Document:

exhibit10-9directorfeeplan.htm

     

    
      
        

      

    

    Exhibit
10.9

     

    MATTHEWS
INTERNATIONAL CORPORATION

    

    1994
DIRECTOR FEE PLAN,

    as
amended through November 13, 2008

    

    

    SECTION
1

    Purposes; Reservation of
Shares

    

    (a)           Purposes.  The
purposes of the 1994 Director Fee Plan, as amended through November 13, 2008
(the "Plan") are:

    

    
      	
               
      

            	
              (1)

            	
              to
      provide for each Director of Matthews International Corporation (the
      "Corporation") who is not also an employee of the Corporation or any of
      its Subsidiaries ("Director") the payment of retainer fees and, in the
      case of a Director who is Chairperson (the “NE Chairperson”), an
      additional retainer fee for future services to be performed by such
      Director ("Director Fees") as a member of the Board of Directors of the
      Corporation (the "Board") in cash or in shares of Class A Common Stock,
      par value $1.00 per share, of the Corporation ("Common Stock") and, in the
      case of payment to the Directors of the Director Fees in shares of Common
      Stock, to increase the identification of interests between such Directors
      and the shareholders of the
Corporation;

            

    

    

    
      	
               
      

            	
              (2)

            	
              to
      provide current payment in cash (or if a Director shall elect to defer
      receipt, future payment in shares of Common Stock) to each Director
      (except the NE Chairperson shall only be entitled to the fees, if any, in
      (a) and (e) and only for such meetings after February 20, 2008)
      for:

            

    

    

    
      	
              (a)  

            	
              fees,
      if any, paid for attendance at meetings of the Board ("Board Meeting
      Fees");

            

    

    

    
      	
              (b)  

            	
              fees,
      if any, paid to Directors for attendance at meetings of Committees of the
      Board ("Committee Meeting Fees");

            

    

    

    
      	
              (c)  

            	
              annual
      retainer fees paid to the Chairperson of a Committee ("Committee
      Chairperson Retainer Fees");

            

    

    

    
      	
              (d)  

            	
              annual
      retainer fees paid to any Lead Director of the Board of Directors (“Lead
      Director Fees”); and

            

    

    

    
      	
              (e)  

            	
              fees,
      if any,  paid to a Director for attendance at the annual
      shareholders' meeting of the Corporation ("Shareholders' Meeting Fees")
      (subsections (a)-(e) are collectively referred to herein as "Meeting
      Fees"); and

            

    

    

    
      	
               
      

            	
              (3)

            	
              to
      increase the identification of interests between the Directors and the
      shareholders of the Corporation by permitting the Nominating and Corporate
      Governance Committee of the Board (the “Committee”) or a Stock
      Compensation Subcommittee of the Committee (the “Subcommittee”) to award
      restricted stock, nonstatutory stock options and/or stock appreciation
      rights to each Director on the fifteenth (15th)
      business day after the annual shareholders’ meeting of the
      Corporation.

            

    

    

    For
purposes of the Plan, the term "Subsidiary" means any
corporation in an unbroken chain of corporations beginning with the Corporation,
if each of the corporations other than the last corporation in the unbroken
chain owns stock possessing fifty percent (50%) or more of the total combined
voting power of all classes of stock in one of the other corporations in the
chain.

    

    As used
hereinafter, the term “Committee” shall mean
either the Nominating and Corporate

    Governance
Committee or the Subcommittee, if the Subcommittee is authorized by the Board to
act under this Plan.

    

    (b)           Reservation of
Shares.  Except as otherwise provided in this Section 1(b), the
aggregate number of shares of Common Stock which may be issued under the Plan or
credited to Deferred Stock Compensation Accounts for subsequent issuance under
the Plan is limited to 300,000 shares, subject to adjustment and substitution as
set forth in Section 12 hereof.  Shares issued under the Plan may be
authorized but unissued shares or shares previously issued and thereafter
acquired by the Corporation or partly each, as shall be determined from time to
time by the Board.  If any stock option or stock appreciation right
granted under the Plan is cancelled by mutual consent, forfeited, or terminates
or expires for any reason without having been exercised in full, or if any
restricted shares awarded under the Plan are forfeited, the number of shares
subject thereto, in the case of stock options or stock appreciation rights, or
the number of shares forfeited, in the case of restricted shares, shall again be
available for all purposes of the Plan.  In addition to the number of
shares of Common Stock authorized for issuance or crediting by the first
sentence of this Section 1(b), the number of shares of Common Stock which are
surrendered (or to which ownership has been certified) in full or partial
payment to the Corporation of the option price of a stock option granted under
the Plan shall be available for all purposes of the Plan.

    

    

    SECTION
2

    Eligibility

    

    Any
non-employee Director of the Corporation who is separately compensated in the
form of Director Fees or Meeting Fees for services on the Board shall be
eligible to participate in the Plan.

    

    

    SECTION
3

    Payment of Director Fees in
Cash or Common Stock

    

    (a)           Current
Payment.  Subject to the provisions of Section 3(b) hereof, on
the fifteenth (15th) business day following the annual meeting of the
shareholders of the Corporation (each such date of payment referred to as a
"Payment Date"), each Director as of that date shall receive payment of Director
Fees by:

    

    
      	
               
      

            	
              (i)

            	
              the
      payment to the Director of cash of sixty thousand dollars ($60,000)
      (lesser amounts, as previously set forth in the Plan prior to amendment of
      the Plan on November 13, 2008, for Payment Dates before February 19, 2009)
      and, in the case of the NE Chairperson, an additional seventy thousand
      dollars ($70,000) (forty-five thousand dollars ($45,000) for Payment Dates
      before January 1, 2008) (or such other amount determined by the Board or
      by any committee of the Board which the Board authorizes to determine such
      amount) (the “Retainer Fee Amount”);
or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              the
      issuance to the Director of a number of whole shares of Common Stock equal
      to the Retainer Fee Amount divided by the Fair Market Value of one share
      of the Common Stock, as defined in Section 15 hereof, on such Payment Date
      (rounded upward to the next whole
share).

            

    

    

    The
Committee shall determine by November 30 of each year whether Director Fees will
be paid in cash or in shares of Common Stock to the Directors in the following
calendar year.  Unless the Committee otherwise determines and
communicates such determination to the Directors by November 30 of the year
immediately preceding the year of payment, the Directors Fees shall be paid in
shares of Common Stock.  Notwithstanding the foregoing, if the
Director Fees are to be paid in cash, a Director may elect to receive payment of
the Director Fees in shares and shall receive a number of shares of Common Stock
equal to the Retainer Fee Amount divided by the Fair Market Value of one share
of the Common Stock, as defined in Section 15 hereof, on the Payment Date
(rounded upward to the next whole share) (a “Current Stock
Election”).  Such election shall be made by filing a Notice of
Election with the Secretary of the Corporation in the form prescribed by the
Corporation.

    

    (b)           Stock Deferral
Election.  Regardless of whether Director Fees are to be paid
in either cash or shares of Common Stock, each Director may elect to defer the
receipt of Director Fees in shares of Common Stock for a calendar year (a "Stock
Deferral Election") by filing a Notice of Election with the Secretary of the
Corporation in the form prescribed by the Corporation.

    

    (c)           Election
Procedures.  Both a Current Stock Election and a Stock Deferral
Election (collectively, “Director Fee Elections”) shall be effective on January
1 of the year following the date on which the Notice of Election is
filed.  Director Fee Elections shall be effective on the date on which
the Notice of Election is filed with respect to Director Fees payable after the
time of a person's initial election to the office of Director, or any subsequent
re-election if immediately prior thereto such person was not serving as a
Director, provided (i) the Director files such Notice of Election within ten
(10) business days subsequent to being elected or re-elected as a Director and
(ii) a Stock Deferral Election shall only be effective for Director Fees payable
for services performed after the Notice of Election is
filed.  Director Fee Elections shall apply to all Director Fees
otherwise payable while such Director Fee Election is effective.  Each
Director may terminate a Current Stock Election and receive current payment of
Director Fees in cash (where the Committee has elected to pay Director Fees in
cash) and may terminate a Stock Deferral Election and receive current shares of
Common Stock or cash (where the Committee has elected to pay Director Fees in
cash) by filing a Notice of Termination with the Secretary of the Corporation in
the form prescribed by the Corporation, which shall be effective on January 1 of
the year following the date on which a Notice of Termination is
filed.  A Director Fee Election shall continue in effect until the
effective date of any Notice of Termination.  Director Fee Elections
may be made by a Director even if such Director has not made a Meeting Fee
Deferral Election (as defined below).

    

    (d)           Evidence of
Shares.  As of the date on which the Director Fees are payable
in shares of Common Stock pursuant to Section 3(a) hereof or, if a Stock
Deferral Election was made, pursuant to Sections 5 and 6 hereof, (i) the
Corporation, at its discretion, shall either issue share certificates to the
Director for the shares of Common Stock received under the Plan or cause such
shares to be registered in the name of the Director on any book-entry
registration maintained by the Corporation or its transfer agent, and (ii) the
Director shall be a shareholder of the Corporation with respect to any such
shares.

    

    

    SECTION
4

    Payment of Meeting
Fees

    

    (a)           Current Cash
Payment.  Subject to the provisions of Sections 4(b) and 4(c)
hereof, except as set forth below effective on and after the date of the 2009
annual meeting of the shareholders of the Corporation (the “2009 Annual Meeting
Date”), each Director shall receive payment of Meeting Fees in cash in the
following amounts (or such other amounts determined by the Board or by any
committee of the Board which the Board authorizes to determine such amounts),
except that the NE Chairperson shall only be entitled to Board Meeting Fees and
Shareholder’s Meeting Fees, if any, and only for such meetings after February
20, 2008:

    

    
      	
              Board
      Meeting Fees:

            	
              None

            
	
              Committee
      Meeting Fees:

            	
              None

            
	
              Committee
      Chairperson Retainer Fees:

            	
              $7,500
      (or $12,000 in the case of the Audit Committee Chairperson) for a year of
      service as a Committee Chairperson

            
	
              Lead
      Director Fees, if a Lead Director is elected (effective after 2006 Annual
      meeting):

            	
              $5,000
      for a year of service as the Lead Director.

            
	
              Shareholders'
      Meeting Fees:

            	
              None

            

    

    

    (The
amount and payment of Meeting Fees for meetings prior to the 2009 Annual Meeting
Date shall be governed by the provisions of this Section 4(a) as in effect prior
to amendment of the Plan on November 13, 2008.)  Except as set forth
in Sections 4(b) and 4(c) hereof, each Director shall receive payment of Meeting
Fees, if any, (other than Committee Chairperson Retainer Fees and Lead Director
Fees) to which the Director is entitled within ten (10) business days following
the meeting with respect to which such fees are payable.  Except as
set forth in Sections 4(b) and 4(c) hereof, each Committee Chairperson shall
receive payment of Committee Chairperson Retainer Fees and the Lead Director, if
any, shall receive payment of the Lead Director Fees on the fifteenth (15th)
business day following the person’s annual election or re-election to such
position.  The amount and time of payment of Meeting Fees may be
changed from time to time by the Board in its sole discretion.

    

    (b)           Deferred Payment of Meeting
Fees.  Each Director may elect to receive all Meeting Fees for
a calendar year in shares of Common Stock rather than cash, as set forth in
Section 4(c) hereof, provided the Director elects to defer the receipt of such
shares of Common Stock (a "Meeting Fee Deferral Election").  A Meeting
Fee Deferral Election may be made only by filing a Notice of Election with the
Secretary of the Corporation in the form prescribed by the Corporation, and
shall be effective for meetings, and, if applicable, Committee Chairperson
Retainer Fees or Lead Director Fees payable, on and after January 1 of the year
following the date on which the Notice of Election is filed; provided, however,
that (i) a Meeting Fee Deferral Election made by a Notice of Election filed on
or before the close of business on May 14, 1999 shall be effective with regard
to meetings on or after May 15, 1999, and (ii) a Meeting Fee Deferral Election
shall be effective on the date on which the Notice of Election is filed after
the time of a person's initial election, or any subsequent re-election, to the
office of Director with respect to Meeting Fees and, if applicable, Committee
Chairperson Retainer Fees or Lead Director Fees, payable for services performed
after the Meeting Fee Deferral Election is filed if (A) immediately prior
thereto such person was not serving as a Director, and (B) such Notice of
Election is filed within ten (10) business days subsequent to such person being
elected or re-elected as a Director.  A Meeting Fee Deferral Election
shall apply to all Meeting Fees which would otherwise be payable for meetings
held while such Meeting Fee Deferral Election is effective.  A
Director may terminate a Meeting Fee Deferral Election only by filing a Notice
of Termination with the Secretary of the Corporation in the form prescribed by
the Corporation, which Notice of Termination shall be effective for meetings
and, if applicable, Committee Chairperson Retainer Fees or Lead Director Fees
payable on and after January 1 of the year following the date on which a Notice
of Termination is filed.  A Meeting Fee Deferral Election shall
continue in effect until the effective date of any Notice of Termination, after
which the Meeting Fees shall be payable in accordance with Section 4(a)
hereof.  A Meeting Fee Deferral Election may be made by a Director
even if such Director has not made a Current Stock Election or a Stock Deferral
Election.  A Meeting Fee Deferral Election shall apply to all but not
less than all Meeting Fees.

    

    (c)           Deferred Meeting Fees
Credited in Shares of Common Stock.  Each Director who has made
a Meeting Fee Deferral Election effective for Meeting Fees otherwise payable in
cash for a calendar year shall receive a credit to a Deferred Stock Compensation
Account (as defined in Section 5(a) hereof) in the name of such Director on the
first Payment Date following such calendar year.  Such credit shall be
a number of shares of Common Stock (including fractional shares to at least two
decimal places) equal to (i) the aggregate amount of all Meeting Fees subject to
such Meeting Fee Deferral Election otherwise payable during such calendar year
to such Director in cash under Section 4(a) hereof if no Meeting Fee Deferral
Election had been made, divided by (ii) the Fair Market Value of one share of
the Common Stock, as defined in Section 15 hereof, on such Payment
Date.  No interest or other amount shall be paid or credited to a
Director notwithstanding that Meeting Fees which otherwise would have been
payable under Section 4(a) hereof in cash are not reflected as a credit to such
Deferred Stock Compensation Account until the Payment Date.

    

    (d)           Evidence of
Shares.  If a Meeting Fee Deferral Election was made, then as
of the date on which the Meeting Fees are payable in shares of Common Stock
pursuant to Sections 5 and 6 hereof, (i) the Corporation, at its discretion,
shall either issue share certificates to the Director for the shares of Common
Stock received under the Plan or cause such shares to be registered in the name
of the Director on any book-entry registration maintained by the Corporation or
its transfer agent, and (ii) the Director shall be a shareholder of the
Corporation with respect to any such shares.

    

    

    SECTION
5

    Deferred Stock Compensation
Account

    

    (a)           General.  The
amount of any Director Fees or Meeting Fees deferred in accordance with a Stock
Deferral Election or a Meeting Fee Deferral Election shall be credited to a
deferred stock compensation account maintained by the Corporation in the name of
the Director (a "Deferred Stock Compensation Account").  A separate
Deferred Stock Compensation Account shall be maintained for each amount of
deferred Director Fees or Meeting Fees for which a Director has elected a
different payment option or as otherwise determined by the
Committee.  On each Payment Date that a Stock Deferral Election is
effective for a Director or on which a credit to a Deferred Stock Compensation
Account is to be made under Section 4(c) hereof pursuant to a Meeting Fee
Deferral Election, the Director's Deferred Stock Compensation Account(s) shall
be credited on the Payment Date with the number of shares of Common Stock
(including fractional shares to at least two decimal places) which (i) otherwise
would have been payable to the Director under Section 3(a) hereof on such
Payment Date if the Director Fees had been payable to the Director in shares of
Common Stock, whether the Director Fees were payable in cash or in shares of
Common Stock, and/or (ii) are to be so credited in accordance with Section 4(c)
hereof.  The Deferred Stock Compensation Account of a Director shall
be charged on the date of distribution with any distribution of shares of Common
Stock made to the Director from such Account pursuant to Section 5(b)
hereof.

    

    
      	
               
      

            	
              (i)

            	
              Dividends/Distributions
      Prior to September 26, 2008.  With respect to shares of
      the Common Stock credited to a Deferred Stock Compensation Account, the
      effect, if any, of dividends or distributions paid prior to September 26,
      2008 on the Common Stock in cash or property other than Common Stock shall
      be governed by the provisions of this Section 5(a) as in effect prior to
      September 26, 2008.

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Dividends/Distributions
      on or after September 26, 2008.  If on or after September
      26, 2008 a dividend or distribution is paid on the Common Stock in cash or
      property other than Common Stock, on the date of payment of the dividend
      or distribution to holders of the Common Stock the Corporation shall pay
      to a Director a) an amount (in cash or property other than Common Stock,
      as the case may be) equal to the dividend or distribution which would have
      been paid on the number of shares, if any, of the Common Stock (including
      fractional shares) credited to such Director’s Deferred Stock Compensation
      Account as of the date fixed for determining the shareholders entitled to
      receive such distribution, as if such shares of the Common Stock had been
      issued and outstanding on such date less b) any taxes required to be
      withheld on such amount, including but not limited to any taxes required
      to be withheld due to the characterization of such amount as wages or
      compensation.

