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    EXHIBIT
      10.17

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    HALLIBURTON
      ANNUAL PERFORMANCE PAY PLAN

    AS
      AMENDED AND RESTATED EFFECTIVE JANUARY 26, 2006

    

    

    

    

    

    

    

    

    

    

    

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    INDEX

    

    
      	
              ARTICLE
                I................................................................................................................................................................................................................

            	
              1

            
	
              PURPOSE.................................................................................................................................................................................................................

            	
              1

            
	 	 
	
              ARTICLE
                II...............................................................................................................................................................................................................

            	
              1

            
	
              DEFINITIONS..........................................................................................................................................................................................................

            	
              1

            
	 	 
	
              2.1 Definitions.........................................................................................................................................................................................

            	
              1

            
	
              2.2 Number...............................................................................................................................................................................................

            	
              5

            
	
              2.3 Headings............................................................................................................................................................................................

            	
              5

            
	 	 
	
              ARTICLE
                III.............................................................................................................................................................................................................

            	
              5

            
	
              PARTICIPATION...................................................................................................................................................................................................

            	
              5

            
	 	 
	
              3.1 Participants.......................................................................................................................................................................................

            	
              5

            
	
              3.2 Partial
                Plan Year
                Participation.....................................................................................................................................................

            	
              5

            
	
              3.3 No
                Right to
                Participate....................................................................................................................................................................

            	
              6

            
	
              3.4 Plan
                Exclusive...................................................................................................................................................................................

            	
              6

            
	
              3.5 Consent
                to Dispute
                Resolution......................................................................................................................................................

            	
              7

            
	 	 
	
              ARTICLE
                IV.............................................................................................................................................................................................................

            	
              7

            
	
              ADMINISTRATION...............................................................................................................................................................................................

            	
              7

            
	 	 
	
              ARTICLE
                V..............................................................................................................................................................................................................

            	
              8

            
	
              REWARD
                DETERMINATIONS...........................................................................................................................................................................

            	
              8

            
	 	 
	
              5.1 Performance
                Measures...................................................................................................................................................................

            	
              8

            
	
              5.2 Performance
                Requirements...........................................................................................................................................................

            	
              8

            
	
              5.3 Reward
                Determinations..................................................................................................................................................................

            	
              8

            
	
              5.4 Reward
                Opportunities.....................................................................................................................................................................

            	
              8

            
	
              5.5 Discretionary
                Adjustments............................................................................................................................................................

            	
              9

            
	
              5.6 Discretionary
                Bonuses...................................................................................................................................................................

            	
              9

            
	 	 
	
              ARTICLE
                VI............................................................................................................................................................................................................

            	
              9

            
	
              DISTRIBUTION
                OF
                REWARDS.........................................................................................................................................................................

            	
              9

            
	 	 
	
              6.1 Form
                and Timing of
                Payment.........................................................................................................................................................

            	
              9

            
	
              6.2 Excess
                Remuneration......................................................................................................................................................................

            	
              10

            
	
              6.3 Elective
                Deferral...............................................................................................................................................................................

            	
              10

            
	
              6.4 Tax
                Withholding...............................................................................................................................................................................

            	
              10

            

    

    

     

    
      
        ii

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              ARTICLE
                VII............................................................................................................................................................................................................

            	
              11

            
	
              TERMINATION
                OF
                EMPLOYMENT..................................................................................................................................................................

            	
              11

            
	 	 
	
              7.1 Termination
                of Service During Plan
                Year..................................................................................................................................

            	
              11

            
	
              7.2 Termination
                of Service After End of Plan Year But

            	 
	
                                     
                Prior to the Payment
                Date.............................................................................................................................................................

            	
              11

            
	 	 
	
              ARTICLE
                VIII..........................................................................................................................................................................................................

            	
              12

            
	
              RIGHTS
                OF PARTICIPANTS AND
                BENEFICIARIES....................................................................................................................................

            	
              12

            
	 	 
	
              8.1 Status
                as a Participant or
                Beneficiary.........................................................................................................................................

            	
              12

            
	
              8.2 Employment.......................................................................................................................................................................................

            	
              12

            
	
              8.3 Nontransferability...........................................................................................................................................................................

            	
              12

            
	
              8.4 Nature
                of
                Plan...................................................................................................................................................................................

            	
              13

            
	 	 
	
              ARTICLE
                IX.............................................................................................................................................................................................................

            	
              13

            
	
              CORPORATE
                CHANGE........................................................................................................................................................................................

            	
              13

            
	 	 
	
              ARTICLE
                X..............................................................................................................................................................................................................

            	
              14

            
	
              AMENDMENT
                AND
                TERMINATION.................................................................................................................................................................

            	
              14

            
	 	 
	
              ARTICLE
                XI.............................................................................................................................................................................................................

            	
              14

            
	
              MISCELLANEOUS.................................................................................................................................................................................................

            	
              14

            
	 	 
	
              11.1 Governing
                Law................................................................................................................................................................................

            	
              14

            
	
              11.2 Severability.....................................................................................................................................................................................

            	
              14

            
	
              11.3 Successor........................................................................................................................................................................................

            	
              14

            
	
              11.4 Effective
                Date..................................................................................................................................................................................

            	
              14

            

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

     

    iii

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    HALLIBURTON

    ANNUAL
      PERFORMANCE PAY PLAN

    

    

    The
      Compensation Committee of Directors of Halliburton Company, having heretofore
      established the Halliburton Annual Performance Pay Plan (formerly known as
      the
      Annual Reward Plan), pursuant to the provisions of Article X of said Plan,
      hereby amends and restates said Plan to be effective in accordance with the
      provisions of Section 11.4 hereof. 

    

    ARTICLE
      I

    

    PURPOSE

    

    The
      purpose of the Halliburton Annual Performance Pay Plan (the "Plan") is to reward
      management and other key employees of the Company and its Affiliates for
      improving financial results which drive the creation of value for shareholders
      of the Company and thereby, serve to attract, motivate, reward and retain high
      caliber employees required for the success of the Company. The Plan provides
      a
      means to link total and individual cash compensation to Company performance,
      as
      measured by Cash Value Added ("CVA"), a demonstrated driver of shareholder
      value, and, where appropriate, additional performance measures which drive
      CVA.

     

    ARTICLE
      II

     

    DEFINITIONS

    2.1 Definitions.
      Where
      the following words and phrases appear in the Plan, they shall have the
      respective meanings set forth below, unless their context clearly indicates
      to
      the contrary.

    

    "Affiliate"
      shall mean a Subsidiary of the Company or a division or designated group of
      the
      Company or a Subsidiary.

    
      
         

        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    "Base
      Salary" shall mean the annualized pay rate of a Participant as in effect on
      January 1 of a Plan Year, including base pay a Participant could have received
      in cash in lieu of (i) contributions made on such Participant's behalf to a
      qualified Plan maintained by the Company or to any cafeteria plan under Section
      125 of the Code maintained by the Company and (ii) deferrals of compensation
      made at the Participant's election pursuant to a plan or arrangement of the
      Company or an Affiliate, but excluding any Rewards under this Plan and any
      other
      bonuses, incentive pay or special awards.

