Document:

Exhibit 10.22

    Exhibit
      10.22

    

    FREEPORT-McMoRan
      COPPER & GOLD INC.

    

    PERFORMANCE-BASED

    RESTRICTED
      STOCK UNIT AGREEMENT

    UNDER
      THE 2003 STOCK INCENTIVE PLAN

    

    

    AGREEMENT
      dated as of ____________, 20__ (the “Grant Date”), between Freeport-McMoRan
      Copper & Gold Inc., a Delaware corporation (the “Company”), and
      _______________ (the “Participant”). 

     

    1. 
       (a)        
      Pursuant
      to the Freeport-McMoRan Copper & Gold Inc. 2003 Stock Incentive Plan (the
“Plan”), the Participant is hereby granted effective the Grant Date _________
      restricted stock units (“Restricted Stock Units” or “RSUs”) on the terms and
      conditions set forth in this Agreement and in the Plan.

     

    (b)  Defined
      terms not otherwise defined herein shall have the meanings set forth in Section
      2 of the Plan.

     

    (c)  Subject
      to the terms, conditions, and restrictions set forth in the Plan and herein,
      each RSU granted hereunder represents the right to receive from the Company,
      on
      the respective scheduled vesting date for such RSU set forth in Section 2(a)
      of
      this Agreement or on such earlier date as provided in Section 2(b) of this
      Agreement or Section 6(b) of this Agreement (the “Vesting Date”), one share (a
“Share”) of Class B Common Stock of the Company (“Common Stock”), free of any
      restrictions, all amounts notionally credited to the Participant’s Dividend
      Equivalent Account (as defined in Section 4 of this Agreement) with respect
      to
      such RSU, and all securities and property comprising all Property Distributions
      (as defined in Section 4 of this Agreement) deposited in such Dividend
      Equivalent Account with respect to such RSU.

     

    (d)  Provided
      the condition of Section 7 of this Agreement, if applicable, has been met,
      as
      soon as practicable after the Vesting Date (but no later than 2 1⁄2 months from
      such date) for any RSUs granted hereunder, the Participant shall receive from
      the Company the number of Shares to which the vested RSUs relate, free of any
      restrictions, a cash payment for all amounts notionally credited to the
      Participant’s Dividend Equivalent Account with respect to such vested RSUs
      (unless the receipt of such Shares and amounts has been deferred by the
      Participant pursuant to the provisions of Section 5(a) of this Agreement),
      and
      all securities and property comprising all Property Distributions deposited
      in
      such Dividend Equivalent Account with respect to such vested RSUs.

     

    2. 
       (a)      
      The
      RSUs
      granted hereunder are granted to the Participant in accordance with the
      Participant’s election (the “Election”) to receive RSUs in lieu of certain cash
      bonus payments awarded under the Company’s Annual Incentive Plan, which Election
      was made within the time period required by Section 409A of the Code. Provided
      the condition of Section 7 of this Agreement has been met, the RSUs granted
      hereunder shall vest in installments as follows:

     

    Scheduled
      Vesting Date 
Number
      of RSUs

    

    

    

    

    (b)  Notwithstanding
      Section 2(a) of this Agreement, at such time as there shall be a Change
      in
      Control of the Company, all unvested RSUs shall be accelerated and shall
      immediately vest.

     

    (c)  Until
      the
      respective Vesting Date for an RSU granted hereunder, such RSU, all amounts
      notionally credited in any Dividend Equivalent Account related to such RSU,
      and
      all securities or property comprising all Property Distributions deposited
      in
      such Dividend Equivalent Account related to such RSU shall be subject to
      forfeiture as provided in Section 6 of this Agreement.

     

    3.  Except
      as
      provided in Section 4 of this Agreement, an RSU shall not entitle the
      Participant to any incidents of ownership (including, without limitation,
      dividend and voting rights) in any Share until the RSU shall vest and the
      Participant shall be issued the Share to which such RSU relates nor in any
      securities or property comprising any Property Distribution deposited in a
      Dividend Equivalent Account related to such RSU until such RSU
      vests.

     

    4.  From
      and
      after the Grant Date of an RSU until the issuance of the Share payable in
      respect of such RSU, the Participant shall be credited, as of the payment date
      therefor, with (i) the amount of any cash dividends and (ii) the amount equal
      to
      the Fair Market Value of any Shares, Subsidiary securities, other securities,
      or
      other property distributed or distributable in respect of one share of
Common
      Stock to which the Participant would have been entitled had the Participant
      been
      a record holder of one share of Common Stock at all times from the Grant Date
      to
      such issuance date (a “Property Distribution”). All such credits shall be made
      notionally to a dividend equivalent account (a “Dividend Equivalent Account”)
      established for the Participant with respect to all RSUs granted hereunder
      with
      the same Vesting Date. All credits to a Dividend Equivalent Account for the
      Participant shall be notionally increased by the Account Rate (as hereinafter
      defined), compounded quarterly, from and after the applicable date of credit
      until paid in accordance with the provisions of this Agreement. The “Account
      Rate” shall be the prime commercial lending rate announced from time to time by
      The Chase Manhattan Bank, N.A. or by another major national bank headquartered
      in New York, New York designated by the Committee. The Committee may, in its
      discretion, deposit in the Participant’s Dividend Equivalent Account the
      securities or property comprising any Property Distribution in lieu of crediting
      such Dividend Equivalent Account with the Fair Market Value
      thereof.