            

    

    

    (b) Manner of
Payment.  The balance of a Director's Deferred Stock
Compensation Account will be paid in shares of Common Stock to the Director or,
in the event of the Director's death, to the Director's Beneficiary as defined
in Section 5(c) hereof.

    

    

    
      	
              (i)  

            	
              Elections for 2008 and
      Prior Years.  For Stock Deferral Elections and Meeting
      Fee Deferral Elections effective for Director Fees and Meeting Fees
      otherwise payable in 2008 and earlier years, subject to Section 5(b)(iii)
      below and except as otherwise provided in Section 6(b) and 6(c) hereof, a
      Director may elect at the time of filing the Notice of Election for a
      Stock Deferral Election or a Meeting Fee Deferral Election to receive
      payment of the shares of Common Stock credited to the Director's Deferred
      Stock Compensation Account in a lump sum on, or in two to ten annual
      installments commencing on, April 1 (or if April 1 is not a business day,
      on the immediately preceding business day) of the calendar year following
      the calendar year in which the Director first separates from service with
      the Corporation under Section 409A of the Internal Revenue Code of 1986,
      as amended (the “Code”), or any successor section, upon or after ceasing
      to be a member of the Board for any reason, including by reason of death
      or disability (the “Separation from Service Payment Commencement
      Date”).

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Elections For Years
      After 2008.  For Stock Deferral Elections and Meeting Fee
      Deferral Elections effective for Director Fees and Meeting Fees otherwise
      payable in years after 2008, a Director may elect at the time of filing
      the Notice of Election for a Stock Deferral Election or a Meeting Fee
      Deferral Election to receive payment of the shares of Common Stock
      credited to the Director’s Deferred Stock Compensation Account, in whole
      or in part, as follows (except as otherwise provided in Sections 6(b) and
      6(c) hereof, if applicable):

            

    

    

    
      	
               
      

            	
              A.

            	
              In
      a lump sum on the Separation From Service Payment Commencement
      Date;

            

    

    

    
      	
               
      

            	
              B.

            	
              In
      two to five annual installments commencing on the Separation From Service
      Payment Commencement Date and continuing on the same date (or if such date
      is not a business day, on the immediately preceding business day) in the
      calendar year(s) thereafter;

            

    

    

    
      	
               
      

            	
              C.

            	
              In
      a lump sum on April 1 (or if April 1 is not a business day, on the
      immediately preceding business day) of the calendar year specified by the
      Director at the time of filing of such Notice of Election (the “Designated
      Payment Commencement Date”);

            

    

    

    
      	
               
      

            	
              D.

            	
              In
      two to five annual installments commencing on the Designated Payment
      Commencement Date and continuing on the same date (or if such date is not
      a business day, on the immediately preceding business day) in the calendar
      year(s) thereafter; or

            

    

    

    
      	
              E.  

            	
              If
      earlier than the date on which payment would be received under A-D of this
      Section 5(b)(ii), in a lump sum or in two to five annual installments,
      with payment commencing on the sixtieth (60th)
      day (or if such date is not a business day, on the immediately preceding
      business day) following the death of the Director or following the date on
      which the Director becomes disabled (within the meaning of Section 409A of
      the Code) and continuing on the same date (or if such date is not a
      business day, on the immediately preceding business day) in the calendar
      year(s) thereafter.

            

    

    

    
      	
              (iii)  

            	
              Special 2008
      Election.  Any Director who has a balance in the
      Director’s Deferred Stock Compensation Account as of September 26, 2008
      may elect, by filing a 2008 Payment Change Election with the Secretary of
      the Corporation in a form prescribed by the Corporation on or before
      December 31, 2008, to change the timing of payments to be made from such
      Deferred Stock Compensation Account to the Director, in whole or in part,
      as follows:

            

    

    

    
      	
              A.  

            	
              In
      accordance with any of the payment options described in Section 5(b)(ii)
      hereof; or

            

    

    

    
      	
              B.  

            	
              In
      a lump sum on a date in 2009 specified by the Director in the 2008 Payment
      Change Election.

            

    

    

    Notwithstanding
the foregoing, (I) a 2008 Payment Change Election may apply only to amounts that
would not otherwise be payable in 2008 and may not cause an amount to be paid in
2008 that would not otherwise be payable in 2008, and (II) payment shall not be
made in installments but rather in a lump sum if the Director made a Section
6(c) Event Election, as defined below, and Section 6(c) hereof
applies.  This Section 5(b)(iii) is intended to comply with Section
409A of the Code, or any successor section, and shall be interpreted
consistently therewith.

    

    
      	
               
      

            	
              (iv)

            	
              Installment
      Payments.  In any case where payments are made in
      installments, the number of shares of Common Stock distributed in each
      installment shall be determined by multiplying (I) the number of shares of
      Common Stock in the Deferred Stock Compensation Account on the date of
      payment of such installment, by (II) a fraction, the numerator of which is
      one and the denominator of which is the number of remaining unpaid
      installments, and by rounding such result down to the nearest whole number
      of shares.  The balance of the number of shares of Common Stock
      in the Deferred Stock Compensation Account shall be appropriately reduced
      in accordance with Section 5(a) hereof to reflect the installment payments
      made hereunder.  Shares of Common Stock remaining in a Deferred
      Stock Compensation Account pending distribution pursuant to this Section
      5(b) shall be subject to adjustment pursuant to Section 12
      hereof.

            

    

    

    
      	
              (v)  

            	
              General.  If
      a lump sum payment or the final installment payment hereunder would result
      in the issuance of a fractional share of Common Stock, such fractional
      share shall not be issued and cash in lieu of such fractional share shall
      be paid to the Director based on the Fair Market Value of a share of
      Common Stock, as defined in Section 15 hereof, on the date immediately
      preceding the date of such payment.  The Corporation, at its
      discretion, shall either issue share certificates to the Director, or the
      Director's Beneficiary, for the shares of Common Stock distributed
      hereunder or cause such shares to be registered in the name of the
      Director, or the Director’s Beneficiary, on any book-entry registration
      maintained by the Corporation or its transfer agent.  As of the
      date on which the Director is entitled to receive payment of shares of
      Common Stock pursuant to this Section 5(b) hereof, a Director or the
      Director's Beneficiary shall be a shareholder of the Corporation with
      respect to such shares.

            

    

    

    (c)           Director’s
Beneficiary.  The Director’s Beneficiary means any beneficiary
or beneficiaries (who may be named contingently or successively) named by a
Director under the Plan to whom any benefit under the Plan is to be paid in the
case of his or her death before he or she receives any or all of such
benefit.  Each such designation shall revoke all prior designations by
the same Director, shall be in a form prescribed by the Committee, and will be
effective only when filed by the Director in writing with the Secretary of the
Corporation during the Director’s lifetime.  In the absence of such a
designation, Director’s Beneficiary means the person designated by the Director
in the Director's Will, or, if the Director fails to make a testamentary
disposition of the shares or dies intestate, to the person entitled to receive
the shares pursuant to the laws of descent and distribution of the state of
domicile of the Director at the time of death.

    

    

    SECTION
6

    Other Payment Commencement
Dates

    

    (a)           General.  If,
in the case of a Meeting Fee Deferral Election, the first amount credited to a
particular Deferred Stock Compensation Account with respect to such Director is
credited after the relevant payment commencement date specified in Section 5(b)
hereof or any amount is credited to such a Deferred Stock Compensation Account
after a lump sum payment has been made pursuant to Section 5(b) hereof from such
Deferred Stock Compensation Account, payment of shares credited to such Deferred
Stock Compensation Account shall be made or commence on the April 1 (or if April
1 is not a business day, on the immediately preceding business day) following
the date on which the shares are so credited.

    

    (b)           Delay in
Payment.  Notwithstanding Section 5(b) hereof and except as
otherwise provided in Section 6(c) hereof, a Director may irrevocably elect, by
filing a Notice of Election with the Secretary of the Corporation in the form
prescribed by the Corporation, to commence payment on a date later than the date
specified under Section 5(b) hereof provided that:

    

    
      	
              (i)  

            	
              Such
      election must be made at least twelve (12) months prior to the date on
      which payments otherwise would have commenced pursuant to the election
      under Section 5(b) hereof; and

            

    

    

    
      	
              (ii)  

            	
              The
      payment commencement date specified in such election under this Section
      6(b) must be not less than five (5) years from the date on which payments
      otherwise would have commenced pursuant to the election under Section 5(b)
      hereof.

            

    

    

    The
provisions of this Section 6(b) are intended to comply with Section 409A(4)(C)
of the Code, or any successor section, and shall be interpreted consistently
therewith.

    

    (c)           Section 6(c)
Event.  Notwithstanding Sections 5(b) and 6(b) hereof,
effective for Director Fees and Meeting Fees payable (but for any deferral
elections) on and after January 1 of the year following the date on which the
Notice of Election is filed (and on and after January 1, 2005),  a
Director may irrevocably elect, by filing a Notice of Election with the
Secretary of the Corporation in a form prescribed by the Corporation, to receive
payment of all shares of Common Stock credited to the Director’s Deferred Stock
Compensation Account with respect to such Director Fees and Meeting Fees, upon
the earlier of when payment would be made pursuant to the election under Section
5(b) or 6(b) hereof or in a lump sum immediately following the occurrence of any
Section 6(c) Event, as defined below (a “Section 6(c) Event Election”). A
Section 6(c) Event Election shall be effective on the date on which it is filed
with respect to Director Fees and Meeting Fees payable (but for any deferral
elections) after the time of a person’s initial election to the office of
Director, or any subsequent re-election if immediately prior thereto such person
was not serving as a Director, provided (i) the Director files such Section 6(c)
Event Election within ten (10) business days subsequent to being elected or
re-elected as a Director and (ii) a Section 6(c) Event Election shall only be
effective for Director Fees and Meeting Fees payable for services performed
after the Section 6(c) Event Election is filed.  A Director may
terminate a Section 6(c) Event Election only by filing a Notice of Termination
of Section 6(c) Event Election with the Secretary of the Corporation in the form
prescribed by the Corporation, which shall be effective for Director Fees and
Meeting Fees payable (but for any deferral elections) on and after January 1 of
the year following the date on which such Notice of Termination of Section 6(c)
Event Election is filed.  If payments from a Director’s Deferred Stock
Compensation Account have previously commenced at the time of a Section 6(c)
Event which results in a permissible lump sum payment pursuant to this Section
6(c), for purposes of applying this Section 6(c) shares previously paid from the
Director’s Deferred Stock Compensation Account shall be deemed to be from
Director Fees and Meeting Fees not subject to a Section 6(c) Event Election, to
the extent thereof.  A Section 6(c) Event shall mean the date upon
which any event occurs which constitutes a change in the ownership or effective
control of the Corporation or in the ownership of a substantial portion of the
assets of the Corporation under Section 409A of the Code or any successor
section and Treasury Regulation §1.409A-3(i)(5)(v)-(vii) thereunder or any
successor section, provided that:

    

    
      	
               
      

            	
              (i)

            	
              The
      percentage specified in Treasury Regulation §1.409A-3(i)(5)(v) (addressing
      the percentage change in the ownership of the total fair market value or
      voting power of the Corporation’s stock) shall be 50 percent and not a
      higher percentage;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              The
      percentage specified in Treasury Regulation §1.409-3(i)(5)(vi)(A)(1)
      (addressing the percentage change in the ownership of the voting power of
      the Corporation’s stock) shall be 30 percent and not a higher
      percentage;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              For
      purposes of Treasury Regulation §1.409A-3(i)(5)(vi)(A)(2) (addressing a
      change in the effective control of the Corporation by virtue of a change
      in the composition of the Board), the words “a majority of the members of
      the corporation’s board of directors” shall not be replaced by a higher
      portion; and

            

    

    

    
      	
               
      

            	
              (iv)

            	
              The
      percentage specified in Treasury Regulation §1.409A-3(i)(5)(vii)(A)
      (addressing the percentage change in the ownership of the Corporation’s
      assets) shall be 40 percent and not a higher
  percentage.

            

    

    

    

    SECTION
7

    Non-Alienability of
Benefits

    

    Neither
the Director nor the Director's Beneficiary shall have the right to, directly or
indirectly, alienate, assign, transfer, pledge, anticipate or encumber (except
by reason of death) any amounts or shares of Common Stock that are or may be
payable hereunder nor shall any such amounts or shares be subject to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance,
attachment or garnishment by creditors of the Director or the Director's
Beneficiary or to the debts, contracts, liabilities, engagements, or torts of
any Director or Director's Beneficiary, or transfer by operation of law in the
event of bankruptcy or insolvency of the Director or the Director's Beneficiary,
or any legal process.

    

    

    SECTION
8

    Nature of Deferred Stock
Compensation Accounts

    

    Any
Deferred Stock Compensation Account shall be established and maintained only on
the books and records of the Corporation.  No assets or funds of the
Corporation, a Subsidiary or the Plan shall be removed from the claims of the
Corporation's or a Subsidiary's general or judgment creditors or otherwise made
available, and no shares of Common Stock of the Corporation to be issued
pursuant to a Deferred Stock Compensation Account shall be issued or
outstanding, until such amounts and shares are actually payable to a Director or
a Director's Beneficiary as provided herein.  The Plan constitutes a
mere promise by the Corporation to make payments in the future.  Each
Director and Director's Beneficiary shall have the status of, and their rights
to receive a payment of shares of Common Stock under the Plan shall be no
greater than the rights of, general unsecured creditors of the
Corporation.  No person shall be entitled to any voting rights with
respect to shares credited to a Deferred Stock Compensation Account and not yet
payable to a Director or the Director's Beneficiary.  The Corporation
shall not be obligated under any circumstances to fund any financial obligations
under the Plan and the Plan is intended to constitute an unfunded plan for tax
purposes.  However, the Corporation may, in its discretion, set aside
funds in a trust or other vehicle, subject to the claims of its creditors, in
order to assist it in meeting its obligations under the Plan, if:

    

    
      	
               
      

            	
              (a)

            	
              such
      arrangement will not cause the Plan to be considered a funded deferred
      compensation plan under the Code;

            

    

    

    
      	
               
      

            	
              (b)

            	
              any
      trust created by the Corporation, and any assets held by such trust to
      assist the Corporation in meeting its obligations under the Plan, will
      conform to the terms of the model trust, as described in Rev. Proc. 92-64,
      1992-2 C.B. 422 or any successor;
and

            

    

    

    
      	
               
      

            	
              (c)

            	
              such
      set aside of funds is not described in Section 409A(b) of the Code, or any
      successor provision.

            

    

    

    

    SECTION
9

    Grant
of Stock Options and Stock Appreciation Rights

    And Award of Restricted
Shares

    

    The Committee shall have authority, in
its discretion, (a) to grant “nonstatutory stock options” (i.e., stock options
which do not qualify under Sections 422 and 423 of the Code), (b) to grant stock
appreciation rights, and (c) to award restricted shares.  All grants
and awards pursuant to this Section 9 shall be made on or to be effective on a
Payment Date.  On or as of each Payment Date in 2009 and later years,
the Committee shall grant or award to each Director on such Payment Date
nonstatutory stock options, stock appreciation rights and/or restricted shares
with a total value of seventy thousand dollars ($70,000) (or (a) such other
amount determined by the Board or by any committee of the Board which the Board
authorizes to determine such amount and (b) fifty thousand dollars ($50,000) for
Payment Dates in 2007 and 2008).  The Committee shall determine in its
discretion the portion of each grant and/or award to be comprised of
nonstatutory stock options, stock appreciation rights and restricted shares and
the value of each.

    

    

    SECTION
10

    Terms
and Conditions of

    Stock Options and Stock
Appreciation Rights

    

    Stock options and stock appreciation
rights granted under the Plan shall be subject to the following terms and
conditions:

    

    
      	
              (A)  

            	
              The
      purchase price at which each stock option may be exercised (the “option
      price”) and the base price at which each stock appreciation right may be
      granted (the “Base Price”) shall be such price as the Committee, in its
      discretion, shall determine but shall not be less than one hundred percent
      (100%) of the Fair Market Value per share of the Common Stock covered by
      the stock option or stock appreciation right on the date of
      grant.  For purposes of this Section 10, the Fair Market Value
      of the Common Stock shall be determined as provided in Section 15
      hereof.

