Document:

exhibit108080407.htm

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      10.8

    

    
      
        

      

    CHARMING
      SHOPPES, INC.

    2003
      Non-Employee Directors Compensation Plan

    Amended
      and Restated Effective June 21, 2007

     

    
      
        

      

    

    

    1.           Purpose
      and Scope of the Plan.

    

    (a)           Purpose.  The
      purpose of this 2003 Non-Employee Directors Compensation Plan (the "Plan")
      of
      Charming Shoppes, Inc. (the "Company") is to advance the interests of the
      Company and its shareholders by providing for fair and adequate equity
      compensation of non-employee directors and an opportunity for deferral of
      compensation in order to attract and retain high quality persons to serve as
      directors and to enable such persons to increase their proprietary interest
      in
      the Company.  In furtherance of this purpose, the Plan provides for
      grants of Options, Stock Appreciation Rights, Restricted Stock Units, and/or
      Restricted Stock, and the opportunity for a director to elect deferred and
      alter­na­tive forms of compen­sation in lieu of cash fees for
      service as a director, including Deferred Shares and deferred cash.

    

    (b)           Effect
      of Amendment and Restatement of the Plan.  The Company hereby
      amends and restates the Plan, effective June 21, 2007 (the "Effective Date").
      The Plan was initially adopted on August 21, 1996 and was subsequently amended
      and restated on several occasions.  Non-employee director compensation
      before the Effective Date was governed by the Plan and other policies of the
      Company then in effect.

    

    (c)           Grandfathered
      Accounts.  The amendment and restatement of January 1, 2005 and
      subsequent amendments to the Plan shall not affect Grandfathered Accounts (as
      defined below), which shall continue to be subject to, and governed by, the
      terms and conditions of the Plan as in effect on December 31, 2004, as set
      forth
      on the attached Exhibit A (Charming Shoppes, Inc. 2003 Non-Employee Directors
      Compensation Plan).

    

    (d)           Relation
      of Plan to Other Director Compensation. The amount, timing, and other terms
      of cash compensation that may be paid by the Company to non-employee directors
      are not governed by this Plan, except to the extent that opportunities for
      deferral of cash compensation otherwise payable to a director, or receipt of
      such cash compensation in alternative forms, may be made available to a director
      under this Plan.  In addition, adoption of the Plan does not limit the
      authority of the Board of Directors in adopting other compensation programs
      in
      which directors may participate.

    

    2.           Definitions.  In
      addition to the terms defined in Section 1, the following terms shall be defined
      as set forth below:

    
      
        
        

      

      
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    (a)           "Account"
      means the account established and maintained by the Company for RSUs granted
      under Section 6 and Deferred Shares and deferred cash credited under Section
      8.  A subaccount for RSUs and a subaccount for such Deferred Shares
      and deferred cash may be designated within the Account.  The Account
      and RSUs, Deferred Shares and deferred cash credited to the Account will be
      maintained solely as bookkeeping entries by the Company to evidence unfunded
      obligations of the Company.

    

    (b)           "Administrator"
      means the individual or committee specified in Section 3(b) to whom the Board
      has delegated authority to administer the Plan.

    

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

    

    (d)           "Board"
      means the Board of Directors of the Company.  The Board may delegate
      its functions to a committee of the Board as specified under Section 3(a),
      in
      which case references to the Board shall be deemed to include such
      committee.

    

    (e)           "Change
      in Control" and related terms are defined in Section 12.

    

    (f)           "Code"
      means the Internal Revenue Code of 1986, as amended, including regulations
      thereunder and successor provisions and regulations thereto.

    

    (g)           "Deferred
      Shares" means a Share Unit credited to a Participant's Account under Section
      8
      as a result of deferral of cash fees.

    

    (h)           "Director
      Compensation" means annual retainer fees payable to a director in his or her
      capacity as such for service on the Board and service as chairman of any Board
      committee, and any other fees payable to a director in his or her capacity
      as
      such for attending meetings and other service on the Board and Board committees;
      provided, however, that the Administrator may determine that specific fees
      will
      not be deemed Director Compensation.  Reimbursement of expenses does
      not constitute Director Compensation.

    

    (i)           "Disability"
      means a Participant's termination of service as a director of the Company due
      to
      a physical or mental incapacity of long duration which renders the Participant
      unable to perform the duties of a director of the Company.

    

    (j)           "Exchange
      Act" means the Securities Exchange Act of 1934, as amended, including rules
      thereunder and successor provisions and rules thereto.

    

    
      
        
        

      

      
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    (k)           "Grandfathered
      Account" means that portion of a Participant's Account that was earned and
      vested as of December 31, 2004, and shall include earnings (including dividends
      paid in accordance with Section 13(b) and dividends and dividend equivalents
      paid in accordance with Section 9(a)) credited to such amount under the terms
      of
      the Plan.  All Grandfathered Accounts shall be calculated in
      accordance with Section 409A of the Code.  The Company shall maintain
      a separate record of Grandfathered Accounts.

    

    (l)           "Fair
      Market Value" means, with respect to Shares, the fair market value of such
      Shares determined by such methods or procedures as shall be established from
      time to time by the Board.  Unless otherwise determined by the Board,
      the Fair Market Value of a Share as of any given date means the closing sale
      price of a Share reported on the Nasdaq Global Select Market (or, if Shares
      are
      then principally traded on a national securities exchange, in the reported
      "composite transactions" for such exchange) for such date, or, if no Shares
      were
      traded on that date, on the next preceding day on which there was such a
      trade.

    

    (m)           “Mandatory
      Retirement” means the termination of a director's service in accordance with any
      mandatory retirement policy adopted by the Board of Directors and then in
      effect.

    

    (n)           "Option"
      means the right, granted to a Participant under Section 7, to purchase a
      specified number of Shares at the specified exercise price for a specified
      period of time under the Plan.  All Options will be non-qualified
      stock options.

    

    (o)           "Participant"
      means any person who has been granted an Option which remains outstanding,
      has
      RSUs, Deferred Shares or deferred cash credited to his or her Account, or has
      elected to defer receipt of Director Compensation in the form of Deferred Shares
      or deferred cash under the Plan.

    

    (p)           "Plan
      Year" means, with respect to a Participant, the period commencing at the time
      of
      election of the director at an annual meeting of shareholders (or the election
      of a class of directors if the Company then has a classified Board of
      Directors), or the director's initial appointment to the Board if not at an
      annual meeting of shareholders, and continuing until the close of business
      of
      the day preceding the next annual meeting of shareholders.

    

    (q)           "Restricted
      Stock" means Shares granted under Section 6, subject to a risk of forfeiture
      and
      restrictions on transfer for a specified period.

    

    (r)           "RSU"
      or "Restricted Share Unit" means a Share Unit credited to a Participant's
      Account as a grant under Section 6, which is subject to a risk of forfeiture
      for
      a specified period.

    

    (s)           "Shares"
      means shares of common stock of the Company and such other securities as may
      be
      substituted or resubstituted for Shares pursuant to Section 13(b).

    

    

    

    
      
        
        

      

      
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    (t)           "Share
      Unit" means a right to receive, at a specified settlement date, delivery of
      one
      Share, subject to the terms and conditions of the Plan.  Share Units
      in the form of RSUs shall be subject to a risk of forfeiture, but Share Units
      in
      the form of Deferred Shares will be at all times non-forfeitable.

    

    (u)           "Stock
      Appreciation Right" or "SAR" means the right, granted to the Participant under
      Section 7, to receive, upon exercise thereof, the excess of (i) the Fair Market
      Value of one Share on the date of exercise over (ii) the grant price of the
      SAR
      as determined by the Board at the time of grant.

    

    (v)           "Valuation
      Date" shall mean the close of business on the last business day of each calendar
      quarter and, in the case of any final distribution of deferred cash from a
      Participant's Account, the day as of which such distribution is made; provided,
      however, that the Administrator may specify a different Valuation Date in order
      to coordinate the Participant's deferred cash balance with any actual investment
      by which the deferred cash balance is to be measured.

    

    3.           Administration.

    

    (a)           Authority.  Both
      the Board and the Administrator (subject to the ability of the Board to restrict
      the Administrator) shall administer the Plan in accordance with its terms,
      and
      shall have all powers necessary to accomplish such purpose, including the power
      and authority to construe and interpret the Plan, to define the terms used
      herein, to prescribe, amend and rescind rules and regulations, agreements,
      forms, and notices relating to the administration of the Plan, and to make
      all
      other determinations necessary or advisable for the administration of the
      Plan.  The Board may delegate any or all of its functions to a
      committee of the Board, provided that the Board shall approve the form and
      amount of compensation to directors under any provision of the
      Plan.  The Administrator may perform any function of the Board under
      the Plan, except for establishing the form and amount of compensation under
      any
      provision, adopting material amendments to the Plan under Section 13(e), and
      any
      other function from time to time specifically reserved by the Board to
      itself.  Any actions of the Board or the Administrator with respect to
      the Plan shall be final, conclusive, and binding upon all persons interested
      in
      the Plan, except that any action of the Administrator will not be binding on
      the
      Board.  The Board and Administrator may each appoint agents and
      delegate thereto powers and duties under the Plan, except as otherwise limited
      by the Plan.

    

    (b)           Administrator.  The
      Administrator shall be the Executive Vice President, General Counsel and
      Secretary of the Company, or, if that officer is unavailable, the Executive
      Vice
      President, Chief Financial Officer, or, if that officer is unavailable, the
      Executive Vice President and Director of Human Resources; provided, however,
      that the Board may designate a different individual or committee to serve as
      Administrator.  In any case in which a director is a member of the
      Administrator, such director shall not act on or decide any matter relating
      solely to himself or herself or any of his or her rights or benefits under
      the
      Plan.  No bond or other security need be required of the Administrator
      or any member thereof in any jurisdiction.

    

    
      
        
        

      

      
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    (c)           Limitation
      of Liability.  Each member of the Board and the Administrator
      shall be entitled to, in good faith, rely or act upon any report or other
      information furnished to him or her by any officer or other employee of the
      Company or any subsidiary, the Company's independent certified public
      accountants, or any executive compensation consultant, legal counsel, or other
      professional retained by the Company to assist in the administration of the
      Plan.  No member of the Board or the Administrator, nor any person to
      whom ministerial duties under the Plan have been delegated, shall be personally
      liable for any action, determination, or interpretation taken or made in good
      faith with respect to the Plan, and any such person shall, to the extent
      permitted by law, be fully indemnified and protected by the Company with respect
      to any such action, determination, or interpretation.

    

    4.           Shares
      Available Under the Plan.  Subject to adjustment as provided
      in Section 13(b), the total number of Shares reserved and available for delivery
      under the Plan for awards granted on or after June 26, 2003 shall be 600,000;
      provided however, that, in no event may more than 50% of such Shares be
      delivered in connection with "full-value Awards."   For this
      purpose, "full-value Awards" means awards other than Options or SARs for which
      a
      Participant does not pay or surrender rights to payment equal to at least the
      Fair Market Value of the award determined at the date of
      grant.  Shares subject to and to be delivered in connection with
      awards granted before June 26, 2003 which remain outstanding at that date shall
      be drawn from the shares reserved and available under the Plan at the time
      of
      grant.   The Shares delivered under the Plan may consist, in
      whole or in part, of authorized and unissued Shares or treasury
      Shares.  For purposes of this Section 4, Shares subject to an award
      under the Plan (including an award granted before June 26, 2003) that is
      canceled, expired, forfeited, settled in cash, or otherwise terminated without
      a
      delivery of Shares to the Participant, including the number of Shares withheld
      or surrendered in payment of any exercise or purchase price of an award and
      including the number of Shares subject to an award but not delivered upon
      exercise or settlement of the award, will become available for awards under
      the
      Plan.

    

    5.           Eligibility.  Each
      non-employee director of the Company may participate in the Plan, subject to
      the
      terms hereof.  No person other than those specified in this Section 5
      will be eligible to participate in the Plan.  The Administrator will
      notify each person of his or her eligibility to participate in an elective
      feature of the Plan not later than 15 days prior to any deadline for filing
      an
      election form.

    

    6.           Grants
      of Restricted Stock or RSUs.  Restricted Stock and/or RSUs
      shall be granted to non-employee directors in accordance with policies
      established from time to time by the Board specifying the directors or classes
      of directors to be granted such awards, the number of shares of Restricted
      Stock
      or RSUs to be granted, and the time or times at which such awards shall be
      granted.  An award granted under this Section 6 shall become vested
      and non-forfeitable at such dates as may be specified by the Board, and shall
      have such other terms as may be established by the Board.

    

    (a)           One-Time
      Grant Upon First Election as a Non-Employee Director. The policy with
      respect to newly appointed or elected non-employee directors under this Section
      6, effective as of June 21, 2007 and continuing until modified or revoked by
      the
      Board, shall be as follows:

    

    
      
        
        

      

      
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              (i)

            	
              Award
                Type and Amount.  Effective June 21, 2007, one-time grants
                of Restricted Stock to each newly appointed or elected non-employee
                director were discontinued.

