Document:

AMENDMENT TO FOURTH
AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

        This
Amendment to Fourth Amended and Restated Employment Agreement (the “Amendment”),
dated as of February 5, 2008, is entered into by and between Hanger Prosthetics &
Orthotics, Inc., a Delaware corporation (the “Company”) and Ivan R. Sabel (the
“Executive”). 

        WHEREAS,
the parties hereto desire to amend the Fourth Amended and Restated Employment Agreement,
effective as of January 1, 2005, by and between the Company and the Executive (the
“Agreement”), to set forth an increase in the Executive’s compensation and
a change in the Executive’s title, with such amendments to be effective as of the
dates set forth herein; and 

        WHEREAS,
the Company desires to continue to employ the Executive and to incentivize the Executive
to remain in the employ of the Company. 

        NOW,
THEREFORE, in consideration of the promises and mutual agreements set forth below, both
parties agree as follows: 

SECTION 1: AMENDMENT TO
AGREEMENT 

        1.1    
Section 2 of the Agreement shall be deleted in its entirety and replaced with the
following: “Effective as of March 1, 2008, the Executive shall serve both the Company
and Hanger in the position of Chairman. The Executive shall faithfully and diligently
perform the duties appropriate to said position, which, in addition to those
responsibilities assigned to him from time to time by the Board of Directors of Hanger
(the “Board of Directors”), shall include, among other things, the general
supervision of the business of Hanger. The Executive shall devote his full business time
and attention to the performance of his duties and responsibilities hereunder.” 

        1.2    
Section 3.1 of the Agreement shall be amended by deleting the first two sentences in their
entirety and replacing them with the following: “Effective as of January 1, 2008, the
Company shall pay to the Executive a minimum base salary at the rate of Five Hundred
Eighty-Four Thousand Dollars ($584,000.00) per annum, payable in accordance with the
standard payroll practices of the Company (the “Base Salary”).” 

SECTION 2: OTHER
PROVISIONS 

        2.1    
Except as expressly provided for in this Amendment, all of the terms, conditions and
provisions of the Agreement remain unaltered and are in full force and effect. The
Agreement and this Amendment shall be read and construed as one Agreement. 

        2.2    
If any provision of this Amendment is construed to be invalid, illegal or unenforceable by
a court of competent jurisdiction, then the remaining provisions hereof shall not be
affected thereby and shall be enforceable without regard thereto. 

        2.3    
This Amendment may be executed in any number of counterparts, each of which when so
executed and delivered shall be an original hereof, and it shall not be necessary in
making proof of this Amendment to produce or account for more than one counterpart hereof.
The parties further agree that facsimile signatures or signatures scanned into .pdf (or
similar) format and sent by e-mail shall be deemed original signatures. 

        2.4    
Section and subsection headings in this Amendment are for convenience of reference only,
do not constitute a part of this Amendment, and shall not affect its interpretation. 

        2.5    
All words used in this Amendment shall be construed to be of such number and gender as the
context requires or permits. 

        2.6    
THIS AMENDMENT IS MADE UNDER, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED SOLELY
THEREIN, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. 

[REMAINDER OF PAGE LEFT
INTENTIONALLY BLANK.] 

2 

        IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the 5th day of
February, 2008. 

		HANGER PROSTHETICS & ORTHOTICS, INC.
	

 	By:  /s/ Brian Wheeler
		        Brian Wheeler, Vice President
	

 	/s/ Ivan R. Sabel
		Ivan R. Sabel

3AMENDMENT TO FOURTH
AMENDED AND RESTATED EMPLOYMENT AGREEMENT 

        This
Amendment to Fourth Amended and Restated Employment Agreement (the “Amendment”),
dated as of February 5, 2008, is entered into by and between Hanger Prosthetics &
Orthotics, Inc., a Delaware corporation (the “Company”) and Thomas F. Kirk (the
“Executive”). 

        WHEREAS,
the parties hereto desire to amend the Fourth Amended and Restated Employment Agreement,
effective as of January 1, 2005, by and between the Company and the Executive (the
“Agreement”), to, among other things, set forth an increase in the
Executive’s compensation and a change in the Executive’s title, with such
amendments to be effective as of the dates set forth herein; and 

        WHEREAS,
the Company desires to continue to employ the Executive and to incentivize the Executive
to remain in the employ of the Company. 

        NOW,
THEREFORE, in consideration of the promises and mutual agreements set forth below, both
parties agree as follows: 

SECTION 1: AMENDMENT TO
AGREEMENT 

        1.1    Section
2 of the Agreement shall be deleted in its entirety and replaced with the following: 

	 	
Effective
as of March 1, 2008, the Executive shall serve Hanger in the position of President and
Chief Executive Officer and the Company in the position of Chief Executive Officer. The
Executive shall faithfully and diligently perform the duties appropriate to said position,
which, in addition to those responsibilities assigned to him from time to time by the
Board of Directors of Hanger (the “Board of Directors”), shall include, among
other things, responsibility for the overall performance of Hanger and all of
Hanger’s subsidiaries. The Executive shall devote his full business time and
attention to the performance of his duties and responsibilities hereunder. 

        1.2    
Section 3.1 of the Agreement shall be amended by deleting the first two sentences in their
entirety and replacing them with the following: “Effective as of January 1, 2008, the
Company shall pay to the Executive a minimum base salary at the rate of Five Hundred
Eighty Thousand Dollars ($580,000.00) per annum, payable in accordance with the standard
payroll practices of the Company (the “Base Salary”).” 

        1.3    
Section 3.2(a) of the Agreement shall be amended by deleting the second sentence in its
entirety and replacing it with the following: “Effective as of January 1, 2008, the
Executive’s target bonus is eighty percent (80%) of the Base Salary (the “Target
Bonus”) and is contingent on the Executive meeting certain performance criteria and
Hanger achieving certain year-end financial criteria, and up to one hundred sixty percent
(160%) of the Base Salary (the “Maximum Bonus”) if the Executive exceeds certain
performance criteria and Hanger exceeds certain year-end financial criteria all as
determined in the reasonable discretion of the Board of Directors and its Compensation
Committee.” 

        1.4    Effective
as of January 1, 2008, Section 3.7 of the Agreement shall be deleted in its entirety. 

        1.5    Effective
as January 1, 2008, Section 3.8(d) of the Agreement shall be deleted in its entirety. 

        1.6    
Effective as of January 1, 2008, the last sentence of Section 5.1 of the Agreement shall
be deleted in its entirety. 

SECTION 2: OTHER
PROVISIONS 

        2.1    
Except as expressly provided for in this Amendment, all of the terms, conditions and
provisions of the Agreement remain unaltered and are in full force and effect. The
Agreement and this Amendment shall be read and construed as one Agreement. 

        2.2    
If any provision of this Amendment is construed to be invalid, illegal or unenforceable by
a court of competent jurisdiction, then the remaining provisions hereof shall not be
affected thereby and shall be enforceable without regard thereto. 

        2.3    
This Amendment may be executed in any number of counterparts, each of which when so
executed and delivered shall be an original hereof, and it shall not be necessary in
making proof of this Amendment to produce or account for more than one counterpart hereof.
The parties further agree that facsimile signatures or signatures scanned into .pdf (or
similar) format and sent by e-mail shall be deemed original signatures. 

        2.4    
Section and subsection headings in this Amendment are for convenience of reference only,
do not constitute a part of this Amendment, and shall not affect its interpretation. 

        2.5    
All words used in this Amendment shall be construed to be of such number and gender as the
context requires or permits. 

        2.6    
THIS AMENDMENT IS MADE UNDER, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF DELAWARE APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED SOLELY
THEREIN, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW. 

