Document:

Exhibit
4.4F

SIXTH
SUPPLEMENTAL INDENTURE

THIS SIXTH SUPPLEMENTAL INDENTURE is dated
as of April 17, 2006, among STEEL DYNAMICS, INC., an Indiana corporation (the “Company”),
SDI INVESTMENT COMPANY, a Delaware corporation, (the “Initial Subsidiary
Guarantor”), STLD HOLDINGS, INC. an Indiana corporation (“STLD Holdings”),
FERROUS RESOURCES, LLC, an Indiana limited liability company (“Ferrous
Resources”), STEEL DYNAMICS SALES NORTH AMERICA, INC., an Indiana
corporation (“Sales NA”) NEW MILLENNIUM BUILDING SYSTEMS, LLC, an
Indiana limited liability company (“NMBS”), STEEL HOLDINGS, INC., an
Indiana corporation (“Steel Holdings”), STEEL DYNAMICS FERROUS
RESOURCES, LLC, an Indiana limited liability company (“SDFR”) (STLD
Holdings, Ferrous Resources, Sales NA, NMBS, Steel Holdings and SDFR may
individually be referred to as the “Additional Subsidiary Guarantor” and
collectively as the “Additional Subsidiary Guarantors”), ROANOKE
ELECTRIC STEEL CORPORATION, an Indiana corporation (“RESC”), JOHN W.
HANCOCK, JR., LLC a Virginia limited liability company (“Hancock”), NEW
MILLENNIUM BUILDING SYSTEMS, INC., a South Carolina corporation (“New
Millennium”), SOCAR OF OHIO, INC., an Ohio corporation (“Socar”),
STEEL OF WEST VIRGINIA, INC., a Delaware corporation (“Steel of West
Virginia”), STEEL VENTURES, INC., a Delaware corporation (“Steel
Ventures”), SWVA, INC., a Delaware corporation (“SWVA”), MARSHALL
STEEL, INC., a Delaware corporation (“Marshall”), and SHREDDED PRODUCTS
CORP.,  a Delaware corporation (“Shredded Products”)
(RESC, New Millennium, Socar, Steel of West Virginia, Steel Ventures, SWVA,
Marshall and Shredded Products may individually be referred to as a “New
Subsidiary Guarantor” and collectively as the “New Subsidiary Guarantors”),
and THE BANK OF NEW YORK TRUST COMPANY, N.A., as trustee (the “Trustee”).

RECITALS:

The
Company, the Initial Subsidiary Guarantor and the Trustee have duly authorized,
executed and delivered an Indenture dated as of March 26, 2002 (the “Original
Indenture”) in connection with the issuance initially of up to $200,000,000
aggregate principal amount of the Company’s 91⁄2% Senior Notes due 2009 (the “Notes”)
as provided in the Original Indenture.

The
Company, the Initial Subsidiary Guarantor, Dynamic Bar Products, LLC, an
Indiana limited liability company and wholly owned subsidiary of the Company (“Bar
Products”), and the Trustee entered into a First Supplemental Indenture
dated as of September 6, 2002.

The
Company, the Initial Subsidiary Guarantor, Bar Products, STLD Holdings, Ferrous
Resources and the Trustee entered into a Second Supplemental Indenture dated as
of September 30, 2002.

The
Company, the Initial Subsidiary Guarantor, Bar Products, STLD Holdings, Ferrous
Resources, Sales NA and the Trustee entered into a Third Supplemental Indenture
dated as of December 31, 2002 and a Fourth Supplemental Indenture dated as of
November 26, 2003.

The
Company and Bar Products entered into an Agreement and Plan of Merger with an
effective date of December 31, 2004, under the terms of which Bar Products was
merged with and into the Company in accordance with the applicable laws of the
State of Indiana as of December 31, 2004.

The
Company, the Initial Subsidiary Guarantor, Bar Products, STLD Holdings, Ferrous
Resources, Sales NA, NMBS, Steel Holdings, SDFR and the Trustee entered into a
Fifth Supplemental Indenture dated as of January 1, 2006.

The
Bank of New York Trust Company, N.A. is the successor in interest to Fifth
Third Bank, as Trustee, having acquired Fifth Third Bank’s corporate trust
business.

This
Sixth Supplemental Indenture is being executed and delivered by the Company,
the Initial Subsidiary Guarantor, the Additional Subsidiary Guarantors and the
New Subsidiary Guarantors pursuant to the provisions of Section 4.20 and
Section 9.01(2) of the Original Indenture.

This Sixth Supplemental
Indenture (together with the Original Indenture, the First Supplemental
Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture,
the Fourth Supplemental Indenture and the Fifth Supplemental Indenture,
collectively the “Indenture”) is subject to, and shall be governed by,
the provisions of the Trust Indenture Act of 1939, as amended, that are
required to be a part of and to govern indentures qualified under the Trust
Indenture Act of 1939, as amended.

AND THIS SIXTH SUPPLEMENTAL INDENTURE FURTHER
WITNESSETH:

For and in consideration
of the premises, it is mutually covenanted and agreed, for the equal and
proportionate benefit of all Holders, as follows:

ARTICLE ONE

Guaranty of Notes

Section 1.01.          Note Guarantee; Limitation of
Liability.  (a) Subject to the
provisions of Article Ten of the Original Indenture, the New Subsidiary
Guarantors hereby, jointly and severally with the Initial Subsidiary Guarantor
and the Additional Subsidiary Guarantors, fully and unconditionally guarantee
to each Holder of Notes and to the Trustee on behalf of the Holders:  (i) the due and punctual payment of the
principal of, premium, if any, on and interest on each Note, when and as the
same shall become due and payable, whether at maturity, by acceleration or
otherwise, the due and punctual payment of interest on the overdue principal of
and interest, if any, on the Notes, to the extent lawful, and the due and
punctual performance of all other obligations of the Company to the Holders or
the Trustee, all in accordance with the terms of such Note, the Original
Indenture, the First Supplemental Indenture, the Second Supplemental Indenture,
the Third Supplemental Indenture, the Fourth Supplemental Indenture,

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the Fifth Supplemental Indenture and this Sixth
Supplemental Indenture and (ii) in the case of any extension of time of payment
or renewal of any Notes or any of such other obligations, that the same will be
promptly paid in full when due or performed 
in accordance with the terms of the extension or renewal, at Stated
Maturity, by acceleration or otherwise, subject,
however, in the case of clauses (i) and (ii) above, to the
limitations set forth in the second paragraph of Section 10.01 of the Original
Indenture.

(b)           The undersigned, and by their
acceptance of this Sixth Supplemental Indenture, hereby confirm that it is the
intention of all such Persons that this Sixth Supplemental Indenture, the
Original Indenture, the First Supplemental Indenture, the Second Supplemental
Indenture, the Third Supplemental Indenture, the Fourth Supplemental Indenture
and the Fifth Supplemental Indenture and the obligations of the undersigned
hereunder and thereunder not constitute a fraudulent transfer or conveyance for
purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act or any similar foreign, federal or state law to the
extent applicable to this Sixth Supplemental Indenture, the Original Indenture,
the First Supplemental Indenture, the Second Supplemental Indenture, the Third
Supplemental Indenture, the Fourth Supplemental Indenture and the Fifth
Supplemental Indenture, and the obligations of the undersigned hereunder and
thereunder.  To effectuate the foregoing
intention, the undersigned hereby irrevocably agree that the obligations of the
undersigned under this Sixth Supplemental Indenture, the Original Indenture,
the First Supplemental Indenture, the Second Supplemental Indenture, the Third
Supplemental Indenture the Fourth Supplemental Indenture and the Fifth
Supplemental Indenture at any time shall be limited to the maximum amount as
will result in the obligations of the undersigned under this Sixth Supplemental
Indenture, the Original Indenture, the First Supplemental Indenture, the Second
Supplemental Indenture, the Third Supplemental Indenture, the Fourth
Supplemental Indenture and the Fifth Supplemental Indenture not constituting a
fraudulent transfer or conveyance.

Section
1.02.          Obligations under the
Original Indenture.  The New
Subsidiary Guarantors hereby jointly and severally agree, as of the date first
above written, to be bound as a Subsidiary Guarantor by all of the terms and
conditions of the Original Indenture to the same extent as each of the other
Subsidiary Guarantors thereunder.  The
New Subsidiary Guarantors further jointly and severally agree, as of the date
first above written, that each reference in the Original Indenture to a “Subsidiary Guarantor” shall
also mean and be a reference to each of the New Subsidiary Guarantors, and each
reference in any of the Notes to a “Subsidiary
Guarantor” shall also mean and be a reference to each of the New
Subsidiary Guarantors.

Section
1.03.          Covenants and Agreements.  The New Subsidiary Guarantors jointly and
severally make each covenant and agreement set forth in Article Ten of the
Original Indenture to the same extent as each other Subsidiary Guarantor.

ARTICLE TWO

Miscellaneous

Section
2.01.          Remainder of Original
Indenture Unaffected.  Except as
specifically provided in Article One above, the terms of the Original Indenture
shall remain unchanged and

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in full force and
effect, and shall govern the interpretation and application of this Sixth
Supplemental Indenture.

