Document:

Exhibit 10.18

FIRST AMENDMENT

OF THE

DADE BEHRING EMPLOYEE STOCK PURCHASE PLAN

(As Adopted November 2, 2002)

WHEREAS, Dade
Behring Holdings Inc. (the “Company”) maintains the Dade Behring Employee Stock
Purchase Plan as adopted by the Company on November 7, 2002 and approved by the
shareholders on May 28, 2003 (the “Plan”); and

WHEREAS, the
Company desires to amend the Plan to provide that the anti-dilution provisions
of the Plan be made mandatory rather than discretionary to avoid unfavorable
accounting treatment;

NOW, THEREFORE, by
virtue and in exercise of the power reserved to the Company by Section 13.7 of
the Plan and pursuant to the authority delegated to the undersigned officer of
the Company, the Plan be and is hereby amended in the following particular:

Effective
the date of adoption of this amendment by the Board of Directors of the
Company, Section 9 of the Plan is amended to read as follows:

Section 9  Adjustments Upon Changes in Capitalization,
Dissolution, Liquidation, Merger or Asset Sale.

9.1.            Subject to any required action by the
shareholders of the Company, the right to purchase Shares of Common Stock
covered by a current Offering Period and the number of Shares which have been
authorized for issuance under the Plan for any future Offering Period, the
maximum number of Shares each Participant may purchase each Offering Period
(pursuant to Section 5.3 hereof), as well as the price per Share and the number
of Shares covered by each right under the Plan which have not yet been
purchased shall be equitably adjusted for any increase or decrease in the
number of issued Shares resulting from a stock split, reverse stock split,
stock dividend, extraordinary cash dividend, combination or reclassification of
the Common Stock, or recapitalization, reorganization, consolidation, split-up,
spin-off, or any other increase or decrease in the number of Shares effected
without receipt of consideration by the Company.  Except as expressly provided otherwise by the
Committee, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of Shares.

9.2.            Without limitation on the preceding
provisions, in the event of any corporate transaction, the Committee shall make
such adjustment it deems appropriate to prevent dilution or enlargement of
rights in the number and class of Shares which may be delivered under Section
12, in the number, class of or price of Shares available for purchase under the
Plan and in the number of Shares which a Participant is entitled to purchase
and any other adjustments it deems appropriate. 
Without limiting the Committee’s authority under this Plan, in the event
of any transaction, the Committee may elect to have the options hereunder

assumed or such options substituted by a successor entity, to terminate
all outstanding options either prior to their expiration or upon completion of
the purchase of Shares on the next Purchase Date, to shorten the Offering
Period by setting a new Purchase Date, or to take such other action deemed
appropriate by the Committee.

* * *

IN WITNESS
WHEREOF, the Company has caused this amendment to be executed on its behalf by
its duly authorized officer this 26th day
of October 2006.

 

	
   

  	
  DADE BEHRING HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  /S/

  	
  Louise S.
  Pearson

  
	
   

  	
   

  	
  Vice President

  

 

 2Ex. 4.1

AMENDMENT NO. 2 TO THE RIGHTS
AGREEMENT

Amendment No. 2 to
the Rights Agreement, dated as of October 2, 2006 (the “Amendment”), by
and between Janus Capital Group Inc., a Delaware corporation (the “Company”)
(formerly known as Stilwell Financial Inc., a Delaware corporation), and Wells
Fargo Bank, N.A., a national banking association organized and existing under
the laws of the United States of America (“Wells Fargo”), as successor Rights
Agent.

WHEREAS,
on June 14, 2000, the Company and UMB Bank, N.A. entered into a Rights
Agreement, as amended on February 23, 2005 (the “Agreement”); and

WHEREAS,
pursuant to Section 21 of the Agreement, the Company desires to amend the
Agreement to appoint Wells Fargo as successor Rights Agent.

NOW,
THEREFORE, in consideration of the premises and mutual
agreements herein set forth, and intending to be legally bound hereby, the
parties hereto agree that the Agreement shall be and hereby is amended in the
following manner:

Section 1.  Appointment.  The Company hereby appoints Wells Fargo to
act as Rights Agent for the Company and the holders of the Rights in accordance
with the terms and conditions of the Agreement, and Wells Fargo hereby accepts
such appointment.  The term “Rights Agent”
as used in the Agreement shall be deemed to refer to Wells Fargo as of the date
of this Amendment.

Section 2.  “Agreement” as Amended.  The term “Agreement” as used in the Agreement
shall be deemed to refer to the Agreement as amended hereby, and all references
to the Agreement shall be deemed to include this Amendment.  Except as amended hereby, the Agreement and
all schedules or exhibits thereto remain in full force and effect.

Section 3.  Effectiveness.  This Amendment shall be effective as of the
date first written above, and except as set forth herein, the Agreement shall
remain in full force and effect and otherwise shall be unaffected hereby.

Section 4.  Governing Law.   This Amendment shall be governed by and
construed in accordance with the laws of the State of Delaware applicable to
contracts to be made and performed entirely within such state.

Section 5.  Counterparts.  This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

IN
WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and attested as of the date first written above.

	
  

  	
  JANUS CAPITAL GROUP INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Gregory A. Frost_

  
	
   

  	
   

  	
  Name: Gregory A. Frost

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Steven J. Hoffman

  
	
   

  	
   

  	
  Name: Steven J. Hoffman

  
	
   

  	
   

  	
  Title: Assistant Vice President

  

 

 2Ex. 10.1

JANUS CAPITAL GROUP INC.

 

 

 

1998 Long Term Incentive Stock Plan

(as amended and restated effective as of May 12, 2004)

Table of Contents

	
  Article

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1. History,
  Effective Date, Objectives and Duration

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  2. Definitions

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  3.
  Administration

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  4. Shares
  Subject to the Plan and Maximum Awards

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  5. Eligibility
  and General Conditions of Awards

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  6. Stock Options

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  7. Stock
  Appreciation Rights and Limited Stock Appreciation Rights

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  8. Restricted
  Shares

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  9. Performance
  Units and Performance Shares

  	
   

  	
  21

  
	
   

  	
   

  	
   

  
	
  10. Bonus Shares

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  11. Beneficiary
  Designation

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  12. Deferrals

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  13. Rights of
  Employees/Directors/Consultants

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  14. Change of
  Control

  	
   

  	
  23

  
	
   

  	
   

  	
   

  
	
  15. Amendment,
  Modification, and Termination

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  16. Withholding

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  17. Successors

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  18. Additional
  Provisions

  	
   

  	
  26

  

 

Janus Capital Group Inc.

1998 Long Term Incentive Stock
Plan

(AS AMENDED AND RESTATED EFFECTIVE AS OF MAY 12,
2004)

Article
1.   History, Effective Date, Objectives
and Duration

1.1                 History.  Janus Capital Group Inc., a Delaware
corporation (the “Company”), has established the Janus Capital Group Inc. 1998
Long Term Incentive Stock Plan, as set forth herein, and as the same may be
amended from time to time (the “Plan”). 
The Plan was originally adopted by the Board of Directors of the Company
(the “Board”) and approved by the sole stockholder of the Company, Kansas City
Southern Industries, Inc. (“KCSI”) and by the stockholders of KCSI on July 15,
1998, to be effective as of June 1, 1998 (the “Effective Date”).  Effective
August 11, 1999, Section 2.14 of the Plan was amended and the Plan was renamed;
effective June 15, 2000, Sections 2.51, 5.7 and 15.1 were amended; effective
January 18, 2001, Sections 2.42, 2.51 and 5.6(d) were amended; effective May 9,
2001, Section 5.6(d) was amended; effective March 12, 2003, Sections 1.1 and
18.7 were amended; and effective May 12, 2004, Sections 2.2, 2.5, 2.6, 2.16,
2.34, 2.42, 2.50, 3.1, 4.1, 8.3, 8.4, 8.5 and 13.3 were amended.  Each such time the Plan was amended, the Plan
has been restated as so amended, as set forth herein.

1.2                 Objectives of the Plan.  The Plan is intended to allow employees,
directors and consultants of the Company and its Subsidiaries to acquire or
increase equity ownership in the Company, thereby strengthening their
commitment to the success of the Company and stimulating their efforts on
behalf of the Company, and to assist the Company and its Subsidiaries in
attracting new employees, directors and consultants and retaining existing
employees, directors and consultants. The Plan also is intended to optimize the
profitability and growth of the Company through incentives which are consistent
with the Company’s goals; to provide employees, directors and consultants with
an incentive for excellence in individual performance; and to promote teamwork
among employees, directors and consultants.

1.3                 Duration of the Plan.  The Plan shall commence on the Effective Date
and shall remain in effect, subject to the right of the Board to amend or
terminate the Plan at any time pursuant to Article 15 hereof, until all Shares
subject to it shall have been purchased or acquired according to the Plan’s
provisions.  However, in no event may an
Incentive Stock Option be granted under the Plan on or after the date 10 years
following the earlier of (i) the date the Plan was adopted and (ii) the date
the Plan was approved by the stockholders of the Company.

