Document:

Exhibit 10.02

SECOND AMENDED AND RESTATED FORBEARANCE AGREEMENT

This Second
Amended and Restated Forbearance Agreement is made, and is effective, as of
September 12, 2007 (“Second Amended Forbearance Agreement”), and amends
and restates that certain First Amended Forbearance Agreement (defined below)
by and among The Wornick Company (the “Company”), Right Away Management
Corporation, The Wornick Company Right Away Division and The Wornick Company
Right Away Division L.P. (each a “Subsidiary,” and collectively, the “Subsidiaries”),
the holders of the Company’s 10.875% Senior Secured Notes due 2011 (the “Notes”)
that were issued pursuant to that certain Indenture, dated as of June 30, 2004
(as amended, modified, supplemented or amended and restated from time to time,
the “Indenture”), that are signatories hereto (each a “Noteholder,”
and collectively, the “Noteholders,” and together with the Company, the “Parties”)
and U.S. Bank National Association, as indenture trustee (the “Indenture
Trustee”) under the Indenture, solely with respect to Sections 3(b)(i) and
14 hereof.

RECITALS

WHEREAS, the
Noteholders collectively hold not less than $100 million in aggregate principal
amount of the Notes, representing not less than 80% of the aggregate principal
amount of the Notes that are outstanding;

WHEREAS, each of the
Noteholders (other than DDJ Total Return Loan Fund, L.P.; B IV Capital
Partners, L.P.; DDJ High Yield Fund; GMAM Investment Funds Trust II, for the
account of the Promark Alternative High Yield Bond Fund

(Account No. 7M2E); GMAM
Investment Funds Trust; General Motors Welfare Benefit Trust (VEBA); GMAM
Investment Funds Trust II for the account of the Promark Alternative High Yield
Bond Fund (Account No. 7MWD); DDJ Capital Management Group Trust; Stichting Pensioenfonds
Hoogovens; The October Fund, Limited Partnership; DDJ/Ontario Credit
Opportunities Fund, L.P.; and Multi-Style, Multi-Manager Funds PLC The Global
High Yield Fund (collectively, “DDJ”)), is a member of the unofficial
group of holders of the Notes (the “Noteholder Group”), which
collectively holds a majority in principal amount of the Notes;

WHEREAS, the
Company, the Subsidiaries and DDJ Total Return Loan Fund, L.P. (as assignee of
Texas State Bank; in such capacity, “Lender”) are parties to that
certain Loan Agreement, dated as of June 30, 2004 (as amended by the First
Amendment dated as of March 16, 2007, and as further amended, modified,
supplemented or amended and restated from time to time, the “Loan Agreement”);

WHEREAS, (a) the
obligations of the Company and the Subsidiaries evidenced by the Notes and the
Guarantees (as defined in the Indenture) and (b) the obligations of the Company
and the Subsidiaries to Lender pursuant to the Loan Agreement and the other
Loan Documents (as defined in the Loan Agreement), are secured by a security
interest in and continuing lien on substantially all of the assets of the
Company and the Subsidiaries (the “Collateral”);

WHEREAS, Lender’s
and the Indenture Trustee’s rights with respect to the priority and enforcement
of their security interests in the Collateral are governed by

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that certain
Intercreditor Agreement, dated as of June 30, 2004, between the Indenture
Trustee and the Texas State Bank (as amended, modified, supplemented or amended
and restated from time to time, the “Intercreditor Agreement”);

WHEREAS, as
of the date hereof, the Events of Default referred to herein as the “Specified
Existing Defaults,” all of which are specified on schedule A
attached hereto, have occurred and are continuing;

WHEREAS, the
Company, the Subsidiaries, the Noteholders and the Indenture Trustee entered
into an initial forbearance agreement dated as of July 16, 2007 (the “Initial
Forbearance Agreement”) pursuant to which the Noteholders agreed to
forbear, and agreed to direct the Indenture Trustee to forbear, from exercising
their rights and remedies under the Indenture during the Forbearance Period (as
defined in the Initial Forbearance Agreement);

WHEREAS, the
Company, the Subsidiaries, the Noteholders and the Indenture Trustee entered
into an amended and restated forbearance agreement dated as of August 13, 2007
(the “First Amended Forbearance Agreement”) pursuant to which the
Noteholders agreed to further forbear, and agreed to direct the Indenture
Trustee to further forbear, from exercising their rights and remedies under the
Indenture during the Forbearance Period (as defined in the First Amended
Forbearance Agreement);

WHEREAS, the
Forbearance Period (as defined in the First Amended Forbearance Agreement)
under the First Amended Forbearance Agreement is set to

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expire
on September 17, 2007 and the Company and the Subsidiaries have asked the
Noteholders to extend the Forbearance Period through October 16, 2007;

WHEREAS, the
Company and the Subsidiaries entered into an initial forbearance agreement with
the Lender dated as of July 16, 2007 (the “DDJ Forbearance Agreement”)
pursuant to which the Lender agreed to forbear from exercising its rights and
remedies under the Loan Agreement and the other Loan Documents (as defined in
the Loan Agreement) until the expiration of the forbearance period set forth in
the DDJ Forbearance Agreement;

WHEREAS, the
Company and the Subsidiaries entered subsequently into an amended forbearance
agreement with the Lender dated as of August 13, 2007 (the “DDJ Amended
Forbearance Agreement”) pursuant to which the Lender agreed to further
forbear from exercising its rights and remedies under the Loan Agreement and
the other Loan Documents (as defined in the Loan Agreement) until the
expiration of the forbearance period set forth in the DDJ Amended Forbearance
Agreement (the “DDJ Amended Forbearance Period”);

WHEREAS, the Company and
the Subsidiaries have advised the Noteholders that the Company, the
Subsidiaries and Lender will, simultaneously with the execution of this Second
Amended Forbearance Agreement, amend and restate the DDJ Amended Forbearance
Agreement, pursuant to which Lender shall agree to extend the DDJ Amended
Forbearance Period and continue to forbear from exercising the rights and remedies
available to Lender under the Loan Agreement and the other Loan Documents

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(as defined in the Loan
Agreement), all on the terms and conditions set forth in such separate amended
forbearance agreement through and including October 14, 2007 (as such agreement
may be amended, modified, supplemented or amended and restated from time to
time, the “DDJ Second Amended Forbearance Agreement”);

WHEREAS, at the
Company’s request, the Noteholders have agreed to continue forbearing from
exercising, and continue to instruct the Indenture Trustee not to exercise,
those of the rights and remedies available under the Indenture, the
Intercreditor Agreement, the Collateral Agreements and/or applicable law that
have or may have arisen, or may hereafter arise, due to the occurrence and
continuance of the Specified Existing Defaults on the terms and conditions set
forth herein; and

WHEREAS, capitalized
terms used and not defined herein shall have the meanings ascribed to them in
the Indenture and the First Amended Forbearance Agreement.

NOW THEREFORE, in
consideration of the premises and the respective covenants and agreements set
forth in this Second Amended Forbearance Agreement, the Parties, each intending
to be legally bound, agree that the First Amended Forbearance Agreement is
amended and restated in its entirety as follows:

1.             Forbearance.

(a)           Effective as of the Second Amended
Forbearance Effective Date (as defined below), the Noteholders agree that,
until the expiration of the Second Forbearance Period (as defined below), they
will forbear from exercising, and shall direct

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the Indenture Trustee,  and by signature hereto so direct the
Indenture Trustee pursuant to Section 6.5 of the Indenture, not to exercise,
any rights and remedies against the Company or the Subsidiaries that are
available under the Indenture, the Intercreditor Agreement, the Collateral
Agreements and/or applicable law solely with respect to the Specified Existing
Defaults (excluding, however, the Noteholders’ right to charge default interest
on the Notes (including on all unpaid interest on the Notes to the extent
provided under the Indenture) during the Second Forbearance Period); provided,
however, that nothing herein shall restrict, impair or otherwise affect
the exercise of the Noteholders’ rights under this Second Amended Forbearance
Agreement, and provided  further that no such forbearance shall
constitute a waiver with respect to any such Specified Existing Defaults or any
other Events of Default under the Indenture.

(b)           As used herein, the term “Second
Forbearance Period” shall mean the period beginning on the date hereof and
ending upon the occurrence of a Termination Event.  As used herein, “Termination Event”
shall mean the earlier to occur of (i) October 17, 2007; and (ii) two business
days after the delivery by the Noteholder Group to the Company and Lender of a
written notice terminating the Second Forbearance Period (the “Termination
Notice”), which notice may be delivered at any time upon or after the
occurrence of any Forbearance Default (as defined below); provided, however,
that notwithstanding the foregoing, (x) this Second Amended Forbearance
Agreement shall immediately terminate two (2) business days after the
occurrence of a Forbearance Default under subsection (D) below without the need
for delivery of the Termination Notice or any other notice, and (y) this Second
Amended

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Forbearance Agreement shall immediately
terminate upon the occurrence of a Forbearance Default under subsection (J)
below, without the need for delivery of the Termination Notice or any other
notice.  As used herein, the term “Forbearance
Default” shall mean: (A) the failure of the Company to provide the
Noteholder Group and its financial advisors with reasonable access, as
determined by the Noteholder Group in its reasonable discretion, to its Chief
Executive Officer, other senior executives and outside advisors, including
representatives of Kroll Zolfo Cooper that are working with the Company, and to
provide the Noteholder Group and its legal and financial advisors with any and
all due diligence information they may reasonably request, including, without
limitation, the Company’s current 13-week cash flow schedule, and all updates
thereto as soon as reasonably practicable after they are prepared, but in no
event no later than two (2) business days thereafter; (B) the failure of the
Company to engage in good faith negotiations with the Noteholder Group
regarding a potential restructuring transaction, which determination shall be
made by the Noteholder Group in its reasonable discretion; (C) the failure of
the Company to promptly notify the Noteholder Group of the occurrence of a
Forbearance Default (as defined in the DDJ Second Amended Forbearance
Agreement) under the DDJ Second Amended Forbearance Agreement or any amendment
or modification to the DDJ Second Amended Forbearance Agreement;
(D) termination of the DDJ Second Amended Forbearance Agreement; (E) the
execution of any amendment or modification to the DDJ Second Amended
Forbearance Agreement, which amendment or modification has a material adverse
effect on the Noteholder Group as determined by the Noteholder Group in its
reasonable discretion; (F) termination by

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the Company of the Chanin Engagement Letter
or the failure of the Company to pay Chanin’s fees, expenses and indemnity in
accordance with the terms of the Chanin Engagement Letter; (G) the
occurrence of any Event of Default that is not a Specified Existing Default;
(H) the failure of the Company to comply with any term, condition,
covenant or agreement set forth in this Second Amended Forbearance Agreement;
(I) the failure of any representation or warranty made by the Company
under this Second Amended Forbearance Agreement to be true and correct in all
material respects as of the date when made; (J) the commencement by or
against the Company or any of the Subsidiaries of a case under title 11 of
the United States Code; or (K) the commencement of any action or proceeding by
any creditor of the Company or any of the Subsidiaries seeking to attach or take
similar action against the assets of the Company or the Subsidiaries.  Any Forbearance Default shall constitute an
immediate Event of Default under the Indenture.

