Document:

EX-4.3

 

Exhibit
4.3

FIRST AMENDMENT

TO

AMENDED AND RESTATED

RIGHTS AGREEMENT

          THIS FIRST AMENDMENT (this “Amendment”) is made as of December 13, 2006 between
Bioscrip, Inc. (f/k/a/ MIM Corporation), a Delaware corporation (the “Company”), and
American Stock Transfer & Trust Company, a New York corporation (the “Rights Agent”). This
Amendment amends the Amended and Restated Rights Agreement, dated as of December 3, 2002, between
the Company and the Rights Agent (the “Rights Agreement”). Capitalized terms used but not
defined herein shall have the meanings ascribed to them in the Rights Agreement.

          WHEREAS, the Rights Agreement provides for the occurrence of certain events on the
Distribution Date if a Person becomes the Beneficial Owner of 15% or more of the shares of Company
Common Stock then outstanding;

          WHEREAS, on December 8, 2006, Heartland Advisors, Inc. (“Heartland”) filed an amended
Schedule 13G with the Securities and Exchange Commission announcing that Heartland had become the
beneficial owner of 18.5% of the outstanding shares of Company Common Stock; and

          WHEREAS, the Company desires to amend the Rights Agreement in accordance with Section 26
thereof to allow for such acquisition by Heartland without Heartland being deemed an Acquiring
Person under the Rights Agreement.

          NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein,
the parties hereby agree to amend the Rights Agreement as follows:

          1.      Amendment of Section 1, definition of “Acquiring Person”. The definition of
“Acquiring Person” in Section 1 of the Rights Agreement is amended to read as follows:

““Acquiring Person” shall mean any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan maintained by the
Company or any of its Subsidiaries or any trustee or fiduciary with respect
to such a plan acting in such capacity) who or which, alone or together with
all Affiliates and Associates of such Person, is the Beneficial Owner of 15%
or more of the shares of Company Common Stock then outstanding; provided,
however, that Heartland Advisors, Inc. (“Heartland”) shall not be deemed to
be an Acquiring Person unless it is, alone or together with its Affiliates
and Associates, the Beneficial Owner of 20% or more of the shares of Company
Common Stock then outstanding. Notwithstanding the foregoing, (i) no Person
shall become an “Acquiring Person” as a result of an acquisition of Company
Common Stock by the Company which, by reducing the number of shares of the
Company Common Stock outstanding, increases the proportionate number of shares Beneficially Owned by such

 

 

Person to 15% or more (or 20% or more in the case of Heartland) of the
Company Common Stock then outstanding; provided, however, that if a Person
shall become the Beneficial Owner of 15% or more (or 20% or more in the case
of Heartland) of the Company Common Stock by reason of share purchases by
the Company and shall, after such share purchases by the Company, become the
Beneficial Owner of any additional Company Common Stock other than as a
direct or indirect result of any corporate action taken by the Company, then
such Person shall be deemed to be an “Acquiring Person”; and (ii) if a
majority of the Board determines in good faith that a Person who would
otherwise be an “Acquiring Person,” as defined pursuant to the first
sentence of this definition, has become such inadvertently (including,
without limitation, because (a) such Person was unaware that it Beneficially
Owned 15% or more of the Company Common Stock or (b) such Person was aware
of the extent of such Beneficial Ownership but such Person acquired
Beneficial Ownership of such shares of Company Common Stock without the
intention to change or influence the control of the Company and without
actual knowledge of the consequences of such Beneficial Ownership under this
Agreement), and such Person divests itself as promptly as practicable of a
sufficient number of shares of Company Common Stock so that such Person
would no longer be an “Acquiring Person,” as defined pursuant to the first
sentence of this definition, then such Person shall not be deemed to be, or
have been, an “Acquiring Person” for any purposes of this Agreement, and no
Stock Acquisition Date shall be deemed to have occurred. All questions as to
whether a Person who would otherwise be an Acquiring Person has become such
inadvertently shall be determined in good faith by the Board, which
determination shall be conclusive for all purposes.”

          2.      Effectiveness. This Amendment shall be deemed effective as of the date first
written above. Except as expressly amended hereby, all of the terms and provisions of the Rights
Agreement are and shall remain in full force and effect and shall be otherwise unaffected by this
Amendment.

          3.      Severability. If any term, provision, covenant or restriction of this Amendment is
held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable,
the remainder of the terms, provisions, covenants and restrictions of this Amendment shall remain
in full force and effect and shall in no way be affected, impaired or invalidated.

          4.      Governing Law. This Amendment shall be deemed to be a contract made under the laws
of the State of Delaware and for all purposes shall be governed by and construed in accordance with
the laws of such State applicable to contracts to be made and performed entirely within such State.

          5.      Counterparts. This Amendment may be executed in any number of counterparts and each
of such counterparts shall for all purposes be deemed to be an original, and all such counterparts
shall together constitute but one and the same instrument

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          6.      Descriptive Headings. Descriptive headings of the several Sections of this
Amendment are inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

* * *

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

	 	 	 	 	 
	 	BIOSCRIP, INC.

 	 
	 	By  	 
 	 
	 	 	Name:  	Barry A. Posner 	 
	 	 	Title:  	Executive Vice President, Secretary

and General Counsel 	 
	 
	 	AMERICAN STOCK TRANSFER & TRUST COMPANY

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

4EX-10.1

 

Exhibit 10.1

NRG Energy, Inc.

CEO and CFO Compensation Table for 2007

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Grants
Under the Amended and
Restated Long-Term Incentive
Plan(1)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Non-	 	 
	 	 	 	 	 	 	2007 Annual Incentive Plan	 	Restricted	 	Qualified	 	 
	Name and	 	2007 Base	 	Design	 	Stock	 	Stock	 	Performance
	Title	 	Salary	 	Target	 	Maximum	 	Units
(4)	 	Options(5)	 	Units(6)
	David Crane,
President and Chief
Executive Officer
	 	$	1,000,000	 	 	 	100	%(2)	 	 	200	%(2)	 	 	13,600	 	 	 	110,400	 	 	 	26,400	 
	Robert C.
Flexon, Executive
Vice President and
Chief Financial
Officer
	 	$	550,000	 	 	 	75	%(3)	 	 	150	%(3)	 	 	3,600	 	 	 	29,500	 	 	 	7,100	 

 

			
	(1)	 	The grant date for each award will be January 2, 2007.
	 