[REMAINDER OF PAGE LEFT
INTENTIONALLY BLANK.]  

2 

        IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the 5th day of
February, 2008. 

		HANGER PROSTHETICS & ORTHOTICS, INC.
	

 	By:  /s/ Brian Wheeler
		        Brian Wheeler, Vice President
	

 	/s/ Thomas F. Kirk
		Thomas F. Kirk

3efc8-0316_6517443ex44.htm

    EXHIBIT
      4.4

     

    BROADPOINT
      SECURITIES GROUP, INC.

     

    2007
      INCENTIVE COMPENSATION PLAN

     

    
      
        	
              	
                1.

              	
                Purpose
                  of the Plan 

              

      

    

     

    The
      purpose of this 2007 Incentive Compensation Plan (the “Plan”) is to advance the
      interests of the Broadpoint Securities Group, Inc., a New York corporation
      (the
“Company”), and its shareholders by providing a means (a) to attract, retain,
      and reward officers, other employees, and persons who provide services to the
      Company and its subsidiaries, (b) to link compensation to measures of the
      Company’s performance in order to provide additional incentives, including
      stock-based incentives and cash-based annual incentives, to such persons for
      the
      creation of shareholder value, and (c) to enable such persons to acquire or
      increase a proprietary interest in the Company in order to promote a closer
      identity of interests between such persons and the Company’s
      shareholders.  The Plan is intended to qualify certain compensation
      awarded under the Plan as “performance-based” compensation under Code Section
      162(m) to the extent deemed appropriate by the Committee which administers
      the
      Plan.

     

    
      
        	
              	
                2.

              	
                Definitions
                  

              

      

    

     

    The
      definitions of awards under the Plan, including Options, SARs, Restricted Stock,
      Deferred Stock, Stock granted as a bonus or in lieu of other awards, and Other
      Stock-Based Awards, are set forth in Section 6, and the definition of
      Performance Awards, including Annual Incentive Awards, is set forth in Section
      8.  Such awards, together with any other right or interest granted to
      a Participant under the Plan, are termed “Awards.” In addition to such terms and
      the terms defined in Section 1, the following terms shall be defined as set
      forth below:

     

    2.1           
      “Annual Incentive Award” means a conditional right granted to a Participant
      under Section 8.3 to receive a cash payment, Shares or other Awards based on
      performance during all or part of a specified fiscal year.

     

    2.2           
      “Beneficiary” means the person(s) or trust(s) which have been designated by a
      Participant in his or her most recent written beneficiary designation filed
      with
      the Committee to receive the benefits specified under the Plan upon such
      Participant’s death.  If, upon a Participant’s death, there is no
      designated Beneficiary or surviving designated Beneficiary, then the term
      Beneficiary means the person(s) or trust(s) entitled by will or the laws of
      descent and distribution to receive such benefits.

     

    2.3           
      “Board” means the Board of Directors of the Company.

     

    2.4           
      “Cause,” unless defined otherwise in the terms and conditions of a Participant’s
      Award, means (i) the Participant’s conviction of, or plea of guilty or “no
      contest” to, any felony; (ii) Participant’s conviction of, or plea of guilty or
“no contest” to, a violation of criminal law involving the Company and its
      business; (iii) the Participant’s commission of an act of fraud or theft, or
      material dishonesty in connection with his performance of duties to Company
      and
      its affiliates; or (iv) the Participant’s willful refusal or gross neglect by
      the Participant to perform the duties reasonably assigned to him and consistent
      with his position with Company and its affiliates or otherwise to comply with
      the material terms of any employment agreement between the Company or any of
      its
      affiliates and the Participant, which refusal or gross neglect continues for
      more than fifteen (15) days after the Participant receives written notice
      thereof from the Company providing reasonable detail of the asserted refusal
      or
      gross neglect (and which is not due to a physical or mental
      impairment).

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    2.5           
      “Code” means the Internal Revenue Code of 1986, as amended, including
      regulations thereunder and successor provisions and regulations
      thereto.

     

    2.6           
      “Committee” means the Compensation Committee of the Board, and the term
“Committee” shall refer to the full Board in any case in which it is performing
      any function of the Committee under the Plan.  A member of the
      Committee is not required by the terms of the Plan to be a Qualified Member
      at
      the time of appointment or during his or her term of service on the
      Committee.

     

    2.7           
      “Company” has the meaning set forth in Section 1 above.

     

    2.8           
      “Covered Employee” has the meaning as defined in Section 8.5 of the
      Plan.

     

    2.9           
      “Effective Date” means the date on which the Plan takes effect, as set forth in
      Section 9.14 of the Plan.

     

    2.10           
      “Fair Market Value,” means, with respect to Shares, Awards, or other property,
      the fair market value of such Shares, Awards, or other property determined
      by
      such reasonable methods or procedures as shall be established from time to
      time
      by the Committee in compliance with the requirements of Section 409A of the
      Code.  At any time while Shares are traded on the NASDAQ Global
      Market, the Fair Market Value of a Share as of any given date means the closing
      sales price of a Share in composite trading of NASDAQ Global Market-listed
      securities for that date or, if no sale occurred on that date, on the latest
      preceding day on which a sale occurred, as reported by a reliable reporting
      service.

     

    2.11           
      “Participant” means an individual who has been granted an Award under the Plan,
      for so long as the Company has any obligation under the Plan with respect to
      such Award or such Award remains subject to any restriction under the
      Plan.

     

    2.12           
      “Plan” has the meaning set forth in Section 1 above.

     

    2.13           
      “Preexisting Plans” mean the Company’s 1989 Stock Incentive Plan, 1999 Long-Term
      Incentive Plan, 2001 Long-Term Incentive Plan and Restricted Stock Inducement
      Plan for Descap Employees, each as amended.

     

    2.14           
      “Qualified Member” means a member of the Committee who is a “Non-Employee
      Director” within the meaning of Rule 16b-3(b)(3) under the Securities Exchange
      Act of 1934 and an “outside director” within the meaning of Regulation 1.162-27
      under Code Section 162(m).

     

    2.15           
      “Retirement,” unless defined otherwise in the terms and conditions of a
      Participant’s Award, means a Participant’s termination of employment with the
      Company and all of its affiliates for reasons other than Cause on or after
      (i)
      having completed at least five years of service and (ii) reaching any age,
      that,
      when added to service with the Company and its affiliates (in each case,
      expressed as completed years and completed months), equals at least
      60.

     

    2.16           
      “Shares” means shares of common stock, par value $0.01 per share, of the Company
      and such other securities as may be substituted or resubstituted for Shares
      pursuant to Section 5.3.

     

    
      
        	
              	
                3.

              	
                Administration

              

      

    

     

    3.1           
      Authority of the
      Committee.  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:

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

     

    (a)           
      to select persons to whom Awards may be granted;

     

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

     

    (c)           
      to determine the number of Awards to be granted, the number of Shares to which
      an Award will relate, the cash amount payable in settlement of an Annual
      Incentive Award and the performance conditions applicable thereto, all other
      terms and conditions of any Award granted under the Plan (including, but not
      limited to, any exercise price, grant price, or purchase price, any restriction
      or condition, any schedule or performance conditions for the lapse of
      restrictions or conditions relating to transferability, forfeiture,
      exercisability, or settlement of an Award, and accelerations or modifications
      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;

     

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

     

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

     

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

     

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

     

    (h)           
      to correct any defect or supply any omission or reconcile any inconsistency
      in
      the Plan and to construe and interpret the Plan and any Award, rules and
      regulations, Award agreement, or other instrument hereunder; and

     

    (i)           
      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.

