Document:

exhibit4_1.htm

    
      

    

    Exhibit
      4.1

    

    

    

                      VAIL
      RESORTS, INC.

                      1999
      LONG TERM INCENTIVE AND SHARE AWARD PLAN

    

    

    

                      1.       Purposes.

                               --------

    

    The
      purposes of the 1999 Long Term Incentive and Share Award Plan are to advance
      the
      interests of Vail Resorts, Inc. and its shareholders by providing a means to
      attract, retain, and motivate employees, consultants and directors of the
      Company upon whose judgment, initiative and efforts the continued success,
      growth and development of the Company is dependent.

    

                      2.       Definitions.

                               -----------

    

    For
      purposes of the Plan, the following terms shall be defined as set
      forth

    below:

    

         (a)
      "Affiliate" means any entity other than the Company and its Subsidiaries that
      is
      designated by the Board or the Committee as a participating employer under
      the
      Plan, provided that the Company directly or indirectly owns at least 20% of
      the
      combined voting power of all classes of stock of such entity or at least 20%
      of
      the ownership interests in such entity.

    

         (b)
      "Award" means any Option, SAR, Restricted Share Unit, Performance Share,
      Performance Unit, Dividend Equivalent, or Other Share-Based Award granted to
      an
      Eligible Person under the Plan.

    

         (c)
      "Award Agreement" means any written agreement, contract, or other instrument
      or
      document evidencing an Award.

    

         (d)
      "Beneficiary" means the person, persons, trust or trusts which have been
      designated by such Eligible Person in his or her most recent written beneficiary
      designation filed with the Company to receive the benefits specified under
      this
      Plan upon the death of the Eligible Person, or, if there is no designated
      Beneficiary or surviving designated Beneficiary, then the person, persons,
      trust
      or trusts entitled by will or the laws of descent and distribution to receive
      such benefits.

    

         (e)
      "Board" means the Board of Directors of the Company.

    

         (f)
      "Code" means the Internal Revenue Code of 1986, as amended from time to time.
      References to any provision of the Code shall be deemed to include successor
      provisions thereto and regulations thereunder.

    

         (g)
      "Committee" means the Compensation Committee of the Board or a subcommittee
      thereof, or such other Board committee (which may include the entire Board)
      as
      may be designated by the Board to administer the Plan, or if the Board so
      designates, the entire Board.

    

         (h)
      "Company" means Vail Resorts, Inc., a corporation organized under the laws
      of
      Delaware, or any successor corporation.

    

         (i)
      "Director" means a member of the Board who is not an employee of the Company,
      a
      Subsidiary or an Affiliate.

    

         (j)
      "Dividend Equivalent" means a right, granted under Section 5(g), to receive
      cash, Shares, or other property equal in value to dividends paid with respect
      to
      a specified number of Shares. Dividend Equivalents may be awarded on a
      free-standing basis or in connection with another Award, and may be paid
      currently or on a deferred basis.

    

         (k)
      "Eligible Person" means (i) an employee or consultant of the Company, a
      Subsidiary or an Affiliate, including any director who is an employee, or (ii)
      a
      Director.

    

         (l)
      "Exchange Act" means the Securities Exchange Act of 1934, as amended from time
      to time. References to any provision of the Exchange Act shall be deemed to
      include successor provisions thereto and regulations thereunder.

    

         (m)
      "Fair Market Value" means, with respect to Shares or other property, the fair
      market value of such Shares or other property determined by such methods or
      procedures as shall be established from time to time by the Committee. If the
      Shares are listed on any established stock exchange or a national market system,
      unless otherwise determined by the Committee in good faith, the Fair Market
      Value of Shares shall mean the mean between the high and low selling prices
      per
      Share on the immediately preceding date (or, if the Shares
      were not traded on that day, the next preceding day that the Shares were traded)
      on the principal exchange on which the Shares are traded, as such prices are
      officially quoted on such exchange.

    

         (n)
      "ISO" means any option intended to be and designated as an incentive stock
      option within the meaning of Section 422 of the Code.

    

         (o)
      "NQSO" means any Option that is not an ISO.

    

         (p)
      "Option" means a right, granted under Section 5(b), to purchase
      Shares.

    

         (q)
      "Other Share-Based Award" means a right, granted under Section 5(h), that
      relates to or is valued by reference to Shares.

    

         (r)
      "Participant" means an Eligible Person who has been granted an Award under
      the
      Plan.

    

         (s)
      "Performance Share" means a performance share granted under Section
      5(f).

    

         (t)
      "Performance Unit" means a performance unit granted under Section
      5(f).

    

         (u)
      "Plan" means this 1999 Long Term Incentive and Share Award Plan.

    

         (v)
      "Restricted Shares" means an Award of Shares under Section 5(d) that may be
      subject to certain restrictions and to a risk of forfeiture.

    

         (w)
      "Restricted Share Unit" means a right, granted under Section 5(e), to receive
      Shares or cash at the end of a specified deferral period.

    

         (x)
      "Rule 16b-3" means Rule 16b-3, as from time to time in effect and applicable
      to
      the Plan and Participants, promulgated by the Securities and Exchange Commission
      under Section 16 of the Exchange Act.

    

         (y)
      "SAR" or "Share Appreciation Right" means the right, granted under Section
      5(c),
      to be paid an amount measured by the difference between the exercise price
      of
      the right and the Fair Market Value of Shares on the date of exercise of the
      right, with payment to be made in cash, Shares, or property as specified in
      the
      Award or determined by the Committee.

    

         (z)
      "Shares" means common stock, $.01 par value per share, of the
      Company.

     

       
      (aa) "Subsidiary" means any corporation (other than the Company) in an unbroken
      chain of corporations beginning with the Company if each of the corporations
      (other than the last corporation in the unbroken chain) owns shares possessing
      50% or more of the total combined voting power of all classes of stock in one
      of
      the other corporations in the chain.

    

                      3.       Administration.

                               --------------

    

         (a)
      Authority of the Committee. The Plan shall be administered by the Committee,
      and
      the Committee shall have full and final authority to take the following actions,
      in each case subject to and consistent with the provisions of the
      Plan:

    

         (i)  to
      select Eligible Persons to whom Awards may be granted;

    

         (ii)
      to designate Affiliates;

    

         (iii)
      to determine the type or types of Awards to be granted to each Eligible
      Person;

    

         (iv)
      to determine the type and number of Awards to be granted, the number of Shares
      to which an Award may relate, the terms and conditions of any Award granted
      under the Plan (including, but not limited to, any exercise price, grant price,
      or purchase price, and any bases for adjusting such exercise, grant or purchase
      price, any restriction or condition, any schedule for lapse of restrictions
      or
      conditions relating to transferability or forfeiture, exercisability, or
      settlement of an Award, and waiver or accelerations thereof, and waivers of
      performance conditions relating to an Award, based in each case on such
      considerations as the Committee shall determine), and all other matters to
      be
      determined in connection with an Award;

    

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

    

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

    

         (vii)
      to prescribe the form of each Award Agreement, which need not be identical
      for
      each Eligible Person;

    

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

    

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

    

         (x)
      to accelerate the exercisability or vesting of all or any portion
      of

    any
      Award
      or to extend the period during which an Award is exercisable; and

         (xi)
      to make all other decisions and determinations as may be required under the
      terms of the Plan or as the Committee may deem necessary or advisable for the
      administration of the Plan.

    

         (b)
      Manner of Exercise of Committee Authority. The Committee shall have sole
      discretion in exercising its authority under the Plan. Any action of the
      Committee with respect to the Plan shall be final, conclusive, and binding
      on
      all persons, including the Company, Subsidiaries, Affiliates, Eligible Persons,
      any person claiming any rights under the Plan from or through any Eligible
      Person, and shareholders. The express grant of any specific power to
      the

    Committee,
      and the taking of any action by the Committee, shall not be construed as
      limiting any power or authority of the Committee. The Committee may delegate
      to
      other members of the Board or officers or managers of the Company or any
      Subsidiary or Affiliate the authority, subject to such terms as the Committee
      shall determine, to perform administrative functions and, with respect to Awards
      granted to persons not subject to Section 16 of the Exchange Act, to perform
      such other functions as the Committee may determine, to the extent permitted
      under Rule 16b-3 (if applicable) and applicable law.

    

         (c)
      Limitation of Liability. Each member of the Committee shall be entitled to,
      in
      good faith, rely or act upon any report or other information furnished to him
      or
      her by any officer or other employee of the Company or any Subsidiary or
      Affiliate, the Company's independent certified public accountants, or other
      professional retained by the Company to assist in the administration of the
      Plan. No member of the Committee, nor any officer or employee of the Company
      acting on behalf of the Committee, shall be personally liable for any action,
      determination, or interpretation taken or made in good faith with respect to
      the
      Plan, and all members of the Committee and any officer or employee of the
      Company acting on their behalf shall, to the extent permitted by law, be fully
      indemnified and protected by the Company with respect to any such action,
      determination, or interpretation.

    

         (d)
      Limitation on Committee's Discretion. Anything in this Plan to the

    contrary
      notwithstanding, in the case of any Award which is intended to qualify as
      "performance-based compensation" within the meaning of Section 162(m)(4)(C)of
      the Code, if the Award Agreement so provides, the Committee shall have no
      discretion to increase the amount of compensation payable under the Award to
      the
      extent such an increase would cause the Award to lose its qualification as
      such
      performance-based compensation.

