Document:

Exhibit
10.1

 

EQUITABLE
RESOURCES, INC.

 

 

 

BY-LAWS

 

(Amended through April 14, 2004)

(Approved January 14, 2004)

 

 

 

ARTICLE I

 

MEETINGS OF SHAREHOLDERS

 

 

Section 1.01                                All
meetings of the shareholders shall be held at the principal office of the
Company or such other places, either within or without the Commonwealth of
Pennsylvania, as the Board of Directors may from time to time determine.

 

Section 1.02                                An
annual meeting of shareholders shall be held in each calendar year at such time
and place as the Board of Directors shall determine.  If the annual meeting shall not be called and held during such
calendar year, any shareholder may call such meeting at any time thereafter.

 

Section 1.03                                At
each such annual meeting, the class of Directors then being elected shall be
elected to hold office for a term of three (3) years, and until their
successors shall have been elected and qualified.  All elections of Directors shall be conducted by three (3) Judges
of Election, who need not be shareholders, appointed by the Board of
Directors.  If any such appointees are
not present, the vacancy shall be filled by the presiding officer of the
meeting.  The President of the Company
shall preside and the Secretary shall take the minutes at all meetings of the
shareholders.  In the absence of the
President, the Chairman of the Executive Committee shall preside.  In the absence of both, the presiding
officer shall be designated by the Board of Directors

 

1

 

or, if not so designated,
by the shareholders of the Company, and if the Secretary is unable to do so,
the presiding officer shall designate any person to take the minutes of the
meeting.

 

Section 1.04                                The
presence, in person or by proxy, of the holders of a majority of the voting
power of all shareholders shall constitute a quorum except as otherwise
provided by law or by the Restated Articles of the Company.  If a meeting is not organized because a
quorum is not present, the shareholders present may adjourn the meeting to such
time and place as they may determine, except that any meeting at which
Directors are to be elected shall be adjourned only from day to day, or for
such longer periods not exceeding fifteen (15) days each, as may be directed by
a majority of the voting stock present.

 

Section 1.05                                Shareholders
entitled to vote on any matter shall be entitled to one (1) vote for each share
of capital stock standing in their respective names upon the books of the
Company to be voted by the shareholder in person or by his or her duly
authorized proxy or attorney.  The
validity of every unrevoked proxy shall cease eleven (11) months after the date
of its execution unless some other definite period of validity shall be
expressly provided therein, but in no event shall a proxy, unless coupled with
an interest, be voted on after three (3) years from the date of its
execution.  All questions shall be
decided by the vote of shareholders entitled to cast at least a majority of the
votes which all shareholders present and voting (excluding abstentions) are
entitled to cast on the matter, unless otherwise expressly provided by law or
by the Restated Articles of the Company.

 

Section 1.06                                Special
meetings of shareholders may be called by the Board of Directors or by the
President.

 

Section 1.07                                Notice
of the annual meeting and of all special meetings of shareholders shall be
given by sending a written or printed notice thereof by mail, specifying the

 

2

 

place, day, and hour of
the meeting and, in the case of a special meeting of shareholders, the general
nature of the business to be transacted, to each shareholder at the address
appearing on the books of the Company, or the address supplied by such
shareholder to the Company for the purpose of notice, at least five (5) days
before the day named for the meeting, unless such shareholders shall waive
notice or be in attendance at the meeting.

 

Section 1.08                                At
any annual meeting or special meeting of shareholders, only such business as is
properly brought before the meeting in accordance with this Section 1.08
may be transacted.  To be properly
brought before any meeting, any proposed business must be either (i) specified
in the notice of the meeting (or any supplement thereto) given by or at the
direction of the Board of Directors, (ii) otherwise properly brought before the
meeting by or at the direction of the Board of Directors, or (iii) if brought
before the meeting by a shareholder, then (a) the shareholder must have been a
shareholder of record on the record date for the determination of shareholders
entitled to vote at such meeting, and (b) written notice of such proposed
business must have been delivered or mailed by first class United States mail,
postage prepaid, to the Secretary, and received not less than 90 days or more
than 120 days prior to the anniversary date of the previous year’s annual
meeting; provided, however, that if the Company changes the date of its annual
meeting by more than 30 days from the anniversary date of the prior year’s
annual meeting, then such proposal shall have been received on or before the
later of (x) during the period commencing 120 days and ending 90 days before
the date of the annual meeting or (y) the close of business on the 10th
day following the earlier of the date on which the Company gave notice of or
publicly disclosed the date of the meeting. 
Such notice shall set forth the nature of and reasons for the proposal
in reasonable detail and, as to the shareholder giving the notice, (i) the name
and address, as they appear on the Company’s books of such shareholder

 

3

 

and (ii) the class and
number of shares of the Company which are beneficially owned by such
shareholder.

 

ARTICLE II

 

GENERAL PROVISIONS

 

Section 2.01                                The
principal office of the Company shall be in the City of Pittsburgh,
Pennsylvania, and shall be kept open during business hours every day except
Saturdays, Sundays, and legal holidays, unless otherwise ordered by the Board
of Directors or the President.

 

Section 2.02                                The
Company shall have a corporate seal which shall contain within a circle the
following words:  “Equitable Resources,
Inc., Pittsburgh, Pennsylvania” and in an inner circle the words “Corporate
Seal.”

 

Section 2.03                                The
fiscal year of the Company shall begin with January 1 and end with
December 31 of the same calendar year.

 

Section 2.04                                The
Board of Directors shall fix a time, not more than seventy (70) days prior to
the date of any meeting of shareholders, or the date fixed for the payment of
any dividend or distribution, or the date for any allotment of rights, or the
date when any change or conversion or exchange of shares will be made or go
into effect, as a record date for the determination of the shareholders entitled
to notice of, or to vote at, any such meeting, or entitled to receive payment
of any such dividend or distribution, or to receive any such allotment of
rights, or to exercise the rights in respect of any such change, conversion, or
exchange of shares.

 

4

 

ARTICLE III

 

BOARD OF DIRECTORS

 

Section 3.01                                Regular
meetings of the Board of Directors shall be held at least six (6) times each
year, immediately after the annual meeting of shareholders and at such other
times and places as the Board of Directors shall from time to time designate by
resolution of the Board.  Notice need
not be given of regular meetings of the Board held at the times and places
fixed by resolution of the Board.

 

If the Board shall
fail to designate the specific time and place of any regular meeting, such
regular meeting shall be held at such time and place as designated by the
President and, in such case, oral, telegraphic or written notice shall be duly
served or sent or mailed by the Secretary to each Director not less than five
(5) days before the meeting.

 

Section 3.02                                Special
meetings may be held at any time upon the call of the President, or the
Chairman of the Executive Committee in the absence of the President, at such
time and place as he may deem necessary, or by the Secretary at the request of
any two (2) members of the Board, by oral, telegraphic or written notice duly
served or sent or mailed to each Director not less than twenty-four (24) hours
before the meeting.

 

Section 3.03                                Fifty
percent (50%) of the Directors at the time in office shall constitute a quorum
for the transaction of business. 
Vacancies in the Board of Directors, including vacancies resulting from
an increase in the number of Directors, shall be filled only by a majority vote
of the remaining Directors then in office, though less than a quorum, except
that vacancies resulting from removal from office by a vote of the shareholders
may be filled by the shareholders at the same meeting at which such removal
occurs.  All Directors elected to fill
vacancies shall hold

 

5

 

office for a term
expiring at the annual meeting of shareholders at which the term of the class
to which they have been elected expires.

 

Section 3.04                                One
(1) or more Directors may participate in a meeting of the Board or of a
committee of the Board by means of conference telephone or similar
communications equipment by means of which all persons participating in the
meeting can hear each other, and all Directors so participating shall be deemed
present at the meeting.

 

Section 3.05                                The
full Board of Directors shall consist of not less than five (5) nor more than
twelve (12) persons, the exact number to be fixed from time to time by the
Board of Directors pursuant to a resolution adopted by a majority vote of the
Directors then in office.

 

Section 3.06                                The
Board of Directors may elect one (1) of its members as its Chairman.  A Chairman so elected shall confer with the
President as to the content of agendas for such meetings and shall consult with
the President as to matters affecting or relating to the Board of
Directors.  The Chairman so elected
shall serve until the first meeting of the Board following the next annual
meeting of the shareholders.  The Board
shall also fix the annual rate of compensation to be paid to the Chairman in
addition to compensation paid to all non-officer members of the Board.  The Chairman, or in the absence of the
Chairman, the President, shall preside at all meetings of the Board, preserve
order, and regulate debate according to the usual parliamentary rules.  In the absence of the Chairman or the
President, a Chairman pro tem may be appointed by the Board.