     

    3.2           
      Manner of Exercise of
      Committee Authority.  Any action of the Committee with respect
      to the Plan shall be final, conclusive, and binding on all persons, including
      the Company, subsidiaries of the Company, Participants, any person claiming
      any
      rights under the Plan from or through any Participant, 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.  At any time that
      a member of the Committee is not a Qualified Member, (i) any action of the
      Committee relating to an Award intended by the Committee to qualify as
“performance-based compensation” within the meaning of Code Section 162(m) and
      regulations thereunder may be taken by a subcommittee, designated by the
      Committee or the Board, composed solely of two or more Qualified Members, and
      (ii) any action relating to an Award granted or to be granted to a Participant
      who is then subject to Section 16 of the Securities Exchange Act of 1934 in
      respect of the Company may be taken either by such a subcommittee or by the
      Committee but with each such member who is not a Qualified Member abstaining
      or
      recusing himself or herself from such action, provided that, upon such
      abstention or recusal, the Committee remains composed of two or more Qualified
      Members.  Such action, authorized by such a subcommittee or by the
      Committee upon the abstention or recusal of such non-Qualified Member(s), shall
      be the action of the Committee for purposes of the Plan.  The
      Committee may delegate to officers or managers of the Company or any subsidiary
      of the Company the authority, subject to such 

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

     

    terms
      as
      the Committee shall determine, to perform functions designated by the Committee,
      to the extent that such delegation is permitted under applicable
      laws.  Other provisions of the Plan notwithstanding, the Board may
      perform any function of the Committee under the Plan, in order to ensure that
      transactions under the Plan are exempt under Rule 16b-3 or for any other reason;
      provided, however
      , that authority
      specifically reserved to the Board under the terms of the Plan, the Company’s
      Certificate of Incorporation or By-Laws, or applicable law shall be exercised
      by
      the Board and not by the Committee.

     

    3.3           
      Limitation of
      Liability.  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 any officer or other employee of the Company or any subsidiary, the Company’s
      independent certified public accountants, or any executive compensation
      consultant, legal counsel, or other professional retained by the Company to
      assist in the administration of the Plan.  No member of the Committee,
      nor any officer or employee of the Company acting on behalf of the Committee,
      shall be personally liable for any action, determination, or interpretation
      taken or made in good faith with respect to the Plan, and all members of the
      Committee and any officer or employee of the Company acting on behalf of the
      Committee or members thereof shall, to the extent permitted by law, be fully
      indemnified and protected by the Company with respect to any such action,
      determination, or interpretation.

     

    
      
        	
              	
                4.

              	
                Eligibility

              

      

    

     

    Persons
      who are eligible to be granted Awards under the Plan include (i) any executive
      officer and other officer or employee of the Company or any subsidiary,
      including any such person who may also be a director of the Company, (ii) any
      other person who provides substantial personal services to the Company or any
      subsidiary not solely in the capacity as a director, and (iii) any person who
      has agreed to become an employee of the Company or a subsidiary provided that no such person
      may receive any payment or exercise any right relating to an Award until such
      person has commenced employment.

     

    
      
        	
              	
                5.

              	
                Limitation
                  on Shares Available for Awards; Per-Person Limitations;
                  Adjustments

              

      

    

     

    5.1           
      Aggregate Number of Shares
      Available for Awards.

     

    (a)           
      [Evergreen Share
      Reservation.  Awards relating to Shares may be granted if, at
      the time of grant of each Award, the aggregate number of Shares subject to
      outstanding Awards and outstanding awards under the Preexisting Plans plus
      the
      number of Shares subject to the Award being granted do not exceed 25% of the
      number of Shares issued and outstanding immediately prior to the grant of such
      Award.  For purposes of this Section 5.1(a), an Option or SAR is
“outstanding” until it is exercised and any other Award is “outstanding” in the
      calendar year in which it is granted and for so long thereafter as it remains
      subject to any vesting condition requiring continued employment, and options
      and
      other awards under each of the Preexisting Plans are treated as “outstanding” in
      accordance with the terms of each such Preexisting Plan.  The
      foregoing notwithstanding, the maximum number of shares that may be subject
      to
      ISOs granted under the Plan shall be 2.5 million, subject to adjustment as
      provided in Section 5.3.]1

     

    (a)           
      [Evergreen Share
      Reservation.  Awards relating to Shares may be granted if, at
      the time of grant of each Award, the aggregate number of Shares subject to
      outstanding Awards and outstanding awards under the Preexisting Plans plus
      the
      number of Shares subject to the Award being granted do not exceed the sum of
      (x)
      10,675,000 Shares (subject to adjustment as provided in Section 5.3) plus (y)
      25% of the number of Shares issued and outstanding immediately prior to the
      grant of such Award.  For purposes of this Section 5.1(a), an Option
      or SAR is “outstanding” until it is exercised and any other Award is
“outstanding” in the calendar year in which it is granted and for so long
      thereafter as it remains 

     

     

    __________________

    1
      As currently in effect.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

     

    subject
      to any vesting condition requiring continued employment, and options and other
      awards under each of the Preexisting Plans are treated as “outstanding” in
      accordance with the terms of each such Preexisting Plan.  The
      foregoing notwithstanding, the maximum number of shares that may be subject
      to
      ISOs granted under the Plan shall be 2.5 million, subject to adjustment as
      provided in Section 5.3.]2

     

    (b)           
      Type of Shares
      Deliverable.  The Shares delivered in connection with Awards
      may consist, in whole or in part, of authorized and unissued Shares, treasury
      Shares or Shares acquired in the market for the account of a
      Participant.

     

    5.2           
      Annual Per-Person
      Limitations.  In each calendar year during any part of which
      the Plan is in effect, a Participant may be granted Awards under Section 6
      (including Performance Awards under Section 8 based on Awards authorized under
      Section 6) relating to up to his or her Annual Limit, which consists of an
      Annual Share Award Limit and an Annual Performance Award Limit.  A
      Participant’s Annual Share Award Limit, in any year during any part of which the
      Participant is then eligible under the Plan, shall equal two million Shares
      plus
      the amount of the Participant’s unused Annual Share Award Limit relating to the
      same type of Award as of the close of the previous year, subject to adjustment
      as provided in Section 5.3.  With respect to Annual Incentive Awards
      pursuant to Section 8, the maximum amount payable to a Participant in settlement
      of such Awards relating to a given fiscal year shall be (i), in the case of
      the
      Chief Executive Officer or any other executive officer principally having
      Company-wide responsibilities, the greater of 25% of Company profits after
      taxes
      but before payment of bonuses to all employees or 10% of Company revenue, and
      (ii), in the case of an executive officer or other person principally having
      responsibilities for one or more specific business units, the greatest of 30%
      of
      the net income of such business unit(s), 10% of the revenues of such business
      unit(s), or 25% of the economic value created (“EVC”, as defined in Section
      8.2(b) below) of such business unit(s).  With respect to Performance
      Awards pursuant to Section 8, other than Annual Incentive Awards, which
      Performance Awards are not valued by reference to Shares at the date of grant
      (so that the foregoing limitations would not operate as an effective limitation
      satisfying Treasury Regulation 1.162-27(e)(4)), a Participant may not be granted
      Awards authorizing the earning during any calendar year of an amount that
      exceeds the Participant’s Annual Performance Award Limit, which for this purpose
      shall equal $3.0 million plus the amount of the Participant’s unused cash Annual
      Performance Award Limit as of the close of the previous year.  For
      this purpose, (i) “earning” means satisfying performance conditions so that an
      amount becomes payable, without regard to whether it is to be paid currently
      or
      on a deferred basis or continues to be subject to any service requirement or
      other non-performance condition, and (ii) a Participant’s Annual Performance
      Award Limit is used to the extent a cash amount or number of shares may be
      potentially earned or paid under an Award, regardless of whether such amount
      or
      shares are in fact earned or paid.  The per-person limitations on
      Awards under Section 6, Annual Incentive Awards, and other Performance Awards
      are each separate from one another.

