before the transaction continuing to represent (either by remaining
outstanding or by being converted into voting securities of the Company or the
person that, as a result of the transaction, controls, directly or indirectly,
the Company or owns, directly or indirectly, all or substantially all of the
Company’s assets or otherwise succeeds to the business of the Company (the
Company or such person, the “Successor Entity”)) directly or indirectly,
at least a majority of the combined voting power of the Successor Entity’s
outstanding voting securities immediately after the transaction, and

 

(ii)                                  After which no person or group beneficially owns voting
securities representing 50% or more of the combined voting power of the
Successor Entity; provided, however,
that no person or group shall be treated for purposes of this Section 2.5(c)(ii) as
beneficially owning 50% or more of combined voting power of the Successor
Entity solely as a result of the voting power held in the Company prior to the
consummation of the transaction; or

 

(d)                                 The Company’s stockholders approve a liquidation or
dissolution of the Company.

 

The Committee shall have
full and final authority, which shall be exercised in its discretion, to
determine conclusively whether a Change in Control of the Company has occurred
pursuant to the above definition, and the date of the occurrence of such Change
in Control and any incidental matters relating thereto.

 

2.6                                 “Code” means the U.S. Internal Revenue Code of 1986,
as amended.

 

2.7                                 “Committee” means the committee of the Board appointed
or described in Article 12 to administer the Plan.

 

2.8                                 “Common Stock” means the common stock of the Company,
par value $0.0001 per share, and such other securities of the Company that may
be substituted for the Common Stock pursuant to Article 11.

 

2

 

2.9                                 “Company” means Silicon Laboratories Inc., a Delaware
corporation.

 

2.10                           “Consultant” means any consultant or adviser if: (a) the
consultant or advisor renders bona fide services to the Company or any
Subsidiary or Affiliate; (b) the services rendered by the consultant or
advisor are not in connection with the offer or sale of securities in a
capital-raising transaction and do not directly or indirectly promote or
maintain a market for the Company’s securities; and (c) the consultant or
advisor is a natural person.

 

2.11                           “Covered Employee” means an Employee who is, or could
be, a “covered employee” within the meaning of Section 162(m) of the
Code.

 

2.12                           “Director” means a member of the Board.

 

2.13                           “Disability”  means that the
Participant would qualify to receive benefit payments under the long-term
disability policy,  as it may be amended
from time to time, of the Company or the Subsidiary or Affiliate to which the
Participant provides services regardless of whether the Participant is covered
by such policy.  If the Company or the
Subsidiary or Affiliate to which the Participant provides service does not have
a long-term disability plan in place, “Disability” means that a Participant is
unable to carry out the responsibilities and functions of the position held by
the Participant by reason of any medically determined physical or mental
impairment for a period of not less than ninety (90) consecutive days.  A Participant shall not be considered to have
incurred a Disability unless he or she furnishes proof of such impairment
sufficient to satisfy the Board in its discretion.  Notwithstanding the foregoing, for purposes
of Incentive Stock Options granted under the Plan, “Disability” means that the
Participant is disabled within the meaning of Section 22(e)(3) of the
Code.

 

2.14                           “Dividend Equivalent Right” means a right granted to a
Participant related to the Award of Restricted Stock Units, Performance Shares
and/or Performance Units which is a right to receive the equivalent value of
dividends paid on the Shares prior to vesting of the Award.  Such Dividend Equivalent Rights shall be
converted to cash or additional Shares by such formula and at such time and
subject to such limitations as may be determined by the Committee.

 

2.15                           “Effective Date” shall have the meaning set forth in Section 13.1
hereof.

 

2.16                           “Eligible Individual” means any person who is an
Employee, a Consultant or a Director, as determined by the Committee.

 

2.17                           “Employee” means a full time or part time employee of
the Company or any Subsidiary or Affiliate, including an officer or Director,
who is treated as an employee in the personnel records of the Company or
Subsidiary or Affiliate for the relevant period, but shall exclude individuals
who are classified by the Company or Subsidiary or Affiliate as (a) independent
contractors or (b) intermittent or temporary, even if any such classification
is changed retroactively as a result of an audit, litigation or otherwise.  A Participant shall not cease to be an
Employee in the case of (i) any vacation or sick time or otherwise
approved paid time off in accordance with the Company or Subsidiary or
Affiliate’s policy or in the case where the Employee is on an unpaid leave but
his or her employment cannot be terminated pursuant to applicable local law or (ii) transfers
between locations of the Company or between

 

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the Company, a Subsidiary and/or Affiliate.  Neither services as a Director nor payment of
a director’s fee by the Company or a Subsidiary or Affiliate shall be
sufficient to constitute “employment” by the Company or any Subsidiary or
Affiliate.

 

2.18                           “Equity Restructuring” shall mean a nonreciprocal
transaction between the Company and its stockholders, such as a stock dividend,
stock split, spin-off, rights offering or recapitalization through a large,
nonrecurring cash dividend, that affects the Shares (or other securities of the
Company) or the price of Shares (or other securities) and causes a change in
the per share value of the Shares underlying outstanding Awards.

 

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

 

2.20                           “Fair Market Value” means, as of any given date, (a) if
Shares are traded on any established stock exchange, the closing price of a
Share as quoted on the principal exchange on which the Shares are listed, as
reported in the Wall Street Journal (or such
other source as the Company may deem reliable for such purposes) for such date,
or if no sale occurred on such date, the first trading date immediately prior
to such date during which a sale occurred; or (b) if Shares are not traded
on an exchange but are regularly quoted on a national market or other quotation
system, the closing sales price on such date as quoted on such market or
system, or if no sales occurred on such date, then on the date immediately
prior to such date on which sales prices are reported; or (c) in the
absence of an established market for the Shares of the type described in (a) or
(b) of this Section 2.20, the fair market value established by the
Committee acting in good faith.

 

2.21                           “Full Value Award” means any Award other than an
Option, SAR or other Award for which the Participant pays a minimum of the Fair
Market Value of the Shares, as determined as of the date of grant.

 

2.22                           “Incentive Stock Option” means an Option that is
intended to meet the requirements of Section 422 of the Code or any
successor provision thereto.

 

2.23                           “Independent Director” means a Director of the Company
who is not an Employee.

 

2.24                           “Involuntary Termination” shall have the meaning
ascribed to such term in the Award Agreement, or if the term is not defined in
the Award Agreement, shall mean the termination of the employment or service of
any Participant which occurs by reason of:

 

(a)                      such Participant’s involuntary dismissal or discharge by the
Company or a Subsidiary or Affiliate for reasons other than Misconduct, or

 

(b)                     such Participant’s voluntary resignation following (A) a
change in his or her position with the Company or Subsidiary or Affiliate employing the Participant which
materially reduces his or her duties and responsibilities or the level of
management to which he or she reports, (B) a reduction in his or her level
of total compensation (including base salary, fringe benefits and target bonus
under any corporate-performance based bonus or incentive programs) by more than
fifteen percent (15%) unless such reduction is effectuated as part of a
broad-based compensation reduction scheme within the Company and/or its
Subsidiaries and

 

4

 

Affiliates, (C) a relocation of such Participant’s
place of employment by more than fifty (50) miles, provided and only if
such change, reduction or relocation is effected by the Company without the
individual’s written consent or (D) negotiations between the Participant
and the Company and/or Subsidiary or Affiliate employing the Participant in the
context of a reduction in force.

 

2.25                           “Misconduct” shall mean the commission of any act of
fraud, embezzlement or dishonesty by the Participant, any unauthorized use or
disclosure by such person of confidential information or trade secrets of the
Company (or any Subsidiary or Affiliate) or any intentional wrongdoing by such
person, whether by omission or commission, which adversely affects the business
or affairs of the Company (or any Subsidiary or Affiliate) in a material
manner.  This shall not limit the grounds
for the dismissal or discharge of any person in the employment or service of
the Company (or any Subsidiary or Affiliate).

 

2.26                           “Non-Employee Director” means a Director of the
Company who qualifies as a “Non-Employee Director” as defined in Rule 16b-3(b)(3) under
the Exchange Act, or any successor rule.