            

    

    

    
      	
              (B)  

            	
              The
      option price for each stock option shall be paid in full upon exercise and
      shall be payable in cash in United States dollars (including check, bank
      draft or money order), which may include cash forwarded through a broker
      or other agent-sponsored exercise or financing
      program;  provided, however, that in lieu of such cash the
      person exercising the stock option may if authorized by the Committee pay
      the option price in whole or in part by delivering to the Corporation
      shares of the Common Stock having a Fair Market Value on the date of
      exercise of the stock option, determined as provided in Section 15 hereof,
      equal to the option price for the shares being purchased; except that (i)
      any portion of the option price representing a fraction of a share shall
      in any event be paid in cash and (ii) no shares of the Common Stock which
      have been held for less than one year may be delivered in payment of the
      option price of a stock option.  If the person exercising a
      stock option participates in a broker or other agent-sponsored exercise or
      financing program, the Corporation will cooperate with all reasonable
      procedures of the broker or other agent to permit participation by the
      person exercising the stock option in the exercise or financing
      program.  Notwithstanding any procedure of the broker or other
      agent-sponsored exercise or financing program, if the option price is paid
      in cash, the exercise of the stock option shall not be deemed to occur and
      no shares of the Common Stock will be issued until the Corporation has
      received full payment in cash (including check, bank draft or money order)
      for the option price from the broker or other agent.  The date
      of exercise of a stock option shall be determined under procedures
      established by the Committee, and as of the date of exercise the person
      exercising the stock option shall be considered for all purposes to be the
      owner of the shares with respect to which the stock option has been
      exercised.

            

    

    

    
      	
              (C)  

            	
              Upon
      the exercise of stock appreciation rights the Corporation shall pay to the
      person exercising the stock appreciation rights a number of shares of the
      Common Stock with a Fair Market Value, as defined in Section 15 hereof,
      equal to the difference between the aggregate Fair Market Value, as
      defined in Section 15 hereof, of the Common Stock on
      the date of exercise of the stock appreciation rights and the aggregate
      Base Prices for the stock appreciation rights which are exercised (the
      “Spread”) (rounded down to the next whole number of shares).  No
      fractional shares of the Common Stock shall be issued nor shall cash in
      lieu of a fraction of a share of Common Stock be
      paid.  Notwithstanding the foregoing, at the discretion of the
      Committee, the Corporation may pay to the person exercising the stock
      appreciation rights an amount of cash, rather than shares of the Common
      Stock, equal to the Spread if and only if the payment of cash upon
      exercise of the stock appreciation rights would not cause the stock
      appreciation rights to provide for a deferral of compensation within the
      meaning of Section 409A of the Code.  The date of exercise of a
      stock appreciation right shall be determined under procedures established
      by the Committee.

            

    

    

    
      	
              (D)  

            	
              Unless
      the Committee, in its discretion, shall otherwise determine and subject to
      the terms of Sections 10(F) and 10(G) hereof, stock options and stock
      appreciation rights shall be exercisable by a Director commencing on the
      second anniversary of the date of grant.  Subject to the terms
      of Sections 10(F) and 10(G) hereof providing for earlier termination of a
      stock option or stock appreciation right, no stock option or stock
      appreciation right shall be exercisable after the expiration of ten years
      from the date of grant.  Unless the Committee, in its
      discretion, shall otherwise determine, a stock option or stock
      appreciation right to the extent exercisable at any time may be exercised
      in whole or in part.

            

    

    

    
      	
              (E)  

            	
              Unless
      the Committee, in its discretion, shall otherwise
    determine:

            

    

    

    
      	
               
      

            	
              (i)

            	
              no
      stock option or stock appreciation right shall be transferable or
      assignable by the grantee otherwise
than:

            

    

    

    
      	
              (a)  

            	
              by
      Will; or

            

    

    

    
      	
               
      

            	
              (b)

            	
              if
      the grantee dies intestate, by the laws of descent and distribution of the
      state of domicile of the grantee at the time of death;
  or

            

    

    

    
      	
               
      

            	
              (c)

            	
              to
      the trustee of a trust that is revocable by the grantee alone, both at the
      time of the transfer or assignment and at all times thereafter prior to
      such grantee’s death; and

            

    

    

    
      	
               
      

            	
              (ii)

            	
              all
      stock options and stock appreciation rights shall be exercisable during
      the lifetime of the grantee only by the grantee or by the trustee of a
      trust described in Section 10(E)(i)(c)
hereof.

            

    

    

    A
transfer or assignment of a stock option or a stock appreciation right by a
trustee of a trust described in Section 10(E)(i)(c) to any person other than the
grantee shall be permitted only to the extent approved in advance by the
Committee in writing, in its discretion.  Stock options or stock
appreciation rights held by such trustee also shall be subject to all of the
conditions and restrictions set forth in the Plan and in the applicable
agreement with the grantee as if such trustee were a party to such agreement as
the grantee.  In the event the grantee ceases to be a Director of the
Corporation, the provisions set forth in the Plan and in the applicable
agreement with the grantee shall continue to be applicable to the stock option
or stock appreciation right and shall limit the ability of such trustee to
exercise any such transferred stock options or stock appreciation rights to the
same extent they would have limited the grantee.  The Corporation
shall not have any obligation to notify such trustee of any termination of a
stock option or stock appreciation right due to the termination of service of
the grantee as a Director of the Corporation.

    

    
      	
              (F)  

            	
              Unless
      the Committee, in its discretion, shall otherwise determine, if a grantee
      ceases to be a Director of the Corporation, any outstanding stock options
      and stock appreciation rights held by the grantee shall vest and be
      exercisable and shall terminate, according to the following
      provisions:

            

    

    

    
      	
               
      

            	
              (i)

            	
              Notwithstanding
      Section 10(D) hereof, if a grantee ceases to be a Director of the
      Corporation for any reason other than those set forth in Section 10(F)(ii)
      or (iii) hereof, any then outstanding stock option and stock appreciation
      right held by such grantee (whether or not vested and exercisable by the
      grantee immediately prior to such time) shall vest and be exercisable by
      the grantee (or, in the event of the grantee’s death, by the person
      entitled to do so under the Will of the grantee, or, if the grantee shall
      fail to make testamentary disposition of the stock option or stock
      appreciation right or shall die intestate, by the legal representative of
      the grantee (the “Grantee’s Heir or Representative”)), at any time prior
      to the second anniversary of the date on which the grantee ceases to be a
      Director of the Corporation or the expiration date of the stock option or
      stock appreciation right, whichever is the shorter
  period;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              Unless
      the exercise period of a stock option or stock appreciation right
      following termination of service as Director has been extended as provided
      in Section 13(c) hereof, if during his or her term of office as a
      non-employee Director a grantee is removed from office for cause or
      resigns without the consent of the Board, any then outstanding stock
      option and stock appreciation right held by such grantee shall terminate
      as of the close of business on the last day on which the grantee is a
      Director of the Corporation; and

            

    

    

    
      	
               
      

            	
              (iii)

            	
              Notwithstanding
      Section 10(D) hereof, following the death of a grantee during service as a
      Director of the Corporation, or upon the disability of a Director which
      requires his or her termination as a Director of the Corporation, any
      outstanding stock option and stock appreciation right held by the grantee
      at the time of death or termination as a Director due to disability
      (whether or not vested and exercisable by the grantee immediately prior to
      such time) shall vest and be exercisable, in the case of death of the
      grantee, by the Grantee’s Heir or Representative, or, in the case of
      disability of the grantee, by the grantee at any time prior to the second
      anniversary of the date on which the grantee ceases to be a Director of
      the Corporation or the expiration date of the stock option or stock
      appreciation right, whichever is the shorter
  period.

            

    

    

    Whether a
resignation of a Director is with or without the consent of the Board and
whether a grantee is disabled shall be determined in each case, in its
discretion, by the Committee and such determination by the Committee shall be
final and binding.

    

    
      	
              (G)  

            	
              If
      a grantee of a stock option or stock appreciation right engages in the
      operation or management of a business (whether as owner, partner, officer,
      director, employee or otherwise and whether during or after service as a
      Director of the Corporation) which is in competition with the Corporation
      or any of its Subsidiaries, or solicits any of the Corporation’s customers
      or employees other than for the benefit of the Corporation, the Committee
      may immediately terminate all outstanding stock options and stock
      appreciation rights held by the grantee; provided, however, that this
      sentence shall not apply if the exercise period of a stock option or stock
      appreciation right following termination of service as a Director of the
      Corporation has been extended as provided in Section 13(c)
      hereof.  Whether a grantee has engaged in the operation or
      management of a business which is in competition with the Corporation or
      any of its Subsidiaries, or solicits any of the Corporation’s customers or
      employees other than for the benefit of the Corporation, shall be
      determined, in its discretion, by the Committee, and any such
      determination by the Committee shall be final and
  binding.

            

    

    

    
      	
              (H)  

            	
              All
      stock options and stock appreciation rights shall be confirmed by a
      written agreement or an amendment thereto in a form prescribed by the
      Committee, in its discretion.  Each agreement or amendment
      thereto shall be executed on behalf of the Corporation by the Chief
      Executive Officer (if other than the President), the President or any Vice
      President and by the grantee.  The provisions of such agreements
      need not be identical

            

    

    

    
      	
              (I)  

            	
              In
      the event of a Section 13 Event (as defined in Section 13 hereof) in which
      the Corporation’s stockholders receive consideration in exchange for their
      shares of Common Stock, the Committee shall have the authority to require
      any outstanding stock option and stock appreciation right to be
      surrendered for cancellation by the holder thereof in exchange for a cash
      payment equal to the difference between the Fair Market Value, as defined
      in Section 15 hereof, of the shares of Common Stock subject to the stock
      option or stock appreciation rights on the date of the Section 13 Event
      and their option prices and Base Prices, respectively, provided, however,
      that this Section 10(I) shall not apply to the extent its application
      would cause the stock options or stock appreciation rights to provide for
      a deferral of compensation within the meaning of Section 409A of the
      Code.

            

    

    

    Subject
to the foregoing provisions of this Section 10 and the other provisions of the
Plan, any stock option or stock appreciation right granted under the Plan may be
exercised at such times and in such amounts and be subject to such restrictions
and other terms and conditions, if any, as shall be determined, in its
discretion, by the Committee and set forth in the agreement referred to in
Section 10(H) hereof or an amendment thereto.

    

    

    SECTION
11

    Terms and Conditions of
Restricted Share Awards

    

    (a)           Restricted Share
Awards.  Restricted share awards shall be evidenced by a
written agreement in a form prescribed by the Committee, in its discretion,
which shall set forth the number of shares of the Common Stock awarded, the
restrictions imposed thereon (including, without limitation, restrictions on the
right of the awardee to sell, assign, transfer or encumber such shares while
such shares are subject to the other restrictions imposed under this Section
11), the duration of such restrictions, events (which may, in the discretion of
the Committee, include performance-based events) the occurrence of which would
cause a forfeiture of the restricted shares and such other terms and conditions
as the Committee in its discretion deems appropriate.  Restricted
share awards shall be effective only upon execution of the applicable restricted
share agreement on behalf of the Corporation by the Chief Executive Officer (if
other than the President), the President or any Vice President, and by the
awardee.  The provisions of such agreements need not be
identical.

    

    (b)           Transfers to
Trusts.  Neither this Section 11 nor any other provision of the
Plan shall preclude an awardee from transferring or assigning restricted shares
to (i) the trustee of a trust that is revocable by such awardee alone, both at
the time of the transfer or assignment and at all times thereafter prior to such
awardee’s death or (ii) the trustee of any other trust to the extent approved in
advance by the Committee in writing.  A transfer or assignment of
restricted shares from such trustee to any person other than such awardee shall
be permitted only to the extent approved in advance by the Committee in writing,
and restricted shares held by such trustee shall be subject to all of the
conditions and restrictions set forth in the Plan and in the applicable
agreement as if such trustee were a party to such agreement.

    

    (c)           Default Vesting
Restrictions.  Unless otherwise determined by the Committee,
restricted shares awarded to a Director shall be forfeited if the awardee
terminates as a Director of the Corporation within two (2) years following the
grant of such restricted shares due to the voluntary resignation of the Director
without the consent of the Board or the removal of the Director with
cause.  Any restricted shares which have not previously vested shall
vest and the restrictions related to service as a Director shall lapse upon the
death of a Director or the disability of a Director which requires his or her
termination as a Director of the Corporation.

    

    (d)           Evidence of Shares;
Dividends.  Following a restricted share award and prior to the
lapse or termination of the applicable restrictions, the Corporation, at its
discretion, shall either (i) issue share certificates in the name of the awardee
and hold them in escrow together with related stock powers in blank signed by
the awardee, or (ii) issue the shares in book-entry form in the name of the
awardee.  If share certificates are issued in the name of the awardee,
the awardee shall execute and deliver to the Corporation a blank stock power in
form acceptable to the Corporation with respect to each of the certificates
subject to the restricted share award.  In the case of forfeiture of
the shares, the Corporation shall use the stock power(s) to transfer ownership
of the shares to the Corporation.  Upon the lapse or termination of
the applicable restrictions, the certificate(s) and accompanying blank stock
power(s) shall be delivered to the awardee (or the awardee’s personal
representative).  If shares are issued in book-entry form, the
Corporation shall instruct its transfer agent that the shares are to be
designated as restricted on the transfer agent’s book-entry records of the
owners of the Common Stock, and may not be transferred from the name of the
awardee until the earlier of (i) in the case of forfeiture of the shares, when
the Corporation instructs its transfer agent in writing to record the shares as
owned by the Corporation (rather than by the awardee), or (ii) when requested in
writing by the awardee (or the awardee’s personal representative) after the
Corporation has instructed its transfer agent in writing that such shares are no
longer to be designated as restricted on the transfer agent’s book-entry records
due to the lapse or termination of the applicable
restrictions.  Except as provided in Section 12 hereof, the Committee,
in its discretion, may determine that dividends and other distributions on the
shares shall not be paid to the awardee until the lapse or termination of the
applicable restrictions.  Unless otherwise provided, in its
discretion, by the Committee, any such dividends or other distributions shall
not bear interest.  Upon the lapse or termination of the applicable
restrictions (and not before such time), the unpaid dividends, if any, shall be
delivered to the awardee.  From the date a restricted share award is
effective, the awardee shall be a shareholder with respect to all of the
restricted shares and shall have all the rights of a shareholder with respect to
the restricted shares, including the right to vote the restricted shares and to
receive all dividends, and other distributions paid with respect to the
restricted shares, subject only to the preceding provisions of this Section
11(d) and the other restrictions imposed by the Committee

    

    (e)           Competition.  If
an awardee of restricted shares engages in the operation of management of a
business (whether as owner, partner, officer, director, employee or otherwise)
which is in competition with the Corporation or any of its Subsidiaries or
solicits any of the Corporation’s customers or employees other than for the
benefit of the Corporation, the Committee may immediately declare forfeited all
restricted shares held by the awardee as to which the restrictions have not yet
lapsed.  Whether an awardee has engaged in the operation or management
of a business which is in competition with the Corporation or any of its
Subsidiaries or has solicited any of the Corporation’s customers or employees
other than for the benefit of Corporation, shall also be determined, in its
discretion, by the Committee, and any such determination by the Committee shall
be final and binding.

    

    

    SECTION
12

    Adjustment and Substitution
of Shares

    

    (a)           Dividends or Distributions
in Common Stock.  If a dividend or other distribution payable
in shares of Common Stock shall be declared upon the Common Stock, the number of
shares of Common Stock (i) credited to any Deferred Stock Compensation Account,
(ii) then subject to any outstanding stock options and stock appreciation rights
and (iii) which may be issued or credited under Section 1 hereof, on the date
fixed for determining the stockholders entitled to receive such stock dividend
or distribution, shall be adjusted by adding thereto the number of shares of the
Common Stock which would have been distributable thereon if such shares had been
outstanding on such date.  Shares of Common Stock so distributed with
respect to any restricted shares shall be subject to the same restrictions as
are applicable to the restricted shares on which they were
distributed.

    

    (b)           Exchanges.  If
the outstanding shares of the Common Stock shall, in whole or in part, be
changed into or exchangeable for a different number, or different kind(s) or
class(es) of shares of stock or other securities of the Corporation or another
corporation, or cash or other property, whether through reorganization,
reclassification, recapitalization, stock split-up, combination of shares,
merger, consolidation or otherwise, then (i) there shall be substituted for each
share of the Common Stock credited to any Deferred Stock Compensation Account,
subject to any then outstanding stock option and stock appreciation right, and
which may be issued or credited under Section 1 hereof, the number and kind of
shares of stock or other securities or the cash or property into which each
outstanding share of the Common Stock shall be so changed or for which each such
share shall be exchangeable, and (ii) the Board shall adopt such amendments to
the Plan as it deems necessary or desirable to carry out the purposes of the
Plan, including without limitation the continuing deferral of any shares,
securities, cash or other property then credited to any Deferred Stock
Compensation Accounts.  Unless otherwise determined by the Committee,
in its discretion, any such stock or securities, as well as any cash or other
property, into or for which any restricted shares shall be changed or
exchangeable in any such transaction, shall be subject to the same restrictions
as are applicable to the restricted shares in respect of which such stock,
securities, cash or other property was issued or distributed.

    

    (c)           Option Price and Base
Price.  In case of any adjustment or substitution as provided
for in this Section 12, the aggregate option price and Base Price for all shares
subject to each then outstanding stock option and stock appreciation right,
respectively, prior to such adjustment and substitution shall be the aggregate
option price and Base Price, respectively, for all shares of stock or other
securities (including any fraction) to which such shares have been adjusted or
which shall have been substituted for such shares.  Any new option
price or Base Price per share shall be carried to at least three decimal places
with the last decimal place rounded upwards to the nearest whole
number.