     

    5.3           
      Adjustments.  In
      the event of any change in the outstanding Shares after the Effective Date
      by
      reason of any Share dividend or split, reorganization, recapitalization, merger,
      consolidation, spin-off, combination or exchange of Shares, repurchase,
      liquidation, dissolution or other corporate exchange, any large, special and
      non-recurring dividend or distribution to shareholders, or other similar
      corporate transaction, the Committee may make such substitution or adjustment,
      if any, as it deems to be equitable and in order to preserve, without enlarging,
      the rights of Participants, as to (i) the number and kind of Shares which may
      be
      delivered in connection with Awards granted thereafter, including the number
      of
      shares reserved for incentive stock options under Section 5.1(a), (ii) the
      number and kind of Shares by which annual per-person Award limitations are
      measured under Section 5.2, (iii) the number and kind of Shares subject to
      or
      deliverable in respect of outstanding Awards, and (iv) the exercise price,
      grant
      price or purchase price relating to any Award and/or make provision for payment
      of cash, other 

     

     

    ___________________________

    2
      Proposed provisions
      subject to shareholder approval.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

     

    Awards
      or
      other property in respect of any outstanding Award.  In addition, the
      Committee is authorized to make adjustments in the terms and conditions of,
      and
      the criteria included in, Awards (including Performance Awards, Annual Incentive
      Awards, and the performance goals relating thereto) in recognition of unusual
      or
      nonrecurring events (including events described in the preceding sentence,
      as
      well as acquisitions and dispositions of businesses and assets) affecting the
      Company, any subsidiary or any business unit, or the financial statements of
      the
      Company or any subsidiary, or in response to changes in applicable laws,
      regulations, accounting principles, tax rates and regulations or business
      conditions or in view of the Committee’s assessment of the business strategy of
      the Company, any subsidiary or business unit thereof, performance of comparable
      organizations, economic and business conditions, personal performance of a
      Participant, and any other circumstances deemed relevant; provided that no such
      adjustment shall be authorized or made if and to the extent that such authority
      or the making of such adjustment would cause Options, SARs, Performance Awards
      granted under Section 8.2 hereof, or Annual Incentive Awards granted under
      Section 8.3 hereof to Participants designated by the Committee as Covered
      Employees and intended to qualify as “performance-based compensation” under Code
      Section 162(m) and regulations thereunder otherwise to fail to qualify as
“performance-based compensation” under Code Section 162(m) and regulations
      thereunder.

     

    
      
        	
              	
                6.

              	
                Specific
                  Terms of Awards

              

      

    

     

    6.1           
      General.  Awards
      may be granted on the terms and conditions set forth in this Section
      6.  In addition, the Committee may impose on any Award, at the date of
      grant or thereafter (subject to Section 9.5), such additional terms and
      conditions, not inconsistent with the provisions of the Plan, as the Committee
      shall determine, including terms requiring forfeiture of Awards in the event
      of
      termination of employment or service by the Participant or upon the occurrence
      of other events (including, without limitation, the existence of
      Cause).  The Committee may require payment of consideration in
      connection with any Award, including for purposes of complying with requirements
      of applicable state corporation law.

     

    6.2           
      Options.  The
      Committee is authorized to grant options to purchase Shares (“Options”) to
      Participants on the following terms and conditions:

     

    (a)           
      Exercise
      Price.  The exercise price per Share purchasable under an
      Option shall be determined by the Committee; provided, however,
      that such exercise
      price shall be not less than the Fair Market Value of a share on the date of
      grant of such Option.

     

    (b)           
      Time and Method 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
      such
      exercise price may be paid or deemed to be paid, the form of such payment,
      including cash, Shares, other Awards or awards granted under other Company
      plans, or other property (including notes or other contractual obligations
      of
      Participants to make payment on a deferred basis, or through broker-assisted
      “cashless exercise” arrangements, to the extent permitted by applicable law),
      and the methods by which Shares will be delivered or deemed to be delivered
      to
      Participants.

     

    (c)           
      Incentive Stock
      Options.  The terms of any incentive stock option (“ISO”)
      granted under the Plan shall comply in all respects with the provisions of
      Section 422 of the Code, including but not limited to the requirement that
      no
      ISO shall be granted more than ten years after the Effective
      Date.  Anything in the Plan to the contrary notwithstanding, no term
      of the Plan relating to ISOs shall be interpreted, amended, or altered, nor
      shall any discretion or authority granted under the Plan be exercised, so as
      to
      disqualify either the Plan or any ISO under Section 422 of the Code, unless
      the
      Participant has first requested such disqualification.

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

     

    6.3           
      Stock Appreciation
      Rights.  The Committee is authorized to grant stock
      appreciation rights (“SARs”) to Participants on the following terms and
      conditions:

     

    (a)           
      Right to
      Payment.  An SAR shall confer on the Participant to whom it is
      granted a right to receive, upon exercise thereof, the excess of (a) the Fair
      Market Value of one Share on the date of exercise, over (B) the grant price
      of
      the SAR as determined by the Committee as of the date of grant of the SAR,
      which
      shall be not less than the Fair Market Value of one Share on the date of
      grant.

     

    (b)           
      Other
      Terms.  The Committee shall determine the time or times at
      which an SAR may be exercised in whole or in part, the method of exercise,
      method of settlement, whether cash or Shares shall be payable to the Participant
      upon exercise, the method by which Shares will be delivered or deemed to be
      delivered to Participants, whether or not an SAR shall be in tandem with any
      other Award, and any other terms and conditions of an SAR.

     

    6.4           
      Restricted
      Stock.  The Committee is authorized to grant Awards, in the
      form of Shares issued at or shortly after grant of the Award subject to
      restrictions (“Restricted Stock”), to Participants on the following terms and
      conditions:

     

    (a)           
      Grant and
      Restrictions.  Restricted Stock shall be subject to such
      restrictions on transferability and other restrictions, if any, as the Committee
      may impose, which restrictions may lapse separately or in combination at such
      times, under such circumstances, in such installments, or otherwise as the
      Committee may determine.  Except to the extent restricted under the
      terms of the Plan and any Award agreement relating to the Restricted Stock,
      a
      Participant granted Restricted Stock shall have all of the rights of a
      shareholder including the right to vote Restricted Stock or the right to receive
      dividends thereon.

     

    (b)           
      Forfeiture.  Except
      as otherwise determined by the Committee, upon termination of employment or
      service 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, or
      may
      determine in any individual case, that restrictions or forfeiture conditions
      relating to Restricted Stock will lapse in whole or in part in the event of
      terminations resulting from specified causes (including, without limitation,
      Retirement or termination by the Company without Cause), provided that the payment
      or
      settlement of any Award subject to Section 409A of the Code may be accelerated
      only to the extent, and only upon the occurrence of events or causes, permitted
      under such Section.

     

    (c)           
      Certificates for
      Shares.  Restricted Stock granted under the Plan may be
      evidenced in such manner as the Committee shall determine.  If
      certificates representing Restricted Stock are registered in the name of the
      Participant, such certificates shall bear an appropriate legend referring to
      the
      terms, conditions, and restrictions applicable to such Restricted Stock, the
      Company shall retain physical possession of the certificate, and the Participant
      shall have delivered a stock power to the Company, endorsed in blank, relating
      to the Restricted Stock.