 

2.27                           “Non-Qualified Stock Option” means an Option that is
not intended to be an Incentive Stock Option.

 

2.28                           “Option” means a right granted to a Participant
pursuant to Article 5 to purchase a specified number of Shares at a
specified price during specified time periods. 
An Option may be either an Incentive Stock Option or a Non-Qualified
Stock Option.

 

2.29                           “Participant” means any Eligible Individual who, as a
Director, Consultant or Employee, has been granted an Award pursuant to the
Plan.

 

2.30                           “Performance-Based Award” means an Award granted
pursuant to Article 9.

 

2.31                           “Performance Criteria” means the criteria that the
Committee selects for purposes of establishing the Performance Goal or
Performance Goals for a Participant for a Performance Period.  The Performance Criteria that will be used to
establish Performance Goals are limited to the following: earnings or net
earnings (either before or after interest, taxes, depreciation and
amortization), economic value-added, sales or revenue, income, net income
(either before or after taxes), operating earnings, cash flow (including, but
not limited to, operating cash flow and free cash flow), cash flow return on
capital, return on assets or net assets, return on stockholders’ equity, return
on capital, stockholder returns, return on sales, gross or net profit margin,
productivity, expense, margins, operating efficiency, customer satisfaction,
working capital, earnings per share, price per Share, market share, new
products, customer penetration, technology and risk management, any of which
may be measured either in absolute terms or as compared to any incremental
increase or as compared to results of a peer group.  The Committee shall define in an objective
fashion the manner of calculating the Performance Criteria it selects to use
for such Performance Period for such Participant.

 

2.32                           “Performance Goals” means, for a Performance Period,
the goals established in writing by the Committee for the Performance Period
based upon the Performance Criteria. 
Depending on the Performance Criteria used to establish such Performance
Goals, the

 

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Performance
Goals may be expressed in terms of overall Company performance, the performance
of a Subsidiary or Affiliate, the performance of a division or a business unit
of the Company or a Subsidiary or Affiliate, or the performance of an
individual.  The Committee, in its
discretion, may, to the extent consistent with, and within the time prescribed
by, Section 162(m) of the Code, appropriately adjust or modify the
calculation of Performance Goals for such Performance Period in order to
prevent the dilution or enlargement of the rights of Participants (a) in
the event of, or in anticipation of, any unusual or extraordinary corporate
item, transaction, event, or development, or (b) in recognition of, or in
anticipation of, any other unusual or nonrecurring events affecting the
Company, or the financial statements of the Company, or in response to, or in
anticipation of, changes in applicable laws, regulations, accounting
principles, or business conditions.

 

2.33                           “Performance Period” means the one or more periods of
time, which may be of varying and overlapping durations, as the Committee may
select, over which the attainment of one or more Performance Goals will be
measured for the purpose of determining a Participant’s right to, and the
payment of, a Performance-Based Award.

 

2.34                           “Performance Share” means a right granted to a
Participant pursuant to Section 8.1 hereof, to receive Shares, the payment
of which is contingent upon achieving certain Performance Goals or other
performance-based targets established by the Committee.

 

2.35                           “Performance Stock Unit” means a right granted to a
Participant pursuant to Section 8.2 hereof, to receive Shares (or value of
Shares in cash), the payment of which is contingent upon achieving certain
Performance Goals or other performance-based targets established by the
Committee.

 

2.36                           “Plan” means this 2009 Stock Incentive Plan, as it may
be amended from time to time.

 

2.37                           “Qualified Performance-Based Compensation” means any
compensation that is intended to qualify as “qualified performance-based
compensation” as described in Section 162(m)(4)(C) of the Code.

 

2.38                           “Restricted Stock” means Shares awarded to a
Participant pursuant to Article 6 that are subject to certain restrictions
as set forth in the Award Agreement.

 

2.39                           “Restricted Stock Unit” means an Award granted
pursuant to Section 8.3 hereof and shall be evidenced by a bookkeeping
entry representing the equivalent of one Share.

 

2.40                           “Section 409A Compliance” shall have the meaning
assigned to it in Section 10.6 hereof.

 

2.41                           “Securities Act” shall mean the U.S. Securities Act of
1933, as amended.

 

2.42                           “Share” means a share of Common Stock.

 

2.43                           “Stock Appreciation Right” or “SAR” means a
right granted pursuant to Article 7 to receive a payment equal to the
excess of the Fair Market Value of a specified

 

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number of Shares on the date the SAR is exercised over the
grant price of the SAR, as set forth in the applicable Award Agreement.

 

2.44                           “Subsidiary” means any “subsidiary corporation” as
defined in Section 424(f) of the Code and any applicable regulations
promulgated thereunder or any other entity of which a majority of the
outstanding voting stock or voting power is beneficially owned directly or
indirectly by the Company.

 

ARTICLE 3.                          SHARES SUBJECT TO THE PLAN

 

3.1                                 Number of Shares.

 

(a)                                  Subject to Article 11 and Section 3.1(b) hereof,
the aggregate number of Shares which may be issued or transferred pursuant to
Awards, including upon the exercise of Incentive Stock Options, under the Plan
shall be 6,800,000 Shares.  Any Shares
that are subject to Awards of Options or SARs shall be counted against this
limit as one (1) Share for every one (1) Share granted.  Any Shares that are subject to Full Value
Awards (other than Options or SARs) shall be counted against this limit as one
and fifty-five hundredths (1.55) Shares for every one (1) Share granted.

 

(b)                                 To the extent that an Award terminates, expires, lapses for
any reason, or is settled in cash, any Shares subject to the Award shall again
be available for the grant of an Award pursuant to the Plan.  Any Shares that become available for the
grant of Awards pursuant to this Section 3.1(b) shall be added back
as one (1) Share if such Shares were subject to Options or SARs granted
under the Plan and as one and fifty-five hundredths (1.55) shares if such
shares were subject to Full Value Awards granted under the Plan.  Any Shares withheld to satisfy the grant or
exercise price or tax withholding obligation pursuant to any Award shall be
treated as issued under this Plan and shall be deducted from the aggregate
number of shares which may be issued under Section 3.1(a).  Further, any Shares tendered to satisfy the
grant or exercise price or tax withholding obligation pursuant to any Award
shall not be added to the aggregate number of Shares which may be issued under Section 3.1(a).  To the extent permitted by applicable law or
any exchange rule, Shares issued in assumption of, or in substitution for, any
outstanding awards of any entity acquired in any form of combination by the
Company or any Subsidiary or Affiliate shall not be counted against Shares
available for grant pursuant to this Plan. 
The payment of Dividend Equivalent Rights in cash in conjunction with
any outstanding Awards shall not be counted against the Shares available for
issuance under the Plan.  Notwithstanding
the provisions of this Section 3.1(b), no Shares may again be optioned,
granted or awarded if such action would cause an Incentive Stock Option to fail
to qualify as an incentive stock option under Section 422 of the Code.

 

3.2                                 Shares Distributed.  Any Shares
distributed pursuant to an Award may consist, in whole or in part, of
authorized and unissued Shares, treasury Shares or Shares purchased on the open
market.

 

3.3                                 Limitation on Number of Shares
Subject to Awards.  Notwithstanding any provision in the Plan to
the contrary, and subject to Article 11, where it is intended to comply
with Section 162(m) of the Code, the maximum number of Shares with respect
to one or more

 

7

 

Awards that may be granted to any one Participant during any
calendar year shall be 1,000,000 Shares and the maximum amount that may be paid
in cash during any calendar year with respect to any Award shall be
$30,000,000.

 

ARTICLE 4.                          ELIGIBILITY AND PARTICIPATION

 

4.1                                 Eligibility.  Each Eligible Individual shall be eligible to
be granted one or more Awards pursuant to the Plan.

 

4.2                                 Participation.  Subject to the
provisions of the Plan, the Committee may, from time to time, select from among
all Eligible Individuals, those to whom Awards shall be granted and shall
determine the nature and amount of each Award. 
No Eligible Individual shall have any right to be granted an Award
pursuant to this Plan.