Article 2.   Definitions

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

2.1                 “Article” means an Article of the Plan.

2.2                 “Award” means Options (including Incentive
Stock Options), Restricted Shares (awarded as Shares or Share Units), Bonus Shares
(awarded as Shares or Share Units), stock

appreciation rights (SARs),
limited stock appreciation rights (LSARs), Performance Units, Performance
Shares or Dividend Equivalents granted under the Plan.

2.3                 “Award Agreement” means the written agreement
by which an Award shall be evidenced.

2.4                 “Board” has the meaning set forth in Section
1.1.

2.5                 “Bonus Shares” means Shares or Share Units
that are awarded to a Grantee without cost and without restrictions in
recognition of past performance (whether determined by reference to another
employee benefit plan of the Company or otherwise) or as an incentive to become
an employee, director or consultant of the Company or a Subsidiary.

2.6                 “Cause” means, unless otherwise defined in an
Award Agreement,

(a)     before
the occurrence of a Change of Control, any one or more of the following, as
determined by the Committee:

(1)     a Grantee’s commission of a crime which, in the judgment of the
Committee, resulted or is likely to 

result in damage or injury to
the Company or a Subsidiary;

(2)     the material violation by the Grantee of written policies of the
Company or a Subsidiary;

(3)     the habitual neglect or failure by the Grantee in the
performance of his or her duties to the Company 

or a Subsidiary (but only if
such neglect or failure is not remedied within a reasonable remedial period
after Grantee’s 

receipt of written notice from
the Company which describes such neglect or failure in reasonable detail and
specifies the 

remedial period); or

(4)     action or inaction by the Grantee in connection with his or her
duties to the Company or a 

Subsidiary resulting, in the
judgment of the Committee, in material injury to the Company or a Subsidiary;
and

(b)     from
and after the occurrence of a Change of Control, the occurrence of any one or
more of the following, as determined in the good faith and reasonable judgment
of the Committee:

(1)     Grantee’s conviction for committing an act of fraud,
embezzlement, theft, or any other act 

constituting a felony involving
moral turpitude or causing material damage or injury, financial or otherwise,
to the 

Company;

(2)     a demonstrably willful and deliberate act or failure to act
which is committed in bad faith, without 

reasonable belief that such action
or inaction is in the best

 2
 

interests of the
Company, which causes material damage or injury, financial or otherwise, to the
Company (but only if 

such act or
inaction is not remedied within 15 business days of Grantee’s receipt of
written notice from the Company 

which describes
the act or inaction in reasonable detail); or

(3)     the consistent gross neglect of duties or consistent wanton
negligence by the Grantee in the 

performance of the Grantee’s
duties (but only if such neglect or negligence is not remedied within a
reasonable remedial 

period after Grantee’s receipt
of written notice from the Company which describes such neglect or negligence
in 

reasonable detail and specifies
the remedial period).

2.7     “Change of Control” means, unless otherwise defined in an
Award Agreement, any one or more of the following:

(a)     the
acquisition or holding by any person, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the 1934 Act), other than by the Company
or any Subsidiary or any employee benefit plan of the Company or a Subsidiary
(and other than by KCSI prior to the Spin-off Distribution), of beneficial
ownership (within the meaning of Rule 13d-3 under the 1934 Act) of 20% or more
of the then-outstanding Common Stock or the then-outstanding Voting Power of
the Company; provided, however, that no Change
of Control shall occur solely by reason of any such acquisition by a
corporation with respect to which, after such acquisition, more than 60% of
both the then-outstanding common shares and the then-outstanding Voting Power of
such corporation are then beneficially owned, directly or indirectly, by the
persons who were the bene­ficial owners of the then-outstanding Common
Stock and Voting Power of the Company immediately before such acquisition, in
substantially the same proportions as their respective ownership, immediately
before such acquisition, of the then-outstanding Common Stock and Voting Power
of the Company; or

(b)     individuals
who, as of the date of the Spin-off Distribution, constitute the Board (the “Incum­bent
Board”) cease for any reason to constitute at least 75% of the Board; provided that any individual who becomes a director after
the Effective Date whose election or nomi­nation for election by the Company’s
stockholders was approved by at least 75% of the Incumbent Board (other than an
election or nomination of an individual whose initial assumption of office is
in connection with an actual or threatened “election contest” relating to the
election of the directors of the Company (as such terms are used in Rule 14a-11
under the 1934 Act) or “tender offer” (as such term is used in Section 14(d) of
the 1934 Act) or a proposed Extraordinary Transaction (as defined below)) shall
be deemed to be a member of the Incumbent Board; or

(c)     approval
by the stockholders of the Company of any one or more of the following:

(1)     a merger, reorganiza­tion, consolidation or similar transaction
(any of the foregoing, an “Extraordinary Transaction”) with respect to which
persons who were the respective beneficial owners of the then-outstanding
Common Stock and Voting Power of the Company immediately before such
Extraordinary Transaction would not, if such Extraordinary Transaction

 3
 

were to be consummated
immediately after such stockholder approval (but otherwise in accordance with
the terms presented in writing to the stockholders of the Company for their
approval), beneficially own, directly or indirectly, more than 60% of both the
then-outstanding common shares and the then-outstanding Voting Power of the
corporation resulting from such Extraordinary Transaction, in substantially the
same proportions as their respective ownership, immediately before such
Extraordinary Transaction, of the then-outstanding Common Stock and Voting
Power of the Company,

(2)     a liquidation or dissolution of the Company, or

(3)     the sale or other disposition of all or substantially all of the
assets of the Company in one transaction or a series of related transactions.

2.8                 “Change of Control Value” means the Fair
Market Value of a Share on the date of a Change of Control.

2.9                 “Code” means the Internal Revenue Code of
1986, as amended from time to time, and regulations and rulings
thereunder.  References to a particular
section of the Code include references to successor provisions of the Code or
any successor code

2.10               “Committee,” “Plan Committee” and “Management
Committee” have the meanings set forth in Article 3.

2.11               “Common Stock” means the common stock, $.01 par
value, of the Company.

2.12                “Company” has the meaning set forth in Section
1.1.

2.13               “Covered Employee” means a Grantee who, as of
the date that the value of an Award is recognizable as taxable income, is one
of the group of “covered employees,” within the meaning of Code Section 162(m).

2.14               “Disability” means, unless otherwise defined in
an Award Agreement, for purposes of the exercise of an Incentive Stock Option
after Termination of Affiliation, a disability within the meaning of Section
22(e)(3) of the Code, and for all other purposes, means total disability as
determined for purposes of the long term disability plan of Company or any
Subsidiary or other employer of the Grantee and disability shall be deemed to
occur for purposes of the Plan on the date such determination of disability is
made.

2.15               “Disqualifying Disposition” has the meaning set
forth in Section 6.4.

2.16               “Dividend Equivalents” has the meaning set
forth in Section 13.3.

2.17               “Effective Date” has the meaning set forth in
Section 1.1.

 4
 

2.18               “Eligible Person” means (i) any employee
(including any officer) of the Company or any Subsidiary, including any such
employee who is on an approved leave of absence, layoff, or has been subject to
a disability which does not qualify as a Disability, (ii) any director of
the Company or any Subsidiary and (iii) any person performing services for
the Company or a Subsidiary in the capacity of a consultant.  Solely for purposes of granting KCSI
Substitute Options (as defined in Section 6.3), Eligible Person shall also
include any person who holds a KCSI Option (as defined in Section 6.3) as of
the date that a KCSI Substitute Option is granted.

2.19               “Exchange Act” means the Securities Exchange
Act of 1934, as amended from time to time. 
References to a particular section of the Exchange Act include
references to successor provisions.

2.20               “Extraordinary Transaction” has the meaning set
forth in Section 2.7.

2.21               “Fair Market Value” means (A) with respect to
any property other than Shares, the fair market value of such property
determined by such methods or procedures as shall be established from time to
time by the Committee, and (B) with respect to Shares, unless otherwise
determined by the Committee, as of any date, (i) the average of the high and
low trading prices on the date of determination on the New York Stock Exchange
(or, if no sale of Shares was reported for such date, on the next preceding
date on which a sale of Shares was reported); (ii) if the Shares are not listed
on the New York Stock Exchange, the average of the high and low trading prices
of the Shares on such other national exchange on which the Shares are
principally traded or as reported by the National Market System, or similar
organization, or if no such quotations are available, the average of the high
bid and low asked quotations in the over-the-counter market as reported by the
National Quotation Bureau Incorporated or similar organizations; or (iii) in
the event that there shall be no public market for the Shares, the fair market
value of the Shares as determined by the Committee.

2.22               “Freestanding SAR” means an SAR that is granted
independently of any other Award.

