Document:

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                                                                   Exhibit 10.16

                        AMENDMENT TO EMPLOYMENT AGREEMENT

         This Amendment (the "Amendment"), effective as of October 20, 2003 (the
"Effective Date"), to the employment agreement executed on April 12, 2002 (the
"Employment Agreement") by and between Eyetech Pharmaceuticals, Inc., a Delaware
corporation (the "Company"), and Anthony P. Adamis, M.D., an individual (the
"Executive").

                                   WITNESSETH:

         WHEREAS, the Company and the Executive entered into the Employment
Agreement; and

         WHEREAS, the Company and the Executive desire to amend the Employment
Agreement to reflect changes which the parties hereby agree to in connection
with the Company's continued employment of the Executive;

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth herein and for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:

1.       Amendments - The Employment Agreement shall be amended to include the
         following provisions.

         1.1      Term. This Agreement will remain in force and effect
                  throughout the term of the Executive's employment with the
                  Company. Executive's employment with the Company may be
                  terminated by either the Company or the Executive at any time
                  subject only to the severance provisions contained in section
                  1.2 hereof.

         1.2      Termination and Severance. The Severance payments provided in
                  this Amendment shall be the sole payments and benefits for
                  which the Executive shall be eligible at the conclusion of his
                  employment with the Company for any reason and shall supersede
                  any and all prior agreements or arrangements for
                  post-termination benefits.

                  (a)      In the event Executive's employment terminates as a
                           result of a voluntary termination by Executive for
                           Good Reason, or a termination by the Company without
                           Cause, upon execution of an effective general release
                           of all claims against the Company, its employees,
                           officers, directors and agents, in a form reasonably
                           acceptable to the Company: (i) Executive shall
                           receive twelve (12) monthly payments each equal in
                           amount to one-twelfth (1/12th) of Executive's then
                           base salary, less applicable state and federal
                           withholdings; and (ii) for a period of twelve (12)
                           months (or until comparable benefits coverage becomes
                           available to Executive, if sooner), the Company shall
                           reimburse Executive (or pay him directly, at the
                           Company's option) the costs associated with the
                           continuation of Executive's and his dependents'
                           medical and dental benefits under the Consolidated
                           Omnibus Budget Reconciliation Act of 1985, as amended
                           ("COBRA") as in effect immediately prior to
                           Executive's termination of
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                           employment.

                  (b)      For purposes of this Amendment, "Good Reason" means
                           that any of the following are undertaken without
                           Executive's express written consent: (i) the
                           assignment to Executive of any duties or
                           responsibilities which result in any material
                           diminution or adverse change of Executive's position,
                           status or circumstances of employment; (ii) the
                           taking of any action by the Company which would
                           adversely affect Executive's participation in, or
                           reduce Executive's benefits under, the Company's
                           benefit plans (including equity benefits) as of the
                           time this Amendment is executed; (iii) a relocation
                           of Executive's principal office to a location more
                           than thirty-five (35) miles from Boston,
                           Massachusetts, except for required travel by
                           Executive on the Company's business; or (iv) any
                           failure by the Company to obtain the assumption of
                           the Employment Agreement by any successor or assign
                           of the Company. For purposes of this Amendment,
                           "Cause" means: (V) an intentional action or
                           intentional failure to act by Executive which was
                           performed in bad faith and to the material detriment
                           of the Company; (W) Executive intentionally refuses
                           or intentionally fails to act in accordance with any
                           lawful and proper direction or order of the Board;
                           (X) Executive willfully and habitually neglects the
                           duties of his employment; or (Z) Executive is
                           convicted of a felony crime involving moral
                           turpitude; provided, however, that in the event that
                           any of the foregoing events under clauses (V), (W),
                           (X) or (Y) above is capable of being cured, the
                           Company shall provide written notice to Executive
                           describing the nature of such event and Executive
                           shall thereafter have ten (10) business days to cure
                           such event.