 

ARTICLE 5.                          STOCK OPTIONS

 

5.1                                 General.  The Committee is authorized to grant Options
to Eligible Individuals on the following terms and conditions:

 

(a)                                  Exercise Price.  The exercise price per Share subject to an
Option shall be determined by the Committee and set forth in the Award
Agreement; provided that, subject to Section 5.2(c) hereof, the per
Share exercise price for any Option shall not be less than 100% of the Fair
Market Value of a Share on the date of grant.

 

(b)                                 Time and Conditions of Exercise.  The Committee shall
determine the time or times at which an Option may be exercised in whole or in
part; provided that the term of
any Option granted under the Plan shall not exceed ten years.  The Committee shall also determine the
performance or other conditions, if any, that must be satisfied before all or
part of an Option may be exercised.

 

(c)                                  Payment.  The Committee shall determine the methods by
which the exercise price of an Option may be paid, potentially including the
following methods: (i) cash or check, (ii) surrender of Shares or
delivery of a properly executed form of attestation of ownership of Shares as
the Committee may require (including withholding of Shares otherwise
deliverable upon exercise of the Award) which have a Fair Market Value on the date
of surrender of attestation equal to the aggregate exercise price of the Shares
as to which the Award shall be exercised, (iii) promissory note bearing
interest at no less than such rate as shall then preclude the imputation of
interest under the Code), (iv) other property acceptable to the Committee
(including through the delivery of a notice that the Participant has placed a
market sell order with a broker with respect to Shares then issuable upon
exercise of the Option, and that the broker has been directed to pay a
sufficient portion of the net proceeds of the sale to the Company in
satisfaction of the Option exercise price; provided
that payment of such proceeds is then made to the Company upon settlement of
such sale), or (v) any combination of the foregoing methods of
payment.  The Award Agreement will
specify the methods of paying the exercise price available to
Participants.  The Committee shall also
determine the methods by which Shares shall be delivered or deemed to be
delivered to Participants. 
Notwithstanding any other provision of the Plan to the contrary, no
Participant who is a Director or an “executive officer” of the Company within
the meaning of Section 13(k) of the Exchange Act shall be permitted
to pay the exercise

 

8

 

price of an Option, or continue any extension of credit with
respect to the exercise price of an Option with a loan from the Company or a
loan arranged by the Company in violation of Section 13(k) of the
Exchange Act.

 

(d)                                 Evidence of Grant.  All Options shall be evidenced by an Award
Agreement between the Company and the Participant.  The Award Agreement shall include such
additional provisions as may be specified by the Committee.

 

5.2                                 Incentive Stock Options.  Incentive Stock
Options shall be granted only to Employees of the Company or any Subsidiary,
and the terms of any Incentive Stock Options granted pursuant to the Plan, in
addition to the requirements of Section 5.1 hereof, must comply with the
provisions of this Section 5.2.

 

(a)                                  Expiration.  Subject to Section 5.2(c) hereof,
an Incentive Stock Option shall expire and may not be exercised to any extent
by anyone after the first to occur of the following events:

 

(i)                                     Ten years from the date it is granted, unless an earlier time
is set in the Award Agreement;

 

(ii)                                  Three months after the Participant’s termination of
employment as an Employee; and

 

(iii)                               One year after the date of the Participant’s termination of
employment or service on account of death, or Disability within the meaning of Section 22(e)(3) of
the Code.  Upon the Participant’s
Disability or death, any Incentive Stock Options exercisable at the Participant’s
Disability or death may be exercised by the Participant’s legal representative
or representatives, by the person or persons entitled to do so pursuant to the
Participant’s last will and testament, or, if the Participant fails to make
testamentary disposition of such Incentive Stock Option or dies intestate, by
the person or persons entitled to receive the Incentive Stock Option pursuant
to the applicable laws of descent and distribution.

 

(b)                                 Dollar Limitation.  The aggregate Fair Market Value (determined
as of the time the Option is granted) of all Shares with respect to which
Incentive Stock Options are first exercisable by a Participant in any calendar
year may not exceed $100,000 or such other limitation as imposed by Section 422(d) of
the Code, or any successor provision.  To
the extent that Incentive Stock Options are first exercisable by a Participant
in excess of such limitation, the excess shall be considered Non-Qualified
Stock Options.

 

(c)                                  Ten Percent Owners.  An Incentive Stock Option shall be granted to
any individual who, at the date of grant, owns stock possessing more than ten
percent of the total combined voting power of all classes of Shares of the
Company only if such Option is granted at a price that is not less than 110% of
Fair Market Value on the date of grant and the Option is exercisable for no
more than five years from the date of grant.

 

(d)                                 Notice of Disposition.  The Participant shall give the Company prompt
notice of any disposition of Shares acquired by exercise of an Incentive Stock
Option within (i)

 

9

 

two years from the date of grant of such Incentive Stock
Option or (ii) one year after the transfer of such Shares to the
Participant.

 

(e)                                  Right to Exercise.  During a Participant’s lifetime, an Incentive
Stock Option may be exercised only by the Participant.

 

(f)                                    Failure to Meet Requirements.  Any Option (or portion thereof) purported to
be an Incentive Stock Option, which, for any reason, fails to meet the
requirements of Section 422 of the Code shall be considered a
Non-Qualified Stock Option.

 

ARTICLE 6.                          RESTRICTED STOCK AWARDS

 

6.1                                 Grant of Restricted Stock.  The Committee is
authorized to make Awards of Restricted Stock to any Eligible Individual
selected by the Committee in such amounts and subject to such terms and
conditions as determined by the Committee. 
All Awards of Restricted Stock shall be evidenced by an Award Agreement.

 

6.2                                 Purchase Price.  At the time of the grant of an Award of
Restricted Stock, the Committee shall determine the price, if any, to be paid
by the Participant for each Share subject to the Award of Restricted
Stock.  To the extent required by
applicable law, the price to be paid by the Participant for each Share subject
to the Award of Restricted Stock shall not be less than the par value of a
Share (or such higher amount required by applicable law).  The purchase price of Shares acquired
pursuant to the Award of Restricted Stock shall be paid either: (i) in
cash at the time of purchase; (ii) at the sole discretion of the
Committee, by services rendered or to be rendered to the Company or a Subsidiary
or Affiliate; or (iii) in any other form of legal consideration that may
be acceptable to the Committee in its sole discretion and in compliance with
applicable law.

 

6.3                                 Issuance and Restrictions.  Restricted Stock
shall be subject to such restrictions on transferability and other restrictions
as the Committee may impose (including, without limitation, limitations on the
right to vote Restricted Stock or the right to receive dividends on the
Restricted Stock).  These restrictions
may lapse separately or in combination at such times, pursuant to such
circumstances, in such installments, or otherwise, as the Committee determines
at the time of the grant of the Award or thereafter.

 

6.4                                 Forfeiture.  Except as otherwise
determined by the Committee at the time of the grant of the Award or
thereafter, upon termination of employment or service during the applicable
restriction period, Restricted Stock that is at that time subject to
restrictions shall be forfeited; provided,
however, that the Committee may (a) provide in any Restricted
Stock Award Agreement that restrictions or forfeiture conditions relating to
Restricted Stock will be waived in whole or in part in the event of
terminations resulting from specified causes, and (b) in other cases waive
in whole or in part restrictions or forfeiture conditions relating to
Restricted Stock.

 

6.5                                 Certificates for Restricted Stock.  Restricted Stock
granted pursuant to the Plan may be evidenced in such manner as the Committee
shall determine.  If certificates
representing shares of Restricted Stock are registered in the name of the
Participant, certificates must bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to

 

10

 

such
Restricted Stock, and the Company may, at its discretion, retain physical
possession of the certificate until such time as all applicable restrictions
lapse.

 

ARTICLE
7.                          STOCK APPRECIATION RIGHTS

 

7.1                                 Grant of Stock Appreciation Rights.

 

(a)                                  A Stock Appreciation Right may be granted to any Eligible
Individual selected by the Committee.  A
Stock Appreciation Right shall be subject to such terms and conditions not
inconsistent with the Plan as the Committee shall impose and shall be evidenced
by an Award Agreement, provided that the term of any Stock Appreciation Right
shall not exceed ten years.