            

    

    

    
      	
               

            	
              (ii)

            	
              Vesting
                and Forfeiture Terms.   With respect to Restricted
                Stock granted before June 21, 2007 under this Section 6(a), one-third
                of
                the number of Shares of Restricted Stock shall vest and become
                non-forfeitable at the close of business on June 1 of each of the
                three
                calendar years following the date of grant of such award, rounded
                to the
                nearest number of whole Shares, subject to the
                following:

            

    

    

    
      	
               

            	
              (A)

            	
              In
                the event of a Change in Control or termination of the Participant's
                service as a director due to death or Disability, the award, if not
                previously vested or forfeited, shall immediately vest and become
                non-forfeitable in full.

            

    

    

    
      	
               

            	
              (B)

            	
              In
                the event of termination of the Participant's service as a director
                due to
                Mandatory Retirement by the Participant, the award, if not previously
                vested or forfeited, shall immediately vest and become non-forfeitable
                as
                to that number of Shares of Restricted Stock as would have vested
                and
                become non-forfeitable if the Participant had continued to serve
                as a
                director through the anticipated date of the next annual meeting
                of
                shareholders.

            

    

    

    
      	
               

            	
              Unless
                otherwise determined by the Board, an award of Restricted Stock that
                has
                not vested at or before the time of termination of the Participant's
                service as a director  (this would include all unvested
                Restricted Stock in the event of a director's removal from service)
                will
                cease to vest and will be forfeited upon such
                termination.

            

    

    

    (b)           
      Annual Grant to a Non-Employee Director.  The policy with respect
      to annual grants of RSUs under this Section 6, effective as of June 21, 2007
      and
      continuing until modified or revoked by the Board, shall be as
      follows:

    

    
      	
               

            	
              (i)

            	
              Award
                Type and Amount.  At the date of the 2007 Annual Meeting of
                Shareholders and each subsequent annual meeting of shareholders at
                which a
                director is elected or reelected as a member of the Board (or at
                which
                members of another class of directors are elected or reelected, if
                the
                Company then has a classified Board), RSUs shall be automatically
                granted
                to each non-employee director eligible to participate in the Plan
                at the
                close of business on that date.  The number of such RSUs to be
                granted shall equal $135,000 divided by the Fair Market Value of
                a Share
                on the date of grant.  If a non-employee director is initially
                elected or appointed at a date that does not coincide with the date
                of an
                annual meeting and does not fall on or between June 1 and the date
                of that
                year's annual meeting, if he or she is eligible to participate in
                the Plan
                at that date, he or she will be automatically granted the number
                of RSUs
                equal to (A) $135,000 multiplied by a fraction the numerator of which
                is
                the number of days from the date of grant to the anniversary of the
                most
                recent annual meeting and the denominator of which is 365, divided
                by (B)
                the Fair Market Value of a Share on the date of grant, with the resulting
                number of RSUs rounded to the nearest whole
                RSU.

            

    

    
      
        
        

      

      
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              (ii)

            	
              Vesting
                and Forfeiture Terms.   Such award shall become vested
                and non-forfeitable as to all RSUs at the close of business on the
                June 1
                following the date of grant, subject to the
                following:

            

    

    

    
      	
               

            	
              (A)

            	
              In
                the event of a Change in Control or termination of the Participant's
                service as a director due to death or Disability, the award, if not
                previously vested or forfeited, shall immediately vest and become
                non-forfeitable in full.

            

    

    

    
      	
               

            	
              (B)

            	
              In
                the event of termination of the Participant's service as a director
                due to
                a voluntary termination of service or  Mandatory Retirement by
                the Participant, the award, if ­­not previously vested or
                forfeited, shall immediately vest and become non-forfeitable as to
                that
                number of RSUs equal to the total number of RSUs multiplied by a
                fraction
                the numerator of which is the number of days from the date of grant
                to the
                date of termination of service and the denominator of which is the
                number
                of days from the date of grant until the June 1 following the date
                of
                grant of such award (such fraction in no event will exceed
                one).

            

    

    

    Unless
      otherwise determined by the Board, an award of RSUs that has not vested at
      or
      before the time of termination of the Participant's service as a director (this
      would include all unvested RSUs in the event of a director's removal from
      service) as provided herein will cease to vest and will be forfeited upon such
      termination.

    

    (c)           Dividends
      and Dividend Equivalents.  Unless otherwise determined by the
      Board, cash dividends on Restricted Stock which are not large, special and
      non-recurring and which are paid prior to the lapse of the risk of forfeiture
      on
      such Restricted Stock shall be paid to the Participant when paid to the
      Company's shareholders.  Other dividends will be payable or not
      payable and subject to adjustment to the Restricted Stock in accordance with
      Section 13(b).  Dividend Equivalents will be credited on RSUs in
      accordance with Section 9(a), with the resulting additional RSUs subject to
      the
      same terms, including risk of forfeiture, as the RSUs on which the dividend
      equivalent was paid; provided, however, that such dividend equivalents may
      instead be paid in cash, subject to such terms as the Administrator may
      determine, if reinvestment of dividends is determined by the Administrator
      to be
      administratively burdensome.

    

    (d)           Other
      Restricted Stock Terms.  Restricted Stock shall be
      nontransferable by the Participant at any time that the award remains subject
      to
      a risk of forfeiture.  Restricted Stock granted under the Plan may be
      evidenced in such manner as the Administrator shall determine.  Unless
      otherwise determined by the Administrator, if certificates representing
      Restricted Stock are registered in the name of the Participant, such
      certificates shall bear an appropriate legend referring to the terms,
      conditions, and restrictions applicable to such Restricted Stock, the Company
      shall retain physical possession of the certificate, and the Participant shall
      have delivered a stock power to the Company, endorsed in blank, relating to
      the
      Restricted Stock.  Upon the lapse of restrictions on Restricted Stock,
      the Share certificate shall be released by the Company to the Participant with
      any legend relating to such restrictions removed.

    
      
        
        

      

      
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    (e)           Settlement
      of RSUs.

    

    
      	
               

            	
              (i)

            	
              General
                Rule. Except as provided in (ii) – (v) below, RSUs shall be settled
                promptly at the time the RSUs become vested (and in any case within
                90
                days thereafter); provided, however, that settlement of RSUs shall
                be
                subject to delayed settlement if and to the extent specified in Section
                10(d), (e) or (f) below.

            

    

    

    
      	
               

            	
              (ii)

            	
              Deferral
                Election.  A director may elect to defer settlement of RSUs
                by timely filing an election with the Company as provided
                below:

            

    

    

    
      	
              A.  

            	
              Timing
                of Elections. A deferral election must generally be made by the end of
                the calendar year prior to the Plan Year in which the RSU is
                granted.  However, a newly eligible Participant (within the
                meaning of Treas. Reg. § 1.409A-2(a)(7)) may make a deferral election with
                respect to an initial grant of RSUs under Section 6(b) within 30
                days of
                election or appointment to the Board (which will apply only to the
                portion
                of the RSUs attributable to service by the director after the election
                has
                been filed), or at such other time as is permitted under Section
                409A of
                the Code.

            

    

    

    
      	
              B.  

            	
              Effect
                and Irrevocability of Elections.  Elections relating to RSUs
                filed before the calendar year in which the Plan Year to which they
                relate
                begins, other than those subject to Section 9(c), shall become irrevocable
                immediately before the beginning of such calendar year unless the
                Administrator specifies an earlier time.  Elections subject to
                Section 9(c) shall become irrevocable in accordance with Section
                9(c).  Other elections shall become irrevocable upon filing or
                at such other time as may be specified by the
                Administrator.  The latest election filed with the Administrator
                shall be deemed to supersede all prior inconsistent elections that
                remain
                revocable at the time of filing of the latest
                election.

            

    

    

    
      	
               

            	
              (iii)

            	
              Matters
                To Be Elected.  The Administrator will provide a form or
                forms of election which will permit a director to make appropriate
                elections with respect to all relevant matters under this Section
                6.  This election form may be included in the document
                evidencing the grant of RSUs.

            

    

    

    
      	
               

            	
              (iv)

            	
              Permitted
                Elections as to Settlement.  Elections as to the time of
                settlement of deferred RSUs shall conform to the terms of Section
                9(c).

            

    

    

    
      	
               

            	
              (v)

            	
              Forfeiture
                Risk.  A validly deferred RSU will remain forfeitable as
                provided herein until the RSU has become vested.  Thereafter,
                although it will still be referred to as an RSU for purposes of the
                Plan,
                it will be non-forfeitable.

            

    

    

    

    

    

    
      
        
        

      

      
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    7.           Grants
      of Options and SARs.   Options and/or SARs shall be granted
      to non-employee directors in accordance with policies established from time
      to
      time by the Board specifying the directors or classes of directors to be granted
      such awards, the number of shares to be subject to Options or SARs, and the
      time
      or times at which such awards shall be granted, vested, exercisable, and expire,
      and such other terms as may be established by the Board.

    

    (a)           Annual
      Grant of Option to a Non-Employee Director. The policy with respect to
      annual grants of Options under this Section 7, effective as of June 21, 2007
      and
      continuing until modified or revoked by the Board, shall be as
      follows:

    

    
      	
               

            	
              (i)

            	
              Award
                Type and Amount.  Effective June 21, 2007, annual grants of
                Options to non-employee directors were
                discontinued.

            

    

    

    
      	
               

            	
              (ii)

            	
              Vesting
                and Forfeiture Terms.  With respect to each Option granted
                before June 21, 2007 under this Section 7(a), the Option shall vest
                and
                become exercisable in full at the close of business on the June 1
                following the date of grant of such award, subject to the
                following:

            

    

    

    
      	
               

            	
              (A)

            	
              If
                such Option has not previously vested or been forfeited, it shall
                vest and
                become exercisable in full upon a Change in Control, upon the
                Participant's death, or upon the termination of the Participant's
                service
                as a director due to Disability.

            

    

    

    
      	
               

            	
              (B)

            	
              If
                such Option has not previously vested or been forfeited, it shall
                vest and
                become exercisable as to the "Pro Rata Shares" upon a termination
                of the
                Participant's service as a director due to a voluntary termination
                of
                service (i.e., excluding termination due to Disability or Mandatory
                Retirement).  For purposes of this Section 7(a)(ii), the "Pro
                Rata Shares" shall be the number of Shares determined by multiplying
                (1)
                the number of Shares as to which the Option would have vested and
                become
                exercisable if the Participant had continued to serve as a director
                through the anticipated date of the next annual meeting of shareholders
                by
                (2) a fraction the numerator of which is the number of days from
                the date
                of the latest annual meeting of shareholders through the date of
                the
                Participant's termination and the denominator of which is 365 (rounded
                up
                to the next whole share).

            

    

    

    
      	
               

            	
              (C)

            	
              Any
                portion of an Option that has not vested and become exercisable at
                the
                date of a director's Mandatory Retirement shall remain outstanding
                and
                become exercisable in accordance with the first sentence of this
                Section
                7(a)(ii), provided that such Option shall become exercisable in full
                upon
                a Change in Control or the death of the director, and each such portion
                of
                the Option that becomes exercisable after such Mandatory Retirement
                shall
                expire at the end of the one-year period following the date it becomes
                exercisable as provided in Section
                7(a)(iii).

            

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    Except
      in
      the case of a Mandatory Retirement or as otherwise determined by the Board,
      any
      portion of a Participant's Option that has not vested and become exercisable
      at
      or before the time of termination of the Participant's service as a
      director  (this would include the entire unvested Option in the event
      of a director's removal from service) as provided herein will cease to vest
      and
      will be forfeited upon such termination.

    

    
      	
               

            	
              (iii)

            	
              Option
                Term.  With respect to each Option granted before June 21,
                2007 under this Section 7(a), the Option, to the extent not previously
                forfeited, shall expire at the earlier of (i) ten years after the
                date of
                grant (or such earlier date as may be specified by the Board prior
                to
                grant), or (ii) one year after the Participant ceases to serve as
                a
                director of the Company for any reason except that, in the case of
                a
                termination due to Mandatory Retirement, any portion of the Option
                that
                becomes exercisable at a date following the Mandatory Retirement,
                as
                provided in Section 7(a)(ii)(C), shall expire one year after the
                date such
                portion vests and becomes exercisable.  (Note: Portions of any
                Option that were vested and exercisable at the date of Mandatory
                Retirement will expire one year after such Mandatory Retirement,
                but in no
                event later than ten years after the date of
                grant).

            

    

    

    (b)           Exercise
      Price and Grant Price.  The exercise price per Share purchasable
      under an Option will be equal to 100% of the Fair Market Value of a Share on
      the
      date of grant of the Option.  The grant price per Share subject to an
      SAR will be equal to 100% of the Fair Market Value of a Share on the date of
      grant of the SAR.

    

    (c)           Option
      and SAR Maximum Term. The maximum term of an Option or SAR
      granted hereunder shall be ten years from the date of grant.

    

    (d)           Payment
      of Exercise Price.  The exercise price of an Option shall be paid
      to the Company either in cash or by the surrender of Shares or the withholding
      of Shares from those deliverable upon exercise of the Option, or any combination
      thereof, or in such other lawful form or manner as may be established by the
      Administrator; provided, however, that, unless otherwise determined by the
      Administrator, Shares shall not be surrendered or withheld in payment of the
      exercise price if such surrender or withholding would result in additional
      accounting expense to the Company.

    

    8.           Deferral
      of Fees In Deferred Shares and Deferred Cash.  Each director
      of the Company who is eligible under Section 5 may elect, in accor­dance
      with Section 8(a), to defer receipt of Director Compensation in the form of
      Deferred Shares under Section 8(b) or deferred cash un­der Section
      8(c).