    

    "Beneficiary"
      shall mean the person, persons, trust or trusts entitled by Will or the laws
      of
      descent and distribution to receive the benefits specified under the Plan in
      the
      event of the Participant's death prior to full payment of a Reward.

    

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

    

    "Business
      Unit CVA" shall mean the respective CVA of designated business units, each
      calculated on an aggregate basis for their respective operations.

    

    "Cause"
      shall mean (i) the conviction of the Participant of a felony under Federal
      law
      or the law of the state in which such action occurred, (ii) dishonesty in course
      of fulfilling the Participant's employment duties or (iii) the disclosure by
      the
      Participant to any unauthorized person or competitor of any confidential
      information or confidential knowledge as to the business or affairs of the
      Company and its Affiliates.

    

    "CEO"
      shall mean the Chief Executive Officer of the Company.

    

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

    

    "Committee"
      shall mean the Compensation Committee of Directors of the Company, appointed
      by
      the Board of Directors from among its members, no member of which shall be
      an
      employee of the Company or a Subsidiary.

    

    “Common
      Stock” shall mean the common stock, par value $2.50 per share of Halliburton
      Company. 

     

    "Company"
      shall mean Halliburton Company and its successors.

    

    "Company
      CVA" shall mean CVA calculated on a consolidated basis.

    
      
         

        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    "Corporate
      Change" shall mean one of the following events: (i) the merger, consolidation
      or
      other reorganization of the Company in which the outstanding Common Stock is
      converted into or exchanged for a different class of securities of the Company,
      a class of securities of any other issuer (except a direct or indirect wholly
      owned Subsidiary), cash or property; (ii) the sale, lease or exchange of all
      or
      substantially all of the assets of the Company to another corporation or entity
      (except a direct or indirect wholly owned Subsidiary); (iii) the adoption by
      the
      stockholders of the Company of a plan of liquidation and dissolution; (iv)
      the
      acquisition (other than any acquisition pursuant to any other clause of this
      definition) by any person or entity, including, without limitation, a “group” as
      contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934, as
      amended, of beneficial ownership, as contemplated by such Section, of more
      than
      twenty percent (based on voting power) of the Company’s outstanding capital
      stock; or (v) as a result of or in connection with a contested election of
      directors, the persons who were directors of the Company before such election
      shall cease to constitute a majority of the Board. 

    

    "CVA"
      shall mean the difference between operating cash flow and a capital charge,
      calculated in accordance with the criteria and guidelines set forth in the
      Corporate Policy entitled "Cash Value Added (CVA)," as in effect at the time
      any
      such calculation is made.

    

    “CVA
      Drivers” shall mean such additional performance measures (either objective or
      subjective) as may be approved by the CEO from time to time to reinforce key
      operating and strategic goals important to the Company and its business units.
      Particular CVA Drivers may vary from business unit to business unit and from
      Participant to Participant within a particular business unit as deemed
      appropriate according to the needs of the applicable business unit.

    

    "Dispute
      Resolution Program" shall mean the Halliburton Dispute Resolution
      Plan.

    

    "ERISA"
      shall mean the Employee Retirement Income Security Act of 1974, as
      amended.

    

    "Group
      CVA" shall mean the respective CVA of the Halliburton Energy Services Group
      and
      the Engineering and Construction Group, each calculated on an aggregate basis
      for their respective operations.

    

    "Key
      Employees" shall mean regular, full-time employees of the Company or an
      Affiliate below the Officer level.

    

    "Officer"
      shall mean a full officer of the Company or an Affiliate.

    

    "Participant"
      shall mean any active employee of the Company or an Affiliate who participates
      in the Plan pursuant to the provisions of Article III hereof. An employee shall
      not be eligible to participate in the Plan while on a leave of
      absence.

    
      
         

        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    "Participant
      Category" shall mean a grouping of Participants determined in accordance with
      the applicable provisions of Article III.

     

    "Payment
      Date" shall mean, with respect to a particular Plan Year, the date payment
      is
      actually made following the end of the applicable Plan Year but no later than
      the last business day of February of the year next following the end of such
      Plan Year, or as soon as administratively practicable thereafter.

    

    "Performance
      Goals" shall mean, for a particular Plan Year, established levels of applicable
      Performance Measures.

    

    "Performance
      Measures" shall mean the criteria used in determining Performance Goals for
      particular Participant Categories, which may include one or more of the
      following: Company CVA, Group CVA, Business Unit CVA and CVA
      Drivers.

    

    "Plan"
      shall mean the Halliburton Annual Performance Pay Plan as amended and restated
      effective January 1, 2002, and as the same may thereafter be amended from time
      to time.

    

    "Plan
      Year" shall mean the calendar year ending December 31, 1995 and each subsequent
      calendar year thereafter.

    

    "Reward"
      shall mean the dollar amount of incentive compensation payable to a Participant
      under the Plan for a Plan Year determined in accordance with Section
      5.3.

    

    "Reward
      Opportunity" shall mean, with respect to each Participant Category, incentive
      reward payment amounts, expressed as a percentage of Base Salary, which
      corresponds to various levels of pre-established Performance Goals, determined
      pursuant to the Reward Schedule.

    

    "Reward
      Schedule" shall mean the schedule which aligns the level of achievement of
      applicable Performance Goals with Reward Opportunities for a particular Plan
      Year, such that the level of achievement of the pre-established Performance
      Goals at the end of such Plan Year will determine the actual
      Reward.

    

    "Senior
      Executive" shall have the meaning set forth in Corporate Policy 3-9002,
      Executive Compensation Administration, as such Policy may from time to time
      be
      amended.

    

    "Subsidiary"
      shall mean any corporation 50 percent or more of whose voting power is owned,
      directly or indirectly, by the Company.

    
      
         

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    2.2 Number.
      Wherever appropriate herein, words used in the singular shall be considered
      to
      include the plural and words used in the plural shall be considered to include
      the singular.

    2.3 Headings.
      The
      headings of Articles and Sections herein are included solely for convenience,
      and if there is any conflict between headings and the text of the Plan, the
      text
      shall control.

    

    ARTICLE
      III

     

    PARTICIPATION

    3.1 Participants.
      Active
      employees who are Senior Executives as of the beginning of each Plan Year shall
      be Participants for such Plan Year. In addition, such other Officers and Key
      Employees as may be designated annually as Participants by the CEO prior to
      the
      last day of March each Plan Year shall be Participants for such Plan
      Year.