(c)           Upon the occurrence of a Termination
Event, the agreement of the Noteholders hereunder to forbear, and to direct the
Indenture Trustee to forbear, from exercising rights and remedies in respect of
the Specified Existing Defaults, shall immediately terminate without the
requirement of any demand, presentment, protest, or notice of any kind (other
than, where required, the Termination Notice), all of which the Company and the
Subsidiaries hereby waive.  The Company
and the Subsidiaries agree that, upon the occurrence of, and at any time after,
the occurrence of a Termination Event, the Noteholders or the Indenture
Trustee, as applicable, may proceed, subject to the terms of the Indenture, the
Intercreditor Agreement, the Collateral

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Agreements and/or applicable law, to exercise
any or all rights and remedies under the Indenture, the Intercreditor Agreement,
the Collateral Agreements and/or applicable law, including, without limitation,
the rights and remedies on account of the Specified Existing Defaults and any
other Events of Default that may then exist. 
Without limiting the generality of the foregoing, upon the occurrence of
a Termination Event, subject to the terms of the Intercreditor Agreement, the
Collateral Agreements and any related documents, the Noteholders or the
Indenture Trustee, as applicable, may, upon such notice or demand as is specified
by the Indenture, the Intercreditor Agreement, the Collateral Agreements or
applicable law (x) collect and/or commence any legal or other action to collect
any or all of the Company’s or the Subsidiaries’ obligations under the
Indenture or the Guarantees (collectively, the “Obligations”); (y)
foreclose or otherwise realize on any or all of the Collateral, and/or
appropriate, setoff or apply to the payment of any or all of the Obligations,
any or all of the Collateral or proceeds thereof; and (z) take any other
enforcement action or otherwise exercise any or all rights and remedies
provided for under the Indenture, the Intercreditor Agreement, the Collateral
Agreements and/or applicable law, all of which rights and remedies are fully
reserved.

(d)           Any agreement by the Noteholders to
further extend the Second Forbearance Period or to enter into any other
forbearance or similar arrangement must be set forth in writing and signed by
all of the Noteholders.  The Company and
the Subsidiaries acknowledge that the Noteholders have made no assurances
whatsoever concerning any possibility of any extension of the Second
Forbearance Period, any other forbearance or similar arrangement or any other
limitations on the exercise of their rights,

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remedies and privileges under or otherwise in
connection with the Indenture, the Intercreditor Agreement, the Collateral
Agreements and/or applicable law.

(e)           The Company and the Subsidiaries
acknowledge and agree that any forbearance, waiver or consent which the
Noteholders may make on or after the date hereof has been made by the
Noteholders in reliance upon, and in consideration for, among other things, the
general releases contained in Section 4 hereof and the other covenants,
agreements, representations and warranties of the Company and the Subsidiaries
hereunder.

2.             Effectiveness.  This Second Amended Forbearance Agreement
shall become effective on the first date (the “Second Amended Forbearance
Effective Date”) on which each of the following conditions is satisfied and
evidence of its satisfaction has been delivered to counsel to the Noteholder
Group:

(a)           execution and delivery by the Company
and the Subsidiaries of the DDJ Second Amended Forbearance Agreement having a
Forbearance Period that (subject to earlier termination upon the occurrence and
continuation of a Forbearance Default as defined therein) is through and
including a date that is no earlier than October 14, 2007, and is
otherwise reasonably satisfactory in form and substance to the Noteholder
Group; and

(b)           execution and delivery of
counterparts of this Second Amended Forbearance Agreement by the Noteholders,
the Indenture Trustee, the Company and the Subsidiaries.

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3.             Representations,
Warranties and Covenants.  

(a)           The Company and the Subsidiaries
represent, warrant and covenant as follows:

(i)            Except
for the Specified Existing Defaults in this Second Amended Forbearance
Agreement, the Company is in compliance with all of the terms and provisions
set forth in the Indenture on its part to be observed or performed, and no
other Event of Default has occurred and is continuing.

(ii)           The
execution, delivery and performance by the Company and the Subsidiaries of this
Second Amended Forbearance Agreement:

(1)           are
within their corporate or limited partnership powers, as applicable;

(2)           have
been duly authorized by all necessary corporate or limited partnership action,
as applicable, including the consent of the holders of its equity interests
where required;

(3)           do
not and will not (A) contravene their certificate of incorporation or by-laws
or limited partnership or other constituent documents, (B) violate any
applicable requirement of law or any order or decree of any governmental
authority or arbitrator applicable to them, (C) conflict with or result in the
breach of, or constitute a default under, or result in or permit the
termination or acceleration of, any contractual obligation of the Company or
the Subsidiaries, or (D) result in the creation or imposition of any lien or
encumbrance upon any of the property of the Company or the Subsidiaries; and

(4)           do
not and will not require the consent of, authorization by, approval of, notice
to, or filing or registration with, any governmental authority or any other
entity, other than those which prior to the Second Amended Forbearance
Effective Date will have been obtained or made and copies of which prior to the
Second Amended Forbearance Effective Date will have been delivered to counsel
to the Noteholder Group and DDJ and each of which on the Second Amended
Forbearance Effective Date will be in full force and effect.

(iii)          The
Company and the Subsidiaries shall not make any payments either directly, or
indirectly through TWC Holding LLC, to

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The Veritas Capital Fund II, L.P. and its general partner, Veritas
Capital Management II, L.L.C.

(iv)          Within
five (5) business days after the Second Amended Forbearance Effective Date, the
Company shall file this Second Amended Forbearance Agreement and the DDJ Second
Amended Forbearance Agreement with the United States Securities and Exchange
Commission as an exhibit to a filing by the Company on Form 8-K pursuant to the
Securities and Exchange Act of 1934, as amended, which 8-K filing and any
accompanying press release shall be in form and substance reasonably
satisfactory to the Noteholders.

(v)           The
Company and the Subsidiaries shall immediately notify the Noteholders and the
Indenture Trustee upon its or their becoming aware of an Event of Default under
the Indenture or an Event of Default (as defined in the Loan Agreement) under
the Loan Agreement that is not a Specified Default (as defined in the DDJ
Second Amended Forbearance Agreement).

(b)           The
Indenture Trustee represents as follows:

(i)            Based
solely on the representations provided by counsel to the Noteholder Group and
DDJ, the Indenture Trustee represents that, as of the date hereof, the
Noteholders, in the aggregate, hold not less than $100 million in principal
amount of the Notes, representing not less than 80% of the aggregate principal
amount of the Notes outstanding.

(c)           The
representations and warranties set forth in this Section 3 shall survive
the execution and delivery of this Second Amended Forbearance Agreement and the
Second Amended Forbearance Effective Date.

4.             General
Release.  In consideration of, among
other things, the Noteholders’ execution and delivery of this Second Amended
Forbearance Agreement, the Company and the Subsidiaries, on behalf of
themselves and their successors and assigns (collectively, the “Releasors”),
hereby forever agree and covenant not to sue or prosecute against the Releasees
(as defined below) and hereby forever waive, release and

 12
 

discharge to the
fullest extent permitted by law, each Releasee from, any and all claims
(including, without limitation, crossclaims, counterclaims, rights of set-off
and recoupment), actions, causes of action, suits, debts, accounts, interests,
liens, promises, warranties, damages and consequential and punitive damages,
demands, agreements, bonds, bills, specialties, covenants, controversies,
variances, trespasses, judgments, executions, costs, expenses or claims
whatsoever (collectively, the “Claims”), that such Releasor now has or
hereafter may have, of whatsoever nature and kind, whether known or unknown,
whether now existing or hereafter arising, whether arising at law or in equity,
against the Noteholders in any capacity and their affiliates, shareholders and “controlling
persons” (within the meaning of the federal securities law), and their
respective successors and assigns and each and all of the officers, directors,
employees, agents, attorneys, advisors, auditors, consultants and other
representative of each of the foregoing (collectively, the “Releasees”),
based in whole or in part on facts whether or not now known, existing on or
before the Second Amended Forbearance Effective Date, that relate to, arise out
of otherwise are in connection with (i) any aspect of the business,
operations, assets, properties, affairs or any other aspect of the Company or
the Subsidiaries; (ii) any aspect of the dealings or relationships between or
among the Company and the Subsidiaries, on the one hand, and the Noteholders,
on the other hand, or (iii) the Indenture or any transactions contemplated
thereby or any acts or omissions in connection therewith, provided, however,
that the foregoing shall not release the Noteholders from their express
obligations under this Second Amended Forbearance Agreement, the Indenture, the
Intercreditor Agreement and the Collateral Agreements.  In

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entering into this
Second Amended Forbearance Agreement, the Company and the Subsidiaries
consulted with, and have been represented by, legal counsel and expressly
disclaim any reliance on any representations, acts or omissions by any of the
Releasees and the Company and the Subsidiaries hereby agree and acknowledge
that the validity and effectiveness of the releases set forth herein do not
depend in any way on any such representations, acts and/or omissions or the
accuracy, completeness or validity hereof. 
The provisions of this Section 4 shall survive the expiration of the
Second Forbearance Period and the termination of this Second Amended
Forbearance Agreement and payment in full of the Obligations.

5.             Ratification
of Liability.  The Company and the
Subsidiaries each hereby ratifies and reaffirms all of its Obligations  and its grant of liens on or security
interests in its properties pursuant to the Collateral Agreements to which it
is party as security for the Obligations, and confirms and agrees that such
liens and security interests hereafter secure all the Obligations.

6.             Complete
Integration; Amendments.  This Second
Amended Forbearance Agreement constitutes the full and final agreement between
the Parties with respect to the subject matter hereof, and this Second Amended
Forbearance Agreement may not be modified or amended except by a written
instrument, signed by each of the Parties, expressing such amendment or
modification.  The Parties warrant, promise
and represent that in executing this Second Amended Forbearance Agreement, each
Party is not relying upon any oral representation, promise or statement made by
any other Party

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hereto and that
each Party is not relying upon any promise, statement or representation
contained in any other written instrument.

7.             No
Other Amendments; Reservation of Rights, No Waiver.  Other than as otherwise expressly provided
herein, this Second Amended Forbearance Agreement shall not be deemed to
operate as an amendment or waiver of, or to prejudice, any right, power,
privilege or remedy of the Noteholders or the Indenture Trustee, as applicable,
under the Indenture, the Intercreditor Agreement, the Collateral Agreements or
applicable law, nor shall the entering into this Second Amended Forbearance
Agreement preclude the Noteholders from refusing to enter into any further
amendments or forbearances with respect to the Indenture.  Other than as expressly provided herein, this
Second Amended Forbearance Agreement shall not constitute a forbearance with
respect to (i) any failure by the Company to comply with any covenant or other
provision in the Indenture or (ii) the occurrence or continuance of any present
or future Event of Default.

8.             No
Impairment of Lender’s Rights.  The
Noteholder Group, the Company and the Subsidiaries acknowledge and agree that
nothing contained in this Second Amended Forbearance Agreement nor the
execution of this Second Amended Forbearance Agreement by DDJ shall impair in
any way nor shall be deemed to impair in any way any rights of Lender or any
affiliates of Lender arising under or related to the Loan Agreement, the other
Loan Documents (as defined in the Loan Agreement), the DDJ Second Amended
Forbearance Agreement, the Intercreditor Agreement or otherwise.  All rights of Lender or any affiliate of
Lender arising under or related to the

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Loan Agreement,
the other Loan Documents (as defined in the Loan Agreement), the DDJ Second
Amended Forbearance Agreement, the Intercreditor Agreement or otherwise are
expressly reserved.

9.             Counterparts/Facsimile
Transmission.  This Second Amended
Forbearance Agreement may be signed in counterparts, each of which, when taken
together, shall be deemed an original. 
Execution of this Second Amended Forbearance Agreement is effective if a
signature is delivered by facsimile transmission.

10.           Successors
and Assigns.  This Second Amended
Forbearance Agreement shall be binding upon and inure to the benefit of the
Parties hereto and each of their respective successors, assigns, heirs and
personal representatives.

11.           Authority.  Any person signing this Second Amended
Forbearance Agreement in a representative capacity (i) represents and
warrants that he/she is authorized to sign this Second Amended Forbearance
Agreement on behalf of the Party he/she represents and that his/her signature
upon this Second Amended Forbearance Agreement will bind the represented Party
to the terms of this Second Amended Forbearance Agreement, and
(ii) acknowledges that the other Party to this Second Amended Forbearance
Agreement has relied upon such representation and warranty.

12.           Governing
Law.  This Second Amended Forbearance
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without regard to its choice of law provisions.

13.           Remedies.  All Parties hereto agree that irreparable
damage would result from any Party’s breach of this Second Amended Forbearance
Agreement, and

 16
 

further agree that
a non-breaching Party would have no adequate remedy at law to redress such
breach.  Therefore, the Parties hereto
agree that, in the event of a breach of this Second Amended Forbearance
Agreement, specific performance and/or injunctive relief is appropriate to
remedy such breach.  Notwithstanding the
foregoing, nothing contained in this Section 13 shall be deemed a waiver by any
non-breaching Party hereto of any other remedies available at law to redress
any other Party’s breach of this Second Amended Forbearance Agreement.  Each of the rights and powers provided pursuant
to this Second Amended Forbearance Agreement shall be cumulative and in
addition to and not in derogation of the rights and powers otherwise available
under applicable law to the Parties.