     

    5.  
(a)      
      Notwithstanding
      the provisions of Section 1(d) of this Agreement, if, at the time of, and as
      part of, the Participant’s Election, the Participant so elects in accordance
      with procedures and subject to any limitations established by the Committee,
      all
      or a portion of the Shares issuable to the Participant upon the vesting of
      such
      RSUs and all or a portion of the amounts notionally credited in the Dividend
      Equivalent Account related to such RSUs shall not be distributed on the Vesting
      Date but shall be deferred and paid in one or more periodic installments, not
      in
      excess of ten, beginning at such time or times elected by the Participant at
      such time. The deferral is subject to the following limitations:

     

    (i)  If
      the
      Participant is a Key Employee, a distribution of deferred amounts triggered
      by
      the Participant’s separation from service (as that term is defined pursuant to
      Section 409A of the Code) may not occur or begin until six months after the
      date
      (the “Termination Date”) the Participant ceases to be an Eligible Individual
      (the “Termination”).

     

    (ii)  The
      deferral period with respect to any Participant shall
      end
      no later than six months after the Termination Date if the Participant’s
      Termination is for any reason other than the Participant’s Disability or
      Retirement.

     

    (iii)  The
      deferral period with respect to any Participant shall end three years after
      the
      Termination Date if the Participant’s Termination occurs by reason of the
      Participant’s Disability or Retirement. 

     

    (iv)  In
      the
      event of any Termination, a distribution of all amounts remaining unpaid shall
      be made in full to the Participant or his or her designated beneficiary as
      soon
      as administratively possible following the date of the end of the deferral
      period as set forth in Sections 5(a)(ii) and (iii). 

     

    (v)  All
      securities or property comprising Property Distributions deposited in such
      Dividend Equivalent Account related to such RSUs shall be distributed to the
      Participant as soon as practicable after the Vesting Date for such RSUs,
      irrespective of a deferral election made pursuant to this Section
      5.

     

    (vi)  The
      deferral procedures described in this Section 5 are intended to comply with
      the
      requirements of Section 409A of the Code and any related implementing
      regulations or guidance.

     

    (b)  The
      provisions of Section 4 shall continue to apply to all such vested RSUs and
      all
      such credited amounts subject to a deferral election until paid in accordance
      with the provisions of this Agreement.

     

    6. 
       (a)       
      Except
      as
      set forth in Section 6(b) of this Agreement, all unvested RSUs provided for
      in
      this Agreement, all amounts credited to the Participant’s Dividend Equivalent
      Accounts with respect to such RSUs, and all securities and property comprising
      Property Distributions deposited in such Dividend Equivalent Accounts with
      respect to such RSUs shall immediately be forfeited on the Participant’s
      Termination Date.

     

    (b)  Notwithstanding
      the foregoing, and provided the condition of Section 7 of this Agreement has
      been met, if the Participant ceases to be an Eligible Individual by reason
      of
      the Participant’s death, Disability, or Retirement, all the unvested RSUs
      granted hereunder, all amounts credited to the Participant’s Dividend Equivalent
      Accounts with respect to such RSUs, and all securities and property comprising
      Property Distributions deposited in such Dividend Equivalent Accounts with
      respect to such RSUs shall vest as of the Participant’s Termination Date. In the
      event that the Participant ceases to be an Eligible Individual by reason of
      the
      Participant’s Termination by his employer or principal without Cause, and
      provided the condition of Section 7 of this Agreement has been met, the
      Committee, or any person to whom the Committee has delegated authority, may,
      in
      its or his sole discretion, determine that all or any portion of the unvested
      RSUs granted hereunder, all amounts credited to the Participant’s Dividend
      Equivalent Accounts with respect to such RSUs, and all securities and property
      comprising Property Distributions deposited in such Dividend Equivalent Accounts
      with respect to such RSUs shall vest as of the Participant’s Termination Date.
      In the event vesting is accelerated pursuant to this Section 6(b) and the
      Participant is a Key Employee, a distribution of Shares issuable to the
      Participant, all amounts notionally credited to the Participant’s Dividend
      Equivalent Account, and all securities and property comprising all Property
      Distributions deposited in such Dividend Equivalent Account due the Participant
      upon the vesting of the RSUs shall not occur until six months after the
      Termination Date, unless the Participant’s Termination is due to death or
      Disability.