 

Section 3.07                                Only
persons who are nominated in accordance with the following procedures shall be
eligible for election as directors. 
Nomination for election to the Board of Directors of the Company at a
meeting of shareholders may be made by the Board of Directors or by any
shareholder of the Company entitled to vote for the election of directors at

 

6

 

such meeting who complies
with the notice procedures set forth in this Section 3.07.  Such nominations, other than those made by
or on behalf of the Board of Directors, shall be made by notice in writing
delivered or mailed by first class United States mail, postage prepaid, to the
Secretary, and received not less than 90 days nor more than 120 days prior to
the anniversary date of the previous year’s annual meeting; provided, however,
that if the Company changes the date of its annual meeting by more than 30 days
from the anniversary date of the prior years’ annual meeting, then such
proposal shall have been received on or before the later of (x) during the
period commencing 120 days and ending 90 days before the date of the annual
meeting of (y) the close of business on the 10th day following the
earlier of the date on which the Company gave notice of or publicly disclosed
the date of the meeting.  Such notice
shall set forth (a) as to each proposed nominee (i) the name, age, business
address and, if known, residence address of each such nominee, (ii) the
principal occupation or employment of each such nominee, (iii) the number of
shares of stock of the Company which are beneficially owned by each such
nominee, and (iv) any other information concerning the nominee that must be
disclosed as to nominees in proxy solicitations pursuant to Regulation 14A
under the Securities Exchange Act of 1934, as amended (including such person’s
written consent to be named as a nominee and to serve as a director if
elected); and (b) as to the shareholder giving the notice (i) the name and
address, as they appear on the Company’s books, of such shareholder, (ii) the
class and number of shares of stock of the Company which are beneficially owned
by such shareholder, (iii) the length of time such shareholder has held such
shares, and (iv) any other information concerning such shareholder as may be
appropriate for the purpose of complying with Regulation 14A under the
Securities Act of 1934, as amended.  The
Company may require any proposed nominee or such

 

7

 

shareholder to furnish
such other information as may reasonably be requested by the Company to determine
the eligibility of such proposed nominee to serve as a director of the Company.

 

The Chairman of
the meeting may, if the facts warrant, determine and declare to the meeting
that a nomination was not made in accordance with the foregoing procedure, and
if he should so determine, he shall so declare to the meeting and the defective
nomination shall be disregarded.

 

Section 3.08                                No
Director of this Company shall be permitted to serve in that capacity after the
date of the annual meeting of shareholders next following his or her
seventy-fourth (74th) birthday.  No
person who is an employee or officer of the Company, except the Chief Executive
Officer, shall be eligible to serve as a Director of the Company after he or
she has retired from service as an employee or officer.

 

Section 3.09                                No
Director shall be personally liable for monetary damages as such (except to the
extent otherwise provided by law) for any action taken, or any failure to take
any action, unless such Director has breached or failed to perform the duties
of his or her office under Title 42, Chapter 83, Subchapter F of the
Pennsylvania Consolidated Statutes (or any successor statute relating to
Directors’ standard of care and justifiable reliance); and the breach or
failure to perform constitutes self-dealing, willful misconduct or
recklessness.

 

If the
Pennsylvania Consolidated Statutes are amended after May 22, 1987, the date
this section received shareholder approval, to further eliminate or limit
the personal liability of Directors, then a Director shall not be liable, in
addition to the circumstances set forth in this section, to the fullest extent
permitted by the Pennsylvania Consolidated Statutes, as so amended.

 

8

 

The provisions of
this section shall not apply to any actions filed prior to
January 27, 1987, nor to any breach of performance of duty, or any failure
of performance of duty, by any Director occurring prior to January 27,
1987.

 

ARTICLE IV

 

INDEMNIFICATION OF DIRECTORS AND OFFICERS

 

Section 4.01                                Directors,
officers, agents, and employees of the Company shall be indemnified as of right
to the fullest extent not prohibited by law in connection with any actual or
threatened action, suit or proceeding, civil, criminal, administrative,
investigative or other (whether brought by or in the right of the Company or
otherwise) arising out of their service to the Company or to another enterprise
at the request of the Company.  The
Company may purchase and maintain insurance to protect itself and any such
Director, officer, agent or employee against any liability asserted against and
incurred by him or her in respect of such service, whether or not the Company
would have the power to indemnify him or her against such liability by law or under
the provisions of this section.  The
provisions of this section shall be applicable to persons who have ceased
to be Directors, officers, agents, and employees and shall inure to the benefit
of the heirs, executors, and administrators of persons entitled to indemnity
hereunder.

 

Indemnification
under this section shall include the right to be paid expenses incurred in
advance of the final disposition of any action, suit or proceeding for which
indemnification is provided, upon receipt of an undertaking by or on behalf of
the indemnified person to repay such amount if it ultimately shall be
determined that he or she is not entitled to be indemnified by the
Company.  The indemnification rights
granted herein are not intended to be exclusive of any other rights to which
those seeking indemnification may be entitled and the

 

9

 

Company may enter into
contractual agreements with any Director, officer, agent or employee to provide
such individual with indemnification rights as set forth in such agreement or
agreements, which rights shall be in addition to the rights set forth in this
section.

 

The provisions of
this section shall be applicable to actions, suits or proceedings
commenced after the adoption hereof, whether arising from acts or omissions
occurring before or after the adoption hereof.

 

ARTICLE V

 

STANDING COMMITTEES

 

Section 5.01                                The
Board of Directors shall have authority to appoint an Executive Committee, a
Finance Committee, an Audit Committee, and such other committees as it deems
advisable, each to consist of two (2) or more Directors, and from time to time
to define the duties and fix the number of members of each committee.  In the absence or disqualification of any
member of any such committee, the member or members thereof present at any
meeting and not disqualified from voting, whether or not constituting a quorum,
may unanimously appoint another Director or Directors to act at the meeting in
the place of any such absent or disqualified member or members.

 

ARTICLE VI

 

OFFICERS

 

Section 6.01                                The
officers of the Company shall be chosen by the Board of Directors and shall be
a President, a Secretary, and a Treasurer. 
The Board of Directors may also choose such Vice Presidents, including
one (1) or more Executive Vice Presidents and Senior Vice Presidents, and one
(1) or more Assistant Secretaries and Assistant Treasurers as it may determine.

 

10

 

Section 6.02                                The
Board of Directors shall, at the first meeting of the Board after its election,
elect the principal officers of the Company, and may elect additional officers
at that or any subsequent meeting.  All
officers elected by the Board of Directors shall hold office at the pleasure of
the Board.

 

Section 6.03                                At
the discretion of the Board of Directors, any two (2) of the offices mentioned
in Section 6.01 hereof may be held by the same person except the offices
of President and Secretary.

 

Section 6.04                                The
salaries of all officers of the Company, other than Assistant Secretaries and
Assistant Treasurers, shall be fixed by the Board of Directors.

 

Section 6.05                                The
officers of the Company shall hold office until the next annual meeting of the
Board and until their successors are chosen and qualify in their stead or until
their earlier resignation or removal. 
Any officer or agent may be removed by the Board of Directors whenever
in its judgment the best interests of the Company will be served thereby.  Such removal, however, shall be without
prejudice to the contract rights of the person so removed.  If the office of any officer becomes vacant
for any reason, the vacancy may be filled by the Board of Directors.

 

PRESIDENT

 

Section 6.06                                The
President shall be the Chief Executive Officer of the Company; shall preside at
all meetings of the shareholders and at all meetings of the Board of Directors;
shall have general and active management of the business of the Company; and
shall see that all orders and resolutions of the Board of Directors are carried
into effect.  In addition to any
specific powers conferred upon the President by these By-Laws, he shall have
and exercise such

 

11

 

further powers and duties
as from time to time may be conferred upon or assigned to him by the Board of
Directors.

 

SECRETARY

 

Section 6.07                                The
Secretary shall attend all meetings of the shareholders and Board of Directors;
shall record all votes and the minutes of all proceedings in a book to be kept
for that purpose; and shall perform like duties for all committees of the
Board, if so designated by the Board. 
The Secretary shall keep in safe custody the seal of the Company and
when authorized by the Board of Directors, affix the seal of the Company to any
instrument requiring it and, when so affixed, it shall be attested by the
signature of the Secretary or by the signature of the Treasurer or an Assistant
Secretary.  The Secretary shall have
custody of all contracts, leases, assignments, and all other valuable
instruments unless the Board of Directors or the President shall otherwise
direct.  The Secretary shall give, or
cause to be given, notice of all annual meetings of the shareholders and any
other meetings of the shareholders and, when required, notice of the meetings
of the Board of Directors; and, in general, shall perform all duties incident
to the office of a secretary of a corporation, and such other duties as may be
prescribed by the Board of Directors or the President.

 

Section 6.08                                The
Board of Directors may elect one (1) or more Assistant Secretaries who shall
perform the duties of the Secretary in the event of the Secretary’s absence or
inability to act, as well as such other duties as the Board of Directors, the
President, or the Secretary may from time to time designate.