2.23               “Good Reason” means, unless otherwise defined
in an Award Agreement, the occurrence after a Change of Control, without a
Grantee’s prior written consent, of any one or more of the following:

(a)     the
assignment to the Grantee of any duties which result in a material adverse
change in the Grantee’s position (including status, offices, titles, and
reporting require­ments), authority, duties, or other responsibilities with the
Company, or any other action of the Company which results in a material adverse
change in such position, authority, duties, or responsibilities, other than an
insubstantial and inadvertent action which is remedied by the Company promptly
after receipt of notice thereof given by the Grantee,

(b)     any
relocation of the Grantee of more than 40 miles from the place where the
Grantee was located at the time of the Change of Control, or

 5
 

(c)     a
material reduction or elimination of any component of the Grantee’s rate of compensa­tion,
including (x) base salary, (y) any incentive payment or (z) benefits or
prerequisites which the Grantee was receiving immediately prior to a Change of
Control.

2.24               “Grant Date” has the meaning set forth in Section 5.2.

2.25               “Grantee” means an individual who has been granted an
Award.

2.26               “Incentive Stock Option” means an option granted under
Article 6 of the Plan that is intended to meet the requirements of Section 422
of the Code or any successor provisions thereto.

2.27               “including” or “includes” means “including, without
limita­tion,” or “includes, without limitation,” respectively.

2.28               “LSAR” means a limited stock appreciation right.

2.29               “Mature Shares” means Shares for which the holder
thereof has good title, free and clear of all liens and encumbrances, and which
such holder either (i) has held for at least six months or (ii) has purchased
on the open market.

2.30               “Minimum Consideration” means $.01 per Share or such
other amount that is from time to time considered to be capital for purposes of
Section 154 of the Delaware General Corporation Law.

2.31               “Option” means an option granted under Article 6 of
the Plan.

2.32               “Option Price” means the price at which a Share may be
purchased by a Grantee pursuant to an Option.

2.33               “Option Term” means the period beginning on the Grant
Date of an Option and ending on the expiration date of such Option, as
specified in the Award Agreement for such Option and as may, consistent with
the provisions of the Plan, be extended from time to time by the Committee
prior to the expiration date of such Option then in effect.

2.34               “Outside Director” means a member of the Board who is
not an employee of the Company or any Subsidiary and who meets the other
requirements to be an outside director (as that term is defined for purposes of
the regulations under Code section 162(m)).

2.35               “Performance-Based Exception” means the
performance-based exception from the tax deductibility limitations of Code
Section 162(m).

2.36               “Performance Period” has the meaning set forth in
Section 9.2.

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2.37               “Performance Share” or “Performance Unit” has the
meaning set forth in Article 9.

2.38               “Period of Restriction” means the period during
which the transfer of Restricted Shares is limited in some way (the length of
the period being based on the passage of time, the achievement of performance
goals, or upon the occurrence of other events as determined by the Committee),
and the Shares are subject to a substantial risk of forfeiture, as provided in
Article 8.

2.39               “Person” shall have the meaning ascribed to
such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and
14(d) thereof, including a “group” as defined in Section 13(d) thereof.

2.40               “Plan” has the meaning set forth in Section
1.1.

2.41               “Required Withholding” has the meaning set
forth in Article 16.

2.42               “Restricted Shares” means Shares or Share Units
that are subject to forfeiture if the Grantee does not satisfy the conditions
specified in the Award Agreement applicable to such Shares or Share Units.

2.43               “Retirement” means, for any Grantee who is a
director of the Company or an employee, Termination of Affiliation by the
Grantee upon either (i) having both attained age fifty-five (55) and
completed at least ten (10) years of service with the Company or a Subsidiary
or a Consolidated Subsidiary, including any years of service such employee may
have had with KCSI or (ii) meeting such other requirements as may be
specified by the Committee.

2.44               “Rule 16b-3” means Rule 16b-3
promulgated by the SEC under the Exchange Act, as amended from time to time,
together with any successor rule, as in effect from time to time.

2.45               “SAR” means a stock appreciation right.

2.46               “SEC” means the United States Securities and
Exchange Commission, or any successor thereto.

2.47               “Section” means, unless the context otherwise
requires, a Section of the Plan.

2.48               “Section 16 Person” means a person who is
subject to potential liability under Section 16(b) of the 1934 Act with
respect to transactions involving equity securities of the Company.

2.49               “Share” means a share of Common Stock.

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2.50               “Share Unit” means a bookkeeping entry
representing the equivalent of one share of Common Stock that is payable in the
form of Common Stock, cash or any combination of the foregoing.

2.51               “Spin-off Distribution” means the distribution
by KCSI of at least 80% of the outstanding Shares, as a result of which the
Company ceases to be a subsidiary of KCSI.

2.52               “Strike Price” of any SAR shall equal, for any
Tandem SAR (whether such Tandem SAR is granted at the same time as or after the
grant of the related Option), the Option Price of such Option, or for any other
SAR, 100% of the Fair Market Value of a Share on the Grant Date of such SAR; provided that the Committee may specify a
higher Strike Price in the Award Agreement.

2.53               “Subsidiary” means, for purposes of grants of
Incentive Stock Options, a corporation as defined in Section 424(f) of the
Code (with the Company being treated as the employer corporation for purposes
of this definition) and, for all other purposes, a United States or foreign
corporation or limited liability company, partnership or other similar entity
with respect to which the Company owns, directly or indirectly, 50% (or such
lesser percentage as the Committee may specify, which percentage may be changed
from time to time and may be different for different entities) or more of the
Voting Power of such corporation, limited liability company, partnership or
other similar entity and “Consolidated Subsidiary” means a Subsidiary that is
consolidated with the Company for financial reporting purposes.

2.54               “Tandem SAR” means an SAR that is granted in
connection with a related Option, the exercise of which shall require
cancellation of the right to purchase a Share under the related Option (and
when a Share is purchased under the related Option, the Tandem SAR shall
similarly be canceled).

2.55               “Termination of Affiliation” occurs on the
first day on which an individual is for any reason no longer providing services
to the Company or any Subsidiary in the capacity of an employee, director or
consultant, or with respect to an individual who is an employee or director of,
or consultant to, a corporation which is a Subsidiary, the first day on which
such corporation ceases to be a Subsidiary.

2.56               “10% Owner” means a person who owns capital
stock (including stock treated as owned under Section 424(d) of the Code)
possessing more than 10% of the total combined voting power of all classes of
capital stock of the Company or any Subsidiary.

2.57               “Voting Power” means the combined voting power
of the then-outstanding securities of a corporation entitled to vote generally
in the election of directors.

 

 8

Article
3.   Administration

3.1                                           Committee

(a)  Subject
to Article 15, and to Section 3.2, the Plan shall be administered by the Board,
or a committee appointed by the Board to administer the Plan (“Plan Committee”).  To the extent the Board considers it desirable
to comply with or qualify under Rule 16b-3 or meet the Performance-Based
Exception, the Plan Committee shall consist of two or more directors of the
Company, all of whom qualify as Outside Direc­tors and “non-employee directors”
within the meaning of Rule 16b-3. The number of members of the Plan
Committee shall from time to time be increased or decreased, and shall be
subject to such conditions, in each case as the Board deems appropriate to
permit transactions in Shares pursuant to the Plan to satisfy such conditions
of Rule 16b-3 and the Performance-Based Exception as then in effect.

(b) The Board or the Plan Committee may appoint and delegate to another
committee (“Management Committee”) any or all of the authority of the Board or
the Plan Committee, as applicable, with respect to Awards to Grantees other
than Grantees who are Section 16 Persons at the time any such delegated
authority is exercised. With respect to Awards that are intended to meet the
Performance-Based Exception and that are made to a Grantee who is expected to
be a Covered Employee, such delegation shall not include any authority, which
if exercised by the Management Committee rather than by the Plan Committee,
would cause the Grantee’s Award to fail to meet the Performance-Based Exception.

(c)  Any references herein to “Committee” are references to the Board,
or the Plan Committee or the Management Committee, as applicable.

3.2                                           Powers of Committee

Subject to the express
provisions of the Plan, the Committee has full and final authority and sole
discretion as follows:

(a)  to determine when, to whom and in what types and amounts Awards
should be granted and the terms and conditions applicable to each Award,
including the benefit payable under any SAR, Performance Unit or Performance
Share, and whether or not specific Awards shall be granted in connection with
other specific Awards, and if so whether they shall be exercisable cumulatively
with, or alternatively to, such other specific Awards;

(b) to determine the amount, if any, that a Grantee shall pay for
Restricted Shares, whether to permit or require the payment of cash dividends
thereon to be deferred and the terms related thereto, when Restricted Shares
(including Restricted Shares acquired upon the exercise of an Option) shall be forfeited
and whether such shares shall be held in escrow;

(c)  to construe and interpret the Plan and to make all determinations
necessary or advisable for the administration of the Plan;

 9
 

(d) to make, amend, and rescind rules relating to the Plan, including
rules with respect to the exercisability and nonforfeitability of Awards upon
the Termination of Affiliation of a Grantee;

(e)  to determine the terms and conditions of all Award Agreements
(which need not be identical) and, with the consent of the Grantee, to amend
any such Award Agreement at any time, among other things, to permit transfers
of such Awards to the extent permitted by the Plan; provided
that the consent of the Grantee shall not be required for any amendment which
(i) does not adversely affect the rights of the Grantee, or (ii) is necessary
or ad­visable (as determined by the Com­mittee) to carry out the purpose of the
Award as a result of any new or change in existing applicable law;

(f)  to cancel, with the consent of the Grantee, outstanding Awards and
to grant new Awards in substitution therefore;

(g) to accelerate the exercisability (including exercisability within a
period of less than six months after the Grant Date) of, and to accelerate or
waive any or all of the terms and condi­tions applicable to, any Award or any
group of Awards for any reason and at any time, including in connection with a
Termination of Affiliation;

(h) subject to Sections 1.3 and 5.3, to extend the time during which any
Award or group of Awards may be exercised;

(i)   to make
such adjustments or modifications to Awards to Grantees working outside the
United States as are advisable to fulfill the purposes of the Plan or to comply
with applicable local law;

(j)   to impose such additional terms and conditions upon the grant,
exercise or retention of Awards as the Committee may, before or concurrently
with the grant thereof, deem appropriate, including limiting the percentage of
Awards which may from time to time be exercised by a Grantee; and

(k)  to take any other action with respect to any matters relating to
the Plan for which it is responsible.