     

    7.  The
      other
      provisions of this Agreement notwithstanding, no unvested RSU granted hereunder
      shall vest on its scheduled Vesting Date under Section 2(a) of this Agreement
      or
      upon the Participant’s Termination pursuant to Section 6(b) of this Agreement
      unless the average of the Return on Investment for the five calendar years
      preceding the year in which such event occurs is at least 6% and, if required
      or
      deemed necessary to satisfy the requirements to qualify such RSU as
“performance-based compensation” under Section 162(m), the appropriate members
      of the Committee shall have certified that such condition has been met. Any
      unvested RSUs that do not vest upon the occurrence of any of such events as
      a
      result of the failure to meet the condition of this Section 7, all amounts
      credited to the Participant’s Dividend Equivalent Accounts with respect to such
      RSUs, and all securities and property comprising Property Distributions
      deposited in such Dividend Equivalent Accounts with respect to such RSUs shall
      immediately be forfeited.

     

    8.  The
      RSUs
      granted hereunder, any amounts notionally credited in the Participant’s Dividend
      Equivalent Accounts, and any securities and property comprising Property
      Distributions deposited in such Dividend Equivalent Accounts are not
      transferable by the Participant otherwise than by will or by the laws of descent
      and distribution or pursuant to a domestic relations order, as defined in the
      Code. 

     

    9.  All
      notices hereunder shall be in writing and, if to the Company, shall be delivered
      personally to the Secretary of the Company or mailed to its principal office,
      1615 Poydras Street, New Orleans, Louisiana 70112, addressed to the attention
      of
      the Secretary; and, if to the Participant, shall be delivered personally or
      mailed to the Participant at the address on file with the Company. Such
      addresses may be changed at any time by notice from one party to the
      other.

     

    10.  This
      Agreement is subject to the provisions of the Plan. The Plan may at any time
      be
      amended by the Board, except that any such amendment of the Plan that would
      materially impair the rights of the Participant hereunder may not be made
      without the Participant’s consent. The Committee may amend this Agreement at any
      time in any manner that is not inconsistent with the terms of the Plan and
      that
      will not result in the application of Section 409A(a)(1) of the Code.
      Notwithstanding the foregoing, no such amendment may materially impair the
      rights of the Participant hereunder without the Participant’s consent. Except as
      set forth above, any applicable determinations, orders, resolutions or other
      actions of the Committee shall be final, conclusive and binding on the Company
      and the Participant.

     

    11.  The
      Participant is required to satisfy any obligation in respect of withholding
      or
      other payroll taxes resulting from the vesting of any RSU granted hereunder
      or
      the payment of any securities, cash, or property hereunder, in accordance with
      procedures established by the Committee, as a condition to receiving any
      securities, cash payments, or property resulting from the vesting of any RSU
      or
      otherwise.

     

    12.  Nothing
      in this Agreement shall confer upon the Participant any right to continue in
      the
      employ of the Company or any of its Subsidiaries, or to interfere in any way
      with the right of the Company or any of its Subsidiaries to terminate the
      Participant’s employment relationship with the Company or any of its
      Subsidiaries at any time.

     

    13.  As
      used
      in this Agreement, the following terms shall have the meanings set forth
      below.

     

    (a)  “Cause”
      shall mean any of the following: (i) the commission by the Participant of an
      illegal act (other than traffic violations or misdemeanors punishable solely
      by
      the payment of a fine), (ii) the engagement of the Participant in dishonest
      or
      unethical conduct, as determined by the Committee or its designee, (iii) the
      commission by the Participant of any fraud, theft, embezzlement, or
      misappropriation of funds, (iv) the failure of the Participant to carry out
      a
      directive of his superior, employer or principal, or (v) the breach of the
      Participant of the terms of his engagement.

     

    (b)  “Change
      in Control” shall mean a change in the ownership of the Company, a change in the
      effective control of the Company or a change in the ownership of a substantial
      portion of the assets of the Company as provided under Section 409A of the
      Code,
      as amended from time to time, and any related implementing regulations or
      guidance.

     

    (c)  “Disability”
      shall have occurred if the Participant is (i) unable to engage in any
      substantial gainful activity by reason of any medically determinable physical
      or
      mental impairment which can be expected to result in death or can be expected
      to
      last for a continuous period of not less than 12 months, or (ii) by reason
      of
      any medically determinable physical or mental impairment which can be expected
      to result in death or can be expected to last for a continuous period of not
      less than 12 months, receiving income replacement benefits for a period of
      not
      less than 3 months under an accident and health plan covering employees of
      the
      Participant’s employer.

     

    (d)  “Fair
      Market Value” shall, with respect to a share of Common Stock, a Subsidiary
      security, or any other security, have the meaning set forth in the
      Freeport-McMoRan Copper & Gold Inc. 2003 Stock Incentive Plan Policies of
      the Committee, and, with respect to any other property, mean the value thereof
      determined by the board of directors of the Company in connection with declaring
      the dividend or distribution thereof.

