Document:

Exhibit 10.2

 

 

2008 Cash Bonus Plan Summary

 

As reported in the FGX
International Holdings Limited (the “Company”) form 8-K dated February 6,
2008, the Compensation Committee of the Board of Directors of the Company
adopted the 2008 Cash Bonus Plan (the “Plan”) for the Company’s fiscal year
ending January 3, 2009.  Bonus payouts under the Plan will constitute
Performance Units under the Company’s 2007 Incentive Compensation Plan. 
The Compensation Committee designated employees serving in the position of vice
president and above of the Company (“Executive Officers”), and the Chief
Executive Officer may designate certain other key employees of the Company or
its subsidiaries, to participate in the Plan.

 

The Compensation
Committee approved a target bonus amount, expressed as a percentage of salary,
for each Executive Officer.  The following table sets forth the target
bonus percentage for the Company’s principal executive officer, principal
financial officer and each other named executive officer at the time.

 

	
   

  	
   

  	
   

  	
   

  	
  Target as a % of

  	
   

  
	
  Executive Officer

  	
   

  	
  Title

  	
   

  	
  Base Salary

  	
   

  
	
  Alec Taylor

  	
   

  	
  Chief Executive Officer

  	
   

  	
  50

  	
   

  
	
  John Flynn Jr.

  	
   

  	
  President

  	
   

  	
  50

  	
   

  
	
  Gerald Kitchen

  	
   

  	
  Exec. VP — Operations

  	
   

  	
  50

  	
   

  
	
  Anthony Di Paola

  	
   

  	
  Exec. VP — Chief Financial Officer

  	
   

  	
  50

  	
   

  
	
  Steven Crellin

  	
   

  	
  Exec. VP — Sales

  	
   

  	
  50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Bonus payouts under the
Plan will be based on the Company’s achievement of an earnings per share (EPS)
goal for fiscal 2008 set by the Compensation Committee, as adjusted to exclude
certain non-recurring items that occur outside of the ordinary course of the
Company’s business operations.  Achievement of the adjusted EPS goal will
produce bonus payouts equal to the target amounts, while achievement of
adjusted EPS between 95% and 110% of the adjusted EPS goal will produce a commensurate
reduction or increase in the bonus payouts.  There will be no bonus payout
for achievement of adjusted EPS below 95% of the goal unless authorized by the
Compensation Committee, and bonus payouts are capped at 110% of the target
bonus amount.

 

After the end of the
fiscal year, the Compensation Committee will evaluate the Company’s performance
against the EPS goal and will determine whether a bonus payout is required for
all participants.  In general, a participant must remain an employee through
the date of the bonus payout to be eligible for payment.Exhibit 4.2

 

Appendix
A

 

 

 

INOVIO
BIOMEDICAL CORPORATION

 

2007
OMNIBUS INCENTIVE PLAN

As
Amended

 

Adopted
by the Board of Directors: March 31, 2007

Approved
by Stockholders: May 4, 2007

 

As
Amended by the Board of Directors: March 27, 2008

As
Approved by Stockholders: May 2, 2008

 

 

INOVIO
BIOMEDICAL CORPORATION

 

2007
OMNIBUS INCENTIVE PLAN

 

ARTICLE I

 

PURPOSE
AND ADOPTION OF THE PLAN

 

1.01.                        Purpose.  The purpose of the Inovio Biomedical Corporation 2007 Incentive Plan (as amended from
time to time, the “Plan”) is to assist in attracting and retaining highly
competent employees, directors and consultants to act as an incentive in
motivating selected employees, directors and consultants of the Company
and its Subsidiaries to achieve long-term corporate objectives
and to enable stock-based and cash-based incentive awards to qualify as
performance-based compensation for purposes of the tax deduction limitations
under Section 162(m) of the Code.

 

1.02.                        Adoption
and Term.  The Plan has been approved
by the Board to be effective as of March 31, 2007, subject to the approval
of the stockholders of the Company.  The
Plan shall remain in effect until terminated by action of the Board; provided,
however, that no Awards may be granted hereunder after the tenth anniversary of
its initial effective date.

 

ARTICLE
II

 

DEFINITIONS

 

For the purpose of this
Plan, capitalized terms shall have the following meanings:

 

2.01.                        Award
means any one or a combination of Non-Qualified Stock Options or Incentive
Stock Options described in Article VI, Stock Appreciation Rights described
in Article VI, Restricted Shares and Restricted Stock Units described in Article VII,
Performance Awards described in Article VIII, other stock-based Awards
described in Article IX, short-term cash incentive Awards described in Article X
or any other Award made under the terms of the Plan.

 

2.02.                        Award
Agreement means a written agreement between the Company and a Participant
or a written acknowledgment from the Company to a Participant specifically
setting forth the terms and conditions of an Award granted under the Plan.

 

2.03.                        Award
Period means, with respect to an Award, the period of time, if any, set
forth in the Award Agreement during which specified target performance goals
must be achieved or other conditions set forth in the Award Agreement must be
satisfied.

 

2.04.                        Beneficiary
means an individual, trust or estate who or which, by a written designation of
the Participant filed with the Company, or if no such written designation is
filed, by operation of law, succeeds to the rights and obligations of the
Participant under the Plan and the Award Agreement upon the Participant’s
death.

 

2.05.                        Board
means the Board of Directors of the Company.

 

2.06.                        Change
in Control means, and shall be deemed to have occurred upon the occurrence
of, any one of the following events:

 

(a)          The
acquisition in one or more transactions, other than from the Company, by any
individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act), other than the Company, a Subsidiary or any
employee benefit plan (or related trust) sponsored or maintained by 

 

 

the Company or a Subsidiary, of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of a
number of Company Voting Securities in excess of 25% of the Company Voting
Securities unless such acquisition has been approved by the Board;

 

(b)         Any
election has occurred of persons to the Board that causes two-thirds of the
Board to consist of persons other than (i) persons who were members of the
Board on the effective date of the Plan and (ii) persons who were
nominated for elections as members of the Board at a time when two-thirds of
the Board consisted of persons who were members of the Board on the effective
date of the Plan, provided, however, that any person nominated for election by
a Board at least two-thirds of whom constituted persons described in clauses (i) and/or
(ii) or by persons who were themselves nominated by such Board shall, for
this purpose, be deemed to have been nominated by a Board composed of persons
described in clause (i);

 

(c)                                  The
consummation (i.e. closing) of a
reorganization, merger or consolidation involving the Company, unless,
following such reorganization, merger or consolidation, all or substantially
all of the individuals and entities who were the respective beneficial owners
of the Outstanding Common Stock and Company Voting Securities immediately prior
to such reorganization, merger or consolidation, following such reorganization,
merger or consolidation beneficially own, directly or indirectly, more than
seventy five percent (75%) of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors or trustees,
as the case may be, of the entity resulting from such reorganization, merger or
consolidation in substantially the same proportion as their ownership of the
Outstanding Common Stock and Company Voting Securities immediately prior to
such reorganization, merger or consolidation, as the case may be;

 

(d)                                 The
consummation (i.e. closing) of a
sale or other disposition of all or substantially all the assets of the
Company, unless, following such sale or disposition, all or substantially all
of the individuals and entities who were the respective beneficial owners of
the Outstanding Common Stock and Company Voting Securities immediately prior to
such reorganization, merger or consolidation, following such reorganization,
merger or consolidation beneficially own, directly or indirectly, more than
seventy five percent (75%) of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors or trustees,
as the case may be, of the entity purchasing such assets in substantially the
same proportion as their ownership of the Outstanding Common Stock and Company
Voting Securities immediately prior to such sale or disposition, as the case
may be; or

 

(e)                                  a
complete liquidation or dissolution of the Company.

