Document:

Exhibit
4.3

 

AMENDED
AND RESTATED

1999
STOCK INCENTIVE PLAN

OF MAGNETEK, INC.

JANUARY
1, 2008

 

SECTION 1.
PURPOSE OF PLAN

 

The purpose of this 1999 Stock Incentive Plan of MagneTek, Inc.
(this “Plan”) is to enable MagneTek, Inc., a Delaware corporation (the “Company”), to attract, retain and motivate
its officers and other key employees, and to further align the interests
of such persons with those of the stockholders of the Company by providing for
or increasing the proprietary interest of such persons in the Company.

 

SECTION 2.
ADMINISTRATION OF PLAN

 

2.1 Composition of
Committee. Subject to Section 2.4, this Plan shall be
administered by the Compensation
Committee of the Board of Directors (the “Committee”), as appointed from time
to time by the Board of Directors, provided, however, that (a) with
respect to any Award (as defined in Section 5.1) that is intended to satisfy the conditions of Rule 16b-3
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) the term “Committee” shall refer
to a committee of two or more “non-employee directors” as determined for purposes of applying Exchange Act Rule 16b-3;
and (b) with respect to any Award
that is intended to qualify as “performance-based compensation” within the
meaning of Section 162(m) of
the Internal Revenue Code of 1986, as amended (the “Code”), the term “Committee”
shall refer to a committee of two or
more “outside directors” as determined for purposes of applying Code Section 162(m). The Board of Directors shall
fill vacancies on and from time to time may remove or add members to the Committee. The Committee shall act
pursuant to a majority vote or unanimous written consent. The Committee may designate the Secretary of the Company or
other Company employees to assist the
Committee in the administration of this Plan, and may grant authority to such
persons to execute agreements or other
documents evidencing Awards made under this Plan or other documents entered
into under this Plan on behalf of the Committee or the Company.

 

2.2 Powers of the
Committee. Subject to the express provisions of this Plan, the
Committee shall be authorized and empowered to do all things necessary
or desirable, in its sole discretion, in connection with the administration of
this Plan, including, without limitation, the following:

 

(a)     to prescribe, amend and rescind rules and regulations
relating to this Plan and to define terms not otherwise defined herein; provided
that, unless the Committee shall specify otherwise, for purposes of this Plan (i) the term “fair market value”
shall mean, as of any date, the closing price for a Share (as defined in Section 3.1) reported for that
date by the New York Stock Exchange (or such other stock exchange or quotation system on which Shares are
then listed or quoted) or, if no Shares are traded on the New York Stock Exchange (or such other stock
exchange or quotation system) on the date in question, then for the next preceding date for which Shares traded on
the New York Stock Exchange (or such
other stock exchange or quotation system); and (ii) the term “Company”
shall mean the Company and its subsidiaries and affiliates, unless the
context otherwise requires;

 

(b)     to determine which
persons are Eligible Persons (as defined in Section 4), to which of such Eligible Persons, if any, Awards shall be granted
hereunder and the timing of any such Awards, and to grant Awards;

 

(c)   to
determine the number of Shares subject to Awards and the exercise or purchase
price of such Shares;

 

(d)   to
establish and verify the extent of satisfaction of any performance goals
applicable to Awards;

 

(e)    to
prescribe and amend the terms of the agreements or other documents evidencing
Awards made under this Plan (which need not be identical); provided, however,
that the Committee shall not take any action or fail to take any action with
respect to the operation of the Plan or any documents evidencing Awards that
would cause all or part of the payment under any Award to be subject to the
additional tax under Code Section 409A;

 

 

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(f)      to
determine whether, and the extent to which, adjustments are required pursuant
to Section 10;

 

(g)     to
interpret and construe this Plan, any rules and regulations under this
Plan and the terms and conditions of any
Award granted hereunder, and to make exceptions to any such provisions in good
faith and for the benefit of the Company; and

 

(h)     to make all other determinations deemed necessary
or advisable for the administration of this Plan.

 

2.3 Determinations of the Committee. All decisions,
determinations and interpretations by the Committee regarding this Plan shall be final and binding on all Eligible
Persons and Participants. The Committee shall consider such factors as
it deems relevant to making such decisions, determinations and, interpretations
including, without limitation, the
recommendations or advice of any director, officer or employee of the Company
and such attorneys, consultants and accountants as it may select.

 

2.4. Authority of
the Board of Directors. The Board of Directors, in its sole
discretion, may exercise any authority of the Committee under this Plan in lieu
of the Committee’s exercise thereof.

 

SECTION 3.
STOCK SUBJECT TO PLAN

 

3.1 Aggregate Limits. At any time, the aggregate number of
shares of the Company’s Common Stock, $.01
par value (“Shares”), issued and issuable pursuant to all Awards (including all
ISOs (as defined in Section 5.1
(a))) granted under this Plan shall not exceed 1,500,000, plus the number of
shares subject to options granted under
the second Amended and Restated 1989 Incentive Stock Compensation Plan of MagneTek, Inc.
but which shares are not issued as of the cancellation, expiration or
forfeiture of such options; provided that no more
than 350,000 of such Shares may be issued pursuant to all Incentive Bonuses and
Incentive Stock Awards granted under this Plan, and provided further that, notwithstanding Section 3.3,
the aggregate number of Shares that may be
issued pursuant to the exercise of ISOs granted under this Plan shall not exceed 1,500,000. Such limits shall be subject
to adjustment as provided in Section 10. The Shares subject to this Plan may be either reacquired by the
Company, including Shares purchased in the open market, or authorized
but unissued Shares.

 

3.2 Code Section 162 (m) Limits. The aggregate number
of Shares subject to Options granted under this Plan during any calendar year to any one Employee shall not exceed
500,000. The aggregate number of Shares issued or issuable under all Awards
granted under this Plan, other than Options, during any calendar year to
any one Employee shall not exceed 100,000. Notwithstanding anything to the
contrary in this Plan, the foregoing
limitations shall be subject to adjustment under Section 10 only to the
extent that such adjustment will not affect the status of any Award
intended to qualify as “performance based compensation” under Code Section 162(m). The foregoing limitations
shall not apply to the extent that they are no longer required in order for compensation in connection with grants
under this Plan to be treated as “performance-based compensation” under
Code Section 162(m).

 

3.3 Issuance of Shares. For purposes of Section 3.1, the
aggregate number of Shares issued under this Plan at any time shall equal only the number of Shares actually issued
upon exercise or settlement of an Award and shall not include Shares
subject to Awards that have been canceled, expired or forfeited or Shares
subject to Awards that have been used in payment or satisfaction of the
purchase price, exercise price or tax withholding obligation of an Award.

 

SECTION 4.
PERSONS ELIGIBLE UNDER PLAN

 

Any person who is an officer or
other key employee of the Company as determined, in its discretion and for
purposes only of this Plan, by the Committee (an “Eligible Person”), shall be
eligible to be considered for the
grant of Awards hereunder. A “Participant” is any current or former Eligible
Person to whom an Award has been made
and any person (including any estate) to whom an Award has been assigned or transferred
pursuant to Section 9.1.

 

 

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SECTION 5.
PLAN AWARDS

 

5.1 Award Types. The Committee, on behalf of the Company, is
authorized under this Plan to enter into certain types of arrangements
with Employees and to confer certain benefits on them. The following arrangements or benefits are authorized under this
Plan if their terms and conditions are not inconsistent with the provisions of
this Plan: Options, Incentive Bonuses and Incentive Stock. Such arrangements
and benefits are sometimes referred to
herein as “Awards.” The authorized types of arrangements and benefits for which
Awards may be granted are defined as follows:

 

(a)    Options: An Option is a
right granted under Section 6 to purchase a number of Shares at such exercise price, at such times, and on such other
terms and conditions as are specified in the agreement or terms and conditions or other document evidencing
the Award (the “Option Document”). Options intended to qualify as Incentive Stock Options (“ISOs”) pursuant to Code
Section 422 and Options not intended to qualify as ISOs (“Nonqualified
Options”) may be granted under Section 6.

 

(b)    Incentive
Bonus: An Incentive
Bonus is a bonus opportunity awarded under Section 7 pursuant to which a Participant may become entitled to
receive an amount based on satisfaction of such performance criteria as are specified in the agreement or other document
evidencing the Award (the “Incentive Bonus Document”).

 

(c)    Incentive
Stock: Incentive
Stock is an award or issuance of Shares made under Section 8, the grant, issuance, retention, vesting and/or
transferability of which is subject during specified periods of time to such
conditions (including continued employment or performance conditions) and terms
as are expressed in the agreement or other document evidencing the Award
(the “Incentive Stock Document”).

 

5.2 Grants of Awards. An Award may consist of one such
arrangement or benefit or two or more of them in tandem or in the
alternative.

 

SECTION 6.
OPTIONS

 

The Committee may grant an Option
or provide for the grant of an Option, either from time to time in the
discretion of the Committee or automatically upon the occurrence of specified
events, including, without limitation, the
achievement of performance goals, the satisfaction of an event or condition
within the control of the recipient of the Award or within the control
of others.

 

6.1 Option Document. Each Option Document shall contain
provisions regarding (a) the number of Shares that may be issued
upon exercise of the Option, (b) the purchase price of the Shares and the
means of payment for the Shares, (c) the term of the Option, (d) such
terms and conditions of exercisability as may be determined from time to time by the Committee, (e) restrictions on
the transfer of the Option and forfeiture provisions and (f) such
further terms and conditions, in each case not inconsistent with this Plan as
may be determined from time to time by the
Committee. Option Documents evidencing ISOs shall contain such terms and conditions as may be necessary to
qualify, to the extent determined desirable by the Committee, with the
applicable provisions of Section 422 of the Code.

 

6.2 Option Price. The purchase price per share of the Shares subject to each Option
granted under this Plan shall equal or exceed 100% of the fair market value of
such Stock on the date the Option is granted, except that the exercise price of
an Option may be higher or lower in the case of Options granted to an employee
of a company acquired by the Company in assumption and substitution of options
held by such employee at the time such company is acquired.