    3.2 Partial
      Plan Year Participation. 
      If,
      after the beginning of a Plan Year, an employee who was not previously a
      Participant for such Plan Year (i) is newly appointed or elected as a Senior
      Executive or (ii) returns to active employment as a Senior Executive following
      a
      leave of absence, such employee shall become a Participant effective with such
      appointment or election or return to active service, as the case may be, for
      the
      balance of the Plan Year, on a prorated basis, unless the Committee shall
      determine, in its sole discretion, that the participation shall be delayed
      until
      the beginning of the next Plan Year. If, after the beginning of the Plan Year,
      (i) a person is newly elected or appointed as an Officer (other than a Senior
      Executive) or is newly hired, promoted or transferred into a position in which
      he or she is a Key Employee, or (ii) an employee who was not previously a
      Participant for such Plan Year returns to active employment as an Officer (other
      than a Senior Executive) or a Key Employee following a leave of absence, the
      CEO, or his delegate, may designate such person as a Participant for the pro
      rata portion of such Plan Year beginning on the first day of the month following
      such designation.

    
      
         

        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    If
      an
      employee who has previously been designated as a Participant for a particular
      Plan Year takes a leave of absence during such Plan Year, all of such
      Participant's rights to a Reward for such Plan Year shall be forfeited, unless
      the Committee (with respect to a Participant who is a Senior Executive) or
      the
      CEO (with respect to any other Participant) shall determine that such
      Participant's Reward for such Plan Year shall be prorated based upon that
      portion of the Plan Year during which he or she was an active Participant,
      in
      which case the prorated portion of the Reward shall be paid in accordance with
      the provisions of Section 6.1.

    Each
      Participant shall be assigned to a Participant Category at the time he or she
      becomes a Participant for a particular Plan Year. If a Participant thereafter
      incurs a change in status due to promotion, demotion, reassignment or transfer,
      (i) the Committee, in the case of the CEO or other Senior Executive, or (ii)
      the
      CEO, or his delegate, in the case of any other Participant, may approve such
      adjustment in such Participant's Reward Opportunity as deemed appropriate under
      the circumstances (including termination of participation in the Plan for the
      remainder of the Plan Year), such adjustment to be made on a pro rata basis
      for
      the balance of the Plan Year effective with the first day of the month following
      such approval, unless some other effective date is specified. All such approvals
      shall be documented in writing and filed with the Plan records for the
      applicable Plan Year.

    3.3 No
      Right to Participate.
      Except
      as provided in Sections 3.1 and 3.2, no Participant or other employee of the
      Company or an Affiliate shall, at any time, have a right to participate in
      the
      Plan for any Plan Year, notwithstanding having previously participated in the
      Plan. 

    3.4 Plan
      Exclusive.
      No
      employee shall simultaneously participate in this Plan and in any other
      short-term incentive plan of the Company or an Affiliate unless such employee's
      participation in such other plan is approved by the CEO, or his
      delegate.

    
      
         

        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    3.5 Consent
      to Dispute Resolution.
      Participation in the Plan constitutes consent by the Participant to be bound
      by
      the terms and conditions of the Dispute Resolution Program which in substance
      requires that all disputes arising out of or in any way related to employment
      with the Company or its Affiliates, including any disputes concerning the Plan,
      be resolved exclusively through such program, which includes binding arbitration
      as the last step.

    

    ARTICLE
      IV

     

    ADMINISTRATION

    Each
      Plan
      Year, the Committee shall establish the basis for payments under the Plan in
      relation to given Performance Goals, as more fully described in Article V
      hereof, and, following the end of each Plan Year, determine the actual Reward
      payable for each Participant Category. The Committee is authorized to construe
      and interpret the Plan, to prescribe, amend and rescind rules, regulations
      and
      procedures relating to its administration and to make all other determinations
      necessary or advisable for administration of the Plan. The CEO shall have such
      authority as is expressly provided in the Plan. In addition, as permitted by
      law, the Committee and the CEO may delegate such of their respective authority
      granted under the Plan as deemed appropriate; provided, however, that (i) the
      Committee may not delegate its authority with respect to matters relating to
      the
      CEO and other Senior Executives and (ii) the Committee and the CEO may not
      delegate their respective authority under Article V hereof. Decisions of the
      Committee and the CEO, or their respective delegates, in accordance with the
      authority granted hereby or delegated pursuant hereto shall be conclusive and
      binding. Subject only to compliance with the express provisions hereof, the
      Committee, the CEO and their respective delegates may act in their sole and
      absolute discretion with respect to matters within their authority under the
      Plan.

    
      
         

        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    ARTICLE
      V

     

    REWARD
      DETERMINATIONS

    5.1 Performance
      Measures.
      CVA
      shall be the primary Performance Measure in determining Performance Goals for
      any Plan Year. In addition, appropriate CVA Drivers applicable to particular
      Participants may also be used as Performance Measures.

    5.2 Performance
      Requirements.
      Prior
      to
      the last day of February of each Plan Year, (i) the Committee shall approve
      the
      Company CVA, applicable Group CVA and applicable Business Unit CVA Performance
      Goals and the CEO shall approve appropriate CVA Drivers applicable to certain
      Participants and (ii) the Committee shall establish a Reward Schedule which
      aligns the level of achievement of applicable Performance Goals with Reward
      Opportunities, such that the level of achievement of the pre-established
      Performance Goals at the end of the Plan Year will determine the actual
      Reward.

    5.3 Reward
      Determinations.
      After
      the end of each Plan Year, (i) the Committee shall determine the extent to
      which
      the Performance Goals (other than CVA Drivers) have been achieved and (ii)
      the
      CEO shall determine the extent to which the applicable CVA Drivers have been
      achieved, and the amount of the Reward shall be computed for each Participant
      in
      accordance with the Reward Schedule. 

    5.4 Reward
      Opportunities.
      The
      established Reward Opportunities may vary in relation to the Participant
      Categories and within the Participant Categories. In the event a Participant
      changes Participant Categories during a Plan Year, the Participant's Reward
      Opportunities shall be adjusted in accordance with the applicable provisions
      of
      Section 3.2.

    
      
         

        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    5.5 Discretionary
      Adjustments.
      Once
      established, Performance Goals will not be changed during the Plan Year.
      However, if the Committee, in its sole and absolute discretion, determines
      that
      there has been (i) a change in the business, operations, corporate or capital
      structure, (ii) a change in the manner in which business is conducted or (iii)
      any other material change or event which will impact one or more Performance
      Goals in a manner the Committee did not intend, then the Committee may,
      reasonably contemporaneously with such change or event, make such adjustments
      as
      it shall deem appropriate and equitable in the manner of computing the relevant
      Performance Measures applicable to such Performance Goal or Goals for the Plan
      Year; provided,
      however, that the CEO shall be authorized, subject to the review and oversight
      of the Committee, to make adjustments in the manner of computing one or more
      CVA
      Drivers if, when evaluated in accordance with the standards set forth in the
      preceding sentence, he shall deem such adjustments to be appropriate and
      equitable. 

    5.6 Discretionary
      Bonuses.
      Notwithstanding
      any other provision contained herein to the contrary, the Committee may, in
      its
      sole discretion, make such other or additional bonus payments to a Participant
      as it shall deem appropriate.