	(2)	 	For fiscal 2007, Mr. Crane’s target incentive for annual incentive compensation will be
100% of base salary with a maximum opportunity of 200% of base salary. Incentive
components for Mr. Crane include targets based on NRG’s free cash flow and EBITDA in 2007,
as well other relevant operating performance objectives.
	 
	(3)	 	For fiscal 2007, Mr. Flexon’s target incentive for annual incentive compensation will
be 75% of base salary with a maximum opportunity of 150% of base salary. Incentive
components for Mr. Flexon include targets based on NRG’s free cash flow and EBITDA in 2007,
as well as other relevant operating performance objectives.
	 
	(4)	 	Each Restricted Stock Unit (“RSU”) is equivalent to one share of NRG’s common stock,
par value $0.01. Messrs. Crane and Flexon will receive from NRG one such share of common
stock for each RSU on January 2, 2010.
	 
	(5)	 	Non-Qualified Stock Options will vest and become exercisable as follows: 33 1/3% on
January 2, 2008, 33 1/3% on January 2, 2009 and 33 1/3% on January 2, 2010. Stock options
will expire six years from the date of grant.
	 
	(6)	 	Messrs. Crane and Flexon will be issued Performance Units (“PU’s”) by NRG under its Amended
and Restated Long-Term Incentive Plan on January 2, 2007. Each PU represents the right to receive
NRG common stock on January 2, 2010 if the average closing price of NRG’s common stock for the ten
trading days prior to January 2, 2010 (the “Measurement Price”) is equal to or greater than a price
determined on the basis of a 12% appreciation of the closing share price on January 2, 2007
compounded annually (“cost of equity”) for each of the three years during the performance period,
which is January 2, 2007 to January 2, 2010 (the “Target Price”). The payout for each PU will be
equal to: (i) one share of common stock, if the Measurement Price equals the Target Price; (ii) a
prorated amount in between one and two shares of common stock, if the Measurement Price is greater
than the Target Price but less than a price determined on the basis of an 18% cost of equity for
each of the three years during the performance period (the “Maximum Price”); and (iii) two shares
of common stock, if the Measurement Price is equal to or greater than the Maximum Price.

4EX-10.2

 

NRG ENERGY, INC.

LONG-TERM INCENTIVE PLAN

(As Amended and Restated December 8, 2006)

1. Purpose.

          This plan shall be known as the NRG Energy, Inc. Long-Term Incentive Plan (the “Plan”).
The purpose of the Plan shall be to promote the long-term growth and profitability of NRG Energy,
Inc., a Delaware corporation (the “Company”), and its Subsidiaries by (i) providing certain
directors, officers and employees of, and certain other individuals who perform services for, or to
whom an offer of employment has been extended by, the Company and its Subsidiaries with incentives
to maximize shareholder value and otherwise contribute to the success of the Company and (ii)
enabling the Company to attract, retain and reward the best available persons for positions of
responsibility. Grants of Incentive Stock Options or Non-qualified Stock Options, stock
appreciation rights (“SARs”), either alone or in tandem with options, restricted stock,
restricted stock units, performance awards, deferred stock units or any combination of the
foregoing (collectively, the “Awards”) may be made under the Plan. Notwithstanding any
provision of the Plan, to the extent that any Award would be subject to Section 409A of the Code,
no such Award may be granted if it would fail to comply with the requirements set forth in Section
409A of the Code and any regulations or guidance promulgated thereunder.

2. Definitions.

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

          (b) “Cause”, unless otherwise defined in a Participant’s Grant Agreement or in a
Participant’s written employment arrangements with the Company or any of its Subsidiaries in effect
on the date of grant (as amended from time to time thereafter), means the occurrence of one or more
of the following events:

               (i) Conviction of, or agreement to a plea of nolo contendere to, a felony, or any crime or
offense lesser than a felony involving the property of the Company or a Subsidiary; or

               (ii) Conduct that has caused demonstrable and serious injury to the Company or a Subsidiary,
monetary or otherwise; or

               (iii) Willful refusal to perform or substantial disregard of duties properly assigned, as
determined by the Company; or

               (iv) Breach of duty of loyalty to the Company or a Subsidiary or other act of fraud or
dishonesty with respect to the Company or a Subsidiary; or

               (v) Violation of the Company’s code of conduct.

 

 

          The definition of Cause set forth in a Participant’s Grant Agreement shall control if such
definition is different from the definition of Cause set forth in a Participant’s written
employment arrangements with the Company or any of its Subsidiaries.

          (c) “Change in Control”, unless otherwise defined in a Participant’s Grant Agreement,
means the occurrence of one of the following events:

               (i) Any “person” (as that term is used in Sections 13 and 14(d)(2) of the Exchange Act or any
successors thereto) becomes the “beneficial owner” (as that term is used in Section 13(d) of the
Exchange Act or any successor thereto), directly or indirectly, of 50% or more of the Company’s
capital stock entitled to vote in the election of directors; or

               (ii) Persons who on the effective date of the plan of reorganization of the Company (the
“Commencement Date”) constitute the Board (the “Incumbent Directors”) cease for any
reason, including without limitation, as a result of a tender offer, proxy contest, merger or
similar transaction, to constitute at least a majority thereof; provided that, any person becoming
a director of the Company subsequent to the Commencement Date shall be considered an Incumbent
Director if such person’s election or nomination for election was approved by a vote of at least
two-thirds (2/3) of the Incumbent Directors; but provided further that, any such person whose
initial assumption of office is in connection with an actual or threatened election contest
relating to the election of members of the Board or other actual or threatened solicitation of
proxies or consents by or on behalf of a “person” (as defined in Sections 13(d) and 14(d) of the
Exchange Act) other than the Board, including by reason of agreement intended to avoid or settle
any such actual or threatened contest or solicitation, shall not be considered an Incumbent
Director; or

               (iii) Consummation of a reorganization, merger or consolidation or sale or other disposition
of all or substantially all of the assets of the Company (a “Business Combination”), in
each case, unless, following such Business Combination, all or substantially all of the individuals
and entities who were the beneficial owners of outstanding voting securities of the Company
immediately prior to such Business Combination beneficially own, directly or indirectly, more than
50% of the combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the company resulting from such
Business Combination (including, without limitation, a company which, as a result of such
transaction, owns the Company or all or substantially all of the Company’s assets either directly
or through one or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the outstanding voting securities of the
Company; or

               (iv) The shareholders of the Company approve any plan or proposal for the liquidation or
dissolution of the Company.