                  (c)      In the event Executive's employment terminates as a
                           result of termination of Executive by the Company or
                           its successor without Cause, or by the Executive
                           voluntarily for Good Reason, within the three (3)
                           months before or twelve (12) months following a
                           Change in Control Event, upon execution of an
                           effective general release of all claims against the
                           Company, its employees, officers, directors and
                           agents, in a form reasonably acceptable to the
                           Company: (i) Executive shall receive, within fifteen
                           (15) days of such termination, one lump sum payment
                           equivalent to fifteen (15) months of his then Base
                           Salary, less applicable state and federal
                           withholdings; (ii) Executive's unvested Equity
                           Rights, as defined below, shall become vested and
                           exercisable as set forth in Section 1.3(b); and (iii)
                           for a period of fifteen (15) months (or until
                           comparable benefits coverage becomes available to
                           Executive, if sooner), the Company shall reimburse
                           Executive (or pay him directly at the Company's
                           option) the costs associated with the continuation of
                           Executive's and his dependents' medical and dental
                           benefits under COBRA as in effect immediately prior
                           to Executive's termination of employment. For
                           purposes of this paragraph, Executive's "Base Salary"
                           shall be the greater of the amount in effect either
                           immediately prior to the Change in Control Event or
                           the termination date of Executive's employment. The
                           benefits provided under

                                      -2-
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                           this Section 1.2(c) shall be in lieu of any benefits
                           the Executive would have otherwise been entitled to
                           pursuant to Section 1.2(a) of this Agreement.

         (d)      For purposes of this Amendment, a "Change in Control Event"
                  shall mean:

                  (i)      The acquisition by an individual, entity or group
                           (within the meaning of Section 13(d)(3) or 14(d)(2)
                           of the Exchange Act) (a "Person") of beneficial
                           ownership of any capital stock of the Company if,
                           after such acquisition, such Person beneficially owns
                           (within the meaning of Rule 13d-3 promulgated under
                           the Exchange Act) 50% or more of either (x) the
                           then-outstanding shares of common stock of the
                           Company (the "Outstanding Company Common Stock") or
                           (y) the combined voting power of the then-outstanding
                           securities of the Company entitled to vote generally
                           in the election of directors (the "Outstanding
                           Company Voting Securities"); provided, however, that
                           for purposes of this subsection (i), the following
                           acquisitions shall not constitute a Change in Control
                           Event: (A) any acquisition directly from the Company
                           (excluding an acquisition pursuant to the exercise,
                           conversion or exchange of any security exercisable
                           for, convertible into or exchangeable for common
                           stock or voting securities of the Company, unless the
                           Person exercising, converting or exchanging such
                           security acquired such security directly from the
                           Company or an underwriter or agent of the Company),
                           (B) any acquisition by any employee benefit plan (or
                           related trust) sponsored or maintained by the Company
                           or any corporation controlled by the Company, or (C)
                           any acquisition by any corporation pursuant to a
                           Business Combination (as defined below) which
                           complies with clauses (x) and (y) of subsection (iii)
                           of this definition; or

                  (ii)     Such time as the Continuing Directors (as defined
                           below) do not constitute a majority of the Board (or,
                           if applicable, the Board of Directors of a successor
                           corporation to the Company), where the term
                           "Continuing Director" means at any date a member of
                           the Board (x) who was a member of the Board on the
                           date of the initial adoption of this Amendment by the
                           Board or (y) who was nominated or elected subsequent
                           to such date by at least a majority of the directors
                           who were Continuing Directors at the time of such
                           nomination or election or whose election to the Board
                           was recommended or endorsed by at least a majority of
                           the directors who were Continuing Directors at the
                           time of such nomination or election; or

                  (iii)    The consummation of a merger, consolidation,
                           reorganization, recapitalization or share exchange
                           involving the Company or a sale or other disposition
                           of all or substantially all of the assets of the