 

2.07.                        Code
means the Internal Revenue Code of 1986, as amended. References to a section of
the Code shall include that section and any comparable section or sections of
any future legislation that amends, supplements or supersedes said section.

 

2.08.                        Committee
means the Compensation Committee of the Board.

 

2.09.                        Company
means Inovio Biomedical Corporation and its successors.

 

2.10.                        Common
Stock means the common stock of the Company, par value $0.001 per share.

 

2.11.                        Company
Voting Securities means the combined voting power of all outstanding voting
securities of the Company entitled to vote generally in the election of
directors to the Board.

 

2.12.                        Date of
Grant means the date designated by the Committee as the date as of which it
grants an Award, which shall not be earlier than the date on which the
Committee approves the granting of such Award.

 

 

2.13.                        Dividend
Equivalent Account means a bookkeeping account in accordance with under Section 11.17
and related to an Award that is credited with the amount of any cash dividends
or stock distributions that would be payable with respect to the shares of
Common Stock subject to such Awards had such shares been outstanding shares of
Common Stock.

 

2.14                           Exchange
Act means the Securities Exchange Act of 1934, as amended.

 

2.15.                        Exercise
Price means, with respect to a Stock Appreciation Right, the amount
established by the Committee in the Award Agreement which is to be subtracted
from the Fair Market Value on the date of exercise in order to determine the
amount of the payment to be made to the Participant, as further described in Section 6.02(b).

 

2.16.                        Fair
Market Value means, on any date, (i) the closing sale price of a share
of Common Stock, as reported on the American Stock Exchange (or other
established stock exchange on which the Common Stock is regularly traded) on
such date or, if there were no sales on such date, on the last date preceding
such date on which a sale was reported; or (ii) if shares of Common Stock
are not listed for trading on an established stock exchange, Fair Market Value
shall be determined by the Committee in good faith.

 

2.17.                        Incentive
Stock Option means a stock option within the meaning of Section 422 of
the Code.

 

2.18.                        Merger
means any merger, reorganization, consolidation, exchange, transfer of assets
or other transaction having similar effect involving the Company.

 

2.19.                        Non-Qualified
Stock Option means a stock option which is not an Incentive Stock Option.

 

2.20.                        Options
means all Non-Qualified Stock Options and Incentive Stock Options granted at
any time under the Plan.

 

2.21.                        Outstanding
Common Stock means, at any time, the issued and outstanding shares of
Common Stock.

 

2.22.                        Participant
means a person designated to receive an Award under the Plan in accordance with
Section 5.01.

 

2.23.                        Performance
Awards means Awards granted in accordance with Article VIII.

 

2.24.                        Performance
Goals are based on one or more of
the following measures and intended to comply with the performance-based
compensation exception under Code Section 162(m):

 

·                                            Net
earnings or net income (before or after taxes)

 

·                                           Earnings
per share or earnings per share growth, total units, or unit growth

 

·                                            Net
sales, sales growth, total revenue, or revenue growth

 

·                                            Net
operating profit

 

·                                            Return
measures (including, but not limited to, return on assets, capital, invested
capital, equity, sales, or revenue)

 

·                                            Cash
flow (including, but not limited to, operating cash flow, free cash flow, cash
flow return on equity, and cash flow return on investment)

 

 

·                                            Earnings
before or after taxes, interest, depreciation, and/or amortization

 

·                                            Gross
or operating margins

 

·                                            Productivity
ratios

 

·                                            Share
price or relative share price (including, but not limited to, growth measures
and total stockholder return)

 

·                                            Expense
targets

 

·                                            Margins

 

·                                            Operating
efficiency

 

·                                            Market
share or change in market share

 

·                                            Customer
retention or satisfaction

 

·                                            Working
capital targets

 

·                                            Completion
of strategic financing goals, acquisitions or alliances and clinical progress

 

·                                            Company
project milestones

 

·                                            Economic
value added or EVA® (net operating profit after tax minus the sum of
capital multiplied by the cost of capital)

 

2.25.                        Plan
has the meaning given to such term in Section 1.01.

 

2.26.                        Purchase
Price, with respect to Options, shall have the meaning set forth in Section 6.01(b).

 

2.27.                                                Restricted
Shares means Common Stock subject to restrictions imposed in connection
with Awards granted under Article VII.

 

2.28.                                                Restricted Stock
Unit  means
a unit representing the right to receive Common Stock or the value thereof in
the future subject to restrictions imposed in connection with Awards granted
under Article VII.

 

2.28.                        Rule 16b-3
means Rule 16b-3 promulgated by the Securities and Exchange Commission
under Section 16 of the Exchange Act, as the same may be amended from time
to time, and any successor rule.

 

2.29.                        Stock
Appreciation Rights means awards granted in accordance with Article VI.

 

2.30                           Subsidiary
means a subsidiary of the Company within the meaning of Section 424(f) of
the Code.

 

2.31.                        Termination
of Service means the voluntary or involuntary termination of a Participant’s
service as an employee, director or consultant with the Company or a Subsidiary
for any reason, including death, disability, retirement or as the result of the
divestiture of the Participant’s employer or any similar transaction in which
the Participant’s employer ceases to be the Company or one of its
Subsidiaries.  

 

 

Whether entering military
or other government service shall constitute Termination of Service, or whether
and when a Termination of Service shall occur as a result of disability, shall
be determined in each case by the Committee in its sole discretion.

 

ARTICLE III

 

ADMINISTRATION

 

3.01.                       Committee.

 

(a)                                  Duties
and Authority.  The Plan shall be
administered by the Committee and the Committee shall have exclusive and final
authority in each determination, interpretation or other action affecting the
Plan and its Participants.  The Committee
shall have the sole discretionary authority to interpret the Plan, to establish
and modify administrative rules for the Plan, to impose such conditions
and restrictions on Awards as it determines appropriate, and to make all
factual determinations with respect to and take such steps in connection with
the Plan and Awards granted hereunder as it may deem necessary or
advisable.  The Committee shall not,
however, have or exercise any discretion that would disqualify amounts payable
under Article X as performance-based compensation for purposes of Section 162(m) of
the Code.  The Committee may delegate
such of its powers and authority under the Plan as it deems appropriate to a
subcommittee of the Committee or designated officers or employees of the
Company.  In addition, the full Board may
exercise any of the powers and authority of the Committee under the Plan. In
the event of such delegation of authority or exercise of authority by the
Board, references in the Plan to the Committee shall be deemed to refer, as
appropriate, to the delegate of the Committee or the Board.  Actions taken by the Committee or any
subcommittee thereof, and any delegation by the Committee to designated officers
or employees, under this Section 3.01 shall comply with Section 16(b) of
the Exchange Act, the performance-based provisions of Section 162(m) of
the Code, and the regulations promulgated under each of such statutory
provisions, or the respective successors to such statutory provisions or regulations,
as in effect from time to time, to the extent applicable.