     

    (e)  “Key
      Employee” shall mean any employee who meets the definition of “key employee” as
      defined in Section 416(i) of the Code.

     

    (f)  “Managed
      Net Income” shall mean, with respect to any year, the sum of (i) the net income
      (or net loss) of the Company and its consolidated subsidiaries for such year
      as
      reviewed by the Company’s independent auditors and released by the Company to
      the public; plus (or minus) (ii) the minority interests’ share in the net income
      (or net loss) of the Company’s consolidated subsidiaries for such year as
      reviewed by the Company’s independent auditors and released by the Company to
      the public; plus (or minus) (iii) the effect of changes in accounting principles
      of the Company and its consolidated subsidiaries for such year plus (or minus)
      the minority interests’ share in such changes in accounting principles as
      reviewed by the Company’s independent auditors and released by the Company to
      the public.

     

    (g)  “Net
      Cash
      Provided by Operating Activities” shall mean, with respect to any year, the net
      cash provided by operating activities of the Company and its consolidated
      subsidiaries for such year as reviewed by the Company’s independent auditors and
      released by the Company to the public.

     

    (h)  “Net
      Interest Expense” shall mean, with respect to any year, the net interest expense
      of the Company and its consolidated subsidiaries for such year as reviewed
      by
      the Company’s independent auditors and released by the Company to the
      public.

     

    (i)  “Retirement”
      shall mean early, normal or deferred retirement of the Participant under a
      tax
      qualified retirement plan of the Company or any other cessation of the provision
      of services to the Company or a Subsidiary by the Participant that is deemed
      by
      the Committee or its designee to constitute a retirement.

     

    (j)  “Return
      on Investment” shall mean, with respect to any year, the result (expressed as a
      percentage) calculated according to the following formula:

     

    a
      + (b
      - c)

    d

    

    in
      which
“a” equals Managed Net Income for such year, “b” equals Net Interest Expense for
      such year, “c” equals Tax on Net Interest Expense for such year, and “d” equals
      Total Investment of Capital for such year.

    

    (k)  “Tax
      on
      Net Interest Expense” shall mean, with respect to any year, the tax on the net
      interest expense of the Company and its consolidated subsidiaries for such
      year
      calculated at the appropriate statutory income tax rate for such year as
      reviewed by the Company’s independent auditors.

     

    (l)  “Total
      Investment of Capital” shall mean, with respect to any year, the sum of (i) the
      weighted average of the stockholders’ equity in the Company and its consolidated
      subsidiaries for such year, (ii) the weighted average of the minority interests
      in the consolidated subsidiaries of the Company for such year, (iii) the
      weighted average of the redeemable preferred stock of the Company for such
      year
      and (iv) the weighted average of the long-term debt of the Company and its
      consolidated subsidiaries for such year, all as shown in the quarterly balance
      sheets of the Company and its consolidated subsidiaries for such
      year.

     

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      day,
      month, and year first above written. 

    

    FREEPORT-McMoRan
      COPPER & GOLD INC.

    

    

    By: ______________________________________ 

    

    ______________________________________

    (Participant)

    ______________________________________

    (Street
      Address)

    _______________________________________

    (City)
      (State) (Zip Code)Exhibit 10.23

    Exhibit
      10.23

    

    FREEPORT-McMoRan
      COPPER & GOLD INC.

    1995
      STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS

    

    ARTICLE
      I 

    PURPOSE
      OF THE PLAN

     

    The
      purpose of the 1995 Stock Option Plan for Non-Employee Directors (the “Plan”) is
      to align more closely the interests of the non-employee directors of
      Freeport-McMoRan Copper & Gold Inc. (the “Company”) with that of the
      Company’s stockholders by providing for the automatic grant to such directors of
      stock options (“Options”) to purchase Shares (as hereinafter defined) and Stock
      Appreciation Rights (as hereinafter defined), in accordance with the terms
      of
      the Plan.

     

       
      ARTICLE II 

    DEFINITIONS

     

    For
      the
      purposes of this Plan, the following terms shall have the meanings
      indicated:

     

    Amendment
      Date:
      May 2,
      2000.

     

    Award:
      Any
      Option, including any Pre-Amendment Option, or Stock Appreciation Right granted
      under this Plan.

     

    Award
      Agreement:
      Any
      written agreement, contract, notice, or other instrument or document evidencing
      any Award, which may, but need not, be executed or acknowledged by the
      individual granted such Award.

     

    Board:
      The
      Board of Directors of the Company.