     

    ARTICLE
      VI

     

    DISTRIBUTION
      OF REWARDS

    6.1 Form
      and Timing of Payment.
      Except
      as otherwise provided below, the amount of each Reward shall be paid in cash
      on
      the Payment Date, or as soon thereafter as practicable. In the event of
      termination of a Participant’s employment prior to the Payment Date for any
      reason other than death (in which case payment shall be made in accordance
      with
      the applicable provisions of Article VII), the amount of any Reward (or prorated
      portion thereof) payable pursuant to the provisions of Sections 7.1 or 7.2
      shall
      be paid in cash on the Payment Date, or as soon thereafter as practicable.
      

    
      
         

        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    6.2 Excess
      Remuneration.
      Notwithstanding the provisions of Section 6.1, to the extent that incentive
      compensation hereunder does not qualify as performance-based compensation
      pursuant to Section 162(m) of the Code, the Committee may, in its discretion,
      with respect to a Participant who is a "covered employee" for purposes of
      Section 162(m), determine that payment of that portion of a Reward which would
      otherwise cause such Participant's compensation to exceed the limitation on
      the
      amount of compensation deductible by the Company in any taxable year pursuant
      to
      such Section 162(m), be deferred until such Participant is no longer a "covered
      employee." In such case, interest shall be credited on the portion of the Reward
      deferred for the period of the deferral as provided pursuant to Article IV
      of
      the Halliburton Company Benefit Restoration Plan, as amended, or other
      applicable plan.

    6.3 Elective
      Deferral.
      Nothing
      herein shall be deemed to preclude a Participant's election to defer receipt
      of
      a percentage of his or her Reward beyond the time such amount would have been
      payable hereunder pursuant to the Halliburton Elective Deferral Plan or other
      similar plan.

    6.4 Tax
      Withholding.
      The
      Company or employing entity through which payment of a Reward is to be made
      shall have the right to deduct from any payment hereunder any amounts that
      Federal, state, local or foreign tax laws require with respect to such
      payments.

    
      
         

        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    ARTICLE
      VII

     

    TERMINATION
      OF EMPLOYMENT

    7.1 Termination
      of Service During Plan Year.
      In the
      event a Participant's employment is terminated prior to the last business day
      of
      a Plan Year for any reason other than death, normal retirement at or after
      age
      65 or disability (as determined by the CEO or his delegate), all of such
      Participant's rights to a Reward for such Plan Year shall be forfeited, unless
      the Committee (with respect to a Participant who was the CEO or other Senior
      Executive) or the CEO (with respect to any other Participant) shall determine
      that such Participant's Reward for such Plan Year shall be prorated based upon
      that portion of the Plan Year during which he or she was a Participant, in
      which
      case the prorated portion of the Reward shall be paid in accordance with the
      provisions of Section 6.1. In the case of death during the Plan Year, the
      prorated amount of such Participant's Reward shall be paid to the Participant's
      estate, or if there is no administration of the estate, to the heirs at law,
      on
      the Payment Date, or as soon thereafter as practicable. In the case of
      disability or normal retirement at or after age 65, the prorated amount of
      a
      Participant's Reward shall be paid in accordance with the provisions of Section
      6.1.

    7.2 Termination
      of Service After End of Plan Year But Prior to the Payment
      Date.
      If a
      Participant's employment is terminated after the end of the applicable Plan
      Year, but prior to the Payment Date, for any reason other than termination
      for
      Cause, the amount of any Reward applicable to such Plan Year shall be paid
      to
      the Participant in accordance with the provisions of Section 6.1, except in
      the
      case of death, in which case the amount of the Reward then unpaid shall be
      paid
      to such Participant's estate, or if there is no administration of the estate,
      to
      the heirs at law, as soon as practicable.

    If
      a
      Participant's employment is terminated for Cause, all of such Participant's
      rights to a Reward applicable to such Plan Year shall be
      forfeited.

    
      
         

        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    ARTICLE
      VIII

     

    RIGHTS
      OF PARTICIPANTS AND BENEFICIARIES

    8.1 Status
      as a Participant or Beneficiary.
      Neither
      status as a Participant or Beneficiary shall be construed as a commitment that
      any Reward will be paid or payable under the Plan.

    8.2 Employment.
      Nothing
      contained in the Plan or in any document related to the Plan or to any Reward
      shall confer upon any Participant any right to continue as an employee or in
      the
      employ of the Company or an Affiliate or constitute any contract or agreement
      of
      employment for a specific term or interfere in any way with the right of the
      Company or an Affiliate to reduce such person's compensation, to change the
      position held by such person or to terminate the employment of such person,
      with
      or without cause.

    8.3 Nontransferability.
      No
      benefit payable under, or interest in, this Plan shall be subject in any manner
      to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance
      or
      charge and any such attempted action shall be void and no such benefit or
      interest shall be, in any manner, liable for, or subject to, debts, contracts,
      liabilities or torts of any Participant or Beneficiary; provided, however,
      that,
      nothing in this Section 8.3 shall prevent transfer (i) by Will, (ii) by
      applicable laws of descent and distribution or (iii) pursuant to an order that
      satisfies the requirements for a "qualified domestic relations order" as such
      term is defined in section 206(d)(3)(B) of ERISA and section 414(p)(1)(A) of
      the
      Code, including an order that requires distributions to an alternate payee
      prior
      to a Participant's "earliest retirement age" as such term is defined in section
      206(d)(3)(E)(ii) of ERISA and section 414(p)(4)(B) of the Code. Any attempt
      at
      transfer, assignment or other alienation prohibited by the preceding sentence
      shall be disregarded and all amounts payable hereunder shall be paid only in
      accordance with the provisions of the Plan. 

    
      
         

        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    8.4 Nature
      of Plan.
      No
      Participant, Beneficiary or other person shall have any right, title or interest
      in any fund or in any specific asset of the Company or any Affiliate by reason
      of any Reward hereunder. There shall be no funding of any benefits which may
      become payable hereunder. Nothing contained in the Plan (or in any document
      related thereto), nor the creation or adoption of the Plan, nor any action
      taken
      pursuant to the provisions of the Plan shall create, or be construed to create,
      a trust of any kind or a fiduciary relationship between the Company or an
      Affiliate and any Participant, Beneficiary or other person. To the extent that
      a
      Participant, Beneficiary or other person acquires a right to receive payment
      with respect to a Reward hereunder, such right shall be no greater than the
      right of any unsecured general creditor of the Company or other employing
      entity, as applicable. All amounts payable under the Plan shall be paid from
      the
      general assets of the Company or employing entity, as applicable, and no special
      or separate fund or deposit shall be established and no segregation of assets
      shall be made to assure payment of such amounts. Nothing in the Plan shall
      be
      deemed to give any employee any right to participate in the Plan except in
      accordance herewith.

     

    ARTICLE
      IX

     

    CORPORATE
      CHANGE

    In
      the
      event of a Corporate Change, (i) with respect to a Participant's Reward
      Opportunity for the Plan Year in which the Corporate Change occurred, such
      Participant shall be entitled to an immediate cash payment equal to the maximum
      amount of Reward he or she would have been entitled to receive for the Plan
      Year, prorated to the date of the Corporate Change; and (ii) with respect to
      a
      Corporate Change that occurs after the end of the Plan Year but prior to the
      Payment Date, a Participant shall be entitled to an immediate cash payment
      equal
      to the Reward earned for such Plan Year.