 

6.3 Option Term. The “Term” of each Option granted under this
Plan, including any ISOs, shall be 10 years from the date of its grant,
unless the Committee provides otherwise.

 

6.4 Option Vesting. Options granted under this Plan shall be
exercisable at such time and in such installments
during the period prior to the expiration of the Option’s Term as determined by
the Committee. The Committee shall have the right to make the timing of
the ability to exercise any Option granted under this

 

 

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Plan subject to such performance requirements as deemed appropriate by
the Committee. At any time after the
grant of an Option the Committee may reduce or eliminate any restrictions
surrounding any Participant’s right to exercise all or part of the
Option.

 

6.5 Termination of Employment. Subject to Section 11, upon
a termination of employment by a Participant
prior to the full exercise of an Option, the unexercised portion of the Option
shall be subject to such procedures as the Committee may establish.

 

6.6 Payment of Exercise Price. The exercise price of an Option
shall be paid in the form of one of more of the following, as the Committee shall specify, either through the
terms of the Option Document or at the time
of exercise of an Option: (a) cash or certified or cashiers’ check, (b) shares
of capital stock of the Company that have been held by the Participant for such
period of time as the Committee may specify, (c) other property deemed acceptable by the Committee, (d) a
reduction in the number of Shares or other property otherwise issuable
pursuant to such Option or (e) any combination of (a) through (d).

 

6.7 No Option Repricing; No Reload Options. Without the approval
of stockholders, the Company shall not (a) reprice any Options or (b) provide
for “reload options,” which means that unless approved by stockholders the Company shall not provide for
Options to be granted automatically in connection with and to the extent of the exercise of other Options. For
purposes of this Plan, the term “reprice” means amending, canceling or replacing Options within the meaning
of Item 402(i) under Securities and Exchange Commission Regulation S-K
including by (i) reducing the exercise price of outstanding Options and (ii) canceling
outstanding Options and granting new Options to the holders of canceled
Options.

 

SECTION 7.
INCENTIVE BONUSES

 

Each Incentive Bonus Award will
confer upon the Employee the opportunity to earn a future payment tied
to the level of achievement with respect to one or more performance criteria
established for a performance period of not less than one year.

 

7.1 Incentive Bonus Document. Each Incentive Bonus Document
shall contain provisions regarding (a) the
target and maximum amount payable to the Participant as an Incentive Bonus, (b) the
performance criteria and level of
achievement versus these criteria that shall determine the amount of such
payment, (c) the term of the
performance period as to which performance shall be measured for determining
the amount of any payment, (d) the
timing of any payment earned by virtue of performance, (e) restrictions on
the alienation or transfer of the Incentive Bonus prior to actual
payment, (f) forfeiture provisions and (g) such further terms and conditions, in each case not
inconsistent with this Plan as may be determined from time to time by
the Committee. The maximum amount payable as an Incentive Bonus may be a
multiple of the target amount payable, but
the maximum amount payable pursuant to that portion of an Incentive Bonus Award
granted under this Plan for any fiscal year to any Participant that is
intended to satisfy the requirements for “performance based compensation” under
Code Section 162(m) shall not exceed $1,000,000.

 

7.2 Performance Criteria. The Committee shall establish the
performance criteria and level of achievement
versus these criteria that shall determine the target and maximum amount
payable under an Incentive Bonus Award, which criteria may be based on
financial performance and/or personal performance evaluations. The Committee may specify the percentage of the target
Incentive Bonus that is intended to satisfy
the requirements for “performance-based compensation” under Code Section 162(m).
Notwithstanding anything to the
contrary herein, the performance criteria for any portion of an Incentive Bonus
that is intended by the Committee to
satisfy the requirements for “performance-based compensation” under Code Section 162(m) shall be a measure based
on one or more Qualifying Performance Criteria (as defined in Section 9.2)
selected by the Committee and specified at the time the Incentive Bonus Award
is granted. The Committee shall certify the
extent to which any Qualifying Performance Criteria has been satisfied, and the
amount payable as a result thereof, prior to payment of any Incentive
Bonus that is intended to satisfy the requirements for “performance-based
compensation” under Code Section 162(m).

 

7.3 Timing and Form of
Payment. The Committee shall determine the timing of payment of any Incentive
Bonus, provided that the timing of such payment shall satisfy an exception to
Code Section 409A or, if no such exception is available, the timing of
such payment shall comply with the requirements of Code Section 409A.

 

 

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7.4 Discretionary Adjustments. Notwithstanding satisfaction of
any performance goals, the amount paid under an Incentive Bonus Award on
account of either financial performance or personal performance evaluations may be reduced by the Committee on the
basis of such further considerations as the Committee shall determine.

 

SECTION 8.
INCENTIVE STOCK

 

Incentive Stock is an award or
issuance of Shares the grant, issuance, retention, vesting and/or transferability
of which is subject during specified periods of time to such conditions
(including continued employment or performance conditions) and terms as the
Committee deems appropriate.

 

8.1 Incentive Stock Document. Each Incentive Stock Document
shall contain provisions regarding (a) the
number of Shares subject to such Award or a formula for determining such, (b) the
performance criteria, if any, and
level of achievement versus these criteria that shall determine the number of
Shares granted, issued, retainable and/or vested, (c) the period,
if any, as to which performance shall be measured for determining achievement
of performance or, if not subject to performance criteria, the period of continued
employment upon which vesting of the Shares
is subject, which period in any case (except in the event of death or disability of the Participant or upon a
Change of Control (as defined in Section 11.2) ) shall be not less than one year, (d) forfeiture, (e) transferability
and (f) such further terms and conditions not inconsistent with
this Plan as may be determined from time to time by the Committee.

 

8.2 Sale Price. Subject to the requirements of applicable law,
the Committee shall determine the price, if any, at which Shares of
Incentive Stock shall be sold or awarded to an Eligible Person, which may vary
from time to time and among Eligible Persons
and which may be below the fair market value of such Shares at the date
of grant or issuance.

 

8.3 Performance Criteria. The grant, issuance, retention and/or
vesting of each Incentive Share may but need not be subject to such performance
criteria and level of achievement versus these criteria as the Committee shall determine, which criteria may be
based on financial performance and/or personal performance evaluations. Notwithstanding anything to the
contrary herein, the performance criteria for any Incentive Stock that is intended to satisfy the requirements
for “performance-based compensation” under Code Section 162(m) shall be a measure based on one or more
Qualifying Performance Criteria selected by the Committee and specified
at the time the Incentive Stock Award is granted.

 

8.4 Discretionary Adjustments. Notwithstanding satisfaction of
any performance goals, the number of Shares
granted, issued, retainable and/or vested under an Incentive Stock Award on
account of either financial
performance or personal performance evaluations may be reduced by the Committee
on the basis of such further considerations as the Committee shall
determine.

 

8.5 Termination of Employment. Subject to Section 11, upon
a termination of employment by a Participant prior to the vesting of or
the lapsing of restrictions on Incentive Stock, the Incentive Stock Awards
granted to such Participant shall be subject to such procedures as determined
by the Committee.

 

SECTION 9.
OTHER PROVISIONS APPLICABLE TO AWARDS

 

9.1 Transferability. Unless the agreement or other document
evidencing an Award (or an amendment thereto
authorized by the Committee) expressly states that the Award is transferable as
provided hereunder, no Award granted under this Plan, nor any interest in such
Award, may be sold, assigned, conveyed, gifted, pledged, hypothecated or otherwise transferred in any manner prior to
the vesting or lapse of any and all restrictions applicable thereto, other than
by will or the laws of descent and distribution or pursuant to a “domestic relations order,” as defined in the Code.
The Committee may grant an Award or amend an outstanding Award to
provide that the Award is transferable or assignable to a member or members of
the Participant’s “immediate family,” as such
term is defined in Rule 16a-1 (e) under the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), or to a trust for the benefit solely
of a member or members of

 

 

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the Participant’s immediate family, or to a
partnership or other entity whose only owners are members of the Participant’s
immediate family, provided that
following any such transfer or assignment the Award will remain subject to substantially the same terms applicable
to the Award while held by the Participant, as modified as the Committee shall determine appropriate, and the
transferee shall execute an agreement agreeing to be bound by such
terms.

 

9.2 Qualifying Performance Criteria. For purposes of this Plan,
the term “Qualifying Performance Criteria”
shall mean any one or more of the following performance criteria, either
individually, alternatively or in any
combination, applied to either the Company as a whole or to a business unit or
subsidiary, either individually,
alternatively or in any combination, and measured either annually or
cumulatively over a period of years, on an absolute basis or relative to
a pre-established target, to previous years’ results or to a designated comparison group, in each case as specified by the
Committee in the Award: (a) cash flow, (b) earnings per share, (c) earnings
before interest, taxes and amortization), (d) return on equity, (e) total
stockholder return, (f) return
on capital, (g) return on assets or net assets, (h) revenue, (i) income
or net income, (j) operating income
or net operating income, (k) operating profit or net operating profit, (1) operating
margin, (m) return on operating revenue, (n) market share and (o) overhead
or other expense reduction. The Committee shall appropriately adjust any evaluation of performance under a Qualifying
Performance Criteria to exclude any of the
following events that occurs during a performance period: (i) asset
write-downs, (ii) litigation or claim judgments or settlements, (iii) the
effect of changes in tax law, accounting principles or other such laws or provisions
affecting reported results, (iv) accruals for reorganization and
restructuring programs and (v) any extraordinary non-recurring items as
described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial
condition and results of operations appearing in the Company’s annual
report to stockholders for the applicable year.