                                      -3-
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                           Company (a "Business Combination"), unless,
                           immediately following such Business Combination, each
                           of the following two conditions is satisfied: (x) all
                           or substantially all of the individuals and entities
                           who were the beneficial owners of the Outstanding
                           Company Common Stock and Outstanding Company Voting
                           Securities immediately prior to such Business
                           Combination beneficially own, directly or indirectly,
                           more than 50% of the then-outstanding shares of
                           common stock and the combined voting power of the
                           then-outstanding securities entitled to vote
                           generally in the election of directors, respectively,
                           of the resulting or acquiring corporation or other
                           form of entity in such Business Combination (which
                           shall include, without limitation, a corporation
                           which as a result of such transaction owns the
                           Company or substantially all of the Company's assets
                           either directly or through one or more subsidiaries)
                           (such resulting or acquiring corporation or entity is
                           referred to herein as the "Acquiring Corporation") in
                           substantially the same proportions as their ownership
                           of the Outstanding Company Common Stock and
                           Outstanding Company Voting Securities, respectively,
                           immediately prior to such Business Combination and
                           (y) no Person (excluding the Acquiring Corporation or
                           any employee benefit plan (or related trust)
                           maintained or sponsored by the Company or by the
                           Acquiring Corporation) beneficially owns, directly or
                           indirectly, 30% or more of the then-outstanding
                           shares of common stock of the Acquiring Corporation,
                           or of the combined voting power of the
                           then-outstanding securities of such corporation
                           entitled to vote generally in the election of
                           directors (except to the extent that such ownership
                           existed prior to the Business Combination).

                  (iv)     Notwithstanding the foregoing, a Change in Control
                           Event will not be deemed to have occurred in the case
                           of a Management Buy Out. A "Management Buy Out" is
                           any event which would otherwise be deemed a "Change
                           in Control Event", in which the Executive, directly
                           or indirectly (as a beneficial owner) acquires equity
                           securities, including any securities convertible into
                           or exchangeable for equity securities, of the Company
                           or the Acquiring Corporation in connection with any
                           Change in Control Event.

1.3      Treatment of Equity Upon Change in Control Event. Upon a Change in
         Control Event, as defined in Section 1.2(d):

         (a)      50% of all of the Executive's unvested Equity Rights, as
                  defined below, shall become vested and immediately
                  exercisable; and

         (b)      If Executive's employment terminates as a result of the
                  circumstances

                                      -4-
<PAGE>
                  outlined in Section 1.2(c), and provided that Executive
                  executes an effective general release as required by Section
                  1.2(c), 100% of the Executive's unvested Equity Rights, as
                  defined below, shall then become vested and immediately
                  exercisable.

         (c)      For purposes of this Agreement, the term "Equity Rights" shall
                  mean only those equity rights, including but not limited to,
                  stock options, which are granted to the Executive on or after
                  the Effective Date. Accordingly, equity rights which have
                  previously been granted to the Executive are unaffected by
                  this Amendment.

1.4      Golden Parachute Taxes. Notwithstanding anything contained in this
         Amendment to the contrary, to the extent that payments and benefits
         provided under this Amendment to Executive and benefits provided to, or
         for the benefit of, Executive under any other Company plan or agreement
         (such payments or benefits are collectively referred to as the
         "Payments") would be subject to the excise tax (the "Excise Tax")
         imposed under Section 4999 of the Internal Revenue Code of 1986, as
         amended (the "Code"), the Payments shall be reduced (but not below
         zero) to the extent necessary so that no Payment to be made or benefit
         to be provided to the Executive shall be subject to the Excise Tax, but
         only if, by reason of such reduction, the net after-tax benefit
         received by Executive shall exceed the net after-tax benefit received
         by him if no such reduction was made. For purposes of this Section 1.4,
         "net after-tax benefit" shall mean (a) the Payments which Executive
         receives or is then entitled to receive from the Company that would
         constitute "parachute payments" within the meaning of Section 280G of
         the Code, less (b) the amount of all federal, state and local income
         taxes payable with respect to the foregoing calculated at the maximum
         marginal income tax rate for each year in which the foregoing shall be
         paid Executive (based on the rate in effect for such year as set forth
         in the Code as in effect at the time of the first payment of the
         foregoing), less (c) the amount of excise taxes imposed with respect to
         the payments and benefits described in (a) above by Section 4999 of the
         Code. The foregoing determination will be made by a nationally
         recognized accounting firm (the "Accounting Firm") selected by the
         Company (which may be, but will not be required to be, the Company's
         independent auditors). The Company will direct the Accounting Firm to
         submit its determination and detailed supporting calculations to both
         the Executive and the Company within fifteen (15) days after the date
         of termination of his employment. If the Accounting Firm determines
         that such reduction is required by this Section 1.4, the Executive, in
         his sole and absolute discretion, may determine which Payments shall be
         reduced to the extent necessary so that no portion thereof shall be
         subject to the excise tax imposed by Section 4999 of the Code, and the
         Company shall pay such reduced amount to him. The fees and expenses of
         the Accounting Firm for its services in connection with the
         determinations and calculations contemplated by this Section 1.4 will
         be borne by the Company.