14.           Direction
to Indenture Trustee.  The
Noteholders’ agreement to forbear as provided herein shall constitute a
direction from such Noteholders to the Indenture Trustee to similarly forbear
during the Second Forbearance Period.  In
order to induce the Indenture Trustee to accept such direction, the Company and
the Subsidiaries agree (a) that the Indenture Trustee, as an ex  officio
participant of the Noteholder Group, may receive the copies of all information
and participate in the negotiations referenced in subsections (A) and (B) of
the definition of Forbearance Default in Section 1 of the Second Amended
Forbearance Agreement, and (b) to pay, in accordance with the terms of the
Indenture, the reasonable fees and expenses of the Indenture Trustee incurred
during the Second Forbearance Period promptly on a monthly basis.

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IN
WITNESS WHEREOF, each of
the Parties hereto has caused this Second Amended Forbearance Agreement to be
duly executed and delivered as of the date first above written.

	
  

  	
  THE WORNICK COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jon Geisler

  
	
   

  	
  Name:

  	
  Jon Geisler

  
	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
  Fax:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SUBSIDIARIES

  
	
   

  	
   

  
	
   

  	
  RIGHT AWAY MANAGEMENT CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jon Geisler

  
	
   

  	
  Name:

  	
  Jon Geisler

  
	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
  Fax:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE WORNICK COMPANY RIGHT AWAY

  
	
   

  	
  DIVISION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jon Geisler

  
	
   

  	
  Name:

  	
  Jon Geisler

  
	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
  Fax:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE WORNICK COMPANY RIGHT AWAY

  DIVISION L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jon Geisler

  
	
   

  	
  Name:

  	
  Jon Geisler

  
	
   

  	
  Title:

  	
  President & CEO

  
	
   

  	
  Fax:

  	
   

  

 

 

	
  

  	
  THE NOTEHOLDERS

  
	
   

  	
   

  
	
   

  	
  AIG GLOBAL INVESTMENT CORP.

  
	
   

  	
  as investment adviser and/or subadviser

  
	
   

  	
  for various funds and accounts

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bryan Petermann

  
	
   

  	
  Name:

  	
  Bryan Petermann

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
  Fax:

  	
  713-831-1052

  
	
   

  	
   

  	
   

  
	
   

  	
  QUADRANGLE DEBT RECOVERY ADVISORS LP

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael Weinstock

  
	
   

  	
  Name:

  	
  Michael Weinstock

  
	
   

  	
  Title:

  	
  Managing Principal

  
	
   

  	
  Fax:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CSAM Funding I

  
	
   

  	
  CSAM Funding II

  
	
   

  	
  CSAM Funding III

  
	
   

  	
  CSAM Funding IV

  
	
   

  	
  Atrium CDO

  
	
   

  	
  Atrium II

  
	
   

  	
  Atrium III

  
	
   

  	
  Atrium IV

  
	
   

  	
  Castle Garden Funding

  
	
   

  	
  Credit Suisse Syndicated Loan Fund

  
	
   

  	
  Madison Park Funding I, Ltd.

  
	
   

  	
  CS High Yield Focus CBS, Ltd.

  
	
   

  	
  Atrium V

  
	
   

  	
   By: Credit Suisse Alternative Capital, Inc.,
  as collateral manager

  
	
   

  	
  Madison Park Funding II, Ltd.

  
	
   

  	
   By: Credit Suisse Alternative Capital, Inc.,
  as collateral manager

  
	
   

  	
  Madison Park Funding III, Ltd.

  
	
   

  	
   By: Credit Suisse Alternative Capital, Inc.,
  as collateral manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas Flannery

  
	
   

  	
  Name:

  	
  Thomas Flannery

  
	
   

  	
  Title:

  	
  Authorized Signatory

  
	
   

  	
  Fax:

  	
  (212) 538-8290

  

 

 

	
  

  	
  B IV CAPITAL PARTNERS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: GP Capital IV, LLC, its General Partner

  
	
   

  	
  By: DDJ Capital Management, LLC, Manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Breazzano

  
	
   

  	
  Name:

  	
  David J. Breazzano

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Fax:

  	
  (781) 283-8541

  
	
   

  	
   

  	
   

  
	
   

  	
  DDJ HIGH YIELD FUND

  
	
   

  	
   

  	
   

  
	
   

  	
  By: DDJ Capital Management, LLC,

  
	
   

  	
  its attorney-in-fact

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Breazzano

  
	
   

  	
  Name:

  	
  David J. Breazzano

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Fax:

  	
  (781) 283-8541

  
	
   

  	
   

  	
   

  
	
   

  	
  GMAM INVESTMENT FUNDS TRUST II, for the

  
	
   

  	
  account of the Promark Alternative High Yield Bond

  
	
   

  	
  Fund (Account No. 7M2E)

  
	
   

  	
   

  
	
   

  	
  By: DDJ Capital Management, LLC, on behalf

  
	
   

  	
  of GMAM Investment Funds Trust II, for the

  
	
   

  	
  account of the Promark Alternative High Yield

  
	
   

  	
  Bond Fund, in its capacity as investment manager

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Breazzano

  
	
   

  	
  Name:

  	
  David J. Breazzano

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Fax:

  	
  (781) 283-8541

  

 

	
  

  	
  GMAM INVESTMENT FUNDS TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By: DDJ Capital Management, LLC, on behalf of GMAM
  Investment Funds Trust, in its capacity as investment manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Breazzano

  
	
   

  	
  Name:

  	
  David J. Breazzano

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Fax:

  	
  (781) 283-8541

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL MOTORS WELFARE BENEFIT TRUST (VEBA)

  
	
   

  	
   

  	
   

  
	
   

  	
  By: State Street Bank and Trust Company, solely in
  its capacity as Trustee for General Motors Welfare Benefit Trust (VEBA) as
  directed by DDJ Capital Management, LLC, and not in its individual capacity

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jason R. Buffer

  
	
   

  	
  Name:

  	
  Jason R. Buffer

  
	
   

  	
  Title:

  	
  Vice President State Street Bank & Trust Co.

  
	
   

  	
   

  	
   

  
	
   

  	
  GMAM INVESTMENT FUNDS TRUST II, for the account of
  the Promark Alternative High Yield Bond Fund (Account No. 7MWD)

  
	
   

  	
   

  	
   

  
	
   

  	
  By: DDJ Capital Management, LLC, on behalf of GMAM
  Investment Funds Trust II for the account of the Promark Alternative High
  Yield Bond Fund, in its capacity as investment manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David J. Breazzano

  
	
   

  	
  Name:

  	
  David J. Breazzano

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Fax:

  	
  (781) 283-8541

  
	
   

  	
  Fax:

  	
   

  

 

 

	
  

  	
  DDJ CAPITAL MANAGEMENT GROUP TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
  By: DDJ Capital Management, LLC, Investment Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Breazzano

  
	
   

  	
  Name:

  	
  David J. Breazzano

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Fax:

  	
  (781) 283-8541

  
	
   

  	
   

  	
   

  
	
   

  	
  STICHTING PENSIOENFONDS HOOGOVENS

  
	
   

  	
   

  	
   

  
	
   

  	
  By: DDJ Capital Management, LLC, on behalf of
  Stichting Pensioenfonds Hoogovens, in its capacity as Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Breazzano

  
	
   

  	
  Name:

  	
  David J. Breazzano

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Fax:

  	
  (781) 283-8541

  
	
   

  	
   

  	
   

  
	
   

  	
  THE OCTOBER FUND, LIMITED PARTNERSHIP

  
	
   

  	
   

  	
   

  
	
   

  	
  By: October G.P., LLC, its General Partner

  
	
   

  	
  By: DDJ Capital Management, LLC, Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Breazzano

  
	
   

  	
  Name:

  	
  David J. Breazzano

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Fax:

  	
  (781) 283-8541

  

 

 

	
  

  	
  DDJ/ONTARIO CREDIT OPPORTUNITIES FUND, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: GP DDJ/Ontario Credit Opportunities, L.P., its
  General Partner

  
	
   

  	
  By: GP Credit Opportunities, Ltd., its General
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Breazzano

  
	
   

  	
  Name:

  	
  David J. Breazzano

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
  Fax:

  	
  (781) 283-8541

  
	
   

  	
   

  	
   

  
	
   

  	
  MULTI-STYLE, MULTI-MANAGER FUNDS PLC THE GLOBAL HIGH
  YIELD FUND

  
	
   

  	
   

  	
   

  
	
   

  	
  By: DDJ Capital Management, LLC, on behalf of
  Multi-Style, Multi-Manager Funds PLC, The Global High Yield Fund, in its
  capacity as Money Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Breazzano

  
	
   

  	
  Name:

  	
  David J. Breazzano

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Fax:

  	
  (781) 283-8541

  
	
   

  	
   

  	
   

  
	
   

  	
  DDJ TOTAL RETURN LOAN FUND, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By: GP Total Return, LP, its General Partner

  
	
   

  	
  By: GP Total Return, LLC, its General Partner

  
	
   

  	
  By: DDJ Capital Management, LLC, Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David J. Breazzano

  
	
   

  	
  Name:

  	
  David J. Breazzano

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
  Fax:

  	
  (781) 283-8541

  

 

 

	
  AGREED TO AND ACKNOWLEDGED BY THE INDENTURE
  TRUSTEE (SOLELY WITH RESPECT TO SECTIONS 3(B)(1) REPRESENTATION, WARRANTIES AND
  COVENANTS) AND SECTION 14 (DIRECTION TO INDENTURE TRUSTEE)):

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Lawrence J. Bell

  	
   

  	
   

  	
   

  
	
  Name: 

  	
  Lawrence J. Bell

  	
   

  	
   

  
	
  Title: 

  	
  Vice President

  	
   

  	
   

  
	
  Fax: 

  	
  503-275-5738

  	
   

  	
   

  
						

 

 

Schedule A

SPECIFIED EXISTING DEFAULTS

The Events of Default:

1.             Under Section 6.1(3) of the Indenture as a result of
Issuer’s failure to make an Excess Cash Flow Offer as required by Section 4.22
of the Indenture for the fiscal years ended December 31, 2004, and December 31,
2005.

2.             Under Section 6.1(3) of the Indenture as a result of the
Issuer’s failure to deliver certain annual financial statements as required by
Section 4.3 of the Indenture for the fiscal year ended December 31, 2006.

3.             Under Section 6.1(3) of the Indenture as a result of the
Issuer’s failure to deliver the compliance certificate required by Section
4.4(a) of the Indenture in respect of the Company’s fiscal year ended December
31, 2006.

4.             Under Section 6.1(3) of the Indenture as a result of the
Issuer’s failure to deliver any compliance certificate required by Section
4.4(b) of the Indenture in respect of any other Specified Existing Default.

5.             Under Section 6.1(1) of the Indenture as a result of the
Issuer’s failure to make the scheduled interest payment due under the Notes on
July 15, 2007.

6.             Under Section 6.1(3) of the Indenture as a result of the
Issuer’s failure to deliver certain quarterly financial statements for the
fiscal quarters ended March 31, 2007 and June 30, 2007.

 

 25Exhibit 10.1

FLEETWOOD
ENTERPRISES, INC.

2007 STOCK INCENTIVE PLAN

1.                 Purpose

The purpose of the Fleetwood Enterprises, Inc.
2007 Stock Incentive Plan (the “Plan”) is to advance the interests of Fleetwood
Enterprises, Inc. (the “Company”) by stimulating the efforts of employees,
officers and, to the extent provided by Section 5(d), non-employee
directors, in each case who are selected to be participants, by heightening the
desire of such persons to continue working toward and contributing to the success
and progress of the Company. The Plan supersedes the Company’s 1992 Stock-Based
Incentive Compensation Plan and 1992 Non-Employee Director Stock Option Plan
with respect to future awards, and provides for the grant of Incentive and
Nonqualified Stock Options, Stock Appreciation Rights, Restricted Stock and
Restricted Stock Units, any of which may be performance-based, and for
Incentive Bonuses, which may be paid in cash or stock or a combination thereof,
as determined by the Administrator.