    
      
         

        
        

      

      
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    ARTICLE
      X

     

    AMENDMENT
      AND TERMINATION

    Notwithstanding
      anything herein to the contrary, the Committee may, at any time, terminate
      or,
      from time to time amend, modify or suspend the Plan; provided, however, that,
      without the prior consent of the Participants affected, no such action may
      adversely affect any rights or obligations with respect to any Rewards
      theretofore earned for a particular Plan Year, whether or not the amounts of
      such Rewards have been computed and whether or not such Rewards are then
      payable.

     

    ARTICLE
      XI

     

    MISCELLANEOUS

    11.1 Governing
      Law.
      The Plan and all related documents shall be governed by, and construed in
      accordance with, the laws of the State of Texas, without giving effect to the
      principles of conflicts of law thereof, except to the extent preempted by
      federal law. The Federal Arbitration Act shall govern all matters with regard
      to
      arbitrability.

    11.2 Severability.
      If any
      provision of the Plan shall be held illegal or invalid for any reason, said
      illegality or invalidity shall not affect the remaining provisions hereof;
      instead, each provision shall be fully severable and the Plan shall be construed
      and enforced as if said illegal or invalid provision had never been included
      herein.

    11.3 Successor.
      All
      obligations of the Company under the Plan shall be binding upon and inure to
      the
      benefit of any successor to the Company, whether the existence of such successor
      is the result of a direct or indirect purchase, merger, consolidation, or
      otherwise, of all or substantially all of the business and/or assets of the
      Company. 

               
      11.4 Effective
      Date.
      This
      amendment and restatement of the Plan shall be effective from and after January
      1, 2002, and shall remain in effect until such time as it may be terminated
      or
      amended pursuant to Article X.

    

    
      
        
        

      

      
        14Unassociated Document

    EXHIBIT
      10.21

    
 

    HALLIBURTON
      COMPANY

    2002
      EMPLOYEE STOCK PURCHASE PLAN

     

    AS
      AMENDED AND RESTATED MAY 17, 2005

     

    1.  Purpose.
      The
      HALLIBURTON COMPANY 2002 EMPLOYEE STOCK PURCHASE PLAN (the “Plan”) is intended
      to provide an incentive for eligible employees of HALLIBURTON COMPANY (the
      “Company”) and certain of its subsidiaries to acquire or increase a proprietary
      interest in the Company through the purchase of shares of the Company’s common
      stock. The Plan is intended to qualify as an “employee stock purchase plan”
under Section 423 of the Internal Revenue Code of 1986, as amended (the “Code”).
      The provisions of the Plan shall be construed in a manner consistent with the
      requirements of that section of the Code.

     

    2.  Definitions.
      Where
      the following words and phrases are used in the Plan, they shall have the
      respective meanings set forth below, unless the context clearly indicates to
      the
      contrary:

     

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

     

    “Committee”
      means the Board or a committee of members of the Board appointed by the Board
      to
      administer this Plan.

     

    “Company”
      means Halliburton Company and, where required by the context, shall include
      any
      Participating Company.

     

    “Corporate
      Change” means one of the following events: (i) the merger, consolidation, or
      other reorganization of the Company in which the outstanding Stock is converted
      into or exchanged for a different class of securities of the Company, a class
      of
      securities of any other issuer (except a direct or indirect wholly owned
      subsidiary of the Company), cash or other property; (ii) the sale, lease or
      exchange of all or substantially all of the assets of the Company to any other
      corporation or entity (except a direct or indirect wholly owned subsidiary
      of
      the Company); or (iii) the adoption by the stockholders of the Company of a
      plan
      of liquidation or dissolution. 

    

    “Eligible
      Compensation” means an employee’s regular straight-time earnings or base salary,
      determined before giving effect to any elective salary reduction or deferral
      agreements and including vacation, sick time and short-term disability pay,
      but
      excluding overtime, incentive compensation, bonuses, special payments,
      commissions, severance pay, long-term disability pay, geographical coefficients,
      shift differential and any other items of compensation.

    

    “Eligible
      Employee” means, as of each Enrollment Date, each employee of the Company or a
      Participating Company who, as of such Enrollment Date, has completed a six-month
      period of service with the Company and/or its Subsidiaries (service with an
      acquired entity or operation shall be credited for this purpose), but excluding
      (i) employees who are employed in a foreign country whose laws or regulations
      effectively prohibit participation in the Plan, (ii) employees who are
      customarily employed by the Company less than twenty (20) hours per week or
      less
      than five (5) months in any calendar year, or (iii) unless required by local
      law, employees who are on an unpaid leave of absence for more than 90 days.
      Additionally, the Committee may also determine that a designated group of highly
      compensated employees are ineligible to participate in the Plan so long as
      the
      group fits within the definition of “highly compensated employee” in Code
      Section 414(q).

     

    “Enrollment
      Date” means the first day of each Purchase Period.

     

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

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Fair
      Market Value” shall mean the closing price for a share of Stock on the New York
      Stock Exchange (or if the Stock is not then listed on such exchange, such other
      national securities exchange on which the Stock is then listed) for the last
      Trading Day on the date of such determination, as reported on the New York
      Stock
      Exchange (or such other national securities exchange) Composite Tape or such
      other source as the Committee deems reliable, or if no prices are reported
      on
      that date, on the last preceding date on which such prices are so
      reported.

     

    “Participating
      Company” means any present or future parent corporation or Subsidiary of the
      Company that participates in the Plan pursuant to paragraph 4.

     

    “Purchase
      Date” means the last Trading Day of each Purchase Period.

     

    “Purchase
      Period” means a period of approximately six months beginning on (i) the first
      Trading Day on or after each July 1 and ending on the last Trading Day in the
      period ending the following December 31, or (ii) the first Trading Day on or
      after each January 1 and ending on the last Trading Day in the period ending
      the
      following June 30. The first Purchase Period shall begin on the first Trading
      Day on or after July 1, 2002. The Committee shall have the power to change
      the
      duration of Purchase Periods (including the commencement dates thereof) with
      respect to future offerings without stockholder approval if such change is
      announced at least five days prior to the scheduled beginning of the first
      Purchase Period to be affected thereafter.

     

    “Purchase
      Price” means an amount equal to 85% of the Fair Market Value of a share of Stock
      on the Enrollment Date or on the Purchase Date, whichever is lower, subject
      to
      adjustment pursuant to paragraph 13.

     

    “Stock”
      means the Company’s common stock, par value $2.50 per share.

     

    “Subsidiary”
      means a corporation, domestic or foreign, which is a “subsidiary” of the
      Company, as defined in section 424(f) of the Code, whether or not such
      corporation exists or is hereafter organized or acquired by the Company or
      a
      subsidiary.

     

    “Trading
      Day” means a day on which the principal national stock exchange on which the
      Stock is traded is open for trading.