 

(b)                                 Indemnification.  Each person who is or shall have been a
member of the Board or the Committee, or an officer or employee of the Company
to whom authority was delegated in accordance with the Plan shall be
indemnified and held harmless by the Company against and from any loss, cost,
liability, or expense that may be imposed upon or reasonably incurred by such
individual in connection with or resulting from any claim, action, suit, or proceeding
to which he or she may be a party or in which he or she may be involved by
reason of any action taken or failure to act under the Plan and against and
from any and all amounts paid by him or her in settlement thereof, with the
Company’s approval, or paid by him or her in satisfaction of any judgment in
any such action, suit, or proceeding against him or her, provided he or she
shall give the Company an opportunity, at its own expense, to handle and defend
the same before he or she undertakes to handle and defend it on his or her own
behalf; provided, however, that the foregoing indemnification shall not apply
to any loss, cost, liability, or expense that is a result of his or her own
willful misconduct.  The foregoing right
of indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Company’s
Certificate of Incorporation or Bylaws, conferred in a separate agreement with
the Company, as a matter of law, or otherwise, or any power that the Company
may have to indemnify them or hold them harmless.

 

ARTICLE
IV

 

SHARES

 

4.01.                        Number
of Shares Issuable. (as amended March 27,
2008) The total number of shares authorized to be issued under the
Plan shall be 1,750,000 of Common Stock. 
No more than 1,750,000
shares of Common Stock may be issued under the Plan as Incentive Stock
Options.  The foregoing share limits
shall be subject to adjustment in accordance with Section 11.07.  The shares to be offered under the Plan shall
be authorized and unissued Common Stock, or issued Common Stock that shall have
been reacquired by the Company.

 

 

4.02.                        Shares
Subject to Terminated Awards.  Common
Stock covered by any unexercised portions of terminated or forfeited Options
(including canceled Options) granted under Article VI, Common Stock
forfeited as provided in Section 7.02(a), Stock Units and other
stock-based Awards terminated or forfeited as provided in Article IX, and
Common Stock subject to any Awards that are otherwise surrendered by the
Participant may again be subject to new Awards under the Plan.  Shares of Common Stock surrendered to or
withheld by the Company in payment or satisfaction of the Purchase Price of an
Option or tax withholding obligation with respect to an Award shall be
available for the grant of new Awards under the Plan.  In the event of the exercise of Stock
Appreciation Rights, whether or not granted in tandem with Options, only the
number of shares of Common Stock actually issued in payment of such Stock
Appreciation Rights shall be charged against the number of shares of Common
Stock available for the grant of Awards hereunder.

 

ARTICLE V

 

PARTICIPATION

 

5.01.                        Eligible
Participants.  Participants in the
Plan shall be such employees, directors and consultants of the Company and its
Subsidiaries as the Committee, in its sole discretion, may designate from time
to time. The Committee’s designation of a Participant in any year shall not
require the Committee to designate such person to receive Awards or grants in
any other year.  The designation of a
Participant to receive Awards or grants under one portion of the Plan does not
require the Committee to include such Participant under other portions of the
Plan.  The Committee shall consider such
factors as it deems pertinent in selecting Participants and in determining the
type and amount of their respective Awards. 
Subject to adjustment in accordance with Section 11.07, in any
calendar year, no Participant shall be granted Awards in respect of more than 500,000 shares of Common Stock (whether
through grants of Options or Stock Appreciation Rights or other Awards of
Common Stock or rights with respect thereto) or cash-based Awards for more than
$1,500,000.00.

 

 

ARTICLE
VI

 

STOCK
OPTIONS AND STOCK APPRECIATION RIGHTS

 

6.01.                       Option
Awards.

 

(a)                                  Grant
of Options.  The Committee may grant,
to such Participants as the Committee may select, Options entitling the
Participant to purchase shares of Common Stock from the Company in such number,
at such price, and on such terms and subject to such conditions, not
inconsistent with the terms of this Plan, as may be established by the
Committee.  The terms of any Option
granted under this Plan shall be set forth in an Award Agreement.

 

(b)                                 Purchase
Price of Options.  The Purchase Price
of each share of Common Stock which may be purchased upon exercise of any
Option granted under the Plan shall be determined by the Committee; provided,
however, that in no event shall the Purchase Price be less than the Fair Market
Value on the Date of Grant.

 

(c)                                  Designation
of Options.  The Committee shall
designate, at the time of the grant of each Option, the Option as an Incentive
Stock Option or a Non-Qualified Stock Option.

 

(d)                                 Incentive
Stock Option Share Limitation.  No
Participant may be granted Incentive Stock Options under the Plan (or any other
plans of the Company and its Subsidiaries) that would result in shares with an
aggregate Fair Market Value (measured on the Date of Grant) of more than
$100,000 first becoming exercisable in any one calendar year.

 

(e)                                  Rights
As a Stockholder.  A Participant or a
transferee of an Option pursuant to Section 11.04 shall have no rights as
a stockholder with respect to Common Stock covered by an Option until the
Participant or transferee shall have become the holder of record of any such
shares, and no adjustment shall be made for dividends in cash or other property
or distributions or other rights with respect to any such Common Stock for
which the record date is prior to the date on which the Participant or a
transferee of the Option shall have become the holder of record of any such
shares covered by the Option; provided, however, that Participants are entitled
to share adjustments to reflect capital changes under Section 11.07.

 

6.02.                       Stock
Appreciation Rights.

 

(a)                                  Stock
Appreciation Right Awards.  The
Committee is authorized to grant to any Participant one or more Stock
Appreciation Rights.  Such Stock
Appreciation Rights may be granted either independent of or in tandem with
Options granted to the same Participant. Stock Appreciation Rights granted in
tandem with Options may be granted simultaneously with, or, in the case of
Non-Qualified Stock Options, subsequent to, the grant to such Participant of
the related Option; provided however, that: (i) any Option covering any
share of Common Stock shall expire and not be exercisable upon the exercise of
any Stock Appreciation Right with respect to the same share, (ii) any
Stock Appreciation Right covering any share of Common Stock shall expire and
not be exercisable upon the exercise of any related Option with respect to the
same share, and (iii) an Option and Stock Appreciation Right covering the
same share of Common Stock may not be exercised simultaneously.  Upon exercise of a Stock Appreciation Right
with respect to a share of Common Stock, the Participant shall be entitled to
receive an amount equal to the excess, if any, of (A) the Fair Market
Value of a share of Common Stock on the date of exercise over (B) the
Exercise Price of such Stock Appreciation Right established in the Award
Agreement, which amount shall be payable as provided in Section 6.02(c).