All determinations on all matters relating to the Plan or any Award
Agreement may be made in the sole and absolute discretion of the Committee, and
all such determinations of the Committee shall be final, conclusive and binding
on all Persons.  No member of the
Committee shall be liable for any action or determination made with respect to
the Plan or any Award.

 10
 

Article 4.   Shares Subject to
the Plan and Maximum Awards

4.1                 Number of
Shares Available for Grants.  Subject
to adjustment as provided in Section 4.2, the number of Shares hereby reserved
for issuance under the Plan shall be 30,000,000, and the number of Shares for
which Awards (other than KCSI Substitute Options, as defined in Section 6.3)
may be granted to any Grantee on any Grant Date, when aggregated with the
number of Shares for which Awards (other than KCSI Substitute Options) have
previously been granted to such Grantee in the same calendar year, shall not
exceed one percent (1%) of the total Shares outstanding as of such Grant Date;
provided, however, that the total number of Shares for which Awards (other than
KCSI Substitute Options) may be granted to any Grantee in any calendar year
shall not exceed 2,000,000. For purposes of determining the maximum for a
Grantee under the preceding sentence, any award of Shares that the Grantee
receives under the Company’s Employment Inducement Award Plan shall be treated
as if it were an Award of Shares under this Plan.  If any Shares subject to an Award granted
hereunder are forfeited or such Award otherwise terminates without the issuance
of such Shares or of other consider­ation in lieu of such Shares, the Shares
subject to such Award, to the extent of any such forfeiture or termination
shall again be available for grant under the Plan.  If any Shares (whether subject to or received
pursuant to an Award granted hereunder, purchased on the open market, or
otherwise obtained) are withheld, applied as payment, or sold pursuant to
procedures approved by the Committee and the proceeds thereof applied as
payment in connection with the exercise of an Award or the withholding of taxes
related thereto, such Shares, to the extent of any such withholding or payment,
shall again be available or shall increase the number of Shares available, as
applicable, for grant under the Plan. 
The Committee may from time to time determine the appropriate
methodology for calculating the number of Shares (i) issued pursuant to the
Plan, and (ii) granted to any Grantee pursuant to the Plan.  Shares issued pursuant to the Plan may be
treasury Shares or newly-issued Shares.

4.2                 Adjustments in Authorized Shares.  In the event that the Committee determines
that any dividend or other distribution (whether in the form of cash, Shares,
other securities, or other property), recapitalization, stock split, reverse
stock split, subdivision, consolidation or reduction of capital,
reorganization, merger, scheme of arrangement, split-up, spin-off or
combination involving the Company or repurchase or exchange of Shares or other
rights to purchase Shares or other securities of the Company, or other similar
corporate transaction or event that occurs at any time after the Spin-off
Distribution affects the Shares such that any adjustment is determined by the
Committee to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan,
then the Committee shall, in such manner as it may deem equitable, adjust any
or all of (i) the number and type of Shares (or other securities or property)
with respect to which Awards may be granted, (ii) the number and type of Shares
(or other securities or property) subject to outstanding Awards, and (iii) the
grant or exercise price with respect to any Award or, if deemed appropriate,
make provision for a cash payment to the holder of an outstanding Award or the
substitution of other property for Shares subject to an outstanding Award; provided, in each case that with respect
to Awards of Incentive Stock Options no such adjustment shall be authorized to
the extent that such adjustment would cause the Plan to violate Section
422(b)(1) of the Code or any successor provision thereto;

 11
 

and provided further, that the number of Shares subject to any
Award denominated in Shares shall always be a whole number.

Article 5.   Eligibility and
General Conditions of Awards

5.1                 Eligibility. 
The Committee may grant Awards to any Eligible Person, whether or not he
or she has previously received an Award.

5.2                 Grant Date. 
The Grant Date of an Award shall be the date on which the Committee
grants the Award or such later date as specified by the Committee.

5.3                 Maximum Term. 
The Option Term or other period during which an Award may be outstanding
shall under no circumstances extend more than 10 years after the Grant
Date, and shall be subject to earlier termination as herein provided; provided, however, that any deferral of a
cash payment or of the delivery of Shares that is permitted or required by the
Committee pursuant to Article 12 may, if so permitted or required by the
Committee, extend more than 10 years after the Grant Date of the Award to which
the deferral relates.

5.4                 Award Agreement.  To the extent not set forth in the Plan, the
terms and conditions of each Award (which need not be the same for each grant
or for each Grantee) shall be set forth in an Award Agreement.

5.5                 Restrictions on Share Transferability.  The Committee may impose such restrictions on
any Shares acquired pursuant to the exercise or vesting of an Award as it may
deem advisable, including restrictions under applicable federal securities
laws.

5.6                 Termination of Affiliation.  Except as otherwise provided in an Award
Agreement, and subject to the provisions of Section 14.1, the extent to which
the Grantee shall have the right to exercise, vest in, or receive payment in
respect of an Award following Termination of Affiliation shall be determined in
accordance with the following provisions of this Section 5.6.

(a)  For Cause.  If a
Grantee has a Termination of Affiliation for Cause, (i) the Grantee’s
Restricted Shares that are forfeitable shall thereupon be forfeited, subject to
the provisions of Section 8.4 regarding repayment of certain amounts to the
Grantee; and (ii) any unexercised Option, LSAR or SAR, and any Performance
Share or Performance Unit with respect to which the Performance Period has not
ended as of the date of such Termination of Affiliation, shall terminate
effective immediately upon such Termination of Affiliation.

(b) On Account of Death or Disability.  If a Grantee has a Termination of Affiliation
on account of death or Disability, then:

(1)           the Grantee’s Restricted Shares that were forfeitable shall
thereupon become nonforfeitable;

 12
 

(2)           any unexercised Option or SAR, whether or not exercisable on
the date of such Termination of Affiliation, may be exercised, in whole or in
part, within the first 12 months after such Termination of Affiliation (but
only during the Option Term) by the Grantee or, after his or her death, by (i)
his or her personal representative or the person to whom the Option or SAR, as
applicable, is transferred by will or the applicable laws of descent and
distribution, or (ii) the Grantee’s beneficiary designated in accordance with
Article 11; and

(3)           the benefit payable with respect to any Performance Share or
Performance Unit with respect to which the Performance Period has not ended as
of the date of such Termination of Affiliation on account of death or
Disability shall be equal to the product of the Fair Market Value of a Share as
of the date of such Termination of Affiliation or the value of the Performance
Unit specified in the Award Agreement (determined as of the date of such
Termination of Affiliation), as applicable, multiplied successively by each of
the following:

(i)         a fraction, the numerator of which is the number of months
(including as a whole month any partial month) that have elapsed since the
beginning of such Performance Period until the date of such Termination of
Affiliation and the denominator of which is the number of months (including as
a whole month any partial month) in the Performance Period; and

(ii)        a percentage determined by the Committee that would be earned
under the terms of the applicable Award Agreement assuming that the rate at
which the performance goals have been achieved as of the date of such
Termination of Affiliation would continue until the end of the Performance
Period, or, if the Committee elects to compute the benefit after the end of the
Performance Period, the Performance Percentage, as determined by the Committee,
attained during the Performance Period.