     

    Change
      in Control:
      A
      Change in Control shall be deemed to have occurred if either (a) any person,
      or
      any two or more persons acting as a group, and all affiliates of such person
      or
      persons, shall, otherwise than as a result of the Distribution, beneficially
      own
      more than 20% of all classes and series of the Company’s stock outstanding,
      taken as a whole, that has voting rights with respect to the election of
      directors of the Company (not including any series of preferred stock of the
      Company that has the right to elect directors only upon the failure of the
      Company to pay dividends) pursuant to a tender offer, exchange offer or series
      of purchases or other acquisitions, or any combination of those transactions,
      or
      (b) there shall be a change in the composition of the Board at any time within
      two years after any tender offer, exchange offer, merger, consolidation, sale
      of
      assets or contested election, or any combination of those transactions (a
“Transaction”), so that (i) the persons who were directors of the Company
      immediately before the first such Transaction cease to constitute a majority
      of
      the Board of Directors of the corporation which shall thereafter be in control
      of the companies that were parties to or otherwise involved in such Transaction,
      or (ii) the number of persons who shall thereafter be directors of such
      corporation shall be fewer than two-thirds of the number of directors of the
      Company immediately prior to such first Transaction. A Change in Control shall
      be deemed to take place upon the first to occur of the events specified in
      the
      foregoing clauses (a) and (b).

     

    Code:
      The
      Internal Revenue Code of 1986, as amended from time to time.

     

    Committee:
      A
      committee of the Board designated by the Board to administer the Plan and
      composed of not fewer than two directors, each of whom, to the extent necessary
      to comply with Rule 16b-3 only, is a “non-employee director” within the meaning
      of Rule 16b-3 and, to the extent necessary to comply with Section 162(m) only,
      is an “outside director” under Section 162(m). Until otherwise determined by the
      Board, the Committee shall be the Corporate Personnel Committee of the
      Board.

     

    Distribution:
      The
      distribution by Freeport-McMoRan Inc. (“FTX”) of all the then outstanding Shares
      owned by FTX to the holders of FTX common stock.

     

    Eligible
      Director:
      A
      director of the Company who is not, and within the preceding one year has not
      been, an officer or an employee of the Company or a Subsidiary, an officer
      or an
      employee of an entity with which the Company has contracted to receive executive
      or management services, or otherwise eligible for selection to participate
      in
      any plan of the Company or any Subsidiary that entitles the participants therein
      to acquire stock, stock options or stock appreciation rights of the Company
      or
      its Subsidiaries.

     

    Exchange
      Act:
      The
      Securities Exchange Act of 1934, as amended from time to time.

     

    Fair
      Market Value:
      Except
      as provided below in connection with a cashless exercise, for any purpose
      relevant under the Plan, the fair market value of a Share or any other security
      shall be the average of the high and low quoted per Share or security sale
      prices on the Composite Tape for New York Stock Exchange-Listed Stocks on the
      date in question or, if there are no reported sales on such date, on the last
      preceding date on which any reported sale occurred. If on the date in question
      the Shares or other securities in question are not listed on such Composite
      Tape, the fair market value shall be the average of the high and low quoted
      sale
      prices on the New York Stock Exchange on such date or, if no sales occurred
      on
      such date, on the last previous day on which a sale on the New York Stock
      Exchange is reported. In the context of a cashless exercise, the fair market
      value shall be the price at which the Shares are actually sold.

     

    Grant
      Date:
      August
      1, 1995 and the anniversary of such date in each subsequent year through and
      including 2004.

     

    Option
      Cancellation Gain:
      With
      respect to the cancellation of an Option pursuant to Section 3 of Article IV
      hereof, the excess of the Fair Market Value as of the Option Cancellation Date
      (as that term is defined in Section 3 of Article IV hereof) of all the
      outstanding Shares covered by such Option, whether or not then exercisable,
      over
      the purchase price of such Shares under such Option.

     

    Participant:
      Any
      individual granted an Award under this Plan.

     

    Pre-Amendment
      Option:
      An
      Option granted under this Plan prior to the Amendment Date and outstanding
      as of
      the Amendment Date.

     

    Rule
      16b-3:
      Rule
      16b-3 promulgated by the SEC under the Exchange Act, or any successor rule
      or
      regulation thereto as in effect from time to time.

     

    SAR:
      A Stock
      Appreciation Right.

     

    SEC:
      The
      Securities and Exchange Commission, including the staff thereof, or any
      successor thereto.

     

    Section
      162(m):
      Section
      162(m) of the Code and all regulations promulgated thereunder as in effect
      from
      time to time.

     

    Shares:
      Shares
      of Class B Common Stock, par value $0.10 per share, of the Company and any
      shares into which such Shares may be converted or combined in accordance with
      the terms of the Company’s Certificate of Incorporation.

     

    Stock
      Appreciation Right:
      Any
      award of stock appreciation rights granted under Article VII of this
      Plan.

     

    Subsidiary:
      Any
      corporation of which stock representing at least 50% of the ordinary voting
      power is owned, directly or indirectly, by the Company; and any other entity
      of
      which equity securities or interests representing at least 50% of the ordinary
      voting power or 50% of the total value of all classes of equity securities
      or
      interests of such entity are owned, directly or indirectly, by the
      Company.