 

9.3 Dividends. Unless otherwise provided by the Committee, no adjustment shall be made
in Shares issuable under Award on account of cash dividends that may be paid or
other rights that may be issued to the holders of Shares prior to their
issuance under any Award.  The Committee
shall specify whether dividends or dividend equivalent amounts shall be paid to
any Participant with respect to the Shares subject to any Award that have not
vested or been issued or that are subject to any restrictions or conditions on
the record date for dividends. Notwithstanding any provision of this Section 9.3
to the contrary, the Committee shall not condition the right to receive
dividends or dividend equivalent amounts, directly or indirectly, upon the
exercise of any Option.  In addition, the
Committee will ensure that any right to dividend or dividend equivalent amounts
that may be paid in connection with the Shares subject to any Award granted
hereunder  complies with the
requirements of Code Section 409A.

 

9.4 Documents Evidencing Awards. The Committee shall, subject to
applicable law, determine the date an
Award is deemed to be granted, which for purposes of this Plan shall not be
affected by the fact that an Award is contingent on subsequent
stockholder approval of this Plan. The Committee or, except to the extent prohibited under applicable law, its delegate (s) may
establish the terms of agreements or other documents evidencing Awards
under this Plan and may, but need not, require as a condition to any such
agreement’s or document’s effectiveness that
such agreement or document be executed by the Participant and that such Participant agree to such further terms and
conditions as specified in such agreement or document. The grant of an Award under this Plan shall not confer any
rights upon the Participant holding such Award other than such terms, and subject to such conditions, as are
specified in this Plan as being applicable to such type of Award (or to all Awards)
or as are expressly set forth in the agreement or other document evidencing
such Award.

 

9.5 Tandem Stock or
Cash Rights. Either at the time an Award is granted or by subsequent
action, the Committee may, but need not,
provide that an Award shall contain as a term thereof, a right, either in
tandem with the other rights under the
Award or as an alternative thereto, of the Participant to receive, without payment to the Company, a number of Shares, cash or
a combination thereof, the amount of which is determined by reference to
the value of the Award.

 

9.6 Financing. The Committee may not provide financing to a
Participant to pay the purchase price of any Award or to pay the amount
of taxes required by law to be withheld with respect to any Award.

 

 

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9.7 Sub-Committees. The Board of Directors or the Committee may
from time to time appoint one or more Sub-Committees (as defined below)
comprised of one or more officers, directors or others, which Sub-Committee shall have the powers of the Committee
described in Section 6 of this Plan solely with respect to the
grant of Options (as defined in Section 5.1(a)) to employees who are not
then officers of the Company within
the meaning of Rule 16a-1 (f) promulgated under the Exchange Act, if
and as such Rule is then in effect.
Each such Sub-Committee may be subject to any such additional restrictions or
limitation as the Board of Directors
or the Committee may impose at any time. Each Sub-Committee so appointed may be
disbanded by the Board of Directors
or the Committee at any time, provided that
no such termination shall affect the validity of any Option theretofore
approved by any such Sub-Committee. “Sub-Committee” shall mean any Sub-Committee, comprised of one or more
individuals, of the Committee appointed as provided in Section 2.1. The aggregate number of Shares
subject to Options granted by a Sub-Committee hereunder during any
calendar year to any one Employee shall not exceed 15,000.

 

9.8 Compliance with Code Section 409A.
Some of the Awards that may be
granted pursuant to the Plan (including Incentive Bonus Awards and Incentive
Stock Awards) may be considered to be “non-qualified deferred compensation”
subject to Code Section 409A.  If an
Award is subject to Code Section 409A, the document evidencing such Award
and this Plan are intended to comply fully with and meet all of the
requirements of Code Section 409A. 
The document evidencing such Award shall include such provisions as may
be necessary to assure compliance with Code Section 409A.  An Award subject to Code Section 409A
also shall be administered in good faith compliance with the provisions of Code
Section 409A as well as applicable guidance issued by the Internal Revenue
Service and the Department of Treasury. 
To the extent necessary to comply with Code Section 409A, any Award
that is subject to Code Section 409A may be modified, replaced or
terminated in the discretion of the Committee. 
Notwithstanding any provision of this Plan or any document evidencing an
Award to the contrary, in the event that the Committee determines that any
Award is or may become subject to Code Section 409A, the Company may adopt
such amendments to the Plan and the related documents evidencing any Awards,
without the consent of the Participant, or adopt other policies and procedures
(including amendments, policies and procedures with retroactive effective
dates), or take any other action that the Committee determines to be necessary
or appropriate to either comply with Code Section 409A or to exclude or
exempt the Plan or any Award from the requirements of Code Section 409A.

 

SECTION 10.
CHANGES IN CAPITAL STRUCTURE

 

  If the outstanding securities of the class
then subject to this Plan are increased, decreased or exchanged for or
converted into cash, property or a different number or kind of shares or
securities, or if cash, property or shares or securities are distributed in
respect of such outstanding securities, in either case as a result of a
reorganization, merger, consolidation, recapitalization, restructuring,
reclassification, dividend (other than a regular, quarterly cash dividend) or
other distribution, stock split, reverse stock split, spin-off or the like, or
if substantially all of the property and assets of the Company are sold, then,
unless the terms of such transaction shall provide otherwise, the Committee
shall make appropriate and proportionate adjustments in (a) the number and
type of shares or other securities or cash or other property that may be
acquired pursuant to Awards theretofore granted under this Plan and the
exercise or settlement price of such Awards, provided,
however, that such adjustment shall be
made in such a manner that is consistent with the requirements of Code Section 409A
and that will not affect the status of any Award intended to qualify as an ISO
under Code Section 422 or as “performance based compensation” under Code Section 162(m) and
(b) the maximum number and type of shares or other securities that may be
issued pursuant to such Awards thereafter granted under this Plan.

 

SECTION 11.
CHANGE OF CONTROL

 

11.1 Effect of Change
of Control. The Committee may, through the terms of the Award or
otherwise, provide that any or all of
the following shall occur, in connection with a Change of Control or a Change
of Control Transaction (as defined in
Section 11.2), or upon termination of the Participant’s employment following a Change of Control or a Change of
Control Transaction: (a) in the case of an Option, the acceleration
of the Participant’s ability to exercise any portion of the Option not
previously exercisable or the payment to the
Participant of cash equal to the difference between the exercise price and the
price being paid to 

 

 

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the holders of Shares, (b) in the case of an Incentive Bonus, the
acceleration of the Participant’s right to receive a payment equal to the target amount payable or, if greater, a
payment based on performance through a
date determined by the Committee prior to the Change of Control and (c) in
the case of Shares issued in payment
of any Incentive Bonus, and/or in the case of Incentive Stock, the lapse and
expiration of any conditions to the
grant, issuance, retention, vesting or transferability of, or any other restrictions
applicable to, such Award. The
Committee also may, through the terms of the Award or otherwise, provide for an
absolute or conditional exercise,
payment or lapse of conditions or restrictions on an Award that shall only be
effective if, upon the announcement of
a Change of Control Transaction, no provision is made in such Change of Control Transaction for the exercise, payment or
lapse of conditions or restrictions on the Award, or other procedure
whereby the Participant may realize the full benefit of the Award. In the case
of an acceleration of payment of any Award hereunder on a Change of Control or
Change of Control Transaction, the payment shall be made on or before March 15
of the year following the year in which the Change of Control or Change of
Control Transaction occurs in order to satisfy the “short-term deferral
exception” to Code Section 409A.

 

11.2 Definitions. Unless the Committee provides
otherwise,

 

“Change
of Control” means the first to occur of the following:

 

(a)     the
merger or consolidation of the Company with or into another corporation;

 

(b)     the acquisition by another corporation person or
group of all or substantially all of the Company’s assets or 40% or more
of the Company’s then outstanding voting stock;

 

(c)   the
liquidation or dissolution of the Company; or

 

(d)     during
any period of 12 consecutive months, individuals who at the beginning of such
12-month period constituted the Board of Directors (together with any new
directors whose election by the Board of Directors
or whose nomination for election by the stockholders of the Company was
approved by a vote of a majority of the directors then still in office
who were either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the Board of Directors then in office,

 

provided, however, that a Change of Control will not be deemed to
have occurred in respect of a merger in which (x) the Company is the surviving corporation, (y) no
person or group acquires 40% or more of the Company’s outstanding voting stock and (z) the Shares outstanding
prior to the merger remain outstanding thereafter;
and provided further, that a
merger or consolidation will not be considered a Change of Control if such
transaction results only in the reincorporation of the Company in another
jurisdiction or its restructuring into holding company form.

 

“Change
of Control Transaction” shall mean any tender offer, offer, exchange offer,
solicitation, merger, consolidation,
reorganization or other transaction that is intended to or reasonably expected
to result in a Change of Control. For any Award subject to the
requirements of Code Section 409A, the document evidencing such Award may
prescribe a different definition of the term “Change of Control” or “Change of
Control Transaction” that will apply for purposes of such document and that
complies with the requirements of Code Section 409A.

 

SECTION 12.
TAXES

 

12.1 Withholding
Requirements. The Committee may make such provisions or impose such
conditions as it may deem appropriate for the withholding or payment by
a Participant of any taxes that the Committee determines
are required in connection with any Award granted under this Plan, and a
Participant’s rights in any Award are subject to satisfaction of such
conditions.

 

12.2 Payment of
Withholding Taxes. Notwithstanding the terms of Section 12.1,
the Committee may provide in the
agreement or other document evidencing an Award or otherwise that all or any
portion of the taxes required to be withheld by the Company or, if
permitted by the Committee, desired to be paid by the Participant, in connection with the exercise of a Nonqualified Option or
the exercise, vesting, settlement or transfer of any other Award shall
be paid or, at the election of the Participant, may be paid by the Company by withholding shares of the Company’s capital stock
otherwise issuable or subject to such Award, or by the Participant delivering
previously owned shares of the Company’s capital stock, in each case having a
fair 

 

 

8

 

market value equal to the amount required or elected to be withheld or
paid. Any such election is subject to such
conditions or procedures as may be established by the Committee and may be
subject to disapproval by the Committee.