 

12

 

TREASURER

 

Section 6.09                                The
Treasurer shall have charge of all moneys and securities belonging to the
Company subject to the direction and control of the Board of Directors.  The Treasurer shall deposit all moneys
received by the Company in the name and to the credit of the Company in such
bank or other place or places of deposit as the Board of Directors shall
designate; and for that purpose the Treasurer shall have power to endorse for
collection or payment all checks or other negotiable instruments drawn payable
to the Treasurer’s order or to the order of the Company.  The Treasurer shall disburse the moneys of
the Company upon properly drawn checks which shall bear the signature of the
Treasurer or of any Assistant Treasurer or of the Cashier (who shall be
appointed by the Assistant Treasurer with the approval of the Treasurer).  All checks shall be covered by vouchers
which shall be certified by the Controller or the Auditor of Disbursements or
such other employee of the Company (other than the Cashier) as may be
designated by the Treasurer from time to time. 
The Treasurer may create, from time to time, such special imprest funds
as may, in the Treasurer’s discretion, be deemed advisable and necessary, and
may open accounts with such bank or banks as may be deemed advisable for the
deposit therein of such special imprest funds, and may authorize disbursements
therefrom by checks drawn against such accounts by the Treasurer, any Assistant
Treasurer, or such other employee of the Company as may be designated by the
Treasurer from time to time.  The
Treasurer shall perform such other duties as may be assigned from time to time
by the Board of Directors, the President or the Chief Financial Officer.

 

13

 

Section 6.10                                No
notes or similar obligations shall be made except jointly by the President or
the Chief Financial Officer and the Treasurer or an Assistant Treasurer, except
as otherwise authorized by the Board of Directors.

 

Section 6.11                                The
Board of Directors may elect one (1) or more Assistant Treasurers who shall
perform the duties of the Treasurer in the event of the Treasurer’s absence or
inability to act, as well as such other duties as the Board of Directors, the
President, the Chief Financial Officer or the Treasurer may from time to time
designate.

 

VICE PRESIDENTS

 

Section 6.12                                Vice
Presidents shall perform such duties as may be assigned to them from time to
time by the Board of Directors or the President as their positions are
established or changed.  During the
absence or inability of the President to serve, an Executive Vice President or
Senior Vice President so designated by the Board of Directors shall have all
the powers and perform the duties of the President.

 

GENERAL

 

Section 6.13                                Fidelity
bond coverage shall be obtained on such officers and employees of the Company,
and of such type and in such amounts as may, in the discretion of the Board of
Directors, be deemed proper and advisable.

 

14

 

ARTICLE VII

 

CERTIFICATED AND UNCERTIFICATED SHARES

 

Section 7.01                                All
classes and series of shares of capital stock of the Company, or any part
thereof, shall be represented by stock certificates or shall be uncertificated
shares, as determined by the Board of Directors, provided, that every
shareholder shall be entitled to a share certificate if he or she so requests
in the manner prescribed by the Company.

 

(a)  Shares of capital stock of the Company
represented by certificates shall be signed by the President or a Vice
President, and countersigned by the Secretary or an Assistant Secretary or the
Treasurer or an Assistant Treasurer, and sealed with the corporate seal of the
Company.  Said certificates shall be in
such form as the Board of Directors may from time to time prescribe.

 

(b)  Within a reasonable time after the issuance
or transfer of uncertificated shares, the Company shall send to the registered
owner thereof a written notice containing the information otherwise required to
be set forth or stated on a stock certificate.

 

Section 7.02                                The
Board of Directors may from time to time appoint an incorporated company or
companies to act as Transfer Agent and Registrar of shares of the Company, and
in the case of the appointment of such Transfer Agent, the officers of the
Company may sign and seal stock certificates in blank and place them with the
transfer books in the custody and control of such Transfer Agent.  If any stock certificate is signed by a Transfer
Agent or Registrar, the signature of any such officer and the corporate seal
upon any such certificate may be a facsimile, engraved or printed.

 

15

 

Section 7.03                                New
certificates for shares of stock may be issued to replace certificates lost,
stolen, destroyed or mutilated upon such terms and conditions as the Board may
from time to time determine.

 

ARTICLE VIII

 

AMENDMENTS

 

Section 8.01                                (a)  The Board of Directors may make, amend, and
repeal the By-Laws with respect to those matters which are not, by statute,
reserved exclusively to the shareholders, subject always to the power of the
shareholders to change such action as provided herein.  No By-Law may be made, amended or repealed
by the shareholders unless such action is approved by the affirmative vote of
the holders of not less than eighty percent (80%) of the voting power of the
then outstanding shares of capital stock of the Company entitled to vote in an
annual election of Directors, voting together as a single class, unless such
action has been previously approved by a two-thirds vote of the whole Board of
Directors, in which event (unless otherwise expressly provided in the Articles
or the By-Laws) the affirmative vote of not less than a majority of the votes
which all shareholders are entitled to cast thereupon shall be required.

 

(b)  Unless otherwise provided by a By-Law, by
the Restated Articles or by law, any By-Law may be amended, altered or
repealed, and new By-Laws may be adopted, by vote of a majority of the
Directors present at any regular or special meeting duly convened, but only if
notice of the specific sections to be amended, altered, repealed or added is
included in the notice of meeting.  No
provision of the By-Laws shall vest any property or contract right in any
shareholder.

 

16

 

ARTICLE IX

 

PENNSYLVANIA CORPORATION LAW

 

Section 9.01                                Subchapter
G—Control Share Acquisitions—and
Subchapter H—Disgorgement by Certain Controlling Shareholders
Following Attempts to Acquire Control—of
Title 15, Chapter 25, of the Pennsylvania Consolidated Statutes, shall not be
applicable to the Company.

 

 

(Amended through
January 14, 2004)

 

17Exhibit 10.2

 

1999 EQUITABLE RESOURCES, INC.

 

LONG-TERM
INCENTIVE PLAN

 

(As amended
and restated February 25, 2004)

 

SECTION 1.  PURPOSES

 

1.01  The purpose of the 1999 Equitable Resources,
Inc. Long-Term Incentive Plan (the “Plan”) is to assist the Company in
attracting, retaining and motivating employees of outstanding ability and to
align their interests with those of the shareholders of the Company.

 

SECTION 2.  DEFINITIONS; CONSTRUCTION

 

2.01  Definitions.  In addition to the terms defined elsewhere in the Plan, the
following terms as used in the Plan shall have the following meanings when used
with initial capital letters:

 

2.01.1  “Award” means any Option, Restricted Stock,
Performance Award or Other Stock-Based Award, or any other right or interest relating
to Shares or cash granted under the Plan.

 

2.01.2  “Award Agreement” means any written
agreement, contract or other instrument or document evidencing an Award.

 

2.01.3  “Board” means the Company’s Board of
Directors.

 

2.01.4  “Cause,” when used with respect to the
termination of employment of a Participant, means:

 

(a)
the willful and continued failure by the Participant to substantially perform
his duties with the Company or a Subsidiary (other than any such failure
resulting from the Participant’s disability), after a written demand for
substantial performance is delivered to the Participant by the Board which
specifically identifies the manner in which the Board believes that the
Participant has not substantially performed his duties, and which failure has
not been cured within 30 days after such written demand; or

 

(b)  the willful and continued engaging by the
Participant in conduct which is demonstrably and materially injurious to the
Company or a Subsidiary, monetarily or otherwise, or

 

(c)  the breach by the Participant of any
obligation of confidentiality owed to the Company or a Subsidiary.

 

For
purposes of this Section 2.02.4, no act, or failure to act, on the
Participant’s part shall be considered “willful” unless done, or omitted to be
done, by the Participant in bad faith and without reasonable belief that such
action or omission was in the best interest of the Company.  Notwithstanding the foregoing, the
Participant shall not be deemed to have been terminated for Cause unless and
until there shall have been

 

 

delivered to him a copy
of a resolution duly adopted by the affirmative vote of not less than
three-quarters of the non-management members of the Board at a meeting of the
Board called and held for that purpose (after reasonable notice to the
Participant and an opportunity for the Participant, together with his counsel,
to be heard before the Board) finding that in the good faith opinion of the
Board the Participant is guilty of the conduct set forth above in
clauses (a), (b) or (c) of this Section 2.02.4 and specifying the
particulars thereof in detail.

 

2.01.5  “Code” means the Internal Revenue Code of
1986, as amended from time to time, together with rules, regulations and
interpretations promulgated thereunder. 
References to particular sections of the Code shall include any
successor provisions.

 

2.01.6  “Change of Control” has the meaning provided
in Section 9.03.

 

2.01.7  “Committee” means the Compensation Committee
or such other Committee of the Board as may be designated by the Board to
administer the Plan, as referred to in Section 3.01 hereof; provided
however, that any member of the Committee participating in the taking of any
action under the Plan shall qualify as a “non-employee director” as then
defined under Rule 16b-3 and an “outside director” as then defined under
Section 162(m) of the Code.

 

2.01.8  “Common Stock” means shares of the common
stock, without par value, and such other securities of the Company or other
corporation or entity as may be substituted for Shares pursuant to
Section 8.01 hereof.

 

2.01.9  “Covered Employee” shall have the meaning
provided in Section 162(m)(3) of the Code.