     

    Tax-Offset
      Payment Right:
      A right
      to receive a cash payment upon the exercise of a Pre-Amendment Option related
      to
      and intended to defray the income tax liability associated with the exercise
      of
      such Pre-Amendment Option.

     

    ARTICLE
      III 

    ADMINISTRATION
      OF THE PLAN

     

    This
      Plan
      shall be administered by the Board. The Board will interpret this Plan and
      may
      from time to time adopt such rules and regulations for carrying out the terms
      and provisions of this Plan as it may deem best; however, the Board shall have
      no discretion with respect to the selection of directors who receive Awards,
      the
      timing of the grant of Awards, the number of Shares subject to any Awards or
      the
      purchase or grant price thereof. Notwithstanding the foregoing, the Committee
      shall have the authority to make all determinations with respect to the
      transferability of Awards in accordance with Article VIII hereof. All
      determinations by the Board or the Committee shall be made by the affirmative
      vote of a majority of its respective members, but any determination reduced
      to
      writing and signed by a majority of its respective members shall be fully as
      effective as if it had been made by a majority vote at a meeting duly called
      and
      held. Subject to any applicable provisions of the Company’s By-Laws or of this
      Plan, all determinations by the Board and the Committee pursuant to the
      provisions of this Plan, and all related orders or resolutions of the Board
      and
      the Committee, shall be final, conclusive and binding on all persons, including
      the Company, its stockholders, employees, and directors, and any Eligible
      Director or holder or beneficiary of any Award. In the event of any conflict
      or
      inconsistency between determinations, orders, resolutions, or other actions
      of
      the Committee and the Board taken in connection with this Plan, the action
      of
      the Board shall control.

     

    ARTICLE
      IV 

    STOCK
      AND
      STOCK APPRECIATION RIGHTS

    SUBJECT
      TO THE PLAN

     

    Section
      1.  The
      Shares to be issued or delivered upon exercise of Options shall be made
      available, at the discretion of the Board, either from the authorized but
      unissued Shares of the Company or from Shares reacquired by the Company,
      including Shares purchased by the Company in the open market or otherwise
      obtained; provided,
      however,
      that
      the Company, at the discretion of the Board, may, upon exercise of Options
      granted under this Plan, cause a Subsidiary to deliver Shares held by such
      Subsidiary.

     

    Section
      2.  Subject
      to the provisions of Section 3 of this Article IV, the aggregate number of
      Shares that may be issued pursuant to Options granted after February 4, 2003
      shall not exceed 180,000 and the number of SARs that may be granted under this
      Plan shall not exceed 1,311,200.

     

    Section
      3.  In
      the
      event of the payment of any dividends payable in Shares, or in the event of
      any
      subdivision or combination of the Shares, the number of Shares that may be
      subject to Awards granted under this Plan, and the number of Shares subject
      to
      each Award granted in accordance with Article VII, shall be increased or
      decreased proportionately, as the case may be, and the number of Shares
      deliverable upon the exercise thereafter of any Option theretofore granted
      (whether or not then exercisable) shall be increased or decreased
      proportionately, as the case may be, without change in the aggregate purchase
      or
      grant price. In the event the Company is merged or consolidated into or with
      another corporation in a transaction in which the Company is not the survivor,
      or in the event that substantially all of the Company’s assets are sold to
      another entity not affiliated with the Company, any holder of an Option, whether
      or not then exercisable, shall be entitled to receive (unless the Company shall
      take such alternative action as may be necessary to preserve the economic
      benefit of the Option for the optionee) on the effective date of any such
      transaction (the “Option Cancellation Date”), in cancellation of such Option, an
      amount in cash equal to the Option Cancellation Gain relating thereto,
      determined as of the Option Cancellation Date.

     

    ARTICLE
      V 

    PURCHASE
      OR GRANT PRICE OF AWARDS

     

    The
      purchase price per Share under each Option and the grant price of any SAR
      granted under Section 4 of Article VII shall be 100% of the Fair Market Value
      of
      a Share at the time such Award is granted, but in no case shall such price
      be
      less than the par value of the Shares subject to such Award. The grant price
      of
      any SAR granted under Section 3 of Article VII shall be determined in the manner
      described in Section 3 of Article VII.

     

    ARTICLE
      VI 

    ELIGIBILITY
      OF RECIPIENTS

     

    Options
      and SARs awarded under Section 4 of Article VII will be granted only to
      individuals who are Eligible Directors at the time of such grant. SARs awarded
      under Section 3 of Article VII will be granted only to holders of Pre-Amendment
      Options as provided in Section 3 of Article VII.

     

    ARTICLE
      VII

    GRANT
      OF
      AWARDS

     

    Section
      1.  Each
      Option shall constitute a nonqualified stock option that is not intended to
      qualify under Section 422 of the Code.