 

(b)                                 A Stock Appreciation Right shall entitle the Participant (or
other person entitled to exercise the Stock Appreciation Right pursuant to the
Plan) to exercise all or a specified portion of the Stock Appreciation Right
(to the extent then exercisable pursuant to its terms) and to receive from the
Company an amount equal to the product of (i) the excess of (A) the
Fair Market Value of the Shares on the date the Stock Appreciation Right is
exercised over (B) the grant price of the Stock Appreciation Right and (ii) the
number of Shares with respect to which the Stock Appreciation Right is
exercised, subject to any limitations the Committee may impose.

 

(c)                                  Grant Price.  The grant price per Share subject to a Stock
Appreciation Right shall be determined by the Committee and set forth in the
Award Agreement; provided that, the per Share grant price for any Stock
Appreciation Right shall not be less than 100% of the Fair Market Value of a
Share on the date of grant.

 

7.2                                 Payment and Limitations on Exercise.

 

(a)                                  Subject to Section 7.2(b) hereof, payment of the
amounts determined under Section 7.1(b) hereof shall be in cash, in
Shares (based on its Fair Market Value as of the date the Stock Appreciation
Right is exercised) or a combination of both, as determined by the Committee.

 

(b)                                 To the extent any payment under Section 7.1(b) hereof
is effected in Shares, it shall be made subject to satisfaction of all
applicable provisions of Article 5 pertaining to Options.

 

ARTICLE
8.                          OTHER TYPES OF AWARDS

 

8.1                                 Performance Share Awards.  Any Eligible Individual selected by the
Committee may be granted one or more Awards of Performance Shares which shall
be denominated in a number of Shares and which may be linked to any one or more
of the Performance Criteria or other specific performance criteria determined
appropriate by the Committee, in each case on a specified date or dates or over
any period or periods determined by the Committee.  In making such determinations, the Committee
shall consider (among such other factors as it deems relevant in light of the
specific type of award) the contributions, responsibilities and other
compensation of the particular Participant. 
The Committee may authorize Dividend

 

11

 

Equivalents to be paid on outstanding Performance Share
Awards.  If Dividend Equivalents are
authorized to be paid, they may be paid at the time dividends are declared on
the Shares or at the time the awards vest and they may be paid in either cash
or Shares, in the discretion of the Committee.

 

8.2                                 Performance Stock Units.  Any
Eligible Individual selected by the Committee may be granted one or more
Performance Stock Unit awards which shall be denominated in unit equivalent of
Shares and/or units of value including dollar value of Shares and which may be
linked to any one or more of the Performance Criteria or other specific
performance criteria determined appropriate by the Committee, in each case on a
specified date or dates or over any period or periods determined by the
Committee.  In making such
determinations, the Committee shall consider (among such other factors as it
deems relevant in light of the specific type of award) the contributions,
responsibilities and other compensation of the particular Participant.  On the vesting date, the Company shall,
subject to Section 10.5(b), transfer to the Participant one unrestricted,
fully transferable Share for each Performance Stock Unit scheduled to be paid
out on such date and not previously forfeited. 
Alternatively, settlement of a Performance Stock Unit may be made in
cash (in an amount reflecting the Fair Market Value of Shares that would have
been issued) or any combination of cash and Shares, as determined by the
Committee, in its sole discretion.  The
Committee may authorize Dividend Equivalents to be paid on outstanding
Performance Stock Units.  If Dividend
Equivalents are authorized to be paid, they may be paid at the time dividends
are declared on the Shares or at the time the awards vest and they may be paid
in either cash or Shares, in the discretion of the Committee.

 

8.3                                 Restricted Stock Units.  The Committee is authorized to make Awards of
Restricted Stock Units to any Eligible Individual selected by the Committee in
such amounts and subject to such terms and conditions as determined by the
Committee.  At the time of grant, the
Committee shall specify the date or dates on which the Restricted Stock Units
shall become fully vested and nonforfeitable, and may specify such conditions
to vesting as it deems appropriate.  On
the vesting date, the Company shall, subject to Section 10.5(b), transfer
to the Participant one unrestricted, fully transferable Share for each Restricted
Stock Unit scheduled to be paid out on such date and not previously
forfeited.  Alternatively, settlement of
a Restricted Stock Unit may be made in cash (in an amount reflecting the Fair
Market Value of Shares that would have been issued) or any combination of cash
and Shares, as determined by the Committee, in its sole discretion.  The Committee may authorize Dividend
Equivalents to be paid on outstanding Restricted Stock Units.  If Dividend Equivalents are authorized to be
paid, they may be paid at the time dividends are declared on the Shares or at
the time the awards vest and they may be paid in either cash or Shares, in the
discretion of the Committee.

 

8.4                                 Other Awards.  The Committee is authorized under the Plan to
make any other Award to an Eligible Individual that is not inconsistent with
the provisions of the Plan and that by its terms involves or might involve the
issuance of (i) Shares, (ii) a right with an exercise or conversion
privilege related to the passage of time, the occurrence of one or more events,
or the satisfaction of performance criteria or other conditions, or (iii) any
other right with the value derived from the value of the Shares.  The Committee may establish one or more
separate programs under the Plan for the purpose of issuing particular forms of
Awards to one or more classes of Participants on such terms and conditions as
determined by the Committee from time to time.

 

12

 

8.5                                 Term.  Except as otherwise provided herein, the term
of any Award of Performance Shares, Performance Stock Units, Restricted Stock
Units and any other Award granted pursuant to this Article 8 shall be set
by the Committee in its discretion.

 

8.6                                 Exercise or Purchase Price.  The Committee may establish the exercise or
purchase price, if any, of any Award of Performance Shares, Performance Stock
Units, Restricted Stock Units and any other Award granted pursuant to this Article 8;
provided, however, that such
price shall not be less than the par value of a Share on the date of grant,
unless otherwise permitted by applicable state law.

 

8.7                                 Exercise upon Termination of
Employment or Service.  An Award of Performance Shares, Performance
Stock Units, Restricted Stock Units and any other Awards granted pursuant to
this Article 8 shall only be exercisable or payable while the Participant
is an Employee, Consultant or Director, as applicable; provided, however, that the Committee in
its sole and absolute discretion may provide that an Award of Performance
Shares, Performance Stock Units, Restricted Stock Units or any other Award
granted pursuant to this Article 8 may be exercised or paid subsequent to
a termination of employment or service, as applicable, or following a Change in
Control of the Company, or because of the Participant’s retirement, death or
Disability, or otherwise; provided, however,
that any such provision with respect to Performance Shares or Performance Stock
Units shall be subject to the requirements of Section 162(m) of the
Code if such Performance Shares or Performance Stock Units are granted as
Qualified Performance-Based Compensation.

 

8.8                                 Form of Payment.  Payments with respect to any Awards granted
under this Article 8 shall be made in cash, in Shares or a combination of
both, as determined by the Committee.

 

8.9                                 Award Agreement.  All Awards under this Article 8 shall be
subject to such additional terms and conditions as determined by the Committee
and shall be evidenced by an Award Agreement.

 

8.10                           Timing of Settlement.  At the time of grant, the Committee shall
specify the settlement date applicable to an Award of Performance Shares,
Performance Stock Units, Restricted Stock Units or any other Award granted
pursuant to this Article 8, which shall be no earlier than the vesting
date(s) applicable to the relevant Award and may be later than the vesting
date(s) to the extent and under the terms determined by the Committee.

 

13

 

ARTICLE
9.                          PERFORMANCE-BASED AWARDS FOR COVERED
EMPLOYEES

 

9.1                                 Purpose.  The purpose of this Article 9
is to provide the Committee the ability to qualify Awards other than Options
and SARs and that are granted pursuant to Articles 6  and 8 as Qualified Performance-Based
Compensation.  If the Committee, in its
discretion, decides to grant a Performance-Based Award to a Covered Employee,
the provisions of this Article 9 shall control over any contrary provision
contained in Articles 6 or 8; provided,
however, that the Committee may in its discretion grant Awards to
Covered Employees that are based on Performance Criteria or Performance Goals
but that do not satisfy the requirements of this Article 9.