    

    (a)           Elections.  A
      director shall elect to participate in the deferral feature under this Section
      8
      and the terms of such participation by timely filing an election with the
      Company as provided below:

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (i)

            	
              Timing
                of Elections. A deferral election must generally be made by the end of
                the calendar year prior to the Plan Year in which the Director
                Compensation will be earned.  However, a newly eligible
                Participant (within the meaning of Treas. Reg. § 1.409A-2(a)(7)) may make
                a deferral election with respect to Director's initial Director
                Compensation (earned after the date of such election) within 30 days
                of
                election or appointment to the Board, or at such other time as is
                permitted under Section 409A of the
                Code.

            

    

    

    
      	
               

            	
              (ii)

            	
              Effect
                and Irrevocability of Elections.  Elections shall be deemed
                continuing and therefore applicable to Plan Years after the initial
                Plan
                Year covered by the election, until the election is modified or superseded
                by the Participant.  Elections other than those subject to
                Section 9(c) shall become irrevocable at the commencement of the
                calendar
                year which includes the first day of the Plan Year to which an election
                relates.  Elections relating to the time and manner of
                settlement of an Account shall become irrevocable at the specified
                deadline for the filing of such elections under Section 9(c) unless
                the
                Administrator specifies a different time.  The latest election
                filed with the Administrator shall be deemed to supersede all prior
                inconsistent elections that remain revocable at the time of filing
                of the
                latest election prior to the beginning of a Plan Year or at such
                other
                date as may be specified by the Administrator, provided that any
                date so
                specified shall ensure effective deferral of taxation and otherwise
                comply
                with applicable laws.

            

    

    

    
      	
               

            	
              (iii)

            	
              Matters
                To Be Elected.  The Administrator will provide a form or
                forms of election which will permit a director to make appropriate
                elections with respect to all relevant matters under this Section
                8 and
                Section 9.

            

    

    

    
      	
               

            	
              (iv)

            	
              Time
                of Filing Elections.  An election must be received by the
                Administrator prior to the deadline specified by the
                Administrator.  Under no circumstances may a Participant defer
                compensation to which the Participant has attained, at the time of
                deferral, a legally enforceable right to current receipt of such
                compensation.

            

    

    

    (b)           Deferral
      of Director Compensation in the Form of Deferred Shares.  If a
      Participant has elected to defer receipt of a specified amount of Director
      Compensation in the form of Deferred Shares, a number of Deferred Shares shall
      be credited to the Participant's Account, as of the date such Director
      Compensation otherwise would have been payable to the Participant but for such
      election to defer, equal to (i) such amount otherwise payable divided by (ii)
      the Fair Market Value of a Share at that date.  Deferred Shares
      credited under this Section 8(b) shall be subject to the terms and conditions
      of
      Deferred Shares specified in Sections 9(a), 9(b), and 9(c).  The right
      and interest of each Participant in Deferred Shares credited to the
      Participant's Account under this Section 8(b) at all times will be
      nonforfeitable.

    

    

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    (c)           Deferral
      of Director Compensation in the Form of Deferred Cash.  If a
      Participant has elected to defer receipt of a specified amount of Director
      Compensation in the form of deferred cash, an amount equal to such specified
      amount shall be credited to the Participant's Account as of the date such
      Director Compensation otherwise would have been payable to the Participant
      but
      for such election to defer.  Deferred cash credited to a Participant's
      Account may be invested in such investment vehicles as may be designated from
      time-to-time by the Board or a Board committee.  The terms of any such
      investment (including relating to timing, crediting of earnings and losses,
      and
      reallocation among investment vehicles) shall be subject to such rules,
      regulations and determinations as may be adopted by the Administrator. The
      Company may link the earnings and losses under designated investment vehicles
      to
      the returns of actual investments in such vehicles, which investments may be
      made directly by the Company or through a rabbi trust or other intermediary;
      provided, however, that the Participant shall have no rights with respect to
      any
      specific assets that would cause the Participant to be other than an unsecured
      creditor of the Company or to be otherwise in constructive receipt of any cash
      or property.  The right and interest of each Participant relating to
      deferred cash credited to his or her Account at all times will be
      nonforfeitable.

    

    (d)           Cessation
      of Service as a Director.  If any Director Compensation otherwise
      subject to an election would be paid to a Participant after he or she has ceased
      to serve as a director, such payment shall not be subject to deferral under
      this
      Section 8, but shall instead be paid in accordance with the Company's regular
      non-employee director compensation policies.

    

    9.           Other
      Terms of Accounts.

    

    (a)           Dividend
      Equivalents on Share Units.  Dividend equivalents will be
      credited on Share Units (i.e., RSUs and Deferred Shares) credited to a
      Participant's Account as follows:

    

    
      	
               

            	
              (i)

            	
              Cash
                and Non-Share Dividends.  If the Company declares and pays a
                dividend on Shares in the form of cash or property other than Shares,
                then
                a number of additional Share Units shall be credited to a Participant's
                Account as of the designated crediting date for such dividend equal
                to (i)
                the number of Share Units credited to the Account as of the record
                date
                for such dividend, multiplied by (ii) the amount of cash plus the
                Fair
                Market Value of any property other than Shares actually paid as a
                dividend
                on each Share at such payment date, divided by (iii) the Fair Market
                Value
                of a Share at such designated crediting
                date.

            

    

    

    
      	
               

            	
              (ii)

            	
              Share
                Dividends and Splits.  If the Company declares and pays a
                dividend on Shares in the form of additional Shares, or there occurs
                a
                forward split of Shares, then a number of additional Share Units
                shall be
                credited to the Participant's Account as of the payment date for
                such
                dividend or forward Share split equal to (i) the number of Share
                Units
                credited to the Account as of the record date for such dividend or
                split
                multiplied by (ii) the number of additional Shares actually paid
                as a
                dividend or issued in such split in respect of each
                Share.

            

    

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (iii)

            	
              Designated
                Crediting Date.  The Administrator may designate the
                crediting date for dividend equivalents under Section 9(a)(i), which
                may
                be not earlier than the dividend payment date and not later than
                six
                months after the dividend payment date.  No interest will be
                credited on cash amounts between the dividend payment date and the
                designated crediting date.

            

    

    

    (b)           Reallocation
      of Accounts.  A Participant shall have no right to have amounts
      credited as cash in his or her Account reallocated or switched to Share Units
      in
      such Account or amounts credited as Share Units in such Account reallocated
      or
      switched to deferred cash in such Account, unless otherwise determined by the
      Board.  The foregoing notwithstanding, in the event of a Change in
      Control, unless otherwise specifically elected by the Participant prior to
      the
      Change in Control, the Participant's Share Unit balance in his or her Account
      shall be automatically converted into deferred cash based on the Fair Market
      Value of Shares as of the close of business on the day of the Change in Control
      (or, if no Shares remain outstanding at that time, as of the close of business
      on the day preceding the Change in Control).  If and to the extent
      authorized under Section 8(c), amounts of deferred cash may be reallocated
      among
      investment alternatives made available for cash deferrals under the
      Plan.

    

    (c)           Elections
      as to Settlement.  Each Participant, at the time the Participant
      makes a deferral election under Section 6(e) or Section 8(a) shall file an
      election with the Administrator specifying the time or times at which the
      Participant's Account will be settled, following the Participant's termination
      of service as a director of the Company, and whether distribution will be in
      a
      single lump sum or in a number of annual installments not exceeding ten;
      provided, however, that, if no valid election has been filed as to the time
      of
      settlement of a Participant's Account or any portion thereof, such Account
      or
      portion thereof shall be distributed in a single lump sum on the first business
      day of the year following the year in which the Participant ceases to serve
      as a
      director.  If installments are elected, such installments must be
      annual installments commencing not later than the first year following the
      year
      in which the Participant ceases to serve as a director (on such annual
      installment date as may be specified by the Administrator) and extending over
      a
      period not to exceed ten years.

    

    
      	
               

            	
              (i)

            	
              Matters
                Covered by Election.  Subject to the terms of the Plan, the
                Administrator shall determine whether all deferrals under the Plan
                must be
                subject to a single election as to the time or times of settlement,
                or
                whether settlement elections may relate to deferrals relating to
                a
                specified Plan Year.  If the Administrator permits elections to
                relate to a specified Plan Year, such election shall apply to the
                amounts
                originally credited in respect of such Plan Year and to any additional
                amounts credited as dividend equivalents or interest in respect of
                such
                originally credited amounts and previously credited additional
                amounts.

            

    

    

    

    

    

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
      	
               

            	
              (ii)

            	
              Modifying
                Elections.  A Participant may modify a prior election as to
                the time at which a Participant's Account (or portion thereof) will
                be
                settled and/or the form of settlement (i.e., lump sum or installments,
                or
                the number of installments) at any time by filing a new election
                with the
                Administrator, subject to, and in accordance with paragraphs (A)
                and (B),
                below.  The foregoing notwithstanding, elections under this
                Section 9(c) shall not be permitted, if permitting such an election
                would
                result in constructive receipt by the Participant of compensation
                in
                respect of the Participant's Account prior to the actual settlement
                of
                such Account or would violate Section 409A of the
                Code.

            

    

    

    
      	
               

            	
              (A)

            	
              Second
                Elections.  To the extent permitted under Section 409A of
                the Code and the regulations issued thereunder, a Participant may
                change
                the form of settlement (i.e., lump sum or installments, or the
                number of installments) and/or the settlement date selected under
                a
                deferral election, provided (a) the new election must be must be
                filed
                with the Administrator at least 12 full months before settlement
                would
                occur under the election in place prior to the change, (b) the new
                election is not effective for a period of 12 months from the date
                made,
                and (c) the settlement date under the modified election defers settlement
                for at least 5 years from the date settlement would otherwise have
                occur.

            

    

    

    
      	
               

            	
              (B)

            	
              Special
                2006 and 2007 Elections.  Notwithstanding anything in
                Section 6, Section 8 or this Section 9 to the contrary, to the extent
                permitted under Section 409A of the Code and the regulations issued
                thereunder, a Participant may make a new election on or before December
                31, 2007 as to the settlement date and/or form (i.e., lump sum or
                installments, or the number of installments) of deferred RSUs, deferred
                cash and/or Deferred Shares credited to the Participant's
                Account.  However a Participant shall not be permitted in 2006
                to change an election in a manner that will defer settlement of amounts
                that the Participant otherwise would have received in 2006 or cause
                payments to be made in 2006 pursuant to the 2006 election; and a
                Participant shall not be permitted in 2007 to change an election
                in a
                manner that will defer settlement of amounts that the Participant
                otherwise would have received in 2007 or cause payments to be made
                in 2007
                pursuant to the 2007 election.

            

    

    

    (d)           Statements.  The
      Administrator will furnish statements to each Participant reflecting the amounts
      credited to a Partici­pant's Account, transactions therein, and other
      related information no less frequently than once each calendar
      year.  Statements may be combined with other information, including
      information with respect to other compensation plans, being provided to the
      Participant.

    

    (e)           Fractional
      Shares.  The amount of Share Units credited to an Account shall
      include fractional Shares calculated to at least three decimal
      places.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    10.           Settlement
      of Accounts.  The Company will settle a Participant's Account
      by making one or more distributions to the Participant (or his or her
      Beneficiary, following Participant's death) at the time or times, in a lump
      sum
      or installments, as specified in the Participant's election(s) filed in
      accordance with Sections 6(e) and 9(c); provided, however, that an Account
      will
      be settled at times earlier than those specified in such election in accordance
      with Sections 10(b), or 10(c); and provided further, that RSUs as to which
      no
      valid election to defer has been filed will be settled at the date specified
      in
      connection with the award under Section 6.

    

    (a)           Form
      of Distribution.  Distributions in settlement of a Participant's
      Account shall be made only in cash with respect to deferred cash and in Shares
      with respect to Share Units.

    

    (b)           Death
      or Disability.  If a Participant ceases to serve as a director
      due to death or Disability or dies prior to distribution of all amounts from
      his
      or her Account, the Company shall make a single lump-sum distribution to the
      Participant or his or her Beneficiary.  Any such distribution shall be
      made as soon as practicable (and in any case within 90 days) following
      notification to the Company of the Participant's death or
      Disability.

    

    (c)           Financial
      Emergency and Other Payments.  Other provisions of the Plan
      notwithstanding, if, upon the written application of a Participant, the Board
      determines that the Participant has suffered an unforeseeable financial
      emergency, the Board may direct the payment to the Participant all or a portion
      of the balance of the Participant's Account and the time and manner of such
      payment.  For purposes of this Plan, an unforeseeable financial
      emergency is an unexpected need for cash arising from an illness, casualty
      loss,
      sudden financial reversal, or other such unforeseeable occurrence. Cash needs
      arising from foreseeable events such as the purchase of a house or education
      expenses for children shall not be considered to be the result of an
      unforeseeable financial emergency.  It is intended that the
      Committee's determination as to whether a Participant has suffered an
      "unforeseeable financial emergency" and the amount of any distribution related
      to such emergency shall be made consistent with the requirements under Code
      section 409A.