    

    (d)           Other
Events.  If the outstanding shares of Common Stock shall be
changed in value by reason of any spin-off, split-off, or dividend in partial
liquidation, dividend in property other than cash or extraordinary distribution
to holders of the Common Stock, (i) the Committee shall make any adjustments to
the number of shares of Common Stock credited to any Deferred Stock Compensation
Account, and any outstanding stock option or stock appreciation right, which it
determines are equitably required to prevent dilution or enlargement of the
rights of grantees or the value of those shares of Common Stock credited to such
Deferred Stock Compensation Account which would otherwise result from any such
transaction, and (ii) unless otherwise determined by the Committee, in its
discretion, any stock, securities, cash or other property distributed with
respect to any restricted shares or for which any restricted shares shall be
exchanged in any such transaction shall be subject to the same restrictions as
are applicable to the restricted shares in respect of which such stock,
securities, cash or other property was distributed or exchanged.

    

    (e)           Fractional
Shares.  No adjustment or substitution provided for in this
Section 12 shall require the Corporation to issue or sell a fraction of a share
or other security.  Accordingly, all fractional shares or other
securities which result from any such adjustment or substitution shall be
eliminated and not carried forward to any subsequent adjustment or substitution.
Owners of restricted shares shall be treated in the same manner as owners of
Common Stock which is not subject to restrictions with respect to fractional
shares created by an adjustment or substitution of shares, except that, unless
otherwise determined by the Committee, in its discretion, any cash or other
property paid in lieu of a fractional share shall be subject to restrictions
similar to those applicable to the restricted shares exchanged
therefor.

    

    (f)           Limited
Rights.  Except as provided in this Section 12, a Director
shall have no rights by reason of any issue by the Corporation of stock of any
class or securities convertible into stock of any class, any subdivision or
consolidation of shares of stock of any class, the payment of any stock dividend
or any other increase or decrease in the number of shares of stock of any
class.

    

    

    SECTION
13

    Additional Rights in Certain
Events

    

    (a) Definitions.  For
purposes of this Section 13, the following terms shall have the following
meaning:

    

    
      	
              (1)  

            	
              The
      term “Person” shall be used as that term is used in Sections 13(d) and
      14(d) of the 1934 Act.

            

    

    

    
      	
              (2)  

            	
              “Beneficial
      Ownership” shall be determined as provided in Rule 13d-3 under the 1934
      Act as in effect on the effective date of the
  Plan.

            

    

    

    
      	
              (3)  

            	
              “Voting
      Shares” shall mean all securities of a company entitling the holders
      thereof to vote in an annual election of directors (without consideration
      of the rights of any class of stock other than the Common Stock to elect
      directors by a separate class vote); and a specified percentage of “Voting
      Power” of a company shall mean such number of the Voting Shares as shall
      enable the holders thereof to cast such percentage of all the votes which
      could be cast in an annual election of directors (without consideration of
      the rights of any class of stock other than the Common Stock to elect
      Directors by a separate class
vote).

            

    

    

    
      	
              (4)  

            	
              “Tender
      Offer” shall mean a tender offer or exchange offer to acquire securities
      of the Corporation (other than such an offer made by the Corporation or
      any Subsidiary), whether or not such offer is approved or opposed by the
      Board.

            

    

    

    
      	
              (5)  

            	
              “Section
      13 Event” shall mean the date upon which any of the following events
      occurs:

            

    

    

    
      	
              (i)  

            	
              The
      Corporation acquires actual knowledge that any Person other than the
      Corporation, a Subsidiary or any employee benefit plan(s) sponsored by the
      Corporation has acquired the Beneficial Ownership, directly or indirectly,
      of securities of the Corporation entitling such Person to 20% or more of
      the Voting Power of the
Corporation;

            

    

    

    
      	
              (ii)  

            	
              (a)
      A Tender Offer is made to acquire securities of the Corporation entitling
      the holders thereof to 20% or more of the Voting Power of the Corporation;
      or (b) Voting Shares are first purchased pursuant to any other Tender
      Offer;

            

    

    

    
      	
              (iii)  

            	
              At
      any time less than 60% of the members of the Board shall be individuals
      who were either (a) directors on the effective date of the Plan or (b)
      individuals whose election, or nomination for election, was approved by a
      vote (including a vote approving a merger or other agreement providing the
      membership of such individuals on the Board) of at least two-thirds of the
      directors then still in office who were directors on the effective date of
      the Plan or who were so approved;

            

    

    

    
      	
              (iv)  

            	
              The
      shareholders of the Corporation shall approve an agreement or plan
      providing for the Corporation to be merged, consolidated or otherwise
      combined with, or for all or substantially all its assets or stock to be
      acquired by, another corporation, as a consequence of which the former
      shareholders of the Corporation will own, immediately after such merger,
      consolidation, combination or acquisition, less than a majority of the
      Voting Power of such surviving or acquiring corporation or the parent
      thereof; or

            

    

    

    
      	
              (v)  

            	
              The
      shareholders of the Corporation shall approve any liquidation of all or
      substantially all of the assets of the Corporation or any distribution to
      security holders of assets of the Corporation having a value equal to 10%
      or more of the total value of all the assets of the
      Corporation;

            

    

    

    provided,
however, that (A) if securities beneficially owned by a grantee are included in
determining the Beneficial Ownership of a Person referred to in paragraph 5(i)
hereof or (B) a grantee is required to be named pursuant to Item 2 of the
Schedule 14D-1 (or any similar successor filing requirement) required to be
filed by the bidder making a Tender Offer referred to in paragraph 5(ii), then
no Section 13 Event with respect to such grantee shall be deemed to have
occurred by reason of such event.

    

    (b) Acceleration of the Exercise
Date of Stock Options and Stock Appreciation Rights.  Unless
the agreement referred to in Section 10(H) hereof, or an amendment thereto,
shall otherwise provide, notwithstanding any other provision contained in the
Plan, in case any Section 13 Event occurs all outstanding stock options and
stock appreciation rights shall become immediately and fully exercisable whether
or not otherwise exercisable by their terms.

    

    (c) Extension of the Expiration
Date of Stock Options and Stock Appreciation Rights.  Unless
the agreement referred to in Section 10(H) hereof, or an amendment thereto,
shall otherwise provide, notwithstanding any other provision contained in the
Plan, all stock options and stock appreciation rights held by a grantee whose
service with the Corporation as a Director terminates within one year of any
Section 13 Event for any reason shall be exercisable for the longer of (i) a
period of three months from the date of such termination of service or (ii) the
period specified in Section 10(F) hereof, but in no event after the expiration
date of the stock option or stock appreciation right.

    

    (d) Lapse of Restrictions on
Restricted Share Awards.  Unless the agreement referred to in
Section 11 hereof, or an amendment thereto, shall otherwise provide,
notwithstanding any other provision contained in the Plan, if any Section 13
Event occurs prior to the scheduled lapse of all restrictions applicable to
restricted share awards under the Plan, all such restrictions shall lapse upon
the occurrence of any such Section 13 Event regardless of the scheduled lapse of
such restrictions.

    

    

    SECTION
14

    Administration of Plan;
Hardship Withdrawal

    

    Except
where the terms of the Plan specifically grant authority to the Committee of the
Board or where the Board delegates authority to the Committee, full power and
authority to construe, interpret, and administer the Plan shall be vested in the
Board.  Decisions of the Committee and the Board shall be final,
conclusive, and binding upon all parties.  Notwithstanding the terms
of a Stock Deferral Election or a Meeting Fee Deferral Election made by a
Director hereunder, the Committee may, in its sole discretion, permit the
withdrawal of shares credited to a Deferred Stock Compensation Account with
respect to Director Fees or Meeting Fees previously payable upon the request of
a Director or the Director's representative, or following the death of a
Director upon the request of a Director's Beneficiary or such beneficiary's
representative, if the Board determines that the Director or the Director's
Beneficiary, as the case may be, is confronted with an unforeseeable
emergency.  For this purpose, an unforeseeable emergency means a
severe financial hardship to the Director or the Director’s Beneficiary
resulting from an illness or accident of the Director or the Director’s
Beneficiary, the spouse, or a dependent (as defined in Section 152(a) of the
Code) of the Director or the Director’s Beneficiary, loss of the Director or the
Director’s Beneficiary’s property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Director or the Director’s Beneficiary.  The
Director or the Director's Beneficiary shall provide to the Committee evidence
as the Committee, in its discretion, may require to demonstrate such emergency
exists and financial hardship would occur if the withdrawal were not
permitted.  The withdrawal shall be limited to the amount reasonably
necessary to satisfy such emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the distribution, after taking into
account the extent to which such hardship is or may be relieved through
reimbursement or compensation by insurance or otherwise, by liquidation of the
Director or the Director’s Beneficiary’s assets (to the extent the liquidation
of such assets would not itself cause severe financial hardship) or by the
cessation of deferrals under the Plan.  Cash needs arising from
foreseeable events, such as the purchase or building of a house or education
expenses, will not be considered to be the result of an unforeseeable financial
emergency.  Payment shall be made, as soon as practicable after the
Committee approves the payment and determines the number of shares which shall
be withdrawn in a single lump sum from the Deferred Stock Compensation
Account(s) providing for the latest payments or series of
payments.  No Director shall participate in any decision of the
Committee regarding such Director's request for a withdrawal under this Section
14.

    

    

    SECTION
15

    Fair Market
Value

    

    Fair
Market Value of the Common Stock shall be the mean between the following prices,
as applicable, for the date as of which Fair Market Value is to be determined as
quoted in The Wall Street
Journal (or in any other reliable publication as the Board of the
Corporation or its delegate, in its discretion, may determine to rely
upon):

    

    
      	
               
      

            	
              (a)

            	
              if
      the Common Stock is listed on the New York Stock Exchange, the highest and
      lowest sales prices per share of the Common Stock as quoted in the
      NYSE-Composite Transactions listing for such
  date;

            

    

    

    
      	
               
      

            	
              (b)

            	
              if
      the Common Stock is not listed on such exchange, the highest and lowest
      sales prices per share of Common Stock for such date on (or on any
      composite index including) the principal United States securities exchange
      registered under the Securities Exchange Act of 1934, as amended (the
      "1934 Act") on which the Common Stock is listed;
  or

            

    

    

    
      	
               
      

            	
              (c)

            	
              if
      the Common Stock is not listed on any such exchange, the highest and
      lowest sales prices per share of the Common Stock for such date on the
      National Association of Securities Dealers Automated Quotations System or
      any successor system then in use
("NASDAQ").

            

    

    

    If there
are no such sale price quotations for the date as of which Fair Market Value is
to be determined but there are such sale price quotations within a reasonable
period both before and after such date, then Fair Market Value shall be
determined by taking a weighted average of the means between the highest and
lowest sales prices per share of the Common Stock as so quoted on the nearest
date before and the nearest date after the date as of which Fair Market Value is
to be determined.  The average should be weighted inversely by the
respective numbers of trading days between the selling dates and the date as of
which Fair Market Value is to be determined.  If there are no such
sale price quotations on or within a reasonable period both before and after the
date as of which Fair Market Value is to be determined, then Fair Market Value
of the Common Stock shall be the mean between the bona fide bid and asked prices
per share of Common Stock as so quoted for such date on NASDAQ, or if none, the
weighted average of the means between such bona fide bid and asked prices on the
nearest trading date before and the nearest trading date after the date as of
which Fair Market Value is to be determined, if both such dates are within a
reasonable period.  The average is to be determined in the manner
described above in this Section 15.  If the Fair Market Value of the
Common Stock cannot be determined on the basis previously set forth in this
Section 15 on the date as of which Fair Market Value is to be determined, the
Board or its delegate shall in good faith determine the Fair Market Value of the
Common Stock on such date.  Fair Market Value shall be determined
without regard to any restriction other than a restriction which, by its terms,
will never lapse.

    

    

    SECTION
16

    Securities Laws; Issuance of
Shares

    

    The obligation of the Corporation to
issue or credit shares of Common Stock under the Plan shall be subject
to:

    

    
      	
              (i)  

            	
              the
      effectiveness of a registration statement under the Securities Act of
      1933, as amended, with respect to such shares, if deemed necessary or
      appropriate by counsel for the
Corporation;

            

    

    

    
      	
              (ii)  

            	
              the
      condition that the shares shall have been listed (or authorized for
      listing upon official notice of issuance) upon each stock exchange, if
      any, on which the Common Stock shares may then be listed;
    and

            

    

    

    
      	
              (iii)  

            	
              all
      other applicable laws, regulations, rules and orders which may then be in
      effect.

            

    

    

    If, on
the date on which any shares of Common Stock would be issued pursuant to a
current stock payment under Section 3(a) hereof or credited to a Deferred Stock
Compensation Account and after consideration of any shares of Common Stock
subject to outstanding stock options and stock appreciation rights and awards of
restricted shares, sufficient shares of Common Stock are not available under the
Plan or the Corporation is not obligated to issue shares pursuant to this
Section 16, then no shares of Common Stock shall be issued or credited but
rather, in the case of a current stock payment under Section 3(a) hereof, cash
shall be paid in payment of the Director Fees payable, and in the case of a
Deferred Stock Compensation Account, Director Fees and Meeting Fees shall be
credited in cash to a deferred cash compensation account in the name of the
Director.  The Board shall adopt appropriate rules and regulations to
carry out the intent of the immediately preceding sentence if the need for such
rules and regulations arises.

    

    

    SECTION
17

    Governing Law;
Integration

    

    The
provisions of this Plan shall be interpreted and construed in accordance with
the laws of the Commonwealth of Pennsylvania.  The Plan contains all
of the understandings and representations between the Corporation and any of the
Directors and supersedes any prior understandings and agreements entered into
between them regarding the subject matter of the Plan.  There are no
representations, agreements, arrangements or understandings, oral or written,
between the Corporation and any of the Directors relating to the subject matter
of the Plan which are not fully expressed in the Plan.

    

    

    SECTION
18

    Effect
of the Plan on the

    Rights of Corporation and
Shareholders

    

    Nothing
in the Plan or in any stock option, stock appreciation right or restricted share
award under the Plan or in any agreement providing for any of the foregoing or
any amendment thereto shall confer any right to any person to continue as a
Director of the Corporation or interfere in any way with the rights of the
shareholders of the Corporation or the Board to elect and remove
Directors.

    

    

    SECTION
19

    Amendment and
Termination

    

    (a)           General.  The
right to amend the Plan at any time and from time to time and the right to
terminate the Plan at any time are hereby specifically reserved to the Board;
provided that no amendment of the Plan shall:

    

    
      	
               
      

            	
              (i)

            	
              be
      made without shareholder approval if shareholder approval of the amendment
      is at the time required by the rules of the NASDAQ National Market System
      or any stock exchange on which the Common Stock may then be listed;
      or

            

    

    

    
      	
               
      

            	
              (ii)

            	
              otherwise
      amend the Plan in any manner that would cause the shares of Common Stock
      issued or credited under the Plan not to qualify for the exemption from
      Section 16(b) of the 1934 Act provided by Rule
  16b-3.

            

    

    

    No
amendment or termination of the Plan shall, without the written consent of the
holder of shares of Common Stock issued or credited under the Plan or the holder
of a stock option, stock appreciation right or restricted shares theretofore
granted or awarded under the Plan, adversely affect the rights of such holder
with respect thereto.

    

    (b)           Rule
16b-3.  Notwithstanding anything contained in the preceding
paragraph or any other provision of the Plan, the Board shall have the power to
amend the Plan in any manner deemed necessary or advisable for shares of Common
Stock issued or credited under the Plan to qualify for the exemption provided by
Rule 16b-3 (or any successor rule relating to exemption from Section 16(b) of
the 1934 Act), and any such amendment shall, to the extent deemed necessary or
advisable by the Board, be applicable to any outstanding shares of Common Stock
theretofore issued or credited under the Plan.

    

    (c)           Termination
Date.  Notwithstanding any other provision of the
Plan:

    

    
      	
               
      

            	
              (i)

            	
              no
      shares of Common Stock shall be issued or credited on a Payment Date under
      the Plan after November 15, 2014;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              no
      shares of Common Stock shall be credited with respect to Meeting Fees
      payable under the Plan after November 15,
2014;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              no
      stock option or stock appreciation right shall be granted under the Plan
      after November 15, 2014; and

            

    

    

    
      	
               
      

            	
              (iv)

            	
              no
      restricted shares shall be awarded under the Plan after November 15,
      2014.

            

    

    

    

    SECTION
20

    Effective
Date

    

    The
effective date and date of adoption of the Plan shall be December 9, 1994, the
date of adoption of the Plan by the Board.exhibit10-11equityincentive.htm

    

    
      
        

      

    

     

    Exhibit
10.11

     

    MATTHEWS
INTERNATIONAL CORPORATION

    2007
EQUITY INCENTIVE PLAN,

    AS
AMENDED THROUGH SEPTEMBER 26, 2008

    

    

    SECTION
1

    

    Purpose;
Definitions

    

    1.1           Purpose.  The
purposes of the 2007 Equity Incentive Plan, as amended through September 26,
2008 (the "Plan") are to encourage eligible employees of Matthews International
Corporation (the "Corporation") and its Subsidiaries to increase their efforts
to make the Corporation and each Subsidiary more successful, to provide an
additional inducement for such employees to remain with the Corporation or a
Subsidiary, to reward such employees by providing an opportunity to acquire
shares of Common Stock on favorable terms and
to provide a means through which the Corporation may attract able persons to
enter the employ of the Corporation or one of its Subsidiaries.