     

    Section
      2.  On
      each
      Grant Date, each Eligible Director, as of each such date, shall be granted
      an
      Option to purchase 10,000 Shares. Each Option shall become exercisable with
      respect to 2,500 Shares on each of the first, second, third and fourth
      anniversaries of the date of grant and may be exercised by the holder thereof
      with respect to all or any part of the Shares comprising each installment as
      such holder may elect at any time after such installment becomes exercisable
      but
      no later than the termination date of such Option; provided that each Option
      shall become exercisable in full upon a Change in Control.

     

    Section
      3.  Effective
      as of the Amendment Date, each holder of a Pre-Amendment Option shall receive
      a
      number of Stock Appreciation Rights equal to the number of Shares subject to
      such Pre-Amendment Option as of the Amendment Date multiplied by .6556
      (disregarding any fractional Share) and all Tax-Offset Payment Rights shall
      be
      immediately canceled. Except as set forth below, each such SAR shall have the
      same remaining term and other terms and conditions (whether such terms and
      conditions are contained in the related Pre-Amendment Option agreement or in
      this Plan) and shall be exercisable to the same extent as the related
      Pre-Amendment Option, with such changes and modifications as are necessary
      to
      substitute the SARs for the Tax-Offset Payment Rights set forth in such
      Pre-Amendment Option. The grant price of each such SAR shall be equal to the
      purchase price of the related Pre-Amendment Option as of the Amendment
      Date.

     

    Section
      4.  On
      the
      Grant Date in 2000 and on each subsequent Grant Date, each Eligible Director,
      as
      of each such date, shall be granted 6,556 Stock Appreciation Rights relating
      to
      6,556 Shares. One-fourth, or 1,639, of such Stock Appreciation Rights shall
      become exercisable on each of the first, second, third and fourth anniversaries
      of the Grant Date of such Award, and all or any portion of the Stock
      Appreciation Rights comprising each installment may be exercised by the holder
      thereof as such holder may elect at any time after such installment becomes
      exercisable but no later than the termination date of such Stock Appreciation
      Rights; provided that each Stock Appreciation Right shall become exercisable
      in
      full upon a Change in Control.

     

    Section
      5.  A
      Stock
      Appreciation Right granted under any Section of this Article VII shall entitle
      the holder thereof to receive upon exercise, for each Share to which the SAR
      relates, an amount in cash equal to the excess, if any, of the Fair Market
      Value
      of a Share on the date of exercise of the SAR over the grant price.

     

    ARTICLE
      VIII 

    TRANSFERABILITY
      OF AWARDS

     

    No
      Awards
      granted hereunder may be transferred, pledged, assigned or otherwise encumbered
      by a Participant except:

     

    (a)  by
      will;

     

    (b)  by
      the
      laws of descent and distribution; or

     

    (c)  if
      permitted by the Committee and so provided in the Award Agreement or an
      amendment thereto, (i) pursuant to a domestic relations order, as defined in
      the
      Code, (ii) to Immediate Family Members, (iii) to a partnership in which
      Immediate Family Members, or entities in which Immediate Family Members are
      the
      owners, members or beneficiaries, as appropriate, are the partners, (iv) to
      a
      limited liability company in which Immediate Family Members, or entities in
      which Immediate Family Members are the owners, members or beneficiaries, as
      appropriate, are the members, or (v) to a trust for the benefit of Immediate
      Family Members; provided, however, that no more than a de
      minimus
      beneficial interest in a partnership, limited liability company or trust
      described in (iii), (iv) or (v) above may be owned by a person who is not an
      Immediate Family Member or by an entity that is not beneficially owned solely
      by
      Immediate Family Members. “Immediate Family Members” shall be defined as the
      spouse and natural or adopted children or grandchildren of the optionee and
      their spouses.

     

    Any
      attempted assignment, transfer, pledge, hypothecation or other disposition
      of
      Awards, or levy of attachment or similar process upon Awards not specifically
      permitted herein, shall be null and void and without effect.

    

    ARTICLE
      IX 

    EXERCISE
      OF AWARDS

     

    Section
      1.  Each
      Option granted hereunder and each SAR granted after the Amendment Date shall
      terminate 10 years after the date on which it was granted. Each SAR granted
      on
      the Amendment Date in substitution for a Tax-Offset Payment Right shall
      terminate on the date that the related Pre-Amendment Option terminates as
      provided in Section 3 of Article VII.

     

    Section
      2.  Except
      in
      cases provided for in Article X hereof, each Award may be exercised
      by the
      holder thereof only while the Participant to whom such Award was granted is
      an
      Eligible Director.