(c)               On Account of Retirement.  If a Grantee has a Termination of Affiliation
on account of Retirement, then:

(1)           the Grantee’s Restricted Shares that were forfeitable shall
thereupon become nonforfeitable;

(2)           any unexercised Option or SAR, whether or not exercisable on
the date of such Termination of Affiliation, may be exercised, in whole or in
part, within the first five years after such Termination of Affiliation (but
only during the Option Term) by the Grantee or, after his or her death, by (i)
his or her personal representative or the person to whom the Option or SAR, as
applicable, is transferred by will or the applicable laws of descent and
distribution, or (ii) the Grantee’s beneficiary designated in accordance with
Article 11; and

(3)           the benefit payable with respect to any Performance Share or
Performance Unit with respect to which the Performance Period has not ended as
of the date of such Termination of Affiliation on account of Retirement shall
be equal to the product of the Fair Market Value of a Share as of the date of
such Termination of Affiliation or the value of the Performance Unit

 13
 

specified in the Award Agreement (determined as of the date of such
Termination of Affiliation), as applicable, multiplied successively by each of
the following:

(i)         a fraction, the numerator of which is the number of months
(including as a whole month any partial month) that have elapsed since the
beginning of such Performance Period until the date of such Termination of
Affiliation and the denominator of which is the number of months (including as
a whole month any partial month) in the Performance Period; and

(ii)        a percentage
determined by the Committee that would be earned under the terms of the
applicable Award Agreement assuming that the rate at which the performance
goals have been achieved as of the date of such Termination of Affiliation
would continue until the end of the Performance Period, or, if the Committee
elects to compute the benefit after the end of the Performance Period, the
Performance Percentage, as determined by the Committee, attained during the
Performance Period.

(d)              Any Other Reason.  If a Grantee has a Termination of Affiliation
for any reason other than for Cause, death, Disability or Retirement, then:

(1)           the Grantee’s Restricted Shares, to the extent forfeitable
on the date of the Grantee’s Termination of Affiliation, shall be forfeited on
such date;

(2)           any unexercised Option or SAR, to the extent exercisable
immediately before the Grantee’s Termination of Affiliation, may be exercised
in whole or in part, not later than three months after such Termination of
Affiliation (but only during the Option Term) by the Grantee or, after his or
her death, by (i) his or her personal representative or the person to whom the
Option or SAR, as applicable, is transferred by will or the applicable laws of
descent and distribution, or (ii) the Grantee’s beneficiary designated in
accordance with Article 11;

(3)           if such Termination
of Affiliation is the result of the Grantee’s termination of employment by the
Corporation or a Consolidated Subsidiary (other than for Cause), then, in
addition to giving effect to the immediately preceding clause (2), the portion
of any Option that was not exercisable immediately before the Grantee’s
Termination of Affiliation, may be exercised in whole or in part, not later
than three months after such Termination of Affiliation (but only during the
Option Term) by the Grantee or, after his or her death, by (i) his or her
personal representative or the person to whom the Option is transferred by will
or the applicable laws of descent and distribution, or (ii) the Grantee’s beneficiary
designated in accordance with Article 11; and

(4)           any
Performance Shares or Performance Units with respect to which the Performance
Period has not ended as of the date of such Termination of Affiliation shall
terminate immediately upon such Termination of Affiliation.

 14
 

5.7                 Nontransferability of Awards.

(a)  Except as provided in Section
5.7(c) below, each Award, and each right under any Award, shall be exercisable
only by the Grantee during the Grantee’s lifetime, or, if permissible under
applicable law, by the Grantee’s guardian or legal representative.

(b)              Except as
provided in Section 5.7(c) below, no Award (prior to the time, if applicable,
Shares are issued in respect of such Award), and no right under any Award, may
be assigned, alienated, pledged, attached, sold or otherwise transferred or
encumbered by a Grantee otherwise than by will or by the laws of descent and
distribution (or in the case of Restricted Shares, to the Company), and any
such purported assignment, alienation, pledge, attachment, sale, transfer or
encumbrance shall be void and unenforceable against the Company or any
Subsidiary; provided, that the designation of a
beneficiary shall not constitute an assignment, alienation, pledge, attachment,
sale, transfer or encumbrance.

(c)  To the extent and in the
manner permitted by the Committee, and subject to such terms, conditions,
restrictions or limitations that may be prescribed by the Committee, a Grantee
may transfer an Award (other than an Incentive Stock Option) to (i) a spouse,
sibling, parent, child (including an adopted child) or grandchild (any of
which, an “Immediate Family Member”) of the Grantee; (ii) a trust, the primary
beneficiaries of which consist exclusively of the Grantee or Immediate Family
Members of the Grantee; or (iii) a corporation, partnership or similar entity,
the owners of which consist exclusively of the Grantee or Immediate Family
Members of the Grantee.

5.8                 Cancellation and Rescission of Awards.  Unless the Award Agreement specifies
otherwise, the Committee may cancel, rescind, suspend, withhold, or otherwise
limit or restrict any unexercised Award at any time if the Grantee is not in
compliance with all applicable provisions of the Award Agreement and the Plan
or if the Grantee has a Termination of Affiliation for Cause.

5.9                 Loans and Guarantees.  The Committee may, subject to applicable law,
(i) allow a Grantee to defer payment to the Company of all or any portion
of the Option Price of an Option or the purchase price of Restricted Shares, or
(ii) cause the Company to loan to the Grantee, or guarantee a loan from a
third party to the Grantee for, all or any portion of the Option Price of an
Option or the purchase price of Restricted Shares or all or any portion of any
taxes associated with the exer­cise of, nonforfeitability of, or payment of
benefits in connection with, an Award. 
Any such payment deferral, loan or guarantee by the Company shall be on
such terms and conditions as the Committee may determine.

 15
 

Article 6.  Stock Options

6.1                 Grant of Options.  Subject to the terms and provisions of the
Plan, Options may be granted to any Eligible Person in such number, and upon
such terms, and at any time and from time to time as shall be determined by the
Committee.  Without in any manner
limiting the generality of the foregoing, the Committee may grant to any
Eligible Person, or permit any Eligible Person to elect to receive, an Option
in lieu of or in substitution for any other compensation (whether payable
currently or on a deferred basis, and whether payable under this Plan or
otherwise) which such Eligible Person may be eligible to receive from the
Company or a Subsidiary.

6.2                 Award Agreement.  Each Option grant shall be evidenced by an
Award Agreement that shall specify the Option Price, the Option Term, the
number of shares to which the Option pertains, the time or times at which such
Option shall be exercisable and such other provisions as the Committee shall
determine.

6.3                 Option Price. 
The Option Price of an Option under this Plan shall be determined by the
Committee, and shall be equal to or more than 100% of the Fair Market Value of
a Share on the Grant Date; provided, however, that any Option that is
(i) granted to a Grantee in connection with the Spin-off Distribution,
(ii) associated with an option to purchase shares of stock of KCSI (“KCSI
Option”) held by such Grantee immediately prior to such Spin-off Distribution,
and (iii) intended to preserve for the Grantee the economic value of all or a
portion of such KCSI Option (“KCSI Substitute Option”) may, to the extent
necessary to achieve such preservation of economic value, be granted with an
Option Price that is less than 100% of the Fair Market Value of a Share on the
Grant Date; and provided, further, that any Option that is (x) granted to
a Grantee in connection with the acquisition (“Acquisition”), however effected,
by the Company of another corporation or entity (“Acquired Entity”) or the
assets thereof, (y) associated with an option to purchase shares of stock
of the Acquired Entity or an affiliate thereof (“Acquired Entity Option”) held
by such Grantee immediately prior to such Acquisition, and (z) intended to
preserve for the Grantee the economic value of all or a portion of such
Acquired Entity Option (“Substitute Option”) may, to the extent necessary to
achieve such preservation of economic value, be granted with an Option Price
that is less than 100% of the Fair Market Value of a Share on the Grant Date.

6.4                 Grant of Incentive Stock Options.  At the time of the grant of any Option, the
Committee may designate that such Option shall be made subject to additional
restrictions to permit it to qualify as an “incentive stock option” under the
requirements of Section 422 of the Code. Any Option designated as an
Incentive Stock Option shall, to the extent required by Section 422 of the
Code:

(a)    if granted to a 10% Owner,
have an Option Price not less than 110% of the Fair Market Value of a Share on
its Grant Date;

 16
 

(b)   be exercisable for a period
of not more than 10 years (five years in the case of an Incentive Stock Option
granted to a 10% Owner) from its Grant Date, and be subject to earlier
termination as provided herein or in the applicable Award Agreement;

(c)    not have an aggregate Fair
Market Value (as of the Grant Date of each Incentive Stock Option) of the
Shares with respect to which Incentive Stock Options (whether granted under the
Plan or any other stock option plan of the Grantee’s employer or any parent or
Subsidiary thereof (“Other Plans”)) are exercisable for the first time by such
Grantee during any calendar year, determined in accordance with the provisions
of Section 422 of the Code, which exceeds $100,000 (the “$100,000 Limit”);

(d)   if the aggregate Fair Market
Value of the Shares (determined on the Grant Date) with respect to the portion
of such grant which is exercisable for the first time during any calendar year
(“Current Grant”) and all Incentive Stock Options previously granted under the
Plan and any Other Plans which are exercisable for the first time during the
same calendar year (“Prior Grants”) would exceed the $100,000 Limit be
exercisable as follows:

(1)             the portion of the
Current Grant which would, when added to any Prior Grants, be exercisable with
respect to Shares which would have an aggregate Fair Market Value (determined
as of the respective Grant Date for such options) in excess of the $100,000
Limit shall, notwithstanding the terms of the Current Grant, be exercisable for
the first time by the Grantee in the first subsequent calendar year or years in
which it could be exercisable for the first time by the Grantee when added to
all Prior Grants without exceeding the $100,000 Limit; and

(2)             if, viewed as of
the date of the Current Grant, any portion of a Current Grant could not be
exercised under the preceding provisions of this Section during any calendar
year commencing with the calendar year in which it is first exercisable through
and including the last calendar year in which it may by its terms be exercised,
such portion of the Current Grant shall not be an Incentive Stock Option, but
shall be exercisable as an Option which is not an Incentive Stock Option at
such date or dates as are provided in the Current Grant;

(e)  be granted within 10 years from the earlier of the date the
Plan is adopted or the date the Plan is approved by the stock­holders of the
Company; and

(f)  by its terms not be assignable or transferable other than by will
or the laws of descent and distribution and may be exercised, during the
Grantee’s lifetime, only by the Grantee; provided, however,
that the Grantee may, in any manner permitted by the Plan and specified by the
Committee, designate in writing a beneficiary to exercise his or her Incentive
Stock Option after the Grantee’s death.