 

2.01.10  “Exchange Act” means the Securities Exchange
Act of 1934, as amended.

 

2.01.11  “Fair Market Value” of shares of any stock,
including but not limited to Common Stock, or units of any other securities
(herein “shares”), shall be the mean between the highest and lowest sales
prices per share for the date as of which Fair Market Value is to be determined
in the principal market in which such shares are traded, as quoted in The Wall
Street Journal (or in such other reliable publication as the
Committee, in its discretion, may determine to rely upon).  If the Fair Market Value of shares on any
date cannot be determined on the basis set forth in the preceding sentence, or
if a determination is required as to the Fair Market Value on any date of
property other than shares, the Committee shall in good faith determine the
Fair Market Value of such shares or other property on such date.  Fair Market Value shall be determined
without regard to any restriction other than a restriction which, by its terms,
will never lapse.

 

2.01.12  “Incentive Stock Option” means an Option
that is intended to meet the requirements of Section 422 of the Code and
is designated as such in the Award Agreement relating thereto.

 

2

 

2.01.13  “Option” means a right, granted under
Section 6.02 hereof, to purchase Shares at a specified price during
specified time periods.  An Option may
be either an Incentive Stock Option or a nonstatutory stock option, which is an
Option not intended to be an Incentive Stock Option.

 

2.01.14  “Other Stock-Based Award” means an Award,
granted under Section 6.05 hereof, that is denominated or payable in,
valued in whole or in part by reference to, or otherwise based on, or related
to, Shares.

 

2.01.15  “Participant” means an employee of the
Company or any Subsidiary, including, but not limited to, Covered Employees,
who is granted an Award under the Plan.

 

2.01.16  “Performance Award,” “Performance Goal” and
“Performance Period” shall have the meanings provided in Section 6.04.

 

2.01.17  “Reload Option Rights” and “Reload Option”
have the meanings provided in Section 6.02(v).

 

2.01.18  “Restricted Stock” means Shares, granted
under Section 6.03 hereof, that are subject to certain restrictions.

 

2.01.19  “Rule 16b-3” means Rule 16b-3 under the
Exchange Act, as amended from time to time, or any successor to such Rule
promulgated by the Securities and Exchange Commission under Section 16 of
the Exchange Act.

 

2.01.20  “Shares” means the common stock of the
Company, without par value, and such other securities of the Company as may be
substituted for Shares pursuant to Section 8.01 hereof.

 

2.01.21  “Subsidiary” means any corporation in an
unbroken chain of corporations beginning with the Company, if each of the
corporations other than the last corporation in the chain owns stock possessing
at least 50% of the total combined voting power of all classes of stock in one
of the other corporations in the chain.

 

2.02  Construction.  For purposes of the Plan, the following rules of construction
shall apply:

 

2.02.1  The word “or” is disjunctive but not
necessarily exclusive.

 

2.02.2  Words in the singular include the plural;
words in the plural include the singular; words in the neuter gender include
the masculine and feminine genders, and words in the masculine or feminine
gender include the other and neuter genders.

 

SECTION 3. ADMINISTRATION

 

3.01  The Plan shall be administered by the
Committee.  The Committee shall have
full and final authority to take the following actions, in each case subject to
and consistent with the provisions of the Plan:

 

3

 

(i)  to designate Participants;

 

(ii)  to determine the type or types of Awards to
be granted to each Participant;

 

(iii)  to determine the number of Awards to be
granted, the number of Shares or amount of cash or other property to which an
Award will relate, the terms and conditions of any Award (including, but not
limited to, any exercise price, grant price or purchase price, any limitation
or restriction, any schedule for lapse of limitations, forfeiture
restrictions or restrictions on exercisability or transferability, and
accelerations or waivers thereof, based in each case on such considerations as
the Committee shall determine), and all other matters to be determined in
connection with an Award;

 

(iv)  to determine whether, to what extent and under
what circumstances an Award may be settled in, or the exercise price of an
Award may be paid in cash, Shares, other Awards or other property, or an Award
may be accelerated, vested, canceled, forfeited, exchanged or surrendered;

 

(v)  to determine whether, to what extent and
under what circumstances cash, Shares, other Awards, other property and other
amounts payable with respect to an Award shall be deferred, whether
automatically or at the election of the Committee or at the election of the
Participant;

 

(vi)  to interpret and administer the Plan and any
instrument or agreement relating to, or Award made under, the Plan;

 

(vii)  to prescribe the form of each Award
Agreement, which need not be identical for each Participant;

 

(viii)  to adopt, amend, suspend, waive and rescind
such rules and regulations as the Committee may deem necessary or advisable to
administer the Plan;

 

(ix)  to correct any defect or supply any omission
or reconcile any inconsistency, and to construe and interpret the Plan, the rules
and regulations, any Award Agreement or other instrument entered into or Award
made under the Plan;

 

(x)  to make all other decisions and
determinations as may be required under the terms of the Plan or as the
Committee may deem necessary or advisable for the administration of the Plan;
and

 

(xi)  to make such filings and take such actions
as may be required from time to time by appropriate state, regulatory and
governmental agencies.

 

Any action of the
Committee with respect to the Plan shall be final, conclusive and binding on
all Persons, including the Company, Subsidiaries, Participants, any Person
claiming any rights under the Plan from or through any Participant, employees
and shareholders.  The express grant of
any specific power to the Committee, and the taking of any action by the
Committee, shall not be construed as limiting any power or authority of the
Committee.  The Committee may delegate
to officers or managers of the Company or any Subsidiary the

 

4

 

authority, subject to
such terms as the Committee shall determine, to perform administrative
functions under the Plan and, with respect to Participants who are not subject
to Section 16 of the Exchange Act, to take such actions and perform such functions
under the Plan as the Committee may specify. 
Each member of the Committee shall be entitled to, in good faith, rely
or act upon any report or other information furnished to him by an officer,
manager or other employee of the Company or a Subsidiary, the Company’s
independent certified public accountants, or any executive compensation
consultant or other professional retained by the Company to assist in the
administration of the Plan.

 

SECTION 4.  SHARES SUBJECT TO THE PLAN

 

4.01  The maximum net number of Shares which may
be issued and in respect of which Awards may be granted under the Plan shall be
limited to (i) 6,000,000 shares of Common Stock, subject to adjustment as
provided in Section 8.01, which may be used for all forms of Awards, and
(ii) 5,000,000 shares of Common Stock, subject to adjustment as provided in
Section 8.01, which may be used for all forms of Awards excluding
Incentive Stock Options.  For purposes
of determining the number of Shares available under either of the foregoing categories,
Shares issued with respect to Awards granted on or after May 17, 2001 shall be
deemed to have been issued from category (ii) of the foregoing sentence unless
such Award is an Incentive Stock Option or as otherwise determined by the
Committee.

 

For purposes of this
Section 4.01, the number of Shares to which an Award relates shall be
counted against the number of Shares available under the Plan at the time of
grant of the Award, unless such number of Shares cannot be determined at that
time, in which case the number of Shares actually distributed pursuant to the
Award shall be counted against the number of Shares available under the Plan at
the time of distribution; provided, however, that Awards related to or
retroactively added to, or granted in tandem with, substituted for or converted
into, other Awards shall be counted or not counted against the number of Shares
reserved and available under the Plan in accordance with procedures adopted by
the Committee so as to ensure appropriate counting but avoid double counting.

 

If any Shares to which an
Award relates are forfeited, or payment is made to the Participant in the form
of cash, cash equivalents or other property other than Shares, or the Award
otherwise terminates without payment being made to the Participant in the form
of Shares, any Shares counted against the number of Shares available under the
Plan with respect to such Award shall, to the extent of any such forfeiture,
alternative payment or termination, again be available for Awards under the
Plan.  If the exercise price of an Award
is paid by delivering to the Company Shares previously owned by the
Participant, the Shares covered by the Award equal to the number of Shares so
delivered shall again be available for Awards under the Plan.  Any Shares distributed pursuant to an Award,
if granted pursuant to category (i) of the first sentence of this Section, may
consist, in whole or part, of authorized and unissued Shares or of treasury
Shares, including Shares repurchased by the Company for purposes of the Plan
and, if granted pursuant to category (ii) of the first sentence of this
Section, shall consist of treasury Shares.

 

5

 

SECTION 5.  ELIGIBILITY

 

5.01  Awards may be granted only to individuals
who are full-time employees (including, without limitation, employees who also
are directors or officers and Covered Employees) of the Company or any
Subsidiary; provided, however, that no Award shall be granted to any member of
the Committee.

 

SECTION 6.  SPECIFIC TERMS OF AWARDS

 

6.01  General. 
Subject to the terms of the Plan and any applicable Award Agreement,
Awards may be granted as set forth in this Section 6.  In addition, the Committee may impose on any
Award or the exercise thereof, at the date of grant or thereafter (subject to
the terms of Section 10.01), such additional terms and conditions, not
inconsistent with the provisions of the Plan, as the Committee shall determine,
including separate escrow provisions and terms requiring forfeiture of Awards
in the event of termination of employment by the Participant.  Except as required by applicable law, Awards
may be granted for no consideration other than prior and/or future services.