     

    Section
      3.  A
      person
      electing to exercise an SAR or any portion thereof then exercisable shall give
      written notice to the Company of such election and the number of SARs such
      person has elected to exercise. A person electing to exercise an Option or
      any
      portion thereof then exercisable shall give written notice to the Company of
      such election and of the number of Shares such person has elected to purchase,
      and shall at the time of purchase tender the full purchase price of such Shares,
      which tender shall be made in cash or cash equivalent (which may be such
      person’s personal check) or in Shares already owned by such person and held for
      at least six months (which tender may be by actual delivery or by attestation)
      and which Shares shall be valued for such purpose on the basis of their Fair
      Market Value on the date of exercise, or in any combination thereof. The Company
      shall have no obligation to deliver Shares pursuant to the exercise of any
      Option, in whole or in part, until such payment in full of the purchase price
      of
      such Shares is received by the Company. No optionee, or legal representative,
      legatee, distributee, or assignee of such optionee shall be or be deemed to
      be a
      holder of any Shares subject to such Option or entitled to any rights of a
      stockholder of the Company in respect of any Shares covered by such Option
      distributable in connection therewith until such Shares have been paid for
      in
      full and have been issued or delivered by the Company.

     

    Section
      4.  Each
      Option shall be subject to the requirement that if at any time the Board shall
      be advised by counsel that the listing, registration or qualification of the
      Shares subject to such Option upon any securities exchange or under any state
      or
      federal law, or the consent or approval of any governmental regulatory body,
      is
      necessary or desirable as a condition of, or in connection with, the granting
      of
      such Option or the issue or purchase of Shares thereunder, such Option may
      not
      be exercised in whole or in part unless such listing, registration,
      qualification, consent or approval shall have been effected or obtained free
      from any conditions not reasonably acceptable to such counsel for the
      Board.

     

    Section
      5.  The
      Company may establish appropriate procedures to provide for payment or
      withholding of such income or other taxes as may be required by law to be paid
      or withheld in connection with the exercise of Awards and to ensure that the
      Company receives prompt advice concerning the occurrence of any event that
      may
      create, or affect the timing or amount of, any obligation to pay or withhold
      any
      such taxes or that may make available to the Company any tax deduction resulting
      from the occurrence of such event.

     

    ARTICLE
      X 

    TERMINATION
      OF SERVICE

    AS
      AN
      ELIGIBLE DIRECTOR

     

    Section
      1.  If
      and
      when a Participant shall cease to be an Eligible Director for any reason other
      than death or retirement from the Board, all of the Awards granted to such
      Participant while serving as an Eligible Director shall be terminated except
      that any Award, to the extent then exercisable, may be exercised by the holder
      thereof within three months after such Participant ceases to be an Eligible
      Director, but not later than the termination date of the Award.

     

    Section
      2.  If
      and
      when a Participant shall cease to be an Eligible Director by reason of the
      Participant’s retirement from the Board, all of the Awards granted to such
      Participant while serving as an Eligible Director shall be terminated except
      that any Award, to the extent then exercisable or exercisable within one year
      thereafter, may be exercised by the holder thereof within three years after
      such
      retirement, but not later than the termination date of the Award.

     

    Section
      3.  Should
      a
      Participant die while serving as an Eligible Director, all the Awards granted
      to
      such Participant shall be terminated, except that any Award to the extent
      exercisable by the holder thereof at the time of such death, together with
      the
      unmatured installment (if any) of such Award that at that time is next scheduled
      to become exercisable, may be exercised until the third anniversary of the
      date
      of such death, but not later than the termination date of the Award, by the
      holder thereof, the Participant’s estate, or the person designated in the
      Participant’s last will and testament, as appropriate.

     

    Section
      4.  Should
      a
      Participant die after ceasing to be an Eligible Director, all of the Awards
      granted to such Participant shall be terminated, except that any Award, to
      the
      extent exercisable by the holder thereof at the time of such death, may be
      exercised until the third anniversary of the date the Participant ceased to
      be
      an Eligible Director, but not later than the termination date of the Award,
      by
      the holder thereof, the Participant’s estate, or the person designated in the
      Participant’s last will and testament, as appropriate.

     

    ARTICLE
      XI 

    AMENDMENTS
      TO PLAN AND AWARDS

     

    The
      Board
      may at any time terminate or from time to time amend, modify or suspend this
      Plan; provided, however, that no such amendment or modification without the
      approval of the stockholders shall: 

     

    (a)  except
      pursuant to Section 3 of Article IV, increase the maximum number
      (determined as provided in this Plan) of Shares that may be purchased pursuant
      to Options, either individually or in aggregate;

     

    (b)  permit
      the granting of any Option or any SAR under Section 4 of Article VII at a
      purchase or grant price other than 100% of the Fair Market Value of the Shares
      at the time such Award is granted, subject to adjustment pursuant to
      Section 3 of Article IV;

     

    (c)  permit
      the exercise of an Option unless the full purchase price of the Shares as to
      which the Option is exercised is paid at the time of exercise;

     

    (d)  extend
      beyond May 1, 2004 the period during which Awards may be granted;

     

    (e)  modify
      in
      any respect the class of individuals who constitute Eligible Directors;
      or

     

    (f)  materially
      increase the benefits accruing to participants hereunder.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00088-of-00352.parquet"}]]