    

    1.2 Certain
Definitions.  In addition to terms defined herein in the first
place where they are used, the following terms are defined as set forth
below:

    

    (a)           “Award”
means a stock option, a stock appreciation right, restricted stock, restricted
stock units, performance units or other stock-based award granted under the
Plan.

    

    (b)           “Base
Price” shall have the meaning set forth in Section 5.3.

    

    (c)           "Common
Stock" shall mean the Class A Common Stock, par value $1.00 per share, of the
Corporation.

    

    (d)           “Fair
Market Value” with respect to a share of the Common Stock shall mean the mean
between the following prices, as applicable, for the date as of which Fair
Market Value is to be determined as quoted in The Wall Street Journal
(or in such other reliable publication as the Committee, in its sole discretion,
may  determine to rely upon):  (i) if the Common Stock is
listed on the New York Stock Exchange, the highest and lowest sales prices per
share of the Common Stock as quoted in the NYSE-Composite Transactions listing
for such date, (ii) if the Common Stock is not listed on such exchange, the
highest and lowest sales prices per share of Common Stock for such date on (or
on any composite index including) the principal United States of America
securities exchange registered under the 1934 Act on which the Common Stock is
listed or (iii) if the Common Stock is not listed on any such exchange, the
highest and lowest sales prices per share of the Common Stock for such date on
the National Association of Securities Dealers Automated Quotations System or
any successor system then in use ("NASDAQ").  If there are no such
sale price quotations for the date as of which Fair Market Value is to be
determined but there are such sale price quotations within a reasonable period
both before and after such date, then Fair Market Value shall be determined by
taking a weighted average of the means between the highest and lowest sales
prices per share of the Common Stock as so quoted on the nearest date before and
the nearest date after the date as of which Fair Market Value is to be
determined.  The average should be weighted inversely by the
respective numbers of trading days between the selling dates and the date as of
which Fair Market Value is to be determined.  If there are no such
sale price quotations on or within a reasonable period both before and after the
date as of which Fair Market Value is to be determined, then Fair Market Value
of the Common Stock shall be the mean between the bona fide bid and asked prices
per share of Common Stock as so quoted for such date on NASDAQ, or if none, the
weighted average of the means between such bona fide bid and asked prices on the
nearest trading date before and the nearest trading date after the date as of
which Fair Market Value is to be determined, if both such dates are within a
reasonable period.  The average is to be determined in the manner
described above in this definition.  If the Fair Market Value of the
Common Stock cannot be determined on the basis previously set forth in this
definition on the date as of which Fair Market Value is to be determined, the
Committee shall in good faith and in conformance with the requirements of
Section 409A of the Code, to the extent applicable to an Award, determine the
Fair Market Value of the Common Stock on such date.  Fair Market Value
shall be determined without regard to any restriction other than a restriction
which, by its terms, will never lapse.

    

    (e)           “Free-Standing
SARs” shall have the meaning set forth in Section 5.2.

    

    (f)           “Participant”
means an eligible employee selected by the Committee who has received an Award
under the Plan and any transferee or transferees of such employee to the extent
the transfer is permitted under the Plan.

    

    (g)           “Performance
Goals” means the performance goals, if any, established by the Committee in
connection with the grant of restricted stock, restricted stock units,
performance units or other Awards.  In the case of Qualified
Performance-Based Awards, the “Performance Goals” means such performance goals
based on one or more of the following:

    

    
      	
               
      

            	
              (i)

            	
              The
      following criteria for the Corporation on a consolidated basis, one or
      more of its direct or indirect Subsidiaries, and/or one or more divisions
      of the foregoing, either in absolute terms or relative to the performance
      of (x) the Corporation, its Subsidiaries or divisions (for a different
      period), (y) one or more other companies or (z) an index covering multiple
      companies:

            

    

    

    
      	
              1.

            	
              net
      income

            
	
              2.

            	
              economic
      value added (earnings less a capital charge)

            
	
              3.

            	
              EBITDA
      (earnings before interest, taxes, depreciation and
      amortization)

            
	
              4.

            	
              sales

            
	
              5.

            	
              costs

            
	
              6.

            	
              gross
      margin

            
	
              7.

            	
              operating
      margin

            
	
              8.

            	
              pre-tax
      profit or income

            
	
              9.

            	
              market
      share

            
	
              10.

            	
              return
      on net assets

            
	
              11.

            	
              return
      on assets

            
	
              12.

            	
              return
      on capital

            
	
              13.

            	
              return
      on invested capital

            
	
              14.

            	
              cash
      flow

            
	
              15.

            	
              free
      cash flow

            
	
              16.

            	
              operating
      cash flow

            
	
              17.

            	
              operating
      income

            
	
              18.

            	
              earnings
      before interest and taxes

            
	
              19.

            	
              working
      capital

            
	
              20.

            	
              innovation
      as measured by a percentage of sales from new
  products

            

    

    

    
      	
              (ii)

            	
              The
      following criteria for the Corporation, either in absolute terms or
      relative to the performance of the Corporation (for a different period),
      one or more other companies or an index covering multiple
      companies:

            

    

    

    
      	
              1.

            	
              stock
      price

            
	
              2.

            	
              return
      on shareholders’ equity

            
	
              3.

            	
              earnings
      per share

            
	
              4.

            	
              cash
      flow per share

            
	
              5.

            	
              total
      shareholder return (stock price appreciation plus
    dividends)

            

    

    

    (h)           “Qualified
Performance-Based Award” means an Award intended to qualify for the Section
162(m) Exemption, as provided in Section 12.

    

    (i)           "Subsidiary"
means any corporation, partnership, joint venture, limited liability company or
other entity in an unbroken chain of entities beginning with the Corporation if
each of the entities other than the last entity in the unbroken chain owns an
equity interest possessing at least fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other entities in
the chain.

    

    (j)           “Tandem
SARs” shall have the meaning set forth in Section 5.2.

    

    

    SECTION
2

    

    Administration

    

    2.1.                                                                                                                                Committee.  The
Plan shall be administered by a Committee (the "Committee") appointed by the
Board of Directors of the Corporation (the "Board") and consisting of not less
than two members of the Board, who, at the time of their appointment to the
Committee and at all times during their service as members of the Committee, are
(a) "Non-Employee Directors" as then defined under Rule 16b-3 under the
Securities Exchange Act of 1934, as amended (the "1934 Act"), or any successor
rule, (b) "outside directors" under Section 162(m)(4)(C) of the Internal Revenue
Code of 1986 as amended (the “Code”) or any successor provision, and (c)
independent directors under the applicable rules of any applicable stock
exchange or NASDAQ, if the Common Stock is subject to such rules.  The
Committee shall have plenary authority to interpret the Plan and prescribe such
rules, regulations and procedures in connection with the operations of the Plan
as it shall deem to be necessary and advisable for the administration of the
Plan consistent with the purposes of the Plan.  Without limitation of
the foregoing, the Committee shall have the authority, subject to the terms and
conditions of the Plan:

    

    (a) to select
the employees to whom Awards may be made;

    

    (b) to
determine whether and to what extent incentive stock options, nonstatutory stock
options, stock appreciation rights, restricted stock, restricted stock units,
performance units, other Awards of or based upon Common Stock, or any
combination thereof, are to be granted hereunder;

    

    (c) to
determine the number of shares of Common Stock to be covered by each Award made
hereunder;

    

    (d) to
determine the terms and conditions of each Award made hereunder, based on such
factors as the Committee shall determine;

    

    (e) subject
to Section 2.5, to modify, amend or adjust the terms and conditions of any
Award;

    

    (f) to adopt,
alter and repeal such administrative rules, guidelines and practices governing
the Plan as it shall from time to time deem advisable;

    

    (g) to
interpret the terms and provisions of the Plan and any Award under the Plan (and
any agreement under Section 2.5 relating thereto);

    

    (h) subject
to Section 2.5, to accelerate the vesting or lapse of restrictions on any
outstanding Award, other than a Qualified Performance-Based Award, based in each
case on such considerations as the Committee in its sole discretion
determines;

    

    (i) to decide
all other matters that must be determined in connection with an
Award;

    

    (j) to
determine whether, to what extent and under what circumstances cash, shares of
Common Stock and other property and other amounts payable with respect to an
Award under this Plan shall be deferred either automatically or at the election
of the employee;

    

    (k) to
establish any “blackout” period that the Committee in its sole discretion deems
necessary or advisable; and

    

    
      	
              (l)  

            	
              to
      otherwise administer the Plan.

            

    

    

    In
determining any Award to be made to any eligible employee, the Committee shall
consider the position and the responsibilities of the employee being considered,
the nature and value to the Corporation or a Subsidiary of his or her services,
his or her present and/or potential contribution to the success of the
Corporation or a Subsidiary and such other factors as the Committee may deem
relevant.  The Committee may, except to the extent prohibited by
applicable law or the listing standards of the stock exchange which is the
principal market for the Common Stock, allocate all or any portion of its
responsibilities and powers to any one or more of its members and may delegate
all or any part of its responsibilities and powers to any officers of the
Corporation or committee of officers of the Corporation selected by it, except
with respect to Awards (including Qualified Performance-Based Awards) to any
covered employees as defined in Section 162(m)(3) of the Code (“Covered
Employees”) or persons subject to Section 16 of the Exchange Act.

    

               2.2.                      Committee
Action.  The Committee shall keep records of action taken at
its meetings.  A majority of the Committee shall constitute a quorum
at any meeting and the acts of a majority of the members present at any meeting
at which a quorum is present, or acts approved in writing by all members of the
Committee, shall be the acts of the Committee.

    

    2.3           Committee
Discretion.  Any determination made by the Committee or by an
appropriately delegated officer pursuant to delegated authority under the
provisions of the Plan with respect to any Award shall be made in the sole
discretion of the Committee or such officer at the time of the Award or, unless
in contravention of any express term of the Plan, at any time thereafter. All
decisions made by the Committee or any appropriately delegated officer pursuant
to the provisions of the Plan shall be final and binding on all persons,
including the Corporation and the employees eligible under the
Plan.

    

    2.4           Cancellation; Suspension;
Clawback.  Any or all outstanding Awards to a Participant may,
at any time between the date of grant and the third anniversary of any exercise,
payment or vesting of such Awards, in the Committee’s sole discretion and
subject to such terms and conditions established by the Committee, be cancelled,
suspended, or required to be repaid to the Corporation if the Participant
(whether during or after termination of employment with the Corporation and its
Subsidiaries) (i) engages in the operation or management of a business (whether
as owner, partner, officer, director, employee or otherwise) which is in
competition with the Corporation or any of its Subsidiaries, (ii) induces or
attempts to induce any customer, supplier, licensee or other individual,
corporation or other business organization having a business relationship with
the Corporation or any of its Subsidiaries to cease doing business with the
Corporation or any of its Subsidiaries or in any way interferes with the
relationship between any such customer, supplier, licensee or other person and
the Corporation or any of its Subsidiaries, (iii) solicits any employee of the
Corporation or any of its Subsidiaries to leave the employment thereof or in any
way interferes with the relationship of such employee with the Corporation or
any of its Subsidiaries, or (iv) makes any statements or comments, orally or in
writing, of a defamatory or disparaging nature regarding the Corporation or any
of its Subsidiaries (including but not limited to regarding any of their
respective businesses, officers, directors, personnel, products or policies),
provided, however, that this sentence shall not apply following the occurrence
of a Section 11 Event (as defined in Section 11) unless the agreement under
Section 2.5 specifically so provides.  Whether a Participant has
engaged in any such activities shall also be determined, in its sole discretion,
by the Committee, and any such determination by the Committee shall be final and
binding.

    

    2.5           Agreements.  The
terms and conditions of each Award shall be set forth in a written (or
electronic) agreement, which shall be delivered to the Participant receiving
such Award upon, or as promptly as is reasonably practicable following, the
making of such Award.  The effectiveness of an Award shall be subject
to the agreement being signed by the Corporation and the Participant receiving
the Award unless otherwise provided in the agreement.  Unless
otherwise provided in the agreement, each agreement or amendment thereto shall
be executed on behalf of the Corporation by the Chief Executive Officer (if
other than the President), the President or any Vice President and by the
Participant.  The agreement confirming a stock option shall specify
whether the stock option is an incentive stock option or a nonstatutory stock
option.  The provisions of such agreements need not be
identical.  Without the consent of the Participant, upon notice to the
Participant thereof, the Committee may amend any Award to the Participant and
the corresponding agreement in any respect not materially adverse to the
Participant.  All other amendments to the agreement shall be in
writing (including electronic amendments) and executed on behalf of the
Corporation and by the Participant.  Any reference in the Plan to the
agreement under Section 2.5 shall include any amendment to such
agreement.

    

    

    SECTION
3

    

    Eligibility

    

    Those employees of the Corporation or
any Subsidiary (including, but not limited to, Covered Employees) who share
responsibility for the management, growth or protection of the business of the
Corporation or any Subsidiary shall be eligible to receive Awards as described
herein, provided however, that incentive stock options may be granted only to
employees of the Corporation and Subsidiaries which are its subsidiaries within
the meaning of Section 424(f) of the Code.

    

    

    SECTION
4

    

    Shares
Subject to the Plan

    

    4.1           Number of
Shares.  Subject to adjustment as provided in Section 4.5, the
maximum aggregate number of shares of the Common Stock for which Awards may be
made under the Plan shall be 2,200,000 shares.  The maximum number of
shares of Common Stock that may be granted pursuant to options intended to be
incentive stock options shall be 1,000,000 shares.

    

    4.2           Individual
Limit.  The maximum number of shares of Common Stock as to
which Awards other than performance units under Section 8 or Awards under
Section 9 may be made under the Plan to any one Participant in any one calendar
year is 250,000 shares, subject to adjustment and substitution as set forth in
Section 4.5.  For the purposes of this limitation, any adjustment or
substitution made pursuant to Section 4.5 in a calendar year with respect to the
maximum number of shares set forth in the preceding sentence shall also be made
with respect to any shares subject to Awards previously granted under the Plan
to such Participant in the same calendar year.

    

    
      	
              4.3  

            	
              Share
      Counting.

            

    

    

    (a)           For
purposes of the limit set forth in the first sentence of Section 4.1 (but not
for purposes of Section 4.2), each share of Common Stock which is subject to an
Award other than a stock option or a stock appreciation right shall be counted
as two (2) shares rather than one (1) share, provided, however, that in case of
performance units, shares of Common Stock shall be counted as two (2) shares
rather than one (1) share for each actual share issued only at the time, if any,
of the actual issuance of shares pursuant to the performance unit
Award.

    

    (b)           Except
in the case of performance unit Awards (where shares of Common Stock are counted
only upon actual issuance of the shares pursuant to Section 4.3(a)) to the
extent that any Award is forfeited, or any option and the Tandem SAR (if any) or
any Free-Standing SAR terminates, expires or lapses without being exercised, or
any Award is settled for cash, the shares of Common Stock subject to such Awards
shall again be available for Awards under the Plan under Section
4.1.  However, shares of Common Stock subject to such Awards shall
continue to be counted for purposes of Section 4.2 or Section 9, as
applicable.

    

    (c)           If
the exercise price of any option and/or the tax withholding obligations relating
to any Awards are satisfied by delivering shares (either actually or through
attestation) or withholding shares relating to such Award, the gross number of
shares subject to the Award shall nonetheless be deemed to have been granted for
purposes of Sections 4.1 and 4.2 and any shares which are delivered will not be
added to the aggregate number of shares under Section 4.1 for which Awards may
be made under the Plan.

    

    (d)           If
a Tandem SAR is granted, each share of Common Stock subject to both the Tandem
SAR and related stock option shall be counted as only one share of Common Stock
for purposes of Sections 4.1 and 4.2.

    

    (e)           Each
share of Common Stock subject to a stock option (with or without a Tandem SAR)
or a Free-Standing SAR shall be counted as one share of Common Stock for
purposes of Sections 4.1 and 4.2.

    

    (f)           All
shares of Common Stock covered by a stock appreciation right, to the extent it
is exercised and shares of Common Stock are actually issued upon exercise of the
right, shall be counted for purposes of Sections 4.1 and 4.2, regardless of the
number of shares used to settle the stock appreciation right upon
exercise.

    

    4.4           Common
Stock.  To the extent that the Corporation has such shares of
Common Stock available to it and can issue such shares without violating any law
or regulation, the Corporation will reserve Common Stock for issuance with
respect to an Award payable in Common Stock.  The shares of Common
Stock which may be issued under the Plan may be either authorized but unissued
shares or shares previously issued and thereafter acquired by the Corporation or
partly each, as shall be determined from time to time by the Board.