Section
2.02.          Duplicate Originals;
Delivery by Telecopier.  The parties
may sign any number of copies of this Sixth Supplemental Indenture.  Each signed copy shall be an original, but
all of them together represent the same agreement.  Delivery of an executed counterpart of a
signature page to this Sixth Supplemental Indenture by telecopier shall be
effective as delivery of an original executed counterpart of this Sixth
Supplemental Indenture.

Section
2.03.          Separability.  In case any provision in this Sixth
Supplemental Indenture shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

[End of Article
Two]

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SIGNATURES

IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed, all as of the
date first written above.

	
  “Company”

  	
   

  	
  STEEL DYNAMICS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E. Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley,
  Vice President and CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Initial
  Subsidiary Guarantor”

  	
   

  	
  SDI INVESTMENT COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Theresa E.
  Wagler

  	
   

  
	
   

  	
   

  	
   

  	
  Theresa E. Wagler, President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Additional
  Subsidiary Guarantor”

  	
   

  	
  STLD HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Additional
  Subsidiary Guarantor”

  	
   

  	
  FERROUS RESOURCES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Additional
  Subsidiary Guarantor”

  	
   

  	
  STEEL DYNAMICS SALES NORTH AMERICA,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Secretary and CFO

  

 

 5
 

 

	
  “Additional Subsidiary
  Guarantor”

  	
   

  	
  NEW MILLENNIUM BUILDING SYSTEMS,

  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President of Steel Dynamics,
  Inc., sole member of New Millenium Building Systems, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Additional
  Subsidiary Guarantor”

  	
   

  	
  STEEL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley 

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Additional
  Subsidiary Guarantor”

  	
   

  	
  STEEL DYNAMICS FERROUS RESOURCES,

  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Steel Holdings, Inc., its manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “Trustee”

  	
   

  	
  THE BANK OF NEW YORK TRUST COMPANY, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ 

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “New Subsidiary
  Guarantor”

  	
   

  	
  ROANOKE ELECTRIC STEEL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President

  

 

 6
 

 

	
  “New Subsidiary Guarantor”

  	
   

  	
  JOHN W. HANCOCK, JR., LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “New Subsidiary
  Guarantor”

  	
   

  	
  NEW MILLENNIUM BUILDING SYSTEMS,

  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “New Subsidiary
  Guarantor”

  	
   

  	
  SOCAR OF OHIO, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “New Subsidiary
  Guarantor”

  	
   

  	
  STEEL OF WEST VIRGINIA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “New Subsidiary
  Guarantor”

  	
   

  	
  STEEL VENTURES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President

  

 7
 

 

	
  “New Subsidiary Guarantor”

  	
   

  	
  SWVA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “New Subsidiary
  Guarantor”

  	
   

  	
  MARSHALL STEEL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  “New Subsidiary
  Guarantor”

  	
   

  	
  SHREDDED PRODUCTS CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Gary E.
  Heasley

  	
   

  
	
   

  	
   

  	
   

  	
  Gary E. Heasley, Vice President

  

 

 8EXHIBIT 10.41

STEEL
DYNAMICS, INC.

2006
EQUITY INCENTIVE PLAN

1.             Purpose of the Plan and Available
Awards.

1.1           Purpose.  The
Steel Dynamics, Inc. 2006 Equity Incentive Plan (the “Plan”) will replace the
Steel Dynamics, Inc. Amended and Restated 1996 Incentive Stock Option Plan (the
“1996 Plan”) and the Steel Dynamics, Inc. Non-Employee Director Stock
Option Plan (the “Director Plan”), both of which were previously approved by
Steel Dynamics’ stockholders.  The
purpose of the Plan, which will become effective upon approval by our
stockholders (the “Effective Date”), as contemplated by Section 1.2, is to
establish incentives designed to motivate Plan Participants, as defined in
Section 2.38, to put forth maximum effort toward the success and growth of
our company and to attract and retain qualified persons who by their
experience, skill and diligence are able to make important contributions to our
success.  To accomplish these objectives,
the Plan provides for awards of equity based incentives through the grant of
Options, Restricted Stock Awards, Unrestricted Stock Awards, Stock Appreciation
Rights and Performance Awards to Eligible Employees and the grant of
Nonstatutory Stock Options, Restricted Stock Awards, Stock Appreciation Rights
and Performance Awards to Eligible Directors, all subject to the conditions
described in the Plan.

1.2           Establishment.  The
Effective Date of the Plan is the later to occur of May 18, 2006 or the
date on which the holders of a majority of the outstanding shares of the
Company’s common stock present, or represented, and entitled to vote at the
Steel Dynamics 2006 Annual Meeting of Shareholders approve the Plan, which
approval must occur within twelve months after May 18, 2006.  No Awards under the Plan may be granted prior
to the date of stockholder approval.

1.3           Prior Plans.  A
total of 758,903 shares under the 1996 Plan, and 14,540 shares under the
Director Plan, remain available for issuance of options, but these shares will
be withdrawn and de-authorized upon approval of this Plan by our
stockholders, and no further options will be authorized or issued under either
the 1996 Plan or the Director Plan.  The
Prior Plans will continue in effect, however, until all matters relating to the
exercise of existing options and the administration of the Prior Plans have
been settled.

2.             Definitions.

2.1           “409A Award” means an Award that is considered
“nonqualified deferred compensation” within the meaning of Section 409A of the
Code and Section 8 of this Plan.

2.2           “Administrator” means the Board or the
Committee appointed by the Board in accordance with Section 3.5.

2.3           “Affiliate” means any parent corporation or
subsidiary corporation of the Company, whether now or hereafter existing, as
those terms are defined in Sections 424(e) and (f), respectively, of the Code.

2.4           “Award” means any right granted under the
Plan, including an Incentive Stock Option, a Nonstatutory Stock Option, a
Restricted Stock Award, an Unrestricted Stock Award, a Performance Award, a
Stock Appreciation Right and a 409A Award.

2.5           “Award Agreement” means a written agreement
between the Company and a holder of an Award, evidencing the terms and
conditions of an individual Award grant. Each Award Agreement shall be subject
to the terms and conditions of the Plan.

2.6           “Beneficial Owner” has the meaning assigned to
such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act.

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

2.8           “Business Combination” has the meaning set
forth in Section 2.11(e).

2.9           “Cashless Exercise” has the meaning set forth
in Section 6.3.

2.10         “Cause” means if the Participant is a party to
an employment or service agreement with the Company or its Affiliates and such
agreement provides for a definition of Cause, the definition therein contained,
or, if no such agreement exists, it shall mean (a) the commission of, or plea
of guilty or no contest to, a felony or a crime involving moral turpitude or
the commission of any other act involving willful malfeasance or material
fiduciary breach with respect to the Company or an Affiliate, (b) conduct
tending to bring the Company into substantial public disgrace, or disrepute, or
(c) gross negligence or willful misconduct with respect to the Company or an
Affiliate. The Administrator, in its absolute discretion, shall determine the
effect of all matters and questions relating to whether a Participant has been
discharged for Cause.

 B-1
 

2.11         “Change in Control” shall mean:

(a)           The direct or indirect sale, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of the
Company to any “person” (as that term is used in Section 13(d)(3) of the
Exchange Act);

(b)           The Incumbent Directors cease for any reason to constitute at least a
majority of the Board;

(c)           The adoption of a plan relating to the liquidation or dissolution of the
Company; or

(d)           Any “person” or “group” (as such terms are used in Section 13(d) and
14(d) of the Exchange Act) becomes the Beneficial Owner, directly or
indirectly, of securities of the Company representing more than 50% of the
combined voting power of the Company’s then outstanding securities eligible to
vote for the election of the Board (the “Company Voting Securities”); or

(e)           The consummation of a merger, consolidation, statutory share exchange or
similar form of corporate transaction involving the Company or any of its
Subsidiaries that requires the approval of the Company’s stockholders, whether
for such transaction or the issuance of securities in the transaction (a “Business
Combination”), unless immediately following such Business Combination: (1) 50%
or more of the total voting power of (i) the Surviving Corporation, or (ii) if
applicable, the ultimate Parent Corporation that directly or indirectly has
beneficial ownership of 100% of the voting securities eligible to elect
directors of the Surviving Corporation, is represented by Company Voting
Securities that were outstanding immediately prior to such Business Combination
(or, if applicable, is represented by shares into which such Company Voting
Securities were converted pursuant to such Business Combination), and such
voting power among the holders thereof is in substantially the same proportion
as the voting power of such Company Voting Securities among the holders thereof
immediately prior to the Business Combination, (2) no person (other than any
employee benefit plan (or related trust) sponsored or maintained by the
Surviving Corporation or the Parent Corporation), is or becomes the beneficial
owner, directly or indirectly, of more than 50% of the total voting power of
the outstanding voting securities eligible to elect directors of the Parent
Corporation (or, if there is no Parent Corporation, the Surviving Corporation)
and (3) at least a majority of the members of the board of directors of the
Parent Corporation (or if there is no Parent Corporation, the Surviving
Corporation) following the consummation of the Business Combination were
Incumbent Directors at the time of the Board’s approval of the execution of the
initial agreement providing for such Business Combination (any Business
Combination which satisfies all of the criteria specified in (1), (2) and (3)
above shall be deemed to be a “Non-Qualifying Transaction”).