 

9.2                                 Applicability.  This Article 9
shall apply only to those Covered Employees selected by the Committee to
receive Performance-Based Awards that are intended to qualify as Qualified
Performance-Based Compensation.  The
designation of a Covered Employee as a Participant for a Performance Period
shall not in any manner entitle the Participant to receive an Award for the
period.  Moreover, designation of a
Covered Employee as a Participant for a particular Performance Period shall not
require designation of such Covered Employee as a Participant in any subsequent
Performance Period and designation of one Covered Employee as a Participant
shall not require designation of any other Covered Employees as a Participant
in such period or in any other period.

 

9.3                                 Procedures with Respect to
Performance-Based Awards.  To the extent necessary to comply with the
Qualified Performance-Based Compensation requirements of Section 162(m)(4)(C) of
the Code, with respect to any Award granted under Articles 6 or 8 which may be
granted to one or more Covered Employees, no later than ninety (90) days
following the commencement of any fiscal year in question or any other
designated fiscal period or period of service (or such other time as may be
required or permitted by Section 162(m) of the Code), the Committee
shall, in writing, (a) designate one or more Covered Employees, (b) select
the Performance Criteria applicable to the Performance Period, (c) establish
the Performance Goals, and amounts of such Awards, as applicable, which may be
earned for such Performance Period, and (d) specify the relationship
between Performance Criteria and the Performance Goals and the amounts of such
Awards, as applicable, to be earned by each Covered Employee for such
Performance Period.  Following the
completion of each Performance Period, the Committee shall certify in writing
whether the applicable Performance Goals have been achieved for such
Performance Period.  In determining the
amount earned by a Covered Employee, the Committee shall have the right to
reduce or eliminate (but not to increase) the amount payable at a given level
of performance to take into account additional factors that the Committee may
deem relevant to the assessment of individual or corporate performance for the
Performance Period.

 

9.4                                 Payment of Performance-Based Awards.  Unless otherwise
provided in the applicable Award Agreement, a Participant must be employed by
the Company or a Subsidiary or Affiliate on the day a Performance-Based Award
for the appropriate Performance Period is paid to the Participant.  Furthermore, a Participant shall be eligible
to receive payment pursuant to a Performance-Based Award for a Performance
Period only if the Performance Goals for such period are achieved.

 

14

 

9.5                                 Additional Limitations.  Notwithstanding any other provision of the
Plan, any Award which is granted to a Covered Employee shall be subject to any
additional limitations set forth in Section 162(m) of the Code
(including any amendment to Section 162(m) of the Code) or any
regulations or rulings issued thereunder that are requirements for
qualification as qualified performance-based compensation as described in Section 162(m)(4)(C) of
the Code, and the Plan shall be deemed amended to the extent necessary to
conform to such requirements.

 

ARTICLE
10.                       PROVISIONS APPLICABLE TO AWARDS

 

10.1                           Stand-Alone and Tandem Awards.  Awards granted
pursuant to the Plan may, in the discretion of the Committee, be granted either
alone, in addition to, or in tandem with, any other Award granted pursuant to
the Plan. Awards granted in addition to or in tandem with other Awards may be
granted either at the same time as or at a different time from the grant of
such other Awards.

 

10.2                           Award Agreement.  Awards under the
Plan shall be evidenced by Award Agreements that set forth the terms,
conditions and limitations for each Award which may include the term of an
Award, the provisions applicable in the event the Participant’s employment or
service terminates, and the Company’s authority to unilaterally or bilaterally
amend, modify, suspend, cancel or rescind an Award.

 

10.3                           Limits on Transfer.  No right or interest
of a Participant in any Award may be pledged, encumbered, or hypothecated to or
in favor of any party other than the Company or a Subsidiary or Affiliate, or
shall be subject to any lien, obligation, or liability of such Participant to
any other party other than the Company or a Subsidiary or Affiliate.  Except as otherwise provided by the
Committee, no Award shall be assigned, transferred, or otherwise disposed of by
a Participant other than by will or the laws of descent and distribution or
pursuant to beneficiary designation procedures approved from time to time by
the Committee (or the Board in the case of Awards granted to Independent
Directors).  The Committee by express
provision in the Award or an amendment thereto may permit an Award (other than
an Incentive Stock Option) to be transferred to, exercised by and paid to
certain persons or entities related to the Participant, including, but not
limited to, members of the Participant’s family, charitable institutions, or
trusts or other entities whose beneficiaries or beneficial owners are members
of the Participant’s family and/or charitable institutions, or to such other
persons or entities as may be expressly approved by the Committee, pursuant to
such conditions and procedures as the Committee may establish.  Any permitted transfer shall be subject to
the condition that the Committee receive evidence satisfactory to it that the
transfer is being made for estate and/or tax planning purposes (or to a “blind
trust” in connection with the Participant’s termination of employment or
service with the Company or a Subsidiary or Affiliate to assume a position with
a governmental, charitable, educational or similar non-profit institution) and
on a basis consistent with the Company’s lawful issue of securities.

 

10.4                           Beneficiaries.  Notwithstanding Section 10.3
hereof, a Participant may, if permitted by the Committee, designate a
beneficiary to exercise the rights of the Participant and to receive any
distribution with respect to any Award upon the Participant’s death.  A beneficiary, legal guardian, legal
representative, or other person claiming any rights pursuant to

 

15

 

the Plan is
subject to all terms and conditions of the Plan and any Award Agreement
applicable to the Participant, except to the extent the Plan and Award
Agreement otherwise provide, and to any additional restrictions deemed
necessary or appropriate by the Committee. 
If the Participant is married and resides in a community property state,
a designation of a person other than the Participant’s spouse as his or her
beneficiary with respect to more than 50% of the Participant’s interest in the
Award shall not be effective without the prior written consent of the
Participant’s spouse.  If no beneficiary
has been designated or survives the Participant, payment shall be made to
either the person’s estate or legal representative or the person entitled
thereto pursuant to the Participant’s will or the laws of descent and distribution
(or equivalent laws outside the U.S.). 
Subject to the foregoing, a beneficiary designation may be changed or
revoked by a Participant at any time provided the change or revocation is filed
with the Committee.

 

10.5                           Stock Certificates; Book Entry Procedures.

 

(a)                                  Notwithstanding anything herein to the contrary, the Company
shall not be required to issue or deliver any certificates evidencing Shares
pursuant to the exercise of any Award, unless and until the Board has
determined, with advice of counsel, that the issuance and delivery of such
certificates is in compliance with all applicable laws, regulations of
governmental authorities and, if applicable, the requirements of any exchange
on which the Shares are listed or traded. 
All certificates evidencing Shares delivered pursuant to the Plan are
subject to any stop-transfer orders and other restrictions as the Committee
deems necessary or advisable to comply with federal, state local, securities or
other laws, including laws of jurisdictions outside of the United States, rules and
regulations and the rules of any national securities exchange or automated
quotation system on which the Shares are listed, quoted, or traded.  The Committee may place legends on any
certificate evidencing Shares to reference restrictions applicable to the
Shares.  In addition to the terms and
conditions provided herein, the Board may require that a Participant make such
reasonable covenants, agreements, and representations as the Board, in its
discretion, deems advisable in order to comply with any such laws, regulations,
or requirements. The Committee shall have the right to require any Participant to comply with any timing or
other restrictions with respect to the settlement or exercise of any Award,
including a window-period limitation, as may be imposed in the discretion of
the Committee.

 

(b)                                 Notwithstanding any other provision of the Plan, unless
otherwise determined by the Committee or required by any applicable law, rule or
regulation, the Company shall not deliver to any Participant certificates
evidencing Shares issued in connection with any Award and instead such Shares
shall be recorded in the books of the Company (or, as applicable, its transfer
agent or stock plan administrator).

 

10.6                           Accelerated Vesting and Deferral Limitations.  The Committee shall
not have the discretionary authority to accelerate or delay issuance of Shares
under an Award that constitutes a deferral of compensation within the meaning
of Section 409A of the Code, except to the extent that such acceleration
or delay may, in the discretion of the Committee, be effected in a manner that
will not cause any person to incur taxes, interest or penalties under Section 409A
of the Code (“Section 409A Compliance”).