    

    4.5           Adjustment and Substitution
of Shares.  In the event of a merger, consolidation,
acquisition of shares, stock rights offering, liquidation, separation, spinoff,
disaffiliation of a Subsidiary from the Corporation, extra-ordinary dividend of
cash or other property,
or similar event affecting the Corporation or any of its Subsidiaries
(each, a “Corporate Transaction”), the Committee or the Board shall make such
substitutions or adjustments as it deems appropriate and equitable to prevent
the dilution or enlargement of the rights of Participants to (A) the aggregate
number and kind of shares of Common Stock reserved for issuance and delivery
under the Plan, (B) the various maximum limitations set forth in Sections 4.1
and 4.2 upon certain types of Awards and upon the Awards to individuals, (C) the
number and kind of shares of Common Stock subject to outstanding Awards; and (D)
the exercise price of outstanding Awards.  In the event of a stock
dividend, stock split, reverse stock split, reorganization, share combination,
or recapitalization or similar event affecting the capital structure of the
Corporation (each, a “Share Change”), the Committee or the Board shall make such
substitutions or adjustments as it deems appropriate and equitable to prevent
the dilution or enlargement of the rights of Participants to (A) the aggregate
number and kind of shares of Common Stock reserved for issuance and delivery
under the Plan, (B) the various maximum limitations set forth in Sections 4.1
and 4.2 upon certain types of Awards and upon the Awards to individuals, (C) the
number and kind of shares of Common Stock subject to outstanding Awards; and (D)
the exercise price of outstanding Awards. In the case of Corporate Transactions,
such adjustments may include, without limitation, (1) the cancellation of
outstanding Awards in exchange for payments of cash, property or a combination
thereof having an aggregate value equal to the value of such Awards, as
determined by the Committee or the Board in its sole discretion (it being
understood that in the case of a Corporate Transaction with respect to which
shareholders of Common Stock receive consideration other than publicly-traded
equity securities of the ultimate surviving entity, any such determination by
the Committee that the value of an option or stock appreciation right shall for
this purpose be deemed to equal the excess, if any, of the value of the
consideration being paid for each share pursuant to such Corporate Transaction
over the exercise price of such option or stock appreciation right shall
conclusively be deemed valid); (2) the substitution of other property
(including, without limitation, cash or other securities of the Corporation and
securities of entities other than the Corporation) for the shares subject to
outstanding Awards; and (3) in connection with any disaffiliation of a
Subsidiary, arranging for the assumption of Awards, or replacement of Awards
with new Awards based on other property or other securities (including, without
limitation, other securities of the Corporation and securities of entities other
than the Corporation), by the affected Subsidiary, or by the entity that
controls such Subsidiary following such disaffiliation (as well as any
corresponding adjustments to Awards that remain based upon Corporation
securities). The Committee shall adjust the Performance Goals applicable to any
Awards to reflect any unusual or non-recurring events and other extraordinary
items, impact of charges for restructurings, discontinued operations, and the
cumulative effects of accounting or tax changes, each as defined by generally
accepted accounting principles or as identified in the Corporation’s financial
statements, notes to the financial statements, management’s discussion and
analysis or other of the Corporation’s SEC filings, provided that in the case of
Performance Goals applicable to any Qualified Performance-Based Awards, such
adjustment does not violate Section 162(m) of the Code or cause such Awards not
to qualify for the Section 162(m) Exemption, as defined in Section
12.1.  No adjustment or substitution provided in this Section 4.5
shall require the Corporation or any other entity to issue or sell a fraction of
a share or other security.  Except as provided in this Section 4.5, a
Participant shall not have any rights with respect to any Corporate Transaction
or Share Change.

    

    4.6           Section 409A; Section
162(m); Incentive Stock Options.  Notwithstanding the
foregoing: (i) any adjustments made pursuant to Section 4.5 to Awards that are
considered “deferred compensation” within the meaning of Section 409A of the
Code shall be made in compliance with the requirements of Section 409A of the
Code; (ii) any adjustments made pursuant to Section 4.5 to Awards that are not
considered “deferred compensation” subject to Section 409A of the Code shall be
made in such a manner as to ensure that after such adjustment, the Awards either
(A) continue not to be subject to Section 409A of the Code or (B) comply with
the requirements of Section 409A of the Code; and (iii) in any event, neither
the Committee nor the Board shall have the authority to make any adjustments
pursuant to Section 4.5 to the extent the existence of such authority would
cause an Award that is not intended to be subject to Section 409A of the Code at
the grant date of the Award to be subject thereto.  If any such
adjustment or substitution provided for in Section 4.5 requires the approval of
shareholders in order to enable the Corporation to grant incentive stock options
or to comply with Section 162(m) of the Code, then no such adjustment or
substitution shall be made without the required shareholder
approval.  Notwithstanding the foregoing, in the case of incentive
stock options, if the effect of any such adjustment or substitution would be to
cause the option to fail to continue to qualify as an incentive stock option or
to cause a modification, extension or renewal of such option within the meaning
of Section 424 of the Code, the Committee may determine that such adjustment or
substitution not be made but rather shall use reasonable efforts to effect such
other adjustment of each then outstanding incentive stock option as the
Committee, in its sole discretion, shall deem equitable and which will not
result in any disqualification, modification, extension or renewal (within the
meaning of Section 424 of the Code) of such incentive stock option.

    

    

    SECTION
5

    

    Grant
of Stock Options and Stock Appreciation Rights

    

    5.1           Types of Options; Limit on
Incentive Stock Options.  The Committee shall have authority,
in its sole discretion, to grant "incentive stock options" pursuant to Section
422 of the Code, to grant "nonstatutory stock options" (i.e., stock options
which do not qualify under Sections 422 or 423 of the Code) or to grant both
types of stock options (but not in tandem).  Notwithstanding any other
provision contained in the Plan or in any agreement under Section 2.5, but
subject to the possible exercise of the Committee's discretion contemplated in
the last sentence of this Section 5.1, the aggregate Fair Market Value on the
date of grant of the shares with respect to which such incentive stock options
are exercisable for the first time by a Participant during any calendar year
under all plans of the corporation employing such Participant, any parent or
subsidiary corporation of such corporation and any predecessor corporation of
any such corporation shall not exceed $100,000.  If the date on which
one or more incentive stock options could first be exercised would be
accelerated pursuant to any provision of the Plan or any agreement under Section
2.5 and the acceleration of such exercise date would result in a violation of
the $100,000 restriction set forth in the preceding sentence, then,
notwithstanding any such provision, but subject to the provisions of the next
succeeding sentence, the exercise dates of such incentive stock options shall be
accelerated only to the extent, if any, that does not result in a violation of
such restriction and, in such event, the exercise dates of the incentive stock
options with the lowest option prices shall be accelerated to the earliest such
dates.  The Committee may, in its sole discretion, authorize the
acceleration of the exercise date of one or more incentive stock options even if
such acceleration would violate the $100,000 restriction set forth in the second
sentence of this Section 5.1 and even if one or more such incentive stock
options are thereby converted in whole or in part to nonstatutory stock
options.

    

    5.2           Types and Nature of Stock
Appreciation Rights.  Stock appreciation rights may be tandem
stock appreciation rights which are granted in conjunction with incentive stock
options or nonstatutory stock options (“Tandem SARs”), or stock appreciation
rights which are not granted in conjunction with options (“Free-Standing
SARs”).  Upon the exercise of a stock appreciation right, the
Participant shall be entitled to receive an amount in cash, shares of Common
Stock, or both, in value equal to the product of (i) the excess of the Fair
Market Value of one share of Common Stock on the date of exercise of the stock
appreciation right over, in the case of a Tandem SAR, the exercise price of the
related option, or in the case of a Free-Standing SAR, the Base Price per share
(the “Spread”), multiplied by (ii) the number of shares of Common Stock in
respect of which the stock appreciation right has been
exercised.  Notwithstanding the foregoing, the Committee at the time
it grants a stock appreciation right may provide that the Spread covered by such
stock appreciation right may not exceed a lower specified amount.  The
applicable agreement under Section 2.5 governing the stock appreciation rights
shall specify whether such payment is to be made in cash or Common Stock or
both, or shall reserve to the Committee or the Participant the right to make
that determination prior to or upon the exercise of the stock appreciation
right.  Tandem SARs may be granted at the grant date of the related
stock options or, in the case of a related nonstatutory stock option, also at a
later date.  At the time a Tandem SAR is granted, the Committee may
limit the exercise period for such Tandem SAR, before and after which period no
Tandem SAR shall attach to the underlying stock option.  In no event
shall the exercise period for a Tandem SAR exceed the exercise period for the
related stock option.  A Tandem SAR shall be exercisable only at such
time or times and to the extent that the related option is exercisable in
accordance with the provisions of this Section 5.  A Tandem SAR shall
terminate or be forfeited upon the exercise or forfeiture of the related stock
option, and the related stock option shall terminate or be forfeited upon the
exercise or forfeiture of the Tandem SAR.  Any Tandem SAR granted with
a related incentive stock option shall be exercisable only when the Fair Market
Value of a share of Common Stock exceeds the exercise price for a share of
Common Stock under the related incentive stock option.

    

    5.3           Exercise Price and Base
Price.  The exercise price per share of Common Stock subject to
an option and any Tandem SAR, and the base price per share for any Free-Standing
SAR (the “Base Price”), shall be determined by the Committee and set forth in
the applicable agreement under Section 2.5, and shall not be less than the Fair
Market Value of a share of the Common Stock on the applicable grant date, except
that in the case of an incentive stock option granted to a Participant who,
immediately prior to such grant, owns stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the
Corporation or any Subsidiary which is a corporation (a "Ten Percent Employee"),
the exercise price shall not be less than one hundred ten percent (110%) of the
Fair Market Value on the date of grant.  For purposes of this Section
5.3, an individual (i) shall be considered as owning not only shares of stock
owned individually but also all shares of stock that are at the time owned,
directly or indirectly, by or for the spouse, ancestors, lineal descendants and
brothers and sisters (whether by the whole or half blood) of such individual and
(ii) shall be considered as owning proportionately any shares owned, directly or
indirectly, by or for any corporation, partnership, estate or trust in which
such individual is a shareholder, partner or beneficiary.  In no event
may any option or stock appreciation right granted under this Plan, other than
pursuant to Section 4.5, be amended to decrease the exercise price or Base Price
thereof, be cancelled in conjunction with the grant of any new option or stock
appreciation right with a lower exercise price or Base Price, be cancelled or
repurchased for cash, property, or another Award at a time when the exercise
price or Base Price is greater than the Fair Market Value of the underlying
Common Stock, or otherwise be subject to any action that would be treated, for
accounting purposes, as a “repricing” of such option or stock appreciation
right, unless such amendment, cancellation, or action is approved by the
Corporation’s shareholders.

    

    5.4           Term; Vesting and
Exercisability.  The term of each option and each stock
appreciation right shall be fixed by the Committee, but shall not exceed ten
years from the date of grant (five years in the case of an incentive stock
option granted to a Ten Percent Employee).  Except as otherwise
provided herein, options and stock appreciation rights shall be exercisable at
such time or times and subject to such terms and conditions as shall be
determined by the Committee and may be exercisable commencing with the grant
date.

    

    5.5           Method of
Exercise.  Subject to the provisions of this Section 5, options
and stock appreciation rights may be exercised, in whole or in part (unless
otherwise specified by the Committee in its sole discretion), at any time during
the applicable term by giving written notice of exercise to the Corporation
specifying the number of shares of Common Stock as to which the option or stock
appreciation rights is being exercised.  In the case of the exercise
of an option, such notice shall be accompanied by payment in full of the
exercise price in United States of America dollars by certified or bank check or
wire of immediately available funds. If approved by the Committee (at the time
of grant in the case of an incentive stock option or at any time in the case of
a nonstatutory stock option), payment, in full or in part, may also be made as
follows:

    

    (a)           Payment
may be made in the form of unrestricted shares of Common Stock (by delivery of
such shares or by attestation) of the same class as the Common Stock subject to
the option already owned by the Participant (based on the Fair Market Value of
the Common Stock on the date the option is exercised) provided however, that any
portion of the exercise price representing a fraction of a share shall be paid
in cash;

    

    (b)           To
the extent permitted by applicable law, payment may be made by delivering a
properly executed exercise notice to the Corporation, together with a copy of
irrevocable instructions to a broker to deliver promptly to the Corporation the
amount of sale or loan proceeds necessary to pay the exercise price, and, if
requested, the amount of any federal, state, local or foreign withholding taxes.
To facilitate the foregoing, the Corporation may, to the extent permitted by
applicable law, enter into agreements for coordinated procedures with one or
more brokerage firms.  In the event the broker sells any shares on
behalf of a Participant, the broker shall be acting solely as the agent of the
Participant, and the Corporation disclaims any responsibility for the actions of
the broker in making any such sales; and/or

    

    (c)           With
such other instrument as approved by the Committee, including Corporation loans,
to the extent permitted by applicable law.

    

    5.6           Delivery; Rights of
Shareholders.  No shares shall be delivered pursuant to the
exercise of an option until the exercise price for the option has been fully
paid and applicable taxes have been withheld.  Unless otherwise
specified by the Committee, the applicable Participant shall have all of the
rights of a shareholder of the Corporation holding Common Stock with respect to
the shares of Common Stock to be issued upon the exercise of the option or stock
appreciation right (including the right to vote the applicable shares and the
right to receive dividends), when the Participant (i) has given written notice
of exercise in accordance with the procedures established by the Committee, (ii)
if requested, has given the representation described in Section 10, and (iii) in
the case of an option, has paid in full the exercise price for such
shares.

    

    5.7           Nontransferability of
Options and Stock Appreciation Rights.  Unless
the Committee shall otherwise determine in the case of nonstatutory stock
options and stock appreciation rights and limited to a transfer without the
payment of value or consideration to the Participant, (i) no option or stock
appreciation right shall be transferable by a Participant other than by will, or
if the Participant dies intestate, by the laws of descent and distribution of
the state of domicile of the Participant at the time of death, and (ii) all
stock options and stock appreciation rights shall be exercisable during the
lifetime of the Participant only by the Participant (or the Participant’s
guardian or legal representative).  Any Tandem SAR shall be
transferable only when the related stock option is transferable and with the
related stock option.

    

    5.8           Termination of
Employment.  Unless the Committee, in its sole discretion,
shall otherwise determine at the time of grant of the Award or, other than in
the case of incentive stock options, thereafter, but subject to the provisions
of Section 5.1 in the case of incentive stock options:

    

    (a)           If
the employment of a Participant who is not disabled within the meaning of
Section 422(c)(6) of the Code (a "Disabled Participant") is voluntarily
terminated with the consent of the Corporation or a Subsidiary or a Participant
retires under any retirement plan of the Corporation or a Subsidiary, any then
outstanding incentive stock option held by such Participant shall be exercisable
by the Participant (but only to the extent exercisable by the Participant
immediately prior to the termination of employment) at any time prior to the
expiration date of such incentive stock option or within three months after the
date of termination of employment, whichever is the shorter period;

    

    (b)           If
the employment of a Participant who is not a Disabled Participant is voluntarily
terminated with the consent of the Corporation or a Subsidiary or a Participant
retires under any retirement plan of the Corporation or a Subsidiary, any then
outstanding nonstatutory stock option or stock appreciation right held by such
Participant shall be exercisable by the Participant (but only to the extent
exercisable by the Participant immediately prior to the termination of
employment) at any time prior to the expiration date of such nonstatutory stock
option or stock appreciation right or within one year after the date of
termination of employment, whichever is the shorter period;

    

    (c)           If
the employment of a Participant who is a Disabled Participant is voluntarily
terminated with the consent of the Corporation or a Subsidiary, any then
outstanding stock option or stock appreciation right held by such Participant
shall be exercisable in full (whether or not so exercisable by the Participant
immediately prior to the termination of employment) by the Participant at any
time prior to the expiration date of such stock option or stock appreciation
right or within one year after the date of termination of employment, whichever
is the shorter period;

    

    (d)           Following
the death of a Participant during employment, any outstanding stock option or
stock appreciation right held by the Participant at the time of death shall be
exercisable in full (whether or not so exercisable by the Participant
immediately prior to the death of the Participant) by the person entitled to do
so under the will of the Participant, or, if the Participant shall fail to make
testamentary disposition of the stock option or stock appreciation right or
shall die intestate, by the legal representative of the Participant at any time
prior to the expiration date of such stock option or stock appreciation right or
within one year after the date of death, whichever is the shorter
period;

    

    (e)           Following
the death of a Participant after termination of employment during a period when
a stock option or stock appreciation right is exercisable, any outstanding stock
option or stock appreciation right held by the Participant at the time of death
shall be exercisable by such person entitled to do so under the will of the
Participant or by such legal representative (but only to the extent the stock
option or stock appreciation right was exercisable by the Participant
immediately prior to the death of the Participant) at any time prior to the
expiration date of such stock option or stock appreciation right or within one
year after the date of death, whichever is the shorter period; and

    

    (f)           Unless
the exercise period of a stock option or stock appreciation right following
termination of employment has been extended as provided in Section 11.3, if the
employment of a Participant terminates for any reason other than voluntary
termination with the consent of the Corporation or a Subsidiary, retirement
under any retirement plan of the Corporation or a Subsidiary or death, all
outstanding stock options and stock appreciation rights held by the Participant
at the time of such termination of employment shall automatically
terminate.