 

6.02  Options. 
The Committee is authorized to grant Options to Participants on the
following terms and conditions:

 

(i)  Exercise Price.  The exercise price per Share of an Option shall not be less than
100% of the Fair Market Value of a Share on the date of grant of such Option.

 

(ii)  Option Term.  The term of each Option shall be determined by the Committee,
except that no Incentive Stock Option shall be exercisable after the expiration
of ten years from the date of grant.

 

(iii)  Times and Methods of Exercise.  The Committee shall determine the time or
times at which an Option may be exercised in whole or in part, the methods by
which the exercise price may be paid or deemed to be paid, and the form of such
payment, including, without limitation, cash, Shares, or other property or any
combination thereof, having a Fair Market Value on the date of exercise equal
to the exercise price, provided, however, that (1) in the case of a Participant
who is at the time of exercise subject to Section 16 of the Exchange Act,
any portion of the exercise price representing a fraction of a Share shall in
any event be paid in cash or in property other than any equity security (as
defined by the Exchange Act) of the Company and (2) except as otherwise
determined by the Committee, in its discretion, at the time the Option is granted,
no shares which have been held for less than six months may be delivered in
payment of the exercise price of an Option.

 

Delivery
of Shares in payment of the exercise price of an Option, if authorized by the
Committee, may be accomplished through the effective transfer to the Company of
Shares held by a broker or other agent. 
Unless otherwise determined by the Committee, the Company will also
cooperate with any person exercising an Option who participates in a cashless
exercise program of a broker or other agent under which all or part of the
Shares received upon exercise of the Option are sold through the broker or
other agent, for the purpose of paying the exercise price of an Option.  Notwithstanding the preceding

 

6

 

sentence, unless the
Committee, in its discretion, shall otherwise determine, the exercise of the
Option shall not be deemed to occur, and no Shares will be issued by the
Company upon exercise of an Option, until the Company has received payment in
full of the exercise price.

 

Notwithstanding
any other provision contained in the Plan or in any Award Agreement, but
subject to the possible exercise of the Committee’s discretion contemplated in
the last sentence of this Section 6.02(iii), the aggregate Fair Market
Value, determined as of the date of grant, of the Shares with respect to which
Incentive Stock Options are exercisable for the first time by a Participant
during any calendar year under all plans of the corporation employing such employee,
any parent or subsidiary corporation of such corporation and any predecessor
corporation of any such corporation shall not exceed $100,000.  If the date on which one or more of such
Incentive Stock Options could first be exercised would be accelerated pursuant
to any provision of the Plan or any Award Agreement, and the acceleration of
such exercise date would result in a violation of the restriction set forth in
the preceding sentence, then, notwithstanding any such provision, but subject
to the provisions of the next succeeding sentence, the exercise dates of such
Incentive Stock Options shall be accelerated only to the date or dates, if any,
that do not result in a violation of such restriction and, in such event, the
exercise dates of the Incentive Stock Options with the lowest option prices
shall be accelerated to the earliest such dates.  The Committee may, in its discretion, authorize the acceleration
of the exercise date of one or more Incentive Stock Options even if such
acceleration would violate the $100,000 restriction set forth in the first
sentence of this paragraph and even if such Incentive Stock Options are thereby
converted in whole or in part to nonstatutory stock options.

 

(iv)  Termination of
Employment.  Unless otherwise
determined by the Committee and reflected in the Award Agreement:

 

(A)  if a Participant shall die while employed by
the Company or a Subsidiary or during a period following termination of
employment during which an Option otherwise remains exercisable under this
Section 6.02(iv), Options granted to the Participant, to the extent
exercisable at the time of the Participant’s death, may be exercised within one
year after the date of the Participant’s death, but not later than the
expiration date of the Option, by the executor or administrator of the
Participant’s estate or by the Person or Persons to whom the Participant shall
have transferred such right by will, by the laws of descent and distribution
or, if permitted by the Committee, by inter vivos transfer.

 

(B)  if the employment of a Participant with the
Company or a Subsidiary shall be involuntarily terminated under circumstances
which would qualify the Participant for benefits under the Company’s Separation
Allowance Plan, or if a Participant shall retire under the terms of any
retirement plan of the Company or a Subsidiary or shall terminate his or her
employment with the written consent of the Company or a Subsidiary specifically
permitting such exercise, Options granted to the Participant, to the extent
exercisable at the date of the Participant’s termination of employment, may be
exercised within 90 days after the date of termination of employment, but not
later than the expiration date of the Option.

 

7

 

(C)  except to the extent an Option remains
exercisable under paragraph (A) or (B) above or under Section 9.02, any
Option granted to a Participant shall terminate immediately upon the
termination of all employment of the Participant with the Company or a Subsidiary.

 

(v)  Reload Option Rights.  Reload Option Rights if awarded with respect
to an Option shall entitle the holder of the Option, upon exercise of the
Option or any portion thereof through delivery of previously owned Shares, to
automatically be granted on the date of such exercise a new nonstatutory stock
option (a “Reload Option”) (1) for a number of Shares not exceeding the number
of full Shares delivered in payment of the option price of the original Option
and any withholding taxes related thereto, (2) having an option price not less
than 100% of the Fair Market Value per Share of the Common Stock on such date
of grant, (3) having an expiration date not later than the expiration date of
the original Option so exercised and (4) otherwise having terms permissible for
the grant of an Option under the Plan. 
Subject to the preceding sentence and the other provisions of the Plan,
Reload Option Rights and Reload Options shall have such terms and be subject to
such restrictions and conditions, if any, as shall be determined, in its
discretion, by the Committee.  In
granting Reload Option Rights, the Committee, may, in its discretion, provide
for successive Reload Option grants upon the exercise of Reload Options granted
thereunder.  Unless otherwise
determined, in its discretion, by the Committee, Reload Option Rights shall
entitle the holder of an Option to be granted a Reload Option only if the
underlying Option to which they relate is exercised during employment with the
Company or a Subsidiary of the original grantee of the underlying Option.  Except as otherwise specifically provided
herein or required by the context, the term Option as used in this Plan shall
include Reload Options granted hereunder.

 

(vi)  Individual Option Limit.  The aggregate number of Shares for which Options may
be granted under the Plan to any single Participant shall not exceed 1,500,000
Shares.  The limitation in the preceding
sentence shall be interpreted and applied in a manner consistent with
Section 162(m) of the Code and, to the extent consistent with
Section 162(m) of the Code, in accordance with Section 4.01
hereof.  To the extent consistent with
Section 162(m) of the Code, in applying this limitation a Reload Option
shall not be deemed to increase the number of Shares covered by the original
underlying Option grant.

 

6.03  Restricted Stock.  The Committee is authorized to grant Restricted Stock to
Participants on the following terms and conditions:

 

(i)  Issuance and Restrictions.  Restricted Stock shall be subject to such
restrictions on transferability and other restrictions as the Committee may
impose (including, without limitation, limitations on the right to vote
Restricted Stock or the right to receive dividends thereon), which restrictions
may lapse separately or in combination at such times, under such circumstances,
in such installments or otherwise, as the Committee shall determine at the time
of grant or thereafter.  The restriction
period applicable to Restricted Stock shall, in the case of a time-based
restriction period, be not less than three years or, in the case of a
performance-based restriction period, be not less than one year.

 

8

 

(ii)  Forfeiture.  Except as otherwise determined by the Committee at the time of grant
or thereafter, upon termination of employment (as determined under criteria
established by the Committee) during the applicable restriction period,
Restricted Stock that is at that time subject to restrictions shall be
forfeited and reacquired by the Company; provided, however, that the Committee
may provide, by rule or regulation or in any Award Agreement, that restrictions
on Restricted Stock shall be waived in whole or in part in the event of
terminations resulting from specified causes, and the Committee may in other
cases waive in whole or in part restrictions on Restricted Stock.

 

(iii)  Certificates for Shares.  Restricted Stock granted under the Plan may
be evidenced in such manner as the Committee shall determine, including,
without limitation, issuance of certificates representing Shares, which may be
held in escrow.  Certificates
representing Shares of Restricted Stock shall be registered in the name of the
Participant and shall bear an appropriate legend referring to the terms,
conditions and restrictions applicable to such Restricted Stock.

 

6.04  Performance Awards.  The Committee is authorized to grant
Performance Awards to Participants on the following terms and conditions:

 

(i)  Right to Payment.  A Performance Award shall represent a right
to receive Shares, cash, other property or any combination thereof based on the
achievement, or the level of achievement, during a specified Performance Period
of one or more Performance Goals established by the Committee at the time of
the Award.