 

(b)                                 Exercise
Price. The Exercise Price established under any Stock Appreciation Right
granted under this Plan shall be determined by the Committee, but in the case
of Stock Appreciation Rights granted in tandem with Options shall not be less
than the Purchase Price of the related Option; provided, however, that in no
event shall the Exercise Price be less than the Fair Market Value on the Date
of Grant.  Upon exercise of Stock
Appreciation Rights granted in tandem with options, the number of 

 

 

shares subject to
exercise under any related Option shall automatically be reduced by the number
of shares of Common Stock represented by the Option or portion thereof which
are surrendered as a result of the exercise of such Stock Appreciation Rights.

 

(c)                                  Payment
of Incremental Value.  Any payment
which may become due from the Company by reason of a Participant’s exercise of
a Stock Appreciation Right may be paid to the Participant as determined by the
Committee (i) all in cash, (ii) all in Common Stock, or (iii) in
any combination of cash and Common Stock. 
In the event that all or a portion of the payment is made in Common
Stock, the number of shares of Common Stock delivered in satisfaction of such
payment shall be determined by dividing the amount of such payment or portion
thereof by the Fair Market Value on the Exercise Date.  No fractional share of Common Stock shall be
issued to make any payment in respect of Stock Appreciation Rights; if any
fractional share would be issuable, the combination of cash and Common Stock
payable to the Participant shall be adjusted as directed by the Committee to
avoid the issuance of any fractional share.

 

6.03.                       Terms of
Stock Options and Stock Appreciation Rights.

 

(a)                                  Conditions on Exercise.  An
Award Agreement with respect to Options or Stock Appreciation Rights may
contain such waiting periods, exercise dates and restrictions on exercise
(including, but not limited to, periodic installments) as may be determined by
the Committee at the time of grant.

 

(b)                                 Duration
of Options and Stock Appreciation Rights. 
Options and Stock Appreciation Rights shall terminate upon the first to
occur of the following events:

 

(i)             Expiration of the Option or Stock
Appreciation Right as provided in the Award Agreement; or

 

(ii)          Termination of the Award in the event of
a Participant’s disability, Retirement, death or other Termination of Service
as provided in the Award Agreement; or

 

(iii)       In the case of an Incentive Stock Option,
ten years from the Date of Grant; or

 

(iv)      Solely in the case of a Stock Appreciation Right
granted in tandem with an Option, upon the expiration of the related Option.

 

(c)                                  Acceleration
or Extension of Exercise Time.  The
Committee, in its sole discretion, shall have the right (but shall not be
obligated), exercisable on or at any time after the Date of Grant, to permit
the exercise of an Option or Stock Appreciation Right (i) prior to the
time such Option or Stock Appreciation Right would become exercisable under the
terms of the Award Agreement, (ii) after the termination of the Option or
Stock Appreciation Right under the terms of the Award Agreement, or (iii) after
the expiration of the Option or Stock Appreciation Right.

 

6.04.                        Exercise
Procedures.  Each Option and Stock
Appreciation Right granted under the Plan shall be exercised prior to the close
of business on the expiration date of the Option or Stock Appreciation Right by notice to the Company or by such
other method as provided in the Award Agreement or as the Committee may
establish or approve from time to time. 
The Purchase Price of shares purchased upon exercise of an Option
granted under the Plan shall be paid in full in cash by the Participant
pursuant to the Award Agreement; provided, however, that the Committee may (but
shall not be required to) permit payment to be made by delivery to the Company
of either (a) Common Stock (which may include Restricted Shares or shares
otherwise issuable in connection with the exercise of the Option, subject to such
rules as the Committee deems appropriate) or (b) any combination of
cash and Common Stock, or (c) such other consideration as the Committee
deems appropriate and in compliance with applicable law (including payment
under an arrangement constituting a brokerage transaction as permitted under
the provisions of Regulation T applicable to cashless exercises promulgated by
the Federal Reserve Board, unless prohibited by Section 402 of the
Sarbanes-Oxley Act of 2002).  In the
event that any Common Stock shall be transferred to the Company to satisfy all
or any part of the Purchase Price, the part of the Purchase Price

 

 

 

deemed to have been
satisfied by such transfer of Common Stock shall be equal to the product
derived by multiplying the Fair Market Value as of the date of exercise times
the number of shares of Common Stock transferred to the Company.  The Participant may not transfer to the
Company in satisfaction of the Purchase Price any fractional share of Common
Stock.  Any part of the Purchase Price
paid in cash upon the exercise of any Option shall be added to the general funds
of the Company and may be used for any proper corporate purpose.  Unless the Committee shall otherwise
determine, any Common Stock transferred to the Company as payment of all or
part of the Purchase Price upon the exercise of any Option shall be held as
treasury shares.

 

6.05.                        Change in Control. 
Unless otherwise provided by the Committee in the applicable Award
Agreement, in the event of a Change in Control, all Options outstanding on the
date of such Change in Control, and all Stock Appreciation Rights shall become
immediately and fully exercisable.  The
provisions of this Section 6.05 shall not be applicable to any Options or
Stock Appreciation Rights granted to a Participant if any Change in Control
results from such Participant’s beneficial ownership (within the meaning of Rule 13d-3
under the Exchange Act) of Common Stock or Company Voting Securities.

 

ARTICLE
VII

 

RESTRICTED
SHARES AND RESTRICTED STOCK UNITS

 

7.01.                        Award of Restricted Stock and Restricted Stock Units.  The Committee may grant to any Participant an Award of
Restricted Shares consisting of a specified number of shares of Common Stock
issued to the Participant subject to such terms, conditions and forfeiture and
transfer restrictions, whether based on performance standards, periods of
service, retention by the Participant of ownership of specified shares of
Common Stock or other criteria, as the Committee shall establish.  The Committee may also grant Restricted Stock
Units representing the right to receive shares of Common Stock in the future
subject to such terms, conditions and restrictions, whether based on
performance standards, periods of service, retention by the Participant of
ownership of specified shares of Common Stock or other criteria, as the
Committee shall establish.  With respect
to performance-based Awards of Restricted Shares or Restricted Stock Units
intended to qualify as “performance-based” compensation for purposes of Section 162(m) of
the Code, performance targets will consist of specified levels of one or more
of the Performance Goals.  The terms of
any Restricted Share and Restricted Stock Unit Awards granted under this Plan
shall be set forth in an Award Agreement which shall contain provisions
determined by the Committee and not inconsistent with this Plan.