     

    (d)           
      Dividends and
      Distributions.  As a condition to the grant of an Award of
      Restricted Stock, the Committee may require that any cash dividends paid on
      a
      share of Restricted Stock be automatically reinvested in additional shares
      of
      Restricted Stock or applied to the purchase of additional Awards under the
      Plan.  The dates and terms upon which such reinvestment or purchases
      occur shall be within the discretion of the Committee.  Unless
      otherwise determined by the Committee, and subject to applicable law, Shares
      distributed in connection with a stock split or stock dividend, and other
      property distributed as a dividend, shall be subject to restrictions and a
      risk
      of forfeiture to the same extent as the Restricted Stock with respect to which
      such Shares or other property has been distributed.

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

     

    6.5           
      Deferred
      Stock.  The Committee is authorized to grant Awards in the form
      of Shares to be delivered at a specified future date (“Deferred Stock”) to
      Participants, subject to the following terms and conditions:

     

    (a)           
      Award and
      Restrictions.  Issuance of Shares will occur upon expiration of
      the deferral period specified for an Award of Deferred Stock by the Committee
      (or, if permitted by the Committee, as elected by the Participant either (i)
      before the year in which such Award is made, or (ii) at least one year before
      such deferral period otherwise would have expired, provided that such election
      shall not be effective for one year and must extend such deferral period at
      least five years).  In addition, Deferred Stock shall be subject to
      such restrictions as the Committee may impose, if any, which restrictions may
      lapse at the expiration of the deferral period or at earlier specified times,
      separately or in combination, under such circumstances, in such installments,
      or
      otherwise as the Committee may determine.

     

    (b)           
      Forfeiture.  Except
      as otherwise determined by the Committee, upon termination of employment or
      service during the applicable deferral period or portion thereof to which
      forfeiture conditions apply (as provided in the Award agreement evidencing
      the
      Deferred Stock), all Deferred Stock that is at that time subject to such risk
      of
      forfeiture shall be forfeited; provided, however,
      that the Committee
      may provide, by rule or regulation or in any Award agreement, or may determine
      in any individual case, in each case subject to applicable law, that
      restrictions or forfeiture conditions relating to Deferred Stock will lapse
      in
      whole or in part in the event of terminations upon specified causes or events
      (including, without limitation, Retirement or termination by the Company without
      Cause), provided that
      the lapse of restrictions or conditions relating to any Award subject to Section
      409A of the Code may be accelerated only to the extent, and only upon the
      occurrence of events or causes, permitted under such Section.

     

    Deferred
      Stock which is subject to a risk of forfeiture may be denominated as “restricted
      stock units.”

     

    (c)           
      Dividend
      Equivalents.  The Committee may provide that payments in the
      form of dividend equivalents will be credited in respect of Deferred Stock,
      which amounts shall be paid or distributed upon expiration of the deferral
      period specified for such Award of Deferred Stock.

     

    6.6           
      Bonus Shares and Awards
      in
      Lieu of Cash Obligations.  The Committee is authorized to grant
      Shares as a bonus, or to grant Shares or other Awards in lieu of Company
      obligations to pay cash or grant other awards under other plans or compensatory
      arrangements.  Shares or Awards granted hereunder shall be subject to
      such other terms as shall be determined by the Committee.

     

    6.7           
      Other Stock-Based
      Awards.  The Committee is authorized, subject to limitations
      under applicable law, to grant to Participants such other Awards that may be
      denominated or payable in, valued in whole or in part by reference to, or
      otherwise based on, or related to, Shares and factors that may influence the
      value of Shares, as deemed by the Committee to be consistent with the purposes
      of the Plan, including convertible or exchangeable debt securities, other rights
      convertible or exchangeable into Shares, purchase rights for Shares, Awards
      with
      value and payment contingent upon performance of the Company or any other
      factors designated by the Committee, and Awards valued by reference to the
      book
      value of Shares or the value of securities of or the performance of specified
      subsidiaries.  The Committee shall determine the terms and conditions
      of such Awards.  Shares issued pursuant to an Award in the nature of a
      purchase right granted under this Section 6.7 shall be purchased for such
      consideration, paid for at such times, by such methods, and in such forms,
      including cash, Shares, other Awards, or other property, as the Committee shall
      determine.  Cash awards, as an element of or supplement to any other
      Award under the Plan, may be granted pursuant to this Section 6.7.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

     

    
      
        	
              	
                7.

              	
                Certain
                  Provisions Applicable to
                  Awards

              

      

    

     

    7.1           
      Deferral of Cash Compensation
      into Awards.  The Committee is authorized to grant Awards in
      lieu of cash compensation or upon the deferral of cash compensation payable
      by
      the Company or any subsidiary, including cash amounts payable under other
      plans.  In such case, the Committee shall determine the value of the
      Awards to be granted in lieu of or upon deferral of such cash compensation,
      and
      may provide for a discount in such valuation in order to promote the purposes
      of
      the Plan.

     

    7.2           
      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 ISO or an SAR granted in tandem therewith exceed a period
      of ten years from the date of its grant (or such shorter period as may be
      applicable under Section 422 of the Code).

     

    7.3           
      Form and Timing of Payment
      under Awards; Deferrals.  Subject to the terms of the Plan and
      any applicable Award agreement, payments to be made by the Company or a
      subsidiary upon the exercise of an Option or other Award or settlement of an
      Award may be made in such forms as the Committee shall determine, including
      cash, Shares, other Awards, or other property, and may be made in a single
      payment or transfer, in installments, or on a deferred basis.  The
      vesting of any Award may be accelerated, in the discretion of the Committee
      or
      upon the occurrence of one or more specified events or causes (including,
      without limitation, Retirement or termination by the Company without
      Cause).  The settlement of any Award may be accelerated, and cash paid
      in lieu of Shares in connection with such settlement, in the discretion of
      the
      Committee or upon the occurrence of one or more specified events or causes,
      provided that the
      payment or settlement of any Award subject to Section 409A of the Code may be
      accelerated only to the extent, and only upon the occurrence of events or
      causes, permitted under such Section.  The foregoing notwithstanding,
      no Award specified as settleable in Shares may be settled otherwise than by
      delivery of Shares if the Award agreement does not specify such alternative
      form
      of settlement and the authorization of alternative forms of settlement would
      preclude fixed accounting for the compensation expense relating to such Award
      under accounting rules then applicable to the Company prior to the determination
      or event which causes settlement to be in a form other than
      Shares.  Installment or deferred payments may be required by the
      Committee (subject to Section 9.5 of the Plan, including the consent provisions
      thereof in the case of any deferral of an outstanding Award not provided for
      in
      the original Award agreement) or permitted at the election of the Participant
      on
      terms and conditions established by the Committee.  Payments may
      include provisions for the payment or crediting of reasonable interest on
      installment or deferred payments or the grant or crediting of dividend
      equivalents or other amounts in respect of installment or deferred payments
      denominated in Shares.

     

    7.4           
      Cancellation and Rescission
      of
      Awards.  Unless the Award agreement specifies otherwise, the
      Committee may cancel any unexpired, unpaid, or deferred Awards at any time,
      and,
      unless otherwise determined by the Committee, the Company shall have the
      additional rights set forth in subsection (d) below, if the Participant is
      not
      in compliance with all applicable material provisions of the Award agreement
      and
      the Plan, including the following conditions:

     

    (a)           
      A Participant shall not render services for any organization or engage directly
      or indirectly in any business which, in the judgment of the Chief Executive
      Officer of the Company or other senior executive officer designated by the
      Committee, is or becomes competitive with the Company. For Participants whose
      employment has terminated, the judgment of the Chief Executive Officer or other
      senior officer designated by the Committee shall be based on the Participant’s
      post-employment responsibilities and position with the other organization or
      business, the extent of past, current and potential competition or conflict
      between the Company and the other organization or business, the effect on the
      Company’s shareholders, customers, suppliers and competitors of the Participant
      assuming the post-employment responsibilities and such other considerations
      as
      are deemed relevant given the 

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

     

    applicable
      facts and circumstances.  A Participant who has terminated employment
      shall be free, however, to purchase as an investment or otherwise, stock or
      other securities of such organization or business so long as they are listed
      upon a recognized securities exchange or traded over-the-counter, and such
      investment does not represent a greater than five percent equity interest in
      the
      organization or business.