     

    3.  Administration
      of the Plan.
      The
      Plan shall be administered by the Committee. Subject to the provisions of the
      Plan, the Committee shall interpret the Plan, make such rules as it deems
      necessary for the proper administration of the Plan, and make all other
      determinations necessary or advisable for the administration of the Plan and
      the
      purchase of Stock under the Plan, including without limitation establishing
      the
      exchange ratio applicable to amounts withheld in a currency other than U.S.
      dollars. In addition, the Committee shall correct any defect or supply any
      omission or reconcile any inconsistency in the Plan, or in any stock purchase
      right granted under the Plan, correct any mistakes in the administration of
      the
      Plan in the manner and to the extent that the Committee deems necessary or
      desirable to effectuate the intent of the Plan. The Committee shall, in its
      sole
      discretion, make such decisions or determinations and take such actions, and
      all
      such decisions, determinations and actions taken or made by the Committee
      pursuant to this and the other paragraphs of the Plan shall be conclusive on
      all
      parties. The Committee shall not be liable for any decision, determination
      or
      action taken in good faith in connection with the administration of the Plan.
      The Committee shall have the authority to delegate routine day-to-day
      administration of the Plan to such officers and employees of the Company as
      the
      Committee deems appropriate.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    4.  Participating
      Companies.
      The
      Committee may designate any present or future parent corporation of the Company
      or Subsidiary that is eligible by law to participate in the Plan as a
      Participating Company by written instrument delivered to the designated
      Participating Company. Such written instrument shall specify the effective
      date
      of such designation and shall become, as to such designated Participating
      Company and employees in its employment, a part of the Plan. The terms of the
      Plan may be modified as applied to the Participating Company only to the extent
      permitted under Section 423 of the Code. Transfer of employment among the
      Company and Participating Companies shall not be considered a termination of
      employment hereunder. Any Participating Company may, by appropriate action
      of
      its Board of Directors, terminate its participation in the Plan. Moreover,
      the
      Committee may, in its discretion, terminate a Participating Company’s Plan
      participation in the Plan at any time. The Participating Companies at any time
      shall be listed on Attachment A hereto as it may be amended from time to time
      by
      the Committee.

     

    5.  Eligibility.
      Subject
      to the further provisions hereof, all Eligible Employees as of an Enrollment
      Date shall be eligible to participate in the Plan with respect to the Purchase
      Period beginning as of such date.

     

    6.  Stock
      Subject to the Plan.
      Subject
      to the provisions of paragraph 13, the aggregate number of shares of Stock
      which
      may be sold under the Plan shall not exceed 12,000,000 shares, which shares
      may
      be authorized but unissued shares or treasury shares, including shares bought
      on
      the open market or otherwise for purposes of the Plan.

     

    7.  Stock
      Purchase Rights.

     

    (a)  Grant
      of Stock Purchase Rights. On
      each
      Enrollment Date the Company shall grant a stock purchase right to each Eligible
      Employee who elects to participate in the Plan for the Purchase Period beginning
      on such date. Subject to subparagraphs 7(f) and (g), the number of shares of
      Stock subject to a stock purchase right for a participant shall be equal to
      the
      quotient of (i) the aggregate payroll deductions withheld on behalf of such
      participant during the Purchase Period, plus any amounts carried over from
      the
      prior Purchase Period, divided by (ii) the Purchase Price of the Stock
      applicable to the Purchase Period; provided, however, that the maximum number
      of
      shares of Stock that may be subject to any stock purchase right for a
      participant during any Purchase Period may not exceed 10,000 shares (subject
      to
      adjustment as provided in paragraph 13). Whole and fractional shares shall
      be
      purchased, unless the Committee determines that the purchase of fractional
      shares is administratively impracticable; any payroll deductions accumulated
      in
      a participant’s account and not applied to the purchase of shares shall be
      retained in the participant’s account and applied in the next Purchase Period,
      subject to withdrawal by the participant pursuant to paragraph 9. Any references
      in the Plan to “shares” shall include fractional shares, if any, purchased by
      the participant under the Plan. 

     

    (b)  Election
      to Participate; Payroll Deduction Authorization. An
      Eligible Employee may participate in the Plan only by means of payroll
      deduction. Except as provided in subparagraph 7(f), each Eligible Employee
      who
      elects to participate in the Plan shall deliver to the Company, within the
      time
      period prescribed by the Committee, a payroll deduction authorization in the
      form prescribed by the Company, whereby he gives notice of his election to
      participate in the Plan as of the next following Enrollment Date, and whereby
      he
      designates an integral percentage (except as provided below) to be deducted
      from
      his Eligible Compensation for each pay period paid during the Purchase Period
      and paid into the Plan for his account. The designated percentage may not be
      less than 1% nor exceed 10%; provided, however, the minimum contribution per
      pay
      period shall be $10. 

     

    (c)  Changes
      in Payroll Authorization. All
      payroll deductions made for a participant shall be credited to his account
      under
      the Plan. A participant may discontinue his participation in the Plan as
      provided in paragraph 9 hereof, or may increase or decrease the rate of his
      payroll deductions during the Purchase Period by completing or filing with
      the
      Company, at a time and in a manner prescribed by the Committee, a new payroll
      deduction authorization form authorizing a change in his payroll rate. The
      Committee may, in its discretion, limit the number of payroll rate changes
      during any Purchase Period. The change in rate shall be effective as soon as
      administratively practicable after the Company’s receipt of the new payroll
      deduction authorization form. A participant’s payroll deduction authorization
      form shall remain in effect for successive Purchase Periods unless terminated
      as
      provided in paragraph 9 hereof. 

     

    
      
        
        

      

      
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    (d)  Automatic
      Payroll Reduction.
      Notwithstanding the foregoing, to the extent necessary to comply with
      subparagraphs 7(f) and (g) hereof, a participant’s payroll deductions may be
      decreased to 0% at any time during a Purchase Period. Payroll deductions shall
      recommence at the rate provided in such participant’s payroll deduction
      authorization form at the beginning of the first Purchase Period that is
      scheduled to end in the following calendar year, unless terminated by the
      participant as provided in paragraph 9 hereof. 

     

    (e)  Tax
      Withholding.
      At the
      time the stock purchase right is exercised, in whole or in part, or at the
      time
      some or all of the Stock issued under the Plan is disposed of, the participant
      must make adequate provision for the Company’s federal, state or other tax
      withholding obligations, if any, that arise upon the exercise of the stock
      purchase right or the disposition of the Stock. At any time, the Company may,
      but shall not be obligated to, withhold from the participant’s compensation the
      amount necessary for the Company to meet applicable withholding obligations,
      including without limitation any withholding required to make available to
      the
      Company any tax deductions or benefits attributable to the sale or early
      disposition of Stock purchased by the participant.