 

SECTION 13.
AMENDMENTS OR TERMINATION

 

The
Board may amend, alter or discontinue this Plan or any agreement or other
document evidencing an Award made under this Plan, but no such amendment shall,
without the approval of the stockholders of the Company:

 

(a)     increase
the maximum number of shares of Common Stock for which Awards may be granted
under this Plan;

 

(b)     reduce
the price at which Options may be granted below the price provided for in Section 6.2;

 

(c)     reduce
the exercise price of outstanding Options;

 

(d)     after any Change of Control, impair the rights of
any Award holder without such holder’s consent;

 

(e)     extend
the term of this Plan;

 

(f)      change
the class of persons eligible to be Participants;

 

(g)     provide for the automatic grant of Options based
upon the exercise of Options by holders of Options; or

 

(h)     increase
the number of shares that are eligible for non-Option Awards.

 

Notwithstanding the foregoing, no amendment, alteration
or discontinuance of this Plan or any other document evidencing an Award under
the Plan shall cause all or a part of the payment under any Award to be subject
to additional tax under Code Section 409A

 

SECTION 14.
COMPLIANCE WITH OTHER LAWS AND REGULATIONS

 

This Plan, the grant and exercise
of Awards thereunder, and the obligation of the Company to sell, issue or
deliver Shares under such Awards, shall be subject to all applicable federal,
state and foreign laws, rules and regulations
and to such approvals by any governmental or regulatory agency as may be
required. The Company shall not be
required to register in a Participant’s name or deliver any Shares prior to the
completion of any registration or
qualification of such Shares under any federal, state or foreign law or any
ruling or regulation of any government
body which the Committee shall determine to be necessary or advisable. This Plan is intended to constitute an unfunded
arrangement for a select group of management or other key employees,
directors and consultants.

 

No Option shall be exercisable
unless a registration statement with respect to the Option is effective or the Company has determined that such registration
is unnecessary. Unless the Awards and Shares covered by this Plan have been registered
under the Securities Act of 1933, as amended, or the Company has determined that such registration is unnecessary, each person
receiving an Award and/or Shares pursuant to any Award may be required by the Company to give a
representation in writing that such person is acquiring such Shares for his or her own account for investment and not
with a view to, or for sale in connection with, the distribution of any
part thereof.

 

SECTION 15.
NO RIGHT TO COMPANY EMPLOYMENT

 

Nothing in this Plan or as a result
of any Award granted pursuant to this Plan shall confer on any individual any right to continue in the employ of
the Company or interfere in any way with the right of the Company to terminate an individual’s employment at
any time. The agreements or other documents evidencing Awards may
contain such provisions as the Committee may approve with reference to the
effect of approved leaves of absence.

 

 

9

 

SECTION 16.
EFFECTIVENESS AND EXPIRATION OF PLAN

 

This Plan shall be effective on
the date the Company’s stockholders adopt this Plan. All Awards granted under
this Plan are subject to, and may not be exercised before, the approval of this
Plan by the stockholders prior to the first anniversary date of the effective
date of this Plan, by the affirmative vote of the holders of a majority of the
outstanding shares of the Company present, or represented by proxy, and
entitled to vote, at a meeting of the
Company’s stockholders or by written consent in accordance with the laws of the
State of Delaware; provided that if
such approval by the stockholders of the Company is not forthcoming, all Awards
previously granted under this Plan shall be
void. No Awards shall be granted pursuant to this Plan more than 10
years after the effective date of this Plan.

 

SECTION 17.
NON-EXCLUSIVITY OF PLAN

 

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

 

SECTION 18.
GOVERNING LAW

 

This Plan and any agreements or
other documents hereunder shall be interpreted and construed in accordance with the laws of the State of Delaware
and applicable federal law. The Committee may provide that any dispute as to any Award shall be presented
and determined in such forum as the Committee may specify, including through binding arbitration.
Any reference in this Plan or in the agreement or other document
evidencing any Award to a provision of law or to a rule or regulation
shall be deemed to include any successor law, rule or regulation of
similar effect or applicability.

 

 

 

10Exhibit
4.4

 

AMENDED
AND RESTATED

2000
EMPLOYEE STOCK PLAN

OF MAGNETEK, INC.

JANUARY
1, 2008

 

MAGNETEK, INC., a corporation organized under the laws
of the State of Delaware hereby adopts this 2000 Employee Stock Plan of
MagneTek, Inc. The purposes of this Plan are as follows:

 

(1)             To further the growth, development and financial success
of the Company by providing additional incentives to its Employees by
assisting them to become owners of capital stock of the Company and thus to
benefit directly from its growth, development and financial success.

 

(2)             To enable the
Company to obtain and retain the services of the type of professional, technical
and managerial employees considered essential to the long-range success of the
Company by providing and offering them an opportunity to become owners of
capital stock of the Company under awards of restricted and unrestricted stock,
performance units, stock appreciation rights, restricted stock rights and
options, including non-qualified stock options.

 

ARTICLE I

 

DEFINITIONS AND RULES OF CONSTRUCTION

 

SECTION 1.1                                                                          RULES OF CONSTRUCTION

 

As
used herein, the masculine pronoun shall include the feminine and neuter and
the singular shall include the plural, where the context so indicates. Titles
are provided herein for convenience only and are not to serve as a basis for
interpretation or construction of this Plan.

 

SECTION 1.2                                                                          DEFINITIONS  As used 

 

herein:

 

Award shall mean any Options, Stock
Appreciation Rights and/or Restricted Stock Rights granted under this Plan and/or
Restricted Stock, Stock Awards and/or Performance Units issued under this Plan.

 

Board shall mean the
Board of Directors of the Company.

 

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

 

Committee shall
mean the Compensation Committee of the Board, appointed as provided in Section 11.1.

 

Company shall
mean MagneTek, Inc. In addition, Company
shall mean any corporation assuming, or issuing new employee stock
options in substitution for, options outstanding under this Plan.

 

Director shall mean a member of the Board.

 

Employee shall
mean any employee (as defined in accordance with the Regulations then
applicable under Section 3401(c) of the Code) of the Company, or of
any corporation which is then a Parent Corporation or a Subsidiary, whether
such employee is so employed at the time this Plan is adopted or becomes so
employed subsequent to the adoption of this Plan.

 

 

 

 

Exchange Act shall mean the Securities Exchange Act
of 1934, as amended.

 

Fair Market Value of a Share on a given determination date shall be: the closing price for
a Share reported for that date by
the New York Stock Exchange (or such other stock exchange or quotation system
on which Shares are then listed or quoted) or, if no Shares are traded on the
New York Stock Exchange (or such other stock exchange or quotation system) on
the date in question, then for the next preceding date for which Shares traded
on the New York Stock Exchange (or such other stock exchange or
quotation system).

 

Non-Qualified
Option shall mean an Option that is not subject to the
tax treatment provided for under Section 422 of the Code.

 

Officer shall mean an officer of the Company, any Parent
Corporation or any Subsidiary. Option 

 

shall mean an option to purchase capital stock of the
Company granted under this Plan. Optionee 

 

shall
mean an Employee to whom an Option is granted under this Plan.

 

Parent Corporation shall mean any corporation that is a “parent” of the Company within the meaning
of Rule 405 under the Securities Act.

 

Participant
shall mean an Employee who shall have been granted an Award.

 

Performance Period shall
mean a period of time determined by the Committee over which the performance
goals associated with a Performance Unit are to be achieved.

 

Plan shall
mean this 2000 Employee Stock Plan of MagneTek, Inc.

 

Restricted Period shall mean the period of time for which Restricted Stock or a
Restricted Stock Right is subject to forfeiture or other Restrictions
pursuant to this Plan.

 

Restricted Stock shall mean capital stock
of the Company issued pursuant to Articles VII and VIII of this Plan.

 

Restricted Stockholder shall mean a person
to whom Restricted Stock has been issued under this Plan.

 

Restricted Stock Right shall mean a right
to be issued Shares, granted pursuant to Articles VII and VIII of this Plan.

 

Restrictions shall
mean the restrictions on Restricted Stock or Restricted Stock Rights imposed by
the Committee by the terms of an individual Restricted Stock Agreement or
Restricted Stock Right Agreement and shall include the requirement that such
Restricted Stock or Restricted Stock Rights be forfeited back to, or subject to
mandatory repurchase by, the Company upon a Termination of Employment for the
reasons specified in such Restricted Stock Agreement or Restricted Stock Right
Agreement.

 

Secretary shall
mean the Secretary of the Company.

 

Securities
Act shall mean the Securities Act of 1933, as amended.

 

Shares shall
mean shares of the Company’s Common Stock, $.01 par value.

 

Sub-Committee shall
mean any Sub-Committee, comprised of one or more individuals, of the Committee
appointed as provided in Section 11.1.

 

 

2

 

Stock Appreciation Right shall
mean a stock appreciation right granted under this Plan.

 

Stock Award shall
mean an award of capital stock of the Company pursuant to Article IX of
this Plan.

 

Subsidiary shall
mean any corporation of which the Company has “control” within the meaning of Rule 405
under the Securities Act.

 

Termination
of
Employment shall mean the time when the employee-employer
relationship between the Participant and the Company, a Parent Corporation or a
Subsidiary is terminated for any reason, with or without cause, including, but
not by way of limitation, a termination by resignation, discharge, death or
retirement, but excluding terminations where there is a simultaneous
reemployment by the Company, a Parent Corporation or a Subsidiary. The
Committee, in its absolute discretion, shall determine the effect of all
matters and questions relating to Termination of Employment, including, but not
by way of limitation, the question of whether a Termination of Employment resulted from a discharge for good
cause, and all questions of whether particular leaves of absence constitute
Terminations of Employment.

 

ARTICLE II

 

SHARES SUBJECT TO PLAN

 

SECTION 2.1                         SHARES SUBJECT TO PLAN

 

The aggregate number of Shares which may be issued
upon exercise of Options and Stock Appreciation Rights or as Restricted Stock
or Stock Awards or at the end of the term of Restricted Stock Rights shall not
exceed 1,500,000 Shares.