          (d) “Code” means the Internal Revenue Code of 1986, as amended.

          (e) “Committee” means the Compensation Committee of the Board or such other committee
which shall consist solely of two or more members of the Board, each of whom is an “outside
director” within the meaning of Treasury Regulation §1.162-27(e)(3); provided

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that, if for any
reason the Committee shall not have been appointed by the Board to administer the Plan, all
authority and duties of the Committee under the Plan shall be vested in and exercised by the Board,
and the term “Committee” shall be deemed to mean the Board for all purposes herein.

          (f) “Common Stock” means the Common Stock, par value $0.01 per share, of the Company,
and any other shares into which such stock may be changed by reason of a recapitalization,
reorganization, merger, consolidation or any other change in the corporate structure or capital
stock of the Company.

          (g) “Disability”, unless otherwise defined in a Participant’s Grant Agreement, means a
disability that would entitle an eligible Participant to payment of monthly disability payments
under any Company long-term disability plan or as otherwise determined by the Committee.

          (h) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (i) “Fair Market Value” of a share of Common Stock of the Company means, as of the
date in question, and except as otherwise provided in any Grant Agreement entered into pursuant to
agreements in effect as of the Commencement Date, the officially-quoted closing selling price of
the stock (or if no selling price is quoted, the bid price) on the principal securities exchange on
which the Common Stock is then listed for trading (including for this purpose the Nasdaq National
Market) (the “Market”) for the applicable trading day or, if the Common Stock is not then
listed or quoted in the Market, the Fair Market Value shall be the fair value of the Common Stock
determined in good faith by the Board and, in the case of an Incentive Stock Option, in accordance
with Section 422 of the Code; provided, however, that when shares received upon exercise of an
option are immediately sold in the open market, the net sale price received may be used to
determine the Fair Market Value of any shares used to pay the exercise price or applicable
withholding taxes and to compute the withholding taxes.

          (j) “Family Member” has the meaning given to such term in General Instructions
A.1(a)(5) to Form S-8 under the Securities Act of 1933, as amended, and any successor thereto.

          (k) “Grant Agreement” means the written agreement that each Participant to whom an
Award is made under the Plan is required to enter into with the Company containing the terms and
conditions of such grant as are determined by the Committee and consistent with the Plan.

          (l) “Incentive Stock Option” means an option conforming to the requirements of Section
422 of the Code and any successor thereto.

          (m) “Non-qualified Stock Option” means any stock option other than an Incentive Stock
Option.

          (n) “Participant” means any director, officer or employee of, or other individual
performing services for, or to whom an offer of employment has been extended by,

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the Company or any
Subsidiary who has been selected by the Committee to participate in the Plan (including a
Participant located outside the United States).

          (o) “Retirement”, (i) for any non-director, unless otherwise determined by the
Committee, means (A) termination of service as a non-director after at least 10 years of service by
such non-director and (B) attaining at least 55 years of age, and (ii) for any director,
unless otherwise determined by the Committee, means termination of service as a director after at
least five years of Board service by such director.

          (p) “Subsidiary” means a corporation or other entity of which outstanding shares or
ownership interests representing 50% or more of the combined voting power of such corporation or
other entity entitled to elect the management thereof, or such lesser percentage as may be approved
by the Committee, are owned directly or indirectly by the Company.

3. Administration.

          The Plan shall be administered by the Committee. In no event, however, shall the Committee
modify the distribution terms in any Award or Grant Agreement that has a feature for the deferral
of compensation if such modification would result in taxes, additional interest and/or penalties
pursuant to Code Section 409A. Subject to the provisions of the Plan, the Committee shall be
authorized to (i) select persons to participate in the Plan, (ii) determine the form and substance
of grants made under the Plan to each Participant, and the conditions and restrictions, if any,
subject to which such grants will be made, (iii) determine the form and substance of the Grant
Agreements reflecting the terms and conditions of each grant made under the Plan, (iv) certify that
the conditions and restrictions applicable to any grant have been met, (v) modify the terms of
grants made under the Plan, (vi) interpret the Plan and Grant Agreements entered into under the
Plan, (vii) determine the duration and purposes for leaves of absence which may be granted to a
Participant on an individual basis without constituting a termination of employment or services for
purposes of the Plan, (viii) make any adjustments necessary or desirable in connection with grants
made under the Plan to eligible Participants located outside the United States, (ix) adopt, amend,
or rescind rules and regulations for the administration of the Plan, including, but not limited to,
correcting any defect or supplying any omission, or reconciling any inconsistency in the Plan or in
any Grant Agreement, in the manner and to the extent it shall deem necessary or advisable,
including so that the Plan and the operation of the Plan complies with Rule 16b-3 under the
Exchange Act, the Code to the extent applicable and other applicable law and make such other
determinations for carrying out the Plan as it may deem appropriate, and (x) exercise such powers
and perform such acts as are deemed necessary or advisable to promote the best interests of the
Company with respect to the Plan. Notwithstanding the foregoing, the Committee shall not take any
of the following actions without shareholder approval, except as provided in Section 17: (i) reduce
the exercise price following the grant of an option; (ii) exchange an option which has an exercise
price that is greater than the Fair Market Value of a Share for cash or Shares or (iii) cancel an
option in exchange for a replacement option with a lower exercise price. Decisions of the
Committee on all matters relating to the Plan, any Award granted under the Plan and any Grant
Agreement shall be in the Committee’s sole discretion and
shall be conclusive and binding on the Company, all Participants and all other parties, unless
an arbitration or other provision is expressly provided in a Participant’s Grant

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Agreement. The
validity, construction, and effect of the Plan and any rules and regulations relating to the Plan
shall be determined in accordance with applicable federal and state laws and rules and regulations
promulgated pursuant thereto. No member of the Committee and no officer of the Company shall be
liable for any action taken or omitted to be taken by such member, by any other member of the
Committee or by any officer of the Company in connection with the performance of duties under the
Plan, except for such person’s own willful misconduct or as expressly provided by statute.

          The expenses of the Plan shall be borne by the Company. The Plan shall not be required to
establish any special or separate fund or make any other segregation of assets to assume the
payment of any Award under the Plan, and rights to the payment of such Awards shall be no greater
than the rights of the Company’s general creditors.