    

    (d)           Distribution
      Upon a Change in Control.  Other provisions of the Plan
      notwithstanding, settlement of RSUs and Accounts in the event of a Change in
      Control will occur only if an event relating to the Change in Control
      constitutes a change in ownership or effective control of the Company or a
      change in the ownership of a substantial portion of the assets of the Company
      within the meaning of Treas. Reg. § 1.409A-3(i)(5).  In such event,
      the Company shall make a single lump-sum distribution to the Participant in
      settlement of his or her RSUs and in settlement of his or her Account as
      promptly as practicable and in any case not later than 90 days following the
      event.  If a Change in Control occurs without triggering a
      distribution under the preceding sentence, the distribution will instead occur
      upon the occurrence of the next following event that, under Code Section 409A,
      would be a permissible event triggering distributions of deferred
      compensation.

    

    

    

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (e)           Distributions
      in Certain Cases if Director Has Become an Employee.  Other
      provisions of the Plan notwithstanding, if a director is a “Key Employee” at the
      time of settlement of his or her RSUs or Account, any such settlement subject
      to
      Section 409A (a)(2)(A)(i) that would be made within six months following a
      separation from service of the Director shall instead occur at the expiration
      of
      the six-month period under Section 409A(a)(2)(B)(i).  If distributions
      are delayed pursuant to this provision, the accumulated amounts withheld on
      account of Section 409A will be paid on the first business day after the end
      of
      the six-month period.  If the Participant dies during the six-month
      period, the withheld amounts shall be paid to the Participant’s Beneficiary soon
      as practicable (and in any case within 90 days) after the Participant’s
      death.  In the case of installments, this delay shall not affect the
      timing of any installment otherwise payable after the six-month delay
      period.  The term “Key Employee” shall mean an employee who, at any
      time during the 12-month period ending on the identification date, is a
“specified employee” under section 409A of the Code, as determined by the
      Committee or its delegate.  The determination of Key Employees,
      including the number and identity of persons considered specified employees
      and
      the identification date, shall be made by the Committee or its delegate in
      accordance with the provisions of sections 416(i) and 409A of the Internal
      Revenue Code and the regulations issued thereunder.  This paragraph
      10(e) shall not apply to Grandfathered Accounts, which shall continue to be
      subject to, and governed by, the terms of the Plan as in effect on December
      31,
      2004.

     

    (f)           Separation
      from Service.   Other provisions of the Plan notwithstanding,
      settlement of RSUs and Accounts triggered by a Participant’s termination of
      service and intended to qualify under Section 409A(a)(2)(A)(i) shall be made
      only at the time that the Participant has had a “separation from service” within
      the meaning of Section 409A(a)(2)(A)(i) (or earlier at such time, after a
      termination of service as a director but subject to Section 13(h) below, that
      there occurs another event triggering a distribution under the Plan or the
      applicable Award agreement in compliance with Section 409A).

    

    11.           Limitations
      on Deferrals and Related Participant Rights.  The rights of a
      Participant with respect to deferrals under Sections 6, 8, 9, and 10, including
      any right to modify an election as to the time of settlement under Section
      9(c),
      shall be limited or suspended at any time if and to the extent required by
      law
      or if the existence of such right would cause a Participant to be deemed to
      be
      in constructive receipt of amounts credited to his or her Account or otherwise
      cause the Participant's deferral of taxation with respect to compensation
      deferred hereunder to be ineffective.  The Plan is intended to comply
      with the applicable requirements of Code Section 409A and its corresponding
      regulations and related guidance, and shall be maintained and administrated
      in
      accordance with Code Section 409A.  Notwithstanding anything in the
      Plan to the contrary, distributions from the Plan may only be made in a manner,
      and upon an event, permitted by Code Section 409A, and the Company shall have
      no
      authority to accelerate distributions relating to deferrals subject to Code
      Section 409A in excess of the authority permitted under Section
      409A.

    

    12.           Definitions
      Relating to Change in Control.  For purposes of this Plan,
      the following definitions shall apply:

    

    

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (a)         "Beneficial
      Owner," "Beneficially Owns," and "Beneficial Ownership" shall have the meanings
      ascribed to such terms for purposes of Section 13(d) of the Exchange Act and
      the
      rules thereunder, except that, for purposes of this Section 12, "Beneficial
      Ownership" (and the related terms) shall include Voting Securities that a Person
      has the right to acquire pursuant to any agreement, or upon exercise of
      conversion rights, warrants, options or otherwise, regardless of whether any
      such right is exercisable within 60 days of the date as of which Beneficial
      Ownership is to be determined.

    

    (b)         "Change
      in Control" means and shall be deemed to have occurred if, after the Effective
      Date,

    

    
      	
               

            	
              (i)

            	
              any
                Person, other than the Company or a Related Party, acquires directly
                or
                indirectly the Beneficial Ownership of any Voting Security of the
                Company
                and immediately after such acquisition such Person has, directly
                or
                indirectly, the Beneficial Ownership of Voting Securities representing
                20
                percent or more of the total voting power of all the then-outstanding
                Voting Securities; or

            

    

    

    
      	
               

            	
              (ii)

            	
              those
                individuals who as of the Effective Date constitute the Board or
                who
                thereafter are elected to the Board and whose election, or nomination
                for
                election, to the Board was approved by a vote of at least two-thirds
                (2/3)
                of the directors then still in office who either were directors as
                of the
                Effective Date or whose election or nomination for election was previously
                so approved, cease for any reason to constitute a majority of the
                members
                of the Board; or

            

    

    

    
      	
               

            	
              (iii)

            	
              there
                is consummated a merger, consolidation, recapitalization or reorganization
                of the Company, a reverse stock split of outstanding Voting Securities,
                or
                an acquisition of securities or assets by the Company (a "Transaction"),
                other than a Transaction which would result in the holders of Voting
                Securities having at least 80 percent of the total voting power
                represented by the Voting Securities outstanding immediately prior
                thereto
                continuing to hold Voting Securities or voting securities of the
                surviving
                entity having at least 60 percent of the total voting power represented
                by
                the Voting Securities or the voting securities of such surviving
                entity
                outstanding immediately after such Transaction and in or as a result
                of
                which the voting rights of each Voting Security relative to the voting
                rights of all other Voting Securities are not altered;
                or

            

    

    

    
      	
               

            	
              (iv)

            	
              there
                is implemented or consummated a plan of complete liquidation of the
                Company or a sale or disposition by the Company of all or substantially
                all of the Company's assets other than any such transaction which
                would
                result in Related Parties owning or acquiring more than 50 percent
                of the
                assets owned by the Company immediately prior to the
                transaction.

            

    

    

    (c)         "Person"
      shall have the meaning ascribed for purposes of Section 13(d) of the Exchange
      Act and the rules thereunder.

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (d)         "Related
      Party" means (i) a majority-owned subsidiary of the Company; or (ii) a trustee
      or other fiduciary holding securities under an employee benefit plan of the
      Company or any majority-owned subsidiary of the Company; or (iii) a corporation
      owned directly or indirectly by the shareholders of the Company in substantially
      the same proportion as their ownership of Voting Securities; or (iv) if, prior
      to any acquisition of a Voting Security which would result in any Person
      Beneficially Owning more than ten percent of any outstanding class of Voting
      Security and which would be required to be reported on a Schedule 13D or an
      amendment thereto, the Board approved the initial transaction giving rise to
      an
      increase in Beneficial Ownership in excess of ten percent and any subsequent
      transaction giving rise to any further increase in Beneficial Ownership;
      provided, however, that such Person has not, prior to obtaining Board approval
      of any such transaction, publicly announced an intention to take actions which,
      if consummated or successful (at a time such Person has not been deemed a
      "Related Party"), would constitute a Change in Control.

    

    (e)         "Voting
      Securities" means any securities of the Company which carry the right to vote
      generally in the election of directors.

    

    13.         General
      Provisions.

    

    (a)         Limits
      on Transferability.  Restricted Stock prior to the lapse of
      restrictions, Options, RSUs, Deferred Shares, deferred cash, and all other
      rights under the Plan will not be transferable by a Participant except by will
      or the laws of descent and distribution, or to a Beneficiary in the event of
      a
      Participant's death, and will not otherwise be subject to alienation,
      anticipation, encumbrance, garnishment, attachment, levy, execution or other
      legal or equitable process, nor subject to the debts, contracts, liabilities
      or
      engagements, or torts of any Participant or his or her
      Beneficiary.  Any attempt to alienate, sell, transfer, assign, pledge,
      garnish, attach or take any other action subject to legal or equitable process
      or encumber or dispose of any interest in the Plan shall be void.  The
      foregoing notwithstanding, the Administrator may permit a Participant to
      transfer Options and related rights to one or more trusts, partnerships, or
      family members during the lifetime of the Participant solely for estate planning
      purposes, but only if and to the extent then consistent with the registration
      of
      any offer and sale of Shares related thereto on Form S-8, Form S-3, or such
      other registration form of the Securities and Exchange Commission as may then
      be
      permitted to be filed with respect to the Plan.  The Company may rely
      upon the beneficiary designation last filed in accordance with this Section
      13(a).

    

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (b)         Adjustments.  In
      the event that any large, special and non-recurring dividend or other
      distribution in the form of cash or other property, recapitalization, forward
      or
      reverse split, Share dividend,  reorganization, merger, consolidation,
      spin-off, combination, repurchase, share exchange, liquidation, dissolution
      or
      other similar corporate transaction or event affects the Shares such that an
      adjustment is determined by the Board to be appropriate in order to prevent
      dilution or enlargement of a Participant's rights under the Plan, then the Board
      shall, in such manner as it may deem equitable, adjust any or all of (i) the
      number and kind of Shares reserved and available for delivery under the Plan
      and
      to be subject to Restricted Stock, Options, SARs, RSUs and Deferred Shares
      thereafter granted or credited, (ii) the limits upon the number of Shares that
      may be subject to Restricted Stock, RSUs, Options and SARs automatically granted
      under Sections 6 and 7 and any specification of the number automatically
      granted, (iii) the number and kind of Shares outstanding as Restricted Stock,
      (iv) the number and kind of Shares deliverable upon exercise of outstanding
      Options and SARs, and the exercise price per Share thereof (provided that no
      fractional Shares will be delivered upon exercise of any Option or SAR), and
      (v)
      the number and kind of Shares then credited as RSUs and Deferred Shares (taking
      into account any Share Units credited as dividend equivalents under Section
      9(a)) and by reference to which RSUs and Deferred Shares are valued under the
      Plan.

    

    (c)                Receipt
      and Release.  Payments (in any form) to any Participant or
      Beneficiary in accordance with the provisions of the Plan shall, to the extent
      thereof, be in full satisfaction of all claims for the compensation deferred
      and
      relating to the Account to which the payments relate against the Company, the
      Board, or the Administrator, and the Administrator may require such Participant
      or Beneficiary, as a condition to such payments, to execute a receipt and
      release to such effect.  In the case of any payment under the Plan of
      less than all amounts then credited to an Account in the form of RSUs or
      Deferred Shares, the amounts paid shall be deemed to relate to the RSUs or
      Deferred Shares credited to the Account at the earliest time.

    

    (d)           Compliance.  The
      Company shall have no obligation to settle any Account of a Participant (in
      any
      form) until all legal and contractual obligations of the Company relating to
      establishment of the Plan and such settlement shall have been complied with
      in
      full.  In addition, the Company shall impose such restrictions on
      Shares delivered to a Participant hereunder and any other interest constituting
      a security as it may deem advisable in order to comply with the Securities
      Act
      of 1933, as amended, the requirements of the Nasdaq National Market or any
      other
      stock exchange or automated quotation system upon which the Shares are then
      listed or quoted, any state securities laws applicable to such a transfer,
      any
      provision of the Company's Articles of Incorporation or By-Laws, or any other
      law, regulation, or binding contract to which the Company is a
      party.

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (e)              Changes
      to the Plan and Awards.  The Board may amend, suspend or
      discontinue the Plan, the authority to grant awards under the Plan, or any
      outstanding award (and any agreement relating thereto) without the consent
      of
      any other party, including shareholders or Participants; provided, however,
      that
      any amendment shall be subject to shareholder approval if and to the extent
      then
      required under applicable rules of the Nasdaq National Market or any other
      stock
      exchange or automated quotation system upon which the Shares may then be listed
      or quoted; and provided further, that, without the consent of an affected
      Participant, no such action may materially impair the rights of such Participant
      under any award theretofore granted.  The foregoing notwithstanding,
      the Board, in its sole discretion, may terminate the Plan (in whole or in
      part).  If the Board terminates the Plan, amounts credited the
      Participant's Account shall be paid in accordance with the terms of the
      Plan.  In the event of a Change in Control that constitutes a “change
      in control” event within the meaning of Code Section 409A, the Plan shall
      terminate as of the date of the Change in Control and the amounts credited
      to
      the Participant's Account shall be distributed as soon as practicable thereafter
      consistent with Code Section 409A.

    

    Without
      the prior approval of shareholders, the Committee will not amend or replace
      previously granted Options in a transaction that constitutes a
      "repricing."   For this purpose, a "repricing" means: (1)
      amending the terms of an Option after it is granted to lower its exercise price;
      (2) any other action that is treated as a repricing under generally accepted
      accounting principles; and (3) canceling an Option at a time when its strike
      price is equal to or greater than the fair market value of the underlying Stock,
      in exchange for another Option, Restricted Stock, or other equity, unless the
      cancellation and exchange occurs in connection with a merger, acquisition,
      spin-off or other similar corporate transaction.  A cancellation and
      exchange described in clause (3) of the preceding sentence will be considered
      a
      repricing regardless of whether the Option, Restricted Stock or other equity
      is
      delivered simultaneously with the cancellation, regardless of whether it is
      treated as a repricing under generally accepted accounting principles, and
      regardless of whether it is voluntary on the part of the Option
      holder.