     

    (b)           
      A Participant shall not, without prior written authorization from the Company,
      disclose to anyone outside the Company or use in other than the Company’s
      business any confidential information or material relating to the business
      of
      the Company which is acquired by the Participant either during or after
      employment with the Company.

     

    (c)           
      A Participant shall disclose promptly and assign to the Company all right,
      title, and interest in any invention or idea, patentable or not, made or
      conceived by the Participant during employment by the Company, relating in
      any
      manner to the actual or anticipated business, research, or development work
      of
      the Company and shall do anything reasonably necessary to enable the Company
      to
      secure a patent where appropriate in the United States and in foreign
      countries.

     

    (d)           
      Upon exercise, settlement, payment, or delivery pursuant to an Award, the
      Participant shall certify on a form acceptable to the Committee that he or
      she
      is in compliance with the terms and conditions of this Section 7.4. Failure
      to
      comply with the provisions of this Section 7.4 prior to, or during the six
      months after, any exercise, payment or delivery pursuant to an Award shall
      cause
      such exercise, payment or delivery to be rescinded. The Company shall notify
      the
      Participant in writing of any such rescission within two years after such
      exercise, payment, or delivery. Within ten days after receiving such a notice
      from the Company, the Participant shall pay to the Company the amount of any
      gain realized or payment received as a result of the rescinded exercise,
      payment, or delivery pursuant to an Award. Such payment shall be made either
      in
      cash or by returning to the Company the number of Shares that the Participant
      received in connection with the rescinded exercise, payment, or delivery, in
      which case the Company shall promptly repay the lesser of the exercise price
      or
      the then-Fair Market Value of the Shares returned.

     

    The
      Committee may modify the conditions imposed under this Section 7.4 with respect
      to any Award.  If the terms of this Section 7.4 would require that the
      accounting expense for an Award that otherwise could be measured at the date
      of
      grant or other measurement date cannot be so measured until a later time, but
      such measurement would be permissible if the forfeiture of the Award were in
      connection with a termination of the Participant’s employment, then the
      cancellation of the Award will occur at the later of the time of the Committee’s
      determination or the Participant’s termination of employment.

     

    7.5           
      Stand-Alone, Additional,
      Tandem, and Substitute Awards.  Awards granted under the Plan
      may, in the discretion of the Committee, be granted either alone or in addition
      to, in tandem with, or in substitution or exchange for, any other Award or
      any
      award granted under another plan of the Company, any subsidiary, or any business
      entity to be acquired by the Company or a subsidiary, any other right of a
      Participant to receive payment from the Company or any
      subsidiary.  Such additional, tandem, and substituted or exchanged
      Awards may be granted at any time.  Subject to Section 11.5, the
      Committee may determine that, in granting a new Award, the intrinsic value
      of
      any surrendered Award or award may be applied to reduce the exercise price
      of
      any Option, grant price of any SAR, or purchase price of any other
      Award.

     

    
      
        	
              	
                8.

              	
                Performance
                  and Annual Incentive Awards

              

      

    

     

    8.1           
      Performance
      Conditions.  The right of a Participant to exercise or receive
      a grant or settlement of any Award, and the timing thereof, may be subject
      to
      such performance conditions as may 

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

     

    be
      specified by the Committee.  The Committee may use such business
      criteria and measures of performance as it may deem appropriate in establishing
      performance conditions, and may exercise its discretion to reduce or increase
      the amounts payable under any Award subject to performance conditions, except
      as
      limited under Sections 8.2 and 8.3 hereof in the case of a Performance Award
      or
      Annual Incentive Award intended to qualify under Code Section
      162(m).

     

    8.2           
      Performance Awards Granted
      to
      Designated Covered Employees.  If the Committee determines that
      a Performance Award to be granted to an eligible person who is designated by
      the
      Committee as likely to be a Covered Employee should qualify as
“performance-based compensation” for purposes of Code Section 162(m), the grant,
      exercise, and/or settlement of such Performance Award shall be contingent upon
      achievement of preestablished performance goals and other terms set forth in
      this Section 8.2.

     

    (a)           
      Performance Goals
      Generally.  The performance goals for such Performance Awards
      shall consist of one or more business criteria and a targeted level or levels
      of
      performance with respect to each such criteria, as specified by the Committee
      consistent with this Section 8.2.  Performance goals shall be
      objective and shall otherwise meet the requirements of Code Section 162(m)
      and
      regulations thereunder (including Regulation 1.162-27 and successor regulations
      thereto), including the requirement that the level or levels of performance
      targeted by the Committee result in the achievement of performance goals being
      “substantially uncertain.” The Committee may determine that such Performance
      Awards shall be granted, exercised, and/or settled upon achievement of any
      one
      performance goal or that two or more of the performance goals must be achieved
      as a condition to grant, exercise, and/or settlement of such Performance
      Awards.  Performance goals may differ for Performance Awards granted
      to any one Participant or to different Participants.

     

    (b)           
      Business
      Criteria.  One or more of the following business criteria for
      the Company, on a consolidated basis, and/or for specified subsidiaries,
      divisions, or other business units of the Company (where the criteria are
      applicable), shall be used by the Committee in establishing performance goals
      for such Performance Awards: (1) earnings per share; (2) revenues; (3) cash
      flow; (4) cash flow return on investment; (5) return on net assets, return
      on
      assets, return on investment, return on capital, return on equity;
      profitability; (6) economic value created (“EVC”. as defined below); (7)
      operating margins or profit margins; (8) income or earnings before or after
      taxes; pretax earnings; pretax earnings before interest, depreciation and
      amortization; operating earnings; pretax operating earnings, before or after
      interest expense and before or after incentives, service fees, and extraordinary
      or special items; net income; (9) total shareholder return or stock price;
      (10)
      book value per share; (11) expense management; improvements in capital
      structure; working capital; costs; and (12) any of the above goals as compared
      to the performance of a published or special index deemed applicable by the
      Committee including, but not limited to, the Standard & Poor’s 500 Stock
      Index or a group of comparator companies.  “EVC” means the amount by
      which a business unit’s income exceeds the cost of the capital used by the
      business unit during the performance period, as determined by the
      Committee.  Income of a business unit may be before payment of
      bonuses, capital charges, non-recurring or extraordinary income or expense,
      and
      general and administrative expenses for the performance period, if so specified
      by the Committee.  One or more of the foregoing business criteria
      shall also be exclusively used in establishing performance goals for Annual
      Incentive Awards granted to a Covered Employee under Section 8.3
      hereof.

     

    (c)           
      Performance Period; Timing
      for
      Establishing Performance Award Terms.  Achievement of
      performance goals in respect of such Performance Awards shall be measured over
      a
      performance period of up to ten years, as specified by the
      Committee.  Performance goals, amounts payable upon achievement of
      such goals, and other material terms of Performance Awards shall be established
      by the Committee (i) while the performance outcome for that performance period
      is substantially uncertain and (ii) no more than 90 days after the commencement
      of the performance period to which the performance 

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

    goal
      relates or, if less, the number of days which is equal to 25 percent of the
      relevant performance period.  In all cases, the maximum amount payable
      in respect of a Performance Award to any Participant shall be subject to the
      limitation set forth in Section 5.2 hereof.