2.                 Definitions

As used in the
Plan, the following terms shall have the meanings set forth below:

(a)           “Administrator”
means the Administrator of the Plan in accordance with Section 18.

(b)           “Award”
means an Incentive Stock Option, Nonqualified Stock Option, Stock Appreciation
Right, Restricted Stock, Restricted Stock Unit or Incentive Bonus granted to a
Participant pursuant to the provisions of the Plan, any of which the
Administrator may structure to qualify in whole or in part as a Performance
Award.

(c)           “Award
Agreement” means a written agreement or other instrument as may be approved
from time to time by the Administrator implementing the grant of each Award. An
Agreement may be in the form of an agreement to be executed by both the
Participant and the Company (or an authorized representative of the Company) or
certificates, notices or similar instruments as approved by the Administrator.

(d)           “Board”
means the board of directors of the Company.

(e)           “Change
in Control” means the following and shall be deemed to occur if any of the
following events occur:

(i)            The
acquisition (other than from the Company) by any person, entity or “group,”
within the meaning of Section 13(d)(3) or 14(d)(2) of the
Exchange Act (excluding, for this purpose, the Company or its subsidiaries, or
any executive benefit plan of the Company or its subsidiaries which acquires
beneficial ownership of voting securities of the Company), of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of twenty-five percent (25%) or more of either the
then-outstanding shares of common stock or the combined voting power of the
Company’s then-outstanding voting securities entitled to vote generally in the
election of directors;

(ii)           Individuals
who, as of the date hereof, constitute the Board (the “Incumbent Board”), cease
for any reason to constitute at least a majority of the Board, provided that
any person becoming a director subsequent to the date hereof whose election, or
nomination for election by the Company’s stockholders, is approved by a vote of
at least a majority of the directors then comprising the Incumbent Board (other
than an election or nomination of an individual whose initial assumption of
office is in connection with an actual or threatened election contest relating
to the election of the directors of the Company, as such terms are used in
Rule 14a-11 of Regulation 14A promulgated under the Exchange
Act) shall, for the purposes of this Plan, be considered as though such person
were a member of the Incumbent Board;

 1
 

(iii)          A
merger or consolidation with any other corporation is consummated, other than

(A)          a
merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of
another entity) more than 50% of the combined voting power of the voting
securities of the Company or such other entity outstanding immediately after
such merger or consolidation, and

(B)           a
merger or consolidation effected to implement a recapitalization of the Company
(or similar transaction) in which no person acquires 25% or more of the
combined voting power of the Company’s then outstanding voting securities; or

(iv)          A
plan of complete liquidation of the Company or an agreement for the sale or
other disposition by the Company of all or substantially all of the Company’s
assets is consummated.

Notwithstanding
the preceding provisions of this Section 2(e), a Change in Control shall
not be deemed to have occurred (1) if the “person” described in the
preceding provisions of this Paragraph is an underwriter or underwriting
syndicate that has acquired the ownership of 50% or more of the combined voting
power of the Company’s then outstanding voting securities solely in connection
with a public offering of the Company’s securities; (2) if the “person”
described in the preceding provisions of this Paragraph is an employee stock
ownership plan or other employee benefit plan maintained by the Company that is
qualified under the provisions of the Employee Retirement Income Security Act
of 1974, as amended; or (3)  if the person described in
clause (i) of the preceding provisions of this Paragraph would not
otherwise be a beneficial owner of 25% or more of the combined voting power of
the Company’s then outstanding voting securities but for a reduction in the
number of outstanding voting securities resulting from a stock repurchase
program or other similar plan of the Company or from a self tender offer of the
Company, which plan or tender offer commenced on or after the date hereof,
provided, however, that the term “person” shall include such person from and
after the first date upon which (A) such person, since the date of the
commencement of such plan or tender offer, shall have acquired beneficial
ownership of, in the aggregate, a number of voting securities of the Company
equal to 1% or more of the voting securities of the Company then outstanding
and (B) such person, together with all affiliates and associates of such
person, shall beneficially own 25% or more the voting securities of the Company
then outstanding.

(f)            “Code”
means the Internal Revenue Code of 1986, as amended from time to time, and the
rulings and regulations issues thereunder.

(g)           “Company”
means Fleetwood Enterprises, Inc., a Delaware corporation.

(h)           “Continued
Employment” refers to uninterrupted service for the Company.

(i)            “Early
Retirement” has the meaning specified by the Administrator in the terms of an
Award Agreement or, in the absence of any such term, for Participants other
than Non-employee Directors shall mean retirement from active employment with
the Company and its Subsidiaries on or after age 55 with 10 or more years
of service. This does not apply in situations pursuant to any Termination For
Cause or pursuant to any termination for unsatisfactory performance, or where
the participant has become an employee of or independent contractor to any
other organization that competes with the Company in the recreational vehicle
or manufactured or modular housing industries, all as determined by the
Company.

(j)            “Fair
Market Value” means the closing selling price for the Common Stock reported on
the applicable composite tape or other comparable reporting system on the
applicable date, or if the applicable date is not a trading day, on the most
recent trading day immediately prior to the applicable date; or if closing
selling prices are not regularly reported for the Common Stock then the Fair
Market Value shall be such value as the Committee in good faith determines.

 2
 

(k)           “Incentive
Bonus” means a bonus opportunity awarded under Section 9 pursuant to which
a Participant may become entitled to receive an amount based on satisfaction of
such performance criteria as are specified in the Award Agreement.

(l)            “Independent
Director” refers to a Director of the Company who is an Independent Director as
defined by the New York Stock Exchange listing standards.

(m)          “Incentive
Stock Option” means a stock option that is intended to qualify as an “incentive
stock option” within the meaning of Section 422 of the Code.

(n)           “Non-Employee
Director” means each person who is, or is elected to be, a member of the Board
and who is not an employee of the Company or any Subsidiary.

(o)           “Nonqualified
Stock Option” means a stock option that is not intended to qualify as an “incentive
stock option” within the meaning of Section 422 of the Code.

(p)           “Option”
means an Incentive Stock Option and/or a Nonqualified Stock Option granted
pursuant to Section 6 of the Plan.

(q)           “Participant”
means any individual described in Section 3 to whom Awards have been
granted from time to time by the Administrator and any authorized transferee of
such individual.

(r)            “Performance
Award” means an Award, the grant, issuance, retention, vesting or settlement of
which is subject to satisfaction of one or more Qualifying Performance Criteria
established pursuant to Section 13.

(s)           “Plan”
means the Fleetwood Enterprises, Inc. 2007 Stock Incentive Plan as set
forth herein and as amended from time to time.

(t)            “Prior
Plans” mean the Company’s 1992 Stock-Based Incentive Compensation Plan and 1992
Non-Employee Director Stock Option Plan.

(u)           “Qualifying
Performance Criteria” has the meaning set forth in Section 13(b).

(v)           “Restricted
Stock” means Shares granted pursuant to Section 8.

(w)          “Restricted
Stock Unit” means an Award granted to a Participant pursuant to Section 8
for which Shares or cash in lieu thereof may be issued in the future.

(x)            “Retirement”
has the meaning specified by the Administrator in the terms of an Award
Agreement or, in the absence of any such term, (i) for Participants other
than Non-Employee Directors shall mean retirement from active employment with
the Company and its Subsidiaries at or after age 65, provided that the Participant
has not become an employee of or independent contractor to any other
organization that competes with the Company in the recreational vehicle or
manufactured or modular housing industries, and (ii) for Non-Employee
Directors shall mean retirement from service as a member of the Board at the
end of a regular term in office. The determination of the Administrator as to
an individual’s Retirement shall be conclusive on all parties.

(y)           “Section 409A”
shall mean Section 409A of the Code, or any successor provision, and
applicable Treasury Regulations and other applicable guidance thereunder

(z)            “Share”
means a share of the Company’s common stock, par value $1.00, subject to
adjustment as provided in Section 12.

(aa)         “Specified
Employee” shall mean a specified employee as defined in Code
Section 409A(a)(2)(B) or applicable proposed or final regulations
under Code Section 409A.

 3
 

(bb)         “Stock
Appreciation Right” means a right granted pursuant to Section 7 that
entitles the Participant to receive, in cash or Shares or a combination
thereof, as determined by the Administrator, value equal to or otherwise based
on the excess of (i) the market price of a specified number of Shares at
the time of exercise over (ii) the exercise price of the right, as established
by the Administrator on the date of grant.

(cc)         “Subsidiary”
means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company where each of the corporations in the
unbroken chain other than the last corporation owns stock possessing at least
50 percent or more of the total combined voting power of all classes of stock
in one of the other corporations in the chain, and if specifically determined
by the Administrator in the context other than with respect to Incentive Stock
Options, may include an entity in which the Company has a significant ownership
interest or that is directly or indirectly controlled by the Company.

(dd)         “Termination
For Cause” refers to termination of an Participant’s service in a manner either
consistent with the definition of “Cause” as outlined in a written agreement
between the Participant and the Company, or the intentional dishonest, illegal
or insubordinate conduct which is materially injurious to the Company or a
subsidiary, or the breach of any provision of any employment, nondisclosure,
non-competition or similar agreement. The Administrator, in its sole
discretion, shall determine whether circumstances warrant a Termination For
Cause.

(ee)         “Termination
of Employment” means ceasing to serve as a full-time employee of the Company
and its Subsidiaries or, with respect to a Non-Employee Director, ceasing to
serve as such for the Company, except that with respect to all or any Awards
held by a Participant (i) the Administrator may determine, subject to
Section 6(d), that an approved leave of absence or approved employment on
a less than full-time basis is not considered a Termination of Employment,
(ii) the Administrator may determine that a transition of employment to
service with a partnership, joint venture or corporation not meeting the
requirements of a Subsidiary in which the Company or a Subsidiary is a party is
not considered a Termination of Employment, (iii) service as a member of
the Board shall constitute Continued Employment with respect to Awards granted
to a Participant while he or she served as an employee and (iv) service as
an employee of the Company or a Subsidiary shall constitute Continued
Employment with respect to Awards granted to a Participant while he or she served
as a member of the Board. The Administrator shall determine whether any
corporate transaction, such as a sale or spin-off of a division or subsidiary
that employs a Participant, shall be deemed to result in a termination of
employment with the Company and its Subsidiaries for purposes of any affected
Participant’s Options, and the Administrator’s decision shall be final and
binding.

(ff)           “Total
and Permanent Disablement” has the meaning specified by the Administrator in
the terms of an Award Agreement or, in the absence of any such term or in the
case of an Option intending to qualify as an Incentive Stock Option, the
inability to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or which has lasted or can be expected to last for a continuous
period of not less than 12 months. The determination of the Administrator as to
an individual’s Total and Permanent Disablement shall be conclusive on all
parties.

3.                 Eligibility

Any person who is a current or prospective officer or
employee (including any Board Member who is also an employee, in his or her
capacity as such) of the Company or of any Subsidiary shall be eligible for
selection by the Administrator for the grant of Awards hereunder. To the extent
provided by Section 5(d), any Non-Employee Director shall be eligible for
the grant of Awards hereunder as determined by the Administrator. Options
intending to qualify as Incentive Stock Options may only be granted to
employees

 4
 

of the Company or any
Subsidiary within the meaning of the Code, as selected by the Administrator.
For purposes of this Plan, the Chairman of the Board’s status as an employee
shall be determined by the Administrator.