    

    (f)           Unfunded
      Status of Plan; Creation of Trusts.  The Plan is intended to
      constitute an "unfunded" Plan for deferred compensation and Participants shall
      rely solely on the unsecured promise of the Company for payment hereunder
      (except insofar as Shares are issued in connection with Restricted
      Stock).  With respect to any payment not yet made to a Participant
      under the Plan, nothing contained in the Plan shall give a Participant any
      rights that are greater than those of a general unsecured creditor of the
      Company; provided, however, that the Board may authorize the creation of trusts
      or make other arrangements to meet the Company's obligations under the Plan,
      which trusts or other arrangements shall be consistent with the "unfunded"
      status of the Plan unless the Board otherwise determines with the consent of
      each affected Participant.  The establishment and maintenance of, or
      allocations and credits to, the Account of any Participant shall not vest in
      any
      Participant any right, title or interest in and to any Plan assets or benefits
      except at the time or times and upon the terms and conditions and to the extent
      expressly set forth in the Plan and in accordance with the terms of any
      trust.

    

    

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    (g)           Other
      Participant Rights.  No Participant shall have any of the rights
      or privileges of a shareholder of the Company under the Plan, including as
      a
      result of the grant of an Option or SAR, or crediting of RSUs, Deferred Shares
      or other amounts to an Account, or the creation of any Trust and deposit of
      Shares therein, except at such time as such Option or SAR may have been duly
      exercised or Shares may be actually delivered in settlement of an Account (in
      whole or in part); provided, however, that a Participant granted Restricted
      Stock shall have rights of a shareholder except to the extent that those rights
      are limited by the terms of the Plan and the agreement relating to the
      Restricted Stock.  No provision of the Plan, document relating to the
      Plan, or transaction hereunder shall confer upon any Participant any right
      to
      continue to serve as a director of the Company or in any other capacity with
      the
      Company or a subsidiary or to be nominated for reelection as a director, or
      interfere in any way with the right of the Company to increase or decrease
      the
      amount of any compensation payable to such Participant.  Subject to
      the limitations set forth in Section 13(a), the Plan shall inure to the benefit
      of, and be binding upon, the parties hereto and their successors and
      assigns.

    

    (h)           Continued
      Service as an Employee.  If a Participant ceases to serve as a
      director and, immediately thereafter, is employed by the Company or any
      subsidiary, then such Participant will not be deemed to have ceased to serve
      as
      a director at that time, and his or her continued employment by the Company
      or
      any subsidiary will be deemed to be continued service as a director; provided,
      however, that, for purposes of Section 5, such former director will not be
      deemed to be a non-employee director eligible for further grants of
      awards.

    

    

    (i)           Governing
      Law.  The validity, construction, and effect of the Plan, any
      rules and regulations under the Plan, and any agreement under the Plan shall
      be
      determined in accordance with the Pennsylvania Business Corporation Law, to
      the
      extent applicable, other laws (including those governing contracts) of the
      Commonwealth of Pennsylvania, without giving effect to principles of conflicts
      of laws, and applicable federal law.

    

    (j)           Limitation.  A
      Participant and his or her Beneficiary shall assume all risk in connection
      with
      any decrease in value of Restricted Stock, Options, RSUs or Deferred Shares,
      and
      neither the Company, the Board nor the Administrator shall be liable or
      responsible therefor.

    

    (k)           Severability.  In
      the event that any provision of the Plan shall be declared illegal or invalid
      for any reason, said illegality or invalidity shall not affect the remaining
      provisions of the Plan but shall be fully severable, and the Plan shall be
      construed and enforced as if said illegal or invalid provision had never been
      inserted herein.

    

    (l)           Nonexclusivity
      of the Plan.  The adoption of the Plan by the Board shall not be
      construed as creating any limitation on the power of the Board to adopt such
      other compensatory arrange­ments for directors as it may deem
      desirable.

    

    

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    (m)           Effective
      Date and Plan Termination.  The Plan, as amended and restated
      herein, shall be effective as of the Effective Date.  Unless earlier
      terminated by action of the Board, the Plan will remain in effect until such
      time as no Shares remain available for delivery under the Plan and the Company
      has no further rights or obligations under the Plan with respect to outstanding
      awards or Accounts under the Plan.

    

    

    

    

    

    Approved
      by the Board of Directors June 21, 2007

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        22EXHIBIT
            4.1

            

            S.P.I. DYNAMICS
            INCORPORATED

            2000 STOCK INCENTIVE PLAN

            

            ARTICLE 1

            Purpose

            

            
                1.1       
            General Purpose. The purpose of this Plan is to further the growth and
            development of the Company by encouraging employees and nonemployee Directors to obtain
            a proprietary interest in the Company by owning its stock. The Company intends that the
            Plan will provide such persons with an added incentive to continue in the employ of the
            Company and will stimulate their efforts in promoting the growth, efficiency and
            profitability of the Company. The Company also intends that the Plan will afford the
            Company a means of attracting to its service persons of outstanding quality.

            

            
                1.2           
            Intended Tax Effects of Options. It is intended that part of the Plan qualify as
            an ISO (as hereinafter defined) plan and that any option granted in accordance with
            such portion of the Plan qualify as an ISO (as hereinafter defined), all within the
            meaning of Code §422. The tax effects of any NQSO granted hereunder should be
            determined under Code §83.

            

            ARTICLE 2

            Definitions

            

            
                    The
            following words and phrases as used in this Plan shall have the meanings set forth in
            this Article unless a different meaning is clearly required by the context:

            

                2.1
                   1933 Act shall mean the Securities Act
            of 1933, as amended.

            

                2.2
                   1934 Act shall mean the Securities
            Exchange Act of 1934, as amended.

            

                2.3
                   Board shall mean the Board of
            Directors of the Company.

            

            
                2.4       
            Cause shall mean an act or acts by an individual involving personal dishonesty,
            incompetence, willful misconduct, breach of fiduciary duty involving personal profit,
            intentional failure to perform stated duties, willful violation of any law, rule or
            regulation (other than traffic violations or similar offenses), the use for profit or
            disclosure to unauthorized persons of confidential information or trade secrets of the
            Company, or the unlawful trading in the securities of the Company or of another
            corporation based on information gained as a result of the performance of services for
            the Company, as determined by the Committee in its sole discretion.

            

                2.5
                    Code shall mean the Internal
            Revenue Code of 1986, as amended.

            

            
                2.6       
            Committee shall mean the committee appointed by the Board to administer and
            interpret the Plan in accordance with Article 3 below.

            
            
            

                2.7
                   Common Stock shall mean the common
            stock of the Company.

            

                2.8
                   Company shall mean S.P.I. Dynamics
            Incorporated

            

            
                2.9       
            Director shall mean any individual who is serving as a member of the Board of
            Directors of the Company or who is serving as a member of the board of directors of a
            parent or subsidiary corporation of the Company.

            

            
                2.10       
            Disability shall mean, with respect to an individual, the total and permanent
            disability of such individual, as determined by the Company’s long-term
            disability insurance carrier, so that such individual is eligible to receive benefits
            under the Company’s long-term disability insurance plan, or if no such plan is
            applicable, an individual’s inability to engage in the essential functions of his
            or her duties due to a medically-determinable physical or mental impairment, illness or
            injury, which can be expected to result in death or to be of long-continued and
            indefinite duration. The Committee’s determination regarding Disability made
            pursuant to the foregoing provisions shall be final and binding for all purposes of
            this Plan.

            

                2.11
                   Effective Date shall mean September
            9, 2000, subject to shareholder approval.

            

                2.12
                   Fair Market Value of the Common
            Stock as of a date of determination shall mean the following:

            

            	
                    	
                        
                               
                        (a)        Stock Listed and
                        Shares Traded.  If the Common Stock is listed and traded on a
                        national securities exchange (as such term is defined by the 1934 Act) or
                        on the NASDAQ National Market System on the day immediately preceding the
                        date of determination, the Fair Market Value per share shall be the closing
                        price of a share of the Common Stock on said national securities exchange
                        or National Market System on the day immediately preceding such date of
                        determination. If the Common Stock is traded in the over-the-counter
                        market, the Fair Market Value per share shall be the average of the closing
                        bid and asked prices on the day immediately preceding the date of
                        determination.

                    

            

            

            	
                    	
                         
                             
                        (b)        Stock Listed But No
                        Shares Traded.  If the Common Stock is listed on a national
                        securities exchange or on the National Market System but no shares of the
                        Common Stock are traded on the day immediately preceding the date of
                        determination but there were shares traded on dates within a reasonable
                        period before the date of determination, the Fair Market Value shall be the
                        closing price of the Common Stock on the most recent date before the date
                        of determination. If the Common Stock is regularly traded in the
                        over-the-counter market but no shares of the Common Stock are traded on the
                        day immediately preceding the date of determination (or if records of such
                        trades are unavailable or burdensome to obtain) but there were shares
                        traded on dates within a reasonable period before the date of
                        determination, the Fair Market Value shall be the average of the closing
                        bid and asked prices of the Common Stock on the most recent date before the
                        date of determination.

                    

            

            
            -2-

            
            
            

            

            	
                    	
                        
                           
                            (c)       
                        Stock Not Listed.  If the Common Stock is not listed on a
                        national securities exchange or on the National Market System and is not
                        regularly traded in the over-the-counter market, then the Committee shall
                        determine the Fair Market Value of the Common Stock on the date of
                        determination from all relevant available facts, which may include any
                        recent sales and purchases of such Common Stock to the extent they are
                        representative.

                    

            

            

            
                    The
            Committee’s determination of Fair Market Value, which shall be made pursuant to
            the foregoing provisions, shall be final and binding for all purposes of this
            Plan.

            

                2.13
                   ISO shall mean an incentive stock
            option within the meaning of Code §422(b).

            

            
                2.14       
            NQSO shall mean a nonqualified option to which Code §421 (relating
            generally to certain ISO and other options) does not apply.

            

            
                2.15       
            Option shall mean ISO’s and NQSO’s, as applicable, granted to
            individuals pursuant to the terms and provisions of this Plan.

            

            
                2.16       
            Option Agreement shall mean a written agreement, executed and dated by the
            Company and an Optionee, evidencing an Option granted under the terms and provisions of
            this Plan, setting forth the terms and conditions of such Option, and specifying the
            name of the Optionee and the number of shares of stock subject to such
            Option.

            

                2.17
                   Option Price shall mean the purchase
            price of the shares of Common Stock underlying an Option.

            

                2.18
                   Optionee shall mean an individual
            who is granted an Option pursuant to the terms and provisions of this Plan.

            

                2.19
                   Person shall mean any individual,
            organization, corporation, partnership or other entity.

            

                2.20
                   Plan shall mean this S.P.I. Dynamics
            Incorporated 2000 Stock Incentive Plan.

            

            ARTICLE 3

            Administration

            

               
            3.1        General Administration. The
            Plan shall be administered and interpreted by the Committee. Subject to the express
            provisions of the Plan, the Committee shall have authority to interpret the Plan, to
            prescribe, amend and rescind rules and regulations relating to the Plan, to determine
            the terms and provisions of the Option Agreements by which Options shall be evidenced
            (which shall not be inconsistent with the terms of the Plan), and to make all other
            determinations necessary or advisable for the administration of the Plan, all of which
            determinations shall be final, binding and conclusive.

            

            -3-

            
            
            

            

            
                3.2       
            Appointment. The Board shall appoint the Committee to serve at the pleasure of
            the Board. The Board from time to time may remove members from, or add members to, the
            Committee and shall fill all vacancies thereon. The Committee shall at all times be
            composed of at least one member.

            

            
                3.3       
            Organization. The Committee may select one of its members as its chairman and
            shall hold its meetings at such times and at such places as it shall deem advisable. A
            majority of the Committee shall constitute a quorum, and such majority shall determine
            its actions. The Committee shall keep minutes of its proceedings and shall report the
            same to the Board at the meeting next succeeding.

            

            
                3.4       
            Indemnification.  In addition to such other rights of indemnification as
            they have as directors or as members of the Committee, the members of the Committee, to
            the extent permitted by applicable law, shall be indemnified by the Company against
            reasonable expenses (including, without limitation, attorneys’ fees) actually and
            necessarily incurred in connection with the defense of any action, suit or proceeding,
            or in connection with any appeal, to which they or any of them may be a party by reason
            of any action taken or failure to act under or in connection with the Plan or any
            Options granted hereunder, and against all amounts paid by them in settlement thereof
            (provided such settlement is approved to the extent required by and in the manner
            provided by the articles or certificate of incorporation or the bylaws of the Company
            relating to indemnification of directors) or paid by them in satisfaction of a judgment
            in any such action, suit or proceeding, except in relation to matters as to which it
            shall be adjudged in such action, suit or proceeding that such Committee member or
            members did not act in good faith and in a manner he or they reasonably believed to be
            in or not opposed to the best interest of the Company.