    

                      4.       Shares
      Subject to the Plan.

                               --------------------------

    

         (a)
      Subject to adjustment as provided in Section 4(c) hereof, the total number
      of
      Shares reserved for issuance in connection with Awards under the Plan shall
      be
      2,500,000. No Award may be granted if the number of Shares to which such Award
      relates, when added to the number of Shares previously issued under the Plan,
      exceeds the number of Shares reserved under the preceding sentence. If any
      Awards are forfeited, canceled, terminated, exchanged or surrendered or such
      Award is settled in cash or otherwise terminates without a distribution of
      Shares to the Participant, any Shares counted against the number of Shares
      reserved and available under the Plan with respect to such Award shall, to
      the
      extent of any such forfeiture, settlement, termination, cancellation, exchange
      or surrender, again be available for Awards under the Plan. Upon the exercise
      of
      any Award granted in tandem with any other Awards, such related Awards shall
      be
      canceled to the extent of the number of Shares as to which the Award is
      exercised.

    

         (b)
      Subject to adjustment as provided in Section 4(c) hereof, the maximum number
      of
      Shares (i) with respect to which Options or SARs may be granted during a
      calendar year to any Eligible Person under this Plan shall be 1,000,000 Shares,
      and (ii) with respect to Performance Shares, Performance Units, Restricted
      Shares or Restricted Share Units intended to qualify as performance-based
      compensation within the meaning of Section 162(m)(4)(C) of the Code shall be
      the
      equivalent of 200,000 Shares during a calendar year to any Eligible Person
      under
      this Plan.

    

         (c)
      In the event that the Committee shall determine that any dividend in Shares,
      recapitalization, Share split, reverse split, reorganization, merger,
      consolidation, spin-off, combination, repurchase, or share exchange, or other
      similar corporate transaction or event, affects the Shares such that an
      adjustment is appropriate in order to prevent dilution or enlargement of the
      rights of Eligible Persons under the Plan, then the Committee shall make such
      equitable changes or adjustments as it deems appropriate and, in such manner
      as
      it may deem equitable, adjust any or all of (i) the number and kind of shares
      which may thereafter be issued under the Plan, (ii) the number and kind of
      shares, other securities or other consideration issued or issuable in respect
      of
      outstanding Awards, and (iii) the exercise price, grant price, or purchase
      price
      relating to any Award; provided, however, in each case that, with respect to
      ISOs, such adjustment shall be made in accordance with Section 424(a) of the
      Code, unless the Committee determines otherwise. In addition, the Committee
      is
      authorized to make adjustments in the terms and conditions of, and the criteria
      and performance objectives included in, Awards in recognition of unusual or
      non-recurring events (including, without limitation, events described in the
      preceding sentence) affecting the Company or any Subsidiary or Affiliate or
      the
      financial statements of the Company or any Subsidiary or Affiliate, or in
      response to changes in applicable laws, regulations, or accounting principles;
      provided, however, that, if an Award Agreement specifically so provides, the
      Committee shall not have discretion to increase the amount of compensation
      payable under the Award to the extent such an increase would cause the Award
      to
      lose its qualification as performance-based compensation for purposes of Section
      162(m)(4)(C) of the Code and the regulations thereunder.

    

         (d)
      Any Shares distributed pursuant to an Award may consist, in whole or in part,
      of
      authorized and unissued Shares or treasury Shares including Shares acquired
      by
      purchase in the open market or in private transactions.

    

                      5.       Specific
      Terms of Awards.

                               ------------------------

    

         (a)
      General. Awards may be granted on the terms and conditions set forth in this
      Section 5. In addition, the Committee may impose on any Award or the exercise
      thereof, at the date of grant or thereafter (subject to Section 7(d)), such
      additional terms and conditions, not inconsistent with the provisions of the
      Plan, as the Committee shall determine, including terms regarding forfeiture
      of
      Awards or continued exercisability of Awards in the event of termination of
      service by the Eligible Person.

    

         (b)
      Options. The Committee is authorized to grant Options, which may be NQSOs or
      ISOs, to Eligible Persons on the following terms and conditions:

    

         (i)
      Exercise Price. The exercise price per Share purchasable under an Option shall
      be determined by the Committee, and the Committee may, without limitation,
      set
      an exercise price that is based upon achievement of performance criteria if
      deemed appropriate by the Committee.

    

         (ii)
      Option Term. The term of each Option shall be determined by the
      Committee.

    

         (iii)
      Time and Method of Exercise. The Committee shall determine at the date of grant
      or thereafter the time or times at which an Option may be exercised in whole
      or
      in part (including, without limitation, upon achievement of performance criteria
      if deemed appropriate by the Committee), the methods by which such exercise
      price may be paid or deemed to be paid (including, without limitation,
      broker-assisted exercise arrangements), the form of such payment (including,
      without limitation, cash, Shares, notes or other property), and the methods
      by
      which Shares will be delivered or deemed to be delivered to Eligible
      Persons.

         (iv)
      ISOs. The terms of any ISO granted under the Plan shall comply in all respects
      with the provisions of Section 422 of the Code, including but not limited to
      the
      requirement that the ISO shall be granted within ten years from the earlier
      of
      the date of adoption or shareholder approval of the Plan. ISOs may only be
      granted to employees of the Company or a Subsidiary.

    

         (c)
      SARs. The Committee is authorized to grant SARs (Share Appreciation Rights)
      to
      Eligible Persons on the following terms and conditions:

         (i)
      Right to Payment. An SAR shall confer on the Eligible Person to whom it is
      granted a right to receive with respect to each Share subject thereto, upon
      exercise thereof, the excess of (1) the Fair Market Value of one Share on the
      date of exercise (or, if the Committee shall so determine in the case of any
      such right, the Fair Market Value of one Share at any time during a specified
      period before or after the date of exercise) over (2) the exercise price of
      the
      SAR as determined by the Committee as of the date of grant of the SAR (which,
      in
      the case of an SAR granted in tandem with an Option, shall be equal to the
      exercise price of the underlying Option).

    

         (ii)
      Other Terms. The Committee shall determine, at the time of grant or thereafter,
      the time or times at which an SAR may be exercised in whole or in part, the
      method of exercise, method of settlement, form of consideration payable in
      settlement, method by which Shares will be delivered or deemed to be delivered
      to Eligible Persons, whether or not an SAR shall be in tandem with any other
      Award, and any other terms and conditions of any SAR. Unless the Committee
      determines otherwise, an SAR (1) granted in tandem with an NQSO may be granted
      at the time of grant of the related NQSO or at any time thereafter and (2)
      granted in tandem with an ISO may only be granted at the time of grant of the
      related ISO.

    

         (d)
      Restricted Shares. The Committee is authorized to grant Restricted

    Shares
      to
      Eligible Persons on the following terms and conditions:

         (i)
      Issuance and Restrictions. Restricted Shares shall be subject to such
      restrictions on transferability and other restrictions, if any, as the Committee
      may impose at the date of grant or thereafter, which restrictions may lapse
      separately or in combination at such times, under such circumstances (including,
      without limitation, upon achievement of performance criteria if deemed
      appropriate by the Committee), in such installments, or otherwise, as the
      Committee may determine. Except to the extent restricted under the Award
      Agreement relating to the Restricted Shares, an Eligible Person granted
      Restricted Shares shall have all of the rights of a shareholder including,
      without limitation, the right to vote Restricted Shares and the right to receive
      dividends thereon. If the lapse of restrictions is conditioned on the
      achievement of performance criteria, the Committee shall select the criterion
      or
      criteria from the list of criteria set forth in Section 5(f)(i). The Committee
      must certify in writing prior to the lapse of restrictions conditioned on
      achievement of performance criteria that such performance criteria were in
      fact
      satisfied.

    

         (ii)
      Forfeiture. Except as otherwise determined by the Committee, at the date of
      grant or thereafter, upon termination of service during the applicable
      restriction period, Restricted Shares and any accrued but unpaid dividends
      or
      Dividend Equivalents that are at that time subject to restrictions shall be
      forfeited; provided, however, that the Committee may provide, by rule or
      regulation or in any Award Agreement, or may determine in any individual case,
      that restrictions or forfeiture conditions relating to Restricted Shares will
      be
      waived in whole or in part in the event of terminations resulting from specified
      causes, and the Committee may in other cases waive in whole or in part
      the

    forfeiture
      of Restricted Shares.

         (iii)
      Certificates for Shares. Restricted Shares granted under the Plan may be
      evidenced in such manner as the Committee shall determine. If certificates
      representing Restricted Shares are registered in the name of the Eligible
      Person, such certificates shall bear an appropriate legend referring to the
      terms, conditions, and restrictions applicable to such Restricted Shares, and
      the Company shall retain physical possession of the certificate.

    

         (iv)
      Dividends. Dividends paid on Restricted Shares shall be either paid at the
      dividend payment date, or deferred for payment to such date as determined by
      the
      Committee, in cash or in unrestricted Shares having a Fair Market Value equal
      to
      the amount of such dividends. Shares distributed in connection with a Share
      split or dividend in Shares, and other property distributed as a dividend,
      shall
      be subject to restrictions and a risk of forfeiture to the same extent as the
      Restricted Shares with respect to which such Shares or other property have
      been
      distributed.

         (e)
      Restricted Share Units. The Committee is authorized to grant Restricted Share
      Units to Eligible Persons, subject to the following terms and
      conditions:

    

         (i)
      Award and Restrictions. Delivery of Shares or cash, as the case may be, will
      occur upon expiration of the deferral period specified for Restricted Share
      Units by the Committee (or, if permitted by the Committee, as elected by the
      Eligible Person). In addition, Restricted Share Units shall be subject to such
      restrictions as the Committee may impose, if any (including, without limitation,
      the achievement of performance criteria if deemed appropriate by the Committee),
      at the date of grant or thereafter, which restrictions may lapse at the
      expiration of the deferral period or at earlier or later specified times,
      separately or in combination, in installments or otherwise, as the Committee
      may
      determine. If the lapse of restrictions is conditioned on the achievement of
      performance criteria, the Committee shall select the criterion or criteria
      from
      the list of criteria set forth in Section 5(f)(i). The Committee must certify
      in
      writing prior to the lapse of restrictions conditioned on the achievement of
      performance criteria that such performance criteria were in fact
      satisfied.