4. Shares Available for the Plan.

          Subject to adjustments as provided in Section 17, an aggregate of 8,000,000 shares of
Common Stock (the “Shares”) may be issued pursuant to the Plan. Such Shares may be in
whole or in part authorized and unissued or held by the Company as treasury shares. If any grant
under the Plan expires or terminates unexercised, becomes unexercisable or is forfeited as to any
Shares, or is tendered or withheld as to any Shares in payment of the exercise price of the grant
or the taxes payable with respect to the exercise, then such unpurchased, forfeited, tendered or
withheld Shares shall thereafter be available for further grants under the Plan unless, in the case
of options granted under the Plan, related SARs are exercised.

          Without limiting the generality of the foregoing provisions of this Section 4 or the
generality of the provisions of Sections 3, 6, 7, 8, 9,
10 or 19 or any other section of this Plan, the Committee may, at any time or from
time to time, and on such terms and conditions (that are consistent with and not in contravention
of the other provisions of this Plan) as the Committee may determine, enter into Grant Agreements
(or take other actions with respect to the Awards) for new Awards containing terms (including,
without limitation, exercise prices) more (or less) favorable than the then-outstanding Awards.

5. Participation.

          Participation in the Plan shall be limited to the Participants. Nothing in the Plan or in any
Grant Agreement shall confer any right on a Participant to continue in the employ of the Company or
any Subsidiary as a director, officer or employee of or in the performance of services for the
Company or shall interfere in any way with the right of the Company to terminate the employment or
performance of services or to reduce the compensation or responsibilities of a Participant at any
time. By accepting any Award under the Plan, each Participant and each person claiming under or
through him or her shall be conclusively deemed to have indicated his or her acceptance and
ratification of, and consent to, any action taken under the Plan by the Company, the Board or the
Committee.

          Awards may be granted to such persons and for such number of Shares as the Committee shall
determine, subject to the limitations contained herein (such individuals to whom grants are made
being sometimes herein called “optionees” or “grantees,” as the case may

5

 

be). Determinations made
by the Committee under the Plan need not be uniform and may be made selectively among eligible
individuals under the Plan, whether or not such individuals are similarly situated. A grant of any
type made hereunder in any one year to an eligible Participant shall neither guarantee nor preclude
a further grant of that or any other type to such Participant in that year or subsequent years.

6. Incentive and Non-qualified Options.

          The Committee may from time to time grant to eligible Participants Incentive Stock Options,
Non-qualified Stock Options, or any combination thereof; provided that, the Committee may grant
Incentive Stock Options only to eligible employees of the Company or its Subsidiaries (as defined
for this purpose in Section 424(f) of the Code or any successor thereto). In any one calendar
year, the Committee shall not grant to any one Participant options to purchase a number of Shares
of Common Stock in excess of 1,000,000 shares of Common Stock. The options granted under the Plan
shall be evidenced by a Grant Agreement and shall take such form as the Committee shall determine,
subject to the terms and conditions of the Plan.

          It is the Company’s intent that Non-qualified Stock Options granted under the Plan not be
classified as Incentive Stock Options, that Incentive Stock Options be consistent with and contain
or be deemed to contain all provisions required under Section 422 of the Code and any successor
thereto, and that any ambiguities in construction be interpreted in order to effectuate such
intent. If an Incentive Stock Option granted under the Plan does not qualify as such for any
reason, then to the extent of such non-qualification, the stock option represented thereby shall be
regarded as a Non-qualified Stock Option duly granted under the Plan; provided that, such stock
option otherwise meets the Plan’s requirements for Non-qualified Stock Options.

          (a) Price. The price per Share deliverable upon the exercise of each option (the
“exercise price”) shall be established by the Committee, except that in the case of the
grant of any option, the exercise price may not be less than 100% of the Fair Market Value of a
share of Common Stock as of the date of grant of the option, and in the case of the grant of any
Incentive Stock Option to an employee who, at the time of the grant, owns more than 10% of the
total combined voting power of all classes of stock of the Company or any of its Subsidiaries, the
exercise price may not be less than 110% of the Fair Market Value of a share of Common Stock as of
the date of grant of the option, in each case unless otherwise permitted by Section 422 of the Code
or any successor thereto.

          (b) Payment. Options may be exercised, in whole or in part, upon payment of the
exercise price of the Shares to be acquired. Unless otherwise determined by the Committee, payment
shall be made (i) in cash (including check, bank draft, money order or wire transfer of immediately
available funds), (ii) by delivery of outstanding shares of Common Stock with a Fair Market Value
on the date of exercise equal to the aggregate exercise price payable with respect to the options’
exercise, (iii) by means of any cashless exercise procedures approved by the
Committee and as may be in effect on the date of exercise or (iv) by any combination of the
foregoing.

          In the event a grantee is permitted to, and elects to pay the exercise price payable with
respect to an option pursuant to clause (ii) above, (A) only a whole number of share(s) of

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Common Stock (and not fractional shares of Common Stock) may be tendered in payment, (B) such grantee must
present evidence acceptable to the Company that he or she has owned any such shares of Common Stock
tendered in payment of the exercise price (and that such tendered shares of Common Stock have not
been subject to any substantial risk of forfeiture) for at least six months prior to the date of
exercise or such longer period as determined from time to time by the Committee, and (C) Common
Stock must be delivered to the Company. Delivery for this purpose may, at the election of the
grantee, be made either by (A) physical delivery of the certificate(s) for all such shares of
Common Stock tendered in payment of the exercise price, accompanied by duly executed instruments of
transfer in a form acceptable to the Company, (B) direction to the grantee’s broker to transfer, by
book entry, such shares of Common Stock from a brokerage account of the grantee to a brokerage
account specified by the Company, or (C) the attestation of the grantee’s shares of Common Stock.
When payment of the exercise price is made by delivery of Common Stock, the difference, if any,
between the aggregate exercise price payable with respect to the option being exercised and the
Fair Market Value of the shares of Common Stock tendered in payment (plus any applicable taxes)
shall be paid in cash. No grantee may tender shares of Common Stock having a Fair Market Value
exceeding the aggregate exercise price payable with respect to the option being exercised (plus any
applicable taxes).