    

    Whether
termination of employment is a voluntary termination with the consent of the
Corporation or a Subsidiary and whether a Participant is a Disabled Participant
shall be determined in each case, in its sole discretion, by the Committee (or,
in the case of Participants who are not (i) Covered Employees as of the end of
the Corporation’s immediately preceding fiscal year or (ii) the Chief Executive
Officer of the Corporation, by such Chief Executive Officer, in his sole
discretion) and any such determination by the Committee or such Chief Executive
Officer shall be final and binding.  Without limitation of the
foregoing, a termination of employment by the Participant shall not be a
voluntary termination with the consent of the Corporation unless the Committee
or, if applicable, such Chief Executive Officer, in its or his sole discretion,
specifically consents to the termination of employment in writing.

    

    5.9           Other Terms and
Conditions.  Subject to the foregoing provisions of this
Section 5 and the other provisions of the Plan, any stock option or stock
appreciation right granted under the Plan may be exercised at such times and in
such amounts and be subject to such restrictions and other terms and conditions,
if any, as shall be determined, in its sole discretion, by the Committee and set
forth in the agreement under Section 2.5.

    

    

    SECTION
6

    

    Restricted
Stock

    

    6.1           Restricted Stock Awards;
Certificates.  Shares of restricted stock are actual shares of
Common Stock issued to a Participant, and shall be evidenced in such manner as
the Committee may deem appropriate, including book-entry registration or
issuance of one or more stock certificates.  Any certificate issued in
respect of shares of restricted stock shall be registered in the name of the
applicable Participant and, unless held by or on behalf of the Corporation in
escrow or custody until the restrictions lapse or the shares are forfeited,
shall bear an appropriate conspicuous legend referring to the terms, conditions,
and restrictions applicable to such Award, substantially in the following
form:

    

    “The
transferability of this certificate and the shares of stock represented hereby
are subject to the terms and conditions (including forfeiture) of the Matthews
International Corporation 2007 Equity Incentive Plan and a corresponding
agreement. Copies of such Plan and agreement are on file at the offices of
Matthews International Corporation, Two NorthShore Center, Pittsburgh, PA
15212-5851.”

    

    The
Committee may require that the certificates evidencing such shares be held in
escrow or custody by or on behalf of the Corporation until the restrictions
thereon shall have lapsed or the shares are forfeited and that, as a condition
of any Award of restricted stock, the applicable Participant deliver to the
Corporation a stock power, endorsed in blank, relating to the Common Stock
covered by such Award.

    

    6.2           Terms and
Conditions.  Shares of restricted stock shall be subject to the
restrictions set forth in Section 15.11 and the following terms and
conditions:

    

    (a)           The
Committee shall, prior to or at the time of grant, condition the vesting of an
Award of restricted stock upon (i) the continued service of the applicable
Participant, (ii) the attainment of Performance Goals, or (iii) the attainment
of Performance Goals and the continued service of the applicable
Participant.  The Committee shall establish at the time the restricted
stock is granted the performance periods during which any Performance Goals
specified by the Committee with respect to the restricted stock Award are to be
measured.  In the event that the Committee conditions the vesting of
an Award of restricted stock upon the attainment of Performance Goals or the
attainment of Performance Goals and the continued service of the applicable
Participant, the Committee may, prior to or at the time of grant, designate an
Award of restricted stock as a Qualified Performance-Based Award.  The
conditions for vesting and the other provisions of restricted stock Awards
(including without limitation any applicable Performance Goals) need not be the
same with respect to each recipient, and shall be established by the Committee
in its sole discretion.  Except in the case of a Qualified
Performance-Based Award and subject to the restrictions set forth in Section
15.11, the Committee at any time after the date of grant, in its sole
discretion, may modify or waive any of the conditions applicable to an Award of
restricted stock.

    

    (b)           Subject
to the provisions of the Plan (including Section 6.3) and the applicable
agreement under Section 2.5, during the period, if any, set by the Committee,
commencing with the date of such restricted stock Award for which such vesting
restrictions apply (the “Restriction Period”), and until the expiration of the
Restriction Period, the Participant shall not be permitted to sell, assign,
transfer, pledge or otherwise encumber shares of such restricted
stock.  A restricted stock Award may vest in part on a pro rata basis
prior to the expiration of any Restriction Period.

    

    (c)           Except
as provided in this Section 6 and in the applicable agreement under Section 2.5,
the applicable Participant shall have, with respect to the shares of restricted
stock, all of the rights of a shareholder of the Corporation holding the Common
Stock that is the subject of the restricted stock, including, if applicable, the
right to vote the shares and the right to receive any cash
dividends.  If so determined by the Committee and set forth in the
applicable agreement under Section 2.5 and subject to Section 15.4, cash
dividends on the Common Stock that is the subject of the restricted stock Award
may be (i) automatically deferred and reinvested in additional restricted stock,
and held subject to the same vesting and forfeiture conditions of the underlying
restricted stock, or (ii) held by the Corporation in cash (without any payment
of interest thereon) subject to the same vesting and forfeiture conditions of
the restricted stock with respect to which the dividends are
payable.  Unless otherwise determined by the Committee and set forth
in the applicable agreement under Section 2.5, any Common Stock or other
securities payable with respect to any restricted stock as a result of or
pursuant to Section 4.5, shall be held subject to the same vesting and
forfeiture conditions of the underlying restricted stock.

    

    (d)           As
soon as practicable after the applicable Restriction Period has ended, the
Committee shall determine and certify (in writing in the case of Qualified
Performance-Based Awards) whether and the extent to which the service period
and/or the Performance Goals were met for the applicable restricted
stock.  If the vesting condition or conditions applicable to the
restricted stock are not satisfied by the time the Restriction Period has
expired, such restricted stock shall be forfeited.  If and when the
Restriction Period expires without a prior forfeiture of the shares of
restricted stock (i) if legended certificates have been issued, unlegended
certificates for such shares shall be delivered to the Participant upon
surrender of the legended certificates, (ii) if legended certificates have not
yet been issued, unlegended certificates (and any related blank stock powers
previously executed by the Participant) shall be delivered to the Participant,
and (iii) any cash dividends held by the Corporation pursuant to Section 6.2(c)
shall be delivered to the Participant.

    

    6.3           Permitted
Transfers.  Neither this Section 6 nor any other provision of
the Plan shall preclude a Participant from transferring or assigning restricted
stock, without the payment of value or consideration to the Participant, to (i)
the trustee of a trust that is revocable by such Participant alone, both at the
time of the transfer or assignment and at all times thereafter prior to such
Participant's death or (ii) the trustee of any other trust to the extent
approved in advance by the Committee, in its sole discretion, in
writing.  A transfer or assignment of restricted stock from such
trustee to any person other than such Participant shall be permitted only to the
extent approved in advance by the Committee, in its sole discretion, in writing,
and restricted stock held by such trustee shall be subject to all of the
conditions and restrictions set forth in the Plan and in the applicable
agreement under Section 2.5 as if such trustee were a party to such
agreement.

    

    

    SECTION
7

    

    Restricted
Stock Units

    

    7.1           Restricted Stock Unit
Awards.  Restricted stock units
are Awards denominated in shares of Common Stock that will be settled,
subject to the terms and conditions of the restricted stock units and at the
sole discretion of the Committee, in an amount in cash, shares of Common Stock,
or both, based upon the Fair Market Value of a specified number of shares of
Common Stock.

    

    7.2 Terms and
Conditions.  Restricted stock units shall be subject to the
restrictions set forth in Section 15.11 and the following terms and
conditions:

    

    (a)           The
Committee shall, prior to or at the time of grant, condition the vesting of
restricted stock units upon (i) the continued service of the applicable
Participant, (ii) the attainment of Performance Goals or (iii) the attainment of
Performance Goals and the continued service of the applicable Participant. In
the event that the Committee conditions the vesting of restricted stock units
upon the attainment of Performance Goals or the attainment of Performance Goals
and the continued service of the applicable Participant, the Committee may,
prior to or at the time of grant, designate the restricted stock units as a
Qualified Performance-Based Awards.  The Committee shall determine the
performance period(s) during which any Performance Goals are to be
achieved.  The conditions for grant or vesting and the other
provisions of restricted stock units (including without limitation any
applicable Performance Goals) need not be the same with respect to each
recipient. An Award of restricted stock units shall be settled as and when the
restricted stock units vest, as determined and certified (in writing in the case
of Qualified Performance-Based Awards) by the Committee, or at a later time
specified by the Committee or in accordance with an election of the Participant,
if the Committee so permits.  Except in the case of a Qualified
Performance-Based Award and subject to the restrictions set forth in Section
15.11, the Committee at any time after the date of grant, in its sole
discretion, may modify or waive any of the conditions applicable to an Award of
restricted stock units.

    

    (b)           Subject
to the provisions of the Plan and the applicable agreement under Section 2.5,
during the period, if any, set by the Committee, commencing with the date of
grant of such restricted stock units for which such vesting restrictions apply
(the “Units Restriction Period”), and until the expiration of the Units
Restriction Period, the Participant shall not be permitted to sell, assign,
transfer, pledge or otherwise encumber restricted stock units.  A
restricted stock unit may vest in part prior to the expiration of any Units
Restriction Period.

    

    (c)           Participants
granted restricted stock units shall not be entitled to any dividends payable on
the Common Stock unless the agreement under Section 2.5 for restricted stock
units specifies to what extent and on what terms and conditions the applicable
Participant shall be entitled to receive current or deferred payments of cash,
Common Stock or other property corresponding to the dividends payable on the
Common Stock (subject to Section 15.4 below).  Restricted stock units
shall not have any voting rights, and holders of restricted stock units shall
not be shareholders of the Corporation unless and until shares of Common Stock
are issued by the Corporation (in book-entry form or otherwise).

    

    

    SECTION
8

    

    Performance
Units

    

    Performance
units may be granted hereunder to eligible employees, for no cash consideration
or for such minimum consideration as may be required by applicable law, either
alone or in addition to other Awards granted under the Plan.  The
Committee shall establish at the time the performance unit is granted the
performance period(s) during which any Performance Goals specified by the
Committee with respect to the Award are to be measured, provided, however, that
performance units shall be subject to the restrictions set forth in Section
15.11.  The Performance Goals to be achieved during any performance
period(s) and the length of the performance period(s) shall be determined by the
Committee upon the grant of each performance unit.  The Committee may,
in connection with the grant of performance units, designate them as Qualified
Performance-Based Awards.  The conditions for grant or vesting and the
other provisions of performance units (including without limitation any
applicable Performance Goals) need not be the same with respect to each
Participant.  Performance units may be paid in cash, shares of Common
Stock, other property or any combination thereof, in the sole discretion of the
Committee as set forth in the applicable agreement under Section
2.5.  Performance units shall not have any voting rights, and holders
of performance units shall not be shareholders of the Corporation unless and
until shares of Common Stock are issued by the Corporation (in book-entry form
or otherwise).  The Performance Goals to be achieved for each
performance period, whether the Performance Goals have been achieved, and the
amount of the Award to be distributed shall be conclusively determined and
certified (in writing in the case of Qualified Performance-Based Awards) by the
Committee.  Performance units may be paid in a lump sum or in
installments following the close of the performance period(s).  The
Participant shall not be permitted to sell, assign, transfer, pledge or
otherwise encumber performance units.  The maximum value of the
property, including cash, that may be paid or distributed to any Participant
pursuant to a grant of performance units made in any one calendar year shall be
five million United States of America dollars ($5,000,000).  Except in
the case of a Qualified Performance-Based Award and subject to the restrictions
set forth in Section 15.11, the Committee at any time after the grant of
performance units, in its sole discretion, may modify or waive any of the
conditions applicable to an Award of performance units.

    

    

    SECTION
9

    

    Other
Stock-Based Awards

    

    The Committee may award Common Stock
and other Awards that are valued in whole or in part by reference to, or are
otherwise based upon, Common Stock, including but not limited to, unrestricted
stock or dividend equivalents.  Any such Award shall be subject to the
restrictions set forth in Section 15.11 and such other terms and conditions as
established by the Committee, and may include Qualified Performance-Based
Awards.  The maximum value of Common Stock and other property,
including cash, that may be paid or distributed to any Participant pursuant to
this Section 9 (and not pursuant to other sections of the Plan) in any one
calendar year shall be five million United States of America dollars
($5,000,000).

    

    

    SECTION
10

    

    Issuance
of Shares

    

    The
Committee may require each person purchasing or receiving shares of Common Stock
pursuant to an Award to represent to and agree with the Corporation in writing
that such person is acquiring the shares without a view to the distribution
thereof.  The certificates for such shares may include any legend
which the Committee deems appropriate to reflect any restrictions on
transfer.  The obligation of the Corporation to issue shares of Common
Stock under the Plan shall be subject to (i) the effectiveness of a registration
statement under the Securities Act of 1933, as amended, with respect to such
shares, if deemed necessary or appropriate by counsel for the Corporation, (ii)
the condition that the shares shall have been listed (or authorized for listing
upon official notice of issuance) upon each stock exchange, if any, on which the
shares of Common Stock may then be listed, (iii) all other applicable laws,
regulations, rules and orders which may then be in effect and (iv) obtaining any
other consent, approval, or permit from any state or federal governmental agency
which the Committee shall, in its sole discretion, determine to be necessary or
advisable.

    

    

    SECTION
11

    

    Additional
Rights in Certain Events

    

    11.1                      Definitions.

    

    For purposes of this Section 11, the
following terms shall have the following meaning:

    

    (1)           The
term "Person" shall be used as that term is used in Section 13(d) and 14(d) of
the 1934 Act.

    

    (2)           "Beneficial
Ownership" shall be determined as provided in Rule 13d-3 under the 1934 Act as
in effect on the effective date of the Plan.

    

    (3)           "Voting
Shares" shall mean all securities of a Corporation entitling the holders thereof
to vote in an annual election of Directors (without consideration of the rights
of any class of stock other than the Common Stock to elect Directors by a
separate class vote); and a specified percentage of "Voting Power" of a
Corporation shall mean such number of the Voting Shares as shall enable the
holders thereof to cast such percentage of all the votes which could be cast in
an annual election of directors (without consideration of the rights of any
class of stock other than the Common Stock to elect Directors by a separate
class vote).

    

    (4)           "Section
11 Event" shall mean the date upon which any of the following events
occurs:

    

    (a)           The
Corporation acquires actual knowledge that any Person other than the
Corporation, a Subsidiary or any employee benefit plan(s) sponsored by the
Corporation has acquired the Beneficial Ownership, directly or indirectly, of
securities of the Corporation entitling such Person to 20% or more of the Voting
Power of the Corporation;

    

    (b)           At
any time less than 60% of the members of the Board of Directors shall be
individuals who were either (i) Directors on the effective date of the Plan or
(ii) individuals whose election, or nomination for election, was approved by a
vote (including a vote approving a merger or other agreement providing the
membership of such individuals on the Board of Directors) of at least two-thirds
of the Directors then still in office who were Directors on the effective date
of the Plan or who were so approved;

    

    (c)           The
shareholders of the Corporation shall approve an agreement or plan providing for
the Corporation to be merged, consolidated or otherwise combined with, or for
all or substantially all its assets or stock to be acquired by, another
corporation, as a consequence of which the former shareholders of the
Corporation will own, immediately after such merger, consolidation, combination
or acquisition, less than a majority of the Voting Power of such surviving or
acquiring corporation or the parent thereof; or

    

    (d)           The
shareholders of the Corporation shall approve any liquidation, sale or transfer
of all or substantially all of the assets of the Corporation (other than to an
entity or entities controlled by the Corporation and/or its shareholders
following such event);

    

    provided,
however, that if securities beneficially owned by a Participant are included in
determining the Beneficial Ownership of a Person referred to in paragraph 4(a),
then no Section 11 Event with respect to such Participant shall be deemed to
have occurred by reason of such event.

    

    11.2                      Acceleration of the Exercise
Date of Stock Options and Stock Appreciation Rights.  Subject
to the provisions of Section 5 in the case of incentive stock options and
Section 11.6, unless the agreement under Section 2.5 shall otherwise provide,
notwithstanding any other provision contained in the Plan, in case any Section
11 Event occurs all outstanding stock options and stock appreciation rights
shall become immediately and fully exercisable whether or not otherwise
exercisable by their terms.

    

    11.3                      Extension of the Expiration
Date of Stock Options and Stock Appreciation Rights.  Subject
to the provisions of Section 5 in the case of incentive stock options and
Section 11.6, unless the agreement under Section 2.5 shall otherwise provide,
notwithstanding any other provision contained in the Plan, all stock options and
stock appreciation rights held by a Participant whose employment with the
Corporation or a Subsidiary terminates within one year of any Section 11 Event
for any reason other than voluntary termination with the consent of the
Corporation or a Subsidiary, retirement under any retirement plan of the
Corporation or a Subsidiary or death shall be exercisable for a period of three
months from the date of such termination of employment, but in no event after
the expiration date of the stock option or stock appreciation
right.