Any Option designated as an Incentive Stock Option shall also require
the Grantee to notify the Committee of any disposition of any Shares issued
pursuant to the exercise of the Incentive Stock Option under the circumstanc­es
described in Sec­tion 421(b) of the Code (relating to certain

 17
 

disqualifying dispositions) (any such circumstance, a “Disqualifying
Disposition”), within 10 days of such Disqualifying Disposition.

Notwithstanding the foregoing and Section 3.2(e), the Committee may,
without the consent of the Grantee, at any time before the exercise of an
Option (whether or not an Incentive Stock Option), take any action necessary to
prevent such Option from being treated as an Incentive Stock Option.

6.5                 Payment. 
Options granted under this Article 6 shall be exercised by the delivery of
a written notice of exercise to the Company, setting forth the number of Shares
with respect to which the Option is to be exercised, accompanied by full
payment for the Shares made by any one or more of the following means subject
to the approval of the Committee:

(a)  cash, personal check or wire
transfer;

(b)  Mature Shares, valued at
their Fair Market Value on the date of exercise;

(c)  Restricted Shares held by the
Grantee for at least six months prior to the exercise of the Option, each such
Share valued at the Fair Market Value of a Share on the date of exercise;

(d)  subject to applicable law,
pursuant to procedures approved by the Committee, through the sale of the
Shares acquired on exercise of the Option through a broker-dealer to whom
the Grantee has submitted an irrevocable notice of exercise and irrevocable
instructions to deliver promptly to the Company the amount of sale or loan
proceeds sufficient to pay for such Shares, together with, if requested by the
Company, the amount of federal, state, local or foreign withholding taxes
payable by Grantee by reason of such exercise; or

(e)  when permitted by the
Committee, payment may also be made in accordance with Sec­tion 5.9.

If any Restricted Shares (“Tendered Restricted Shares”) are used to pay
the Option Price, a number of Shares acquired on exercise of the Option equal
to the number of Tendered Restricted Shares shall be subject to the same
restrictions as the Tendered Restricted Shares, determined as of the date of
exercise of the Option.

Article 7.   Stock Appreciation
Rights and Limited Stock Appreciation Rights

7.1                 Grant of SARs.  Subject to the terms and conditions of the
Plan, SARs may be granted to any Eligible Person at any time and from time to
time as shall be determined by the Committee. 
The Committee may grant Freestanding SARs, Tandem SARs, or any
combination thereof.

 18

The Committee shall determine the number of SARs granted to each
Grantee (subject to Article 4), the Strike Price thereof, and, consistent with
Section 7.2 and the other provisions of the Plan, the other terms and
conditions pertaining to such SARs.

7.2                 Exercise of Tandem SARs.  Tandem SARs may be exercised for all or part
of the Shares subject to the related Award upon the surrender of the right to
exercise the equivalent portion of the related Award.  A Tandem SAR may be exercised only with
respect to the Shares for which its related Award is then exercisable.

Notwithstanding any other provision of this Plan to the contrary, with
respect to a Tandem SAR, (i) the Tandem SAR will expire no later than the
expiration of the underlying Option; (ii) the value of the payout with respect
to the Tandem SAR may be for no more than 100% of the difference between the
Option Price of the underlying Option and the Fair Market Value of the Shares
subject to the underlying Option at the time the Tandem SAR is exercised; and
(iii) the Tandem SAR may be exercised only when the Fair Market Value of the
Shares subject to the Option exceeds the Option Price of the Option.

7.3                 Payment of SAR Amount.  Upon exercise of an SAR, the Grantee shall be
entitled to receive payment from the Company in an amount determined by
multiplying:

(a)  the excess of the Fair Market Value of a
Share on the date of exercise over the Strike Price;

by

(b)  the number of Shares with respect to which
the SAR is exercised;

provided that the Committee may provide in the Award Agreement that the
benefit payable on exercise of an SAR shall not exceed such percentage of the
Fair Market Value of a Share on the Grant Date as the Committee shall
specify.  As determined by the Committee,
the payment upon SAR exercise may be in cash, in Shares which have an aggregate
Fair Market Value (as of the date of exercise of the SAR) equal to the amount
of the payment, or in some combination thereof, as set forth in the Award
Agreement.

7.4                 Grant of LSARs.  Subject to the terms and conditions of the
Plan, LSARs may be granted to any Eligible Person at any time and from time to
time as shall be determined by the Committee. 
Each LSAR shall be identified with a Share subject to an Option or SAR
held by the Grantee, which may include an Option or SAR previously granted
under the Plan.  Upon the exercise,
expiration, termination, forfeiture or cancellation of the Option or SAR with
which an LSAR is identified, such LSAR shall terminate.

7.5                 Exercise of LSARs.  Each LSAR shall automatically be exercised
upon a Change of Control which has not been approved by the Incumbent
Board.  The exercise of an LSAR shall 

 19
 

result in the cancellation of
the Option or SAR with which such LSAR is identified, to the extent of such
exercise.

7.6                 Payment of LSAR Amount.  Within 10 business days after the exercise of
an LSAR, the Company shall pay to the Grantee, in cash, an amount equal to the
difference between:

(a)  the greatest of (i) the Change of
Control Value, (ii) the Fair Market Value of a Share on the date occurring
during the 180-day period immediately preceding the date of the Change of
Control on which such Fair Market Value is the greatest or (c) such other
valuation amount, if any, as may be determined pursuant to the provisions of
the applicable Award Agreement;

minus

(b)  either (i) in the case of an LSAR identified
with an Option, the Option Price of such Option or (ii) in the case of an
LSAR identified with an SAR, the Strike Price of such SAR.

Article 8.   Restricted Shares

8.1                 Grant of Restricted Shares.  Subject to the terms and provisions of the
Plan, the Committee, at any time and from time to time, may grant Restricted
Shares to any Eligible Person in such amounts as the Committee shall determine.

8.2                 Award Agreement.  Each grant of Restricted Shares shall be
evidenced by an Award Agreement that shall specify the Period(s) of
Restriction, the number of Restricted Shares granted, and such other provisions
as the Committee shall determine.  The
Committee may impose such conditions and/or restrictions on any Restricted
Shares granted pursuant to the Plan as it may deem advisable, including
restrictions based upon the achievement of specific performance goals
(Company-wide, divisional, Subsidiary and/or individual), time-based restrictions
on vesting, and/or restrictions under applicable securities laws.

8.3                 Consideration.  The Committee shall determine the amount, if
any, that a Grantee shall pay for Restricted Shares, which shall be (except
with respect to Restricted Shares that are treasury shares) at least the
Minimum Consideration for each Restricted Share. Such payment shall be made in
full by the Grantee before the delivery of the shares or share units and in any
event no later than 10 business days after the Grant Date for such shares or
share units.

8.4                 Effect of Forfeiture.  If Restricted Shares are forfeited, and if
the Grantee was required to pay for such shares or share units or acquired such
Restricted Shares upon the exercise of an Option, the Grantee shall be deemed to
have resold such Restricted Shares to the Company at a price equal to the
lesser of (x) the amount paid by the Grantee for such Restricted Shares,
or (y) the Fair Market Value of a Share or Share Unit on the date of such
forfeiture. The Company shall pay to the Grantee the required amount as soon as
is administratively practical. Such Restricted Shares shall cease to be
outstanding, and shall no longer confer on the Grantee thereof 

 20
 

any rights as a stockholder of
the Company, from and after the date of the event causing the forfeiture,
whether or not the Grantee accepts the Company’s tender of payment for such
Restricted Shares.

8.5                 Escrow; Legends.  The Committee may provide that any
certificates for Restricted Shares (x) shall be held (together with a stock
power executed in blank by the Grantee) in escrow by the Secretary of the
Company until such Restricted Shares become nonforfeitable or are forfeited
and/or (y) shall bear an appropriate legend restricting the transfer of such
Restricted Shares.  If any Restricted
Shares become nonforfeitable, the Company shall cause any certificates for such
shares to be issued without such legend.