     

    (f)  $25,000
      Limitation. Notwithstanding
      anything in the Plan to the contrary, no employee shall be granted a stock
      purchase right under the Plan which permits his rights to purchase Stock under
      the Plan and under all other employee stock purchase plans of the Company and
      its parent corporation and Subsidiaries to accrue at a rate which exceeds
      $25,000 of Fair Market Value of Stock (determined at the time such stock
      purchase right is granted) for each calendar year in which such stock purchase
      right is outstanding at any time (within the meaning of Section 423(b)(8) of
      the
      Code). Any payroll deductions in excess of the amount specified in the foregoing
      sentence shall be returned to the participant as soon as administratively
      feasible after the next following Enrollment Date.

     

    (g)  Special
      Restriction on Participation. Any
      provisions of the Plan to the contrary notwithstanding, no Eligible Employee
      shall be granted a stock purchase right under the Plan to the extent that,
      immediately after the grant, such Eligible Employee (or any other person whose
      stock would be attributed to such Eligible Employee pursuant to Section 424(d)
      of the Code) would own capital stock of the Company and/or hold outstanding
      options to purchase such stock possessing 5% or more of the total combined
      voting power or value of all classes of the capital stock of the Company, its
      parent corporation or any Subsidiary.

     

    8.  Exercise
      of Stock Purchase Rights.

     

    (a)  General
      Statement. Subject
      to the limitations set forth in paragraph 7, unless a participant withdraws
      from
      the Plan as provided in paragraph 9, each participant in the Plan automatically
      and without any act on his part shall be deemed to have exercised his stock
      purchase right on each Purchase Date to the extent of his unused payroll
      deductions under the Plan and to the extent the issuance of Stock to such
      participant upon such exercise is lawful.

     

    (b)  Delivery
      of Shares to Custodian. As
      soon
      as practicable after each Purchase Date, the Company shall deliver to a
      custodian selected by the Committee one or more certificates representing (or
      shall otherwise cause to be credited to the account of such custodian) the
      aggregate number of whole shares of Stock with respect to which stock purchase
      rights were exercised on such Purchase Date of all of the participating
      employees hereunder. Such custodian shall keep accurate records of the
      beneficial interests of each participant in such shares by means of participant
      accounts under the Plan, and shall provide each participant with periodic
      statements with respect thereto as may be directed by the Committee. The
      Committee may require that shares be retained with such custodian, or other
      designated broker or agent for a designated period of time and/or may establish
      other procedures to permit tracking of disqualifying dispositions of such
      shares. If the Company is required to obtain from any U.S. commission or agency
      authority to issue any such shares, the Company shall seek to obtain such
      authority. Inability of the Company to obtain from any commission or agency
      (whether U.S. or foreign) authority which counsel for the Company deems
      necessary for the lawful issuance of any such shares shall relieve the Company
      from liability to any participant in the Plan except to return to him the amount
      of his payroll deductions under the Plan which would have otherwise been used
      upon exercise of the relevant stock purchase right.

     

    
      
        
        

      

      
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    (c)  Withdrawal
      of Shares. A
      participant may, at any time, in such form and manner as established by the
      custodian, direct the custodian to deliver to the participant all or part of
      the
      shares held by the custodian in his account or to sell such shares and deliver
      to the participant the proceeds therefrom, less applicable
      expenses.

     

    (d)  Dividends.
      With
      respect to an individual’s Stock held by the custodian pursuant to subparagraph
      8(b), the custodian shall automatically reinvest in additional shares of Stock
      for such participant’s account any cash dividends received by the custodian and
      attributable to such Stock and the custodian shall, in accordance with
      procedures adopted by the custodian, facilitate the participant’s voting rights
      attributable to shares held in a participant’s account. The participant may
      elect to receive dividends in cash by following the procedures established
      by
      the custodian.

     

    9.  Withdrawal
      from the Plan.

     

    (a)  General
      Statement. Any
      participant may withdraw in whole from the Plan prior to the Purchase Date
      relating to a particular Purchase Period. Partial withdrawals shall not be
      permitted. A participant who wishes to withdraw from the Plan must timely
      deliver to the Company a notice of withdrawal in a form prepared by the Company
      during the Purchase Period at a time and in a manner prescribed by the
      Committee. The Company shall, as soon as administratively practicable, following
      the receipt of the notice of withdrawal, refund to the participant the amount
      of
      his payroll deductions under the Plan which have not yet been used to purchase
      shares upon the exercise of his stock purchase rights; and thereupon,
      automatically and without any further act on his part, his payroll deduction
      authorization and his interest in unexercised stock purchase rights under the
      Plan shall terminate in full.

     

    (b)  Leave
      of Absence. A
      participant who goes on a leave of absence shall be deemed to have elected
      to
      withdraw from the Plan at the end of 90 days, unless such participant is on
      a
      paid leave of absence or his or her continued participation is required by
      applicable local law.

     

    (c)  Eligibility
      Following Withdrawal. A
      participant who withdraws from the Plan shall be eligible to participate again
      in the Plan upon expiration of the Purchase Period during which he withdrew
      (provided that he is otherwise an Eligible Employee at such later
      time).

     

    10.  Termination
      of Eligible Employment. If
      the
      employment of a participant with the Company terminates for any reason
      whatsoever or the participant ceases to be an Eligible Employee, then his
      participation in the Plan automatically and without any act on his part shall
      terminate as of the date of such termination of employment or change in status.
      The Company shall, as soon as administratively practicable, refund to him (or
      his estate or personal representative, as the case may be) the amount of his
      payroll deductions under the Plan which have not yet been used to purchase
      Stock, and thereupon his interest in unexercised stock purchase rights under
      the
      Plan shall terminate in full.

     

    11.  Restriction
      Upon Assignment of Stock Purchase Rights.
      A stock
      purchase right granted under the Plan shall not be transferable otherwise than
      by will or the laws of descent and distribution. Each stock purchase right
      shall
      be exercisable, during a participant’s lifetime, only by the participant to whom
      granted. The Company shall not recognize and shall be under no duty to recognize
      any assignment or purported assignment by an employee of any of his stock
      purchase rights under the Plan.

     

    12.  No
      Shareholder Rights or Privileges Until Exercise of Stock Purchase
      Rights.
      With
      respect to shares of Stock subject to a stock purchase right, a participant
      shall not be deemed to be a shareholder, and he shall not have any of the rights
      or privileges of a shareholder, until such stock purchase right has been
      exercised and shares delivered pursuant to subparagraph 8(b). 

     

    
      
        
        

      

      
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    13.  Changes
      in Stock; Adjustments.
      Whenever any change is made in the Stock, by reason of a stock dividend or
      by
      reason of subdivision, stock split, reverse stock split, recapitalization,
      reorganization, combination, reclassification of shares or other similar change,
      appropriate action will be taken by the Committee to adjust any or all of (i)
      the number and type of shares subject to the Plan, (ii) the number and type
      of
      shares subject to outstanding stock purchase rights and (iii) the Purchase
      Price
      with respect to any of the foregoing.