    

    11.4                      Lapse of Restrictions on
Restricted Stock Awards.  Unless the agreement under Section
2.5 shall otherwise provide, notwithstanding any other provision contained in
the Plan other than Section 11.6, if any Section 11 Event occurs prior to the
scheduled lapse of all restrictions applicable to restricted stock Awards under
the Plan (including but not limited to Qualified Performance-Based Awards), all
such restrictions shall lapse upon the occurrence of any such Section 11 Event
regardless of the scheduled lapse of such restrictions.

    

    11.5                      Vesting of Restricted Stock
Units and Performance Units.  Unless the agreement under
Section 2.5 shall otherwise provide, notwithstanding any other provision
contained in the Plan other than Section 11.6, if any Section 11 Event occurs,
all restricted stock units and performance units (including but not limited to
Qualified Performance-Based Awards) shall be considered to be earned and payable
in full, any vesting conditions shall be considered to have been satisfied, and
such restricted stock units and performance units shall be settled in cash as
promptly as is practicable.

    

    11.6                      Code Section
409A.  Notwithstanding the foregoing, if any Award is subject
to Section 409A of the Code, this Section 11 shall be applicable only to the
extent specifically provided in the agreement under Section 2.5 applicable to
the Award and permitted pursuant to Section 12.2.

    

    11.7                      Tax Gross-Up
Payments.  Unless the agreement under Section 2.5 shall
otherwise provide, if the independent auditors of the Corporation most recently
selected by the Board determine that (i) any grant, payment or transfer to or
for the benefit of a Participant (whether granted, paid or payable or
transferred or transferable pursuant to the Plan or otherwise) (a “Payment”)
would be deemed to be an “excess parachute payment” for Federal income tax
purposes because of Section 280G of the Code, or any successor provision
(“Section 280G”), and (ii) any Award, grant, payment or transfer under the Plan
to or for the benefit of a Participant within one year of or following the
occurrence of a Section 11 Event constitutes in whole or in part a “parachute
payment” under Section 280G (without regard to Section 280G(b)(4)) used in
calculating such “excess parachute payment,” the Payment will be grossed up
through the payment by the Corporation to the Participant in cash of the amount
of any excise tax under Section 4999 of the Code, or any successor provision
(“Section 4999”), on the “excess parachute payment” and the amount of any excise
tax under Section 4999 and applicable income tax on the total amount of such
gross up payment so that the Participant will receive the full amount of the
Payment after the Participant has paid any excise tax under Section 4999 of the
Code on the “excess parachute payment” and any excise tax under Section 4999 and
applicable income tax on the amount of such gross up payment.  On the
later of the date an “excess parachute payment” is paid to or for the benefit of
the Participant or the date on which it can be first determined that a Payment
would be deemed to be an “excess parachute payment” (but in any event no later
than the end of the Participant’s taxable year next following the taxable year
in which the Participant remits the taxes subject to the gross up payment), the
Corporation shall pay or distribute to or for the benefit of the Participant the
gross up payment due to the Participant under this Section
11.7.  Notwithstanding the foregoing, no amounts shall be payable
under this Section 11.7 unless they are either exempt from the application of,
or comply with, the requirements of Section 409A of the Code.

    

    

    SECTION
12

    

    Qualified
Performance-Based Awards; Section 409A

    

    12.1                      Qualified Performance-Based
Awards.

    

    (a)           The
provisions of this Plan are intended to ensure that all options and stock
appreciation rights granted hereunder to any Participant who is or may be a
Covered Employee in the tax year in which such option or stock appreciation
right is expected to be deductible to the Corporation qualify for the exemption
from the limitation on deductions imposed by Section 162(m) of the Code (the
“Section 162(m) Exemption”), and all such Awards shall therefore be considered
Qualified Performance-Based Awards and this Plan shall be interpreted and
operated consistent with that intention.  When granting any Award
other than an option or stock appreciation right, the Committee may designate
such Award as a Qualified Performance-Based Award, based upon a determination
that (i) the recipient is or may be a Covered Employee with respect to such
Award, and (ii) the Committee wishes such Award to qualify for the Section
162(m) Exemption, and the terms of any such Award (and of the grant thereof)
shall be consistent with such designation.  Within 90 days after the
commencement of a performance period or, if earlier, by the expiration of 25% of
a performance period, the Committee will designate one or more performance
periods, determine the Participants for the performance periods and establish
the Performance Goals for the performance periods.

    

    (b)           Each
Qualified Performance-Based Award (other than an option or stock appreciation
right) shall be earned, vested and/or payable (as applicable) upon certification
in writing by the Committee of the achievement of one or more Performance Goals,
together with the satisfaction of any other conditions, such as continued
employment, as previously established by the Committee with respect to such
Award.

    

    
      	
              (c)

            	
              Notwithstanding
      any provision in the Plan or in any agreement under Section 2.5, to the
      extent that any such provision or action of the Committee would cause any
      Qualified Performance-Based Award not to qualify for the Section 162(m)
      Exemption, such provision or action shall be null and void as it relates
      to Covered Employees, to the extent permitted by law and deemed advisable
      by the Committee.

            

    

    

    12.2                      Code Section
409A.  It is the intention of the Corporation that no Award
shall be “deferred compensation” subject to Section 409A of the Code, unless and
to the extent that the Committee specifically determines otherwise as provided
in the immediately following sentence, and the Plan and the terms and conditions
of all Awards shall be interpreted accordingly.  The terms and
conditions governing any Awards that the Committee determines will be subject to
Section 409A of the Code, including any rules for elective or mandatory deferral
of the delivery of cash or shares of Common Stock pursuant thereto and any rules
regarding treatment of such Awards in the event of a Section 11 Event, shall be
set forth in the applicable agreement under Section 2.5, and shall comply in all
respects with Section 409A of the Code.

    

    

    SECTION
13

    

    Effect
of the Plan on the Rights of Employees and Employer

    

    Neither
the adoption of the Plan nor any action of the Board or the Committee pursuant
to the Plan shall be deemed to give any employee any right to be granted any
Award under the Plan.  Nothing in the Plan, in any Award under the
Plan or in any agreement under Section 2.5 providing for any Award under the
Plan shall confer any right to any employee to continue in the employ of the
Corporation or any Subsidiary or interfere in any way with the rights of the
Corporation or any Subsidiary to terminate the employment of any employee at any
time or adjust the compensation of any employee at any time.

    

    

    SECTION
14

    

    Amendment
or Termination

    

    The right to amend the Plan at any time
and from time to time and the right to terminate the Plan are hereby
specifically reserved to the Board; provided that no such amendment of the Plan
shall, without shareholder approval (a) increase the maximum aggregate number of
shares of Common Stock for which Awards may be made under Section 4.1 of the
Plan, (b) increase the maximum aggregate number of shares of Common Stock as to
which incentive stock options may be granted under Section 4.1 of the Plan, (c)
make any changes in the class of employees eligible to receive Awards under the
Plan, (d) change the maximum number of shares of Common Stock as to which Awards
may be made to any Participant under Section 4.2 of the Plan, or the maximum
amount that may be paid or distributed to any Participant pursuant to a grant of
performance units or other stock-based Awards made in any one calendar year
under Section 8 or 9 of the Plan, respectively, (e) change the exercise price or
Base Price permitted under Section 5.3 of the Plan or the restrictions regarding
repricing under Section 5.3 of the Plan,(f) be made if shareholder approval of
the amendment is at the time required for Awards under the Plan to qualify for
the exemption from Section 16(b) of the 1934 Act provided by Rule 16b-3 or by
the rules of the NASDAQ National Market System or any stock exchange on which
the Common Stock may then be listed or (g) be made to the extent such approval
is needed for Qualified Performance-Based Awards to qualify for the Section
162(m) Exemption.  No amendment or termination of the Plan shall,
without the written consent of the holder of an Award under the Plan, adversely
affect the rights of such holder with respect thereto.

    

    

    SECTION
15

    

    General
Provisions

    

    15.1                      Additional Compensation
Arrangements.  Nothing contained in the Plan shall prevent the
Corporation or any Subsidiary from adopting other or additional compensation
arrangements for its employees.

    

    15.2                      Tax
Withholding.  No later than the date as of which an amount
first becomes includible in the gross income of a Participant for federal,
state, local or foreign income or employment or other tax purposes with respect
to any Award under the Plan, such Participant shall pay to the Corporation (or,
if applicable, a Subsidiary), or make arrangements satisfactory to the
Corporation (or, if applicable, a Subsidiary) regarding the payment of, any
federal, state, local or foreign taxes of any kind required by law to be
withheld with respect to such amount.  Unless otherwise determined by
the Committee, withholding obligations may be settled with Common Stock,
including Common Stock that is part of the Award that gives rise to the
withholding requirement, having a Fair Market Value on the date of withholding
equal to the minimum amount (and not any greater amount unless otherwise
determined by the Committee) required to be withheld for tax purposes, all in
accordance with such procedures as the Committee establishes, and provided that
any fractional share amount must be paid in cash or withheld from compensation
otherwise due to the Participant.  The obligations of the Corporation
under the Plan shall be conditional on such payment or arrangements, and the
Corporation and its Subsidiaries shall, to the extent permitted by law, have the
right to deduct any such taxes from any payment otherwise due to such
Participant.  The Committee may establish such procedures as it deems
appropriate, including making irrevocable elections, for the settlement of
withholding obligations with Common Stock.

    

    15.3                      Limitation of
Liability.  The grant of any Award shall not:

    

    (a)           give
a Participant any rights except as expressly set forth in the Plan or in the
agreement under Section 2.5;

    

    (b)           create
any fiduciary or other obligation of the Corporation or any Subsidiary to take
any action or provide to the Participant any assistance or dedicate or permit
the use of any assets of the Corporation or any Subsidiary that would permit the
Participant to be able to attain any Performance Goals associated with any
Award;

    

    (c)           create
any trust, fiduciary or other duty or obligation of the Corporation or any
Subsidiary to engage in any particular business, continue to engage in any
particular business, engage in any particular business practices or sell any
particular product or products; or

    

    (d)           create
any obligation of the Corporation or any Subsidiary that shall be greater than
the obligation of the Corporation or that Subsidiary to any of their general
unsecured creditors.

    

    15.4                      Limitation on Dividend
Reinvestment and Dividend Equivalents.  Reinvestment of
dividends in additional restricted stock at the time of any dividend payment,
and the payment of shares with respect to dividends to Participants holding
Awards of restricted stock units, shall only be permissible if authorized by the
Committee and if sufficient shares of Common Stock are available under Section 4
for such reinvestment or payment (taking into account then outstanding Awards).
In the event that sufficient shares of Common Stock are not available for such
reinvestment or payment, such reinvestment or payment shall be made in the form
of a grant of restricted stock units equal in number to the shares of Common
Stock that would have been obtained by such payment or reinvestment, the terms
of which restricted stock units shall provide for settlement in cash and for
dividend equivalent reinvestment in further restricted stock units on the terms
contemplated by this Section 15.4.

    

    15.5                      Governing Law and
Interpretation.  To the extent not preempted by federal Law,
the Plan and all Awards made and actions taken thereunder shall be governed by
and construed in accordance with the laws of the Commonwealth of Pennsylvania,
without reference to principles of conflict of laws. The captions of this Plan
are not part of the provisions hereof and shall have no force or
effect.

    

    15.6                      Dispute
Resolution.  Since Awards are granted in Western Pennsylvania,
records relating to the Plan and Awards are located in Western Pennsylvania, and
the Plan and Awards are administered in Western Pennsylvania, the Corporation
and the Participant to whom an Award is granted, for themselves and their heirs,
representatives, successors and assigns (collectively, the “Parties”)
irrevocably submit to the exclusive and sole jurisdiction and venue of the state
courts of Allegheny County, Pennsylvania and the federal courts of the Western
District of Pennsylvania with respect to any and all disputes arising out of or
relating to the Plan, the subject matter of the Plan or any Awards under the
Plan, including but not limited to any disputes arising out of or relating to
the interpretation and enforceability of any Awards or the terms and conditions
of the Plan.  To achieve certainty regarding the appropriate forum in
which to prosecute and defend actions arising out of or relating to the Plan,
and to ensure consistency in application and interpretation of the governing law
under Section 15.5 of the Plan, the Parties agree that (a) sole and exclusive
appropriate venue for any such action shall be the Pennsylvania courts described
in the immediately preceding sentence, and no other, (b) all claims with respect
to any such action shall be heard and determined exclusively in such
Pennsylvania courts, and no other, (c) such Pennsylvania courts shall have sole
and exclusive jurisdiction over the Parties and over the subject matter of any
dispute relating hereto and (d) the Parties waive any and all objections and
defenses to bringing any such action before such Pennsylvania courts, including
but not limited to those relating to lack of personal jurisdiction, improper
venue or forum non
conveniens.

    

    15.7                      Non-Transferability.  Except
as otherwise specifically provided in the Plan or by the Committee and limited
to a transfer without the payment of value or consideration to the Participant,
Awards under the Plan are not transferable except by will or by laws of descent
and distribution of the state of domicile of the Participant at the time of
death.

    

    15.8                      Deferrals.  The
Committee shall be authorized to establish procedures pursuant to which the
payment of any Award may be deferred, provided that any such deferral is
consistent with all aspects of Section 409A of the Code. Subject to the
provisions of this Plan and any agreement under Section 2.5, the recipient of an
Award (including, without limitation, any deferred Award) may, if so determined
by the Committee, be entitled to receive, currently or on a deferred basis,
interest or dividends, or interest or dividend equivalents, with respect to the
number of shares covered by the Award, as determined by the Committee, in its
sole discretion, and the Committee may provide that such amounts (if any) shall
be deemed to have been reinvested in additional shares or otherwise
reinvested.

    

    15.9                      Integration.  The
Plan and any written agreements executed by Participants and the Corporation
under Section 2.5 contain all of the understandings and representations between
the parties and supersede any prior understandings and agreements entered into
between them regarding the subject matter within.  There are no
representations, agreements, arrangements or understandings, oral or written,
between the parties relating to the subject matter of the Plan which are not
fully expressed in the Plan and the written agreements.

    

    15.10                      Foreign Employees and
Foreign Law Considerations.  The Committee may grant Awards to
eligible employees who are foreign nationals, who are located outside the United
States of America or who are not compensated from a payroll maintained in the
United States of America, or who are otherwise subject to (or could cause the
Corporation to be subject to) legal or regulatory provisions of countries or
jurisdictions outside the United States of America, on such terms and conditions
different from those specified in the Plan as may, in the judgment of the
Committee, be necessary or desirable to foster and promote achievement of the
purposes of the Plan, and, in furtherance of such purposes, the Committee may
make such modifications, amendments, procedures, or subplans as may be necessary
or advisable to comply with such legal or regulatory provisions.

    

    15.11                      Certain Restrictions on
Certain Awards.  Subject to the terms of the Plan and more
restrictive terms, if any, of the applicable agreement under Section 2.5, any
Award of restricted stock, restricted stock units, performance units, or other
stock-based Awards under Section 9 shall be subject to vesting during a
restriction period of at least three (3) years following the date of grant,
provided, however, that:

    

    (i)              A
restriction period of only at least one (1) year following the date of grant is
permissible if vesting is conditional, in whole or in part, upon the achievement
of Performance Goals, except that there need not be any minimum restriction
period for a Performance Goal based upon stock price if there is also a
service-based restriction of at least one (1) year following the date of
grant;

    

    (ii)              To
the extent permitted by the Committee, in its sole discretion, and specified in
the applicable agreement under Section 2.5, an Award with a restriction period
of at least three (3) years may vest in part on a pro rata basis prior to the
expiration of any such restriction period;

    

    (iii)                      To
the extent permitted by the Committee, in its sole discretion, and specified in
the applicable agreement under Section 2.5, an Award may vest prior to the
expiration of any restriction period required under this Section 15.11 in the
event of a Participant’s death or retirement, the Participant becoming a
Disabled Participant, or an involuntary termination of the Participant’s
employment by the Corporation or a Subsidiary;

    

    (iv)              In
the event of the occurrence of a Section 11 Event, an Award may vest prior to
the expiration of any restriction period required under this Section 15.11
pursuant to Section 11.4 or 11.5 or as otherwise permitted by the Committee, in
its sole discretion, and specified in the applicable agreement under Section
2.5; and

    

    (v)              The
Committee may grant Awards of restricted stock, restricted stock units,
performance units and other stock-based Awards under Section 9 without regard to
the foregoing requirements, and the Committee may accelerate the vesting of and
lapse any restrictions with respect to, any such Awards (in addition to the
potential acceleration under (ii)-(iv) of the foregoing), for up to,
collectively for all such Awards, ten percent (10%) of the shares of Common
Stock for which Awards may be made under Section 4.1 of the Plan, as adjusted
under the terms of the Plan.

    

    

    SECTION
16

    

    Effective
Date and Duration of Plan

    

    The effective date and date of adoption
of the Plan shall be November 13, 2007, the date of adoption of the Plan by the
Board, and the effective date of the amendments to the Plan by the Board on
September 26, 2008 shall be September 26, 2008.  No Award under the
Plan may be made subsequent to November 12, 2017.

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