2.12         “Code” means the Internal Revenue Code of
1986, as amended.

2.13         “Committee” means a committee of the Board
appointed by the Board to administer the Plan in accordance with
Section 3.5.

2.14         “Common Stock” means the common stock of the
Company.

2.15         “Company” means Steel Dynamics, Inc., an
Indiana corporation.

2.16         “Company Voting Securities” has the meaning
set forth in Section 2.11(d).

2.17         “Continuous Service” means that the
Participant’s service with the Company or an Affiliate, whether as an Eligible
Employee or an Eligible Director is not interrupted or terminated. The
Administrator or its delegate, in its sole discretion, may determine whether
Continuous Service shall be considered interrupted in the case of any approved
leave of absence.

2.18         “Covered Employee” means the chief executive
officer and the four (4) or more other highest compensated or other officers of
the Company for whom total compensation is required to be reported to
stockholders under the Exchange Act.

2.19         “Date of Grant” means the date on which an
Award is made, if made automatically under one or more Plan provisions, or the
date on which the Administrator adopts a resolution, or takes other appropriate
action, expressly granting an Award to a Participant that specifies the key
terms and conditions of the Award and from which the Participant begins to
benefit from or be adversely affected by subsequent changes in the Fair Market
Value of the Company Common Stock or, if a different date is set forth in such
resolution, or determined by the Administrator, as the Date of Grant, then such
date as is set forth in such resolution.

2.20         “Director” means a member of the Board of
Directors of the Company.

2.21         “Disability” means that the Participant is
unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment; provided, however, for purposes of
determining the term of

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an
Incentive Stock Option pursuant to Section 6.4 hereof, the term Disability
shall have the meaning ascribed to it under Code Section 22(e)(3). The
determination of whether an individual has a Disability shall be determined
under procedures established by the Administrator. Except in situations where
the Administrator is determining Disability for purposes of the term of an
Incentive Stock Option pursuant to Section 6.4 hereof within the meaning
of Code Section 22(e)(3), the Administrator may rely on any determination
that a Participant is disabled for purposes of benefits under any long-term disability
plan maintained by the Company or any Affiliate in which a Participant
participates.

2.22         “Eligible Director” means any member of the
Board who is not an Eligible Employee.

2.23         “Eligible Employee” means any person employed
by the Company or an Affiliate, including any business, corporation or other
entity acquired by the Company or an Affiliate if and to the extent
specifically approved by the Committee; provided, however, that an “Eligible
Employee” shall not include, unless specifically approved by the Committee, any
person employed by the Company or any Affiliate whose terms and conditions of
employment are established by or subject to the terms of a collective
bargaining agreement.

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

2.25         “Fair Market Value” means, as of any date, the
value of the Common Stock determined in good faith by the Administrator. The “Fair
Market Value” of any share of Common Stock of the Company at any date shall be
(a) if the Common Stock is traded on the Nasdaq National Market or is listed on
any established stock exchange or exchanges, the last reported sale price per
share on such date on the Nasdaq National Market or the principal exchange on
which it is traded, or if no sale was made on such date on such principal
exchange, at the closing reported bid price on such date on such exchange, or
(b) if the Common Stock is not then listed on an exchange or quoted on Nasdaq,
an amount determined in good faith by the Administrator.

2.26         “Free Standing Rights” has the meaning set
forth in Section 7.5(a).

2.27         “Incentive Stock Option” means an Option
intended to qualify as an incentive stock option within the meaning of Section
422 of the Code and the regulations promulgated thereunder.

2.28         “Incumbent Directors” means individuals who,
on the Effective Date, constitute the Board, provided that any individual
becoming a Director subsequent to the Effective Date whose election or
nomination for election to the Board was approved by a vote of at least two-thirds
of the Incumbent Directors then on the Board (either by a specific vote or by
approval of the proxy statement of the Company in which such person is named as
a nominee for Director without objection to such nomination) shall be an
Incumbent Director.

2.29         “Net Exercise” has the meaning set forth in
Section 6.6(b)(ii).

2.30         “Non-Employee Director” means a Director who
is a “non-employee director” within the meaning of Rule 16b-3.

2.31         “Nonstatutory Stock Option” means an Option
not intended to qualify as an Incentive Stock Option.

2.32         “Non-Qualifying Transaction” has the meaning
set forth in Section 2.11(e).

2.33         “Officer” means a person who is an officer of
the Company within the meaning of Section 16 of the Exchange Act and the rules
and regulations promulgated thereunder.

2.34         “Option” means an Incentive Stock Option or a
Nonstatutory Stock Option granted pursuant to the Plan.

2.35         “Option Agreement” means a written agreement
between the Company and an Optionholder evidencing the terms and conditions of
an individual Option grant. Each Option Agreement shall be subject to the terms
and conditions of the Plan and need not be identical.

2.36         “Optionholder” means a person to whom an
Option is granted pursuant to the Plan or, if applicable, such other person who
holds an outstanding Option.

2.37         “Outside Director” means a Director who is an “outside
director” within the meaning of Section 162(m) of the Code and Treasury
Regulations § 1.162-27(e)(3).

2.38         “Participant” means a person to whom an Award
is granted pursuant to the Plan or, if applicable, such other person who holds
an outstanding Award, and includes an Eligible Employee or an Eligible
Director.

2.39         “Performance Award” means Awards granted
pursuant to Section 7.3.

2.40         “Plan” means this Steel Dynamics, Inc. 2006
Equity Incentive Plan.

 B-3
 

2.41         “Prior Outstanding Options” means an option or
other award that was granted under the Prior Plans and continues to be
outstanding as of the Effective Date. 
The number of Prior Outstanding Options as of the Effective Date of this
Plan is approximately 970,000 shares.

2.42         “Prior Plans” means the Steel Dynamics Inc.
1996 Plan and the Steel Dynamics Director Plan.

2.43         “Related Rights” has the meaning set forth in
Section 7.5(a).

2.44         “Restricted Period” has the meaning set forth
in Sections 7.1(a) or 7.1(b).

2.45         “Restricted Stock Award” means any Award
granted pursuant to Section 7.1.

2.46         “Right of Repurchase” means the Company’s
option to repurchase Common Stock acquired under the Plan upon the Participant’s
termination of Continuous Service pursuant to Section 7.4.

2.47         “Rule 16b-3” means Rule 16b-3 promulgated
under the Exchange Act or any successor to Rule 16b-3, as in effect from time
to time.

2.48         “SAR Amount” has the meaning set forth in
Section 7.5.

2.49         “SAR Exercise Price” has the meaning set forth
in Section 7.5(b).

2.50         “SEC” means the Securities and Exchange
Commission.

2.51         “Securities Act” means the Securities Act of
1933, as amended.

2.52         “Stock Appreciation Right” means the right
pursuant to an award granted under Section 7.5 to receive an amount equal to
the excess, if any, of (A) the Fair Market Value, as of the date such Stock
Appreciation Right or portion thereof is surrendered, of the shares of stock
covered by such right or such portion thereof, over (B) the aggregate SAR
Exercise Price of such right or such portion thereof.

2.53         “Surviving Entity” means the Company if
immediately following any merger, consolidation or similar transaction, the
holders of outstanding voting securities or securities or rights convertible
into voting securities of the Company immediately prior to the merger or
consolidation own equity securities possessing more than 50% of the voting
power of the entity existing following the merger, consolidation or similar transaction.
In all other cases, the other entity to the transaction and not the Company
shall be the Surviving Entity.

2.54         “Ten Percent Stockholder” means a person who
owns (or is deemed to own pursuant to Section 424(d) of the Code) stock
possessing more than ten percent (10%) of the total combined voting power of
all classes of stock of the Company or of any of its Affiliates.

2.55         “Unrestricted Stock” means any Award of Common
Stock granted pursuant to Section 7.2 that is not subject to restrictions on
transfer or a risk of forfeiture.

2.56         “Unrestricted Stock Award” means any Award
granted pursuant to Section 7.2.

3.             Administration.

3.1           Administration by Board.  The
Plan shall be administered by the Board unless and until the Board delegates
administration to a Committee, as provided in Section 3.5.

3.2           Powers of Administrator.  The
Administrator shall have the power and authority to select and grant Awards to
Participants, pursuant to the terms of the Plan.