            

            ARTICLE 4

            Stock

            

            
                    The
            stock subject to the Options and other provisions of the Plan shall be authorized but
            unissued or reacquired shares of Common Stock. Subject to readjustment in accordance
            with the provisions of Article 7, the total number of shares of Common Stock which may
            be granted to, or for which Options may be granted to, persons participating in the
            Plan shall not exceed in the aggregate 150,000 shares of Common Stock. Notwithstanding
            the foregoing, shares of Common Stock allocable to the unexercised portion of any
            expired or terminated Option again may become subject to Options under the
            Plan.

            

            ARTICLE 5

            Eligibility to Receive and Grant of Options

            

            
                5.1       
            Individuals Eligible for Grants of Options. The individuals eligible to
            receive Options hereunder shall be employees of the Company or any parent or subsidiary
            corporation of

            

            -4-

            
            
            

            

            the Company, including such
            employees who are also members of the Board or of the board of directors of any parent
            or subsidiary corporation of the Company, and any nonemployee Directors, consultants
            and/or advisors who are designated by the Committee to receive Options under the Plan;
            provided, however, that only employees of the Company and its “parent” or
            “subsidiary” corporations within the meaning of subsections (e) and (f) of
            Code §424 shall be eligible to receive ISO’s.

            

            
                5.2       
            Grants of Options. Subject to the provisions of the Plan, the Committee shall
            have the authority and sole discretion to determine and designate, from time to time,
            those individuals (from among the individuals eligible for a grant of Options under the
            Plan pursuant to Section 5.1 above) to whom Options will actually be granted, the
            Option Price of the shares covered by any Options granted, the manner in and conditions
            under which Options are exercisable (including, without limitation, any limitations or
            restrictions thereon), and the time or times at which Options shall be granted. In
            making such determinations, the Committee may take into account the nature of the
            services rendered by the respective employees to whom Options may be granted, their
            present and potential contributions to the Company’s success and such other
            factors as the Committee, in its sole discretion, shall deem relevant. In its
            authorization of the granting of an Option hereunder, the Committee shall specify the
            name of the Optionee, the number of shares of stock subject to such Option and whether
            such Option is an ISO or a NQSO. The Committee may grant, at any time, new
            Options to an Optionee who previously has received Options, whether such Options
            include prior Options that still are outstanding, previously have been exercised in
            whole or in part, have expired or are canceled in connection with the issuance of new
            Options. No individual shall have any claim or right to be granted Options under the
            Plan.

            

            
                5.3       
            Limitation on Exercisability of ISO’s. Notwithstanding anything herein
            to the contrary, the aggregate Fair Market Value of ISO’s which are granted to
            any employee under the Plan or any other stock incentive plan adopted by the Company
            that are first exercisable in any one calendar year shall not exceed $100,000. The
            Committee shall interpret and administer the limitations set forth in this Section in
            accordance with Code §422(d).

            

            ARTICLE 6

            Terms and Conditions of Options

            

               
                Options granted hereunder and Option Agreements shall comply with
            and be subject to the following terms and conditions:

            

            
                6.1       
            Requirement of Option Agreement. Upon the grant of an Option hereunder, the
            Committee shall prepare (or cause to be prepared) an Option Agreement. The Committee
            shall present such Option Agreement to the Optionee. Upon execution of such Option
            Agreement by the Optionee, such Option shall be deemed to have been granted effective
            as of the date of grant. The failure of the Optionee to execute the Option Agreement
            within thirty (30) days after the date of the receipt of same shall render the Option
            Agreement and the underlying Option null and void ab initio.

            
            

            -5-

            
            
            

            
                6.2       
            Optionee and Number of Shares. Each Option Agreement shall state the name of
            the Optionee and the total number of shares of the Common Stock to which it pertains,
            the Option Price, and the date as of which the Option was granted under this
            Plan.

            

            
                6.3       
            Exercisability. Unless otherwise specified by the Committee in the Option
            Agreement, an Option shall first become exercisable with respect to such portions of
            the shares subject to such Option as are specified in the schedule set forth herein
            below:

            

            	
                    	
                        
                           
                            (a)
                               Commencing as of the first
                        anniversary of the date the Option is granted, the Optionee shall have the
                        right to exercise the Option with respect to, and to thereby purchase, 25%
                        of the shares subject to such Option. Prior to said date, the Option shall
                        be unexercisable in its entirety.

                    

            

            

            	
                    	
                        
                               
                        (b)        Commencing as of the second
                        anniversary of the date the Option is granted, the Optionee shall have the
                        right to exercise the Option with respect to, and to thereby purchase, an
                        additional 25% of the shares subject to the Option.

                    

            

            

            	
                    	
                        
                               
                        (c)        Commencing as of the third
                        anniversary of the date the Option is granted, the Optionee shall have the
                        right to exercise the Option with respect to, and to thereby purchase, an
                        additional 25% of the shares subject to the Option.

                    

            

            

            	
                    	
                        
                               
                        (d)        Commencing as of the fourth
                        anniversary of the date the Option is granted, the Optionee shall have the
                        right to exercise the Option with respect to, and to thereby purchase, the
                        remainder of the shares subject to such Option.

                    

            

            

            	
                    	
                        
                               
                        (e)        Notwithstanding subsections
                        (a) through (d) above, any Options previously granted to an Optionee shall
                        become immediately exercisable for 100% of the number of shares subject to
                        the Options upon the Optionee’s becoming Disabled or upon his
                        death.

                    

            

            

            Other than as provided above, if
            an Optionee ceases to be an employee of the Company or a company with ownership related
            to the Company, his rights with regard to all non-exercisable Options shall cease
            immediately.

            

            
                6.4       
            Option Price. The Option Price of the shares of Common Stock underlying each
            Option shall be the Fair Market Value of the Common Stock on the date the Option is
            granted, unless otherwise determined by the Committee; provided, in no event shall the
            Option Price of any ISO be less than 100% (110% in the case of ISO’s of Optionees
            who own more than ten percent of the voting power of all classes of stock of either the
            Company or any “parent” or “subsidiary” corporation of the
            Company (within the meaning of subsections (e) and (f) of Code §424)) of the Fair
            Market Value of the Common Stock on the date the Option is granted. Upon execution of
            an Option Agreement by both the Company and Optionee, the date as of which the
            Committee granted the Option as specified in the Option Agreement shall be considered
            the date on which such Option is granted.

            

            -6-

            
            
            

            

            
                6.5       
            Terms of Options. Subject to the provisions of Section 6.9, terms of Options
            granted under the Plan shall commence on the date of grant and shall expire on such
            date as the Committee may determine for each Option; provided, in no event shall any
            Option be exercisable after ten years (five years in the case of ISO’s granted to
            Optionees who own more than ten percent of the voting power of all classes of stock of
            either the Company or any parent or subsidiary) from the date the Option is granted. No
            Option shall be granted hereunder after ten years from the earlier of the date the Plan
            is approved by the shareholders or the date the Plan is adopted by the
            Board.

            

            
                6.6       
            Minimum Exercise. The exercise of an Option may be for less than the full
            number of shares of Common Stock subject to such Option, but such exercise shall not be
            made for less than (i) 100 shares or (ii) the total remaining shares subject to such
            Option, if such total is less than 100 shares. Subject to the other restrictions on
            exercise set forth herein, the unexercised portion of an Option may be exercised at a
            later date by the Optionee.

            

            
                6.7       
            Method of Exercise. All Options granted hereunder shall be exercised by
            written notice directed to the Secretary of the Company at its principal place of
            business or to such other person as the Committee may direct. Each notice of exercise
            shall identify the Option which the Optionee is exercising (in whole or in part) and
            shall be accompanied by payment of the Option Price for the number of shares specified
            in such notice and by any documents required by Section 8.1. The Company shall make
            delivery of such shares within a reasonable period of time; provided, if any law or
            regulation requires the Company to take any action (including, but not limited to, the
            filing of a registration statement under the 1933 Act and causing such registration
            statement to become effective) with respect to the shares specified in such notice
            before the issuance thereof, then the date of delivery of such shares shall be extended
            for the period necessary to take such action. For Options which are ISO’s,
            written statements shall be furnished to the Optionee in accordance with Code
            §6039 on or before January 31 of the year following the year in which the Option
            was exercised. See Treas. Reg. §§1.6039-1 and -2, and 301.6039-1.

            

                6.8
                   Medium and Time of
            Payment.

            

            	
                    	
                        
                               
                        (a)        The Option Price shall be
                        payable upon the exercise of the Option in an amount equal to the number of
                        shares then being purchased times the per share Option Price. Payment shall
                        be made by one of the following methods: (i) in cash, (ii) if permitted by
                        the Committee in its sole discretion, in a promissory note executed by the
                        Optionee in favor of the Company and deemed acceptable by the Committee, or
                        (iii) by any combination of the payment methods specified in (i) or (ii)
                        above.

                    

            

            

            	
                    	
                        
                               
                        (b)        In addition to the payment of
                        the purchase price of the shares then being purchased, an Optionee also
                        shall pay in cash an amount equal to the amount, if any, which the Company
                        at the time of exercise is required to withhold under the income tax or
                        Federal Insurance Contribution Act tax withholding provisions of the Code,
                        of the income tax laws of the state of the Optionee’s residence, and
                        of any other applicable law.

                    

            

            

            -7-

            
            
            

            

            
                6.9       
            Effect of Termination of Employment or Affiliation. Except as provided in this
            section, no Option shall be exercisable unless the Optionee thereof shall have been an
            employee (or, in the case of an Option granted to a nonemployee director, consultant or
            advisor, unless the Optionee thereof shall have been a director, consultant or advisor)
            of the Company from the date of the granting of the Option until the date of exercise.
            In the event an Optionee ceases to be an employee of (or to perform services, in the
            case of a nonemployee director, consultant or advisor) for the Company for any reason,
            any Option or unexercised portion thereof granted to him shall terminate on and shall
            not be exercisable after the earliest to occur of (i) the expiration date of the
            Option, (ii) thirty (30) days after termination of employment for any reason other than
            death or Disability, (iii) three (3) months after termination of employment for death
            or Disability, (iv) the date on which the Company gives notice to such Optionee of
            termination of employment if employment is terminated by the Company for Cause, (v) in
            the case of an NQSO held by an Optionee who holds such Option in his capacity as a
            consultant, director or advisor of the Company, the date on which the Company gives
            notice to such Optionee that such Optionee is no longer affiliated with the Company;
            provided, the Committee may provide in the Option Agreement that such Option or any
            unexercised portion thereof shall terminate sooner; provided, further, the Committee
            may, in its discretion, extend the exercise period provided in this section for any
            NQSOs. Prior to the earlier of the dates specified in the preceding sentence of this
            section, the Option shall be exercisable only in accordance with its terms and only for
            the number of shares exercisable on the date of termination of employment. The question
            of whether an authorized leave of absence or absence for military or government service
            or for any other reason shall constitute a termination of employment for purposes of
            the Plan shall be determined by the Committee, which determination shall be final and
            conclusive.

            

            
                6.10       
            Death of Optionee. In the event of the death of Optionee while in the employ
            of the Company, all or any of the unexercised portion of the Option owned by the
            deceased Optionee may be exercised by the executor or administrator of the
            Optionee’s estate at any time prior to the expiration of the three-month period
            following the date of the Optionee’s termination of employment, but in no event
            later than the date as of which such Option expires pursuant to Section 6.5 hereof Such
            exercise shall be effected in accordance with the terms hereof as if such executor or
            administrator was Optionee herein.

            

            
                6.11       
            Restrictions on Transfer and Exercise of Options. No Option shall be
            assignable or transferable by the Optionee except by will or by the laws of descent and
            distribution, and any purported transfer shall be null and void. During the lifetime of
            an Optionee, the Option shall be exercisable only by him; provided, however, that in
            the event the Optionee is incapacitated and unable to exercise Options, such Options
            may be exercised by such Optionee’s legal guardian or other representative whom
            the Committee deems appropriate based on applicable facts and circumstances.

            

            
                6.12       
            Rights and Obligations as a Shareholder. An Optionee shall have no rights as a
            shareholder with respect to shares covered by his Option until date of the issuance of
            the shares to him and only after the Option Price of such shares is fully paid. If an
            Optionee pays for such shares with a promissory note executed by the Optionee in favor
            of the Company as provided in Section 6.8(a), Unless specified in Article 8, no
            adjustment will be made for dividends or other

            

            -8-

            
            
            

            

            rights for which the record date
            is prior to the date of such issuance. Upon exercise of an Option, the Optionee shall
            be required to execute a shareholder’s agreement with the Company and shall be
            subject to the provisions of such agreement pertinent to the Company’s rights of
            first refusal and buy-back provisions.

            

            
                6.13       
            No Obligation to Exercise Option. The granting of an Option shall impose no
            obligation upon the Optionee to exercise such Option.

            

            
                6.14       
            Acceleration. The Committee shall at all times have the power to accelerate
            the date of exercisability of Options previously granted under this Plan.

            

            
                6.15       
            Designation of Option as ISO or NQSO. Subject to the provisions of this
            Article, each Option granted under the Plan shall be designated either as an ISO or a
            NQSO. An Option Agreement evidencing both an ISO and a NQSO shall identify clearly the
            status and terms of each Option.