 

SECTION 2.2                         UNEXERCISED OPTIONS

 

If any Option expires or is canceled without having
been fully exercised, the number of shares subject to such Option but as to
which such Option was not exercised prior to its expiration or cancellation may
again be optioned or issued upon exercise of Stock Appreciation Rights or as
Restricted Stock or Stock Awards or issued at the end of the term of Restricted
Stock Rights hereunder, subject to the limitations of Section 2.1.

 

SECTION 23                          EXERCISED STOCK
APPRECIATION RIGHTS

 

To the extent that a Stock Appreciation Right shall
have been exercised, the number of shares subject to any related Option, or
portion thereof, may again be optioned hereunder, subject to the limitations of
Section 2.1.

 

SECTION 2.4                         FORFEITED RESTRICTED
STOCK

 

Any shares of Restricted Stock forfeited to the
Company pursuant to Restrictions may again be optioned or issued upon exercise
of Stock Appreciation Rights or as Restricted Stock or Stock Awards or issued
at the end of the term of Restricted Stock Rights hereunder, subject to the
limitations of Section 2.1.

 

SECTION 2.5                         FORFEITED RESTRICTED
STOCK RIGHTS

 

Any Shares relating to Restricted Stock Rights
forfeited to the Company pursuant to Restrictions may again be optioned or
issued upon exercise Stock Appreciation Rights or as Restricted Stock or Stock
Awards or issued at the end of the term of Restricted Stock Rights hereunder,
subject to the limitations of Section 2.1.

 

SECTION 2.6                         CHANGES IN COMPANY’S
SHARES

 

In the
event that the outstanding Shares are hereafter changed into or exchanged for a
different number or kind of shares or other securities of the Company, or of
another corporation, by reason of reorganization, merger, consolidation,
recapitalization, reclassification, stock split-up, stock dividend or
combination of shares,

 

 

3

 

appropriate adjustments shall be made by the Committee in the number
and kind of shares to which Options, Stock Appreciation Rights, Restricted
Stock, Stock Awards and Restricted Stock Rights thereafter to be granted or
issued under this Plan shall relate, including adjustments of the limitations
in Section 2.1 on the maximum number and kind of shares which may be
issued on exercise of Options, as Restricted Stock or Stock Awards or at the
end of the term of Restricted Stock Rights.

 

ARTICLE III

 

GRANT OF OPTIONS

 

SECTION 3.1                        ELIGIBILITY

 

Any Employee of the Company or of any corporation
which is then a Parent Corporation or a Subsidiary
shall be eligible to be granted Options, except an Officer or Director of the
Company required to file reporting forms pursuant to Section 16 of
the Exchange Act, and except as provided in Section 11.1(a).

 

SECTION 3.2                        GRANTING OF OPTIONS

 

(a)              The
Committee shall from time to time, in its absolute discretion:

 

(i)            Select from among the Employees (including those to whom
Options, Stock Appreciation Rights and/or Restricted Stock Rights have
been previously granted and/or Restricted Stock, Stock Awards and/or
Performance Units have previously been issued under this Plan) such of them as
in its opinion should be granted Options; and

 

(ii)          Determine
the number of Shares to be subject to such Options granted to such Employees;
and

 

(iii)         Determine the terms and conditions of
such Options, consistent with this Plan.

 

(b)              Upon
the selection of an Employee to be granted an Option, the Committee shall
instruct the Secretary to issue such Option and may impose such conditions on
the grant of such Option as it deems appropriate. Without limiting the
generality of the preceding sentence, the Committee may, in its discretion and
on such terms as it deems appropriate, require as a condition on the grant of
an Option that the Optionee surrender for cancellation some or all of the
unexercised Options which have been previously granted to him. An Option the
grant of which is conditioned upon such surrender may have an Option price
lower (or higher) than the Option price of the surrendered Option, may cover
the same (or a lesser or greater) number of Shares as the surrendered Option,
may contain such other terms as the Committee deems appropriate and shall be
exercisable in accordance with its terms, without regard to the number of
shares, price, Option period or any other term or condition of the surrendered
Option.

 

ARTICLE IV

 

TERMS OF OPTIONS

 

SECTION 4.1                        OPTION AGREEMENT

 

Each
Option shall be evidenced by a written Stock Option Agreement, which shall be
executed by the Optionee and an authorized Officer of the Company and which
shall contain such terms and conditions as the Committee shall determine,
consistent with this Plan.

 

SECTION 4.2                        OPTION PRICE

 

The purchase price
per share of the Shares subject to each Option granted under this Plan shall
equal or exceed 100% of the fair market value of such Stock on the date the
Option is granted, except that the exercise price of an Option may be higher or
lower in the case of Options granted to an employee of a company acquired by
the Company in assumption and substitution of options held by such employee at
the time such company is acquired.

 

 

4

 

SECTION 4.3                        COMMENCEMENT OF EXERCISABILITY

 

(a)             Except as the Committee may otherwise provide, no Option
may be exercised in whole or in part during the first year after such
Option is granted.

 

(b)           Subject to the provisions of Sections
4.3(a) and 4.3(c), Options shall become exercisable at such times
and in such installments (which may be cumulative) as the Committee shall
provide in the terms of each Stock Option Agreement; provided, however, that by a resolution adopted after an
Option is granted the Committee may, on such terms and conditions as it may
determine to be appropriate and subject to Section 4.3(c), accelerate the
time at which such Option or any portion thereof may be exercised.

 

(c)           No portion of an Option which
is unexercisable at Termination of Employment shall thereafter become
exercisable.

 

SECTION 4.4                        EXPIRATION OF OPTIONS

 

(a)              No
Option may be exercised to any extent by anyone after the first to occur of the
following events:

 

The
expiration of ten years from the date the Option was granted; or

 

(ii)           Except in the case of any Optionee who is disabled (within
the meaning of Section 22(e)(3) of the Code), the expiration
of three months from the date of the Optionee’s Termination of Employment for
any reason other than such Optionee’s death unless the Optionee dies within
said three-month period; or

 

(iii)          In the case of an
Optionee who is disabled (within the meaning of Section 22(e)(3) of
the Code), the expiration of one year from the date of the Optionee’s
Termination of Employment for any reason other than such Optionee’s death
unless the Optionee dies within said one-year period; or

 

(iv)        The expiration of one year from the date
of the Optionee’s death.

 

(b)              Subject
to the provisions of Section 4.4(a), the Committee shall provide, in the
terms of each Stock Option Agreement, when such Option expires and becomes
unexercisable. Notwithstanding the foregoing, the Committee may provide in the
terms of Stock Option Agreements that Options expire immediately upon a
Termination of Employment for any reason.

 

SECTION 4.5                        CONSIDERATION

 

In consideration of the granting of the Option, the
Optionee shall agree, in the written Stock Option Agreement, to remain in the
employ of the Company, a Parent Corporation or a Subsidiary for a period of at
least one year after the Option is granted. Nothing in this Plan or in any
Stock Option Agreement hereunder shall confer upon any Optionee any right to
continue in the employ of the Company, any Parent Corporation or any Subsidiary
or shall interfere with or restrict in any way the rights of the Company, its
Parent Corporations and its Subsidiaries, which are hereby expressly reserved, to
discharge any Optionee at any time for any reason whatsoever, with or without
cause..

 

 

5

 

SECTION 4.6                        ADJUSTMENTS
IN OUTSTANDING OPTIONS

 

In the event that the
outstanding Shares subject to Options are changed into or exchanged for a
different number or kind of shares of the Company or other securities of the
Company by reason of merger, consolidation, recapitalization, reclassification,
stock split-up, stock dividend or combination of shares, the Committee shall
make an appropriate and equitable adjustment in the number and kind of shares
as to which all outstanding Options, or portions thereof then unexercised,
shall be exercisable, to the end that after such event the Optionee’s
proportionate interest shall be maintained as before the occurrence of such
event. Such adjustment in an outstanding Option shall be made without change in
the total price applicable to the Option or the unexercised portion of
the Option (except for any change in the aggregate price resulting from
rounding-off of share quantities or prices) and with any necessary
corresponding adjustment in Option price per share. Any such adjustment made by
the Committee shall be final and binding upon all Optionees, the Company and
all other interested persons. Any adjustment made hereunder shall be made in
such a manner that is consistent with the requirements of Code Section 409A
and that will not affect the status of any Award intended to qualify as an ISO
under Code Section 422 or as “performance based compensation” under Code Section 162(m).

 

SECTION 4.7                       CHANGE OF CONTROL

 

(a)             The Committee shall provide by the
terms of each Option that, upon or in connection with a Change of Control or a
Change of Control Transaction (each as defmed in Section 4.7(c)):

 

(i)         If so provided in the relevant agreement
relating to a Change of Control, such Option shall be either assumed or
replaced by a substitute option, as applicable, issued by the successor or
Parent Corporation resulting from such Change of Control Transaction, without
any further action on the part of the Committee or the Optionee, provided that
the replacement of any Option pursuant to this paragraph shall be made in a
manner that is consistent with the requirements of Code Section 409A.

 

(ii)          If no provision is made as set forth
in (i), such Option shall either (A) become fully exercisable from
and after the date which is thirty days prior to the effective date of the
Change of Control Transaction and until the normal expiration thereof or (B) be
converted automatically into the right to receive, within 30 days of the
effective date of the Change of Control Transaction, an amount in cash equal to
the difference between the aggregate exercise price for all Shares subject to
the Option (whether or not then subject to exercise) and the Fair Market Value
of such Shares on the date which is the last trading date preceding the
consummation of such Change of Control Transaction.

 

(b)             The Committee may make such
determinations and adopt such rules and conditions as it, in its absolute
discretion, deems appropriate in connection with (i) any acceleration of
exercisability pursuant to subsection (a)(ii), including, but not by way of
limitation, provisions to ensure that any such acceleration shall be conditioned
upon the consummation of the contemplated Change of Control Transaction, and (ii) determinations
regarding whether provisions for. assumption or substitution have been made as
defmed in subsection (a)(i).