1.5      No Duty to Seek Employment. Executive and the Company acknowledge and
         agree that nothing contained in this Amendment shall be construed as
         requiring

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<PAGE>
         Executive to seek or accept alternative or replacement employment in
         the event of his termination of employment by the Company for any
         reason, and no payment or benefit payable hereunder shall be
         conditioned on Executive's seeking or accepting such alternative or
         replacement employment.

2.       Reference to and Effect on the Employment Agreement

         2.1      On and after the date hereof, each reference to "this
                  Agreement," "hereunder," "hereof," "herein," or words of like
                  import shall mean and be a reference to the Employment
                  Agreement as amended hereby. No reference to this Amendment
                  need be made in any instrument or document at any time
                  referring to the Employment Agreement. A reference to the
                  Employment Agreement in any such instrument or document shall
                  be deemed to be a reference to the Employment Agreement as
                  amended hereby.

         2.2      Except as amended and/or superseded by this Amendment, the
                  provisions of the Employment Agreement shall remain in full
                  force and effect.

3.       Governing Law

         The Employment Agreement shall be governed by and construed in
         accordance with the laws of the State of New York without giving effect
         to principles of conflicts of laws.

4.       Counterparts

         This Amendment may be executed in two counterparts, each of which shall
         be deemed to be an original, but all of which together shall constitute
         one and the same instrument.

         IN WITNESS WHEREOF, the undersigned have executed this Amendment as of
the date first written above.

                                         EYETECH PHARMACEUTICALS, INC.

                                         By: /s/ GLENN SBLENDORIO
                                             -----------------------------------
                                         Name:  Glenn Sblendorio
                                         Title: CFO

                                         EXECUTIVE

                                         /s/ ANTHONY P. ADAMIS
                                             -----------------------------------
                                         Name:  Anthony P. Adamis, M.D.

                                      -6-exv10w1

 

EXHIBIT 10.1

ST. JOSEPH CAPITAL CORORATION

1996 STOCK INCENTIVE PLAN

     1. Purpose of the Plan

     The ST. JOSEPH CAPITAL CORPORATION 1996 STOCK INCENTIVE PLAN (hereinafter
referred to as the “Plan”) is intended to provide a means whereby directors and
key policy-making employees of St. Joseph Capital Corporation, a Delaware
corporation (hereinafter referred to as the “Company”), and its related
corporations may sustain a sense of proprietorship and personal involvement in
the continued development and financial success of the Company, and to
encourage them to remain with and devote their best efforts to the business of
the Company, thereby advancing the interests of the Company and its
shareholders. Accordingly, the Company may permit certain directors and
employees to acquire common stock of the Company (hereinafter referred to as
“Shares”) or otherwise participate in the financial success of the Company, on
the terms and conditions established herein. For purposes of the Plan, a
corporation shall be deemed a related corporation to the Company if such
corporation would be a parent or subsidiary corporation with respect to the
Company as defined in Section 424(e) or (f), respectively, of the Internal
Revenue Code of 1986, as amended (hereinafter referred to as the “Code”).