Article 9.   Performance Units
and Performance Shares

9.1                 Grant of Performance Units and Performance Shares.  Subject to the terms of the Plan, Performance
Units or Performance Shares may be granted to any Eligible Person in such
amounts and upon such terms, and at any time and from time to time, as shall be
determined by the Committee.

9.2                 Value/Performance Goals.  Each Performance Unit shall have an initial
value that is established by the Committee at the time of grant.  Each Performance Share shall have an initial
value equal to the Fair Market Value of a Share on the date of grant.  The Committee shall set performance goals
which, depending on the extent to which they are met, will determine the number
or value of Performance Units or Performance Shares that will be paid out to
the Grantee.  For purposes of this
Article 9, the time period during which the performance goals must be met shall
be called a “Performance Period.”

9.3                 Earning of Performance Units and Performance
Shares.  Subject to the terms of this
Plan, after the applicable Performance Period has ended, the holder of
Performance Units or Performance Shares shall be entitled to receive a payout
based on the number and value of Performance Units or Performance Shares earned
by the Grantee over the Performance Period, to be determined as a function of
the extent to which the corresponding performance goals have been achieved.

If a Grantee is promoted, demoted or transferred to a different
business unit of the Company during a Performance Period, then, to the extent
the Committee determines the performance goals or Performance Period are no
longer appropriate, the Committee may adjust, change or eliminate the
performance goals or the applicable Performance Period as it deems appropriate
in order to make them appropriate and comparable to the initial performance
goals or Performance Period.

9.4                 Form and Timing of Payment of Performance Units
and Performance Shares.  Payment of
earned Performance Units or Performance Shares shall be made in a lump sum
following the close of the applicable Performance Period.  The Committee may pay earned Performance
Units or Performance Shares in the form of cash or in Shares (or in a
combination thereof) which have an aggregate Fair Market Value equal to the
value of the earned Performance 

 21
 

Units or Performance Shares at
the close of the applicable Performance Period. 
Such Shares may be granted subject to any restrictions deemed
appropriate by the Committee.  The form
of payout of such Awards shall be set forth in the Award Agreement pertaining
to the grant of the Award.

As determined by the Committee, a Grantee may be entitled to receive
any dividends declared with respect to Shares which have been earned in
connection with grants of Performance Units or Performance Shares but not yet
distributed to the Grantee.  In addition,
a Grantee may, as determined by the Committee, be entitled to exercise his or
her voting rights with respect to such Shares.

Article 10.   Bonus Shares

Subject to the
terms of the Plan, the Committee may grant Bonus Shares to any Eligible Person,
in such amount and upon such terms and at any time and from time to time as
shall be determined by the Committee. 
The terms of such Bonus Shares shall be set forth in the Award Agreement
pertaining to the grant of the Award.

Article 11.   Beneficiary Designation

Each Grantee under the Plan may, from time to time, name any
beneficiary or beneficiaries (who may be named contingently or successively) to
whom any benefit under the Plan is to be paid in case of his or her death
before he or she receives any or all of such benefit.  Each such designation shall revoke all prior
designations by the same Grantee, shall be in a form prescribed by the Company,
and will be effective only when filed by the Grantee in writing with the
Company during the Grantee’s lifetime. 
In the absence of any such designation, benefits remaining unpaid at the
Grantee’s death shall be paid to the Grantee’s estate.

Article 12.   Deferrals

The Committee may permit or require a Grantee to defer receipt of the
payment of cash or the delivery of Shares that would otherwise be due by virtue
of the exercise of an Option or SAR, the lapse or waiver of restrictions with
respect to Restricted Shares, the satisfaction of any requirements or goals
with respect to Performance Units or Performance Shares, or the grant of Bonus
Shares.  If any such deferral is required
or permitted, the Committee shall establish rules and procedures for such
deferrals.  Except as otherwise provided
in an Award Agreement, any payment or any Shares that are subject to such
deferral shall be made or delivered to the Grantee upon the Grantee’s
Termination of Affiliation.

 22
 

Article 13.   Rights of
Employees/Directors/Consultants

13.1               Employment.  Nothing in the Plan shall interfere with or
limit in any way the right of the Company to terminate any Grantee’s
employment, directorship or consultancy at any time, nor confer upon any
Grantee the right to continue in the employ or as a director or consultant of
the Company.

13.2               Participation. 
No employee, director or consultant shall have the right to be selected
to receive an Award under the Plan or, having been so selected, to be selected
to receive a future Award.

13.3               Dividend
Equivalents.  Subject to the
provisions of the Plan and any Award, the recipient of an Award (including any
Award deferred in accordance with procedures established pursuant to Article
12) may, if so determined by the Committee, be entitled to receive, currently
or on a deferred basis, cash, stock or other property dividends, or cash
payments in amounts equivalent to cash, stock or other property dividends on
shares of Common Stock (“Dividend Equivalents”) with respect to the number of
shares of Common Stock covered by the Award, as determined by the Committee, in
its sole discretion, and the Committee may provide that such amounts (if any)
shall be deemed to have been reinvested in additional shares or otherwise
reinvested.

Article 14.   Change of Control

14.1               Change of Control.  Except as otherwise provided in an Award
Agreement, if a Change of Control occurs, then:

(a)  the Grantee’s Restricted Shares that were forfeitable
shall thereupon become nonforfeitable;

(b)  any unexercised Option or SAR, whether or not
exercisable on the date of such Change of Control, shall thereupon be fully
exercisable and may be exercised, in whole or in part; and

(c)  the Company
shall immediately pay to the Grantee, with respect to any Performance Share or
Performance Unit with respect to which the Performance Period has not ended as
of the date of such Change of Control, a cash payment equal to the product of
(i) in the case of a Performance Share, the Change of Control Value or
(ii) in the case of a Performance Unit, the value of the Performance Unit
specified in the Award Agreement, as applicable, multiplied successively by
each of the following:

(1)  a fraction, the numerator of
which is the number of whole and partial months that have elapsed between the
beginning of such Performance Period and the date of such 

 23
 

Change of Control and the denominator of which is the number of whole
and partial months in the Performance Period; and

(2)  a percentage equal to a greater of (x) the target percentage,
if any, specified in the applicable Award Agreement or (y) the maximum
percentage, if any, that would be earned under the terms of the applicable
Award Agreement assuming that the rate at which the performance goals have been
achieved as of the date of such Change of Control would continue until the end
of the Performance Period.

14.2               Pooling of Interests Accounting.  If the Committee determines, prior to a sale
or merger of the Company that the Committee determines is reasonably likely to
occur, that the grant or exercise of Options, SARs or LSARs would preclude the
use of pooling of interests accounting (“pooling”) after the consummation of
such sale or merger and that such preclusion of pooling would have a material
adverse effect on such sale or merger, the Committee may (a) make any
adjustments in such Options, SARs or LSARs prior to the sale or merger that
will permit pooling after the consummation of such sale or merger or (b) cause
the Company to pay the benefits attributable to such Options, SARs or LSARs
(including for this purpose not only the spread between the then Fair Market
Value of the Shares subject to such Options, SARs or LSARs and the Option Price
or Strike Price applicable thereto, but also the additional value of such
Options, SARs, or LSARs in excess of such spread, as determined by the
Committee) in the form of Shares if such payment would not cause the
transaction to remain or become ineligible for pooling; provided, however, no
such adjustment or payment may be made that would adversely affect in any
material way any such Options, SARs or LSARs without the consent of the
affected Grantee.

Article 15.   Amendment,
Modification, and Termination

15.1               Amendment, Modification, and Termination.  Subject to the terms of the Plan, the Board
may at any time and from time to time, alter, amend, suspend or terminate the
Plan in whole or in part without the approval of the Company’s
stockholders.  The Board may delegate to
the Plan Committee any or all of the authority of the Board under Section 15.1
to alter, amend, suspend or terminate the Plan.

15.2               Adjustment of Awards Upon the Occurrence of Certain
Unusual or Nonrecurring Events.  The
Committee may make adjustments in the terms and conditions of, and the criteria
included in, Awards in recognition of unusual or nonrecurring events (including
the events described in Section 4.2) affecting the Company or the financial
statements of the Company or of changes in applicable laws, regulations, or
accounting principles, whenever the Committee determines that such adjustments
are appropriate in order to prevent dilution or enlargement of the benefits or
potential benefits intended to be made available under the Plan; provided that
no such adjustment shall be authorized to the extent that such authority would
be inconsistent with the Plan’s meeting the requirements of the
Performance-Based Exception.

 24
 

15.3               Awards Previously Granted.  Notwithstanding any other provision of the
Plan to the contrary, no termination, amendment, or modification of the Plan
shall adversely affect in any material way any Award previously granted under
the Plan, without the written consent of the Grantee of such Award.

Article 16.   Withholding

16.1               Withholding

(a)  Mandatory Tax Withholding.