 

(c)             Unless the Committee provides
otherwise, “Change of Control” means the first to occur of the following:

 

(i)            the
merger or consolidation of the Company with or into another corporation;

 

(ii)           the acquisition by another corporation person or
group of all or substantially all of the Company’s assets or 40% or more
of the Company’s then outstanding voting stock;

 

(iii)          the
liquidation or dissolution of the Company; or

 

(iv)          during
any period of 12 consecutive months, individuals who at the beginning of such
12-month period constituted the Board (together with any new directors whose
election by the Board or whose nomination
for election by the stockholders of the Company was approved by a vote
of a majority of the directors then still in office who were either directors
at the beginning of such period or whose election or nomination for election
was previously so approved) cease for any reason to constitute a majority of
the Board then in office,

 

 

6

 

provided, however, that a Change of Control will not be deemed to
have occurred in respect of a merger in which (x) the Company is the
surviving corporation, (y) no person or group acquires 40% or more of the
Company’s outstanding voting stock and (z) the Shares outstanding prior to
the merger remain outstanding thereafter; and provided
further, that a merger or consolidation will not be considered a
Change of Control if such transaction results only in the reincorporation of
the Company in another jurisdiction or its restructuring into holding company form.

 

“Change of Control Transaction”
shall mean any tender offer, offer, exchange offer, solicitation, merger,
consolidation, reorganization or other transaction that is intended to or
reasonably expected to result in a Change of Control.

 

ARTICLE V

 

EXERCISE OF OPTIONS 

 

SECTION 5.1                         PERSON
ELIGIBLE TO EXERCISE

 

During the lifetime of Optionee,
only he may exercise an Option granted to him, or any portion thereof.
After the death of the Optionee, any exercisable portion of an Option may,
prior to the time when such portion becomes unexercisable under Section 4.4
or Section 4.7, be exercised by his personal representative or by any person empowered to do so under the deceased
Optionee’s will or under the then applicable laws of descent and distribution.

 

SECTION 5.2                         PARTIAL
EXERCISE; NO FRACTIONAL SHARES

 

The Committee may, by the terms
of a Stock Option Agreement, require any partial exercise to be with
respect to a specified minimum number of shares. The Company shall not be
required to issue fractional Shares upon the exercise of Options.

 

SECTION 5.3                         MANNER
OF EXERCISE

 

An exercisable Option, or any exercisable portion
thereof, may be exercised solely by delivery to the Secretary or his office of
all of the following prior to the time when such Option or such portion becomes
unexercisable under Section 4.4 or Section 4.7:

 

(a)           Notice
in writing by the Optionee or other person then entitled to exercise such
Option or portion, stating that such Option or portion is exercised, such
notice complying with all applicable rules established by the Committee;
and

 

(b)           Full
payment:

 

(i)            By delivery of cash or a check for the Shares with
respect to which such Option or portion is thereby exercised; or

 

(ii)           To the extent
provided by the terms of the Option or otherwise with the consent of the
Committee, by delivery to the Company of Shares owned by the Optionee, duly
endorsed for transfer to the Company by the Optionee or other person then
entitled to exercise the Option or portion thereof, with Fair Market Value
determined as of the date of delivery equal to the aggregate Option price of
the Shares with respect to such Option or portion is thereby exercised;

 

Or

 

(iii)          To the extent provided by the terms of the Option or
otherwise with the consent of the Committee, by retention by the Company of
Shares to be issued with a Fair Market Value determined as of the date of
issuance equal to the aggregate Option price of the Shares with respect to
which such Option or portion is thereby exercised; or

 

7

 

(iv)         By means of any combination of the
consideration provided in the foregoing subsections (i), (ii) or (iii);
and

 

                                   (c)            On
or prior to the date the same is required to be withheld:

 

(i)            Full payment (in cash or by check) of any amount that
must be withheld by the Company, any Parent Corporation or any
Subsidiary for federal, state and/or local tax purposes in connection with the
exercise of the Option; or

 

(ii)           To the extent provided by the terms of the Option or otherwise with the consent
of the Committee, full payment by delivery to the Company of Shares
owned by the Optionee, duly endorsed for transfer to the Company by the
Optionee or other person then entitled to exercise the Option or portion
thereof, with a Fair Market Value determined as of the date of delivery equal
to the amount that must be withheld by the Company, any Parent Corporation or
any Subsidiary for federal, state and/or local tax purposes in connection with
the exercise of the Option; or

 

(iii)          To the extent provided by the terms of the Option or otherwise with the
consent of the Committee, full payment by retention by the Company of
Shares to be issued with a Fair Market Value determined as of the date of
issuance equal to the amount that must be withheld by the Company, any Parent
Corporation or any Subsidiary for federal, state and/or local tax purposes in
connection with the exercise of the Option; or

 

(iv)          Any combination of payments provided for in the foregoing subsections
(i), (ii) or (iii); and

 

   (d)           Such
representations and documents as the Committee, in its absolute discretion,
deems

necessary or advisable to effect compliance with all applicable provisions of
the Securities Act and any other federal or state securities laws or
regulations. The Committee may, in its absolute discretion, also take whatever
additional actions it deems appropriate to effect such compliance including,
without limitation, placing legends on Shares certificates and issuing
stop-transfer orders to transfer agents and registrars; and

 

   (e)            In
the event that the Option or portion thereof shall be exercised pursuant to Section 5.1

by any person or persons other than the Optionee, appropriate proof of the
right of such person or persons to exercise the Option or portion thereof.

 

SECTION 5.4                        CONDITIONS
TO ISSUANCE OF STOCK CERTIFICATES

 

The
Shares issuable and deliverable upon the exercise of any Option, or any portion
thereof, may be either previously authorized but unissued Shares or issued
Shares which have been reacquired by the Company. The Company shall not be
required to issue or deliver any certificate or certificates for Shares
purchased upon the exercise of any Option or portion thereof prior to
fulfillment of all of the following conditions:

 

(a)             The
admission of such Shares to listing on all stock exchanges on which such class
of stock is then listed; and

 

(b)             The completion of any registration
or other qualification of such Shares under any state or federal law or under
the rulings or regulations of the Securities and Exchange Commission or any
other governmental regulatory body, which the Committee shall, in its absolute
discretion, deem necessary or advisable; and

 

(c)             The obtaining of any approval or
other clearance from any state or federal governmental agency which the Committee
shall, in its absolute discretion, determine to be necessary or advisable; and

 

(d)             The lapse of such reasonable period
of time following the exercise of the Option as the Committee may establish
from time to time for reasons of administrative convenience.

 

 

8

 

SECTION 5.5                        RIGHTS AS SHAREHOLDERS

 

The holders of Options shall not be, nor have any of the
rights or privileges of, shareholders of the Company in respect of any
Shares purchasable upon the exercise of any part of an Option unless and until
certificates representing such Shares have been issued by the Company to such
holders.

 

SECTION 5.6                        NO OPTION REPRICING; NO
RELOAD OPTIONS

 

Without
the approval of stockholders, the Company shall not (a) reprice any
Options or (b) provide for “reload options,” which means that unless
approved by stockholders the Company shall not provide for Options to be
granted automatically in connection with and to the extent of the exercise of
other Options. For purposes of this Plan, the term “reprice” means amending,
canceling or replacing Options within the meaning of Item 402(i) under
Securities and Exchange Commission Regulation S-K including by (i) reducing
the exercise price of outstanding Options and (ii) canceling outstanding
Options and granting new Options to the holders of canceled Options.

 

ARTICLE VI

 

STOCK APPRECIATION RIGHTS

 

SECTION 6.1                        ELIGIBILITY

 

Any Employee of the Company or of any corporation
which is then a Parent Corporation or a Subsidiary (except as provided in Section 11.1)
shall be eligible to be issued Stock Appreciation Rights, except an Officer or
Director of the Company required to file reporting forms pursuant to Section 16
of the Exchange Act.

 

SECTION 6.2                        GRANTING OF STOCK
APPRECIATION RIGHTS

 

(a)             The Committee shall from time to
time, in its absolute discretion:

 

(i)            Select from among the Employees (including those to whom
Options, Stock Appreciation Rights and/or Restricted Stock Rights have
been previously granted and/or Restricted Stock, Stock Awards and/or
Performance Units have been previously issued) such of them as in its opinion
should be granted Stock Appreciation Rights; and

 

(ii)           Determine the
amount of Stock Appreciation Rights to be granted to such selected
Employees; and

 

(iii)          Determine the terms and conditions applicable to
such Stock Appreciation Rights, consistent with this Plan.

 

(b)             Stock Appreciation Rights may be
granted (i) in connection and simultaneously with the grant of
Options, (ii) with respect to previously granted Options or (iii) not
in connection with Options.

 

SECTION 6.3                        TERMS AND CONDITIONS

 

A Stock Appreciation Right shall be subject to such
terms and conditions not inconsistent with this Plan as the Committee shall
impose, including the following:

 

(a)             A
Stock Appreciation Right granted in connection with a particular Option shall
be exercisable only to the extent the related Option is exercisable.

 

(b)             A
Stock Appreciation Right granted in connection with a particular Option shall
be granted to the Optionee to the maximum extent of 100% of the number of
Shares subject to the Option.

 

 

9

 

(c)             A Stock
Appreciation Right granted in connection with a particular Option shall entitle
the Optionee (or other person entitled to exercise the Option pursuant to Section 5.1)
to surrender unexercised a portion of the Option to which the Stock Appreciation
Right relates to the Company and to receive from the Company in exchange
therefor an amount, payable in cash or, in the discretion of the Committee,
Shares, determined by multiplying the difference obtained by subtracting the
Option exercise price per share of the Company’s Common Stock subject to the
related Option from the Fair Market Value of a Share of the Company’s Common
Stock determined as of the date of exercise of the Stock Appreciation Right by
the number of Shares subject to the related Option with respect to which the
Stock Appreciation Right shall have been exercised.