     2. Administration of the Plan

     The Plan shall be administered by the Human Resources Committee
(hereinafter referred to as the “Committee”) of the Board of Directors of the
Company (hereinafter referred to as the “Board”), which shall be comprised of
at least two (2) non-employee directors. The Committee shall have sole
authority to select the directors and employees from among those eligible to
whom Shares shall be sold under the Plan, to establish the number of such
Shares that may be sold to each such director and employee and the time when
certificates for such Shares shall be issued, and to prescribe the legend to be
affixed to the certificate representing such Shares. The Committee shall also
have the sole authority to select the directors and employees from among those
eligible to whom Shares or rights to participate in the appreciation of Shares
shall be granted. The Committee is authorized, subject to Board approval, to
interpret the Plan and may from time to time adopt such rules, regulations,
forms and agreements, not inconsistent with the provisions of the Plan, as it
may deem advisable to carry out the Plan. All decisions made by the Committee
in administering the Plan shall be subject to Board review.

     3. Shares Subject to the Plan

     The aggregate number of Shares that may be acquired by directors and
employees under the Plan shall be 425,000 Shares. Any Shares that remain
unissued at the termination of the Plan shall cease to be subject to the Plan,
but until termination of the Plan, the Company shall at all times make
available sufficient Shares to meet the requirements of the Plan. The
aggregate number of Shares which may be sold under the Plan shall be adjusted
to reflect a change in capitalization of the Company, such as a stock dividend
or stock split.

 

 

     4. Stock Options

     a. Type of Options. The Company may issue options that constitute
Incentive Stock Options (“Incentive Options”) under Section 422 of the Code and
options that do not constitute Incentive Options (“Nonqualified Options”) to
employees under the Plan. The grant of each option shall be confirmed by a
stock option agreement that shall be executed by the Company and the optionee
as soon as practicable after such grant. The stock option agreement shall
expressly state or incorporate by reference the provisions of the Plan and
state whether the option is an Incentive Option or Nonqualified Option.

     b. Terms of Options. Except as provided in Subparagraphs (c) and (d)
below, each option granted under the Plan shall be subject to the terms and
conditions set forth by the Committee in the stock option agreement including,
but not limited to, option price, option term and transferability.

     c. Additional Terms Applicable to All Options. Each option shall be
subject to the following terms and conditions:

	 	(i)
	 	Written Notice. An option may be exercised only
by giving written notice to the Company specifying the number
of Shares to be purchased.

	 	(ii)
	 	Method of Exercise. The aggregate option price
may, subject to the terms and conditions set forth by the
Committee in the stock option agreement, be paid in any one or
a combination of cash, personal check, personal note, Shares
owned or Plan awards which the optionee has an immediate right
to exercise.

	 	(iii)
	 	Death of Optionee. If an optionee terminates
employment due to death prior to exercise in full of any
options, his successor shall have the right to exercise the
options within a period of twelve months after the date of
such termination to the extent that the right was exercisable
at the date of such termination, or subject to such other
terms as may be determined by the Committee.

	 	(iv)
	 	Transferability. No option may be transferred by
an optionee.

     d. Additional Terms Applicable to Incentive Options. Each Incentive
Option shall be subject to the following terms and conditions:

	 	(i)
	 	Option Price. The option price per Share shall
be 100% of the fair market value of such Share on the date the
option is granted. Notwithstanding the

2

 

	 	
	 	preceding sentence, the option price per Share granted to an
individual who, at the time such option is granted, owns
stock possessing more than 10% of the total combined voting
power of all classes of stock of the Company or related
corporation (hereinafter referred to as a “10% Shareholder”)
shall not be less than 110% of the fair market value of such
Share on the date the option is granted.