3.3           Specific Powers.  In
particular, subject to the limitations and other provisions set forth in this
Plan, the Administrator shall have the authority: (a) to construe and interpret
the Plan and apply its provisions; (b) to promulgate, amend and rescind rules
and regulations relating to the administration of the Plan; (c) to authorize
any person to execute, on behalf of the Company, any instrument required to
carry out the purposes of the Plan; (d) to delegate its authority to one or
more Officers of the Company with respect to awards that do not involve Covered
Employees or “insiders” within the meaning of Section 16 of the Exchange Act;
(e) to determine when Awards are to be granted under the Plan; (f) from time to
time to select those Participants to whom Awards shall be granted and to
determine the number of shares of Common Stock to be made subject to each
Award; (g) to prescribe the manner by which an Award shall be evidenced, either
in paper or electronic form or by book entry, as well as the form of all Award
Agreements and Option Agreements hereunder; (h) to determine whether each
Option is to be an Incentive Stock Option or a Nonstatutory Stock Option; (i)
to prescribe the terms and conditions of each Award, including, without
limitation, the purchase price or exercise price and medium of payment, vesting
provisions and Right of Repurchase provisions, and to specify the provisions of
the Award Agreement relating to such grant or sale; (j) to amend any
outstanding Awards, including for the purpose of modifying the time or manner
of vesting, the term of any Award, the purchase price or exercise price, as the
case may be, subject to applicable legal restrictions; provided, however, that
the Administrator may not, without the approval of the stockholders

 B-4
 

of
the Company, (A) reprice or otherwise reduce the exercise price of unexercised
Options, or (B) cancel previously granted Options and issue new Options to the
same Optionholder at a lower exercise price. In addition, if any such amendment
impairs a Participant’s rights or increases a Participant’s obligations under
his or her Award, such amendment shall also be subject to the Participant’s
consent (provided, however, a cancellation of an Award where the Participant
receives a payment equal in value to the Fair Market Value of the vested Award
or, in the case of vested Options, the difference between the Fair Market Value
of the Common Stock underlying the Options and the exercise price, shall not
constitute an impairment of the Participant’s rights that requires consent);
(k) to determine the duration and purpose of leaves of absences which may be
granted to a Participant without constituting termination of their Continuous
Service for purposes of the Plan, which periods shall be no shorter than the
periods generally applicable to Employees under the Company’s employment
policies; (l) to make decisions with respect to outstanding Options that may
become necessary upon a Change in Control or an event that triggers
anti-dilution adjustments; and (m) to exercise discretion to make any and all
other determinations which it determines to be necessary or advisable for
administration of the Plan.

3.4           Decisions Final.  All
decisions made by the Administrator pursuant to the provisions of the Plan
shall be final and binding on the Company and the Participants, unless such
decisions are determined by a court having jurisdiction to be arbitrary and
capricious.

3.5           The Committee.

(a)           General.  The Board may delegate administration of the
Plan to a Committee or Committees of three (3) or more members of the Board,
including the Compensation Committee, and the term “Committee” shall apply to
any person or persons to whom such authority has been delegated and which meets
the composition requirements of Section 3.5(b).  If administration is delegated to a
Committee, the Committee shall have, in connection with the administration of
the Plan, the powers theretofore possessed by the Board. The Board may abolish
the Committee at any time and revest in the Board the administration of the
Plan. The members of the Committee shall be appointed by and to serve at the
pleasure of the Board. From time to time, the Board may increase the size of
the Committee, add additional members to, remove members (with or without
cause) from, appoint new members in substitution therefor, and fill vacancies,
however caused, in the Committee. The Committee shall act pursuant to a vote of
the majority of its members or, in the case of a committee comprised of only
two members, the unanimous consent of its members, whether present or not, or
by the written consent of the majority of its members and minutes shall be kept
of all of its meetings and copies thereof shall be provided to the Board.
Subject to the limitations prescribed by the Plan and the Board, the Committee
may establish and follow such rules and regulations for the conduct of its
business as it may determine to be advisable. 
In the absence of any specific delegation of authority to the contrary,
the Committee shall be the Compensation Committee.

(b)           Committee Composition.  The
Committee shall consist solely of three or more Non-Employee Directors who are
also Outside Directors.  All such
directors shall also meet all standards for “independence” as that term is
defined under applicable securities laws, Securities and Exchange Commission
rules and listing standards as they may exist from time to time.  Within the scope of such authority, the
Administrator may (i) delegate to a committee of two or more members of the
Board who are not Outside Directors the authority to grant Awards to eligible persons
who are either (A) not then Covered Employees and are not expected to be
Covered Employees at the time of recognition of income resulting from such
Award or (B) not persons with respect to whom the Company wishes to comply with
Section 162(m) of the Code or (ii) delegate to a committee of two or more
members of the Board who are not Non-Employee Directors the authority to grant
Stock Awards to eligible persons who are not then subject to Section 16 of the
Exchange Act. In addition, the Administrator may delegate its authority within
specified parameters to one or more Officers of the Company with respect to
awards that do not involve Covered Employees or “insiders” within the meaning
of Section 16 of the Exchange Act;

3.6           Indemnification.  In
addition to such other rights of indemnification as they may have as Directors
or members of the Committee, and to the extent allowed by applicable law, the
Administrator and each of the Administrator’s consultants shall be indemnified
by the Company against the reasonable expenses, including attorney’s fees,
actually incurred in connection with any action, suit or proceeding or in
connection with any appeal therein, to which the Administrator or any of its
consultants may be party by reason of any action taken or failure to act under
or in connection with the Plan or any Option granted under the Plan, and
against all amounts paid by the Administrator or any of its consultants in
settlement thereof (provided, however, that the settlement has been approved by
the Company, which approval shall not be unreasonably withheld) or paid by the
Administrator or any of its consultants in satisfaction of a judgment in any
such action, suit or proceeding, except in relation to matters as to which it
shall be adjudged in such action, suit or proceeding that such Administrator or
any of its consultants did not act in good faith and in a manner which such
person reasonably believed to be in the best interests of the Company, and in
the case of a criminal proceeding, had no reason to believe that the conduct
complained of was unlawful; provided, however, that within 60 days after
institution

 B-5
 

of
any such action, suit or proceeding, such Administrator or any of its
consultants shall, in writing, offer the Company the opportunity at its own
expense to handle and defend such action, suit or proceeding.

4.             Eligibility for Specific Awards.  Awards
under the Plan may be granted to any Participant who is designated by the
Administrator to receive an Award.

5.             Shares Subject to Awards.  The stock
available for grant of Options and all other Awards under the Plan shall be
shares of the Company’s authorized but unissued or reacquired Common Stock. The
aggregate number of shares which may be issued pursuant to the exercise of
Awards granted under the Plan, including Incentive Stock Options, is four
million (4,000,000) shares of Common Stock, subject to adjustment as provided
in Section 6.15.  Any shares issued by
the Company through the assumption or substitution of outstanding Awards from
an acquired company, however, shall not reduce the shares available for Awards
under this Plan.  Awards for fractional
shares of Common Stock may not be issued under the terms of the Plan.

5.1           Individual Share Limitation.  The
maximum number of shares with respect to which Awards, including Options, may
be granted to any Eligible Employee in any one fiscal year shall be 50,000
shares.

5.2           Reversion of Shares to Share
Reserve.  If any Award shall for any reason expire or
otherwise terminate, in whole or in part, without having been exercised in full
or being fully vested, the shares of Common Stock not acquired under such Award
shall revert to and again become available for issuance under the Plan. If
shares of Common Stock issued under the Plan are reacquired by the Company
pursuant to the terms of any forfeiture provision, including the Right of
Repurchase of unvested Common Stock under Section 7.4, except for shares
acquired pursuant to a Net Exercise transaction, such shares shall again be
available for purposes of the Plan.

6.             OPTIONS:  Terms and Conditions. 
Options granted under the Plan shall be evidenced by Option Agreements
(which need not be identical) in such form and containing such provisions which
are consistent with the Plan as the Administrator shall from time to time
approve. Each agreement shall specify whether the Option granted thereby is an
Incentive Stock Option or a Nonstatutory Stock Option. Options granted to an
Eligible Director, however, may only be Nonstatutory Stock Options. Such
agreements may incorporate all or any of the terms hereof by reference and
shall comply with and be subject to the following terms and conditions:

6.1           Number of Shares Subject to
Option.  Each Option Agreement shall specify the
number of shares subject to the Option.

6.2           Option Price.  The
purchase price for the shares subject to any Option shall not be less than 100%
of the Fair Market Value of the shares of Common Stock of the Company based on
the last sale price per share on the market day immediately preceding the Date
of Grant.

6.3           Ten Percent Stockholders.  A Ten
Percent Stockholder shall not be granted an Incentive Stock Option unless the
exercise price of such Option is at least 110% of the Fair Market Value of the
Common Stock of the Company based on the last sale price per share on the
market day immediately preceding the Date of Grant, and the Option is not
exercisable after the expiration of five years from the Date of Grant.

6.4           Regular Semi-Annual Option
Grants.  The Company wishes to continue its unique
semi-annual broad-based option program for all Eligible Employees, which has
been in effect since 1996.  Pursuant to
this program, all Eligible Employees of the Company and its Affiliates,
including employees who may also be directors, are provided an opportunity to
acquire an ownership interest in their Company through regular semi-annual
option grants, thereby more fully identifying his or her welfare and well-being
with that of the Company.

6.4(a)      Grant Dates.  Grants of Options in connection with this program
shall occur twice annually, at such time as the Committee may prescribe from
time to time or, in lieu of any contrary direction, on November 21 for the
full six (6) month employment period May 21 through November 20, and
on May 21 for the full six (6) month employment period November 21
through May 20 (each a “Grant Date”).