 

(d)             A Stock
Appreciation Right not granted in connection with a simultaneously or previously
granted Option shall entitle the Participant to receive from the Company an
amount, payable in cash or, in the discretion of the Committee, Shares,
measured by reference to the increase, if any, in the Fair Market Value of the
Company’s Common Stock determined over the period from the date the Stock
Appreciation Right was granted through and including the date the Stock
Appreciation Right is exercised.

 

SECTION 6.4                                                                     EXERCISE
OF STOCK APPRECIATION RIGHTS

 

No Stock Appreciation Right granted in connection with
a particular Option shall be exercisable during the first six months after
grant.

 

ARTICLE VII

 

ISSUANCE OF RESTRICTED STOCK AND
RESTRICTED STOCK RIGHTS

 

SECTION 7.1                                                                     ELIGIBILITY

 

Any Employee of the Company or of any corporation
which is then a Parent Corporation or a Subsidiary (except as provided in Section 11.1)
shall be eligible to be issued Restricted Stock and Restricted Stock Rights,
except an Officer or Director of the Company required to file reporting forms
pursuant to Section 16 of the Exchange Act.

 

SECTION 7.2                                                                     ISSUANCE OF RESTRICTED STOCK AND RESTRICTED STOCK
RIGHTS

 

(a)              The
Committee shall from time to time, in its absolute discretion:

 

(i)            Select from among the Employees (including those to whom
Options, Stock Appreciation Rights and/or Restricted Stock Rights have
been previously granted and/or Restricted Stock, Stock Awards and/or
Performance Units have been previously issued) such of them as in its opinion
should be issued Restricted Stock and/or granted Restricted Stock Rights; and

 

(ii)           Determine the
number of shares of Restricted Stock to be issued and the amount of Restricted
Stock Rights to be granted to such selected Employees; and

 

(iii)          Determine the terms, conditions and Restrictions
applicable to such Restricted Stock and Restricted Stock Rights, consistent
with this Plan.

 

(b)             Shares issued as Restricted Stock
may be either previously authorized but unissued Shares or issued Shares which
have been acquired by the Company. The Committee shall establish the price to
be paid by a Restricted Stockholder for the issuance of Restricted Stock, which
price shall not be less than the minimum consideration required by applicable
law.

 

 

10

 

(c)             Shares to be issued at the end of the term of a
Restricted Stock Right may be either previously authorized but unissued
Shares or issued Shares which have been acquired by the Company. The Committee shall establish the consideration to be
furnished by the Participant in exchange for the grant of Restricted Stock
Rights and the issuance of Shares pursuant thereto, which consideration may
include services to be rendered to the Company prior to the issuance of
such shares.

 

(d)           Upon the selection of an Employee to be issued Restricted
Stock or granted Restricted Stock Rights, the Committee shall instruct the
Secretary to issue such Restricted Stock or grant such Restricted Stock Rights
and may impose such conditions on the issuance of such Restricted Stock or
grant of such Restricted Stock Rights as it deems appropriate.

 

ARTICLE VIII

 

TERMS OF RESTRICTED STOCK AND RESTRICTED STOCK RIGHTS

 

SECTION 8.1                                                                     RESTRICTED
STOCK AGREEMENT

 

Restricted Stock shall be issued only pursuant to a
written Restricted Stock Agreement, which shall be executed by the Restricted
Stockholder and an authorized Officer of the Company and which shall contain
such terms and conditions as the Committee shall determine, consistent with
this Plan.

 

SECTION 8.2                                                                       RESTRICTED
STOCK RIGHT AGREEMENT

 

Restricted Stock Rights shall be issued only pursuant
to a written Restricted Stock Right Agreement, which shall be executed by the
Participant and an authorized Officer of the Company and which shall contain
such terms and conditions as the Committee shall determine, consistent with
this Plan.

 

SECTION 8.3                                                                       CONSIDERATION

 

As partial consideration for the issuance of
Restricted Stock or the grant of Restricted Stock Rights, the Participant shall
agree, in the written Restricted Stock Agreement or Restricted Stock Right
Agreement, to remain in the employ of the Company, a Parent Corporation or a
Subsidiary for a period of at least one year after the Restricted Stock is
issued or the Restricted Stock Rights are granted. Nothing in this Plan or in
any Restricted Stock Agreement or Restricted Stock Right Agreement hereunder
shall confer upon any Participant any right to continue in the employ of the
Company, any Parent Corporation or any Subsidiary or shall interfere with or
restrict in any way the rights of the Company, its Parent Corporations and its
Subsidiaries, which are hereby expressly reserved, to terminate or discharge
any Participant at any time. for any reason whatsoever, with or
without cause.

 

SECTION 8.4                                                                       RIGHTS
AS SHAREHOLDERS

 

(a)           Upon
delivery of the shares of Restricted Stock to the escrow holder pursuant to Section 8.8,
the Restricted Stockholder shall have all the rights of a stockholder with
respect to said shares, subject to the restrictions in his Restricted Stock
Agreement, including the right to vote the shares and to receive all dividends
or other distributions paid or made with respect to the shares.

 

(b)           The
holder of a Restricted Stock Right shall not be, nor have any of the rights or
privileges of, a shareholder of the Company in respect of any Shares issuable
upon the end of the term of a Restricted Stock Right unless and until a
certificate representing such Shares has been issued by the Company to such
holder.

 

SECTION 8.5                                                                       RESTRICTIONS

 

All shares of Restricted Stock issued (including any
shares received by holders thereof as a result of stock dividends, stock splits
or any other forms of recapitalization) and all Restricted Stock Rights granted
under this Plan shall be subject to such Restrictions as the Committee shall
provide in the terms of each individual

 

 

11

 

Restricted Stock Agreement or Restricted Stock Right Agreement; provided, however, that by a resolution
adopted after the Restricted Stock is issued or the Restricted Stock Rights are
granted, the Committee may, on such terms and conditions as it may
determine to be appropriate, remove any or all of the Restrictions imposed by
the terms of the Restricted Stock Agreement or Restricted Stock Right
Agreement. All Restrictions shall expire within ten years of the date of
issuance. Restricted Stock may not be sold or encumbered until all Restrictions
are terminated or expire.

 

SECTION 8.6                                                                     FORFEITURE

 

The Committee shall provide in
the’ terms of each individual Restricted Stock Agreement or Restricted Stock
Right Agreement that the Restricted Stock or Restricted Stock Rights then
subject to Restrictions be forfeited by the Participant back to the
Company immediately upon a Termination of Employment for any reason during the
Restricted Period; provided, however, that
provision may be made that no such forfeiture shall occur in the event of a
Termination of Employment because of the Employee’s normal retirement, death,
total disability or early retirement with the consent of the Committee.

 

SECTION 8.7                                                                     MERGER,
CONSOLIDATION, ACQUISITION, LIQUIDATION OR  DISSOLUTION

 

The Committee may provide, in the terms of the individual
Restricted Stock Agreement or Restricted Stock Right Agreement, that upon the
merger or consolidation of the Company with or into another corporation, the
acquisition by another corporation or person of all or substantially all of the
Company’s assets or 40% or more of the Company’s then outstanding voting stock
or the liquidation of the Company, the Restrictions relating to some or all
shares of Restricted Stock or Restricted Stock Rights then outstanding shall
immediately expire and/or that some or all of such shares or Restricted Stock
Rights shall cease to be subject to forfeiture under Section 8.6.

 

SECTION 8.8                                                                     ESCROW

 

The Secretary or such other escrow holder as the
Committee may appoint shall retain physical custody of the certificates
representing Restricted Stock until all of the restrictions imposed under the
Restricted Stock Agreement expire or shall have been removed; provided, however, that in no event shall
any Restricted Stockholder retain physical custody of any certificates
representing Restricted Stock issued to him.

 

SECTION 8.9                                                                     LEGEND

 

In order to enforce the restrictions imposed upon
shares of Restricted Stock hereunder, the Committee shall cause a legend or
legends to be placed on certificates representing all shares of Restricted Stock
that are still subject to Restrictions under Restricted Stock Agreements, which
legend or legends shall make appropriate reference to the conditions imposed
thereby.

 

ARTICLE IX

 

ISSUANCE OF STOCK AWARDS

 

SECTION 9.1                                                                     ELIGIBILITY

 

Any Employee of the Company or of any corporation
which is then a Parent Corporation or a Subsidiary (except as provided in Section 11.1)
shall be eligible to be issued Stock Awards, except an Officer or Director of
the Company required to file reporting forms pursuant to Section 16 of
the. Exchange Act.

 

 

12

 

SECTION 9.2                                                                            ISSUANCE
OF STOCK AWARDS

 

(a)           The Committee shall
from time to time, in its absolute discretion:

 

(i)           Select from among the Employees (including those to whom
Options, Stock Appreciation Rights
and/or Restricted Stock Rights have been previously granted and/or Restricted
Stock, Stock Awards and/or Performance Units have been previously issued) such
of them as in its opinion should be issued Stock Awards; and

 

(ii)          Determine the number of Shares to be issued to such
selected Employees.

 

(b)           Shares issued as Stock Awards may be
either previously authorized but unissued Shares or issued Shares which
have been acquired by the Company.

 

(c)           Stock Awards shall be issued for
legal consideration (which may include previous or future services, as
permitted by law) but no other payment. Capital stock issued pursuant to a
Stock Award shall not be subject to Restrictions or forfeiture by the terms of
this Plan.

 

ARTICLE X

 

ISSUANCE OF PERFORMANCE UNITS

 

SECTION 10.1                                                                     ELIGIBILITY

 

Any Employee of the Company or of any corporation
which is then a Parent Corporation or a Subsidiary (except as provided in Section 11.1)
shall be eligible to be issued Performance Units, except an Officer or Director
of the Company required to file reporting forms pursuant to Section 16 of
the Exchange Act.