    

         (ii)
      Forfeiture. Except as otherwise determined by the Committee at date of grant
      or
      thereafter, upon termination of service (as determined under criteria
      established by the Committee) during the applicable deferral period or portion
      thereof to which forfeiture conditions apply (as provided in the Award Agreement
      evidencing the Restricted Share Units), or upon failure to satisfy any other
      conditions precedent to the delivery of Shares or cash to which such Restricted
      Share Units relate, all Restricted Share Units that are at that time subject
      to
      deferral or restriction shall be forfeited; provided, however, that the
      Committee may provide, by rule or regulation or in any Award Agreement, or
      may
      determine in any individual case, that restrictions or forfeiture conditions
      relating to Restricted Share Units will be waived in whole or in part in the
      event of termination resulting from specified causes, and the Committee may
      in
      other cases waive in whole or in part the forfeiture of Restricted Share
      Units.

    

         (f)
      Performance Shares and Performance Units. The Committee is authorized to grant
      Performance Shares or Performance Units or both to Eligible Persons on the
      following terms and conditions:

    

         (i)
      Performance Period. The Committee shall determine a performance period (the
      "Performance Period") of one or more years and shall determine the performance
      objectives for grants of Performance Shares and Performance Units. Performance
      objectives may vary from Eligible Person to Eligible Person and shall be based
      upon one or more of the following performance criteria as the Committee may
      deem
      appropriate: appreciation in value of the Shares, total shareholder return,
      earnings per share, operating income, net income, pro forma net income, return
      on equity, return on designated assets, return on capital, economic value added,
      earnings, revenues, expenses, operating profit margin, operating cash flow,
      net
      profit margin. The performance objectives may be determined by reference to
      the
      performance of the Company, or of a Subsidiary or Affiliate, or of a division
      or
      unit of any of the foregoing. Performance Periods may overlap and Eligible
      Persons may participate simultaneously with respect to Performance Shares and
      Performance Units for which different Performance Periods are
      prescribed.

    

         (ii)
      Award Value. At the beginning of a Performance Period, the Committee shall
      determine for each Eligible Person or group of Eligible Persons with respect
      to
      that Performance Period the range of number of Shares, if any, in the case
      of
      Performance Shares, and the range of dollar values, if any, in the case of
      Performance Units, which may be fixed or may vary in accordance with such
      performance or other criteria specified by the Committee, which shall be paid
      to
      an Eligible Person as an Award if the relevant measure of Company performance
      for the Performance Period is met. The Committee must certify in writing that
      the applicable performance criteria were satisfied prior to payment under any
      Performance Shares or Performance Units.

    

         (iii)
      Significant Events. If during the course of a Performance Period there shall
      occur significant events as determined by the Committee which the Committee
      expects to have a substantial effect on a performance objective during such
      period, the Committee may revise such objective; provided, however, that, if
      an
      Award Agreement so provides, the Committee shall not have any discretion to
      increase the amount of compensation payable under the Award to the extent such
      an increase would cause the Award to lose its qualification as performance-based
      compensation for purposes of Section 162(m)(4)(C) of the Code and the
      regulations thereunder.

    

         (iv)
      Forfeiture. Except as otherwise determined by the Committee, at the date of
      grant or thereafter, upon termination of service during the applicable
      Performance Period, Performance Shares and Performance Units for which the
      Performance Period was prescribed shall be forfeited; provided, however, that
      the Committee may provide, by rule or regulation or in any Award Agreement,
      or
      may determine in an individual case, that restrictions or forfeiture conditions
      relating to Performance Shares and Performance Units will be waived in whole
      or
      in part in the event of terminations resulting from specified causes, and the
      Committee may in other cases waive in whole or in part the forfeiture of
      Performance Shares and Performance Units.

    

         (v)
      Payment. Each Performance Share or Performance Unit may be paid in whole Shares,
      or cash, or a combination of Shares and cash either as a lump sum payment or
      in
      installments, all as the Committee shall determine, at the time of grant of
      the
      Performance Share or Performance Unit or otherwise, commencing as soon as
      practicable after the end of the relevant Performance Period. The Committee
      must
      certify in writing prior to the payment of any Performance Share or Performance
      Unit that the performance objectives and any other material terms were in fact
      satisfied.

    

         (g)
      Dividend Equivalents. The Committee is authorized to grant Dividend Equivalents
      to Eligible Persons. The Committee may provide, at the date of grant or
      thereafter, that Dividend Equivalents shall be paid or distributed when accrued
      or shall be deemed to have been reinvested in additional Shares, or other
      investment vehicles as the Committee may specify, provided that Dividend
      Equivalents (other than freestanding Dividend Equivalents) shall be subject
      to
      all conditions and restrictions of the underlying Awards to which they
      relate.

    

         (h)
      Other Share-Based Awards. The Committee is authorized, subject to limitations
      under applicable law, to grant to Eligible Persons such other Awards that may
      be
      denominated or payable in, valued in whole or in part by reference to, or
      otherwise based on, or related to, Shares, as deemed by the Committee to be
      consistent with the purposes of the Plan, including, without limitation,
      unrestricted shares awarded purely as a "bonus" and not subject to any
      restrictions or conditions, other rights convertible or exchangeable into
      Shares, purchase rights for Shares, Awards with value and payment contingent
      upon performance of the Company or any other factors designated by the
      Committee, and Awards valued by reference to the performance of specified
      Subsidiaries or Affiliates. The Committee shall determine the terms and
      conditions of such Awards at date of grant or thereafter. Shares delivered
      pursuant to an Award in the nature of a purchase right granted under this
      Section 5(h) shall be purchased for such consideration, paid for at such times,
      by such methods, and in such forms, including, without limitation, cash, Shares,
      notes or other property, as the Committee shall determine. Cash awards, as
      an
      element of or supplement to any other Award under the Plan, shall also be
      authorized pursuant to this Section 5(h).

    

                      6.       Certain
      Provisions Applicable to Awards.

                               ---------------------------------------

    

         (a)
      Stand-Alone, Additional, Tandem and Substitute Awards. Awards granted under
      the
      Plan may, in the discretion of the Committee, be granted to Eligible Persons
      either alone or in addition to, in tandem with, or in exchange or substitution
      for, any other Award granted under the Plan or any award granted under any
      other
      plan or agreement of the Company, any Subsidiary or Affiliate, or any business
      entity to be acquired by the Company or a Subsidiary or Affiliate, or any other
      right of an Eligible Person to receive payment from the Company or any
      Subsidiary or Affiliate. Awards may be granted in addition to or in tandem
      with
      such other Awards or awards, and may be granted either as of the same time
      as or
      a different time from the grant of such other Awards or awards. The per Share
      exercise price of any Option, grant price of any SAR, or purchase price of
      any
      other Award conferring a right to purchase Shares which is granted, in
      connection with the substitution of awards granted under any other plan or
      agreement of the Company or any Subsidiary or Affiliate or any business entity
      to be acquired by the Company or any Subsidiary or Affiliate, shall be
      determined by the Committee, in its discretion.

    

         (b)
      Terms of Awards. The term of each Award granted to an Eligible Person shall
      be
      for such period as may be determined by the Committee; provided, however, that
      in no event shall the term of any ISO or an SAR granted in tandem therewith
      exceed a period of ten years from the date of its grant (or such shorter period
      as may be applicable under Section 422 of the Code).

    

         (c)
      Form of Payment Under Awards. Subject to the terms of the Plan and any
      applicable Award Agreement, payments to be made by the Company or a Subsidiary
      or Affiliate upon the grant, maturation, or exercise of an Award may be made
      in
      such forms as the Committee shall determine at the date of grant or thereafter,
      including, without limitation, cash, Shares, or other property, and may be
      made
      in a single payment or transfer, in installments, or on a deferred basis. The
      Committee may make rules relating to installment or deferred payments with
      respect to Awards, including the rate of interest to be credited with respect
      to
      such payments.

    

         (d)
      Nontransferability. Unless otherwise set forth by the Committee in an Award
      Agreement, Awards (except for vested shares) shall not be transferable by an
      Eligible Person except by will or the laws of descent and distribution (except
      pursuant to a Beneficiary designation) and shall be exercisable during the
      lifetime of an Eligible Person only by such Eligible Person or his guardian
      or
      legal representative. An Eligible Person's rights under the Plan may not be
      pledged, mortgaged, hypothecated, or otherwise encumbered, and shall not be
      subject to claims of the Eligible Person's creditors.

    

                      7.       General
      Provisions.

                               ------------------

    

         (a)
      Compliance with Legal and Trading Requirements. The Plan, the granting and
      exercising of Awards thereunder, and the other obligations of the Company under
      the Plan and any Award Agreement, shall be subject to all applicable federal
      and
      state laws, rules and regulations, and to such approvals by any regulatory
      or
      governmental agency as may be required. The Company, in its discretion, may
      postpone the issuance or delivery of Shares under any Award until completion
      of
      such stock exchange or market system listing or registration or qualification
      of
      such Shares or other required action under any state or federal law, rule or
      regulation as the Company may consider appropriate, and may require any
      Participant to make such representations and furnish such information as it
      may
      consider appropriate in connection with the issuance or delivery of Shares
      in
      compliance with applicable laws, rules and regulations. No provisions of the
      Plan shall be interpreted or construed to obligate the Company to register
      any
      Shares under federal or state law.

    

         (b)
      No Right to Continued Employment or Service. Neither the Plan nor any action
      taken thereunder shall be construed as giving any employee, consultant or
      director the right to be retained in the employ or service of the Company or
      any
      of its Subsidiaries or Affiliates, nor shall it interfere in any way with the
      right of the Company or any of its Subsidiaries or Affiliates to terminate
      any
      employee's, consultant's or director's employment or service at any
      time.