 

7.02                          Restricted Shares.

 

(a)                                  Issuance of Restricted Shares. 
As soon as practicable after the Date of Grant of a Restricted Share
Award by the Committee, the Company shall cause to be transferred on the books
of the Company, or its agent, Common Stock, registered on behalf of the
Participant, evidencing the Restricted Shares covered by the Award, but subject
to forfeiture to the Company as of the Date of Grant if an Award Agreement with
respect to the Restricted Shares covered by the Award is not duly executed by
the Participant and timely returned to the Company.  All Common Stock covered by Awards under this
Article VII shall be subject to the restrictions, terms and conditions
contained in the Plan and the Award Agreement entered into by the
Participant.  Until the lapse or release
of all restrictions applicable to an Award of Restricted Shares, the share
certificates representing such Restricted Shares may be held in custody by the
Company, its designee, or, if the certificates bear a restrictive legend, by
the Participant.  Upon the lapse or release
of all restrictions with respect to an Award as described in Section 7.02(d),
one or more share certificates, registered in the name of the Participant, for
an appropriate number of shares as provided in Section 7.02(d), free of
any restrictions set forth in the Plan and the Award Agreement shall be
delivered to the Participant.

 

(b)                                 Stockholder Rights. 
Beginning on the Date of Grant of the Restricted Share Award and subject
to execution of the Award Agreement as provided in Section 7.02(a), the
Participant shall become a stockholder of the Company with respect to all
shares subject to the Award Agreement and shall have all of the rights of a
stockholder, including, but not limited to, the right to vote such shares and 

 

 

the right to receive dividends; provided, however, that any Common
Stock distributed as a dividend or otherwise with respect to any Restricted
Shares as to which the restrictions have not yet lapsed, shall be subject to
the same restrictions as such Restricted Shares and held or restricted as
provided in Section 7.02(a).

 

(c)                                  Restriction on Transferability. 
None of the Restricted Shares may be assigned or transferred (other than
by will or the laws of descent and distribution, or to an inter vivos trust
with respect to which the Participant is treated as the owner under Sections
671 through 677 of the Code, except to the extent that Section 16 of the
Exchange Act limits a Participant’s right to make such transfers), pledged or
sold prior to lapse of the restrictions applicable thereto.

 

(d)                                 Delivery of Shares Upon Vesting. 
Upon expiration or earlier termination of the forfeiture period without
a forfeiture and the satisfaction of or release from any other conditions
prescribed by the Committee, or at such earlier time as provided under the
provisions of Section 7.04, the restrictions applicable to the Restricted
Shares shall lapse.  As promptly as
administratively feasible thereafter, subject to the requirements of Section 11.05,
the Company shall deliver to the Participant or, in case of the Participant’s
death, to the Participant’s Beneficiary, one or more share certificates for the
appropriate number of shares of Common Stock, free of all such restrictions,
except for any restrictions that may be imposed by law.

 

(e)                                  Forfeiture of Restricted Shares. 
Subject to Sections 7.02(f) and 7.04, all Restricted Shares shall
be forfeited and returned to the Company and all rights of the Participant with
respect to such Restricted Shares shall terminate unless the Participant
continues in the service of the Company or a Subsidiary as an employee until
the expiration of the forfeiture period for such Restricted Shares and
satisfies any and all other conditions set forth in the Award Agreement.  The Committee shall determine the forfeiture
period (which may, but need not, lapse in installments) and any other terms and
conditions applicable with respect to any Restricted Share Award.

 

(f)                                    Waiver of Forfeiture Period. 
Notwithstanding anything contained in this Article VII to the
contrary, the Committee may, in its sole discretion, waive the forfeiture
period and any other conditions set forth in any Award Agreement under
appropriate circumstances (including the death, disability or Retirement of the
Participant or a material change in circumstances arising after the date of an
Award) and subject to such terms and conditions (including forfeiture of a
proportionate number of the Restricted Shares) as the Committee shall deem
appropriate.

 

7.03.                       Restricted Stock Units.

 

(a)                                  Settlement of Restricted Stock Units.  Payments shall be made to Participants with respect to
their Restricted Stock Units as soon as practicable after the Committee has
determined that the terms and conditions applicable to such Award have been
satisfied or at a later date if distribution has been deferred.  Payments to Participants with respect to
Restricted Stock Units shall be made in the form of Common Stock, or cash or a
combination of both, as the Committee may determine.  The amount of any cash to be paid in lieu of
Common Stock shall be determined on the basis of the Fair Market Value of the
Common Stock on the date any such payment is processed.  As to shares of Common Stock which constitute
all or any part of such payment, the Committee may impose such restrictions
concerning their transferability and/or their forfeiture as may be provided in
the applicable Award Agreement or as the Committee may otherwise determine,
provided such determination is made on or before the date certificates for such
shares are first delivered to the applicable Participant.

 

(b)                                 Shareholder Rights. 
Until the lapse or release of all restrictions applicable to an Award of
Restricted Stock Units, no shares of Common Stock shall be issued in respect of
such Awards and no Participant shall have any rights as a shareholder of the
Company with respect to the shares of Common Stock covered by such Award of
Restricted Stock Units.

 

(c)                                  Waiver of Forfeiture Period. 
Notwithstanding anything contained in this Section 7.03 to the
contrary, the Committee may, in its sole discretion, waive the forfeiture
period and any 

 

 

other conditions set forth in any Award Agreement under appropriate
circumstances (including the death, disability or retirement of the Participant
or a material change in circumstances arising after the date of an Award) and
subject to such terms and conditions (including forfeiture of a proportionate
number of shares issuable upon settlement of the Restricted Stock Units
constituting an Award) as the Committee shall deem appropriate.

 

(d)                                 Deferral of Payment. 
If approved by the Committee and set forth in the applicable Award
Agreement, a Participant may elect to defer the amount payable with respect to
the Participant’s Restricted Stock Units in accordance with such terms as may
be established by the Committee.

 

7.04                           Change in Control. 
Unless otherwise provided by the Committee in the applicable Award
Agreement, in the event of a Change in Control, all restrictions applicable to
Restricted Shares and Restricted Stock Unit Awards shall terminate fully and
the Participant shall immediately have the right to the delivery in accordance
with Section 7.02(d) of a share certificate or certificates
evidencing a number of shares of Common Stock equal to the full number of
shares subject to each such Award (in the case of Restricted Stock) or payment
in accordance with Section 7.03(a) of a number of shares of Common
Stock determined by the Committee, in its discretion, but, in the case of a
performance-based or other contingent Award, in no event less than the number
of shares payable at the “target” level for each such Award (in the case of
Restricted Stock Units).  The provisions
of this Section 7.04 shall not be applicable to any Restricted Share Award
granted to a Participant if any Change in Control results from such Participant’s
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange
Act) of Common Stock or Company Voting Securities.