 

(ii)  Terms of
Performance Awards.  At the
time a Performance Award is granted, the Committee shall cause to be set forth
in the Award Agreement or otherwise in writing (1) the Performance Goals
applicable to the Award and the Performance Period during which the achievement
of the Performance Goals shall be measured, (2) the amount which may be
earned by the Participant based on the achievement, or the level of
achievement, of the Performance Goals or the formula by which such amount shall
be determined and (3) such other terms and conditions applicable to the
Award as the Committee may, in its discretion, determine to include
therein.  The terms so established by
the Committee shall be objective such that a third party having knowledge of
the relevant facts could determine whether or not any Performance Goal has been
achieved, or the extent of such achievement, and the amount, if any, which has
been earned by the Participant based on such performance.  The Committee may retain the discretion to
reduce (but not to increase) the amount of a Performance Award which will be
earned based on the achievement of Performance Goals.

 

(iii)  Performance Goals.  “Performance Goals” shall mean one or more
preestablished, objective measures of performance during a specified “Performance
Period”, selected by the Committee in its discretion.  Performance Goals may be based upon one or more of the following
objective performance measures and expressed in either, or a combination of,
absolute or relative values:  earnings
per share, earnings per share growth, net income, revenue growth, revenues,
expenses, return on equity, return on total capital, return on assets, earnings
(including EBITDA and EBIT), cash flow, share price, economic value added,
gross margin, operating income, or total shareholder return.  Performance Goals based on such performance
measures may be based either on

 

9

 

the performance of the
Company, a Subsidiary or Subsidiaries, any branch, department, business unit or
other portion thereof under such measure for the Performance Period and/or upon
a comparison of such performance with the performance of a peer group of
corporations, prior Company performance or other measure selected or defined by
the Committee at the time of making a Performance Award.  The Committee may in its discretion also
determine to use other objective performance measures as Performance Goals.

 

(iv)  Committee Certification.  Following completion of the applicable
Performance Period, and prior to any payment of a Performance Award to the
Participant, the Committee shall determine in accordance with the terms of the
Performance Award and shall certify in writing whether the applicable
Performance Goal or Goals were achieved, or the level of such achievement, and
the amount, if any, earned by the Participant based upon such performance.  For this purpose, approved minutes of the
meeting of the Committee at which certification is made shall be sufficient to
satisfy the requirement of a written certification.

 

(v)  Maximum Individual Performance Award Payments.  In any one calendar year, the maximum amount
which may be earned by any single Participant under (a) Performance Awards
granted under the Plan and payable in cash or property (other than Shares)
shall be limited to $3,000,000 and (b) Performance Awards granted under the
Plan and payable in Shares shall be limited to 70,000 shares.  In the case of multi-year Performance
Periods, the amount which is earned in any one calendar year is the amount paid
for the Performance Period divided by the number of calendar years in the
period.  In applying this limit, the
amount of any cash or the Fair Market Value of any Shares or other property
earned by a Participant shall be measured as of the close of the applicable
calendar year which ends the Performance Period, regardless of the fact that
certification by the Committee and actual payment to the Participant may occur
in a subsequent calendar year or years.

 

6.05  Other Stock-Based Awards.  The Committee is authorized, subject to
limitations under applicable law, to grant to Participants, in lieu of salary
or cash bonus, such other Awards that are denominated or payable in, valued in
whole or in part by reference to, or otherwise based on, or related to, Shares,
as deemed by the Committee to be consistent with the purposes of the Plan,
including, without limitation, purchase rights, Shares awarded which are not
subject to any restrictions or conditions, convertible securities, exchangeable
securities or other rights convertible or exchangeable into Shares, as the
Committee in its discretion may determine. 
In the discretion of the Committee, such Other Stock-Based Awards,
including Shares, or other types of Awards authorized under the Plan, may be
used in connection with, or to satisfy obligations of the Company or a
Subsidiary under, other compensation or incentive plans, programs or
arrangements of the Company or any Subsidiary for eligible Participants,
including without limitation the Short-Term Incentive Compensation Plan, the
Deferred Compensation Plan and executive contracts.

 

The Committee shall
determine the terms and conditions of Other Stock-Based Awards.  Shares or securities delivered pursuant to a
purchase right granted under this Section 6.05 shall be purchased for such
consideration, paid for by such methods and in such forms, including, without
limitation, cash, Shares, or other property or any combination thereof, as the
Committee

 

10

 

shall determine, but the
value of such consideration shall not be less than the Fair Market Value of
such Shares or other securities on the date of grant of such purchase
right.  Delivery of Shares or other
securities in payment of a purchase right, if authorized by the Committee, may
be accomplished through the effective transfer to the Company of Shares or
other securities held by a broker or other agent.  Unless otherwise determined by the Committee, the Company will
also cooperate with any person exercising a purchase right who participates in
a cashless exercise program of a broker or other agent under which all or part
of the Shares or securities received upon exercise of a purchase right are sold
through the broker or other agent, or under which the broker or other agent
makes a loan to such person, for the purpose of paying the exercise price of a
purchase right.  Notwithstanding the
preceding sentence, unless the Committee, in its discretion, shall otherwise
determine, the exercise of the purchase right shall not be deemed to occur, and
no Shares or other securities will be issued by the Company upon exercise of a
purchase right, until the Company has received payment in full of the exercise
price.

 

SECTION 7.  GENERAL TERMS OF AWARDS

 

7.01  Stand-Alone, Tandem and Substitute Awards.  Awards granted under the Plan may, in the
discretion of the Committee, be granted either alone or in addition to, or in
tandem with, any other Award granted under the Plan or any award granted under
the Management Incentive Compensation Plan, or any other plan, program or
arrangement of the Company or any Subsidiary (subject to the terms of
Section 10.01) or any business entity acquired or to be acquired by the
Company or a Subsidiary, except that an Incentive Stock Option may not be
granted in tandem with other Awards or awards. 
Awards granted in addition to or in tandem with other Awards or awards
may be granted either at the same time as or at a different time from the grant
of such other Awards or awards.

 

7.02  Certain Restrictions Under Rule 16b-3.  Upon the effectiveness of any amendment to
Rule 16b-3, this Plan and any Award Agreement for an outstanding Award held by
a Participant then subject to Section 16 of the Exchange Act shall be
deemed to be amended, without further action on the part of the Committee, the
Board or the Participant, to the extent necessary for Awards under the Plan or
such Award Agreement to qualify for the exemption provided by Rule 16b-3, as so
amended, except to the extent any such amendment requires shareholder approval.

 

7.03  Decisions Required to be Made by the Committee.  Other provisions of the Plan and any Award
Agreement notwithstanding, if any decision regarding an Award or the exercise
of any right by a Participant, at any time such Participant is subject to
Section 16 of the Exchange Act, is required to be made or approved by the
Committee in order that a transaction by such Participant will be exempt under
Rule 16b-3, then the Committee shall retain full and exclusive power and authority
to make such decision or to approve or disapprove any such decision by the
Participant.

 

7.04  Term of Awards.  The term of each Award shall be for such period as may be
determined by the Committee; provided, however, that in no event shall the term
of any Incentive Stock Option exceed a period of ten years from the date of its
grant.

 

7.05  Form of Payment of Awards.  Subject to the terms of the Plan and any
applicable Award Agreement, payments or substitutions to be made by the Company
upon the grant,

 

11

 

exercise or other payment
or distribution of an Award may be made in such forms as the Committee shall
determine at the time of grant or thereafter (subject to the terms of
Section 10.01), including, without limitation, cash, Shares, or other
property or any combination thereof, and may be made in a single payment or
substitution, in installments or on a deferred basis, in each case in
accordance with rules and procedures established, or as otherwise determined,
by the Committee.  Such rules and
procedures or determinations may include, without limitation, provisions for
the payment or crediting of reasonable interest on installment or deferred
payments or the grant or crediting of dividend equivalents in respect of
installment or deferred payments.

 

7.06  Limits on Transfer of Awards; Beneficiaries.  No right or interest of a Participant in any
Award shall be pledged, encumbered or hypothecated to or in favor of any Person
other than the Company, or shall be subject to any lien, obligation or
liability of such Participant to any Person other than the Company or a
Subsidiary.  Except to the extent
otherwise determined by the Committee, no Award and no rights or interests
therein shall be assignable or transferable by a Participant otherwise than by
will or the laws of descent and distribution, and any Option or other right to
purchase or acquire Shares granted to a Participant under the Plan shall be
exercisable during the Participant’s lifetime only by such Participant.  A beneficiary, guardian, legal
representative or other Person claiming any rights under the Plan from or
through any Participant shall be subject to all the terms and conditions of the
Plan and any Award Agreement applicable to such Participant as well as any
additional restrictions or limitations deemed necessary or appropriate by the
Committee.

 

7.07  Registration and Listing Compliance.  No Award shall be paid and no Shares or
other securities shall be distributed with respect to any Award in a
transaction subject to the registration requirements of the Securities Act of
1933, as amended, or any state securities law or subject to a listing
requirement under any listing agreement between the Company and any national
securities exchange, and no Award shall confer upon any Participant rights to
such payment or distribution until such laws and contractual obligations of the
Company have been complied with in all material respects.  Except to the extent required by the terms
of an Award Agreement or another contract between the Company and the
Participant, neither the grant of any Award nor anything else contained herein
shall obligate the Company to take any action to comply with any requirements
of any such securities laws or contractual obligations relating to the
registration (or exemption therefrom) or listing of any Shares or other
securities, whether or not necessary in order to permit any such payment or
distribution.