6.4(b)      Grant Amounts.  Options on each Grant Date shall be provided
to each Eligible Employee hereunder in the following position categories and in
the following amounts, subject to adjustment by the Committee from time to time
as to both category and amount, based upon the Fair Market Value of the Company’s
Common Stock for that particular Grant Date, determined in the manner
prescribed by Section 2.25:

 B-6
 

 

	
  Position

  	
   

  	
  Grants Per Year

  	
   

  	
  Semi-Annual Grant Value

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  President

  	
   

  	
  2

  	
   

  	
  $

  	
  80,000.00

  	
   

  
	
  Vice-President

  	
   

  	
  2

  	
   

  	
  60,000.00

  	
   

  
	
  General Managers

  	
   

  	
  2

  	
   

  	
  45,000.00

  	
   

  
	
  Manager

  	
   

  	
  2

  	
   

  	
  30,000.00

  	
   

  
	
  Supervisors/Professionals

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Level 4

  	
   

  	
  2

  	
   

  	
  22,500.00

  	
   

  
	
  Level 3

  	
   

  	
  2

  	
   

  	
  15,000.00

  	
   

  
	
  Level 2

  	
   

  	
  2

  	
   

  	
  12,500.00

  	
   

  
	
  Level 1

  	
   

  	
  2

  	
   

  	
  10,000.00

  	
   

  
	
  Other team members

  	
   

  	
  2

  	
   

  	
  2,500.00

  	
   

  
							

6.4(c)       Term of Option:  Vesting.  The
time within which Options granted under this program shall be exercisable shall
be not earlier than six (6) months nor later than five (5) years from each
applicable Grant Date, subject to the provisions of Section 6.7.

6.4(d)      Type of Option.  Each Option granted pursuant to this program
shall be designated in the Option Agreement as an Incentive Stock Option or, if
required in order to take into account the limitations described in
Section 6.10 or elsewhere regarding Incentive Stock Options, a
Nonstatutory Stock Option.

6.5           Other Option Grants.  The
Administrator may from time to time grant such other Options hereunder, either
Incentive Stock Options or Nonstatutory Stock Options, as it may deem
advisable.

6.6           Medium and Time of Payment.  The
purchase price of Common Stock acquired pursuant to an Option shall be paid, to
the extent permitted by applicable statutes and regulations, either (a) in cash
or by certified or bank check at the time the Option is exercised or (b) in the
discretion of the Administrator and upon such terms as the Administrator shall
approve, the exercise price may be paid: (i) by delivery to the Company of
other Common Stock, duly endorsed for transfer to the Company, with a Fair
Market Value on the date of delivery equal to the exercise price (or portion
thereof) due for the number of shares being acquired, (ii) by the withholding
of whole shares of Common Stock which would otherwise be delivered, having an
aggregate Fair Market Value on the date of delivery equal to the exercise price
(“Net Exercise”), (iii) during any period for which the Common Stock is
publicly traded, in cash by a broker-dealer acceptable to the Company to whom
the optionee has submitted an irrevocable notice of exercise (a “Cashless
Exercise”); (iv) by a combination of any of such methods, or (v) in such other
manner as the Administrator, in its discretion, either at the time of grant or
thereafter, may provide.  The
Administrator may also, in its discretion, require as a condition of exercise
that the optionee pay to the Company federal, state or local withholding or
employment tax required by law, which payment may be made by any of the
foregoing methods.

Unless otherwise specifically provided in the Option, the purchase price
of Common Stock acquired pursuant to an Option that is paid by delivery to the
Company of other Common Stock acquired, directly or indirectly from the
Company, shall be paid only by shares of the Common Stock of the Company that
have been held for more than six months (or such longer or shorter period of
time required to avoid a charge to earnings for financial accounting purposes).
Notwithstanding the foregoing, during any period for which the Common Stock is
publicly traded, a Cashless Exercise or a Net Exercise or other transaction by
a Director or executive officer that involves or may involve a direct or
indirect extension of credit or arrangement of an extension of credit by the
Company, or an Affiliate in violation of section 402(a) of the Sarbanes-Oxley
Act (codified as Section 13(k) of the Exchange Act) shall be prohibited with
respect to any Award under this Plan. Unless otherwise provided in the terms of
an Option Agreement, payment of the exercise price by a Participant who is an
officer, director or other “insider” subject to Section 16(b) of the Exchange
Act through a Net Exercise transaction is subject to pre-approval by the
Administrator, in its sole discretion, which pre-approval shall be documented
in a manner that complies with the specificity requirements of Rule 16b-3,
including the name of the Participant involved in the transaction, the nature
of the transaction, the number of shares to be acquired or disposed of by the
Participant and the material terms of the Options involved in the transaction.

6.7           Term of Option.  No
Option granted to an Eligible Employee or an Eligible Director shall be
exercisable after the expiration of the earliest of (a) five years after the
date the Option is granted, (b) ninety days after the date the Optionholder’s
Continuous Service with the Company and its Affiliates terminates if such
termination is for any reason other than Disability, death, or Cause, (c) the
date the Optionholder’s Continuous Service with the Company and its Affiliates
terminates if such termination is for Cause, as determined by the Board or by
the Committee in its sole discretion, or (d) the earlier of one hundred eighty
days after the date the Optionholder’s Continuous Service with the Company and
its Affiliates terminates, if such termination is a result of death or
Disability, or death results within not more than ninety days of the date on
which the Optionholder’s Continuous Service terminates, or the expiration of
the

 B-7
 

stated
term of the Option; provided, however, that the Option Agreement for any Option
may provide for shorter periods in each of the foregoing instances.

6.8           Exercise of Option.  No
Option shall be exercisable during the lifetime of an Optionholder by any
person other than the Optionholder. The Administrator shall have the power to
set the time or times within which each Option shall be exercisable and to
accelerate the time or times of exercise. 
Any Option or unexercised portion thereof granted to the Optionholder,
to the extent exercisable by him or her on the date of death, may be exercised
by the Optionholder’s designated beneficiary, personal representatives, heirs,
or legatees, subject to the provisions of Section 6.4 hereof.

To the extent that an Optionholder has the right to exercise an Option
and purchase shares pursuant thereto, the Option may be exercised from time to
time by written notice to the Company, stating the number of shares being
purchased and accompanied by payment in full, in any ways permitted hereunder,
of the purchase price for such shares.

6.9           No Transfer of Option.  No
Option shall be transferable by an Optionholder otherwise than by will or the
laws of descent and distribution or pursuant to the provisions of a Qualified
Domestic Relations Order. 
Notwithstanding the foregoing, the Optionholder may, by delivering
written notice to the Company, in a form satisfactory to the Company, designate
a third party who, in the event of the death of the Optionholder, shall thereafter
be entitled to exercise the Option.  No
right or interest of an Eligible Employee in any Option may be pledged,
encumbered, or hypothecated to or in favor of any party other than the Company
or an Affiliate, or shall be subject to any lien, obligation, or liability of
such Eligible Employee to any other party other than the Company or an
Affiliate.

6.10         Limit on Incentive Stock Options.  To the
extent that the aggregate Fair Market Value (determined at the time the Option
is granted) of the Common Stock with respect to which Incentive Stock Options
are exercisable for the first time by an Optionholder during any calendar year
(under all Incentive Stock Option plans of the Company and its Affiliates)
exceeds $100,000, the Options or portions thereof which exceed such limit
(according to the order in which they were granted) shall be designated or
otherwise treated as Nonstatutory Stock Options.

6.11         Restriction on Issuance of
Shares.  The issuance of Options and shares shall be
subject to compliance with all of the applicable requirements of law with
respect to the issuance and sale of securities.

6.12         Investment Representation.  Any
Optionholder may be required, as a condition of issuance of shares covered by
his or her Option, to represent that the shares to be acquired pursuant to
exercise of the Option will be acquired for investment and without a view to
distribution thereof, and in such case, the Company may place a legend on the
certificate evidencing the shares reflecting the fact that they were acquired
for investment and cannot be sold or transferred unless registered under the
Securities Act of 1933, as amended, or unless counsel for the Company is
satisfied that the circumstances of the proposed transfer do not require such
registration.

6.13         Rights as a Stockholder or
Employee.  An Optionholder or transferee of an Option
shall have no rights as a stockholder of the Company with respect to any shares
covered by any Option until the date of issuance of a share certificate for
such shares, or the shares have been duly transferred electronically. No
adjustment shall be made for dividends (ordinary or extraordinary, whether
cash, securities, or other property), distributions or other rights for which
the record date is prior to the date such share certificate is issued or
electronic transfer recorded, except as provided in Section 6.13. Nothing in
the Plan or in any Option Agreement shall confer upon any Employee any right to
continue in the employ of the Company or any of its Affiliates or interfere in
any way with any right of the Company or any Affiliate to terminate the
Optionholder’s Continuous Service at any time.

6.14         No Fractional Shares.  In no
event shall the Company be required to issue fractional shares upon the
exercise of an Option.