     

    (d)           
      Performance Award
      Pool.  The Committee may establish a Performance Award pool,
      which shall be an unfunded pool, for purposes of measuring performance of the
      Company in connection with Performance Awards.  The amount of such
      Performance Award pool shall be based upon the achievement of a performance
      goal
      or goals based on one or more of the business criteria set forth in Section
      8.2(b) hereof during the given performance period, as specified by the Committee
      in accordance with Section 8.2(c) hereof.  The Committee may specify
      the amount of the Performance Award pool as a percentage of any of such business
      criteria, a percentage thereof in excess of a threshold amount, or as another
      amount which need not bear a strictly mathematical relationship to such business
      criteria.  In such case, Performance Awards may be granted as rights
      to payment of a specified portion of the Award pool; such grants shall be
      subject to the requirements of Section 8.2(c).

     

    (e)           
      Settlement of Performance
      Awards; Other Terms.  Settlement of such Performance Awards
      shall be in cash, Shares, other Awards, or other property, in the discretion
      of
      the Committee.  The Committee may, in its discretion, reduce the
      amount of a settlement otherwise to be made in connection with such Performance
      Awards, but may not exercise discretion to increase any such amount payable
      to a
      Covered Employee in respect of a Performance Award subject to this Section
      8.2.  The Committee shall specify the circumstances in which such
      Performance Awards shall be paid or forfeited in the event of termination of
      employment by the Participant prior to the end of a performance period or
      settlement of Performance Awards, provided that the payment or settlement of
      any
      Award subject to Section 409A of the Code may be accelerated only to the extent,
      and only upon the occurrence of events or causes, permitted under such
      Section.

     

    8.3           
      Annual Incentive Awards
      Granted to Designated Covered Employees.  If the Committee
      determines that an Annual Incentive Award to be granted to an eligible person
      who is designated by the Committee as likely to be a Covered Employee should
      qualify as “performance-based compensation” for purposes of Code Section 162(m),
      the grant, exercise, and/or settlement of such Annual Incentive Award shall
      be
      contingent upon achievement of preestablished performance goals and other terms
      set forth in this Section 8.3.

     

    (a)           
      Potential Annual Incentive
      Awards.  Not later than the deadline specified in Section
      8.2(c) above, the Committee shall determine the eligible persons who will
      potentially receive Annual Incentive Awards, and the amounts potentially payable
      thereunder, for that fiscal year, either out of an Annual Incentive Award pool
      established by such date under Section 8.3(b) hereof or as individual Annual
      Incentive Awards.  In the case of individual Annual Incentive Awards
      intended to qualify under Code Section 162(m), the amount potentially payable
      shall be based upon the achievement of a performance goal or goals based on
      one
      or more of the business criteria set forth in Section 8.2(b) hereof in the
      given
      performance year, as specified by the Committee; in other cases, such amount
      shall be based on such criteria as shall be established by the
      Committee.  In all cases, the maximum Annual Incentive Award of any
      Participant shall be subject to the limitation set forth in Section 5.2
      hereof.

     

    (b)           
      Annual Incentive Award
      Pool.  The Committee may establish an Annual Incentive Award
      pool, which shall be an unfunded pool, for purposes of measuring performance
      of
      the Company in connection with Annual Incentive Awards.  The amount of
      such Annual Incentive Award pool shall be based upon the achievement of a
      performance goal or goals based on one or more of the business criteria set
      forth in Section 8.2(b) hereof during the given performance period, as specified
      by the Committee in accordance with Section 8.2(c) hereof.  The
      Committee may specify the amount of the Annual Incentive Award pool as a
      percentage of any of such business criteria, a percentage thereof in excess
      of a
      threshold 

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

     

    amount,
      or as another amount which need not bear a strictly mathematical relationship
      to
      such business criteria.

     

    (c)           
      Payout of Annual Incentive
      Awards.  After the end of each fiscal year, the Committee shall
      determine the amount, if any, of the potential Annual Incentive Award payable
      to
      each Participant eligible therefor and, if applicable, the amount of any Annual
      Incentive Award pool.  The Committee may, in its discretion, determine
      that the amount payable to any Participant as a final Annual Incentive Award
      shall be increased or reduced from the amount of his or her potential Annual
      Incentive Award, including a determination to make no final Award whatsoever,
      but may not exercise discretion to increase any such amount in the case of
      an
      Annual Incentive Award intended to qualify under Code Section
      162(m).  The Committee shall specify the circumstances in which an
      Annual Incentive Award shall be paid or forfeited in the event of termination
      of
      employment by the Participant prior to the end of a fiscal year or prior to
      settlement of such Annual Incentive Award, provided that the payment or
      settlement of any Award subject to Section 409A of the Code may be accelerated
      only to the extent, and only upon the occurrence of events or causes, permitted
      under such Section.

     

    8.4           
      Written
      Determinations.  Determinations by the Committee as to the
      establishment of performance goals, the amount potentially payable in respect
      of
      Performance Awards and Annual Incentive Awards, the achievement of performance
      goals relating to Performance Awards and Annual Incentive Awards, and the amount
      of any final Performance Award and Annual Incentive Award shall be recorded
      in
      writing, except that the Committee may determine that this requirement shall
      not
      apply in the case of Performance Awards not intended to qualify under Section
      162(m).  Specifically, the Committee shall certify in writing, in a
      manner conforming to applicable regulations under Section 162(m), prior to
      settlement of each such Award granted to a Covered Employee, that the
      performance goals and other material terms of the Award upon which settlement
      of
      the Award was conditioned have been satisfied.  The Committee may not
      delegate any responsibility relating to such Performance Awards or Annual
      Incentive Awards, and the Board shall not perform such functions at any time
      that the Committee is composed solely of Qualified Members.

     

    8.5           
      Status of Section 8.2 and
      Section 8.3 Awards under Code Section 162(m).  It is the intent
      of the Company that Performance Awards and Annual Incentive Awards under
      Sections 8.2 and 8.3 hereof granted to persons who are designated by the
      Committee as likely to be Covered Employees within the meaning of Code Section
      162(m) and regulations thereunder (including Regulation 1.162-27 and successor
      regulations thereto) shall, if so designated by the Committee, constitute
“performance-based compensation” within the meaning of Code Section 162(m) and
      regulations thereunder.  Accordingly, the terms of Sections 8.2, 8.3,
      8.4 and 8.5, including the definitions of Covered Employee and other terms
      used
      therein, shall be interpreted in a manner consistent with Code Section 162(m)
      and regulations thereunder.  The foregoing notwithstanding, because
      the Committee cannot determine with certainty whether a given Participant will
      be a Covered Employee with respect to a fiscal year that has not yet been
      completed, the term “Covered Employee” as used herein shall mean only a person
      designated by the Committee, at the time of grant of a Performance Award or
      Annual Incentive Award, as likely to be a Covered Employee with respect to
      a
      specified fiscal year.  If any provision of the Plan as in effect on
      the date of adoption of any agreements relating to Performance Awards or Annual
      Incentive Awards that are designated as intended to comply with Code Section
      162(m) does not comply or is inconsistent with the requirements of Code Section
      162(m) or regulations thereunder, such provision shall be construed or deemed
      amended to the extent necessary to conform to such requirements.

     

    
      
        	
              	
                9.

              	
                General
                  Provisions

              

      

    

     

    9.1           
      Compliance with Laws and
      Obligations.  The Company shall not be obligated to issue or
      deliver Shares in connection with any Award or take any other action under
      the
      Plan in a transaction 

     

     

    
      
        
        

      

      
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    subject
      to the registration requirements of the Securities Act of 1933, as amended,
      or
      any other federal or state securities law, any requirement under any listing
      agreement between the Company and any national securities exchange or automated
      quotation system, or any other law, regulation, or contractual obligation of
      the
      Company, until the Company is satisfied that such laws, regulations, and other
      obligations of the Company have been complied with in
      full.  Certificates representing Shares issued under the Plan will be
      subject to such stop-transfer orders and other restrictions as may be applicable
      under such laws, regulations, and other obligations of the Company, including
      any requirement that a legend or legends be placed thereon.