 

7.08  Stock Certificates.  All certificates for Shares delivered under
the terms of the Plan shall be subject to such stop-transfer orders and other
restrictions as the Committee may deem advisable under federal or state
securities laws, rules and regulations thereunder, and the rules of any
national securities exchange or automated quotation system on which Shares are
listed or quoted.  The Committee may
cause a legend or legends to be placed on any such certificates to make
appropriate reference to such restrictions or any other restrictions or
limitations that may be applicable to Shares. 
In addition, during any period in which Awards or Shares are subject to
restrictions or limitations under the terms of the Plan or any Award Agreement,
or during any period during which delivery or receipt of an Award or Shares has
been deferred by the Committee or a Participant, the Committee may require any
Participant to enter into an agreement providing that certificates representing
Shares issuable or issued pursuant to an Award

 

12

 

shall remain in the
physical custody of the Company or such other Person as the Committee may
designate.

 

SECTION 8.  ADJUSTMENT PROVISIONS

 

8.01  If a dividend or other distribution shall be
declared upon the Common Stock payable in shares of Common Stock, the number of
shares of Common Stock then subject to any outstanding Options, Performance
Awards or Other Stock-Based Awards, the number of shares of Common Stock which
may be issued under the Plan but are not then subject to outstanding Options,
Performance Awards or Other Stock-Based Awards and the maximum number of shares
as to which Options or Performance Awards may be granted and as to which shares
may be awarded under Sections 6.02(vi) and 6.04(v), shall be adjusted by
adding thereto the number of shares of Common Stock which would have been
distributable thereon if such shares had been outstanding on the date fixed for
determining the shareholders entitled to receive such stock dividend or
distribution.  Shares of Common Stock so
distributed with respect to any Restricted Stock held in escrow shall also be
held by the Company in escrow and shall be subject to the same restrictions as
are applicable to the Restricted Stock on which they were distributed.

 

If the outstanding shares
of Common Stock shall be changed into or exchangeable for a different number or
kind of shares of stock or other securities of the Company or another
corporation, or cash or other property, whether through reorganization,
reclassification, recapitalization, stock split-up, combination of shares,
merger or consolidation, then there shall be substituted for each share of
Common Stock subject to any then outstanding Option, Performance Award or Other
Stock-Based Award, and for each share of Common Stock which may be issued under
the Plan but which is not then subject to any outstanding Option, Performance
Award or Other Stock-Based Award, the number and kind of shares of stock or
other securities (and in the case of outstanding Options, Performance Awards or
Other Stock-Based Awards, the cash or other property) into which each
outstanding share of the Common Stock shall be so changed or for which each
such share shall be exchangeable. 
Unless otherwise determined by the Committee in its discretion, any such
stock or securities, as well as any cash or other property, into or for which
any Restricted Stock held in escrow shall be changed or exchangeable in any
such transaction shall also be held by the Company in escrow and shall be
subject to the same restrictions as are applicable to the Restricted Stock in
respect of which such stock, securities, cash or other property was issued or
distributed.

 

In case of any
adjustment or substitution as provided for in this Section 8.01, the
aggregate option price for all Shares subject to each then outstanding Option,
Performance Award or Other Stock-Based Award, prior to such adjustment or
substitution shall be the aggregate option price for all shares of stock or
other securities (including any fraction), cash or other property to which such
Shares shall have been adjusted or which shall have been substituted for such
Shares.  Any new option price per share
or other unit shall be carried to at least three decimal places with the last
decimal place rounded upwards to the nearest whole number.

 

If the outstanding
shares of the Common Stock shall be changed in value by reason of any spin-off,
split-off or split-up, or dividend in partial liquidation, dividend in property
other than cash, or extraordinary distribution to shareholders of the Common
Stock, (a) the Committee shall make any adjustments to any then
outstanding Option, Performance Award or Other Stock-

 

13

 

Based Award, which it
determines are equitably required to prevent dilution or enlargement of the
rights of optionees and awardees which would otherwise result from any such
transaction, and (b) unless otherwise determined by the Committee in its
discretion, any stock, securities, cash or other property distributed with
respect to any Restricted Stock held in escrow or for which any Restricted
Stock held in escrow shall be exchanged in any such transaction shall also be
held by the Company in escrow and shall be subject to the same restrictions as
are applicable to the Restricted Stock in respect of which such stock,
securities, cash or other property was distributed or exchanged.

 

No adjustment or
substitution provided for in this Section 8.01 shall require the Company
to issue or sell a fraction of a Share or other security.  Accordingly, all fractional Shares or other
securities which result from any such adjustment or substitution shall be
eliminated and not carried forward to any subsequent adjustment or
substitution.  Owners of Restricted
Stock held in escrow shall be treated in the same manner as owners of Common
Stock not held in escrow with respect to fractional Shares created by an
adjustment or substitution of Shares, except that, unless otherwise determined
by the Committee in its discretion, any cash or other property paid in lieu of
a fractional Share shall be subject to restrictions similar to those applicable
to the Restricted Stock exchanged therefor.

 

If any such
adjustment or substitution provided for in this Section 7 requires the
approval of shareholders in order to enable the Company to grant Incentive
Stock Options, then no such adjustment or substitution shall be made without
the required shareholder approval. Notwithstanding the foregoing, in the case
of Incentive Stock Options, if the effect of any such adjustment or substitution
would be to cause the Option to fail to continue to qualify as an Incentive
Stock Option or to cause a modification, extension or renewal of such Option
within the meaning of Section 424 of the Code, the Committee may elect
that such adjustment or substitution not be made but rather shall use
reasonable efforts to effect such other adjustment of each then outstanding
Option as the Committee, in its discretion, shall deem equitable and which will
not result in any disqualification, modification, extension or renewal (within
the meaning of Section 424 of the Code) of such Incentive Stock Option.

 

SECTION 9.  CHANGE OF CONTROL PROVISIONS

 

9.01  Acceleration of Exercisability and Lapse of
Restrictions.  Unless
otherwise determined by the Committee at the time of grant of an Award or
unless otherwise provided in the applicable Award Agreement, if the
shareholders of the Company shall approve a transaction which upon consummation
would constitute a Change of Control of the Company, or if any Change of
Control of the Company not subject to shareholder approval shall occur:

 

(i)  all outstanding Awards pursuant to which the
Participant may have rights, the exercise of which is restricted or limited,
shall become fully exercisable;

 

(ii)  all restrictions or limitations (including
risks of forfeiture and deferrals) on outstanding Awards subject to
restrictions or limitations under the Plan shall lapse unless prior to such
lapse the right to lapse of restrictions or limitations is waived or deferred
by the Participant; and

 

14

 

(iii)  all performance criteria and other
conditions to payment of Awards under which payments of cash, Shares or other
property are subject to conditions shall be deemed to be achieved or fulfilled
and shall be waived by the Company.

 

9.02  Termination of Employment Following Change of Control.  If within three years following the date of
any Change of Control the employment of a Participant shall be terminated
voluntarily or involuntarily for any reason other than for Cause, then unless
otherwise provided in the applicable Award Agreement, and in addition to any
other rights of post-termination exercise which the Participant (or other
holder of the Award) may have under the Plan or the applicable Award Agreement,
any Option or other Award granted to the Participant and outstanding on the
date of the Change of Control, the payment or receipt of which is dependent
upon exercise by the Participant (or other holder of the Award) shall be
exercisable for a period of 90 days following the date of such termination of
employment but not later than the expiration date of the Award.