 

ARTICLE
VIII

 

PERFORMANCE
AWARDS

 

8.01.                        Performance Awards.

 

(a)                                  Award Periods and Calculations of Potential
Incentive Amounts.  The Committee may grant Performance Awards to
Participants.  A Performance Award shall
consist of the right to receive a payment (measured by the Fair Market Value of
a specified number of shares of Common Stock, increases in such Fair Market
Value during the Award Period and/or a fixed cash amount) contingent upon the
extent to which certain predetermined performance targets have been met during
an Award Period.  The Award Period shall
be two or more fiscal or calendar years as determined by the Committee.  The Committee, in its discretion and under
such terms as it deems appropriate, may permit newly eligible Participants,
such as those who are promoted or newly hired, to receive Performance Awards
after an Award Period has commenced.

 

(b)                                 Performance Targets. 
Subject to Section 11.18, the performance targets applicable to a
Performance Award may include such goals related to the performance of the
Company or, where relevant, any one or more of its Subsidiaries or divisions
and/or the performance of a Participant as may be established by the Committee
in its discretion.  In the case of
Performance Awards to “covered employees” (as defined in Section 162(m) of
the Code), the targets will be limited to specified levels of one or more of
the Performance Goals.  The performance
targets established by the Committee may vary for different Award Periods and
need not be the same for each Participant receiving a Performance Award in an
Award Period.

 

(c)                                  Earning Performance Awards. 
The Committee, at or as soon as practicable after the Date of Grant,
shall prescribe a formula to determine the percentage of the Performance Award
to be earned based upon the degree of attainment of the applicable performance
targets.

 

(d)                                 Payment of Earned Performance Awards. 
Subject to the requirements of Section 11.05, payments of earned
Performance Awards shall be made in cash or Common Stock, or a 

 

 

combination of cash and Common Stock, in the discretion of the
Committee.  The Committee, in its sole
discretion, may define, and set forth in the applicable Award Agreement, such
terms and conditions with respect to the payment of earned Performance Awards
as it may deem desirable.

 

8.02.                        Termination of Service. 
In the event of a Participant’s Termination of Service during an Award
Period, the Participant’s Performance Awards shall be forfeited except as may
otherwise be provided in the applicable Award Agreement.

 

8.03.                        Change in Control. 
Unless otherwise provided by the Committee in the applicable Award Agreement,
in the event of a Change in Control, all Performance Awards for all Award
Periods shall immediately become fully vested and payable to all Participants
and shall be paid to Participants in accordance with Section 8.01(d),
within 30 days after such Change in Control. 
The provisions of this Section 8.03 shall not be applicable to any
Performance Award granted to a Participant if any Change in Control results
from such Participant’s beneficial ownership (within the meaning of Rule 13d-3
under the Exchange Act) of Common Stock or Company Voting Securities.

 

 

ARTICLE
IX

 

OTHER
STOCK-BASED AWARDS

 

9.01.                        Grant of Other Stock-Based Awards. 
Other stock-based awards, consisting of stock purchase rights (with or
without loans to Participants by the Company containing such terms as the
Committee shall determine), Awards of Common Stock, or Awards valued in whole
or in part by reference to, or otherwise based on, Common Stock, may be granted
either alone or in addition to or in conjunction with other Awards under the
Plan. Subject to the provisions of the Plan, the Committee shall have sole and
complete authority to determine the persons to whom and the time or times at
which such Awards shall be made, the number of shares of Common Stock to be
granted pursuant to such Awards, and all other conditions of the Awards.  Any such Award shall be confirmed by an Award
Agreement executed by the Committee and the Participant, which Award Agreement
shall contain such provisions as the Committee determines to be necessary or
appropriate to carry out the intent of this Plan with respect to such Award.

 

9.02.                        Terms of Other Stock-Based Awards. 
In addition to the terms and conditions specified in the Award
Agreement, Awards made pursuant to this Article IX shall be subject to the
following:

 

(a)          Any Common Stock subject to Awards made
under this Article IX may not be sold, assigned, transferred, pledged or
otherwise encumbered prior to the date on which the shares are issued, or, if
later, the date on which any applicable restriction, performance or deferral
period lapses; and

 

(b)         If specified by the Committee in the
Award Agreement, the recipient of an Award under this Article IX shall be
entitled to receive, currently or on a deferred basis, interest or dividends or
dividend equivalents with respect to the Common Stock or other securities
covered by the Award; and

 

(c)          The Award Agreement with respect to any
Award shall contain provisions dealing with the disposition of such Award in
the event of a Termination of Service prior to the exercise, payment or other
settlement of such Award, whether such termination occurs because of
Retirement, disability, death or other reason, with such provisions to take
account of the specific nature and purpose of the Award.

 

ARTICLE
X

 

SHORT-TERM
CASH INCENTIVE AWARDS

 

10.01.                  Eligibility.  Executive
officers of the Company who are from time to time determined by the Committee
to be “covered employees” for purposes of Section 162(m) of the Code
will be eligible to receive short-term cash incentive awards under this Article X.

 

 

10.02.                  Awards.

 

(a)                                  Performance Targets. 
The Committee shall establish objective performance targets based on
specified levels of one or more of the Performance Goals.  Such performance targets shall be established
by the Committee on a timely basis to ensure that the targets are considered “preestablished”
for purposes of Section 162(m) of the Code.

 

(b)                                 Amounts of Awards. 
In conjunction with the establishment of performance targets for a
fiscal year, the Committee shall adopt an objective formula (on the basis of
percentages of Participants’ salaries, shares in a bonus pool or otherwise) for
computing the respective amounts payable under the Plan to Participants if and
to the extent that the performance targets are attained.  Such formula shall comply with the
requirements applicable to performance-based compensation plans under Section 162(m) of
the Code and, to the extent based on percentages of a bonus pool, such
percentages shall not exceed 100% in the aggregate.

 

(c)                                  Payment of Awards. 
Awards will be payable to Participants in cash each year upon prior
written certification by the Committee of attainment of the specified
performance targets for the preceding fiscal year.

 

(d)                                 Negative Discretion. 
Notwithstanding the attainment by the Company of the specified
performance targets, the Committee shall have the discretion, which need not be
exercised uniformly among the Participants, to reduce or eliminate the award
that would be otherwise paid.

 

(e)                                  Guidelines.  The Committee
shall adopt from time to time written policies for its implementation of this Article X.  Such guidelines shall reflect the intention
of the Company that all payments hereunder qualify as performance-based
compensation under Section 162(m) of the Code.

 

(f)                                    Non-Exclusive Arrangement.  The adoption and operation of this Article X
shall not preclude the Board or the Committee from approving other short-term
incentive compensation arrangements for the benefit of individuals who are
Participants hereunder as the Board or Committee, as the case may be, deems
appropriate and in the best of the Company.