 

16

 

10.7                           Paperless Administration.  In the event that the Company establishes,
for itself or using the services of a third party, an automated system for the
documentation, granting or exercise of Awards, such as a system using an
internet website or interactive voice response, then the paperless
documentation, granting or exercise of Awards by a Participant may be permitted
through the use of such an automated system.

 

ARTICLE
11.                       CHANGES IN CAPITAL STRUCTURE

 

11.1                           Adjustments.

 

(a)                                  In the event of any
stock dividend, stock split, combination or exchange of shares, merger,
consolidation or other distribution (other than normal cash dividends) of
Company assets to stockholders, or any other change affecting the Shares or the
price of the Shares other than an Equity Restructuring, the Committee shall
make such adjustments, if any, as the Committee in its discretion may deem
appropriate to reflect such change with respect to (a) the aggregate
number and kind of shares that may be issued under the Plan (including, but not
limited to, adjustments of the limitations in Sections 3.1 and 3.3 hereof); (b) the
terms and conditions of any outstanding Awards (including, without limitation,
any applicable performance targets or criteria with respect thereto); and (c) the
grant or exercise price per Share for any outstanding Awards under the
Plan.  Any adjustment affecting an Award
intended as Qualified Performance-Based Compensation shall be made consistent
with the requirements of Section 162(m) of the Code.

 

(b)                                 In the event of any transaction or event described in Section 11.1(a) hereof or any unusual or nonrecurring transactions or events
affecting the Company, any affiliate of the Company, or the financial
statements of the Company or any affiliate, or of changes in applicable laws,
regulations or accounting principles, the Committee, in its sole and absolute
discretion, and on such terms and conditions as it deems appropriate, either by
the terms of the Award or by action taken prior to the occurrence of such transaction
or event and either automatically or upon the Participant’s request, is hereby
authorized to take any one or more of the following actions whenever the
Committee determines that such action is appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits intended to be
made available under the Plan or with respect to any Award under the Plan, to
facilitate such transactions or events or to give effect to such changes in
laws, regulations or principles:

 

(i)                                     To provide for either (A) termination of any such Award
in exchange for an amount of cash, if any, equal to the amount that would have
been attained upon the exercise of such Award or realization of the Participant’s
rights (and, for the avoidance of doubt, if as of the date of the occurrence of
the transaction or event described in this Section 11.1 the Committee
determines in good faith that no amount would have been attained upon the
exercise of such Award or realization of the Participant’s rights, then such
Award may be terminated by the Company without payment) or (B) the
replacement of such Award with other rights or property selected by the
Committee in its sole discretion;

 

(ii)                                  To provide that such Award be assumed by the successor or
survivor corporation, or a parent or subsidiary thereof, or shall be
substituted for by similar options, rights or awards covering the stock of the
successor or survivor corporation, or a parent

 

17

 

or subsidiary thereof, with appropriate adjustments as to the
number and kind of shares and prices;

 

(iii)                               To make adjustments in the number and type of Shares (or
other securities or property) subject to outstanding Awards, and in the number
and kind of outstanding Restricted Stock and/or in the terms and conditions of
(including the grant or exercise price), and the criteria included in,
outstanding options, rights and awards;

 

(iv)                              To provide that such Award shall be exercisable or payable or
fully vested with respect to all Shares covered thereby, notwithstanding
anything to the contrary in the Plan or the applicable Award Agreement; and

 

(v)                                 To provide that the Award cannot vest, be exercised or become
payable after such event.

 

(c)                                  In connection with
the occurrence of any Equity Restructuring, and notwithstanding anything to the
contrary in Sections 11.1(a) and 11.1(b) hereof:

 

(i)                                     The number and
type of securities subject to each outstanding Award and the exercise price or
grant price thereof, if applicable, shall be equitably adjusted.  The adjustments provided under this Section 11.1(c)(i) shall
be nondiscretionary and shall be final and binding on the affected Participant
and the Company.

 

(ii)                                  The Committee
shall make such equitable adjustments, if any, as the Committee in its discretion
may deem appropriate to reflect such Equity Restructuring with respect to the
aggregate number and kind of shares that may be issued under the Plan
(including, but not limited to, adjustments of the limitations in Sections 3.1
and 3.3 hereof).

 

11.2                           Change in Control.

 

(a)                                  Notwithstanding Section 11.1 hereof,
and except as may otherwise be provided in any applicable Award Agreement or
other written agreement entered into between the Company and a Participant, if
a Change in Control occurs and a Participant’s Awards are not converted,
assumed, or replaced by a successor or survivor corporation, or a parent or
subsidiary thereof, then immediately prior to the Change in Control such Awards
shall become fully exercisable and all forfeiture restrictions on such Awards
shall lapse and, following the consummation of such Change in Control, all such
Awards shall terminate and cease to be outstanding.   In the event that the terms of any agreement
(other than the Award Agreement) between the Company or any Subsidiary or
Affiliate and a Participant contains provisions that conflict with and are more
restrictive than the provisions of this Section 11.2(a), this Section 11.2(a) shall
prevail and control and the more restrictive terms of such agreement (and only such
terms) shall be of no force or effect.

 

(b)                                 The Committee may at any time, subject to Section 10.6,
provide that one or more Awards will automatically accelerate in connection
with a Change in Control, whether or not those Awards are assumed or otherwise
continue in full force and effect.  In
addition, where Awards are assumed or continued after a Change of Control, the
Committee may provide that one or more Awards will automatically accelerate
upon an Involuntary Termination of the

 

18

 

Participant’s employment or service within a designated
period (not to exceed eighteen (18) months) following the effective date of
such Change in Control.  Any such Award
shall accordingly, immediately prior to the effective date of such Change in
Control or upon an Involuntary Termination of the Participant’s employment or
service following a Change in Control (at the Committee’s discretion), become
fully exercisable and all forfeiture restrictions on such Awards shall lapse.

 

(c)                                  Upon a Change in Control, the Committee may cause any and all
Awards outstanding hereunder to terminate at a specific time in the future,
including, but not limited to, the date of such Change in Control, and shall
give each Participant the right to exercise such Awards during a period of time
as the Committee, in its sole and absolute discretion, shall determine.

 

(d)                                 The portion of any Incentive Stock Option accelerated in
connection with a Change in Control shall remain exercisable as an Incentive
Stock Option only to the extent the applicable One Hundred Thousand Dollar
($100,000) limitation is not exceeded. 
To the extent such dollar limitation is exceeded, the accelerated
portion of such Option shall be exercisable as a Non-Statutory Option under the
U.S. federal tax laws.

 

11.3                           No Other Rights.  Except as expressly
provided in the Plan, no Participant shall have any rights by reason of any
subdivision or consolidation of Shares of any class, the payment of any
dividend, any increase or decrease in the number of Shares of any class or any
dissolution, liquidation, merger, or consolidation of the Company or any other
corporation.  Except as expressly
provided in the Plan or pursuant to action of the Committee under the Plan, no
issuance by the Company of Shares of any class, or securities convertible into
Shares of any class, shall affect, and no adjustment by reason thereof shall be
made with respect to, the number of Shares subject to an Award or the grant or
the exercise price of any Award.