 

9.03  Definition of Change of Control.  For purposes of this Section 9, a
“Change of Control” of the Company shall mean any of the following events:

 

(a)  The sale or other disposition by the Company
of all or substantially all of its assets to a single purchaser or to a group
of purchasers, other than to a corporation with respect to which, following
such sale or disposition, more than eighty percent of, respectively, the then
outstanding shares of Common Stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of the
Board is then owned beneficially, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively of the outstanding Common Stock and the combined voting
power of the then outstanding voting securities immediately prior to such sale
or disposition in substantially the same proportion as their ownership of the
outstanding Common Stock and voting power immediately prior to such sale or
disposition;

 

(b)  The acquisition in one or more transactions
by any person or group, directly or indirectly, of beneficial ownership of
twenty percent or more of the outstanding shares of Common Stock or the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of the Board; provided, however, that
any acquisition by (x) the Company or any of its Subsidiaries, or any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
of its Subsidiaries or (y) any person that is eligible, pursuant to Rule
13d-1(b) under the Exchange Act (as in effect on the effective date of the
Plan) to file a statement on Schedule 13G with respect to its beneficial
ownership of Common Stock and other voting securities, whether or not such
person shall have filed a statement on Schedule 13G, unless such person
shall have filed a statement on Schedule 13D with respect to beneficial
ownership of fifteen percent or more of the Company’s voting securities, shall
not constitute a Change of Control;

 

(c)  The Company’s termination of its business
and liquidation of its assets;

 

(d)  There is consummated a merger,
consolidation, reorganization, share exchange, or similar transaction involving
the Company (including a triangular merger),

 

15

 

in any case, unless
immediately following such transaction: 
(i) all or substantially all of the persons who were the beneficial
owners of the outstanding Common Stock and outstanding voting securities of the
Company immediately prior to the transaction beneficially own, directly or
indirectly, more than 60% of the outstanding shares of Common Stock and the
combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors of the corporation resulting from
such transaction (including a corporation or other person which as a result of
such transaction owns the Company or all or substantially all of the Company’s
assets through one or more subsidiaries (a “Parent Company”)) in substantially
the same proportion as their ownership of the Common Stock and other voting
securities of the Company immediately prior to the consummation of the
transaction, (ii) no person (other than the Company, any employee benefit
plan sponsored or maintained by the Company or, if reference was made to equity
ownership of any Parent Company for purposes of determining whether clause (i)
above is satisfied in connection with the transaction, such Parent Company)
beneficially owns, directly or indirectly, 20% or more of the outstanding
shares of Common Stock or the combined voting power of the voting securities
entitled to vote generally in the election of directors of the corporation
resulting from such transaction and (iii) individuals who were members of
the Board immediately prior to the consummation of the transaction constitute
at least a majority of the members of the board of directors resulting from
such transaction (or, if reference was made to equity ownership of any Parent
Company for purposes of determining whether clause (i) above is satisfied
in connection with the transaction, such Parent Company); or

 

(e)  The following individuals cease for any
reason to constitute a majority of the number of directors then serving:  individuals who, on the date hereof,
constitute the entire Board and any new director (other than a director whose
initial assumption of office is in connection with an actual or threatened
election contest, including but not limited to a consent solicitation, relating
to the election of directors of the Company) whose appointment or election by
the Board or nomination for election by the Company’s shareholders was approved
by a vote of at least two-thirds (2/3) of the directors then still in office
who either were directors on the effective date of the Plan or whose appointment,
election or nomination for election was previously so approved.

 

SECTION 10.  AMENDMENTS TO AND TERMINATION OF THE PLAN

 

10.01  The Board may amend, alter, suspend,
discontinue or terminate the Plan without the consent of shareholders or
Participants, except that, without the approval of the shareholders of the
Company, no amendment, alteration, suspension, discontinuation or termination
shall be made if shareholder approval is required by any federal or state law
or regulation or by the rules of any stock exchange on which the Shares may
then be listed, or if the amendment, alteration or other change materially
increases the benefits accruing to Participants, increases the number of Shares
available under the Plan or modifies the requirements for participation under
the Plan, or if the Board in its discretion determines that obtaining such
shareholder approval is for any reason advisable; provided, however, that
except as provided in Section 7.02, without the consent of the
Participant, no amendment, alteration, suspension, discontinuation or
termination of the Plan may materially and adversely affect the rights of such
Participant under any Award theretofore granted to him.  The Committee may, consistent with the terms
of the Plan, waive any conditions or rights under, amend any terms of, or
amend, alter, suspend, discontinue or

 

16

 

terminate, any Award
theretofore granted, prospectively or retrospectively; provided, however, that
except as provided in Section 7.02, without the consent of a Participant,
no amendment, alteration, suspension, discontinuation or termination of any
Award may materially and adversely affect the rights of such Participant under
any Award theretofore granted to him; and provided further that, except as
provided in Section 8.01 of the Plan, the exercise price of any
outstanding Option may not be reduced, whether through amendment, cancellation
or replacement, unless such reduction is approved by the shareholders of the Company.

 

SECTION 11.  GENERAL PROVISIONS

 

11.01  No Right to Awards; No Shareholder Rights.  No Participant or employee shall have any
claim to be granted any Award under the Plan, and there is no obligation for
uniformity of treatment of Participants and employees, except as provided in
any other compensation arrangement.  No
Award shall confer on any Participant any of the rights of a shareholder of the
Company unless and until Shares are in fact issued to such Participant in
connection with such Award.

 

11.02  Withholding.  To the extent required by applicable Federal, state, local or
foreign law, the Participant or his successor shall make arrangements
satisfactory to the Company, in its discretion, for the satisfaction of any
withholding tax obligations that arise in connection with an Award.  The Company shall not be required to issue
any Shares or make any cash or other payment under the Plan until such
obligations are satisfied.

 

The Company is authorized
to withhold from any Award granted or any payment due under the Plan, including
from a distribution of Shares, amounts of withholding taxes due with respect to
an Award, its exercise or any payment thereunder, and to take such other action
as the Committee may deem necessary or advisable to enable the Company and
Participants to satisfy obligations for the payment of such taxes.  This authority shall include authority to
withhold or receive Shares, Awards or other property and to make cash payments
in respect thereof in satisfaction of such tax obligations.

 

11.03  No Right to Employment.  Nothing contained in the Plan or any Award
Agreement shall confer, and no grant of an Award shall be construed as
conferring, upon any Participant any right to continue in the employ of the
Company or to interfere in any way with the right of the Company to terminate
his employment at any time or increase or decrease his compensation from the
rate in existence at the time of granting of an Award, except as provided in
any Award Agreement or other compensation arrangement.

 

11.04  Unfunded Status of Awards; Creation of Trusts.  The Plan is intended to constitute an
“unfunded” plan for incentive and deferred compensation.  With respect to any payments not yet made to
a Participant pursuant to an Award, nothing contained in the Plan or any Award
Agreement shall give any such Participant any rights that are greater than
those of a general unsecured creditor of the Company; provided, however, that
the Committee may authorize the creation of trusts or make other arrangements
to meet the Company’s obligations under the Plan to deliver cash, Shares or
other property pursuant to any Award, which trusts or other arrangements shall
be consistent with the “unfunded” status of the Plan unless the Committee
otherwise determines.

 

17

 

11.05  No Limit on Other Compensatory Arrangements.  Nothing contained in the Plan shall prevent
the Company from adopting other or additional compensation arrangements (which
may include, without limitation, employment agreements with executives and
arrangements which relate to Awards under the Plan), and such arrangements may
be either generally applicable or applicable only in specific cases.  Notwithstanding anything in the Plan to the
contrary, the terms of each Award shall be construed so as to be consistent
with such other arrangements in effect at the time of the Award.

 

11.06  No Fractional Shares.  No fractional Shares shall be issued or
delivered pursuant to the Plan or any Award. 
The Committee shall determine whether cash, other Awards or other
property shall be issued or paid in lieu of fractional Shares or whether such
fractional Shares or any rights thereto shall be forfeited or otherwise
eliminated.

 

11.07  Governing Law.  The validity, interpretation, construction and effect of the Plan
and any rules and regulations relating to the Plan shall be governed by the
laws of the Commonwealth of Pennsylvania (without regard to the conflicts of
laws thereof), and applicable Federal law.

 

11.08  Severability.  If any provision of the Plan or any Award is or becomes or is
deemed invalid, illegal or unenforceable in any jurisdiction, or would
disqualify the Plan or any Award under any law deemed applicable by the
Committee, such provision shall be construed or deemed amended to conform to
applicable laws or if it cannot be construed or deemed amended without, in the
determination of the Committee, materially altering the intent of the Plan or
Award, it shall be deleted and the remainder of the Plan or Award shall remain
in full force and effect; provided, however, that, unless otherwise determined
by the Committee, the provision shall not be construed or deemed amended or
deleted with respect to any Participant whose rights and obligations under the
Plan are not subject to the law of such jurisdiction or the law deemed
applicable by the Committee.

 

SECTION 12.  EFFECTIVE DATE AND TERM OF THE PLAN

 

12.01  The effective date and date of adoption of
the Plan shall be February 25, 2004, the date of adoption of the Plan by
the Board, provided that such adoption of the Plan is approved by a majority of
the votes cast at a duly held meeting of shareholders held on or prior to
February 24, 2005 at which a quorum representing a majority of the
outstanding voting stock of the Company is, either in person or by proxy,
present and voting.  Notwithstanding
anything else contained in the Plan or in any Award Agreement, no Option or
other purchase right granted under the Plan may be exercised, and no Shares may
be distributed pursuant to any Award granted under the Plan, prior to such
shareholder approval or prior to any required approval or consent from those
governmental agencies having jurisdiction in these matters.  In the event such shareholder or regulatory
approval is not obtained, all Awards granted under the Plan shall automatically
be deemed void and of no effect.  Absent
additional shareholder approval, (1) no Performance Award may be granted
under the Plan subsequent to the Company’s Annual Meeting of Shareholders in
2009, and (2) no other Award may be granted under the Plan subsequent to
March 16, 2009, except that Reload Options may be granted pursuant to
Reload Option Rights then outstanding.

 

18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]