6.15         Recapitalization or
Reorganization of Company.  Except as otherwise provided herein,
appropriate and proportionate adjustments shall be made in the number and class
of shares subject to the Plan and to the Option rights granted under the Plan,
and the exercise price of such Option rights, in the event of a stock dividend
(but only on Common Stock), stock split, reverse stock split, recapitalization,
reorganization, merger, consolidation, separation, or like change in the
capital structure of the Company.

6.16         Additional Requirements Under
Section 409A.  Each Option Agreement shall include or be
deemed to include a provision whereby, notwithstanding any provision of the
Plan or the Option Agreement to the contrary, the Option shall satisfy the
additional conditions applicable to nonqualified deferred compensation under
Section 409A of the Code, if any, in accordance with Section 8 hereof, in the
event any Option under this Plan is granted with an exercise price less than
Fair Market Value of the Common Stock subject to the Option on the date the
Option is granted (regardless of whether or not such exercise price is
intentionally or unintentionally priced at less than Fair Market Value, or is
materially modified at a time when the Fair Market Value exceeds the exercise
price), or is otherwise determined to constitute “nonqualified deferred
compensation” within the meaning of Section 409A of the Code.

 B-8
 

6.17         Other Provisions.  Each
Option may contain such other terms, provisions, and conditions not
inconsistent with the Plan as may be determined by the Administrator.
Notwithstanding the foregoing, the Company shall have no liability to any
Participant or any other person if an Option designated as an Incentive Stock
Option fails to qualify as such at any time or if an Option is determined to
constitute “nonqualified deferred compensation” within the meaning of Section
409A of the Code and the terms of such Option do not satisfy the additional
conditions applicable to nonqualified deferred compensation under Section 409A
of the Code and Section 8 of the Plan.

7.             Provisions of Awards Other than
Options.

7.1           RESTRICTED STOCK Awards.  The
Administrator may from time to time award as compensation or otherwise (or sell
at a purchase price determined by the Administrator) restricted Common Stock
under the Plan to eligible Participants. 
Restricted Stock Awards may not be sold, assigned, transferred or
otherwise disposed of, pledged or hypothecated as collateral for a loan or as
security for the performance of any obligation or for any other purpose for
such period (the “Restricted Period”) as the Administrator shall determine.
Each Restricted Stock Award shall be in such form and shall contain such terms,
conditions and Restricted Periods, whether time based, performance based or
both, as the Administrator shall deem appropriate, including the treatment of
dividends or dividend equivalents, as the case may be. The Administrator in its
discretion may provide for an acceleration of the end of the Restricted Period
in the terms of any Restricted Stock Award, at any time, including in the event
a Change in Control occurs.

7.1(a)      Regular Annual Awards to Eligible Directors. 
Subject to such further modification with respect to the amount, terms,
frequency or composition of the Award as the Committee may elect to make from
time to time, including the discontinuance or replacement thereof, each
Eligible Director as of the June 1 following the Company’s Annual Meeting
of Stockholders shall be granted a Restricted Stock Award of one thousand
(1,000) shares of the Company’s Common Stock, subject to a time-based
Restricted Period of one (1) year from the date of the Award.  The certificates representing the shares of
Restricted Stock so awarded, or the electronic book entries evidencing such
Award, shall carry such legend on the face thereof or in electronic form as the
Committee may prescribe in order to comply with applicable securities
laws.  Following the termination of the
Restricted Period, the shares so awarded shall no longer be deemed Restricted
Stock but shall continue to be restricted as to transfer by reason of the
Eligible Director’s status as a director of the Company and the applicability
of the securities laws, including the requirements of Section 16 of the
federal Securities Act of 1933, as amended.

7.1(b)      Terms and Conditions of Restricted Stock Awards.  The
terms and conditions of any Restricted Stock Award Agreements or purchase
agreements may change from time to time, and the terms and conditions of
separate Restricted Stock Awards need not be identical, but each Restricted
Stock Award shall include (through incorporation of provisions hereof by
reference in the Award Agreement or otherwise) the substance of each of the
following provisions:

(i)            Purchase Price.  The purchase price of Restricted Stock
Awards, if applicable, shall be determined by the Administrator, and may be
stated as cash, property or prior services.

(ii)           Consideration.  The consideration for Common Stock acquired
pursuant to the Restricted Stock Award, if sold and not simply awarded, shall
be paid either: (x) in cash at the time of purchase; or (y) in any other form
of legal consideration that may be acceptable to the Administrator in its
discretion including, without limitation, a full recourse secured promissory
note, property or prior services that the Administrator determines have a value
at least equal to the Fair Market Value of such Common Stock.

(iii)          Vesting.  Shares of Common Stock acquired under the
Restricted Stock Award may, but need not be subject to a Restricted Period that
specifies a Right of Repurchase in favor of the Company in accordance with a
vesting schedule to be determined by the Administrator, or forfeiture in the
event the consideration was in the form of prior services.

(iv)          Termination of Participant’s Continuous Service.  Unless
otherwise provided in a Restricted Stock Award or in an employment agreement
the terms of which have been approved by the Administrator, in the event a
Participant’s Continuous Service terminates for any reason, the Company may
exercise its Right of Repurchase or otherwise reacquire, or the Participant
shall forfeit the unvested portion of a Restricted Stock Award acquired in
consideration of prior or future services, and any or all of the shares of Common
Stock held by the Participant which have not vested as of the date of
termination under the terms of the Restricted Stock Award shall be forfeited
and the Participant shall have no rights with respect to the Award, unless the
Committee in the exercise of its discretion elects to waive the remaining
restriction in whole or in part.

 B-9
 

(v)           Transferability.  Rights to acquire shares of Common Stock
under the Restricted Stock Award shall be transferable by the Participant only
upon such terms and conditions as are set forth in the Award Agreement, as the
Administrator shall determine in its discretion, so long as Common Stock
awarded under the Restricted Stock Award remains subject to the terms of the
Award Agreement.

(vi)          Concurrent Tax Payment.  The
Administrator, in its sole discretion, may also (but shall not be required to)
provide for payment of a concurrent cash award in an amount equal, in whole or
in part, to the estimated after tax amount required to satisfy applicable
federal, state or local tax withholding obligations arising from the receipt
and deemed vesting of restricted stock for which an election under Section
83(b) of the Code may be required.

(vii)         Lapse of Restrictions.  Upon
the expiration or termination of the Restricted Period and the satisfaction of
any other conditions prescribed by the Administrator, the restrictions
applicable to the Restricted Stock Award shall lapse and a stock certificate
for the number of shares of Common Stock with respect to which the restrictions
have lapsed shall be delivered, free of any restrictions except those that may
be imposed by law, the terms of the Plan or the terms of a Restricted Stock
Award, to the Participant or the Participant’s beneficiary or estate, as the
case may be, unless such Restricted Stock Award is subject to a deferral
condition that complies with the 409A Award requirements that may be allowed or
required by the Administrator in its sole discretion. The Company shall not be
required to deliver any fractional share of Common Stock but will pay, in lieu
thereof, the Fair Market Value of such fractional share in cash to the
Participant or the Participant’s beneficiary or estate, as the case may be.
Unless otherwise subject to a deferral condition that complies with the 409A
Award requirements, the Common Stock certificate shall be issued and delivered
and the Participant shall be entitled to the beneficial ownership rights of
such Common Stock not later than (i) the date that is 2-1/2 months after the
end of the Participant’s or the Company’s taxable year for which the Restricted
Period ends and the Participant has a legally binding right to such amounts,
whichever is later, or (ii) such earlier date as may be necessary to avoid
application of Code Section 409A to such Award.

7.2           UNRESTRICTED STOCK Awards.  The
Committee may, in its sole discretion, award (or sell at a purchase price
determined by the Committee) an Unrestricted Stock Award to any Participant,
pursuant to which such individual may receive shares of Common Stock free of
any vesting restriction (“Unrestricted Stock”) under the Plan. Unrestricted
Stock Awards may be granted or sold as described in the preceding sentence in
respect of past services or other valid consideration, or in lieu of any cash
compensation due to such individual.

7.3           PERFORMANCE AWARDS.

(a)           Nature of Performance Awards.  A
Performance Award is an Award entitling the recipient to acquire cash, actual
shares of Common Stock or hypothetical Common Stock units having a value equal
to the Fair Market Value of an identical number of shares of Common Stock upon
the attainment of specified performance goals. The Administrator may make
Performance Awards independent of or in connection with the granting of any
other Award under the Plan. Performance Awards may be granted under the Plan
only to an Eligible Employee. The Administrator in its sole discretion shall
determine whether and to whom Performance Awards shall be made, the performance
goals applicable under each Award, the periods during which performance is to
be measured, and all other limitations and conditions applicable to the awarded
cash or shares.

Performance goals shall be
based on a pre-established objective formula or standard, measured over one or
more performance periods, that specifies the manner of determining the amount
of cash or the number of shares under the Performance Award that will be
granted or will vest if the performance goal is attained.