4.                 Effective Date
and Termination of Plan

This Plan was adopted by the Board as of June 12,
2007, and it will become effective (the “Effective Date”) when it is approved
by the Company’s stockholders. All Awards granted under this Plan are subject
to, and may not be exercised before, the approval of this Plan by the
stockholders prior to the first anniversary date of the effective date of the
Plan, by the affirmative vote of the holders of a majority of the outstanding
Shares of the Company present, or represented by proxy, and entitled to vote,
at a meeting of the Company’s stockholders or by written consent in accordance
with the laws of the State of Delaware; provided that if such approval by the
stockholders of the Company is not forthcoming, all Awards previously granted
under this Plan shall be void. The Plan shall remain available for the grant of
Awards until the tenth (10th) anniversary of the Effective Date.
Notwithstanding the foregoing, the Plan may be terminated at such earlier time
as the Board may determine. Termination of the Plan will not affect the rights
and obligations of the Participants and the Company arising under Awards
theretofore granted and then in effect.

5.                 Shares Subject to
the Plan and to Awards

(a)   Aggregate
Limits.   The aggregate
number of Shares issuable pursuant to all Awards shall not exceed 5,000,000,
plus (i) any Shares that were authorized for issuance under the Prior
Plans that, as of September 11, 2007, remain available for issuance under
the Prior Plans (not including any Shares that are subject to, as of
September 11, 2007, outstanding awards under the Prior Plans or any Shares
that prior to September 11, 2007 were issued pursuant to awards granted
under the Prior Plans) and (ii) any Shares subject to outstanding awards
under the Prior Plans as of September 11, 2007, that on or after such date
cease for any reason to be subject to such awards (other than by reason of
exercise or settlement of the awards to the extent they are exercised for or
settled in vested and nonforfeitable shares); provided that any Shares granted
under Options or Stock Appreciation Rights shall be counted against this limit
on a one-for-one basis and any Shares granted as Awards other than Options or
Stock Appreciation Rights shall be counted against this limit as 1.67 Shares
for every one (1) Share subject to such Award. The aggregate number of
Shares available for grant under this Plan and the number of Shares subject to
outstanding Awards shall be subject to adjustment as provided in
Section 12. The Shares issued pursuant to Awards granted under this Plan
may be shares that are authorized and unissued or shares that were reacquired
by the Company, including shares purchased in the open market.

(b)   Issuance
of Shares.   For purposes of
Section 5(a), the aggregate number of Shares issued under this Plan at any
time shall equal only the number of Shares actually issued upon exercise or
settlement of an Award. Notwithstanding the foregoing, Shares subject to an Award under the Plan may not again be made available
for issuance under the Plan if such Shares are: (i) Shares that were
subject to a stock-settled Stock Appreciation Right and were not issued upon
the net settlement or net exercise of such Stock Appreciation Right,
(ii) Shares used to pay the exercise price of an Option, (iii) Shares
delivered to or withheld by the Company to pay the withholding taxes related to
an Option or a Stock Appreciation Right, or (iv) Shares repurchased on the
open market with the proceeds of an Option exercise. Shares subject to
Awards that have been canceled, expired, forfeited or otherwise not issued
under an Award and Shares subject to Awards settled in cash shall not count as
Shares issued under this Plan.

(c)   Code
Limits.   The aggregate
number of Shares subject to Option or Stock Appreciation Right Awards granted
under this Plan during any calendar year to any one Participant shall not
exceed 900,000 and the aggregate number of Shares subject to awards other than
Options or Stock Appreciation Rights granted under this Plan during any
calendar year to any one Participant shall not exceed 450,000; which

 5
 

shall be calculated and
adjusted pursuant to Section 12 only to the extent that such calculation
or adjustment will not affect the status of any Award intended to qualify as “performance-based
compensation” under Section 162(m) of the Code but which number shall
not count any tandem Stock Appreciation Rights (as defined in Section 7).
The aggregate number of Shares that may be issued pursuant to the exercise of
Incentive Stock Options granted under this Plan shall not exceed 5,000,000
which number shall be calculated and adjusted pursuant to Section 12 only
to the extent that such calculation or adjustment will not affect the status of
any option intended to qualify as an Incentive Stock Option under
Section 422 of the Code. The maximum cash amount payable pursuant to that
portion of an Incentive Bonus granted in any calendar year to any Participant
under this Plan that is intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code shall not exceed
$3,250,000 dollars

(d)   Director
Awards.   The aggregate
number of Shares under all Awards, including Shares subject to Options and Stock
Appreciation Rights, granted under this Plan during any calendar year to any
one Non-Employee Director shall be an amount of $50,000, provided, however,
that commencing in fiscal year 2009, if at any time the Board determines that
an increase in the foregoing limit is recommended based upon corporate
performance and best practices of peer companies, the Board, is its sole
discretion, may increase such amount, but in no event shall the amount of
foregoing limit exceed $100,000, provided, however, that in the calendar year
in which a Non-Employee Director first joins the Board of Directors or is first
designated as Chairman of the Board of Directors or Lead Director, the maximum
number of shares subject to Awards granted to the Participant may be up to two
hundred percent (200%) of the foregoing limit and the foregoing limit shall not
count any tandem Stock Appreciation Rights (as defined in Section 7).

6.                 Options

(a)   Option
Awards.   Options may be
granted at any time and from time to time prior to the termination of the Plan
to Participants as determined by the Administrator. No Participant shall have
any rights as a stockholder with respect to any Shares subject to Option
hereunder until said Shares have been issued. Each Option shall be evidenced by
an Award Agreement. Options granted pursuant to the Plan need not be identical
but each Option must contain and be subject to the terms and conditions set
forth below.

(b)   Price.   The Administrator will establish the
exercise price per Share under each Option, which, in no event will be less
than the Fair Market Value of the Shares on the date of grant; provided,
however, that the exercise price per Share with respect to an Option that is
granted in connection with a merger or other acquisition as a substitute or
replacement award for options held by optionees of the acquired entity may be
less than 100% of the market price of the Shares on the date such Option is
granted if such exercise price is based on a formula set forth in the terms of
the options held by such optionees or in the terms of the agreement providing
for such merger or other acquisition. The exercise price of any Option may be
paid in Shares, cash or a combination thereof, as determined by the
Administrator, including an irrevocable commitment by a broker to pay over such
amount from a sale of the Shares issuable under an Option, the delivery of
previously owned Shares and withholding of Shares deliverable upon exercise.

(c)   No
Repricing without Stockholder Approval.   Other
than in connection with a change in the Company’s capitalization (as described
in Section 12) the exercise price of an Option may not be reduced without
stockholder approval (including canceling previously awarded Options and
regranting them with a lower exercise price).

(d)   Provisions
Applicable to Options.   The
date on which Options become exercisable shall be determined at the sole
discretion of the Administrator and set forth in an Award Agreement. To the
extent that a grant of an Option is to vest based upon the Continued Employment
of the Participant, subject to

 6
 

Section 6(e) and
Section 20, no portion of the Award shall vest sooner than one
(1) year from the date of grant (or such longer period as the Administrator
may determine, but in each case subject to Section 6(e) and
Section 20 hereof. Unless provided otherwise in the applicable Award
Agreement, to the extent that the Administrator determines that an approved
leave of absence or employment on a less than full-time basis is not a
Termination of employment, the vesting period and/or exercisability of an
Option shall be adjusted by the Administrator during or to reflect the effects
of any period during which the Participant is on an approved leave of absence
or is employed on a less than full-time basis.

(e)   Term
of Options and Termination of Employment   The
Administrator shall establish the term of each Option, which in no case shall
exceed a period of ten (10) years from the date of grant. Unless an Option
earlier expires upon the expiration date established pursuant to the foregoing
sentence, upon the termination of the Participant’s employment, his or her
rights to exercise an Option then held shall be only as follows, unless the
Administrator specifies otherwise:

(1)   Death.   Upon the death of a Participant while
in the employ of the Company or any Subsidiary or while serving as a member of
the Board, all of the Participant’s Options then held shall be exercisable by
his or her estate, heir or beneficiary for up to one (1) year from the
date of death. Any and all of the deceased Participant’s Options that are not
exercised during the one (1) year commencing on the date of death shall
terminate as of the end of such one (1) year period, or sooner pursuant to
the original term of the Option.

If a Participant
should die within thirty (30) days of his or her termination of employment with
the Company and its Subsidiaries, an Option shall be exercisable by his or her
estate, heir or beneficiary at any time during the one (1) year period
commencing on the date of termination, but only to the extent of the number of
Shares as to which such Option was exercisable as of the date of such
termination. Any and all of the deceased Participant’s Options that are not
exercised during the one (1) year period commencing on the date of
termination shall terminate as of the end of such one (1) year period, or
sooner pursuant to the original term of the Option.

A Participant’s estate shall mean his or her legal
representative or other person who so acquires the right to exercise the Option
by bequest or inheritance or by reason of the death of the Participant.

(2)   Total
and Permanent Disablement.   Upon
the Total and Permanent Disablement of a Participant, the Participant’s
unvested options shall continue to vest based on their original vesting
schedule for up to one (1) year from the date of Total and Permanent Disablement.
Options that are exercisable as of the date of Total and Permanent Disablement,
or become exercisable subsequent to the date of Total and Permanent Disablement
will expire one (1) year from the date of Total and Permanent Disablement,
or sooner pursuant to the original term of the Option. In the case of
Participants who are also Non-Employee Directors, all of the Participant’s
Options then held shall become exercisable and remain exercisable for up to one
(1) year from the date of Total and Permanent Disablement. Options that
are exercisable as of the date of Total and Permanent Disablement, or become
exercisable subsequent to the date of Total and Permanent Disablement will
expire one (1) year from the date of date of Total and Permanent Disablement,
or sooner pursuant to the original term of the option.

(3)   Retirement.   Upon Retirement of a Participant, the
Participant’s Options held shall become, and remain, exercisable for up to
three (3) years from the date of Retirement. Any and all of the
Participant’s Options that are not exercised during the three (3) year
period commencing on the date of Retirement shall terminate as of the end of
such three (3) year period, or sooner pursuant to the original term of the
option.

(4)   Early
Retirement.   Upon
Early Retirement of a Participant, the Participant’s unvested options shall
continue to vest based on their original vesting schedule for up to three
(3) years from

 7
 

the date of Early
Retirement. Any and all of the Participant’s Options that are not exercised
during the three (3) year period commencing on the date of Early
Retirement shall terminate as of the end of such three (3) year period, or
sooner pursuant to the original term of the option.

(5)   Termination
for Cause.   If
a Participant’s service terminates due to a Termination For Cause, all
outstanding Awards held by the Participant (whether vested or unvested) will be
terminated as of the commencement of business on the date of Termination for Cause.

(6)   Other
Reasons.   Upon the date of a
termination of a Participant’s employment for any reason other than those
stated above in Sections 6(e)(1), (e)(2), (e)(3), (e)(4), (e)(5) or as
described in Section 15, (A) to the extent that any Option is not exercisable
as of such termination date, such portion of the Option shall remain
unexercisable and shall terminate as of such date, and (B) to the extent
that any Option is exercisable as of such termination date, such portion of the
Option shall expire on the earlier of (i) ninety (90) days following such
date and (ii) the expiration date of such Option.

(f)   Incentive
Stock Options.   Notwithstanding
anything to the contrary in this Section 6, in the case of the grant of an
Option intending to qualify as an Incentive Stock Option: (i) if the
Participant owns stock possessing more than 10 percent of the combined voting
power of all classes of stock of the Company (a “10% Shareholder”), the
exercise price of such Option must be at least 110 percent of the fair market
value of the Shares on the date of grant and the Option must expire within a
period of not more than five (5) years from the date of grant, and
(ii) termination of employment will occur when the person to whom an Award
was granted ceases to be an employee (as determined in accordance with
Section 3401(c) of the Code and the regulations promulgated thereunder)
of the Company and its Subsidiaries. Notwithstanding anything in this
Section 6 to the contrary, options designated as Incentive Stock Options
shall not be eligible for treatment under the Code as Incentive Stock Options
(and will be deemed to be Nonqualified Stock Options) to the extent that either
(a) the aggregate fair market value of Shares (determined as of the time
of grant) with respect to which such Options are exercisable for the first time
by the Participant during any calendar year (under all plans of the Company and
any Subsidiary) exceeds $100,000, taking Options into account in the order in
which they were granted, or (b) such Options otherwise remain exercisable
but are not exercised within three (3) months of Termination of employment
(or such other period of time provided in Section 422 of the Code).