    

         (c)
      Taxes. The Company or any Subsidiary or Affiliate is authorized to withhold
      from
      any Award granted, any payment relating to an Award under the Plan, including
      from a distribution of Shares, or any payroll or other payment to an Eligible
      Person, amounts of withholding and other taxes due in connection with any
      transaction involving an Award, and to take such other action as the Committee
      may deem advisable to enable the Company and Eligible Persons to satisfy
      obligations for the payment of withholding taxes and other tax obligations
      relating to any Award. This authority shall include authority to withhold or
      receive Shares or other property and to make cash payments in respect thereof
      in
      satisfaction of an Eligible Person's tax obligations.

    

         (d)
      Changes to the Plan and Awards. The Board may amend, alter, suspend,
      discontinue, or terminate the Plan or the Committee's authority to grant Awards
      under the Plan without the consent of shareholders of the Company or
      Participants, except that any such amendment, alteration, suspension,
      discontinuation, or termination shall be subject to the approval of the
      Company's shareholders to the extent such shareholder approval is required
      under
      Section 422 of the Code; provided, however, that, without the consent of an
      affected Participant, no amendment, alteration, suspension, discontinuation,
      or
      termination of the Plan may materially and adversely affect the rights of such
      Participant under any Award theretofore granted to him or her. The Committee
      may
      waive any conditions or rights under, amend any terms of, or amend, alter,
      suspend, discontinue or terminate, any Award theretofore granted, prospectively
      or retrospectively; provided, however, that, without the consent of a
      Participant, no amendment, alteration, suspension, discontinuation or
      termination of any Award may materially and adversely affect the rights of
      such
      Participant under any Award theretofore granted to him or her.

    

         (e)
      No Rights to Awards; No Shareholder Rights. No Eligible Person or employee
      shall
      have any claim to be granted any Award under the Plan, and there is no
      obligation for uniformity of treatment of Eligible Persons and employees. No
      Award shall confer on any Eligible Person any of the rights of a shareholder
      of
      the Company unless and until Shares are duly issued or transferred to the
      Eligible Person in accordance with the terms of the Award.

    

         (f)
      Unfunded Status of Awards. The Plan is intended to constitute an "unfunded"
      plan
      for incentive compensation. With respect to any payments not yet made to a
      Participant pursuant to an Award, nothing contained in the Plan or any Award
      shall give any such Participant any rights that are greater than those of a
      general creditor of the Company; provided, however, that the Committee may
      authorize the creation of trusts or make other arrangements to meet the
      Company's obligations under the Plan to deliver cash, Shares, other Awards,
      or
      other property pursuant to any Award, which trusts or other arrangements shall
      be consistent with the "unfunded" status of the Plan unless the Committee
      otherwise determines with the consent of each affected Participant.

    

         (g)
      Nonexclusivity of the Plan. Neither the adoption of the Plan by the Board nor
      its submission to the shareholders of the Company for approval shall be
      construed as creating any limitations on the power of the Board to adopt such
      other incentive arrangements as it may deem desirable, including, without
      limitation, the granting of options and other awards otherwise than under the
      Plan, and such arrangements may be either applicable generally or only in
      specific cases.

    

         (h)
      Not Compensation for Benefit Plans. No Award payable under this Plan shall
      be
      deemed salary or compensation for the purpose of computing benefits under any
      benefit plan or other arrangement of the Company for the benefit of its
      employees, consultants or directors unless the Company shall determine
      otherwise.

    

         (i)
      No Fractional Shares. No fractional Shares shall be issued or delivered pursuant
      to the Plan or any Award. The Committee shall determine whether cash, other
      Awards, or other property shall be issued or paid in lieu of such fractional
      Shares or whether such fractional Shares or any rights thereto shall be
      forfeited or otherwise eliminated.

    

         (j)
      Governing Law. The validity, construction, and effect of the Plan, any rules
      and
      regulations relating to the Plan, and any Award Agreement shall be determined
      in
      accordance with the laws of Colorado without giving effect to principles of
      conflict of laws.

    

         (k)
      Effective Date; Plan Termination. The Plan shall become effective as of
      September 14, 1999 (the "Effective Date"). The Plan shall terminate as to future
      awards on the date which is ten (10) years after the Effective
      Date.

    

         (l)
      Titles and Headings. The titles and headings of the sections in the Plan are
      for
      convenience of reference only. In the event of any conflict, the text of the
      Plan, rather than such titles or headings, shall
      control.exhibit4_2.htm

    
      

    

    Exhibit
      4.2

     

    VAIL
      RESORTS, INC. AMENDED AND RESTATED

    2002
      LONG TERM INCENTIVE AND SHARE AWARD PLAN

     

    1.    Purposes.

     

    The
      purposes of the Amended and Restated 2002 Long Term Incentive and Share Award
      Plan are to advance the interests of Vail Resorts, Inc. and its shareholders
      by
      providing a means to attract, retain, and motivate employees, consultants and
      directors of the Company upon whose judgment, initiative and efforts the
      continued success, growth and development of the Company is
      dependent.

     

    2.    Definitions.

     

    For
      purposes of the Plan, the following terms shall be defined as set forth
      below:

     

    
      	
               

            	
              a.

            	
               

            	
              “Affiliate”
                means any entity other than the Company and its Subsidiaries that
                is
                designated by the Board or the Committee as a participating employer
                under
                the Plan; provided, however, that the Company directly or indirectly
                owns
                at least 20% of the combined voting power of all classes of stock
                of such
                entity or at least 20% of the ownership interests in such
                entity.

            

    

     

    
      	
               

            	
              b.

            	
               

            	
              “Award”
                means any Option, SAR, Restricted Share, Restricted Share Unit,
                Performance Share, Performance Unit, Performance Cash Award, Dividend
                Equivalent, or Other Share-Based Award granted to an Eligible Person
                under
                the Plan.

            

    

     

    
      	
               

            	
              c.

            	
               

            	
              “Award
                Agreement” means any written agreement, contract, or other instrument or
                document evidencing an Award.

            

    

     

    
      	
               

            	
              d.

            	
               

            	
              “Beneficiary”
                means the person, persons, trust or trusts which have been designated
                by
                an Eligible Person in his or her most recent written beneficiary
                designation filed with the Company to receive the benefits specified
                under
                this Plan upon the death of the Eligible Person, or, if there is
                no
                designated Beneficiary or surviving designated Beneficiary, then
                the
                person, persons, trust or trusts entitled by will or the laws of
                descent
                and distribution to receive such
                benefits.

            

    

     

    
      	
               

            	
              e.

            	
               

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

            

    

     

    
      	
               

            	
              f.

            	
               

            	
              “Code”
                means the Internal Revenue Code of 1986, as amended from time to
                time.
                References to any provision of the Code shall be deemed to include
                successor provisions thereto and regulations
                thereunder.

            

    

     

    
      	
               

            	
              g.

            	
               

            	
              “Committee”
                means the Compensation Committee of the Board or a subcommittee thereof,
                or such other Board committee (or if the Board so designates, the
                entire
                Board) as may be designated by the Board to administer the Plan;
                provided,
                however, that, unless otherwise determined by the Board, the Committee
                shall consist of two or more directors of the Company, each of whom
                is a
                “non-employee director” within the meaning of Rule 16b-3 under the
                Exchange Act, to the extent applicable, and each of whom is an “outside
                director” within the meaning of Section 162(m) of the Code, to the
                extent applicable; provided, further, that the mere fact that the
                Committee shall fail to qualify under either of the foregoing requirements
                shall not invalidate any Award made by the Committee which Award
                is
                otherwise validly made under the
                Plan.

            

    

     

    
      	
               

            	
              h.

            	
               

            	
              “Company”
                means Vail Resorts, Inc., a corporation organized under the laws
                of
                Delaware, or any successor
                corporation.

            

    

     

    
      	
               

            	
              i.

            	
               

            	
              “Director”
                means a member of the Board who is not an employee of the Company,
                a
                Subsidiary or an Affiliate.

            

    

     

    
      	
               

            	
              j.

            	
               

            	
              “Dividend
                Equivalent” means a right, granted under Section 5(g), to receive
                cash, Shares, or other property equal in value to dividends paid
                with
                respect to a specified number of Shares.
                Dividend

            

    

     

     

    
      	
               

            	
              Equivalents
                may be awarded on a free-standing basis or in connection with another
                Award, and may be paid currently or on a deferred
                basis.

            

    

     

    
      	
               

            	
              k.

            	
               

            	
              “Effective
                Date” means November, 6, 2006, the date the amendment and restatement of
                the Plan is approved by the Board.

            

    

     

    
      	
               

            	
              l.

            	
               

            	
              “Eligible
                Person” means (i) an employee or consultant of the Company, a
                Subsidiary or an Affiliate, including any director who is an employee,
                or
                (ii) a Director. Notwithstanding any provisions of this Plan to the
                contrary, an Award may be granted to an employee or consultant, in
                connection with his or her hiring or retention prior to the date
                the
                employee or consultant first performs services for the Company, a
                Subsidiary or an Affiliate; provided, however, that any such Award
                shall
                not become vested prior to the date the employee or consultant first
                performs such services.

            

    

     

    
      	
               

            	
              m.

            	
               

            	
              “Exchange
                Act” means the Securities Exchange Act of 1934, as amended from time to
                time. References to any provision of the Exchange Act shall be deemed
                to
                include successor provisions thereto and regulations
                thereunder.

            

    

     

    
      	
               

            	
              n.

            	
               

            	
              “Fair
                Market Value” means, with respect to Shares or other property, the fair
                market value of such Shares or other property determined by such
                methods
                or procedures as shall be established from time to time by the Committee.
                If the Shares are listed on any established stock exchange or a national
                market system, unless otherwise determined by the Committee in good
                faith,
                the Fair Market Value of Shares shall mean the closing price per
                Share on
                the date of grant or such other determination date (or, if the Shares
                were
                not traded on that day, the next preceding day that the Shares were
                traded) on the principal exchange or market system on which the Shares
                are
                traded (if there is more than one such exchange or market the Committee
                shall determine the appropriate exchange or market), as such prices
                are
                officially quoted on such exchange or
                market.