(1)        Whenever, under the
Plan, Shares are to be delivered upon exercise or payment of an Award or upon
Restricted Shares becoming nonforfeitable, or any other event with respect to
rights and benefits hereunder, the Company shall be entitled to require
(i) that the Grantee remit an amount in cash, or if determined by the
Committee, Mature Shares, sufficient to satisfy all federal, state, local and
foreign tax withholding requirements related thereto (“Required Withhold­ing”),
(ii) the withholding of such Required Withholding from compensation
otherwise due to the Grantee or from any Shares or other payment due to the
Grantee under the Plan or (iii) any combination of the foregoing.

(2)        Any
Grantee who makes a Disqualifying Disposition or an election under Section
83(b) of the Code shall remit to the Company an amount sufficient to satisfy
all resulting Required Withholding; provided that,
in lieu of or in addition to the foregoing, the Company shall have the right to
withhold such Required Withholding from compensa­tion otherwise due to the
Grantee or from any Shares or other
payment due to the Grantee under the Plan.

(b)   Elective
Share Withholding.

(1)        Subject to subsection 16.1(b)(2), a Grantee may elect the
withholding (“Share Withholding”) by the Company of a portion of the Shares
subject to an Award upon the exercise of such Award or upon Restricted Shares
becoming non-forfeitable or upon making an election under Section 83(b) of the
Code (each, a “Taxable Event”) having a Fair Market Value equal to (i) the
minimum amount necessary to satisfy Required Withholding liability attributable
to the Taxable Event; or (ii) with the Committee’s prior approval, a greater
amount, not to exceed the estimated total amount of such Grantee’s tax
liability with respect to the Taxable Event.

(2)        Each Share Withholding election shall be subject to the
following conditions:

(i)   any Grantee’s election shall be subject to
the Committee’s discretion to revoke the Grantee’s right to elect Share
Withholding at any time before the Grantee’s election if the Committee has
reserved the right to do so in the Award Agreement;

 25
 

(ii)   the Grantee’s election must be made before
the date (the “Tax Date”) on which the amount of tax to be withheld is determined;
and

(iii)   the Grantee’s election shall be irrevocable.

16.2                Notification
under Code Section 83(b).  If the
Grantee, in connection with the exercise of any Option, or the grant of
Restricted Shares, makes the election permitted under Section 83(b) of the Code
to include in such Grantee’s gross income in the year of transfer the amounts
specified in Section 83(b) of the Code, then such Grantee shall notify the
Company of such election within 10 days of filing the notice of the election
with the Internal Revenue Service, in addition to any filing and notification
required pursuant to regulations issued under Section 83(b) of the Code.
The Committee may, in connection with the grant of an Award or at any time
thereafter prior to such an election being made, prohibit a Grantee from making
the election described above.

Article 17.   Successors

All obligations of the Company under the Plan with respect to Awards
granted hereunder shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise of all or substantially all of the business
and/or assets of the Company.

Article 18.   Additional
Provisions

18.1               Gender and Number.  Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the
plural shall include the singular and the singular shall include the plural.

18.2               Severability. 
If any part of the Plan is declared by any court or governmental
authority to be unlawful or invalid, such unlawfulness or invalidity shall not
invalidate any other part of the Plan. Any Section or part of a Section so
declared to be unlawful or invalid shall, if possible, be construed in a manner
which will give effect to the terms of such Section or part of a Section to the
fullest extent possible while remaining lawful and valid.

18.3               Requirements of Law.  The granting of Awards and the issuance of
Shares under the Plan shall be subject to all applicable laws, rules, and
regulations, and to such approvals by any governmental agencies or stock
exchanges as may be required. 
Notwithstanding any provision of the Plan or any Award, Grantees shall
not be entitled to exercise, or receive benefits under, any Award, and the
Company shall not be obligated to deliver any Shares or other benefits to a
Grantee, if such exercise or delivery would constitute a violation by the
Grantee or the Company of any applicable law or regulation.

 26
 

18.4                   Securities Law Compliance.

(a)  If the Committee deems it
necessary to comply with any applicable securities law, or the requirements of
any stock exchange upon which Shares may be listed, the Committee may impose
any restriction on Shares acquired pursuant to Awards under the Plan as it may
deem advisable.  All certificates for
Shares delivered under the Plan pursuant to any Award or the exercise thereof
shall be subject to such stop transfer orders and other restrictions as the
Committee may deem advisable under the rules, regulations and other
requirements of the SEC, any stock exchange upon which Shares are then listed,
any applicable securities law, and the Committee may cause a legend or legends
to be put on any such certificates to make appropriate reference to such
restrictions.  If so requested by the
Company, the Grantee shall make a written representation to the Company that he
or she will not sell or offer to sell any Shares unless a registration
statement shall be in effect with respect to such Shares under the Securities
Act of 1993, as amended, and any applicable state securities law or unless he
or she shall have furnished to the Company evidence satisfactory to the Company
that such registration is not required.

(b)  If the Committee determines
that the exercise or nonforfeitability of, or delivery of benefits pursuant to,
any Award would violate any applicable provision of securities laws or the
listing requirements of any stock exchange upon which any of the Company’s
equity securities are listed, then the Committee may postpone any such exer­cise,
nonforfeitability or delivery, as applicable, but the Company shall use all
reasonable efforts to cause such exercise, nonforfeitability or delivery to
comply with all such provisions at the earliest practicable date.

18.5               No Rights as a Stockholder.  A Grantee shall not have any rights as a
stockholder of the Company with respect to the Shares (other than Restricted
Shares) which may be deliverable upon exercise or payment of such Award until
such shares have been delivered to him or her. Restrict­ed Shares, whether held
by a Grantee or in escrow by the Secretary of the Company, shall confer on the
Grantee all rights of a stockholder of the Company, except as otherwise
provided in the Plan or Award Agreement. At the time of a grant of Restricted
Shares, the Committee may require the payment of cash dividends thereon to be
deferred and, if the Committee so determines, reinvested in additional
Restricted Shares. Stock dividends and deferred cash dividends issued with
respect to Restricted Shares shall be subject to the same restrictions and
other terms as apply to the Restricted Shares with respect to which such
dividends are issued. The Committee may provide for payment of interest on
deferred cash dividends.

18.6               Nature of Payments.  Awards shall be special incentive payments to
the Grantee and shall not be taken into account in computing the amount of
salary or compensation of the Grantee for purposes of determining any pension,
retirement, death or other benefit under (a) any pension, retirement,
profit-sharing, bonus, insurance or other employee benefit plan of the
Company or any Subsidiary or (b) any agreement between (i) the Company or
any Subsidiary and (ii) the Grantee, except as such plan or agreement shall
otherwise expressly provide.

18.7               Performance Measures.  Unless and until the Committee proposes for
stockholder vote and stockholders approve a change in the general performance
measures set forth 

 27
 

in this Section 18.7, the
performance measure(s) to be used for purposes of such Awards shall be chosen
from among the following:

(a)           stock price;

(b)           market share;

(c)           sales (gross or net);

(d)           asset quality;

(e)           non-performing assets;

(f)            earnings per share;

(g)           return on equity;

(h)           costs;

(i)            operating income;

(j)            net income;

(k)           marketing-spending efficiency;

(l)            return on operating assets;

(m)          return on assets;

(n)           core non-interest income;

(o)           fund performance

(p)           pre-tax margin

(q)           pre-tax income; and/or

(r)            levels of cost savings.

Any of the foregoing
performance measures may be applied, as determined by the Committee, in respect
of the Company or any of its subsidiaries, affiliates, business units or
divisions and/or the Company’s or any of its subsidiary’s, affiliate’s,
business unit’s or division’s worldwide, regional or country specific
operations (or any combination of the foregoing).  Performance measures shall specify whether
they are to be measured relative to budgeted or other internal goals,
operations, performance or results of the Company and/or any of its subsidiaries,
affiliates, business units or divisions, or relative to the performance of one
or more peer groups of the Company and/or any of its subsidiaries, affiliates,
business units or divisions, with the composition of  any such peer groups to be determined by the
Committee at the time the performance measure is established.  Performance measures may be stated in the
alternative or in combination.  The
Committee shall have the right but not the obligation to make adjustments to a
performance measure to take into account any unusual or extraordinary events,
to the extent not inconsistent with the requirements of the Performance-Based
Exception.

The Committee may adjust the determinations of the degree of attainment
of the preestablished performance goals; provided, however, that Awards which
are designed to qualify for the Performance-Based Exception may not be adjusted
upward without the approval of the Company’s stockholders (the Committee may
adjust such Awards downward).

In the event that applicable tax and/or securities laws change to
permit Committee discretion to alter the governing performance measures without
obtaining stockholder approval of such 

 28
 

changes, and still qualify for the Performance-Based Exception, the
Committee shall have sole discretion to make such changes without obtaining
stockholder approval.

18.8               Governing Law. 
The Plan, and all agreements hereunder, shall be construed in accordance
with and governed by the laws of the State of Delaware other than its laws
respecting choice of law.

 

 29

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