 

ARTICLE
12.                       ADMINISTRATION

 

12.1                           Committee.  Unless and until the
Board delegates administration of the Plan to a Committee as set forth below,
the Plan shall be administered by the full Board, and for such purposes the
term “Committee” as used in this Plan shall be deemed to refer to the
Board.  The Board, at its discretion or
as otherwise necessary to comply with the requirements of Section 162(m) of
the Code, Rule 16b-3 promulgated under the Exchange Act or to the extent
required by any other applicable rule or regulation, may delegate
administration of the Plan to a Committee consisting of two or more members of
the Board.  Unless otherwise determined
by the Board, the Committee shall consist solely of two or more members of the
Board each of whom is an “outside director,” within the meaning of Section 162(m) of
the Code, a Non-Employee Director and an “independent director” under the
NASDAQ rules (or other principal securities market on which Shares are
traded); provided that any action taken by the Committee shall be valid and
effective, whether or not members of the Committee at the time of such action
are later determined not to have satisfied the requirements for membership set
forth in this Section 12.1 or otherwise provided in any charter of the
Committee. Notwithstanding the foregoing: (a) the full Board, acting by a
majority of its members in office, shall conduct the general administration of
the Plan with respect to all Awards granted to Independent Directors and for
purposes of such Awards the term “Committee” as used in

 

19

 

this Plan
shall be deemed to refer to the Board and (b) the Committee may delegate
its authority hereunder to the extent permitted by Section 12.5
hereof.  In its sole discretion, the
Board may at any time and from time to time exercise any and all rights and
duties of the Committee under the Plan except with respect to matters which
under Rule 16b-3 under the Exchange Act or Section 162(m) of the
Code, or any regulations or rules issued thereunder, are required to be
determined in the sole discretion of the Committee.  Except as may otherwise be provided in any
charter of the Committee, appointment of Committee members shall be effective
upon acceptance of appointment; Committee members may resign at any time by
delivering written notice to the Board; and vacancies in the Committee may only
be filled by the Board.

 

12.2                           Action by the Committee.  Unless otherwise
established by the Board or in any charter of the Committee, a majority of the
Committee shall constitute a quorum and the acts of a majority of the members
present at any meeting at which a quorum is present, and acts approved in
writing by a majority of the Committee in lieu of a meeting, shall be deemed
the acts of the Committee.  Each member
of the Committee is entitled to, in good faith, rely or act upon any report or
other information furnished to that member by any officer or other employee of
the Company or any Subsidiary or Affiliate, the Company’s independent certified
public accountants, or any executive compensation consultant or other
professional retained by the Company to assist in the administration of the
Plan.

 

12.3                           Authority of Committee.  Subject to any
specific designation in the Plan, the Committee has the exclusive power,
authority and discretion to:

 

(a)                                  Designate Participants to receive Awards;

 

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

 

(c)                                  Determine the number of Awards to be granted and the number
of Shares to which an Award will relate;

 

(d)                                 Determine the terms and conditions of any Award granted
pursuant to the Plan, including, but not limited to, the exercise price, grant
price, or purchase price, any restrictions or limitations on the Award, any
schedule for lapse of forfeiture restrictions or restrictions on the
exercisability of an Award, and accelerations or waivers thereof, any
provisions related to non-competition and recapture of gain on an Award, based
in each case on such considerations as the Committee in its sole discretion
determines; provided, however,
that the Committee shall not have the authority to accelerate the vesting or
waive the forfeiture of any Performance-Based Awards intended to qualify as
Qualified Performance Based-Compensation, except as permitted under Section 162(m) of
the Code;

 

(e)                                  Determine whether, to what extent, and pursuant to what
circumstances an Award may be settled in, 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;

 

(f)                                    Prescribe the form of each Award Agreement, which need not be
identical for each Participant and may vary for Participants outside the United
States;

 

20

 

(g)                                 Decide all other matters that must be determined in
connection with an Award;

 

(h)                                 Establish, adopt, or revise any rules and regulations
including adopting sub-plans to the Plan for the purposes of complying with
foreign laws an/or taking advantage of tax favorable treatment for Awards
granted to Participants outside the United States, as it may deem necessary or
advisable to administer the Plan;

 

(i)                                     To suspend or terminate the Plan at any time provided that
such suspension or termination does not impair rights and obligations under any
outstanding Award without written consent of the affected Participant.

 

(j)                                     Interpret the terms of, and any matter arising pursuant to,
the Plan or any Award Agreement; and

 

(k)                                  Make all other decisions and determinations that may be
required pursuant to the Plan or as the Committee deems necessary or advisable
to administer the Plan.

 

12.4                           Decisions Binding.  The Committee’s
interpretation of the Plan, any Awards granted pursuant to the Plan, any Award
Agreement and all decisions and determinations by the Committee with respect to
the Plan are final, binding, and conclusive on all parties.

 

12.5                           Delegation of Authority.  To the extent permitted by applicable law,
the Board may from time to time delegate to a committee of one or more members
of the Board or one or more officers of the Company the authority to grant or
amend Awards to Participants other than (a) Employees who are subject to Section 16
of the Exchange Act, (b) Covered Employees, or (c) officers of the
Company (or Directors) to whom authority to grant or amend Awards has been
delegated hereunder.  For the avoidance
of doubt, provided it meets the limitation in the preceding sentence, this
delegation shall include the right to modify Awards as necessary to accommodate
changes in the laws or regulations, including in jurisdictions outside the
United States.  Any delegation hereunder
shall be subject to the restrictions and limits that the Board specifies at the
time of such delegation, and the Board may at any time rescind the authority so
delegated or appoint a new delegatee.  At
all times, the delegatee appointed under this Section 12.5 shall serve in
such capacity at the pleasure of the Board.

 

ARTICLE 13.                       EFFECTIVE AND EXPIRATION DATE

 

13.1                           Effective Date.  The Plan is
effective as of the date the Plan is approved by the Company’s stockholders
(the “Effective Date”).  The Plan
will be deemed to be approved by the stockholders if it is approved either:

 

(a)                                  By a majority of the votes cast at a duly held stockholder’s
meeting at which a quorum representing a majority of outstanding voting stock
is, either in person or by proxy, present and voting on the plan; or

 

(b)                                 By a method and in a degree that would be treated as adequate
under Delaware law in the case of an action requiring stockholder approval.

 

21

 

13.2                           Expiration Date.  The Plan will expire
on, and no Award may be granted pursuant to the Plan after the tenth
anniversary of the Effective Date, except that no Incentive Stock Options may
be granted under the Plan after the earlier of the tenth anniversary of (a) the
date the Plan is approved by the Board or (b) the Effective Date.  Any Awards that are outstanding on the tenth
anniversary of the Effective Date shall remain in force according to the terms
of the Plan and the applicable Award Agreement.

 

ARTICLE 14.                       AMENDMENT, MODIFICATION, AND TERMINATION

 

14.1                           Amendment, Modification, and
Termination.  Subject to Section 15.14 hereof, with
the approval of the Board, at any time and from time to time, the Committee may
terminate, amend or modify the Plan; provided,
however, that (a) to the extent necessary and desirable to
comply with any applicable law, regulation, or stock exchange rule, the Company
shall obtain stockholder approval of any Plan amendment in such a manner and to
such a degree as required, and (b) stockholder approval shall be required
for any amendment to the Plan that (i) increases the number of shares
available under the Plan (other than any adjustment as provided by Article 11),
or (ii) permits the Committee to extend the exercise period for an Option
beyond ten years from the date of grant. 
Notwithstanding any provision in this Plan to the contrary, absent
approval of the stockholders of the Company, no Option or SAR may be amended to
reduce the per share exercise price of the shares subject to such Option or SAR
below the per share exercise price as of the date the Option or SAR is granted
and, except as permitted by Article 11, (a) no Option or SAR may be
granted in exchange for, or in connection with the cancellation, surrender or
substitution of an Option or SAR having a higher per share exercise price and (b) no
Option or SAR may be cancelled in exchange for, or in connection with the payment
of a cash amount.

 

14.2                           Awards Previously Granted.  Except with respect
to amendments made  pursuant to Section 15.14
hereof, no termination, amendment, or modification of the Plan shall adversely
affect in any material way any Award previously granted pursuant to the Plan
without the prior written consent of the Participant; provided,
however, that an amendment or
modification that may cause an Incentive Stock Option to become a Non-Qualified
Stock Option shall not be treated as adversely affecting the rights of the
Participant.

 

ARTICLE 15.                       GENERAL PROVISIONS

 

15.1                           No Rights to Awards.  No Eligible
Individual or other person shall have any claim to be granted any Award
pursuant to the Plan, and neither the Company nor the Committee is obligated to
treat Eligible Individuals, Participants or any other persons uniformly.