            

    

     

    
      	
               

            	
              o.

            	
               

            	
              “ISO”
                means any option intended to be and designated as an incentive stock
                option within the meaning of Section 422 of the
                Code.

            

    

     

    
      	
               

            	
              p.

            	
               

            	
              “NQSO”
                means any Option that is not an
                ISO.

            

    

     

    
      	
               

            	
              q.

            	
               

            	
              “Option”
                means a right granted under Section 5(b), to purchase
                Shares.

            

    

     

    
      	
               

            	
              r.

            	
               

            	
              “Other
                Share-Based Award” means a right, granted under Section 5(h), that
                relates to or is valued by reference to
                Shares.

            

    

     

    
      	
               

            	
              s.

            	
               

            	
              “Participant”
                means an Eligible Person who has been granted an Award under the
                Plan.

            

    

     

    
      	
               

            	
                  

            	
               

            	
              “Performance
                Cash Award” means a performance cash award granted under
                Section 5(f).

            

    

     

    
      	
               

            	
              t.

            	
               

            	
              “Performance
                Share” means a performance share granted under
                Section 5(f).

            

    

     

    
      	
               

            	
              u.

            	
               

            	
              “Performance
                Unit” means a performance unit granted under
                Section 5(f).

            

    

     

    
      	
               

            	
              v.

            	
               

            	
              “Plan”
                means this Amended and Restated 2002 Long Term Incentive and Share
                Award
                Plan.

            

    

     

    
      	
               

            	
              w.

            	
               

            	
              “Restricted
                Shares” means an Award of Shares under Section 5(d) that may be
                subject to certain restrictions and to a risk of
                forfeiture.

            

    

     

    
      	
               

            	
              x.

            	
               

            	
              “Restricted
                Share Unit” means a right, granted under Section 5(e), to receive
                Shares or cash at the end of a specified deferral
                period.

            

    

     

    
      	
               

            	
              y.

            	
               

            	
              “Rule
                16b-3” means Rule 16b-3, as from time to time in effect and applicable to
                the Plan and Participants, promulgated by the Securities and Exchange
                Commission under Section 16 of the Exchange
                Act.

            

    

     

    
      	
               

            	
              z.

            	
               

            	
              “SAR”
                or “Share Appreciation Right” means the right, granted under
                Section 5(c), to be paid an amount measured by the difference between
                the exercise price of the right and the Fair Market Value of Shares
                on the
                date of exercise of the right, with payment to be made in cash, Shares,
                or
                property as specified in the Award or determined by the
                Committee.

            

    

     

     

    
      	
               

            	
              aa.

            	
               

            	
              “Shares”
                means common stock, $.01 par value per share, of the
                Company.

            

    

     

    
      	
               

            	
              bb.

            	
               

            	
              “Subsidiary”
                means any corporation (other than the Company) in an unbroken chain
                of
                corporations beginning with the Company if each of the corporations
                (other
                than the last corporation in the unbroken chain) owns shares possessing
                50% or more of the total combined voting power of all classes of
                stock in
                one of the other corporations in the
                chain.

            

    

     

    3.    Administration.

     

    
      	
               

            	
              a.

            	
               

            	
              Authority
                of the Committee.    The Plan shall be
                administered by the Committee, and the Committee shall have full
                and final
                authority to take the following actions, in each case subject to
                and
                consistent with the provisions of the
                Plan:

            

    

     

    
      	
               

            	
              i.

            	
               

            	
              to
                select Eligible Persons to whom Awards may be
                granted;

            

    

     

    
      	
               

            	
              ii.

            	
               

            	
              to
                designate Affiliates;

            

    

     

    
      	
               

            	
              iii.

            	
               

            	
              to
                determine the type or types of Awards to be granted to each Eligible
                Person;

            

    

     

    
      	
               

            	
              iv.

            	
               

            	
              to
                determine the type and number of Awards to be granted, the number
                of
                Shares to which an Award may relate, the terms and conditions of
                any Award
                granted under the Plan (including, but not limited to, any exercise
                price,
                grant price, or purchase price, and any bases for adjusting such
                exercise,
                grant or purchase price, any restriction or condition, any schedule
                for
                lapse of restrictions or conditions relating to transferability or
                forfeiture, exercisability, or settlement of an Award, and waiver
                or
                accelerations thereof, and waivers of performance conditions relating
                to
                an Award, based in each case on such considerations as the Committee
                shall
                determine), and all other matters to be determined in connection
                with an
                Award;

            

    

     

    
      	
               

            	
              v.

            	
               

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

            

    

     

    
      	
               

            	
              vi.

            	
               

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

            

    

     

    
      	
               

            	
              vii.

            	
               

            	
              to
                prescribe the form of each Award Agreement, which need not be identical
                for each Eligible Person;

            

    

     

    
      	
               

            	
              viii.

            	
               

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

            

    

     

    
      	
               

            	
              ix.

            	
               

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

            

    

     

    
      	
               

            	
              x.

            	
               

            	
              to
                accelerate the exercisability or vesting of all or any portion of
                any
                Award or to extend the period during which an Award is exercisable;
                and

            

    

     

    
      	
               

            	
              xi.

            	
               

            	
              to
                make all other decisions and determinations as may be required under
                the
                terms of the Plan or as the Committee may deem necessary or advisable
                for
                the administration of the Plan.

            

    

     

    
      	
               

            	
              b.

            	
               

            	
              Manner
                of Exercise of Committee Authority.    The
                Committee shall have sole discretion in exercising its authority
                under the
                Plan. Any action of the Committee with respect to the Plan shall
                be final,
                conclusive, and binding on all persons, including the Company,
                Subsidiaries, Affiliates, Eligible Persons, any person claiming any
                rights
                under the Plan from or through any Eligible Person, and shareholders.
                The
                express grant of any specific power to the Committee, and the taking
                of
                any action by the Committee, shall not be construed as limiting any
                power
                or authority of the Committee. The Committee may delegate to other
                members
                of the Board or officers or managers of the Company or
                any

            

    

    
      	
               

            	
              Subsidiary
                or Affiliate the authority, subject to such terms as the Committee
                shall
                determine, to perform administrative functions and, with respect
                to Awards
                granted to persons not subject to Section 16 of the Exchange Act, to
                perform such other functions as the Committee may determine, to the
                extent
                permitted under Rule 16b-3 (if applicable) and applicable
                law.

            

    

     

    
      	
               

            	
              c.

            	
               

            	
              Limitation
                of Liability.    Each member of the Committee
                shall be entitled to, in good faith, rely or act upon any report
                or other
                information furnished to him or her by any officer or other employee
                of
                the Company or any Subsidiary or Affiliate, the Company’s independent
                certified public accountants, or other professional retained by the
                Company to assist in the administration of the Plan. No member of
                the
                Committee, and no officer or employee of the Company acting on behalf
                of
                the Committee, shall be personally liable for any action, determination,
                or interpretation taken or made in good faith with respect to the
                Plan,
                and all members of the Committee and any officer or employee of the
                Company acting on their behalf shall, to the extent permitted by
                law, be
                fully indemnified and protected by the Company with respect to any
                such
                action, determination, or
                interpretation.

            

    

     

    
      	
               

            	
              d.

            	
               

            	
              Limitation
                on Committee’s Discretion.    Anything in this
                Plan to the contrary notwithstanding, in the case of any Award which
                is
                intended to qualify as “performance-based compensation” within the meaning
                of Section 162(m)(4)(C) of the Code, if the Award Agreement so
                provides, the Committee shall have no discretion to increase the
                amount of
                compensation payable under the Award to the extent such an increase
                would
                cause the Award to lose its qualification as such performance-based
                compensation.

            

    

     

    
      	
               

            	
              e.

            	
               

            	
              No
                Option or SAR Repricing Without Shareholder
                Approval.    Except as provided in the first
                sentence of Section 4(d) hereof relating to certain antidilution
                adjustments, unless the approval of shareholders of the Company is
                obtained, Options and SARs issued under the Plan shall not be amended
                to
                lower their exercise price and Options and SARs issued under the
                Plan will
                not be exchanged for other Options or SARs with lower exercise
                prices.

            

    

     

    4.    Shares
      Subject to the Plan.

     

    
      	
               

            	
              a.

            	
               

            	
              Subject
                to adjustment as provided in Section 4(d) hereof, the total number of
                Shares reserved for issuance in connection with Awards under the
                Plan
                shall be 5,000,000; provided, however, that such number shall be
                increased
                by (i) the number of Shares available for issuance under the
                Company’s 1999 Long Term Incentive and Share Award Plan as of the
                Effective Date and (ii) the number of Shares, if any, that are
                subject to awards issued under the Company’s 1999 Long Term Incentive and
                Share Award Plan that are forfeited, canceled, terminated or surrendered
                on or after the Effective Date. All Shares issuable under the Plan
                may be
                issued as ISOs. Shares issued or to be issued under the Plan shall
                be
                authorized but unissued shares or, to the extent permitted by applicable
                law, issued shares that have been reacquired by the Company. No Award
                may
                be granted if the number of Shares to which such Award relates, when
                added
                to the number of Shares previously issued under the Plan, exceeds
                the
                number of Shares reserved under the preceding sentence. If any Awards
                are
                forfeited, canceled, terminated, exchanged or surrendered or such
                Award is
                settled in cash or otherwise terminates without a distribution of
                Shares
                to the Participant, any Shares counted against the number of Shares
                reserved and available under the Plan with respect to such Award
                shall, to
                the extent of any such forfeiture, settlement, termination, cancellation,
                exchange or surrender, again be available for Awards under the Plan.
                Upon
                the exercise of any Award granted in tandem with any other Awards,
                such
                related Awards shall be canceled to the extent of the number of Shares
                as
                to which the Award is exercised.