 

ARTICLE
XI

 

TERMS APPLICABLE GENERALLY TO AWARDS

 

GRANTED
UNDER THE PLAN

 

11.01.                  Plan Provisions Control Award Terms. 
Except as provided in Section 11.16, the terms of the Plan shall
govern all Awards granted under the Plan, and in no event shall the Committee
have the power to grant any Award under the Plan which is contrary to any of
the provisions of the Plan.  In the event
any provision of any Award granted under the Plan shall conflict with any term
in the Plan as constituted on the Date of Grant of such Award, the term in the
Plan as constituted on the Date of Grant of such Award shall control.  Except as provided in Section 11.03 and Section 11.07,
the terms of any Award granted under the Plan may not be changed after the Date
of Grant of such Award so as to materially decrease the value of the Award
without the express written approval of the holder.

 

11.02.                  Award Agreement.  No person
shall have any rights under any Award granted under the Plan unless and until
the Company and the Participant to whom such Award shall have been granted
shall have executed and delivered an Award Agreement or received any other
Award acknowledgment authorized by the Committee expressly granting the Award
to such person and containing provisions setting forth the terms of the Award.

 

11.03.                  Modification of Award After Grant. 
No Award granted under the Plan to a Participant may be modified (unless
such modification does not materially decrease the value of the Award) after
the Date of Grant except by express written agreement between the Company and
the Participant, provided that any such change (a) shall not be
inconsistent with the terms of the Plan, and (b) shall be approved by the
Committee.

 

 

11.04.                  Limitation on Transfer.  Except as
provided in Section 7.01(c) in the case of Restricted Shares, a
Participant’s rights and interest under the Plan may not be assigned or
transferred other than by will or the laws of descent and distribution, and
during the lifetime of a Participant, only the Participant personally (or the
Participant’s personal representative) may exercise rights under the Plan.  The Participant’s Beneficiary may exercise
the Participant’s rights to the extent they are exercisable under the Plan
following the death of the Participant. Notwithstanding the foregoing, to the
extent permitted under Section 16(b) of the Exchange Act with respect
to Participants subject to such Section, the Committee may grant Non-Qualified
Stock Options that are transferable, without payment of consideration, to
immediate family members of the Participant or to trusts or partnerships for
such family members, and the Committee may also amend outstanding Non-Qualified
Stock Options to provide for such transferability.

 

11.05.                  Taxes.  The Company
shall be entitled, if the Committee deems it necessary or desirable, to
withhold (or secure payment from the Participant in lieu of withholding) the
amount of any withholding or other tax required by law to be withheld or paid
by the Company with respect to any amount payable and/or shares issuable under
such Participant’s Award, or with respect to any income recognized upon a
disqualifying disposition of shares received pursuant to the exercise of an
Incentive Stock Option, and the Company may defer payment or issuance of the
cash or shares upon exercise or vesting of an Award unless indemnified to its
satisfaction against any liability for any such tax. The amount of such
withholding or tax payment shall be determined by the Committee and shall be
payable by the Participant at such time as the Committee determines in
accordance with the following rules:

 

(a)          The Participant shall have the right to
elect to meet his or her withholding requirement (i) by having withheld
from such Award at the appropriate time that number of shares of Common Stock,
rounded up to the next whole share, whose Fair Market Value is equal to the
amount of withholding taxes due, (ii) by direct payment to the Company in
cash of the amount of any taxes required to be withheld with respect to such
Award or (iii) by a combination of shares and cash.

 

(b)                                 In the case of Participants who are
subject to Section 16 of the Exchange Act, the Committee may impose such
limitations and restrictions as it deems necessary or appropriate with respect
to the delivery or withholding of shares of Common Stock to meet tax
withholding obligations.

 

11.06.                  Surrender of Awards.  Any Award
granted under the Plan may be surrendered to the Company for cancellation on
such terms as the Committee and the holder approve.  With the consent of the Participant, the
Committee may substitute a new Award under this Plan in connection with the
surrender by the Participant of an equity compensation award previously granted
under this Plan or any other plan sponsored by the Company; provided, however,
that no such substitution shall be permitted without the approval of the
Company’s stockholders if such approval is required by the rules of any
applicable stock exchange.

 

11.07.                  Adjustments to Reflect Capital Changes.

 

(a)                                  Recapitalization. 
In the event of any corporate event or transaction (including, but not
limited to, a change in the Common Stock or the capitalization of the Company)
such as a merger, consolidation, reorganization, recapitalization, separation,
partial or complete liquidation, stock dividend, stock split, reverse stock
split, split up, spin-off, or other distribution of stock or property of the
Company, a combination or exchange of Common Stock, dividend in kind, or other
like change in capital structure, number of outstanding shares of Common Stock,
distribution (other than normal cash dividends) to 

 

 

shareholders of the Company, or any similar corporate event or
transaction, the Committee, in order to prevent dilution or enlargement of
Participants’ rights under this Plan, shall make equitable and appropriate
adjustments and substitutions, as applicable, to or of the number and kind of
shares subject to outstanding Awards, the Purchase Price or Exercise Price for
such shares, the number and kind of shares available for future issuance under
the Plan and the maximum number of shares in respect of which Awards can be
made to any Participant in any calendar year, and other determinations applicable
to outstanding Awards.  The Committee
shall have the power and sole discretion to determine the amount of the
adjustment to be made in each case.

 

(b)                                 Merger.  After any
Merger in which the Company is the surviving corporation, each Participant shall,
at no additional cost, be entitled upon any exercise of all Options or receipt
of other Award to receive (subject to any required action by stockholders), in
lieu of the number of shares of Common Stock receivable or exercisable pursuant
to such Award, the number and class of shares or other securities to which such
Participant would have been entitled pursuant to the terms of the Merger if, at
the time of the Merger, such Participant had been the holder of record of a
number of shares equal to the number of shares receivable or exercisable
pursuant to such Award.  Comparable
rights shall accrue to each Participant in the event of successive Mergers of
the character described above. 
Notwithstanding Section 11.15, in the event of a Merger in which
the Company is not the surviving corporation, outstanding Awards shall be
subject to the agreement governing the Merger, which may provide, without
limitation, for the assumption of Awards by the surviving corporation or its
parent or subsidiary, for the substitution by the surviving corporation or its
parent or subsidiary of its own awards for such Awards, for accelerated vesting
and accelerated expiration, or for settlement in cash or cash equivalents.  In any event, the exercise and/or vesting of
any Award that was permissible solely by reason of this Section 11.07(b) shall
be conditioned upon the consummation of the Merger.

 

(c)                                  Options to Purchase Shares or Stock of
Acquired Companies.  After any Merger in which the Company or a
Subsidiary shall be a surviving corporation, the Committee may grant
substituted options under the provisions of the Plan, pursuant to Section 424
of the Code, replacing old options granted under a plan of another party to the
Merger whose shares or stock subject to the old options may no longer be issued
following the Merger.  The foregoing
adjustments and manner of application of the foregoing provisions shall be
determined by the Committee in its sole discretion.  Any such adjustments may provide for the
elimination of any fractional shares which might otherwise become subject to
any Options.