     

    9.2           
      Limitations on
      Transferability.  Awards and other rights under the Plan will
      not be transferable by a Participant except by will or the laws of descent
      and
      distribution (or to a designated Beneficiary in the event of the Participant’s
      death), and, if exercisable, shall be exercisable during the lifetime of a
      Participant only by such Participant or his guardian or legal representative;
      provided, however,
      that such Awards and
      other rights (other than ISOs and SARs in tandem therewith) may be transferred
      during the lifetime of the Participant, for purposes of the Participant’s estate
      planning or other purposes consistent with the purposes of the Plan (as
      determined by the Committee), and may be exercised by such transferees in
      accordance with the terms of such Award, but only if and to the extent permitted
      by the Committee.  Awards and other rights under the Plan may not be
      pledged, mortgaged, hypothecated, or otherwise encumbered, and shall not be
      subject to the claims of creditors.  A Beneficiary, transferee, or
      other person claiming any rights under the Plan from or through any Participant
      shall be subject to all terms and conditions of the Plan and any Award agreement
      applicable to such Participant, except as otherwise determined by the Committee,
      and to any additional terms and conditions deemed necessary or appropriate
      by
      the Committee.

     

    9.3           
      No Right to Continued
      Employment; Leaves of Absence.  Neither the Plan, the grant of
      any Award, nor any other action taken hereunder shall be construed as giving
      any
      employee, consultant, director, or other person the right to be retained in
      the
      employ or service of the Company or any of its subsidiaries, nor shall it
      interfere in any way with the right of the Company or any of its subsidiaries
      to
      terminate any person’s employment or service at any time.

     

    Unless
      otherwise specified in the applicable Award agreement, an approved leave of
      absence shall not be considered a termination of employment or service for
      purposes of an Award under the Plan.

     

    9.4           
      Taxes.  The
      Company and any subsidiary is authorized to withhold from any Award granted
      or
      to be settled, any delivery of Shares in connection with an Award, any other
      payment relating to an Award, or any payroll or other payment to a Participant
      amounts of withholding and other taxes due or potentially payable in connection
      with any transaction involving an Award, and to take such other action as the
      Committee may deem advisable to enable the Company and Participants to satisfy
      obligations for the payment of withholding taxes and other tax obligations
      relating to any Award.  This authority shall include authority to
      withhold or receive Shares or other property and to make cash payments in
      respect thereof in satisfaction of a Participant’s tax obligations.

     

    9.5           
      Changes to the Plan and
      Awards.  The Board may amend, suspend, discontinue, or
      terminate the Plan or the Committee’s authority to grant Awards under the Plan
      without the consent of shareholders or Participants, except that any amendment
      shall be subject to the approval of the Company’s shareholders at or before the
      next annual meeting of shareholders for which the record date is after the
      date
      of such Board action if such shareholder approval is required by any federal
      or
      state law or regulation or the rules of the NASDAQ Global Market, and the Board
      may otherwise, in its discretion, determine to submit other such amendments
      to
      shareholders for approval; provided, however
      , that, without the
      consent of an affected Participant, no such action may materially impair the
      rights of such Participant under any Award theretofore granted.  The
      Committee may amend, suspend, discontinue, or 

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

     

    terminate
      any Award theretofore granted and any Award agreement relating thereto; provided, however,
      that no such
      amendment may provide for Award terms that the Plan would not then permit for
      a
      newly granted Award; and provided further, that,
      without the consent of an affected Participant, no such action may materially
      impair the rights of such Participant under such Award.  Other
      provisions of the Plan notwithstanding, without the prior approval of
      shareholders, the Committee shall not take any action (including the repricing
      of outstanding Options) for the which the approval of the shareholders of the
      Company is required under Rule 4350-5 of the NASDAQ Company Manual unless such
      approval has been obtained.

     

    9.6           
      No Rights to Awards; No
      Shareholder Rights.  No Participant or other person shall have
      any claim to be granted any Award under the Plan, and there is no obligation
      for
      uniformity of treatment of Participants, employees, consultants, or
      directors.  No Award shall confer on any Participant any of the rights
      of a shareholder of the Company unless and until Shares are duly issued or
      transferred and delivered to the Participant in accordance with the terms of
      the
      Award or, in the case of an Option, the Option is duly exercised.

     

    9.7           
      International
      Participants.  With respect to Participants who reside or work
      outside the United States of America, the Committee may, in its sole discretion,
      amend the terms of the Plan with respect to such Participants or grant Awards
      not conforming to the terms of the Plan to such Participants in order that
      such
      Awards conform to the requirements of local law and customary employment
      practices in such locations and in order that such Awards shall serve the
      purposes of the Plan in light of such local laws and customary employment
      practices.

     

    9.8           
      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 shall give any such Participant any rights
      that are greater than those of a general 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, other Awards, 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 with the consent of each affected Participant.

     

    9.9           
      Nonexclusivity of the
      Plan.  Neither the adoption of the Plan by the Board nor its
      submission or the submission of any amendment to shareholders for approval
      shall
      be construed as creating any limitations on the power of the Board to adopt
      such
      other compensatory arrangements as it may deem desirable, including the granting
      of awards otherwise than under the Plan, and such arrangements may be either
      applicable generally or only in specific cases.

     

    9.10           
      Payments in the Event of
      Forfeitures; Fractional Shares.  Unless otherwise determined by
      the Committee, in the event of a forfeiture of an Award with respect to which
      a
      Participant paid cash consideration, the Participant shall be repaid the amount
      of such cash consideration.  No fractional Shares shall be issued or
      delivered pursuant to the Plan or any Award (although fractional share units
      may
      be credited in connection with any Award if so authorized by the
      Committee).  The Committee shall determine whether and in what manner
      cash, other Awards, or other property shall be issued or paid in lieu of such
      fractional Shares or whether such fractional Shares or any rights thereto shall
      be forfeited or otherwise eliminated.

     

    9.11           
      Successors and
      Assigns.  The Plan shall be binding on all successors and
      assigns of the Company and a Participant, including any permitted transferee
      of
      a Participant, the Beneficiary or estate of such Participant and the executor,
      administrator or trustee of such estate, or any receiver or trustee in
      bankruptcy or representative of the Participant’s creditors.

     

     

    
      
        
        

      

      
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    9.12           
      Governing
      Law.  The validity, construction, and effect of the Plan, any
      rules and regulations under the Plan, and any Award agreement will be determined
      in accordance with the laws (including those governing contracts) of the State
      of New York, without giving effect to principles of conflicts of laws, and
      applicable federal law.

     

    9.13           
      Preexisting
      Plans.  Upon shareholder approval of the Plan as provided under
      Section 9.14, no further grants of awards will be made under each of the
      Preexisting Plans, but awards previously granted thereunder will remain
      outstanding in accordance with the applicable award agreement and other
      applicable terms of each such Preexisting Plan.

     

    9.14           
      Effective Date, Shareholder
      Approval, and Plan Termination.  The Plan shall become
      effective if and at the time that it is approved by the shareholders of the
      Company.  Unless earlier terminated by action of the Board, the Plan
      shall terminate on the day before the tenth anniversary of the effectiveness
      of
      the Plan.  Upon any such termination of the Plan, no new
      authorizations of grants of Awards may be made, but then-outstanding Awards
      shall remain outstanding in accordance with their terms, and the Committee
      otherwise shall retain its full powers under the Plan with respect to such
      Awards.

     

    

 

      
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