     

    In
      the
      event of a Corporate Change, unless a successor corporation assumes or
      substitutes new stock purchase rights (within the meaning of Section 424(a)
      of
      the Code) for all stock purchase rights then outstanding, (i) the Purchase
      Date
      for all stock purchase rights then outstanding shall be accelerated to a date
      fixed by the Committee prior to the effective date of the Corporate Change
      and
      (ii) upon such effective date any unexercised stock purchase rights shall expire
      and the Company promptly shall refund to each participant the amount of such
      participant’s payroll deductions under the Plan which have not yet been used to
      purchase Stock.

     

    14.  Use
      of Funds; No Interest Paid.
      All
      funds received or held by the Company under the Plan shall be included in the
      general funds of the Company free of any trust or other restriction, and may
      be
      used for any corporate purpose. No interest shall be paid to any participant
      on
      amounts credited to his account.

     

    15.  Term
      of the Plan.
      The
      Plan shall be effective July 1, 2002, provided the Plan is approved by the
      shareholders of the Company prior to such date. If not sooner terminated under
      the provisions of paragraph 16, the Plan shall automatically terminate upon
      and
      no further payroll deductions shall be made and no further stock purchase rights
      shall be granted after the date all of the shares of Stock reserved for issuance
      under the Plan, as increased and/or adjusted from time to time, have been sold
      under the Plan. If on the final Purchase Date there is an insufficient number
      of
      shares of Stock available for all purchases under stock purchase rights
      exercised on such date, the number of available shares shall be prorated among
      the then purchasing participants in an equitable manner as determined by the
      Committee based on their deductions for such Purchase Period and all remaining
      amounts shall be returned to the participants.

     

    16.  Amendment
      or Termination of the Plan.
      The
      Board in its discretion may terminate the Plan at any time with respect to
      any
      Stock for which stock purchase rights have not theretofore been granted. The
      Board shall have the right to alter or amend the Plan or any part thereof from
      time to time; provided, however, that, except as provided below, no change
      in
      any stock purchase right theretofore granted may be made that would materially
      impair the stock purchase rights of the participant without the consent of
      such
      participant. In the event the Board determines that the ongoing operation of
      the
      Plan may result in unfavorable financial accounting consequences, the Board
      may,
      in its discretion and, to the extent necessary or desirable, modify or amend
      the
      Plan to reduce or eliminate such accounting consequence including, but not
      limited to (i) altering the Purchase Price for any Purchase Period including
      a
      Purchase Period underway at the time of the change in Purchase Price; and (ii)
      shortening any Purchase Period so that Purchase Period ends on a new Purchase
      Date, including a Purchase Period underway at the time of the Board
      action.

     

    17.  Securities
      Laws.
      The
      Company shall not be obligated to issue any Stock pursuant to any stock purchase
      right granted under the Plan at any time when the offer, issuance or sale of
      shares covered by such stock purchase right has not been registered under the
      Securities Act of 1933, as amended, or does not comply with such other state,
      federal or foreign laws, rules or regulations, or the requirements of any stock
      exchange upon which the Stock may then be listed, as the Company or the
      Committee deems applicable and, in the opinion of legal counsel for the Company,
      there is no exemption from the requirements of such laws, rules, regulations
      or
      requirements available for the offer, issuance and sale of such shares. Further,
      all Stock acquired pursuant to the Plan shall be subject to the Company’s
      policies concerning compliance with securities laws and regulations, as such
      policies may be amended from time to time. The terms and conditions of stock
      purchase rights granted hereunder to, and the purchase of shares by, persons
      subject to Section 16 of the Exchange Act shall comply with any applicable
      provisions of Rule 16b-3. As to such persons, the Plan shall be deemed to
      contain, and such stock purchase rights shall contain, and the shares issued
      upon exercise thereof shall be subject to, such additional conditions and
      restrictions as may be required from time to time by Rule 16b-3 to qualify
      for
      the maximum exemption from Section 16 of the Exchange Act with respect to Plan
      transactions.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    18.  No
      Restriction on Corporate Action.
      Nothing
      contained in the Plan shall be construed to prevent the Company or any
      Subsidiary from taking any corporate action that is deemed by the Company or
      such Subsidiary to be appropriate or in its best interest, whether or not such
      action would have an adverse effect on the Plan or any stock purchase right
      granted under the Plan. No employee, beneficiary or other person shall have
      any
      claim against the Company or any Subsidiary as a result of any such
      action.

     

    19.  Miscellaneous
      Provisions.

     

    (a)  Number
      and Gender. Wherever
      appropriate herein, words used in the singular shall be considered to include
      the plural and words used in the plural shall be considered to include the
      singular. The masculine gender, where appearing in the Plan, shall be deemed
      to
      include the feminine gender.

     

    (b)  Headings.
      The
      headings and subheadings in the Plan are included solely for convenience, and
      if
      there is any conflict between such headings or subheadings and the text of
      the
      Plan, the text shall control.

     

    (c)  Not
      a
      Contract of Employment. The
      adoption and maintenance of the Plan shall not be deemed to be a contract
      between the Company or any Participating Company and any person or to be
      consideration for the employment of any person. Participation in the Plan at
      any
      given time shall not be deemed to create the right to participate in the Plan,
      or any other arrangement permitting an employee of the Company or any
      Participating Company to purchase Stock at a discount, in the future. The stock
      purchase rights and obligations under any participant’s terms of employment with
      the Company or any Participating Company shall not be affected by participation
      in the Plan. Nothing herein contained shall be deemed to give any person the
      right to be retained in the employ of the Company or any Participating Company
      or to restrict the right of the Company or any Participating Company to
      discharge any person at any time, nor shall the Plan be deemed to give the
      Company or any Participating Company the right to require any person to remain
      in the employ of the Company or such Participating Company or to restrict any
      person’s right to terminate his employment at any time. The Plan shall not
      afford any participant any additional right to compensation as a result of
      the
      termination of such participant’s employment for any reason whatsoever.

     

    (d)  Compliance
      with Applicable Laws. The
      Company’s obligation to offer, issue, sell or deliver Stock under the Plan is at
      all times subject to all approvals of and compliance with any governmental
      authorities (whether domestic or foreign) required in connection with the
      authorization, offer, issuance, sale or delivery of Stock as well as all
      federal, state, local and foreign laws. Without limiting the scope of the
      preceding sentence, and notwithstanding any other provision in the Plan, the
      Company shall not be obligated to grant stock purchase rights or to offer,
      issue, sell or deliver Stock under the Plan to any employee who is a citizen
      or
      resident of a jurisdiction the laws of which, for reasons of its public policy
      or otherwise, prohibit the Company from taking any such action with respect
      to
      such employee.

     

    (e)  Severability.
      If
      any
      provision of the Plan shall be held illegal or invalid for any reason, said
      illegality or invalidity shall not affect the remaining provisions hereof;
      instead, each provision shall be fully severable and the Plan shall be construed
      and enforced as if said illegal or invalid provision had never been included
      herein.

     

    (f)  Governing
      Law. All
      provisions of the Plan shall be construed in accordance with the laws of
      Delaware except to the extent preempted by federal law.

     

    
      
        
        

      

      
        7

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