 

11.08.                  No Right to Continued Service. 
No person shall have any claim of right to be granted an Award under
this Plan. Neither the Plan nor any action taken hereunder shall be construed
as giving any Participant any right to be retained in the service of the
Company or any of its Subsidiaries.

 

11.09.                  Awards Not Includable for Benefit Purposes. 
Payments received by a Participant pursuant to the provisions of the
Plan shall not be included in the determination of benefits under any pension,
group insurance or other benefit plan applicable to the Participant which is
maintained by the Company or any of its Subsidiaries, except as may be provided
under the terms of such plans or determined by the Board.

 

11.10.                  Governing Law.  All
determinations made and actions taken pursuant to the Plan shall be governed by
the laws of California and
construed in accordance therewith.

 

11.11.                  No Strict Construction.  No rule of
strict construction shall be implied against the Company, the Committee, or any
other person in the interpretation of any of the terms of the Plan, any Award
granted under the Plan or any rule or procedure established by the
Committee.

 

11.12.                  Compliance with Rule 16b-3. 
It is intended that, unless the Committee determines otherwise, Awards
under the Plan be eligible for exemption under Rule 16b-3.  The Board is authorized to amend the Plan and
to make any such modifications to Award Agreements to comply with Rule 16b-3,
as it may be amended from time to time, and to make any other such amendments
or modifications as it deems necessary or appropriate to better accomplish the
purposes of the Plan in light of any amendments made to Rule 16b-3.

 

 

11.13.                  Captions.  The captions
(i.e., all Section headings) used in the Plan are for convenience only, do
not constitute a part of the Plan, and shall not be deemed to limit,
characterize or affect in any way any provisions of the Plan, and all
provisions of the Plan shall be construed as if no captions have been used in
the Plan.

 

11.14.                  Severability.  Whenever
possible, each provision in the Plan and every Award at any time granted under
the Plan shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of the Plan or any Award at any time
granted under the Plan shall be held to be prohibited by or invalid under
applicable law, then (a) such provision shall be deemed amended to
accomplish the objectives of the provision as originally written to the fullest
extent permitted by law and (b) all other provisions of the Plan and every
other Award at any time granted under the Plan shall remain in full force and
effect.

 

11.15.                 Amendment and Termination.

 

(a)                                  Amendment.  The Board
shall have complete power and authority to amend the Plan at any time;
provided, however, that the Board shall not, without the requisite affirmative
approval of stockholders of the Company, make any amendment which requires
stockholder approval under the Code or under any other applicable law or rule of
any stock exchange which lists Common Stock or Company Voting Securities.  No termination or amendment of the Plan may,
without the consent of the Participant to whom any Award shall theretofore have
been granted under the Plan, adversely affect the right of such individual
under such Award.

 

(b)                                 Termination. 
The Board shall have the right and the power to terminate the Plan at
any time. No Award shall be granted under the Plan after the termination of the
Plan, but the termination of the Plan shall not have any other effect and any
Award outstanding at the time of the termination of the Plan may be exercised
after termination of the Plan at any time prior to the expiration date of such
Award to the same extent such Award would have been exercisable had the Plan
not terminated.

 

11.16.                  Foreign Qualified Awards. 
Awards under the Plan may be granted to such employees of the Company
and its Subsidiaries who are residing in foreign jurisdictions as the Committee
in its sole discretion may determine from time to time. The Committee may adopt
such supplements to the Plan as may be necessary or appropriate to comply with
the applicable laws of such foreign jurisdictions and to afford Participants
favorable treatment under such laws; provided, however, that no Award shall be
granted under any such supplement with terms or conditions inconsistent with
the provision set forth in the Plan.

 

11.17.                  Dividend Equivalents.  For any Award
granted under the Plan, the Committee shall have the discretion, upon the Date
of Grant or thereafter, to establish a Dividend Equivalent Account with respect
to the Award, and the applicable Award Agreement or an amendment thereto shall
confirm such establishment.  If a
Dividend Equivalent Account is established, the following terms shall apply:

 

                                                (a)                                  Terms and Conditions.  Dividend
Equivalent Accounts shall be subject to such terms and conditions as the
Committee shall determine and as shall be set forth in the applicable Award
Agreement.  Such terms and conditions may
include, without limitation, for the Participant’s Account to be credited as of
the record date of each cash dividend on the Common Stock with an amount equal
to the cash dividends which would be paid with respect to the number of shares
of Common Stock then covered by the related Award if such shares of Common
Stock had been owned of record by the Participant on such record date.

 

                                                (b)                                 Unfunded Obligation.  Dividend
Equivalent Accounts shall be established and maintained only on the books and
records of the Company and no assets or funds of the Company shall be set
aside, placed in trust, removed from the claims of the Company’s general
creditors, or otherwise made available until such amounts are actually payable
as provided hereunder.

 

 

11.18                     Adjustment of Performance Goals and
Targets.  Notwithstanding any provision of the Plan to
the contrary, the Committee shall have the authority to adjust any Performance
Goal, performance target or other performance-based criteria established with
respect to any Award under the Plan if circumstances occur (including, but not
limited to, unusual or nonrecurring events, changes in tax laws or accounting
principles or practices or changed business or economic conditions) that cause
any such Performance Goal, performance target or performance-based criteria to
be inappropriate in the judgment of the Committee; provided, that with respect
to any Award that is intended to qualify for the “performance-based
compensation” exception under Section 162(m) of the Code and the regulations
thereunder, any adjustment by the Committee shall be consistent with the
requirements of Section 162(m) and the regulations thereunder.

 

11.19                     Legality of Issuance. 
Notwithstanding any provision of this Plan or any applicable Award
Agreement to the contrary, the Committee shall have the sole discretion to
impose such conditions, restrictions and limitations (including suspending
exercises of Options or Stock Appreciation Rights and the tolling of any
applicable exercise period during such suspension) on the issuance of Common
Stock with respect to any Award unless and until the Committee determines that
such issuance complies with (i) any applicable registration requirements
under the Securities Act of 1933 or the Committee has determined that an exemption
there from is available, (ii) any applicable listing requirement of any
stock exchange on which the Common Stock is listed, and (iii) any other
applicable provision of state, federal or foreign law, including foreign
securities laws where applicable.

 

11.20                     Restrictions on Transfer. 
Regardless of whether the offering and sale of Common Stock under the
Plan have been registered under the Securities Act of 1933 or have been
registered or qualified under the securities laws of any state, the Company may
impose restrictions upon the sale, pledge, or other transfer of such Common
Stock (including the placement of appropriate legends on stock certificates)
if, in the judgment of the Company and its counsel, such restrictions are
necessary or desirable to achieve compliance with the provisions of the
Securities Act of 1933, the securities laws of any state, the United States or
any other applicable foreign law.

 

11.21                     Further Assurances. 
As a condition to receipt of any Award under the Plan, a Participant
shall agree, upon demand of the Company, to do all acts and execute, deliver
and perform all additional documents, instruments and agreements which may be
reasonably required by the Company, to implement the provisions and purposes of
the Plan.

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