7.                 Stock
Appreciation Rights

Stock Appreciation Rights may be granted to
Participants from time to time either in tandem with or as a component of other
Awards granted under the Plan (“tandem Stock Appreciation Rights”) or not in
conjunction with other Awards (“freestanding Stock Appreciation Rights”) and
may, but need not, relate to a specific Option granted under Section 6.
The provisions of Stock Appreciation Rights need not be the same with respect
to each grant or each recipient. Any Stock Appreciation Right granted in tandem
with an Award may be granted at the same time such Award is granted or at any
time thereafter before exercise or expiration of such Award. All freestanding
Stock Appreciation Rights shall be granted subject to the same terms and
conditions applicable to Options as set forth in Section 6 and all tandem
Stock Appreciation Rights shall have the same exercise price, vesting,
exercisability, forfeiture and termination provisions as the Award to which
they relate. Subject to the provisions of Section 6 and the immediately
preceding sentence, the Administrator may impose such other conditions or
restrictions on any Stock Appreciation Right as it shall deem appropriate. Stock
Appreciation Rights may be settled in Shares, cash or a combination thereof, as
determined by the Administrator and set forth in the applicable Award
Agreement. Other than in connection with a change in the Company’s
capitalization (as described in Section 12) the exercise price of Stock
Appreciation Rights may not be reduced without stockholder approval (including
canceling previously awarded Stock Appreciation Rights and regranting them with
a lower exercise price).

 

 8

8.   Restricted Stock and Restricted Stock
Units

(a)   Restricted Stock and Restricted Stock
Unit Awards.   Restricted
Stock and Restricted Stock Units may be granted at any time and from time to
time prior to the termination of the Plan to Participants as determined by the
Administrator. Restricted Stock is an award or issuance of Shares the grant,
issuance, retention, vesting and/or transferability of which is subject during
specified periods of time to such conditions (including Continued Employment or
performance conditions) and terms as the Administrator deems appropriate.
Restricted Stock Units are Awards denominated in units of Shares under which
the issuance of Shares is subject to such conditions (including continued
employment or performance conditions) and terms as the Administrator deems
appropriate. Each grant of Restricted Stock and Restricted Stock Units shall be
evidenced by an Award Agreement. Unless determined otherwise by the
Administrator, each Restricted Stock Unit will be equal to one Share and will
entitle a Participant to either the issuance of Shares or payment of an amount
of cash determined with reference to the value of Shares. To the extent
determined by the Administrator, Restricted Stock and Restricted Stock Units
may be satisfied or settled in Shares, cash or a combination thereof.
Restricted Stock and Restricted Stock Units granted pursuant to the Plan need
not be identical but each grant of Restricted Stock and Restricted Stock Units
must contain and be subject to the terms and conditions set forth below.

(b)   Contents
of Agreement.   Each
Award Agreement shall contain provisions regarding (i) the number of
Shares or Restricted Stock Units subject to such Award or a formula for
determining such number, (ii) the purchase price of the Shares, if any,
and the means of payment, (iii) the performance criteria, if any, and
level of achievement versus these criteria that shall determine the number of
Shares or Restricted Stock Units granted, issued, retainable and/or vested,
(iv) such terms and conditions on the grant, issuance, vesting and/or
forfeiture of the Shares or Restricted Stock Units as may be determined from
time to time by the Administrator, (v) the term of the performance period,
if any, as to which performance will be measured for determining the number of
such Shares or Restricted Stock Units, and (vi) restrictions on the
transferability of the Shares or Restricted Stock Units. Shares issued under a
Restricted Stock Award may be issued in the name of the Participant and held by
the Participant or held by the Company, in each case as the Administrator may
provide.

(c)   Vesting
and Performance Criteria.   The
grant, issuance, retention, vesting and/or settlement of shares of Restricted
Stock and Restricted Stock Units will occur when and in such installments as
the Administrator determines or under criteria the Administrator establishes,
which may include Qualifying Performance Criteria. The grant, issuance,
retention, vesting and/or settlement of Shares under any such Award that is
based on performance criteria and level of achievement versus such criteria
will be subject to a performance period of not less than one (1) year, and
the grant, issuance, retention, vesting and/or settlement of Shares under any
Restricted Stock or Restricted Stock Unit Award that is based solely upon
Continued Employment and/or the passage of time may not vest or be settled in
full over a period of less than three (3) years but may be subject to
pro-rata vesting over such period, except that the Administrator may provide
for the satisfaction and/or lapse of all conditions under any such Award in the
event of the Participant’s death, disability, Retirement or in connection with
a Change in Control of the Company, and the Administrator may provide that any
such restriction or limitation will not apply in the case of a Restricted Stock
or Restricted Stock Unit Award that is issued in payment or settlement of
compensation that has been earned by the Participant. Notwithstanding anything
in this Plan to the contrary, the performance criteria for any Restricted Stock
or Restricted Stock Unit that is intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code will be a measure
based on one or more Qualifying Performance Criteria selected by the
Administrator and specified when the Award is granted.

(d)   Discretionary Adjustments and Limits.   Subject to the limits imposed under
Section 162(m) of the Code for Awards that are intended to qualify as
“performance-based compensation,” notwithstanding the satisfaction of any
performance goals, the number of Shares granted, issued, retainable and/or
vested

 9
 

under an Award of
Restricted Stock or Restricted Stock Units on account of either financial
performance or personal performance evaluations may, to the extent specified in
the Award Agreement, be reduced, but not increased, by the Administrator on the
basis of such further considerations as the Administrator shall determine.

(e)   Voting
Rights.   Unless otherwise
determined by the Administrator, Participants holding shares of Restricted
Stock granted hereunder may exercise full voting rights with respect to those
shares during the period of restriction. Participants shall have no voting
rights with respect to Shares underlying Restricted Stock Units unless and
until such Shares are reflected as issued and outstanding shares on the Company’s
stock ledger.

(f)   Dividends
and Distributions.   Participants
in whose name Restricted Stock is granted shall be entitled to receive all
dividends and other distributions paid with respect to those Shares, unless
determined otherwise by the Administrator. The Administrator will determine
whether any such dividends or distributions will be automatically reinvested in
additional shares of Restricted Stock and subject to the same restrictions on
transferability as the Restricted Stock with respect to which they were
distributed or whether such dividends or distributions will be paid in cash.
Shares underlying Restricted Stock Units shall be entitled to dividends or
dividend equivalents only to the extent provided by the Administrator.

(g)   Effect of Termination of
Employment.   Except
as otherwise determined by the Committee and provided in an Award Agreement:

(i)            in
the event a Participant’s employment with the Company shall terminate for any
reason, other than: Death, Total and Permanent Disablement, Early Retirement,
or Retirement, all Awards under the Plan whose restrictions have not lapsed
will be forfeited;

(ii)           in
the case of the Death of a Participant, Awards held by the Participant at the
time of death or Disability that vest based on Continued Employment will
accelerate, fully vest and be distributed to the Participant’s legal
representatives or heirs in the case of death. In the case of Participants who
are also Non-Employee Directors all of the Participant’s Awards then held shall
continue to vest pursuant to their original vesting schedule for one
(1) year from the date of Death. Any Awards that remain unvested on the
date that is one (1) year from the date of Death will be forfeited;

(iii)          in
the case of the Total and Permanent Disablement of a Participant, Awards held
by the Participant at the time of Total and Permanent Disablement that vest
based on Continued Employment will continue to vest pursuant to their original
vesting schedule for one (1) year. Upon vesting, Awards will be
distributed to the Participant’s legal representatives. Awards that remain
unvested at the date that is one year (1) from the date of Total and
Permanent Disablement of a Participant will be forfeited;

(iv)          in
the event a Participant’s employment with the Company shall terminate due to
Retirement, Awards held by the Participant at the time of Retirement that vest
based on Continued Employment will accelerate and fully vest on the date of
Retirement. In the case of Participants who are also Non-Employee Directors,
all of the Participant’s Awards then held shall continue to vest pursuant to
their original vesting schedule for one (1) year from the date of
Retirement. Any Awards that remain unvested on the date that is one
(1) year from the date of Retirement will be forfeited;

(v)           in
the event a Participant’s employment with the Company shall terminate due to
Early Retirement, Awards held by the Participant at the time of Early
Retirement that vest based on Continuous Service will continue to vest for
pursuant to their original vesting schedule for two (2) years. Awards
that remain unvested at the date that is two years (2) from the date of
the Early Retirement of a Participant will be forfeited.

 10
 

9.   Incentive Bonuses

(a)   General.   Each Incentive Bonus Award will confer
upon the Participant the opportunity to earn a future payment tied to the level
of achievement with respect to one or more performance criteria established for
a performance period of not less than one (1) year.

(b)   Incentive Bonus Document.   The terms of any Incentive Bonus will
be set forth in an Award Agreement. Each Award Agreement evidencing an
Incentive Bonus shall contain provisions regarding (i) the target and
maximum amount payable to the Participant as an Incentive Bonus, (ii) the
performance criteria and level of achievement versus these criteria that shall
determine the amount of such payment, (iii) the term of the performance
period as to which performance shall be measured for determining the amount of
any payment, (iv) the timing of any payment earned by virtue of
performance, (v) restrictions on the alienation or transfer of the
Incentive Bonus prior to actual payment, (vi) forfeiture provisions and
(vii) such further terms and conditions, in each case not inconsistent
with this Plan as may be determined from time to time by the Administrator.

(c)   Performance Criteria.   The Administrator shall establish the
performance criteria and level of achievement versus these criteria that shall
determine the target and maximum amount payable under an Incentive Bonus, which
criteria may be based on financial performance and/or personal performance
evaluations. The Administrator may specify the percentage of the target
Incentive Bonus that is intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code. Notwithstanding
anything to the contrary herein, the performance criteria for any portion of an
Incentive Bonus that is intended by the Administrator to satisfy the
requirements for “performance-based compensation” under
Section 162(m) of the Code shall be a measure based on one or more
Qualifying Performance Criteria (as defined in Section 13(b)) selected by
the Administrator and specified at the time the Incentive Bonus is granted, or
within the time prescribed by Section 162(m) and shall otherwise be
in compliance with Section 162(m). The Administrator shall certify the
extent to which any Qualifying Performance Criteria has been satisfied, and the
amount payable as a result thereof, prior to payment of any Incentive Bonus
that is intended to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code.

(d)   Timing and Form of Payment.   The Administrator shall determine the
timing of payment of any Incentive Bonus. Payment of the amount due under an
Incentive Bonus may be made in cash or in Shares, as determined by the
Administrator. The Administrator may provide for or, subject to such terms and
conditions as the Administrator may specify, may permit a Participant to elect
for the payment of any Incentive Bonus to be deferred to a specified date or
event.

(e)   Discretionary
Adjustments.   Notwithstanding satisfaction of any performance
goals, the amount paid under an Incentive Bonus on account of either financial
performance or personal performance evaluations may, to the extent specified in
the Award Agreement, be reduced, but not increased, by the Administrator on the
basis of such further considerations as the Administrator shall determine.

10.   Deferral of Gains

The Administrator may, in an Award
Agreement or otherwise, provide for the deferred delivery of Shares upon
settlement, vesting or other events with respect to Restricted Stock or
Restricted Stock Units, or in payment or satisfaction of an Incentive Bonus.
Notwithstanding anything herein to the contrary, in no event will any deferral
of the delivery of Shares or any other payment with respect to any Award be
allowed if the Administrator determines, in its sole discretion, that the
deferral would result in the imposition of the additional tax under
Section409A(a)(1)(B) of the Code. No award shall provide for deferral of
compensation that does not comply with Section 409A of the Code, unless
the Board, at the time of grant, specifically provides that the Award is not
intended to comply with Section 409A of the Code. The Company shall have
no liability to a Participant, or any other party, if an Award that is intended
to be

 11
 

exempt
from, or compliant with, Section 409A is not so exempt or compliant or for
any action taken by the Board.