          (c) Terms of Options. The term during which each option may be exercised shall be
determined by the Committee, but if required by the Code, no option shall be exercisable in whole
or in part more than ten years from the date it is granted, and no Incentive Stock Option granted
to an employee who at the time of the grant owns more than 10% of the total combined voting power
of all classes of stock of the Company or any of its Subsidiaries shall be exercisable more than
five years from the date it is granted. All rights to purchase Shares pursuant to an option shall,
unless sooner terminated, expire on the date designated by the Committee. The Committee shall
determine the date on which each option shall become exercisable and may provide that an option
shall become exercisable in installments. The Shares constituting each installment may be
purchased in whole or in part at any time after such installment becomes exercisable, subject to
such minimum exercise requirements as may be designated by the Committee. Prior to the exercise of
an option and delivery of the Shares represented thereby, the optionee shall have no rights as a
shareholder with respect to any Shares covered by such outstanding option (including any dividend
or voting rights).

          (d) Limitations on Grants. If required by the Code, the aggregate Fair Market Value
(determined as of the grant date) of Shares for which an Incentive Stock Option is exercisable for
the first time during any calendar year under all equity incentive plans of the Company and its
Subsidiaries (as defined in Section 422 of the Code or any successor thereto) may not exceed
$100,000.

          (e) Termination; Forfeiture.

               (i) Death. Unless otherwise provided in a Participant’s Grant Agreement, if a
Participant ceases to be a director, officer or employee of, or to perform other services for, the
Company or any Subsidiary due to his or her death, all of the Participant’s Awards shall become
fully vested and all of the Participant’s options shall become exercisable and shall remain so for
a period of one year from the date of such death, but in no event after the expiration date of the
options.

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               (ii) Disability. Unless otherwise provided in a Participant’s Grant Agreement, if a
Participant ceases to be a director, officer or employee of, or to perform other services for, the
Company or any Subsidiary due to Disability, (A) all of the Participant’s options that were
exercisable on the date of Disability shall remain exercisable for, and shall otherwise terminate
and thereafter be forfeited at the end of, a period of one year after the date of Disability, but
in no event after the expiration date of the options, and (B) all of the Participant’s Awards that
were not fully vested (or, with respect to the Participant’s options, exercisable) on the date of
Disability shall be forfeited immediately upon such Disability; provided, however, that such Awards
may become fully vested (and, with respect to the Participant’s options, exercisable) in the
discretion of the Committee. Notwithstanding the foregoing, if the Disability giving rise to the
termination of employment is not within the meaning of Section 22(e)(3) of the Code or any
successor thereto, Incentive Stock Options not exercised by such Participant within 90 days after
the date of termination of employment will cease to qualify as Incentive Stock Options and will be
treated as Non-qualified Stock Options under the Plan if required to be so treated under the Code.

               (iii) Retirement. Unless otherwise provided in a Participant’s Grant Agreement, if a
Participant ceases to be an officer or employee of, or to perform other services for, the Company
or any Subsidiary upon the occurrence of his or her Retirement, (A) all of the Participant’s
options that were exercisable on the date of Retirement shall remain exercisable for, and shall
otherwise terminate and thereafter be forfeited at the end of, a period of two years after the date
of Retirement, but in no event after the expiration date of the options, and (B) all of the
Participant’s Awards that were not fully vested (or, with respect to the Participant’s options,
exercisable) on the date of Retirement shall be forfeited immediately upon such Retirement;
provided, however, that such Awards may become fully vested (and, with respect to the Participant’s
options, exercisable) in the discretion of the Committee. Notwithstanding the foregoing, Incentive
Stock Options not exercised by such Participant within 90 days after Retirement will cease to
qualify as Incentive Stock Options and will be treated as Non-qualified Stock Options under the
Plan if required to be so treated under the Code.

               Unless otherwise provided in a Participant’s Grant Agreement, if a Participant ceases to be a
director of the Company or any Subsidiary upon the occurrence of his or her Retirement, all of the
Participant’s Awards shall become fully vested and all of the Participant’s options shall become
exercisable and shall remain so for a period of two years after the date of Retirement, but in no
event after the expiration date of the options.

               (iv) Discharge for Cause. Unless otherwise provided in a Participant’s Grant
Agreement, if a Participant ceases to be a director, officer or employee of, or to perform other
services for, the Company or a Subsidiary due to Cause, or if a Participant does not become a
director, officer or employee of, or does not begin performing other services for, the Company
or a Subsidiary for any reason, all of the Participant’s Awards shall be forfeited immediately
and all of the Participant’s options shall expire and be forfeited immediately, whether or not then
exercisable, upon such cessation or non-commencement.

8

 

               (v) Other Termination. Unless otherwise provided in a Participant’s Grant Agreement,
if a Participant ceases to be a director, officer or employee of, or to otherwise perform services
for, the Company or a Subsidiary for any reason other than death, Disability, Retirement or Cause,
(A) all of the Participant’s options that were exercisable on the date of such cessation shall
remain exercisable for, and shall otherwise terminate and thereafter be forfeited at the end of, a
period of 90 days after the date of such cessation, but in no event after the expiration date of
the options, and (B) all of the Participant’s Awards that were not fully vested (or, with respect
to the Participant’s options, exercisable) on the date of such cessation shall be forfeited
immediately upon such cessation.

               (vi) Change in Control. Unless otherwise provided in a Participant’s Grant Agreement,
if there is a Change in Control of the Company, all of the Participant’s Awards shall become fully
vested upon such Change in Control (and, with respect to the Participant’s options, exercisable
upon such Change in Control and shall remain so until the expiration date of the options), whether
or not the Participant is subsequently terminated.

7. Stock Appreciation Rights.

          The Committee shall have the authority to grant SARs under this Plan, either alone or to any
optionee in tandem with options (either at the time of grant of the related option or thereafter by
amendment to an outstanding option). SARs shall be subject to such terms and conditions as the
Committee may specify. In any one calendar year, the Committee shall not grant to any one
Participant SARs with respect to a number of Shares of Common Stock in excess of 1,000,000 shares
of Common Stock.

          The exercise price of an SAR must equal or exceed the Fair Market Value of a share of Common
Stock on the date of grant of the SAR. Prior to the exercise of the SAR and delivery of the Shares
represented thereby, the Participant shall have no rights as a shareholder with respect to Shares
covered by such outstanding SAR (including any dividend or voting rights).

          SARs granted in tandem with options shall be exercisable only when, to the extent and on the
conditions that any related option is exercisable. The exercise of an option shall result in an
immediate forfeiture of any related SAR to the extent the option is exercised, and the exercise of
an SAR shall cause an immediate forfeiture of any related option to the extent the SAR is
exercised.