            

            
                6.16       
            ISO’s Converted to NQSO’s. In the event any part or all of an
            Option granted under the Plan which is intended to be an ISO at any time fails to
            satisfy all of the requirements of an ISO, then such ISO shall be split into an ISO and
            NQSO so that the portion of the Option, if any, that still qualifies as an ISO shall
            remain an ISO and the portion that does not qualify as an ISO shall become a NQSO. Such
            split of an Option into an ISO portion and a NQSO portion shall be evidenced by one or
            more Option Agreements, as long as each Option is identified clearly as to its status
            as an ISO or NQSO.

            

            ARTICLE 7

            Adjustments Upon Changes in Capitalization

            

            
                7.1       
            Recapitalization. In the event that the outstanding shares of the Common Stock
            of the Company are hereafter increased or decreased or changed into or exchanged for a
            different number or kind of shares or other securities of the Company by reason of a
            recapitalization, reclassification, stock split, combination of shares or dividend
            payable in shares of the Common Stock, the following rules shall apply:

            

            	
                    	
                        
                               
                        (a)        The Committee shall make an
                        appropriate adjustment in the number and kind of shares available for the
                        granting of Options under the Plan.

                    

            

            

            -9-

            
            
            

            

            	
                    	
                        
                               
                        (b)        The Committee also shall make
                        an appropriate adjustment in the number and kind of shares as to which
                        outstanding Options, or portions thereof then unexercised, shall be
                        exercisable; any such adjustment in any outstanding Options shall be made
                        without change in the total price applicable to the unexercised portion of
                        such Option and with a corresponding adjustment in the Option Price per
                        share. No fractional shares shall be issued or optioned in making the
                        foregoing adjustments, and the number of shares available under the Plan or
                        the number of shares subject to any outstanding Options shall be the next
                        lower number of shares, rounding all fractions downward.

                    

            

            

            	
                    	
                        
                               
                        (c)        Any adjustment to or
                        assumption of ISO’s under this Section shall be made in accordance
                        with Code §424(a) and the regulations promulgated thereunder so as to
                        preserve the status of such Options as ISO’s under Code
                        §422.

                    

            

            

            
                7.2       
            Reorganization. Subject to any required action by the shareholders, if the
            Company shall be a party to any reorganization involving merger, consolidation,
            acquisition of the Common Stock or acquisition of the assets of the Company (other than
            an initial public offering of the Common Stock), the Committee, in its discretion, may
            declare that:

            

            	
                    	
                        
                               
                        (a)        any Option granted but not
                        yet exercised shall pertain to and apply, with appropriate adjustment as
                        determined by the Committee in its sole discretion, to the securities of
                        the resulting corporation to which a holder of the number of shares of the
                        Common Stock subject to such Option would have been entitled;

                    

            

            

            	
                    	
                        
                               
                        (b)        any or all outstanding
                        Options granted hereunder shall become immediately nonforfeitable and fully
                        exercisable (to the extent permitted under federal or state securities
                        laws);

                    

            

            

            	
                    	
                        
                               
                        (c)        any and all outstanding
                        Options shall be fully and completely relinquished by the Optionees in
                        exchange for a cash payment equal to the difference between the per share
                        Option Price and the per share Fair Market Value of the Common Stock at the
                        time of the transaction; and/or

                    

            

            

            	
                    	
                        
                              
                        (d)        any or all Options granted
                        hereunder shall become immediately nonforfeitable and fully exercisable (to
                        the extent permitted under federal or state securities laws) and are to be
                        terminated after giving at least thirty (30) days’ notice to the
                        Optionees to whom such Options have been granted.

                    

            

            

            
                7.3       
            Dissolution and Liquidation. If the Board adopts a plan of dissolution and
            liquidation that is approved by the shareholders of the Company, the Committee shall
            give each Optionee written notice of such event at least ten (10) days prior to its
            effective date, and the rights of all Optionees shall become immediately nonforfeitable
            and fully exercisable (to the extent permitted under federal or state securities
            laws).

            

            
                7.4       
            Limits on Adjustments. Any issuance by the Company of stock of any class, or
            securities convertible into shares of stock of any class, shall not affect, and no
            adjustment by reason thereof shall be made with respect to, the number or price of
            shares of the Common Stock subject to any Option, except as specifically provided
            otherwise in this Article. The grant of Options pursuant to the Plan shall not affect
            in any way the right or power of the Company to make adjustments, reclassifications,
            reorganizations or changes of its capital or business structure or to merge,
            consolidate or dissolve, or to liquidate, sell or transfer all or any part of its
            business or assets. All adjustments the Committee makes under this Article shall be
            conclusive.

            

            -10-

            
            
            

            

            ARTICLE 8

            Agreement by Optionee and Securities Registration

            

            
                8.1       
            Agreement. If, in the opinion of counsel to the Company, such action is
            necessary or desirable, no Options shall be granted to any Optionee, and no Option
            shall be exercisable, unless, at the time of grant or exercise, as applicable, such
            Optionee (i) represents and warrants that he will acquire the Common Stock for
            investment only and not for purposes of resale or distribution, and (ii) makes such
            further representations and warranties as are deemed necessary or desirable by counsel
            to the Company with regard to holding and resale of the Common Stock. The Optionee
            shall, upon the request of the Committee, execute and deliver to the Company an
            agreement or affidavit to such effect. Should the Committee have reasonable cause to
            believe that such Optionee did not execute such agreement or affidavit in good faith,
            the Company shall not be bound by the grant of the Option or by the exercise of the
            Option. All certificates representing shares of Common Stock issued pursuant to the
            Plan shall be marked with the following restrictive legend or similar legend, if such
            marking, in the opinion of counsel to the Company, is necessary or
            desirable:

            

            
                
                    
                            
                    THE SHARES REPRESENTED BY
                    THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                    AMENDED, OR THE SECURITIES LAWS OF ANY STATE. ACCORDINGLY, THESE SHARES MAY NOT
                    BE SOLD, HYPOTHECATED, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (I) PURSUANT TO
                    AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS
                    AMENDED, AND ANY APPLICABLE SECURITIES LAWS OR REGULATIONS OF ANY STATE WITH
                    RESPECT TO SUCH SHARES, (II) IN ACCORDANCE WITH SECURITIES AND EXCHANGE
                    COMMISSION RULE 144, OR (III) UPON THE ISSUANCE TO THE CORPORATION OF A
                    FAVORABLE OPINION OF COUNSEL OR THE SUBMISSION TO THE CORPORATION OF SUCH OTHER
                    EVIDENCE AS MAY BE SATISFACTORY TO THE CORPORATION THAT SUCH PROPOSED SALE,
                    ASSIGNMENT, ENCUMBRANCE OR OTHER TRANSFER WILL NOT BE IN VIOLATION OF THE
                    SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE SECURITIES LAWS OF ANY
                    STATE OR ANY RULES OR REGULATIONS THEREUNDER. ANY ATTEMPTED TRANSFER OF THIS
                    CERTIFICATE OR THE SHARES REPRESENTED HEREBY WHICH IS IN VIOLATION OF THE
                    PRECEDING RESTRICTIONS .WILL NOT BE RECOGNIZED BY THE CORPORATION, NOR WILL ANY
                    TRANSFEREE BE RECOGNIZED AS THE OWNER THEREOF BY THE
                    CORPORATION.

                

            

            

            If the Common Stock is (A) held
            by an Optionee who is not an “affiliate,” as that term is defined in Rule
            144 of the 1933 Act, or who ceases to be an “affiliate,” or (B) registered
            under the 1933 Act and all applicable state securities laws and regulations as provided
            in Section 8.2, the Committee, in its discretion and with the advice of counsel, may
            dispense with or authorize the removal of the restrictive legend set forth above or the
            portion thereof which is inapplicable.

            

            
                8.2       
            Registration. In the event that the Company in its sole discretion shall deem
            it necessary or advisable to register, under the 1933 Act or any state securities laws
            or regulations, any shares with respect to which Options have been granted hereunder,
            then the Company shall take such action at its own expense before delivery of the
            certificates representing such shares to an Optionee. In such event, and if the shares
            of Common Stock of the Company shall be listed on any national securities exchange or
            on NASDAQ at the time of the exercise of any Option, the Company shall make prompt
            application at its own expense for the listing on such stock exchange or NASDAQ of the
            shares of Common Stock to be issued.

            

            -11-

            
            
            

            

            ARTICLE 9

            Effective Date

            

            
                    The
            Plan shall be effective as of the Effective Date, and no Options shall be granted
            hereunder prior to said date. Adoption of the Plan shall be approved by the
            shareholders of the Company at the earlier of (i) the annual meeting of the
            shareholders of the Company which immediately follows the date of the first grant or
            award of Options hereunder, or (ii) 12 months after the adoption of the Plan by the
            Board, but in no event earlier than 12 months prior to the adoption of the Plan by the
            Board. Shareholder approval shall be made by a majority of the votes cast at a duly
            held meeting at which a quorum representing a majority of all outstanding voting stock
            is, either in person or by proxy, present and voting on the Plan, or by the written
            consent in lieu of a meeting of the holders of a majority of the outstanding voting
            stock or such greater number of shares of voting stock as may be required by the
            Company’s articles or certificate of incorporation and bylaws and by applicable
            law. Failure to obtain such approval shall render the Plan and any Options granted
            hereunder null and void ab initio.

            

            ARTICLE 10

            Amendment and Termination

            

            
                10.1       
            Amendment and Termination By the Board. Subject to Section 10.2 below, the
            Board shall have the power at any time to add to, amend, modify or repeal any of the
            provisions of the Plan, to suspend the operation of the entire Plan or any of its
            provisions for any period or periods or to terminate the Plan in whole or in part. In
            the event of any such action, the Committee may prepare written procedures which, when
            approved by the Board, shall govern the administration of the Plan resulting from such
            addition, amendment, modification, repeal, suspension or termination.

            

            
                10.2       
            Restrictions on Amendment and Termination. Notwithstanding the provisions of
            Section 10.1 above, the following restrictions shall apply to the Board’s
            authority under Section 10.1 above:

            

            	
                    	
                        
                           
                            (a)       
                        Prohibition Against Adverse Affects on Outstanding Options. No
                        addition, amendment, modification, repeal, suspension or termination shall
                        adversely affect, in any way, the rights of the Optionees who have
                        outstanding Options without the consent of such Optionees;

                    

            

            

            	
                    	
                        
                               
                        (b)        Shareholder
                        Approval Required for Certain Modifications. No modification or
                        amendment of the Plan may be made without the prior approval of the
                        shareholders of the Company if such modification or amendment would cause
                        the applicable portions of the Plan to fail to qualify as an ISO plan
                        pursuant to Code §422, such modification or amendment would materially
                        increase the number of securities which may be issued under the Plan, or
                        such modification or amendment would materially modify the requirements as
                        to eligibility for participation in the Plan. Shareholder approval shall be
                        made by a majority of the votes cast at a duly held meeting

                    

            

            

            -12-

            
            
            

            

            	
                    	
                        at
                        which a quorum representing a majority of all outstanding voting stock is,
                        either in person or by proxy, present and voting, or by the written consent
                        in lieu of a meeting of the holders of a majority of the outstanding voting
                        stock or such greater number of shares of voting stock as may be required
                        by the Company’s articles or certificate of incorporation and bylaws
                        and by applicable law.

                    

            

            

            ARTICLE 11

            Miscellaneous Provisions

            

            
                11.1       
            Application of Funds. The proceeds received by the Company from the sale of
            the Common Stock subject to the Options granted hereunder will be used for general
            corporate purposes.

            

            
                11.2       
            Notices. All notices or other communications by an Optionee to the Committee
            pursuant to or in connection with the Plan shall be deemed to have been duly given when
            received in the form specified by the Committee at the location, or by the person
            designated by the Committee for the receipt thereof.

            

            
                11.3       
            Term of Plan. Subject to the terms of Article 10, the Plan shall terminate
            upon the later of (i) the complete exercise or lapse of the last outstanding Option, or
            (ii) the last date upon which Options may be granted hereunder.

            

            
                11.4       
            Compliance with Rule 16b-3 and Code §162(m). As the Company is a
            privately held corporation which is not subject to the provisions of the 1934 Act or
            the provisions of Code § 162(m), this Plan is not intended to be in compliance
            with the requirements of Rule 16b-3 as promulgated under Section 16 of the 1934 Act or
            with Code §162(m) and applicable regulations promulgated thereunder. If the
            Company should become subject to the 1934 Act and/or Code § 162(m), numerous
            amendments to the Plan and additional shareholder approval will be
            necessary.

            

                11.5
                   Governing Law. The Plan shall be
            governed by and construed in accordance with the laws of the State
            of Georgia.

            

            
                11.6       
            Additional Provisions By Committee. The Option Agreements authorized under the
            Plan may contain such other provisions, including, without limitation, restrictions
            upon the exercise of an Option, as the Committee shall deem advisable.

            

            
                11.7       
            Plan Document Controls. In the event of any conflict between the provisions of
            an Option Agreement and the Plan, the Plan shall control.

            

            
                11.8       
            Gender and Number. Wherever applicable, the masculine pronoun shall include
            the feminine pronoun, and the singular shall include the plural.

            

            -13-

            
            
            

            

            
                11.9       
            Headings. The titles in this Plan are inserted for convenience of reference;
            they constitute no part of the Plan and are not to be considered in the construction
            hereof.

            

            
                11.10       
            Legal References. Any references in this Plan to a provision of law which is,
            subsequent to the Effective Date of this Plan, revised, modified, finalized or
            redesignated, shall automatically be deemed a reference to such revised, modified,
            finalized or redesignated provision of law.