 

SECTION 10.2                                                                     ISSUANCE
OF PERFORMANCE UNITS

 

The
Committee shall from time to time, in its absolute discretion:

 

(a)          Select from among the Employees (including those to whom
Options, Stock Appreciation Rights and/or Restricted Stock Rights have
been previously granted and/or Restricted Stock, Stock Awards and/or
Performance Units have been previously issued) such of them as in its opinion
should be issued Performance Units; and

 

(b)        Determine the terms and conditions
applicable to such Performance Units, consistent with this Plan.

 

SECTION 10.3                                                                     TERMS
OF PERFORMANCE UNITS

 

(a)           At the time that Performance Units
are issued, the Committee shall designate certain goals for the financial and
other business performance of the Company, its Parent Corporations and its.
Subsidiaries and the Performance Period over which such goals are to be
achieved. Such designated goals must be achieved in order for a Participant to
receive the full value of the Performance Units following the end of the
Performance Period. To the extent earned upon the achievement of such
designated goals during the Performance Period, all Performance Units shall be
payable in cash as soon as practicable following the end of the Performance
Period, but in no event will payment be made after March 15 of the year
following the year in which the Performance Period ends.

 

(b)           The Committee shall determine the
terms and conditions of the Performance Units, consistent with this Plan. The
Committee shall provide by the terms of each individual Performance Unit that
the Performance Unit be forfeited by the Participant back to the Company
immediately upon a Termination of Employment for any reason during the
Performance Period; provided, however, that
provision may be made that no such forfeiture shall occur in the event of a
Termination of Employment because of the Participant’s normal retirement,
death, total disability or early retirement with the consent of the Committee.

 

 

13

 

ARTICLE XI

 

ADMINISTRATION

 

SECTION 11.1                                                                     COMMITTEE

 

(a)             This Plan shall be administered by the Compensation
Committee of the Board, as appointed from time to time by the Board, provided,
however, that (i) with respect to any Award that is intended to
satisfy the conditions of Rule 16b-3 under the Exchange Act, the term “Committee”
shall refer to a committee of two or more “non-employee
directors” as determined for purposes of applying Exchange Act Rule 16b-3;
and (ii) with respect to any Award that is intended to qualify as “performance-based
compensation” within the meaning of Section 162(m) of the Code, the
term “Committee” shall refer to a committee of two or more “outside directors”
as determined for purposes of applying Code Section 162(m).
Notwithstanding any other provision in this Plan, no Options or Stock
Appreciation Rights may be granted and no Restricted Stock, Stock Awards or
Performance Units may be issued to any member of the Committee during the term
of his membership on the Committee. No person shall be eligible to serve on the
Committee unless he is then a “disinterested person” within the meaning of Rule 16b-3
under the Exchange Act, if and as such Rule is then in effect.

 

(b)           Appointment
of Committee members shall be effective upon acceptance of appointment.
Committee members may resign at any time by delivering written notice to the
Board. Vacancies in the Committee shall be filled by the Board.

 

(c)           The
Board or the Committee may from time to time appoint one or more Sub-Committees
comprised of one or more Directors, which Sub-Committee shall have the powers
of the Committee described in Articles III
and IV of this Plan except for those powers described in
Sections 3.2(b), 4.3, 4.6 and 4.7. Each such sub-Committee may be
subject to any such additional restrictions or limitations as the Board or the
Committee may impose at any time. Each Sub-Committee so appointed may be
disbanded by the Board or the Committee at any time, provided
that no such termination shall affect the validity of any Option
theretofore approved by any such Sub-Committee. The Committee may designate the
Secretary of the Company or other Company employees to assist the Committee in
the administration of this Plan, and may grant authority to such persons to
execute agreements evidencing Awards made under this Plan or other documents
entered into under this Plan on behalf of the Committee or the Company.

 

SECTION 11.2                                                                     DUTIES AND POWER OF COMMITTEE

 

It shall be the duty of the Committee to conduct the
general administration of this Plan in accordance with its provisions. The
Committee shall have the power to interpret.this Plan, Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Rights, Stock Awards
and Performance Units and to adopt such rules for the administration,
interpretation and application of this Plan as are consistent therewith and to
interpret, amend or revoke any such rules. In its absolute discretion, the
Board may at any time and from time to time exercise any and all rights and
duties of the Committee under this Plan.

 

SECTION 11.3                                                                     MAJORITY RULE

 

The Committee shall act by a majority of its members
in office. The Committee may act either by vote at a meeting or by a memorandum
or other written instrument signed by a majority of the Committee.

 

SECTION 11.4                                                                     COMPENSATION; PROFESSIONAL ASSISTANCE; GOOD FAITH
ACTIONS

 

Members of the Committee shall receive such compensation
for their services as members as may be determined by the Board. All expenses
and liabilities incurred by members of the Committee in connection with the administration of this Plan shall be borne by
the Company. The Committee may, with the approval of the Board, employ
attorneys, consultants, accountants, appraisers, brokers or other persons. The
Committee, the Company and its Officers and Directors shall be entitled to rely
upon the advice, opinions or valuations of any such persons. All actions taken
and all interpretations and determinations made by the Committee in good faith
shall be

 

 

14

 

final and binding upon all Optionees, the Company and
all other interested persons. No member of the Committee shall be personally liable for any action,
determination or interpretation made in good faith with respect to this Plan or
the Options, and all members of the Committee shall be fully protected by the
Company in respect to any such action, determination or interpretation.

 

ARTICLE XII

 

OTHER PROVISIONS

 

SECTION 12.1                                                                     RIGHTS
NOT TRANSFERABLE

 

Unless the agreement or other document evidencing an
Award (or an amendment thereto authorized
by the Committee) expressly states that the Award is transferable as provided
hereunder, no Award granted under this Plan, nor any interest in such
Award, may be sold, assigned, conveyed, gifted, pledged, hypothecated or
otherwise transferred in any manner prior to the vesting or lapse of any and
all restrictions applicable thereto, other
than by will or the laws of descent and distribution or pursuant to a “domestic
relations order,” as defined in the Code. The Committee may grant an
Award or amend an outstanding Award to provide that the Award is transferable
or assignable to a member or members of the Participant’s “immediate family,”
as such term is defined in Rule 16a-1(e) under the Exchange Act, or
to a trust for the benefit solely of a member or members of the Participant’s
immediate family, or to a partnership or other entity whose only owners are
members of the Participant’s immediate family, provided
that following any such transfer or assignment the Award will remain
subject to substantially the same terms applicable to the Award while held by
the Participant, as modified as the Committee shall determine appropriate, and
the transferee shall execute an agreement agreeing to be bound by such terms.

 

SECTION 12.2                                                                     FINANCING

 

The Committee may not provide financing to a
Participant to pay the purchase price of any Award or to pay the amount of
taxes required by law to be withheld with respect to any Award.

 

SECTION 12.3                                                                     AMENDMENT, SUSPENSION OR TERMINATION OF THIS PLAN

 

This Plan shall become effective
upon its approval by the Board. Unless earlier suspended or terminated by the
Board, or extended as provided below, no options may be granted after the tenth
anniversary of the effective date of this Plan. The Board or the Committee may
from time to time extend the effective term of this Plan and otherwise amend this Plan as determined
appropriate, without action by the Company’s’ stockholders except to the extent required by applicable law. References in
this Plan and in writings evidencing and setting the terms of option grants
which refer to the Code or other applicable law shall also be deemed to refer
to any applicable successor provisions thereof unless otherwise determined by
the Committee. This Plan may be earlier terminated at such earlier time
as the Board may determine.  Notwithstanding
the foregoing, no amendment, suspension or termination of this Plan or any
document evidencing an Award under the Plan shall cause all or a part of the
payment under any Award to be subject to additional tax under Code Section 409A.

 

SECTION 12.4                                                                     EFFECT
OF PLAN UPON OTHER OPTION AND COMPENSATION PLANS

 

The
adoption of this Plan shall not affect any other compensation or incentive
plans in effect for the Company, any Parent Corporation or any Subsidiary.
Nothing in this Plan shall be construed to limit the right of the Company, any
Parent Corporation or any Subsidiary (a) to establish any other forms of
incentives or compensation for employees of the Company, and Parent Corporation
or any Subsidiary or (b) to grant or assume options, stock appreciation
rights or restricted stock rights or to issue or award restricted or
unrestricted stock or performance units otherwise than under this Plan in
connection with any proper corporate purpose, including, but not by way of
limitation, the grant or assumption of options, stock appreciation rights or
restricted stock rights or the issuance or award of restricted or unrestricted
stock or performance units in connection with the acquisition by purchase,
lease, merger, consolidation or otherwise, of the business, stock or assets of
any corporation, firm or association.

 

 

15

 

SECTION 12.5                                                                     COMPLIANCE
WITH CODE SECTION 409A.

 

Some of the Awards that
may be granted pursuant to the Plan (including, but not necessarily limited to
Restricted Stock Rights and Performance Units Awards) may be considered to be “non-qualified
deferred compensation” subject to Code Section 409A.  If an Award is subject to Code Section 409A,
the document evidencing such Award and this Plan are intended to comply fully
with and meet all of the requirements of Code Section 409A.  The document evidencing such Award shall
include such provisions as may be necessary to assure compliance with Code Section 409A.  An Award subject to Code Section 409A
also shall be administered in good faith compliance with the provisions of Code
Section 409A as well as applicable guidance issued by the Internal Revenue
Service and the Department of Treasury. 
To the extent necessary to comply with Code Section 409A, any Award
that is subject to Code Section 409A may be modified, replaced or
terminated in the discretion of the Committee. 
Notwithstanding any provision of this Plan or any document evidencing an
Award to the contrary, in the event that the Committee determines that any
Award is or may become subject to Code Section 409A, the Company may adopt
such amendments to the Plan and the related documents evidencing any Awards,
without the consent of the Participant, or adopt other policies and procedures
(including amendments, policies and procedures with retroactive effective
dates), or take any other action that the Committee determines to be necessary
or appropriate to either comply with Code Section 409A or to exclude or
exempt the Plan or any Award from the requirements of Code Section 409A.

 

 

 

 

16

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