          Upon the exercise of an SAR, the Participant shall be entitled to a distribution from the
Company in an amount equal to the difference between the Fair Market Value of a share of Common
Stock on the date of exercise and the exercise price of the SAR or, in the case of SARs granted in
tandem with options, any option to which the SAR is related, multiplied by the
number of Shares as to which the SAR is exercised. Such distribution shall be in Shares
having a Fair Market Value equal to such amount.

          All SARs will be exercised automatically on the last day prior to the expiration date of the SAR
or, in the case of SARs granted in tandem with options, any related option, so long as the Fair
Market Value of a share of Common Stock on that date exceeds the exercise price of the SAR or

9

 

any related option, as applicable. An SAR granted in tandem with options shall expire at the same time
as any related option expires and shall be transferable only when, and under the same conditions
as, any related option is transferable. Unless otherwise determined by a Participant’s Grant
Agreement, each SAR shall be subject to the termination and forfeiture provisions as set forth in
Section 6(e).

8. Restricted Stock; Restricted Stock Units.

          The Committee may at any time and from time to time grant Shares of restricted stock or
restricted stock units under the Plan to such Participants and in such amounts as it determines.
Each restricted stock unit shall be equivalent in value to one share of Common Stock and shall
entitle the Participant to receive from the Company at the end of the vesting period (the “Vesting
Period”) applicable to such unit the Fair Market Value of one share of Common Stock, unless the
Participant has elected at a time that complies with Code Section 409A to defer the receipt of
shares of Common Stock.

          Each grant of restricted stock units or Shares of restricted stock shall be evidenced by a
Grant Agreement which shall specify the applicable restrictions on such units or Shares, the
duration of such restrictions, and the time or times at which such restrictions shall lapse with
respect to all or a specified number of units or Shares that are part of the grant; provided,
however, except for maximum aggregate Awards of restricted stock or restricted stock units of 10%
of the aggregate Shares authorized by Section 4, if the vesting condition for any Award, other than
an Incentive Stock Option or Non-qualified Stock Option, that is settled in Common Stock (including
Awards of restricted stock and restricted stock units)(a “Full Value Award”), excluding any such
Award made to a Participant upon commencement of his employment, relates (x) exclusively to the
passage of time and continued employment, such time period shall not be less than 36 months, with
thirty-three and one-third percent
(331/3%) of the Award vesting every 12 months from the date of the
Award, subject to Section 6(e) and (y) to the attainment of specified performance goals, such Full
Value Award shall vest over a performance period of not less than one (1) year. Except for maximum
aggregate Awards of restricted stock or restricted stock units of 10% of the aggregate Shares
authorized by Section 4, the Committee shall not waive or modify any vesting condition for a Full
Value Award after such vesting condition has been established with respect to such Award.

          Except as otherwise provided in any Grant Agreement, the Participant will be required to pay
the Company the aggregate par value of any Shares of restricted stock within ten days of the date
of grant, unless such Shares of restricted stock are treasury shares. Unless otherwise determined
by the Committee, certificates representing Shares of restricted stock granted under the Plan will
be held in escrow by the Company on the Participant’s behalf during
any period of restriction thereon and will bear an appropriate legend specifying the
applicable restrictions thereon, and the Participant will be required to execute a blank stock
power therefor.

          Restricted stock units may be granted without payment of cash or consideration to the Company.
Except as otherwise provided in any Grant Agreement, on the date the restricted stock units become
fully vested and nonforfeitable, the Participant shall receive, upon payment by the Participant to
the Company of the aggregate par value of the shares of Common Stock underlying each fully vested
restricted stock unit, stock certificates evidencing the conversion of restricted stock units into
shares of Common Stock.

10

 

          Except as otherwise provided in any Grant Agreement, with respect to Shares of restricted
stock, during such period of restriction the Participant shall have all of the rights of a holder
of Common Stock, including but not limited to the rights to receive dividends and to vote, and any
stock or other securities received as a distribution with respect to such Participant’s Shares of
restricted stock shall be subject to the same restrictions as then in effect for the Shares of
restricted stock. Except as otherwise provided in any Grant Agreement, with respect to the
restricted stock units, during such period of restriction the Participant shall not have any rights
as a shareholder of the Company; provided that, unless otherwise provided in a Participant’s Grant
Agreement, the Participant shall have the right to receive accumulated dividends or distributions
with respect to the corresponding number of shares of Common Stock underlying each restricted stock
unit at the end of the Vesting Period, unless such restricted stock units are converted into
deferred stock units, in which case such accumulated dividends or distributions shall be paid by
the Company to the Participant at such time as the deferred stock units are converted into shares
of Common Stock.

          Unless otherwise provided in a Participant’s Grant Agreement, each unit or Share of restricted
stock shall be subject to the termination and forfeiture provisions as set forth in Section
6(e).

9. Performance Awards.

          Performance awards may be granted to Participants at any time and from time to time as
determined by the Committee. The Committee shall determine the size and composition of performance
awards granted to a Participant and the appropriate period over which performance is to be measured
(a “performance cycle”). Performance awards may include (i) specific dollar-value target
awards (ii) performance units, the value of each such unit being determined by the Committee at the
time of issuance, and/or (iii) performance Shares, the value of each such Share being equal to the
Fair Market Value of a share of Common Stock. In any one calendar year, the Committee shall not
grant to any one Participant performance awards (i) payable in Common Stock for an amount in excess
of 1,000,000 shares of Common Stock, or (ii) for performance awards payable in Other Securities or
a combination of Common Stock and Other Securities, with a maximum amount payable thereunder of
more than the Fair Market Value of 1,000,000 shares of Common Stock determined either on the date
of grant of the award or the date the award is paid, whichever is greater.

          The value of each performance award may be fixed or it may be permitted to fluctuate based on
a performance factor (e.g., return on equity) selected by the Committee; provided that, payment of
any performance award that is intended to qualify as “qualified performance-based compensation”
within the meaning of Treasury Regulation §1.162-27(e) shall be based solely on the satisfaction of
pre-established, objective goals determined with reference to one or more of the following
performance factors: (i) return on equity, (ii) earnings per share, (iii) return on gross or net
assets, (iv) return on gross or net revenue, (v) pre- or after-tax net income, (vi) earnings before
interest, taxes, depreciation and amortization, (vii) operating income and (viii) revenue growth.

11

 

          The Committee shall establish performance goals and objectives for each performance cycle on
the basis of such criteria and objectives as the Committee may select from time to time, including,
without limitation, the performance of the Participant, the Company, one or more of its
Subsidiaries or divisions or any combination of the foregoing. During any performance cycle, the
Committee shall have the authority to adjust the performance goals and objectives for such cycle
for such reasons as it deems equitable.