            

    

     

    
      	
               

            	
              b.

            	
               

            	
              The
                Committee shall have the right to substitute or assume Awards in
                connection with mergers, reorganizations, separations, or other
                transactions to which Code Section 424(a) applies. The number of
                Shares reserved pursuant to Section 4(a) may be increased by the
                corresponding number of Awards assumed and, in the case of a substitution,
                by the net increase in the number of Shares subject to Awards before
                and
                after the substitution.

            

    

     

    
      	
               

            	
              c.

            	
               

            	
              Subject
                to adjustment as provided in Section 4(d) hereof, the maximum number
                of Shares (i) with respect to which Options or SARs may be granted
                during a calendar year to any Eligible Person under this Plan shall
                be
                1,000,000 Shares, and (ii) with respect to Performance Shares,
                Performance Units, Restricted Shares or Restricted Share Units intended
                to
                qualify as performance-based compensation within the meaning of
                Section 162(m)(4)(C) of the Code shall be the equivalent of 200,000
                Shares during a calendar year to any Eligible Person under this
                Plan.

            

    

     

    
      	
               

            	
              d.

            	
               

            	
              In
                the event that the Committee shall determine that any dividend in
                Shares,
                recapitalization, Share split, reverse split, reorganization, merger,
                consolidation, spin-off, combination, repurchase, or share exchange,
                or
                other similar corporate transaction or event, affects the Shares
                such that
                an adjustment is appropriate in order to prevent dilution or enlargement
                of the rights of Eligible Persons under the Plan, then the Committee
                shall
                make such equitable changes or adjustments as it deems appropriate
                and, in
                such manner as it may deem equitable, adjust any or all of (i) the
                number and kind of shares which may thereafter be issued under the
                Plan,
                (ii) the number and kind of shares, other securities or other
                consideration issued or issuable in respect of outstanding Awards,
                and
                (iii) the exercise price, grant price, or purchase price relating to
                any Award; provided, however, in each case that, with respect to
                ISOs,
                such adjustment shall be made in accordance with Section 424(a) of
                the Code, unless the Committee determines otherwise. In addition,
                the
                Committee is authorized to make adjustments in the terms and conditions
                of, and the criteria and performance objectives included in, Awards
                in
                recognition of unusual or non-recurring events (including, without
                limitation, events described in the preceding sentence) affecting
                the
                Company or any Subsidiary or Affiliate or the financial statements
                of the
                Company or any Subsidiary or Affiliate, or in response to changes
                in
                applicable laws, regulations, or accounting principles; provided,
                however,
                that, if an Award Agreement specifically so provides, the Committee
                shall
                not have discretion to increase the amount of compensation payable
                under
                the Award to the extent such an increase would cause the Award to
                lose its
                qualification as performance-based compensation for purposes of
                Section 162(m)(4)(C) of the Code and the regulations
                thereunder.

            

    

     

    
      	
               

            	
              e.

            	
               

            	
              Any
                Shares distributed pursuant to an Award may consist, in whole or
                in part,
                of authorized and unissued Shares or treasury Shares including Shares
                acquired by purchase in the open market or in private
                transactions.

            

    

     

    5.    Specific
      Terms of Awards.

     

    
      	
               

            	
              a.

            	
               

            	
              General.    Awards
                may be granted on the terms and conditions set forth in this
                Section 5. In addition, the Committee may impose on any Award or the
                exercise thereof, at the date of grant or thereafter (subject to
                Section 7(d)), such additional terms and conditions, not inconsistent
                with the provisions of the Plan, as the Committee shall determine,
                including terms regarding forfeiture of Awards or continued exercisability
                of Awards in the event of termination of service by the Eligible
                Person.

            

    

     

    
      	
               

            	
              b.

            	
               

            	
              Options.    The
                Committee is authorized to grant Options, which may be NQSOs or ISOs,
                to
                Eligible Persons on the following terms and
                conditions:

            

    

     

    
      	
               

            	
              i.

            	
               

            	
              Exercise
                Price.    The exercise price per Share
                purchasable under an Option shall be determined by the Committee;
                provided, however, that the exercise price per Share of an Option
                shall
                not be less than the Fair Market Value of a Share on the date of
                grant of
                the Option. The Committee may, without limitation, set an exercise
                price
                that is based upon achievement of performance criteria if deemed
                appropriate by the Committee.

            

    

     

    
      	
               

            	
              ii.

            	
               

            	
              Option
                Term.    The term of each Option shall be
                determined by the Committee; provided, however, that such term shall
                not
                be longer than ten years from the date of grant of the
                Option.

            

    

     

    
      	
               

            	
              iii.

            	
               

            	
              Time
                and Method of Exercise.    The Committee shall
                determine at the date of grant or thereafter the time or times at
                which an
                Option may be exercised in whole or in part (including, without
                limitation, upon achievement of performance criteria if deemed appropriate
                by the Committee), the methods by which such exercise price may be
                paid or
                deemed to be paid (including, without

            

    

    
      	
               

            	
              limitation,
                broker-assisted exercise arrangements), the form of such payment
                (including, without limitation, cash, Shares, notes or other property),
                and the methods by which Shares will be delivered or deemed to be
                delivered to Eligible Persons; provided, however, that in no event
                may any
                portion of the exercise price be paid with Shares acquired either
                under an
                Award granted pursuant to this Plan, upon exercise of a stock option
                granted under another Company plan or as a stock bonus or other stock
                award granted under another Company plan unless, in any such case,
                the
                Shares were acquired and vested more than six months in advance of
                the
                date of exercise.

            

    

     

    
      	
               

            	
              iv.

            	
               

            	
              ISOs.    The
                terms of any ISO granted under the Plan shall comply in all respects
                with
                the provisions of Section 422 of the Code, including but not limited
                to the requirement that the ISO shall be granted within ten years
                from the
                earlier of the date of adoption or shareholder approval of the Plan.
                ISOs
                may only be granted to employees of the Company or a
                Subsidiary.

            

    

     

    
      	
               

            	
              c.

            	
               

            	
              SARs.    The
                Committee is authorized to grant SARs (Share Appreciation Rights)
                to
                Eligible Persons on the following terms and
                conditions:

            

    

     

    
      	
               

            	
              i.

            	
               

            	
              Right
                to Payment.    An SAR shall confer on the
                Eligible Person to whom it is granted a right to receive with respect
                to
                each Share subject thereto, upon exercise thereof, the excess of
                (1) the Fair Market Value of one Share on the date of exercise (or,
                if the Committee shall so determine in the case of any such right,
                the
                Fair Market Value of one Share at any time during a specified period
                before or after the date of exercise) over (2) the exercise price of
                the SAR as determined by the Committee as of the date of grant of
                the SAR
                (which shall not be less than the Fair Market Value per Share on
                the date
                of grant of the SAR and, in the case of a SAR granted in tandem with
                an
                Option, shall be equal to the exercise price of the underlying
                Option).

            

    

     

    
      	
               

            	
              ii.

            	
               

            	
              Other
                Terms.    The Committee shall determine, at the
                time of grant or thereafter, the time or times at which an SAR may
                be
                exercised in whole or in part (which shall not be more than ten years
                after the date of grant of the SAR), the method of exercise, method
                of
                settlement, form of consideration payable in settlement, method by
                which
                Shares will be delivered or deemed to be delivered to Eligible Persons,
                whether or not an SAR shall be in tandem with any other Award, and
                any
                other terms and conditions of any SAR. Unless the Committee determines
                otherwise, an SAR (1) granted in tandem with an NQSO may be granted
                at the time of grant of the related NQSO or at any time thereafter
                and
                (2) granted in tandem with an ISO may only be granted at the time of
                grant of the related ISO.

            

    

     

    
      	
               

            	
              d.

            	
               

            	
              Restricted
                Shares.    The Committee is authorized to grant
                Restricted Shares to Eligible Persons on the following terms and
                conditions:

            

    

     

    
      	
               

            	
              i.

            	
               

            	
              Issuance
                and Restrictions.    Restricted Shares shall be
                subject to such restrictions on transferability and other restrictions,
                if
                any, as the Committee may impose at the date of grant or thereafter,
                which
                restrictions may lapse separately or in combination at such times,
                under
                such circumstances (including, without limitation, upon achievement
                of
                performance criteria if deemed appropriate by the Committee), in
                such
                installments, or otherwise, as the Committee may determine. Except
                to the
                extent restricted under the Award Agreement relating to the Restricted
                Shares, an Eligible Person granted Restricted Shares shall have all
                of the
                rights of a shareholder including, without limitation, the right
                to vote
                Restricted Shares and the right to receive dividends thereon. If
                the lapse
                of restrictions is conditioned on the achievement of performance
                criteria,
                the Committee shall select the criterion or criteria from the list
                of
                criteria set forth in Section 5(f)(i). The Committee must certify in
                writing prior to the lapse of restrictions conditioned on achievement
                of
                performance criteria that such performance criteria were in fact
                satisfied.

            

    

     

    
      	
               

            	
              ii.

            	
               

            	
              Forfeiture.    Except
                as otherwise determined by the Committee, at the date of grant or
                thereafter, upon termination of service during the applicable restriction
                period, Restricted Shares and any accrued but unpaid dividends or
                Dividend
                Equivalents that are at that time subject to restrictions shall be
                forfeited; provided, however, that the Committee may provide, by
                rule or
                regulation or in any Award Agreement, or may determine in any individual
                case, that restrictions or
                forfeiture

            

    

     

     

     

    
      	
               

            	
              conditions
                relating to Restricted Shares will be waived in whole or in part
                in the
                event of terminations resulting from specified causes, and the Committee
                may in other cases waive in whole or in part the forfeiture of Restricted
                Shares.

            

    

     

    
      	
               

            	
              iii.