            

            
                11.11       
            No Rights to Employment. Nothing contained in the Plan, or any modification
            thereof, shall be construed to give any individual any rights to employment with the
            Company or any parent or subsidiary corporation of the Company.

            

            
                11.12       
            Unfunded Arrangement. The Plan shall not be funded, and except for reserving a
            sufficient number of authorized shares to the extent required by law to meet the
            requirements of the Plan, the Company shall not be required to establish any special or
            separate fund or to make any other segregation of assets to assure the payment of any
            grant under the Plan.

            

            
                    IN
            WITNESS WHEREOF, the Company has caused this Plan be executed by its duly authorized
            officer, as of the 9th day of September, 2000.

            	
                    	
                    	
                    
	
                    	
                    	
                    
	
                    	S.P.I.
                    DYNAMICS INCORPORATED 
	
                    	
                      
	
                    	By:	
                    _________________________________
	
                    	Title:	
                    _________________________________

            

            ADOPTED BY BOARD
            OF DIRECTORS ON SEPTEMBER 9, 2000

            

            APPROVED BY
            SHAREHOLDERS AS OF.SEPTEMBER 9, 2000

            

            -14-

            
            
            

            FIRST AMENDMENT
            TO THE

            S.P.I. DYNAMICS INCORPORATED

            2000 STOCK INCENTIVE PLAN

            

            
                    This
            FIRST AMENDMENT to the S.P.I. DYNAMICS INCORPORATED 2000 STOCK INCENTIVE PLAN (the
            “Plan”) is made by S.P.I. Dynamics Incorporated (the
            “Company”), effective as of February 9, 2001.

            

            
            WITNESSETH:

            

            
                    WHEREAS,
            the Board of Directors of the Company (the “Board”) maintains the Plan for
            the benefit of its employees, outside directors, consultants and advisors;
            and

            

            
                    WHEREAS,
            the Board desires to amend the Plan to provide for a new default vesting schedule under
            the Plan; and

            

            
                    WHEREAS,
            Article 10 of the Plan allows the Company to amend the Plan at any time;

            

            
                    NOW,
            THEREFORE, the Company hereby amends the Plan as follows:

            

            1.

            

            
                    Section
            6.3 of the Plan shall be amended in its entirety as follows:

            

            
                   
            6.3        Exercisability. Unless otherwise
            specified by the Committee in the Option Agreement, an Option shall first become
            exercisable with respect to such portions of the shares subject to such Option as are
            specified in the schedule set forth hereinbelow:

            

            	
                    	
                        
                                   
                        (a)        Commencing as of the first
                        anniversary of the date the Option is granted, the Optionee shall have the
                        right to exercise the Option with respect to, and to thereby purchase, 25%
                        of the shares subject to such Option. Prior to said date, the Option shall
                        be unexercisable in its entirety.

                    

            

            

            	
                    	
                        
                                   
                        (b)        Commencing as of the date
                        that is three months after the first anniversary of the date the Option is
                        granted, and thereafter commencing as of each date that is three months
                        after the most recent date on which a percentage of the Option previously
                        became exercisable under this subsection, the Optionee shall have the right
                        to exercise the Option with respect to, and to thereby purchase, an
                        additional 6.25% of the shares subject to such Option.

                    

            

            

            	
                    	
                        
                                   
                        (c)        As of the fourth anniversary
                        of the date the Option is granted, the Optionee shall have the right to
                        exercise the Option with respect to, and to thereby purchase, the remainder
                        of the shares subject to such Option.

                    

            

            
            
            

            

            	
                    	
                        
                                   
                        (d)        Notwithstanding subsections
                        (a) through (c) above, any Options previously granted to an Optionee shall
                        become immediately exercisable for 100% of the number of shares subject to
                        the Options upon the Optionee’s becoming Disabled or upon his
                        death.

                    

            

            

            Other than as provided above, if
            an Optionee ceases to be an employee of the Company or a company with ownership related
            to the Company, his rights with regard to all non-exercisable Options shall cease
            immediately.

            

            2.

            

            
                    
            All other provisions of the Plan
            not inconsistent herewith shall remain in full force and effect.

            

            
                    IN
            WITNESS WHEREOF, the Company has caused this First Amendment to the Plan to be executed
            by its duly authorized officer as of the date first above written.

            	
                    	
                    	
                    
	
                    	
                    	
                    
	
                    	S.P.I.
                    DYNAMICS INCORPORATED 
	
                    	
                      
	
                    	By:	
                    _________________________________
	
                    	Name:	
                    _________________________________
	
                    	Title:	
                    _________________________________

            

            ADOPTED BY
            THE BOARD OF DIRECTORS AS OF FEBRUARY ___, 2001

            

            -2-

            
            
            

            

            SECOND AMENDMENT
            TO THE

            S.P.I. DYNAMICS INCORPORATED

            2000 STOCK INCENTIVE PLAN

            

            
                    This
            SECOND AMENDMENT to the S.P.I. DYNAMICS INCORPORATED 2000 STOCK INCENTIVE PLAN (the
            “Plan”) is made by S.P.I. Dynamics Incorporated (the
            “Company”), effective as of July 11, 2003.

            

            
            WITNESSETH:

            

            
                    WHEREAS,
            the Board of Directors of the Company (the “Board”) maintains the Plan for
            the benefit of its employees, outside directors, consultants and advisors;
            and

            

            
                    WHEREAS,
            pursuant to joint written consents of the Directors and Shareholders of the Company,
            dated February 19, 2001 and October 30, 2001, the Board and the Shareholders have
            amended the Plan to increase the number of shares of the Company’s common stock
            available for issuance under the Plan to 2,122,177 shares and then to 2,904,021 shares,
            respectively.

            

            
                    NOW,
            THEREFORE, the Company desires to memorialize said amendments to the P1an as
            follows:

            

            1.

            

            
                    Article
            4 of the Plan shall be amended to reflect that as of February 19, 2001 the Company was
            authorized to issue an aggregate of 2,122,177 shares of Common Stock under the Plan,
            and as of October 30, 2001, the Company was authorized to issue an aggregate of
            2,904,021 shares of Common Stock under the Plan.

            

            2.

            

            
                    All
            other provisions of the Plan not inconsistent herewith shall remain in full force and
            effect.

            

            
                    IN
            WITNESS WHEREOF, the Company has caused this Second Amendment to the Plan to be
            executed by its duly authorized officer as of the date first above written.

            	
                    	
                    	
                    
	
                    	
                    	
                    
	
                    	S.P.I.
                    DYNAMICS INCORPORATED 
	
                    	
                      
	
                    	By:	
                    _________________________________
	
                    	Name:	
                    _________________________________
	
                    	Title:	
                    _________________________________

            

            ADOPTED BY THE
            BOARD OF DIRECTORS AS OF JULY II, 2003

            
            

            

            THIRD AMENDMENT
            TO THE

            S.P.I. DYNAMICS INCORPORATED

            2000 STOCK INCENTIVE PLAN

            

            
                    This
            THIRD AMENDMENT to the S.P.I. DYNAMICS INCORPORATED 2000 STOCK INCENTIVE PLAN (the
            “Plan”) is made by S.P.I. Dynamics Incorporated (the
            “Company”), effective as of May 11, 2004.

            

            
            WITNESSETH:

            

            
                    WHEREAS,
            the Board of Directors of the Company (the “Board”) maintains the Plan for
            the benefit of its employees, outside directors, consultants and advisors;
            and

            

            
                    WHEREAS,
            pursuant to the joint written consent of the Directors and Shareholders of the Company,
            dated on or about May 11, 2004, the Board and the Shareholders have amended the Plan to
            increase the number of shares of the Company’s common stock currently available
            for issuance under the Plan to 4,734,167 shares.

            

            
                    NOW,
            THEREFORE, the Company desires to memorialize said amendment to the Plan as
            follows:

            

            1.

            

            
                    Article
            4 of the Plan shall be amended to reflect that as of May 11, 2004 a total of 5,006,544
            shares of Common Stock are issued or issuable under the Plan, including 272,377 shares
            of Common Stock that have been issued pursuant to the exercise of options granted prior
            to the date hereof and 4,734,167 shares that are issuable upon the exercise of
            outstanding options or available for the grant of additional options under the
            Plan.

            

            2.

            

            
                    All
            other provisions of the Plan not inconsistent herewith shall remain in full force and
            effect.

            

            
                    IN
            WITNESS WHEREOF, the Company has caused this Third Amendment to the Plan to be executed
            by its duly authorized officer as of the date first above written.

            	
                    	
                    	
                    
	
                    	
                    	
                    
	
                    	S.P.I.
                    DYNAMICS INCORPORATED 
	
                    	
                      
	
                    	By:	
                    _________________________________
	
                    	Name:	
                    _________________________________
	
                    	Title:	
                    _________________________________

            

            ADOPTED BY THE
            BOARD OF DIRECTORS AS OF MAY 11, 2004

            
            

            

            FOURTH AMENDMENT
            TO THE

            S.P.I. DYNAMICS INCORPORATED

            2000 STOCK INCENTIVE PLAN

            

            
                    This
            FOURTH AMENDMENT to the S.P.I. DYNAMICS INCORPORATED 2000 STOCK INCENTIVE PLAN (the
            “Plan.”) is made by S.P.I. Dynamics Incorporated (the
            “Company”), effective as of July 13, 2005.

            

            
            WITNESSETH:

            

            
                    WHEREAS,
            the Board of Directors of the Company (the “Board”) maintains the Plan for
            the benefit of its employees, outside directors, consultants and advisors;
            and

            

            
                    WHEREAS,
            pursuant to the joint written consent of the Directors and Shareholders of the Company,
            dated on or about July 13, 2005, the Board and the Shareholders have amended the Plan
            to increase the number of shares of the Company’s common stock currently
            available for issuance under the Plan to 4,794,226 shares.

            

            
                    NOW,
            THEREFORE, the Company desires to memorialize said amendment to the Plan as
            follows:

            

            1.

            

            
                    Article
            4 of the Plan shall be amended to reflect that as of July 13, 2005 a total of 5,391,544
            shares of Common Stock are issued or issuable under the Plan, including 597,318 shares
            of Common Stock that have been issued pursuant to the exercise of options granted prior
            to the date hereof and 4,794,226 shares that are issuable upon the exercise of
            outstanding options or available for the grant of additional options under the
            Plan.

            

            2.

            

            
                    All
            other provisions of the Plan not inconsistent herewith shall remain in full force and
            effect.

            

            
                    IN
            WITNESS WHEREOF, the Company has caused this Fourth Amendment to the Plan to be
            executed by its duly authorized officer as of the date first above written.

            	
                    	
                    	
                    
	
                    	
                    	
                    
	
                    	S.P.I.
                    DYNAMICS INCORPORATED 
	
                    	
                      
	
                    	By:	
                    _________________________________
	
                    	Name:	
                    _________________________________
	
                    	Title:	
                    _________________________________

            

            ADOPTED BY THE
            BOARD OF DIRECTORS AND SHAREHOLDERS AS OF MAY 11, 2004

            
            

            

            FIFTH AMENDMENT
            TO THE

            S.P.I. DYNAMICS INCORPORATED

            2000 STOCK INCENTIVE PLAN

            

            
                    This
            FIFTH AMENDMENT to the S.P.I. DYNAMICS INCORPORATED 2000 STOCK INCENTIVE PLAN (the
            “Plan”) is made by S.P.I. Dynamics Incorporated (the
            “Company”), effective as of July 28, 2006.

            

            
            WITNESSETH:

            

            
                    WHEREAS,
            the Board of Directors of the Company (the “Board”) maintains the Plan for
            the benefit of its employees, outside directors, consultants and advisors;
            and

            

            
                    WHEREAS,
            pursuant to the resolution of the Board approved at the meeting held on July 27, 2006
            and the written consent of the Shareholders of the Company, dated on or about July 28,
            2006, the Board and the Shareholders have amended the Plan to increase the number of
            shares of the Company’s common stock issued or currently available for issuance
            under the Plan to 6,391,544 shares.

            

            
                    NOW,
            THEREFORE, the Company desires to memorialize said amendment to the Plan as
            follows:

            

            1.

            

            
                    Article
            4 of the Plan shall be amended to reflect that as of July 28, 2006 a total of 6,391,544
            shares of Common Stock are issued or issuable under the Plan, including 608,880 shares
            of Common Stock that have been issued pursuant to the exercise of options granted prior
            to the date hereof and 5,782,664 shares that are issuable upon the exercise of
            outstanding options or available for the grant of additional options under the
            Plan.

            

            2.

            

            
                    All
            other provisions of the Plan not inconsistent herewith shall remain in full force and
            effect.

            

            
                    IN
            WITNESS WHEREOF, the Company has caused this Fourth Amendment to the Plan to be
            executed by its duly authorized officer as of the date first above written.

            	
                    	
                    	
                    
	
                    	
                    	
                    
	
                    	S.P.I.
                    DYNAMICS INCORPORATED 
	
                    	
                      
	
                    	By:	
                    _________________________________
	
                    	Name:	
                    _________________________________
	
                    	Title:	
                    _________________________________

            

            ADOPTED BY THE
            BOARD OF DIRECTORS AND SHAREHOLDERS AS OF JULY 28, 2006.

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