          The Committee shall determine the portion of each performance award that is earned by a
Participant on the basis of the Company’s performance over the performance cycle in relation to the
performance goals for such cycle. The earned portion of a performance award may be paid out in
Shares, Other Company Securities or any combination thereof, as the Committee may determine.

          A Participant must be a director, officer or employee of, or otherwise perform services for,
the Company or its Subsidiaries at the end of the performance cycle in order to be entitled to
payment of a performance award issued in respect of such cycle; provided, however, unless otherwise
provided in a Participant’s Grant Agreement, each performance award shall be subject to the
termination and forfeiture provisions as set forth in Section 6(e).

10. Deferred Stock Units.

          Deferred stock units (A) may be granted to Participants at any time and from time to time as
determined by the Committee, and (B) shall be issued to Participants who elected prior to the date
the restricted stock units were granted to defer delivery of shares of Common Stock that would
otherwise be due by virtue of the lapse or waiver of the vesting requirements of their restricted
stock units. All elections with respect to deferred stock units shall be made in accordance with
the election and distribution timing rules in Code Section 409A.

          Except as otherwise provided in any Grant Agreement, deferred stock units shall be granted
without payment of cash or other consideration to the Company but in consideration of services
performed for or for the benefit of the Company or any Subsidiary by such Participant. Payment of
the value of deferred stock units shall be made by the Company in shares of Common Stock; provided
that, the Participant shall receive a number of shares of Common Stock equal to the number of
matured or earned deferred stock units. Upon payment in respect of a deferred stock unit, such
unit shall be terminated and thereafter forfeited. Payments in respect of deferred stock units
shall be made only at the end of the Deferral Period applicable to such units, the
duration of which Deferral Period shall be determined by the Committee at the time of grant of
such deferred stock units and set forth in the applicable Grant Agreement (or by the Participant in
the case of an election to defer the receipt of Common Stock beyond the Vesting Period).

          Except as otherwise provided in any Grant Agreement, during such Deferral Period the
Participant shall not have any rights as a shareholder of the Company; provided that, unless
otherwise provided in a Participant’s Grant Agreement, the Participant shall have the right to
receive accumulated dividends or distributions with respect to the corresponding number of shares
of Common Stock underlying each deferred stock unit at the end of the Deferral Period when such
deferred stock units are converted into shares of Common Stock.

12

 

          Unless otherwise provided in the Participant’s Grant Agreement or related election form, if a
Participant dies while serving as a director, officer or employee of the Company or its Subsidiary
prior to the end of the Deferral Period, the Participant shall receive payment in respect to such
Participant’s deferred stock units which would have matured or been earned at the end of such
Deferral Period as if the applicable Deferral Period had ended as of the date of such Participant’s
death.

          Unless otherwise provided in a Participant’s Grant Agreement or related election form, if a
Participant ceases to be a director, officer or employee of, or to otherwise perform services for,
the Company or its Subsidiaries upon his or her Disability or Retirement prior to the end of the
Deferral Period, the Participant shall receive payment in respect of such Participant’s deferred
stock units at the end of such Deferral Period.

          Unless otherwise provided in the Participant’s Grant Agreement or related election form, at
such time as a Participant ceases to be, or in the event a Participant does not become, a director,
officer or employee of, or otherwise performing services for, the Company or its subsidiaries for
any reason other than Disability, Retirement or death, such Participant shall immediately forfeit
any unvested deferred stock units which would have matured or been earned at the end of such
Deferral Period.

11. Grant of Dividend Equivalent Rights.

          The Committee may include in a Participant’s Grant Agreement a dividend equivalent right
entitling the grantee to receive amounts equal to all or any portion of the dividends that would be
paid on the shares of Common Stock covered by such Award if such Shares had been delivered pursuant
to such Award. In the event such a provision is included in a Grant Agreement, the Committee shall
determine whether such payments shall be made in cash, in shares of Common Stock or in another
form, whether they shall be conditioned upon the exercise of the Award to which they relate, the
time or times at which they shall be made, and such other terms and conditions as the Committee
shall deem appropriate.

12. Withholding Taxes.

          (a) Participant Election. Unless otherwise determined by the Committee, a Participant
may elect to deliver shares of Common Stock (or have the Company withhold Shares acquired upon
exercise of an option or SAR or deliverable upon grant of restricted stock or vesting of restricted
stock units or deferred stock units or the receipt of Common Stock, as the case may be) to satisfy,
in whole or in part, the amount the Company is required to withhold for taxes in connection with
the exercise of an option or SAR or the delivery of restricted stock upon grant or vesting or the
receipt of Common Stock, as the case may be. Such election must be made on or before the date the
amount of tax to be withheld is determined. Once made, the election shall be irrevocable. The
fair market value of the shares to be withheld or delivered will be the Fair Market Value as of the
date the amount of tax to be withheld is determined. In the event a Participant elects to deliver
or have the Company withhold shares of Common Stock pursuant to this Section 12(a), such
delivery or withholding must be made subject to the conditions and pursuant to the procedures set
forth in Section 6(b) with respect to the delivery or withholding of Common Stock in
payment of the exercise price of options.

13

 

          (b) Company Requirement. The Company may require, as a condition to any grant or
exercise under the Plan or to the delivery of certificates for Shares issued hereunder, that the
grantee make provision for the payment to the Company, either pursuant to Section 12(a) or
this Section 12(b), of federal, state or local taxes of any kind required by law to be
withheld with respect to any grant or delivery of Shares. The Company, to the extent permitted or
required by law, shall have the right to deduct from any payment of any kind (including salary or
bonus) otherwise due to a grantee, an amount equal to any federal, state or local taxes of any kind
required by law to be withheld with respect to any grant or delivery of Shares under the Plan.

13. Grant Agreement; Vesting.

          Each employee to whom an Award is made under the Plan shall enter into a Grant Agreement with
the Company that shall contain such provisions, including without limitation vesting requirements,
consistent with the provisions of the Plan, as may be approved by the Committee. Unless the
Committee determines otherwise and except as otherwise provided in Sections 6, 7,
8, 9 and 10 in connection with a Change of Control or certain occurrences
of termination, no Award under this Plan may be exercised, and no restrictions relating thereto may
lapse, within six months of the date such Award is made.