11.   Conditions and Restrictions Upon
Securities Subject to Awards

The Administrator may provide that the Shares issued
upon exercise of an Option or Stock Appreciation Right or otherwise subject to
or issued under an Award shall be subject to such further agreements,
restrictions, conditions or limitations as the Administrator in its discretion
may specify prior to the exercise of such Option or Stock Appreciation Right or
the grant, vesting or settlement of such Award, including without limitation,
conditions on vesting or transferability, forfeiture or repurchase provisions
and method of payment for the Shares issued upon exercise, vesting or
settlement of such Award (including the actual or constructive surrender of
Shares already owned by the Participant) or payment of taxes arising in
connection with an Award. Without limiting the foregoing, such restrictions may
address the timing and manner of any resales by the Participant or other
subsequent transfers by the Participant of any Shares issued under an Award,
including without limitation (i) restrictions under an insider trading
policy or pursuant to applicable law, (ii) restrictions designed to delay
and/or coordinate the timing and manner of sales by Participant and holders of
other Company equity compensation arrangements, (iii) restrictions as to
the use of a specified brokerage firm for such resales or other transfers and
(iv) provisions requiring Shares to be sold on the open market or to the
Company in order to satisfy tax withholding or other obligations.

12.   Adjustment of and Changes in the Stock

In the event that any dividend or other distribution
(whether in the form of cash, Shares, other securities or other property),
stock split or a combination or consolidation of the outstanding Shares into a
lesser number of shares, is declared with respect to the Shares, the
authorization limits under Sections 5(a) and 5(c) shall be
increased or decreased proportionately, and the Shares then subject to each
Award shall be increased or decreased proportionately without any change in the
aggregate purchase price therefore. In the event the Shares shall be changed
into or exchanged for a different number or class of shares of stock or
securities of the Company or of another corporation, whether through
recapitalization, reorganization, reclassification, merger, consolidation,
split-up, spin-off, combination, repurchase or exchange of Shares or other
securities of the Company, issuance of warrants or other rights to purchase
Shares or other securities of the Company, or any other similar corporate
transaction or event affects the Shares such that an equitable adjustment would
be required in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan, then the authorization
limits under Sections 5(a) and 5(c) shall be adjusted
proportionately, and an equitable adjustment shall be made to each Share
subject to an Award such that no dilution or enlargement of the benefits or
potential benefits occurs. Each such Share then subject to each Award shall be
adjusted to the number and class of shares into which each outstanding Share
shall be so exchanged such that no dilution or enlargement of the benefits
occurs, all without change in the aggregate purchase price for the Shares then
subject to each Award. Action by the Committee pursuant to this Section 12
may include adjustment to any or all of: (i) the number and type of Shares
(or other securities or other property) that thereafter may be made the subject
of Awards or be delivered under the Plan; (ii) the number and type of
Shares (or other securities or other property) subject to outstanding Awards;
(iii) the purchase price or exercise price of a Share under any
outstanding Award or the measure to be used to determine the amount of the
benefit payable on an Award; and (iv) any other adjustments the Committee
determines to be equitable.

No right to purchase fractional shares shall result
from any adjustment in Awards pursuant to this Section 12. In case of any
such adjustment, the Shares subject to the Award shall be rounded down to the
nearest whole share. The Company shall notify Participants holding Awards
subject to any adjustments

 12
 

pursuant to this
Section 12 of such adjustment, but (whether or not notice is given) such
adjustment shall be effective and binding for all purposes of the Plan.

13.   Qualifying Performance-Based
Compensation

(a)   General.   The Administrator may establish
performance criteria and the level of achievement versus such criteria that
shall determine the number of Shares to be granted, retained, vested, issued or
issuable under or in settlement of or the amount payable pursuant to an Award,
which criteria may be based on Qualifying Performance Criteria or other
standards of financial performance and/or personal performance evaluations. In
addition, the Administrator may specify that an Award or a portion of an Award
is intended to satisfy the requirements for “performance-based compensation”
under Section 162(m) of the Code, provided that the performance
criteria for such Award or portion of an Award that is intended by the
Administrator to satisfy the requirements for “performance-based compensation”
under Section 162(m) of the Code shall be a measure based on one or
more Qualifying Performance Criteria selected by the Administrator and
specified at the time the Award is granted, or within the time prescribed by
Section 162(m) and shall otherwise be in compliance with
Section 162(m). The Administrator shall certify the extent to which any
Qualifying Performance Criteria has been satisfied, and the amount payable as a
result thereof, prior to payment, settlement or vesting of any Award that is
intended to satisfy the requirements for “performance-based compensation” under
Section 162(m) of the Code. Notwithstanding satisfaction of any
performance goals, the number of Shares issued under or the amount paid under
an award may, to the extent specified in the Award Agreement, be reduced, but
not increased, by the Administrator on the basis of such further considerations
as the Administrator in its sole discretion shall determine.

(b)   Qualifying Performance Criteria.   For purposes of this Plan, the term “Qualifying
Performance Criteria” shall mean any one or more of the following performance
criteria, or derivations of such performance criteria, either individually,
alternatively or in any combination, applied to either the Company as a whole
or to a business unit or Subsidiary, either individually, alternatively or in
any combination, and measured either annually or cumulatively over a period of
years, on an absolute basis or relative to a pre-established target, to
previous years’ results or to a designated comparison group, in each case as
specified by the Administrator: (i) cash flow (before or after dividends),
(ii) earnings per share (including earnings before interest, taxes,
depreciation and amortization), (iii) stock price, (iv) return on
equity, (v) total stockholder return, (vi) return on capital
(including return on total capital or return on invested capital),
(vii) return on assets or net assets, (viii) market capitalization,
(ix) economic value added, (x) debt leverage (debt to capital), (xi)
revenue, (xii) income or net income, (xiii) operating income,
(xiv) operating profit or net operating profit, (xv) operating margin or
profit margin, (xvi) return on operating revenue, (xvii) cash from operations,
(xviii) operating ratio, (xix) operating revenue, (xx) market share, (xxi)
(xxii) product development or release schedules, (xxiii) new product innovation,
(xxiv) product cost reduction through advanced technology, (xxv) brand
recognition/acceptance, (xxvi) product ship targets, (xxvii) cost reductions,
customer service, (xxviii) customer satisfaction or (xxix) the sales of assets
or subsidiaries. To the extent consistent with Section 162(m) of the
Code, the Administrator (A) shall appropriately adjust any evaluation of
performance under a Qualifying Performance Criteria to eliminate the effects of
charges for restructurings, discontinued operations, extraordinary items and
all items of gain, loss or expense determined to be extraordinary or unusual in
nature or related to the disposal of a segment of a business or related to a
change in accounting principle all as determined in accordance with standards established
by opinion No. 30 of the Accounting Principles Board (APA Opinion
No. 30) or other applicable or successor accounting provisions, as well as
the cumulative effect of accounting changes, in each case as determined in
accordance with generally accepted accounting principles or identified in the
Company’s financial statements or notes to the financial statements, and
(B) may appropriately adjust any evaluation of performance under a
Qualifying Performance Criteria to exclude any of the following events that
occurs during a performance period: (i) asset write-downs,
(ii) litigation, claims, judgments or

 13
 

settlements,
(iii) the effect of changes in tax law or other such laws or provisions
affecting reported results, (iv) accruals for reorganization and
restructuring programs and (v) accruals of any amounts for payment under
this Plan or any other compensation arrangement maintained by the Company.

14.   Transferability

Each Award may not be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated by a Participant other than by
will or the laws of descent and distribution or pursuant to a qualified
domestic relations order, and each Option or Stock Appreciation Right shall be
exercisable only by the Participant during his or her lifetime. Notwithstanding
the foregoing, to the extent permitted by the Administrator, the person to whom
an Award is initially granted (the “Grantee”) may transfer an Award to any “family
member” of the Grantee (as such term is defined in Section 1(a)(5) of
the General Instructions to Form S-8 under the Securities Act of
1933, as amended (“Form S-8”)), to trusts solely for the benefit of
such family members and to partnerships in which such family members and/or
trusts are the only partners; provided that, (i) as a condition thereof,
the transferor and the transferee must execute a written agreement containing
such terms as specified by the Administrator, and (ii) the transfer is
pursuant to a gift or a domestic relations order to the extent permitted under
the General Instructions to Form S-8. Except to the extent specified
otherwise in the agreement the Administrator provides for the Grantee and
transferee to execute, all vesting, exercisability and forfeiture provisions
that are conditioned on the Grantee’s Continued Employment or service shall
continue to be determined with reference to the Grantee’s employment or service
(and not to the status of the transferee) after any transfer of an Award
pursuant to this Section 14, and the responsibility to pay any taxes in
connection with an Award shall remain with the Grantee notwithstanding any
transfer other than by will or intestate succession.

15.   Suspension or Termination of Awards

Except as otherwise provided by the Administrator, if
at any time (including after a notice of exercise has been delivered or an
award has vested) the Chief Executive Officer or any other person designated by
the Administrator (each such person, an “Authorized Officer”) reasonably
believes that a Participant may have committed an Act of Misconduct as
described in this Section 15, the Authorized Officer, Administrator or the
Board may suspend the Participant’s rights to exercise any Option, to vest in
an Award, and/or to receive payment for or receive Shares in settlement of an
Award pending a determination of whether an Act of Misconduct has been
committed.

If the Administrator or an Authorized Officer
determines a Participant has committed an act of embezzlement, fraud,
dishonesty, nonpayment of any obligation owed to the Company or any Subsidiary,
breach of fiduciary duty, violation of Company ethics policy or code of
conduct, or deliberate disregard of the Company or Subsidiary
rules resulting in loss, damage or injury to the Company or any
Subsidiary, or if a Participant makes an unauthorized disclosure of any Company
or Subsidiary trade secret or confidential information, solicits any employee
or service provider to leave the employ or cease providing services to the
Company or any Subsidiary, breaches any intellectual property or assignment of
inventions covenant, engages in any conduct constituting unfair competition,
breaches any non-competition agreement, induces any Company or Subsidiary
customer to breach a contract with the Company or any Subsidiary or to cease
doing business with the Company or any Subsidiary, or induces any principal for
whom the Company or any Subsidiary acts as agent to terminate such agency relationship
(any of the foregoing acts, an “Act of Misconduct”), then except as otherwise
provided by the Administrator, (i) neither the Participant nor his or her
estate nor transferee shall be entitled to exercise any Option or Stock
Appreciation Right whatsoever, vest in or have the restrictions on an Award
lapse, or otherwise receive payment of an Award, (ii) the Participant will
forfeit all outstanding Awards and (iii) the Participant may be required,
at the Administrator’s sole discretion, to return and/or repay to the Company
any then unvested Shares previously issued under the Plan. In making such
determination, the Administrator or an Authorized

 14
 

Officer shall give the
Participant an opportunity to appear and present evidence on his or her behalf
at a hearing before the Administrator or its designee or an opportunity to
submit written comments, documents, information and arguments to be considered
by the Administrator. Any dispute by a Participant or other person as to the
determination of the Administrator shall be resolved pursuant to
Section 23 of the Plan.

16.   Compliance with Laws and Regulations

This Plan, the grant, issuance, vesting, exercise and
settlement of Awards thereunder, and the obligation of the Company to sell,
issue or deliver Shares under such Awards, shall be subject to all applicable
foreign, federal, state and local laws, rules and regulations, stock
exchange rules and regulations, and to such approvals by any governmental
or regulatory agency as may be required. The Company shall not be required to
register in a Participant’s name or deliver any Shares prior to the completion
of any registration or qualification of such shares under any foreign, federal,
state or local law or any ruling or regulation of any government body which the
Administrator shall determine to be necessary or advisable. To the extent the
Company is unable to or the Administrator deems it infeasible to obtain
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company’s counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, the Company and its Subsidiaries shall be relieved of
any liability with respect to the failure to issue or sell such Shares as to
which such requisite authority shall not have been obtained. No Option shall be
exercisable and no Shares shall be issued and/or transferable under any other
Award unless a registration statement with respect to the Shares underlying
such Option is effective and current or the Company has determined that such
registration is unnecessary.