Performance goals will be
determined by the Administrator prior to the time 25% of the service period has
elapsed and may be based on one or more business criteria that apply to an
Eligible Employee, a business unit or the Company and its Affiliates. Such
business criteria may include, by way of example and without limitation,
Company-wide, divisional or operating unit revenues, operating, pre-tax or
after-tax income (Company-wide or by operating units or division), earnings per
share, share price performance, return on equity, return on assets, return on
capital, cash flow, economic value added, improvements in costs, production
goals and implementation or completion of critical projects. The level or
levels of performance specified with respect to a performance goal may be
established in absolute terms, as objectives relative to performance in prior
periods, as an objective compared to the performance of one or more comparable
companies or an index covering multiple companies, or otherwise as the
Administrator may determine.

Performance goals shall be
objective and shall otherwise meet the requirements of Section 162(m) of the
Code. Performance goals may differ for Performance Awards granted to any one
Eligible Employee or to

 B-10
 

different Eligible Employees. A Performance
Award to an Eligible Employee who is a Covered Employee shall (unless the
Administrator determines otherwise) provide that in the event of the Eligible
Employee’s termination of Continuous Service prior to the end of the
performance period for any reason, such Award will be payable only (i) if the
applicable performance objectives are achieved and (ii) to the extent, if any,
as the Administrator shall determine.

(b)            Restrictions on Transfer. 
Performance Awards and all rights with respect to such Performance
Awards may not be sold, assigned, transferred, pledged or otherwise encumbered.

(c)           Rights as a Stockholder.  An
Eligible Employee receiving a Performance Award shall have the rights of a
stockholder only as to shares actually received by an Eligible Employee under
the Plan and not with respect to shares subject to the Award but not actually
received by an Eligible Employee.  An
Eligible Employee shall be entitled to receive a stock certificate or to be
credited by electronic book entry evidencing the acquisition of shares of
Common Stock under a Performance Award only upon satisfaction of all conditions
specified in the written instrument evidencing the Performance Award (or in a
performance plan adopted by the Administrator). The Common Stock certificate
shall be issued and delivered and the Eligible Employee shall be entitled to
the beneficial ownership rights of such Common Stock not later than (i) the
date that is 2-1/2 months after the end of the Eligible Employee’s or the
Company’s taxable year for which the Administrator certifies that the
Performance Award conditions have been satisfied and the Eligible Employee has
a legally binding right to such amounts, whichever is later, or (ii) such other
date as may be necessary to avoid application of Section 409A to such Awards.

(d)           Termination.  Except as may otherwise be provided by the
Administrator at any time, a Participant’s rights in all Performance Awards
shall automatically terminate upon the Eligible Employee’s termination of
Continuous Service (or business relationship) with the Company and its
Affiliates for any reason.

(e)           Acceleration, Waiver, Etc.  At any
time prior to the Eligible Employee’s termination of Continuous Service (or
other business relationship) by the Company and its Affiliates, the
Administrator may in its sole discretion accelerate, waive or, subject to
Section 8, amend any or all of the goals, restrictions or conditions
imposed under any Performance Award. The Administrator in its discretion may
provide for an acceleration of vesting in the terms of any Performance Award at
any time, including in the event a Change in Control occurs.

(f)            Certification.  Following the completion of each performance
period, the Administrator shall certify in writing, in accordance with the
requirements of Section 162(m) of the Code, whether the performance objectives
and other material terms of a Performance Award have been achieved or met.
Unless the Administrator determines otherwise, Performance Awards shall not be
settled until the Administrator has made the certification specified under this
Section 7.3(f).

7.4           Right of Repurchase.  Each
Award Agreement may provide that, following a termination of the Participant’s
Continuous Service, the Company may repurchase the Participant’s unvested
Common Stock acquired under the Plan as provided in this Section 7.4 (the “Right
of Repurchase”). The Right of Repurchase shall be exercisable with respect to
unvested stock at a price equal to the lesser of the purchase price at which
such Common Stock was acquired under the Plan or the Fair Market Value of such
Common Stock. The Award Agreement may specify the period of time following a
termination of the Participant’s Continuous Service during which the Right of
Repurchase may be exercised, provided that such exercise may in any event be
extended to a date that is at least 60 days after the six months anniversary of
the date the stock was acquired from the Company.

7.5           STOCK APPRECIATION RIGHTS.

(a)           General.  Stock Appreciation Rights may be granted
either alone (“Free Standing Rights”) or, provided the requirements of Section
7.5(b) are satisfied, in tandem with all or part of any Option granted under
the Plan (“Related Rights”). In the case of a Nonstatutory Stock Option,
Related Rights may be granted either at or after the time of the grant of such
Option. In the case of an Incentive Stock Option, Related Rights may be granted
only at the time of the grant of the Incentive Stock Option.

(b)           Grant Requirements.  A
Stock Appreciation Right may only be granted if the Stock Appreciation Right:
(i) does not provide for the deferral of compensation within the meaning of
Section 409A of the Code; or (ii) satisfies the requirements of Section 7.5(f)
and Section 8 hereof. A Stock Appreciation Right does not provide for a
deferral of compensation if: (A) the value of the Common Stock the excess over
which the right provides for payment upon exercise (the “SAR Exercise Price”)
may never be less than the Fair Market Value of the underlying Common Stock on
the date the right is granted, (B) the compensation payable under the Stock
Appreciation Right can never be greater than the difference between the SAR
Exercise Price and the Fair Market Value of the Common Stock on the date the
Stock Appreciation Right is exercised, (C) the number of

 B-11
 

shares of Common Stock subject to the Stock
Appreciation Right is fixed on the date of grant of the Stock Appreciation
Right, and (D) the right does not include any feature for the deferral of
compensation other than the deferral of recognition of income until the
exercise of the right.

(c)           Exercise and Payment.  Upon
exercise thereof, the holder of a Stock Appreciation Right shall be entitled to
receive from the Company, an amount equal to the product of (i) the excess of
the Fair Market Value, on the date of such written request, of one share of
Common Stock over the SAR Exercise Price per share specified in such Stock
Appreciation Right or its related Option, multiplied by (ii) the number of
shares for which such Stock Appreciation Right shall be exercised. Payment with
respect to the exercise of a Stock Appreciation Right that satisfies the
requirements of Section 7.5(b)(i) shall be paid on the date of exercise and
made in shares of Common Stock (with or without restrictions as to substantial
risk of forfeiture and transferability, as determined by the Administrator in
its sole discretion), valued at Fair Market Value on the date of exercise.
Payment with respect to the exercise of a Stock Appreciation Right that does
not satisfy the requirements of Section 7.5(b)(i) shall be paid at the time
specified in the Award in accordance with the provisions of Section 7.5(f) and
Section 8. Payment may be made in the form of shares of Common Stock (with or
without restrictions as to substantial risk of forfeiture and transferability,
as determined by the Administrator in its sole discretion), cash or a
combination thereof, as determined by the Administrator.

(d)           Exercise Price.  The exercise price of a Free Standing Stock
Appreciation Right shall be determined by the Administrator, but shall not be
less than 100% of the Fair Market Value of one share of Common Stock on the
Date of Grant of such Stock Appreciation Right. A Related Right granted
simultaneously with or subsequent to the grant of an Option and in conjunction
therewith or in the alternative thereto shall have the same exercise price as the
related Option, shall be transferable only upon the same terms and conditions
as the related Option, and shall be exercisable only to the same extent as the
related Option; provided, however, that a Stock Appreciation Right, by its
terms, shall be exercisable only when the Fair Market Value per share of Common
Stock subject to the Stock Appreciation Right and related Option exceeds the
exercise price per share thereof, and no Stock Appreciation Rights may be
granted in tandem with an Option unless the Administrator determines that the
requirements of Section 7.5(b)(i) are satisfied.

(e)           Reduction in the Underlying Option Shares.  Upon
any exercise of a Stock Appreciation Right, the number of shares of Common
Stock for which any related Option shall be exercisable shall be reduced by the
number of shares for which the Stock Appreciation Right shall have been
exercised. The number of shares of Common Stock for which a Stock Appreciation
Right shall be exercisable shall be reduced upon any exercise of any related
Option by the number of shares of Common Stock for which such Option shall have
been exercised.

(f)            Additional Requirements under Section 409A.  A
Stock Appreciation Right that is not intended to or fails to satisfy the
requirements of Section 7.5(b)(i) shall satisfy the requirements of this
Section 7.5 (f) and the additional conditions applicable to nonqualified
deferred compensation under Section 409A of the Code, in accordance with
Section 8 hereof. The requirements herein shall apply in the event any Stock
Appreciation Right under this Plan is granted with an SAR Exercise Price less
than Fair Market Value of the Common Stock underlying the Award on the date the
Stock Appreciation Right is granted (regardless of whether or not such SAR
Exercise Price is intentionally or unintentionally priced at less than Fair
Market Value, or is materially modified at a time when the Fair Market Value
exceeds the SAR Exercise Price), provide that it is settled in cash, or is
otherwise determined to constitute “nonqualified deferred compensation” within
the meaning of Section 409A of the Code. Any such Stock Appreciation Right may
provide that it is exercisable at any time permitted under the governing
written instrument, but such exercise shall be limited to fixing the
measurement of the amount, if any, by which the Fair Market Value of a share of
Common Stock on the date of exercise exceeds the SAR Exercise Price (the “SAR
Amount”). However, once the Stock Appreciation Right is exercised, the SAR
Amount may only be paid on the fixed time, payment schedule or other event
specified in the governing written instrument or in Section 8.1 hereof.