14. Transferability.

          Unless otherwise provided in any Grant Agreement, no Award granted under the Plan shall be
transferable by a Participant other than by will or the laws of descent and distribution or to a
Participant’s Family Member by gift or a qualified domestic relations order as defined by the Code.
Unless otherwise provided in any Grant Agreement, an option, SAR or performance award may be
exercised only by the optionee or grantee thereof; by his or her Family Member if such person has
acquired the option, SAR or performance award by gift or qualified domestic relations order; by the
executor or administrator of the estate of any of the foregoing or any person to whom the Option is
transferred by will or the laws of descent and distribution; or by the
guardian or legal representative of any of the foregoing; provided that, Incentive Stock
Options may be exercised by any Family Member, guardian or legal representative only if permitted
by the Code and any regulations thereunder. All provisions of this Plan shall in any event
continue to apply to any Award granted under the Plan and transferred as permitted by this
Section 14, and any transferee of any such Award shall be bound by all provisions of this
Plan as and to the same extent as the applicable original grantee.

15. Listing, Registration and Qualification.

          If the Committee determines that the listing, registration or qualification upon any
securities exchange or under any law of Shares subject to any Award is necessary or desirable as a
condition of, or in connection with, the granting of same or the issue or purchase of Shares
thereunder, no such option or SAR may be exercised in whole or in part, no such performance award,
restricted stock unit or deferred stock unit may be paid out, and no Shares may be issued, unless
such listing, registration or qualification is effected free of any conditions not acceptable to
the Committee.

14

 

16. Transfer of Employee.

          The transfer of an employee from the Company to a Subsidiary, from a Subsidiary to the
Company, or from one Subsidiary to another Subsidiary shall not be considered a termination of
employment; nor shall it be considered a termination of employment if an employee is placed on
military or sick leave or such other leave of absence which is considered by the Committee as
continuing intact the employment relationship.

17. Adjustments.

          In the event that any reorganization, recapitalization, stock split, reverse stock split,
stock dividend, combination of shares, merger, consolidation, distribution of assets, or any other
change in the corporate structure or shares of the Company affects Shares such that an adjustment
is appropriate in order to prevent dilution or enlargement of the rights of Participants under the
Plan, the Committee shall make such equitable adjustments in any or all of the following in order
to prevent such dilution or enlargement of rights: the number and kind of Shares or other property
available for issuance under the Plan (including, without limitation, the total number of Shares
available for issuance under the Plan pursuant to Section 4), the number and kind of Awards
or other property covered by Awards previously made under the Plan, and the exercise price of
outstanding options and SARs. Any such adjustment shall be final, conclusive and binding for all
purposes of the Plan. In the event of any merger, consolidation or other reorganization in which
the Company is not the surviving or continuing corporation or in which a Change in Control is to
occur, all of the Company’s obligations regarding any Awards that were granted hereunder and that
are outstanding on the date of such event shall, on such terms as may be approved by the Committee
prior to such event, be assumed by the surviving or continuing corporation or canceled in exchange
for property (including cash).

          Without limitation of the foregoing, in connection with any transaction of the type specified
by clause (iii) of the definition of a Change in Control in Section 2(c), the Committee
may (i) cancel any or all outstanding options under the Plan in consideration for payment to
the holders thereof of an amount equal to the portion of the consideration, if any, that would have
been payable to such holders pursuant to such transaction if their options had been fully exercised
immediately prior to such transaction, less the aggregate exercise price that would have been
payable therefor, or (ii) if the amount that would have been payable to the option holders pursuant
to such transaction if their options had been fully exercised immediately prior thereto would be
equal to or less than the aggregate exercise price that would have been payable therefor, cancel
any or all such options for no consideration or payment of any kind. Payment of any amount payable
pursuant to the preceding sentence may be made in cash or, in the event that the consideration to
be received in such transaction includes securities or other property, in cash and/or securities or
other property in the Committee’s discretion.

15

 

18. Amendment and Termination of the Plan.

          The Board or the Committee, without approval of the shareholders, may amend or terminate the
Plan at any time, except that no amendment shall become effective without prior approval of the
shareholders of the Company if (i) shareholder approval would be required by applicable law or
regulations, including if required by any listing requirement of the principal stock exchange or
national market on which the Common Stock is then listed, (ii) such amendment would remove from the
Plan a provision which, without giving effect to such amendment, is subject to shareholder
approval, or (iii) such amendment would directly or indirectly increase the Share limits set forth
in Section 4 of the Plan.

19. Amendment or Substitution of Awards under the Plan.

          The terms of any outstanding Award under the Plan may be amended from time to time by the Committee
in any manner that it deems appropriate (including, but not limited to, acceleration of the date of
exercise of any Award and/or payments thereunder or of the date of lapse of restrictions on
Shares); provided that, except as otherwise provided in Section 17, no such amendment shall
adversely affect in a material manner any right of a Participant under the Award without his or her
written consent, and provided further that, the Committee shall not reduce the exercise price of
any options or SARs awarded under the Plan without approval of the shareholders of the Company.
The Committee may, in its discretion, permit holders of Awards under the Plan to surrender
outstanding Awards in order to exercise or realize rights under other awards, or in exchange for
the grant of new awards, or require holders of Awards to surrender outstanding Awards as a
condition precedent to the grant of new awards under the Plan. Notwithstanding the foregoing, in
no event shall the Committee amend the distribution terms in any Award or Grant Agreement that has
a feature for the deferral of compensation if such amendment would result in taxes, additional
interest and/or penalties pursuant to Code Section 409A.

20. Commencement Date; Termination Date

          The date of commencement of the Plan shall be the Commencement Date.

          Unless previously terminated upon the adoption of a resolution of the Board terminating the
Plan, the Plan shall terminate at the close of business ten years after the Commencement Date. No
termination of the Plan shall materially and adversely affect any of the rights or obligations of
any person, without his or her written consent, under any Award or other incentives theretofore
granted under the Plan.

16

 

21. Severability. Whenever possible, each provision of the Plan shall be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of the Plan is
held to be prohibited by or invalid under applicable law, such provision shall be ineffective only
to the extent of such prohibition or invalidity, without invalidating the remainder of the Plan.

22. Governing Law. The Plan shall be governed by the corporate laws of the State of
Delaware, without giving effect to any choice of law provisions that might otherwise refer
construction or interpretation of the Plan to the substantive law of another jurisdiction.

*       *       *       *

17

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