            	
               

            	
              Certificates
                for Shares.    Restricted Shares granted under
                the Plan may be evidenced in such manner as the Committee shall determine.
                If certificates representing Restricted Shares are registered in
                the name
                of the Eligible Person, such certificates shall bear an appropriate
                legend
                referring to the terms, conditions, and restrictions applicable to
                such
                Restricted Shares, and the Company shall retain physical possession
                of the
                certificate.

            

    

     

    
      	
               

            	
              iv.

            	
               

            	
              Dividends.    Dividends
                paid on Restricted Shares shall be either paid at the dividend payment
                date, or deferred for payment to such date as determined by the Committee,
                in cash or in unrestricted Shares having a Fair Market Value equal
                to the
                amount of such dividends. Shares distributed in connection with a
                Share
                split or dividend in Shares, and other property distributed as a
                dividend,
                shall be subject to restrictions and a risk of forfeiture to the
                same
                extent as the Restricted Shares with respect to which such Shares
                or other
                property has been distributed.

            

    

     

    
      	
               

            	
              e.

            	
               

            	
              Restricted
                Share Units.    The Committee is authorized to
                grant Restricted Share Units to Eligible Persons, subject to the
                following
                terms and conditions:

            

    

     

    
      	
               

            	
              i.

            	
               

            	
              Award
                and Restrictions.    Delivery of Shares or cash,
                as the case may be, will occur upon expiration of the deferral period
                specified for Restricted Share Units by the Committee (or, if permitted
                by
                the Committee, as elected by the Eligible Person). In addition, Restricted
                Share Units shall be subject to such restrictions as the Committee
                may
                impose, if any (including, without limitation, the achievement of
                performance criteria if deemed appropriate by the Committee), at
                the date
                of grant or thereafter, which restrictions may lapse at the expiration
                of
                the deferral period or at earlier or later specified times, separately
                or
                in combination, in installments or otherwise, as the Committee may
                determine. If the lapse of restrictions is conditioned on the achievement
                of performance criteria, the Committee shall select the criterion
                or
                criteria from the list of criteria set forth in Section 5(f)(i). The
                Committee must certify in writing prior to the lapse of restrictions
                conditioned on the achievement of performance criteria that such
                performance criteria were in fact
                satisfied.

            

    

     

    
      	
               

            	
              ii.

            	
               

            	
              Forfeiture.    Except
                as otherwise determined by the Committee at date of grant or thereafter,
                upon termination of service (as determined under criteria established
                by
                the Committee) during the applicable deferral period or portion thereof
                to
                which forfeiture conditions apply (as provided in the Award Agreement
                evidencing the Restricted Share Units), or upon failure to satisfy
                any
                other conditions precedent to the delivery of Shares or cash to which
                such
                Restricted Share Units relate, all Restricted Share Units that are
                at that
                time subject to deferral or restriction shall be forfeited; provided,
                however, that the Committee may provide, by rule or regulation or
                in any
                Award Agreement, or may determine in any individual case, that
                restrictions or forfeiture conditions relating to Restricted Share
                Units
                will be waived in whole or in part in the event of termination resulting
                from specified causes, and the Committee may in other cases waive
                in whole
                or in part the forfeiture of Restricted Share
                Units.

            

    

     

    
      	
               

            	
              f.

            	
               

            	
              Performance
                Shares, Performance Units and Performance Cash
                Awards.    The Committee is authorized to grant
                Performance Shares, Performance Units, and Performance Cash Awards
                to
                Eligible Persons on the following terms and
                conditions:

            

    

     

    
      	
               

            	
              i.

            	
               

            	
              Performance
                Period.    The Committee shall determine a
                performance period (the “Performance Period”) of one or more years and
                shall determine the performance objectives for grants of Performance
                Shares, Performance Units and Performance Cash Awards. Performance
                objectives may vary from Eligible Person to Eligible Person and shall
                be
                based upon one or more of the following performance criteria as the
                Committee may deem appropriate: appreciation in value of the Shares,
                total
                shareholder return, earnings per share, operating income, net income,
                pretax earnings, pretax earnings before interest, depreciation and
                amortization, pro forma net income,

            

    

     

     

     

    
      	
               

            	
              return
                on equity, return on designated assets, return on capital, economic
                value
                added, earnings, revenues, expenses, operating profit margin, operating
                cash flow, net profit margin, free cash flow, cash flow return on
                investment, and operating margin. The performance objectives may
                be
                determined by reference to the performance of the Company, or of
                a
                Subsidiary or Affiliate, or of a division or unit of any of the foregoing.
                Performance Periods may overlap and Eligible Persons may participate
                simultaneously with respect to Performance Shares, Performance Units
                and
                Performance Cash Awards for which different Performance Periods are
                prescribed.

            

    

     

    
      	
               

            	
              ii.

            	
               

            	
              Award
                Value.    At the beginning of a Performance
                Period, the Committee shall determine for each Eligible Person or
                group of
                Eligible Persons with respect to that Performance Period (A) the
                range of number of Shares, if any, in the case of Performance Shares,
                (B) the range of dollar values, if any, in the case of Performance
                Units, or (C) the range of cash awards in the case of Performance
                Cash Awards which may be fixed or may vary in accordance with such
                performance or other criteria specified by the Committee, which shall
                be
                paid to an Eligible Person as an Award if the relevant measure of
                Company
                performance for the Performance Period is met. The Committee must
                certify
                in writing that the applicable performance criteria were satisfied
                prior
                to payment under any Performance Shares, Performance Units or Performance
                Cash Awards.

            

    

     

    
      	
               

            	
              iii.

            	
               

            	
              Significant
                Events.    If during the course of a Performance
                Period there shall occur significant events as determined by the
                Committee
                which the Committee expects to have a substantial effect on a performance
                objective during such period, the Committee may revise such objective;
                provided, however, that, if an Award Agreement so provides, the Committee
                shall not have any discretion to increase the amount of compensation
                payable under the Award to the extent such an increase would cause
                the
                Award to lose its qualification as performance-based compensation
                for
                purposes of Section 162(m)(4)(C) of the Code and the regulations
                thereunder.

            

    

     

    
      	
               

            	
              iv.

            	
               

            	
              Forfeiture.    Except
                as otherwise determined by the Committee, at the date of grant or
                thereafter, upon termination of service during the applicable Performance
                Period, Performance Shares, Performance Units and Performance Cash
                Awards
                for which the Performance Period was prescribed shall be forfeited;
                provided, however, that the Committee may provide, by rule or regulation
                or in any Award Agreement, or may determine in an individual case,
                that
                restrictions or forfeiture conditions relating to Performance Shares,
                Performance Units and Performance Cash Awards will be waived in whole
                or
                in part in the event of terminations resulting from specified causes,
                and
                the Committee may in other cases waive in whole or in part the forfeiture
                of Performance Shares, Performance Units and Performance Cash
                Awards.

            

    

     

    
      	
               

            	
              v.

            	
               

            	
              Payment.    Each
                Performance Share or Performance Unit may be paid in whole Shares,
                or
                cash, or a combination of Shares and cash either as a lump sum payment
                or
                in installments, all as the Committee shall determine, at the time
                of
                grant of the Performance Share or Performance Unit or otherwise,
                commencing as soon as practicable after the end of the relevant
                Performance Period. Each Performance Cash Award shall be paid in
                cash,
                commencing as soon as practicable after the end of the relevant
                Performance Period. The Committee must certify in writing prior to
                the
                payment of any Performance Share, Performance Unit or Performance
                Cash
                Awards that the performance objectives and any other material terms
                were
                in fact satisfied.

            

    

     

    
      	
               

            	
              g.

            	
               

            	
              Dividend
                Equivalents.    The Committee is authorized to
                grant Dividend Equivalents to Eligible Persons. The Committee may
                provide,
                at the date of grant or thereafter, that Dividend Equivalents shall
                be
                paid or distributed when accrued or shall be deemed to have been
                reinvested in additional Shares, or other investment vehicles as
                the
                Committee may specify; provided, however, that Dividend Equivalents
                (other
                than freestanding Dividend Equivalents) shall be subject to all conditions
                and restrictions of the underlying Awards to which they
                relate.

            

    

     

    
      	
               

            	
              h.

            	
               

            	
              Other
                Share-Based Awards.    The Committee is
                authorized, subject to limitations under applicable law, to grant
                to
                Eligible Persons such other Awards that may be denominated or payable
                in,
                valued in whole or in part by reference to, or otherwise based on,
                or
                related to, Shares, as deemed by
                the

            

    

     

     

     

    
      	
               

            	
              Committee
                to be consistent with the purposes of the Plan, including, without
                limitation, unrestricted shares awarded purely as a “bonus” and not
                subject to any restrictions or conditions, other rights convertible
                or
                exchangeable into Shares, purchase rights for Shares, Awards with
                value
                and payment contingent upon performance of the Company or any other
                factors designated by the Committee, and Awards valued by reference
                to the
                performance of specified Subsidiaries or Affiliates. The Committee
                shall
                determine the terms and conditions of such Awards at date of grant
                or
                thereafter. Shares delivered pursuant to an Award in the nature of
                a
                purchase right granted under this Section 5(h) shall be purchased for
                such consideration, paid for at such times, by such methods, and
                in such
                forms, including, without limitation, cash, Shares, notes or other
                property, as the Committee shall determine. Cash awards, as an element
                of
                or supplement to any other Award under the Plan, shall also be authorized
                pursuant to this Section 5(h).

            

    

     

    6.    Certain
      Provisions Applicable to Awards.

     

    
      	
               

            	
              a.