 

15.2                           No Stockholders Rights.  Except as otherwise
provided herein, a Participant shall have none of the rights of a stockholder
with respect to Shares covered by any Award, including to the right to vote or
receive dividends, until the Participant becomes the record owner of such
Shares, notwithstanding the exercise of an Option or other Award.

 

15.3                           Withholding.  The Company or any
Subsidiary or Affiliate, as appropriate, shall have the authority and the right
to deduct or withhold, or require a Participant to remit to the

 

22

 

Company, an
amount sufficient to satisfy U.S. federal, state, and local taxes and taxes
imposed by jurisdictions outside of the United States (including income tax,
social insurance contributions, payment on account and any other taxes that may
be due) required by law to be withheld with respect to any taxable event
concerning a Participant arising as a result of this Plan or to take such other
action as may be necessary in the opinion of the Company or a Subsidiary or
Affiliate, as appropriate, to satisfy withholding obligations for the payment
of taxes.  The Committee may in its
discretion and in satisfaction of the foregoing requirement allow a Participant
to elect to have the Company withhold Shares otherwise issuable under an Award
(or allow the return of Shares) having a Fair Market Value equal to the sums
required to be withheld.  No Shares shall
be delivered hereunder to any Participant or other person until the Participant
or such other person has made arrangements acceptable to the Committee for the
satisfaction of these tax obligations with respect to any taxable event
concerning the Participant or such other person arising as a result of Awards
made under this Plan.

 

15.4                           No Right to Employment or Services.  Nothing in the Plan
or any Award Agreement shall interfere with or limit in any way the right of
the Company or any Subsidiary or Affiliate to terminate any Participant’s
employment or services at any time, nor confer upon any Participant any right
to continue in the employ or service of the Company or any Subsidiary or
Affiliate.

 

15.5                           Unfunded Status of Awards.  The Plan is intended
to be an “unfunded” plan for incentive compensation.  With respect to any payments not yet made to
a Participant pursuant to an Award, nothing contained in the Plan or any Award
Agreement shall give the Participant any rights that are greater than those of
a general creditor of the Company or any Subsidiary or Affiliate.

 

15.6                           Indemnification.  To the extent
allowable pursuant to applicable law, each member of the Committee or of the
Board shall be indemnified and held harmless by the Company from any loss,
cost, liability, or expense that may be imposed upon or reasonably incurred by
such member in connection with or resulting from any claim, action, suit, or
proceeding to which he or she may be a party or in which he or she may be
involved by reason of any action or failure to act pursuant to the Plan and
against and from any and all amounts paid by him or her in satisfaction of
judgment in such action, suit, or proceeding against him or her; provided he or she gives the Company an
opportunity, at its own expense, to handle and defend the same before he or she
undertakes to handle and defend it on his or her own behalf.  The foregoing right of indemnification shall
not be exclusive of any other rights of indemnification to which such persons
may be entitled pursuant to the Company’s Certificate of Incorporation or
Bylaws, as a matter of law, or otherwise, or any power that the Company may
have to indemnify them or hold them harmless.

 

15.7                           Relationship to other Benefits.  No payment pursuant
to the Plan shall be taken into account in determining any benefits pursuant to
any pension, retirement, savings, profit sharing, group insurance, termination
programs and/or indemnities or severance payments, welfare or other benefit
plan of the Company or any Subsidiary or Affiliate except to the extent
otherwise expressly provided in writing in such other plan or an agreement
thereunder.

 

23

 

15.8                           Expenses.  The expenses of
administering the Plan shall be borne by the Company and/or its Subsidiaries
and/or Affiliates.

 

15.9                           Titles and Headings.  The titles and
headings of the Sections in the Plan are for convenience of reference only and,
in the event of any conflict, the text of the Plan, rather than such titles or
headings, shall control.

 

15.10                     Fractional Shares.  No fractional Shares
shall be issued and the Committee shall determine, in its discretion, whether
cash shall be given in lieu of fractional shares or whether such fractional
shares shall be eliminated by rounding up or down as appropriate.

 

15.11                     Limitations Applicable to Section 16 Persons.  Notwithstanding any
other provision of the Plan, the Plan, and any Award granted or awarded to any
Participant who is then subject to Section 16 of the Exchange Act, shall
be subject to any additional limitations set forth in any applicable exemptive rule under
Section 16 of the Exchange Act (including any amendment to Rule 16b-3
under the Exchange Act) that are requirements for the application of such
exemptive rule.  To the extent permitted
by applicable law, the Plan and Awards granted or awarded hereunder shall be
deemed amended to the extent necessary to conform to such applicable exemptive
rule.

 

15.12                     Government and Other Regulations.  The obligation of
the Company to make payment of awards in Shares or otherwise shall be subject
to all applicable laws, rules, and regulations of the United States and
jurisdictions outside the United States, and to such approvals by government
agencies, including government agencies in jurisdictions outside of the United
States, in each case as may be required or as the Company deems necessary or
advisable.  Without limiting the
foregoing, the Company shall have no obligation to issue or deliver evidence of
title for Shares subject to Awards granted hereunder prior to: (i) obtaining
any approvals from governmental agencies that the Company determines are
necessary or advisable, and (ii) completion of any registration or other
qualification with respect to the Shares under any applicable law in the United
States or in a jurisdiction outside of the United States or ruling of any
governmental body that the Company determines to be necessary or advisable or
at a time when any such registration or qualification is not current, has been
suspended or otherwise has ceased to be effective.  The inability or impracticability of the
Company to obtain or maintain authority from any regulatory body having
jurisdiction, which authority is deemed by the Company’s counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall
relieve the Company of any liability in respect of the failure to issue or sell
such Shares as to which such requisite authority shall not have been
obtained.  The Company shall be under no
obligation to register pursuant to the Securities Act, as amended, any of the
Shares paid pursuant to the Plan.  If the
Shares paid pursuant to the Plan may in certain circumstances be exempt from
registration pursuant to the Securities Act, as amended, the Company may
restrict the transfer of such Shares in such manner as it deems advisable to
ensure the availability of any such exemption.

 

15.13                     Governing Law.  The Plan and all
Award Agreements shall be construed in accordance with and governed by the laws
of the State of Texas.

 

24

 

15.14                     Section 409A.  Except as provided in Section 15.15
hereof, to the extent that the Committee determines that any Award granted
under the Plan is subject to Section 409A of the Code, the Award Agreement
evidencing such Award shall incorporate the terms and conditions required by Section 409A
of the Code.  To the extent applicable, the Plan and Award Agreements shall be
interpreted in accordance with Section 409A of the Code and Department of
Treasury regulations and other interpretive guidance issued thereunder,
including without limitation any such regulations or other guidance that may be
issued after the Effective Date. 
Notwithstanding any provision of the Plan to the contrary, in the event
that following the Effective Date the Committee determines that any Award may
be subject to Section 409A of the Code and related Department of Treasury
guidance (including such Department of Treasury guidance as may be issued after
the Effective Date), the Committee may adopt such amendments to the Plan and
the applicable Award Agreement or adopt other policies and procedures
(including amendments, policies and procedures with retroactive effect), or
take any other actions, that the Committee determines are necessary or
appropriate to (a) exempt the Award from Section 409A of the Code
and/or preserve the intended tax treatment of the benefits provided with
respect to the Award, or (b) comply with the requirements of Section 409A
of the Code and related Department of Treasury guidance and thereby avoid the
application of any penalty taxes under such Section.

 

15.15                     No Representations or Covenants with respect to Tax
Qualification.  Although the Company may endeavor to (1) qualify
an Award for favorable tax treatment under the laws of the United States or
jurisdictions outside of the United States (e.g., incentive
stock options under Section 422 of the Code or French-qualified stock
options) or (2) avoid adverse tax treatment (e.g.,
under Section 409A of the Code), the Company makes no representation to
that effect and expressly disavows any covenant to maintain favorable or avoid
unfavorable tax treatment, anything to the contrary in this Plan, including Section 15.14
hereof, notwithstanding.  The Company
shall be unconstrained in its corporate activities without regard to the
potential negative tax impact on holders of Awards under the Plan.

 

  * 
*  *  *

 

25

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