In the event an Award is granted to or held by a
Participant who is employed or providing services outside the United States,
the Administrator may, in its sole discretion, modify the provisions of the
Plan or of such Award as they pertain to such individual to comply with
applicable foreign law or to recognize differences in local law, currency or
tax policy. The Administrator may also impose conditions on the grant,
issuance, exercise, vesting, settlement or retention of Awards in order to
comply with such foreign law and/or to minimize the Company’s obligations with
respect to tax equalization for Participants employed outside their home
country.

17.   Withholding

To the extent required by
applicable federal, state, local or foreign law, a Participant shall be
required to satisfy, in a manner satisfactory to the Company, any withholding
tax obligations that arise by reason of an Option exercise, disposition of
Shares issued under an Incentive Stock Option, the vesting of or settlement of
an Award, an election pursuant to Section 83(b) of the Code or
otherwise with respect to an Award. To the extent a Participant makes an
election under section 83(b), within ten days of filing such election with the
Internal Revenue Service, the Participant  must notify the Company in
writing of such election. The Company and its Subsidiaries shall not be
required to issue Shares, make any payment or to recognize the transfer or
disposition of Shares until all such obligations are satisfied. The
Administrator may provide for or permit these obligations to be satisfied
through the mandatory or elective sale of Shares and/or by having the Company
withhold a portion of the Shares that otherwise would be issued to him or her
upon exercise of the Option or the vesting or settlement of an Award, or by
tendering Shares previously acquired. To the extent a Participant makes an
election under section 83(b), within ten days of filing such election with the
Internal Revenue Service, the Participant  must notify the Company in
writing of such election.

 15
 

18.   Administration of the Plan

(a)   Administrator of the Plan.   The Plan shall be administered by the
Administrator who shall be the Compensation Committee of the Board or, in the
absence of a Compensation Committee, the Board itself. The Committee shall
serve at the pleasure of the Board and shall consist of not less than three
(3) directors, each of whom is an “Independent Director” under NYSE
listing requirements and an “Outside Director” within the meaning of
Section 162(m) of the Code. Any power of the Administrator may also
be exercised by the Board, except to the extent that the grant or exercise of
such authority would cause any Award or transaction to become subject to (or
lose an exemption under) the short-swing profit recovery provisions of
Section 16 of the Securities Exchange Act of 1934 or cause an Award
designated as a Performance Award not to qualify for treatment as performance-based
compensation under Section 162(m) of the Code. To the extent that any
permitted action taken by the Board conflicts with action taken by the
Administrator, the Board action shall control.

(b)   Powers of Administrator.   Subject to the express provisions of
this Plan, the Administrator shall be authorized and empowered to do all things
that it determines to be necessary or appropriate in connection with the
administration of this Plan, including, without limitation: (i) to
prescribe, amend and rescind rules and regulations relating to this Plan
and to define terms not otherwise defined herein; (ii) to determine which
persons are Participants, to which of such Participants, if any, Awards shall
be granted hereunder and the timing of any such Awards; (iii) to grant
Awards to Participants and determine the terms and conditions thereof,
including the number of Shares subject to Awards and the exercise or purchase
price of such Shares and the circumstances under which Awards become
exercisable or vested or are forfeited or expire, which terms may but need not
be conditioned upon the passage of time, Continued Employment, the satisfaction
of performance criteria, the occurrence of certain events (including a Change
in Control), or other factors; (iv) to establish and verify the extent of
satisfaction of any performance goals or other conditions applicable to the
grant, issuance, exercisability, vesting and/or ability to retain any Award;
(v) to prescribe and amend the terms of the agreements or other documents
evidencing Awards made under this Plan (which need not be identical) and the
terms of or form of any document or notice required to be delivered to the
Company by Participants under this Plan; (vi) to determine whether, and
the extent to which, adjustments are required pursuant to Section 12;
(vii) to interpret and construe this Plan, any rules and regulations
under this Plan and the terms and conditions of any Award granted hereunder, and
to make exceptions to any such provisions in if the Committee, in good faith,
determines that it is necessary to do so in light of extraordinary
circumstances and for the benefit of the Company; and (viii) to make all
other determinations deemed necessary or advisable for the administration of
this Plan. The Committee may, in its sole and absolute discretion, without
amendment to the Plan, waive or amend the operation of Plan provisions
respecting exercise after termination of employment or service to the Company
or an Affiliate and, except as otherwise provided herein, adjust any of the
terms of any Award. The Committee may also (a) accelerate the date on
which any Award granted under the Plan becomes exercisable or
(b) accelerate the Vesting Date or waive or adjust any condition imposed
hereunder with respect to the vesting or exercisability of an Award, provided
that the Committee, in good faith, determines that such acceleration, waiver or
other adjustment is necessary or desirable in light of extraordinary circumstances.
Notwithstanding anything in the Plan to the contrary, no Award outstanding
under the Plan may be repriced, regranted through cancellation or otherwise
amended to reduce the exercise price applicable thereto (other than with
respect to adjustments made in connection with a Transaction or other change in
the Company’s capitalization) without the approval of the Company’s
stockholders.

(c)   Determinations by the Administrator.   All decisions, determinations and
interpretations by the Administrator regarding the Plan, any rules and
regulations under the Plan and the terms and conditions of or operation of any
Award granted hereunder, shall be final and binding on all Participants,
beneficiaries, heirs, assigns or other persons holding or claiming rights under
the Plan or any Award. The Administrator shall consider such factors as it
deems relevant, in its sole and absolute discretion, to making

 16
 

such decisions,
determinations and interpretations including, without limitation, the
recommendations or advice of any officer or other employee of the Company and
such attorneys, consultants and accountants as it may select.

(d)   Subsidiary Awards.   In the case of a grant of an Award to
any Participant employed by a Subsidiary, such grant may, if the Administrator
so directs, be implemented by the Company issuing any subject Shares to the
Subsidiary, for such lawful consideration as the Administrator may determine,
upon the condition or understanding that the Subsidiary will transfer the
Shares to the Participant in accordance with the terms of the Award specified
by the Administrator pursuant to the provisions of the Plan. Notwithstanding
any other provision hereof, such Award may be issued by and in the name of the
Subsidiary and shall be deemed granted on such date as the Administrator shall
determine.

19.   Amendment of the Plan or Awards

The Board may amend, alter or discontinue this Plan
and the Administrator may amend, or alter any agreement or other document
evidencing an Award made under this Plan but, except as provided pursuant to
the provisions of Section 12, no such amendment shall, without the
approval of the stockholders of the Company:

(a)   increase
the maximum number of Shares for which Awards may be granted under this Plan;

(b)   reduce
the price at which Options may be granted below the price provided for in
Section 6(a);

(c)   reduce
the exercise price of outstanding Options;

(d)   extend
the term of this Plan;

(e)   change
the class of persons eligible to be Participants;

(f)   otherwise
amend the Plan in any manner requiring stockholder approval by law or under the
New York Stock Exchange listing requirements; or

(g)   increase
the individual maximum limits in Sections 5(c) and (d).

No amendment or alteration to the Plan or an Award or
Award Agreement shall be made which would impair the rights of the holder of an
Award, without such holder’s consent, provided that no such consent shall be
required if the Administrator determines in its sole discretion and prior to
the date of any Change in Control that such amendment or alteration either is
required or advisable in order for the Company, the Plan or the Award to
satisfy any law or regulation or to meet the requirements of or avoid adverse
financial accounting consequences under any accounting standard.

20.   Change in Control.

Unless otherwise specified in an
individual Award Agreement or otherwise, in the event of a Change in Control,
the restrictions covering each outstanding Award, whether the restrictions are
based on Continuous Service or the attainment of Performance Goals, at the time
of the Change in Control, shall lapse immediately prior to such Change in
Control and such Award shall no longer be subject to risk of forfeiture. In the
case of an “Incentive Bonus” Awards that are outstanding at the time of a
Change in Control, Participants will receive the target Award amount for all
performance cycles in place as soon as practical after the closing of the
Change in Control transaction.

21.   No Liability of Company

The Company and any Subsidiary or affiliate which is
in existence or hereafter comes into existence shall not be liable to a
Participant or any other person as to: (i) the non-issuance or sale of
Shares as to which the Company has been unable to obtain from any regulatory
body having jurisdiction the authority

 17
 

deemed by the Company’s
counsel to be necessary to the lawful issuance and sale of any Shares
hereunder; and (ii) any tax consequence expected, but not realized, by any
Participant or other person due to the receipt, exercise or settlement of any
Award granted hereunder.

22.   Non-Exclusivity of Plan

Neither the adoption of this Plan by the Board nor the
submission of this Plan to the stockholders of the Company for approval shall
be construed as creating any limitations on the power of the Board or the
Administrator to adopt such other incentive arrangements as either may deem
desirable, including without limitation, the granting of restricted stock or
stock options otherwise than under this Plan or an arrangement not intended to
qualify under Code Section 162(m), and such arrangements may be either
generally applicable or applicable only in specific cases.

23.   Governing Law

This Plan and any agreements or other documents
hereunder shall be interpreted and construed in accordance with the laws of the
Delaware and applicable federal law. Any reference in this Plan or in the
agreement or other document evidencing any Awards to a provision of law or to a
rule or regulation shall be deemed to include any successor law,
rule or regulation of similar effect or applicability.

24.   Arbitration of Disputes

In the event a Participant or other holder of an Award
or person claiming a right under an Award or the Plan believes that a decision
by the Administrator with respect to such person or Award was arbitrary or
capricious, the person may request arbitration with respect to such decision.
The review by the arbitrator shall be limited to determining whether the
Participant or other Award holder has proven that the Administrator’s decision
was arbitrary or capricious. This arbitration shall be the sole and exclusive
review permitted of the Administrator’s decision. Participants, Award holders
and persons claiming rights under an Award or the Plan explicitly waive any
right to judicial review.

Notice of demand for arbitration shall be made in
writing to the Administrator within thirty (30) days after the applicable
decision by the Administrator. The arbitrator shall be selected by those
members of the Board who are neither members of the Compensation Committee of
the Board nor employees of the Company or any Subsidiary. If there are no such
members of the Board, the arbitrator shall be selected by the Board. The
arbitrator shall be an individual who is an attorney licensed to practice law
in the jurisdiction in which the Company’s headquarters are then located. Such
arbitrator shall be neutral within the meaning of the Commercial Rules of
Dispute Resolution of the American Arbitration Association; provided, however,
that the arbitration shall not be administered by the American Arbitration
Association. Any challenge to the neutrality of the arbitrator shall be
resolved by the arbitrator whose decision shall be final and conclusive. The
arbitration shall be administered and conducted by the arbitrator pursuant to
the Commercial Rules of Dispute Resolution of the American Arbitration
Association. Each side shall bear its own fees and expenses, including its own
attorney’s fees, and each side shall bear one half of the arbitrator’s fees and
expenses. The decision of the arbitrator on the issue(s) presented for
arbitration shall be final and conclusive and may be enforced in any court of competent
jurisdiction.

25.   No Right to Employment, Reelection or
Continued Service

Nothing in this Plan or an Award Agreement shall
interfere with or limit in any way the right of the Company, its Subsidiaries
and/or its affiliates to terminate any Participant’s employment, service on the
Board or service for the Company at any time or for any reason not prohibited
by law, nor shall this Plan or an Award itself confer upon any Participant any
right to continue his or her employment or service for any specified period of
time. Neither an Award nor any benefits arising under this Plan shall
constitute an

 18
 

employment contract with
the Company, any Subsidiary and/or its affiliates. Subject to Sections 4 and
19, this Plan and the benefits hereunder may be terminated at any time in the
sole and exclusive discretion of the Board without giving rise to any liability
on the part of the Company, its Subsidiaries and/or its affiliates.

26.   Unfunded Plan

The Plan is intended to be an unfunded plan.
Participants are and shall at all times be general creditors of the Company
with respect to their Awards. If the Administrator or the Company chooses to
set aside funds in a trust or otherwise for the payment of Awards under the
Plan, such funds shall at all times be subject to the claims of the creditors
of the Company in the event of its bankruptcy or insolvency.

 19

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