	 	(ii)
	 	Term of Option. No option may be exercised more
than 10 years after the date of grant and no option granted to
a 10% Shareholder may be exercised more than 5 years after the
date of grant. Notwithstanding the preceding sentence, no
option may be exercised more than 3 months after the optionee
terminates employment with the Company or related corporation;
except that, if the optionee terminates employment due to his
disability (within the meaning of Section 22(e)(3) of the
Code), the Committee may extend such 3 month period for up to
an additional 9 months.

	 	(iii)
	 	Annual Exercise Limit. The aggregate fair
market value of Shares which may first become exercisable
during any calendar year shall not exceed $100,000. For
purposes of the preceding sentence, the fair market value of
each Share shall be determined on the date the option with
respect to such Share is granted.

     5. Restricted Stock Awards

     a. Grants. Restricted Stock Awards (“RSAs”) under the Plan shall be in
the form of Shares, restricted as to transfer and subject to forfeiture, and
shall be evidenced by restricted stock agreements in such form and consistent
with this Plan as the Committee shall approve from time to time.

     b. Restriction Period. RSAs awarded under the Plan shall be subject to
such terms, conditions, and restrictions, including without limitation:
prohibitions against transfer, substantial risks of forfeiture, attainment of
performance objectives and repurchase by the Company or right of first refusal,
and for such period or periods as shall be determined by the Committee at the
time of grant. The Committee shall have the power to permit, in its
discretion, an acceleration of the expiration of the applicable restriction
period with respect to any part or all of the RSAs awarded to a grantee.

     c. Restrictions Upon Transfer. RSAs awarded, and the right to vote
underlying Shares and to receive dividends thereon, may not be sold, assigned,
transferred, exchanged, pledged, hypothecated, or otherwise encumbered, except
as herein provided, during the restriction period applicable to such Shares.
Subject to the foregoing, and except as otherwise provided in the Plan, the
grantee shall have all the other rights of a shareholder including, but not
limited to, the right to receive dividends and the right to vote such Shares.

3

 

     d. Certificates. Each certificate issued in respect of RSAs awarded to a
grantee shall be deposited with the Company, or its designee, and shall bear
the following legend:

“This certificate and the shares represented hereby are subject to
the terms and conditions (including forfeiture and restrictions
against transfer) contained in the St. Joseph Capital Corporation
1996 Stock Incentive Plan and an Agreement entered into by the
registered owner. Release from such terms and conditions shall be
obtained only in accordance with the provisions of the Plan and
Agreement, a copy of each of which is on file in the office of the
Secretary of said Company.”

     e. Lapse of Restrictions. The Agreement shall specify the terms and
conditions upon which any restrictions upon Shares awarded under the Plan shall
lapse, as determined by the Committee. Upon the lapse of such restrictions,
Shares, free of the foregoing restrictive legend, shall be issued to the
grantee or his legal representative.

     f. Termination Prior to Lapse of Restrictions. In the event of a
grantee’s termination of employment prior to the lapse of restrictions
applicable to any RSAs awarded to such grantee, all Shares as to which there
still remain restrictions shall be forfeited by such grantee without payment of
any consideration to the grantee, and neither the grantee nor any successors,
heirs, assigns, or personal representatives of such grantee shall thereafter
have any further rights or interest in such Shares or certificates.

     6. Stock Appreciation Rights

     a. Grants. Stock Appreciation Rights (“SARs”) are rights entitling the
grantee to receive cash or Shares having a fair market value equal to the
appreciation in market value of a stated number of Shares from the date of
grant, or in the case of rights granted in tandem with or by reference to an
option granted prior to the grant of such rights, from the date of grant of the
related option to the date of exercise, which may be granted to such eligible
directors and employees as may be selected by the Committee.

     b. Terms of Grant. SARs may be granted in tandem with or with reference
to a related option, in which event the grantee may elect to exercise either
the option or the SAR, but not both, as to the same Share subject to the option
and the SAR, or the SAR may be granted independently of a related option. In
the event of a grant with a related option, the SAR shall be subject to the
terms and conditions of the related option. In the event of an independent
grant, the SAR shall be subject to the terms and conditions determined by the
Committee. SARs shall not be transferable, except that SARs may be exercised
by the executor, administrator or personal representative of the deceased
grantee within twelve months of the death of the grantee.

     c. Payment of Exercise. Upon exercise of an SAR, the grantee shall be
paid the excess of the then fair market value of the number of Shares to which
the SAR relates over the fair market

4

 

value of such number of Shares at the date of grant of the SAR or of the
related option, as the case may be. Such excess shall be paid in cash or in
Shares having a fair market value equal to such excess or in such combination
thereof as the Committee shall determine.