            	
               

            	
              Stand-Alone,
                Additional, Tandem and Substitute
                Awards.    Awards granted under the Plan may, in
                the discretion of the Committee, be granted to Eligible Persons either
                alone or in addition to, in tandem with, or in exchange or substitution
                for, any other Award granted under the Plan or any award granted
                under any
                other plan or agreement of the Company, any Subsidiary or Affiliate,
                or
                any business entity to be acquired by the Company or a Subsidiary
                or
                Affiliate, or any other right of an Eligible Person to receive payment
                from the Company or any Subsidiary or Affiliate. Awards may be granted
                in
                addition to or in tandem with such other Awards or awards, and may
                be
                granted either as of the same time as or a different time from the
                grant
                of such other Awards or awards. Subject to the provisions of
                Section 3(e) hereof prohibiting Option and SAR repricing without
                shareholder approval, the per Share exercise price of any Option,
                grant
                price of any SAR, or purchase price of any other Award conferring
                a right
                to purchase Shares which is granted, in connection with the substitution
                of awards granted under any other plan or agreement of the Company
                or any
                Subsidiary or Affiliate or any business entity to be acquired by
                the
                Company or any Subsidiary or Affiliate, shall be determined by the
                Committee, in its discretion.

            

    

     

    
      	
               

            	
              b.

            	
               

            	
              Terms
                of Awards.    The term of each Award granted to
                an Eligible Person shall be for such period as may be determined
                by the
                Committee; provided, however, that in no event shall the term of
                any
                Option or an SAR granted in tandem therewith exceed a period of ten
                years
                from the date of its grant (or such shorter period as may be applicable
                under Section 422 of the
                Code).

            

    

     

    
      	
               

            	
              c.

            	
               

            	
              Form
                of Payment Under Awards.    Subject to the terms
                of the Plan and any applicable Award Agreement, payments to be made
                by the
                Company or a Subsidiary or Affiliate upon the grant, maturation,
                or
                exercise of an Award may be made in such forms as the Committee shall
                determine at the date of grant or thereafter, including, without
                limitation, cash, Shares, or other property, and may be made in a
                single
                payment or transfer, in installments, or on a deferred basis. The
                Committee may make rules relating to installment or deferred payments
                with
                respect to Awards, including the rate of interest to be credited
                with
                respect to such payments, and the Committee may require deferral
                of
                payment under an Award if, in the sole judgment of the Committee,
                it may
                be necessary in order to avoid nondeductibility of the payment under
                Section 162(m) of the Code.

            

    

     

    
      	
               

            	
              d.

            	
               

            	
              Nontransferability.    Unless
                otherwise set forth by the Committee in an Award Agreement, Awards
                (except
                for vested shares) shall not be transferable by an Eligible Person
                except
                by will or the laws of descent and distribution (except pursuant
                to a
                Beneficiary designation) and shall be exercisable during the lifetime
                of
                an Eligible Person only by such Eligible Person or his guardian or
                legal
                representative. An Eligible Person’s rights under the Plan may not be
                pledged, mortgaged, hypothecated, or otherwise encumbered, and shall
                not
                be subject to claims of the Eligible Person’s
                creditors.

            

    

     

    
      	
               

            	
              e.

            	
               

            	
              Noncompetition.    The
                Committee may, by way of the Award Agreements or otherwise, establish
                such
                other terms, conditions, restrictions and/or limitations, if any,
                of any
                Award, provided they are not inconsistent with the Plan, including,
                without limitation, the requirement that the Participant not engage
                in
                competition with the Company.

            

    

     

     

     

    7.    General
      Provisions.

     

    
      	
               

            	
              a.

            	
               

            	
              Compliance
                with Legal and Trading Requirements.    The Plan,
                the granting and exercising of Awards thereunder, and the other
                obligations of the Company under the Plan and any Award Agreement,
                shall
                be subject to all applicable federal and state laws, rules and
                regulations, and to such approvals by any regulatory or governmental
                agency as may be required. The Company, in its discretion, may postpone
                the issuance or delivery of Shares under any Award until completion
                of
                such stock exchange or market system listing or registration or
                qualification of such Shares or other required action under any state
                or
                federal law, rule or regulation as the Company may consider appropriate,
                and may require any Participant to make such representations and
                furnish
                such information as it may consider appropriate in connection with
                the
                issuance or delivery of Shares in compliance with applicable laws,
                rules
                and regulations. No provisions of the Plan shall be interpreted or
                construed to obligate the Company to register any Shares under federal
                or
                state law. The Shares issued under the Plan may be subject to such
                other
                restrictions on transfer as determined by the
                Committee.

            

    

     

    
      	
               

            	
              b.

            	
               

            	
              No
                Right to Continued Employment or
                Service.    Neither the Plan nor any action taken
                thereunder shall be construed as giving any employee, consultant
                or
                director the right to be retained in the employ or service of the
                Company
                or any of its Subsidiaries or Affiliates, nor shall it interfere
                in any
                way with the right of the Company or any of its Subsidiaries or Affiliates
                to terminate any employee’s, consultant’s or director’s employment or
                service at any time.

            

    

     

    
      	
               

            	
              c.

            	
               

            	
              Taxes.    The
                Company or any Subsidiary or Affiliate is authorized to withhold
                from any
                Award granted, any payment relating to an Award under the Plan, including
                from a distribution of Shares, or any payroll or other payment to
                an
                Eligible Person, amounts of withholding and other taxes due in connection
                with any transaction involving an Award, and to take such other action
                as
                the Committee may deem advisable to enable the Company and Eligible
                Persons to satisfy obligations for the payment of withholding taxes
                and
                other tax obligations relating to any Award. This authority shall
                include
                authority to withhold or receive Shares or other property and to
                make cash
                payments in respect thereof in satisfaction of an Eligible Person’s tax
                obligations.

            

    

     

    
      	
               

            	
              d.

            	
               

            	
              Changes
                to the Plan and Awards.    The Board may amend,
                alter, suspend, discontinue, or terminate the Plan or the Committee’s
                authority to grant Awards under the Plan without the consent of
                shareholders of the Company or Participants, except that any such
                amendment or alteration as it applies to ISOs shall be subject to
                the
                approval of the Company’s shareholders to the extent such shareholder
                approval is required under Section 422 of the Code; provided,
                however, that, without the consent of an affected Participant, no
                amendment, alteration, suspension, discontinuation, or termination
                of the
                Plan may materially and adversely affect the rights of such Participant
                under any Award theretofore granted to him or her. The Committee
                may waive
                any conditions or rights under, amend any terms of, or amend, alter,
                suspend, discontinue or terminate, any Award theretofore granted,
                prospectively or retrospectively; provided, however, that, without
                the
                consent of a Participant, no amendment, alteration, suspension,
                discontinuation or termination of any Award may materially and, adversely
                affect the rights of such Participant under any Award theretofore
                granted
                to him or her.

            

    

     

    
      	
               

            	
              e.

            	
               

            	
              No
                Rights to Awards; No Shareholder Rights.    No
                Eligible Person or employee shall have any claim to be granted any
                Award
                under the Plan, and there is no obligation for uniformity of treatment
                of
                Eligible Persons and employees. No Award shall confer on any Eligible
                Person any of the rights of a shareholder of the Company unless and
                until
                Shares are duly issued or transferred to the Eligible Person in accordance
                with the terms of the Award.

            

    

     

    
      	
               

            	
              f.

            	
               

            	
              Unfunded
                Status of Awards.    The Plan is intended to
                constitute an “unfunded” plan for incentive compensation. With respect to
                any payments not yet made to a Participant pursuant to an Award,
                nothing
                contained in the Plan or any Award shall give any such Participant
                any
                rights that are greater than those of a general creditor of the Company;
                provided, however, that the Committee may authorize the creation
                of trusts
                or make other arrangements to meet the Company’s obligations under the
                Plan to deliver cash, Shares, other Awards, or other property pursuant
                to
                any Award, which trusts or other

            

    

    
      	
               

            	
              arrangements
                shall be consistent with the “unfunded” status of the Plan unless the
                Committee otherwise determines with the consent of each affected
                Participant.

            

    

     

    
      	
               

            	
              g.

            	
               

            	
              Nonexclusivity
                of the Plan.    Neither the adoption of the Plan
                by the Board nor its submission to the shareholders of the Company
                for
                approval shall be construed as creating any limitations on the power
                of
                the Board to adopt such other incentive arrangements as it may deem
                desirable, including, without limitation, the granting of options
                and
                other awards otherwise than under the Plan, and such arrangements
                may be
                either applicable generally or only in specific
                cases.

            

    

     

    
      	
               

            	
              h.

            	
               

            	
              Not
                Compensation for Benefit Plans.    No Award
                payable under this Plan shall be deemed salary or compensation for
                the
                purpose of computing benefits under any benefit plan or other arrangement
                of the Company for the benefit of its employees, consultants or directors
                unless the Company shall determine
                otherwise.

            

    

     

    
      	
               

            	
              i.

            	
               

            	
              No
                Fractional Shares.    No fractional Shares shall
                be issued or delivered pursuant to the Plan or any Award. The Committee
                shall determine whether cash, other Awards, or other property shall
                be
                issued or paid in lieu of such fractional Shares or whether such
                fractional Shares or any rights thereto shall be forfeited or otherwise
                eliminated.

            

    

     

    
      	
               

            	
              j.

            	
               

            	
              Governing
                Law.    The validity, construction, and effect of
                the Plan, any rules and regulations relating to the Plan, and any
                Award
                Agreement shall be determined in accordance with the laws of Colorado
                without giving effect to principles of conflict of
                laws.

            

    

     

    
      	
               

            	
              k.

            	
               

            	
              Effective
                Date; Plan Termination.    The amendment and
                restatement of the Plan shall become effective as of November 6,
                2006, subject to approval by the shareholders of the Company. The
                Plan
                shall terminate as to future awards on the date which is ten
                (10) years after the Effective
                Date.

            

    

     

    
      	
               

            	
              l.

            	
               

            	
              Titles
                and Headings.    The titles and headings of the
                sections in the Plan are for convenience of reference only. In the
                event
                of any conflict, the text of the Plan, rather than such titles or
                headings, shall control.

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