8.             Additional Conditions Applicable
to Nonqualified Deferred Compensation under Section 409A of the Code.

In the event any Award under this Plan is granted with an exercise price
less than Fair Market Value of the Common Stock subject to the Award on the
Date of Grant (regardless of whether or not such exercise price is
intentionally or unintentionally priced at less than Fair Market Value, or such
Award is materially modified and deemed a new Award at a time when the Fair
Market Value exceeds the exercise price), or is otherwise determined to
constitute a 409A Award, the following additional conditions shall apply and
shall supersede any contrary provisions of this Plan or the terms of any 409A
Award agreement.

 B-12
 

8.1           Exercise and Distribution.  No
409A Award shall be exercisable or distributable earlier than upon one of the
following:

(a)           Specified Time.  A specified time or a fixed schedule set
forth in the written instrument evidencing the 409A Award, but not later than
after the expiration of 10 years from the Date of Grant. If the written grant
instrument does not specify a fixed time or schedule, such time shall be the
date that is the fifth anniversary of the Date of Grant.

(b)           Separation from Service. 
Separation from service (within the meaning of Section 409A of the Code)
by the 409A Award recipient; provided, however, if the 409A Award recipient is
a “key employee” (as defined in Section 416(i) of the Code without regard to
paragraph (5) thereof) and any of the Company’s stock is publicly traded on an
established securities market or otherwise, exercise or distribution under this
Section 8.1(b) may not be made before the date which is six months after the
date of separation from service.

(c)           Death.  The date of death of the 409A Award
recipient.

(d)           Disability.  The date the 409A Award recipient becomes
disabled (within the meaning of Section 8.4(b) hereof).

(e)           Unforeseeable Emergency.  The
occurrence of an unforeseeable emergency (within the meaning of Section 8.4(b)
hereof), but only if the net value (after payment of the exercise price) of the
number of shares of Common Stock that become issuable does not exceed the
amounts necessary to satisfy such emergency plus amounts necessary to pay taxes
reasonably anticipated as a result of the exercise, after taking into account
the extent to which the emergency is or may be relieved through reimbursement
or compensation by insurance or otherwise or by liquidation of the Participant’s
other assets (to the extent such liquidation would not itself cause severe
financial hardship).

(f)            Change in Control Event.  The
occurrence of a Change in Control Event (within the meaning of Section 8.4(a)
hereof), including the Company’s discretionary exercise of the right to
accelerate vesting of such Award upon a Change in Control Event or to terminate
the Plan or any 409A Award granted hereunder within 12 months of the Change in
Control Event.

8.2          Term. 
Notwithstanding anything to the contrary in this Plan or the terms of
any 409A Award agreement, the term of any 409A Award shall expire and such
Award shall no longer be exercisable on the date that is the later of: (a)
2-1/2 months after the end of the Company’s taxable year in which the 409A
Award first becomes exercisable or distributable pursuant to Section 8 hereof
and is not subject to a substantial risk of forfeiture; or (b) 2-1/2 months
after the end of the 409A Award recipient’s taxable year in which the 409A
Award first becomes exercisable or distributable pursuant to Section 8 hereof
and is not subject to a substantial risk of forfeiture, but not later than the
earlier of (i) the expiration of 10 years from the date the 409A Award was
granted, or (ii) the term specified in the 409A Award agreement.

8.3           No Acceleration.  A 409A
Award may not be accelerated or exercised prior to the time specified in
Section 8 hereof, except in the case of one of the following events:

(a)           Domestic Relations Order.  The
409A Award may permit the acceleration of the exercise or distribution time or
schedule to an individual other than the Participant as may be necessary to
comply with the terms of a qualified domestic relations order (as defined in
Section 414(p)(1)(B) of the Code).

(b)           Conflicts of Interest.  The
409A Award may permit the acceleration of the exercise or distribution time or
schedule as may be necessary to comply with the terms of a certificate of
divestiture (as defined in Section 1043(b)(2) of the Code).

(c)           Change in Control Event.  The
Administrator may exercise the discretionary right to accelerate the vesting of
such 409A Award upon a Change in Control Event or to terminate the Plan or any
409A Award granted thereunder within 12 months of the Change in Control Event
and cancel the 409A Award for compensation. In addition, the Administrator may
exercise the discretionary right to accelerate the vesting of such 409A Award
provided that such acceleration does not change the time or schedule of payment
of such Award and otherwise satisfies the requirements of this Section 8 and
the requirements of Section 409A of the Code.

8.4           Definitions.  Solely
for purposes of this Section 8 and not for other purposes of the Plan, the
following terms shall be defined as set forth below:

(a)           “Change in Control Event” means the occurrence of a change in the
ownership of the Company, a change in effective control of the Company, or a
change in the ownership of a substantial portion of the assets of the Company
(as defined in Proposed Regulations § 1.409A-3(g)(5) and any subsequent
guidance interpreting Code Section 409A).

 B-13
 

(b)           “Disabled” means a Participant (i) is unable to engage in any
substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be
expected to last for a continuous period of not less than 12 months, or (ii)
is, by reason of any medically determinable physical or mental impairment which
can be expected to result in death or can be expected to last for a continuous
period of not less than 12 months, receiving income replacement benefits for a
period of not less than three months under an accident and health plan covering
Employees.

(c)           “Unforeseeable Emergency” means a severe financial hardship to the
Participant resulting from an illness or accident of the Participant, the
Participant’s spouse, or a dependent (as defined in Section 152(a) of the Code)
of the Participant, loss of the Participant’s property due to casualty, or
similar extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant.

9.             Termination or Amendment of Plan.  The
Board may at any time suspend, terminate or amend the Plan; provided that,
without approval of the stockholders of the Company, there shall be, except by
operation of the equitable adjustment provisions of Section 6.15, no increase
in the total number of shares covered by the Plan, no change in the class of
persons eligible to receive Awards granted under the Plan or other material
modification of the requirements as to eligibility for participation in the
Plan, no material increase in the benefits accruing to participants under the
Plan, and no extension of the latest date upon which Awards may be granted; and
provided further that, without the consent of the Participant, no amendment may
adversely affect any then outstanding Award or any unexercised portion thereof.

10.          General Provisions.

10.1         Other Compensation Arrangements. 
Nothing contained in this Plan shall prevent the Board from adopting
other or additional compensation arrangements, subject to stockholder approval
if such approval is required; and such arrangements may be either generally
applicable or applicable only in specific cases.

10.2         Recapitalizations.  Each
Option Agreement and Award Agreement shall contain or, in lieu thereof, shall
be deemed to contain provisions required to reflect the equitable adjustment
provisions of Section 6.15 in the event of a corporate capital transaction.

10.3         Disqualifying Dispositions.  Any
Participant who shall make a “disposition” (as defined in Section 424 of the
Code) of all or any portion of shares of Common Stock acquired upon exercise of
an Incentive Stock Option within two (2) years from the Date of Grant of such
Incentive Stock Option or within one (1) year after the issuance of the shares
of Common Stock acquired upon exercise of such Incentive Stock Option shall be
required to immediately advise the Company in writing as to the occurrence of
the sale and the price realized upon the sale of such shares of Common Stock.

10.4         Withholding Obligations.  To the
extent provided by the terms of an Award Agreement and subject to the
discretion of the Administrator, the Participant may satisfy any federal, state
or local tax withholding obligation relating to the exercise or acquisition of
Common Stock under an Award by any of the following means (in addition to the
Company’s right to withhold from any compensation paid to the Participant by
the Company) or by a combination of such means: (a) tendering a cash payment;
(b) authorizing the Company to withhold shares of Common Stock from the shares
of Common Stock otherwise issuable to the Participant as a result of the
exercise or acquisition of Common Stock under the Award, provided, however,
that no shares of Common Stock are withheld with a value exceeding the minimum
amount of tax required to be withheld by law or (c) delivering to the Company
previously owned and unencumbered shares of Common Stock of the Company. Unless
otherwise provided in the terms of an Option Agreement, payment of the tax
withholding by a Participant who is an officer, director or other “insider”
subject to Section 16(b) of the Exchange Act by delivering previously owned and
unencumbered shares of Common Stock of the Company is subject to pre-approval
by the Administrator, in its sole discretion. Any such pre-approval shall be
documented in a manner that complies with the specificity requirements of Rule
16b-3, including the name of the Participant involved in the transaction, the
nature of the transaction, the number of shares to be acquired or disposed of
by the Participant and the material terms of the Options involved in the
transaction.

11.          Termination or Suspension of the
Plan.  The Plan shall terminate automatically on the
day before the 10th anniversary of the Effective Date. No Award shall be
granted pursuant to the Plan after such date, but Awards theretofore granted
may extend beyond that date.

12.          Choice of Law.  The
law of the State of Indiana shall govern all questions concerning the
construction, validity and interpretation of this Plan, without regard to such
state’s conflict of law rules.

 B-14

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