     7. Right of First Refusal

     If any Shares issued under the Plan are not readily tradable on an
established market on the date an owner intends to sell such Shares, such owner
shall first offer such Shares to the Company for purchase and the Company shall
have 30 days to exercise its right to purchase such Shares. The owner shall
give written notice to the Company stating that he has a bona fide offer for
the purchase of such Shares, stating the number of Shares to be sold, the name
and address of the person(s) offering to purchase the Shares and the purchase
price and terms of payment of such sale. The owner shall be entitled to
receive the same purchase price offered by such person(s) offering to purchase
such Shares. Payment may be in a lump sum or, if the lump sum exceeds
$100,000, in substantially equal annual or more frequent installments over a
period not exceeding 5 years in the discretion of the Committee. If a method
of deferred payments is selected, the unpaid balance shall earn interest at a
rate that is substantially equal to the rate at which the Company could borrow
the amount due and shall be secured by a pledge of the Shares purchased or such
other adequate security as agreed to by the Company and the owner. For
purposes of this Paragraph, Shares shall be considered not readily tradable on
an established market if such Shares are not publicly tradable or because such
Shares are subject to a trading limitation under any Federal or state
securities law or regulation that would make such Shares less freely tradable
than stock not so restricted. For purposes of this Paragraph, an owner shall
include any person who acquires Shares from any other person and for any
reason; including, but not limited to, by gift, death or sale.

     8. Amendment or Termination of the Plan

     The Board may in its discretion terminate the Plan at any time with
respect to any Shares that are not subject to issued but unexercised options,
and may alter or amend the Plan or any part thereof from time to time.

     9. Term of Plan

     The Plan shall be effective upon the date of its adoption by the Board;
provided that, Incentive Options may be granted only if the Plan is approved by
the shareholders within 12 months before or after the date of adoption. Unless
sooner terminated under the provisions of Paragraph 8, Shares, SARs and RSAs
shall not be awarded under the Plan after the expiration of 10 years from the
effective date of the Plan.

     10. Rights as Shareholder

     Upon delivery of any Share to an employee, such employee shall have all of
the rights of a shareholder of the Company with respect to such Share,
including the right to vote such Share and

5

 

to receive all dividends or other distributions paid with respect to such
Share.

     11. Merger or Consolidation

     In the event the Company is merged or consolidated with another
corporation and the Company is not the surviving corporation, or a change of
control occurs, all outstanding options, SARs and RSAs shall become immediately
and fully exercisable and unrestricted, and the surviving corporation shall
exchange options and SARs issued under this Plan for options and SARs (with the
same aggregate option price) to acquire and participate in that number of
shares in the surviving corporation that have a fair market value equal to the
fair market value (determined on the date of such merger or consolidation) of
Shares that the grantee is entitled to acquire and participate in under this
Plan on the date of such merger, consolidation or change of control.

     12. Employment Relationship

     An employee shall be considered to be in the employment of the Company or
related corporation as long as he or she remains an employee of the Company or
related corporation. Nothing herein shall confer on any employee the right to
continued employment with the Company or related corporation or affect the
right of the Company or related corporation to terminate such employment.

     13. Withholding of Tax

     To the extent the award, issuance or exercise of Shares or SARs results in
the receipt of compensation by an employee, the Company is authorized to
withhold from any other cash compensation then or thereafter payable to such
employee any tax required to be withheld by reason of the receipt of the
compensation. Alternatively, the employee may tender a personal check in the
amount of tax required to be withheld.

6

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