Document:

Exhibit 10(m)

    
      

    

     

    Exhibit
      10(m)

     

    

      

        SOUTHERN
          UNION COMPANY

        

        AMENDED
          AND RESTATED

        

        2003
          STOCK AND INCENTIVE PLAN

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        TABLE
          OF CONTENTS

        

        

         

        
          	 	 	 

                  Page

                
	
                  I.
                    

                	
                  PURPOSES

                	
                  6

                
	
                  1.1

                	
                  Purposes.

                	
                  6

                
	
                  1.2

                	
                  Types
                    of Awards.

                	
                  6

                
	
                  1.3

                	
                  Effectiveness.

                	
                  6

                
	
                  II.
                    

                	
                  CERTAIN
                    DEFINITIONS

                	
                  7

                
	
                  2.1

                	
                  “Annual
                    Non-Employee Director Election”

                	
                  7

                
	
                  2.2

                	
                  “Arbitration
                    Notice”.

                	
                  7

                
	
                  2.3

                	
                  “Available
                    Shares” .

                	
                  7

                
	
                  2.4

                	
                  “Award”

                	
                  7

                
	
                  2.5

                	
                  “Award
                    Agreement”

                	
                  7

                
	
                  2.6

                	
                  “Board
                    of Directors”

                	
                  7

                
	
                  2.7

                	
                  “Business
                    Day”

                	
                  7

                
	
                  2.8

                	
                  “Change
                    in Control” 

                	
                  7

                
	
                  2.9

                	
                  “Code”
                    

                	
                  8

                
	
                  2.10

                	
                  “Committee”

                	
                  8

                
	
                  2.11

                	
                  “Company”
                    

                	
                  8

                
	
                  2.12

                	
                  “Covered
                    Event”.

                	
                  8

                
	
                  2.13

                	
                  “Date
                    of Grant”

                	
                  9

                
	
                  2.14

                	
                  “Designated
                    Beneficiary”

                	
                  9

                
	
                  2.15

                	
                  “Disability”

                	
                  9

                
	
                  2.16

                	
                  “Dispute”
                    .

                	
                  9

                
	
                  2.17

                	
                  “Effective
                    Date” 

                	
                  9

                
	
                  2.18

                	
                  “Eligible
                    Individuals”

                	
                  9

                
	
                  2.19

                	
                  “Exchange
                    Act” 

                	
                  9

                
	
                  2.20

                	
                  “Exercise
                    Notice”.

                	
                  9

                
	
                  2.21

                	
                  “Exercise
                    Price” 

                	
                  9

                
	
                  2.22

                	
                  “Fair
                    Market Value” 

                	
                  9

                
	
                  2.23

                	
                  “Holder”
                    

                	
                  11

                
	
                  2.24

                	
                  “Incentive
                    Option” .

                	
                  11

                
	
                  2.25

                	
                  “Linked
                    Stock Appreciation Right”

                	
                  11

                
	
                  2.26

                	
                  “Maximum
                    Shares” .

                	
                  11

                
	
                  2.27

                	
                  “NASDAQ”
                    .

                	
                  11

                
	
                  2.28

                	
                  “Non-Employee
                    Director”

                	
                  11

                
	
                  2.29

                	
                  “Non-Employee
                    Director Award” 

                	
                  11

                
	
                  2.30

                	
                  “Non-Linked
                    Stock Appreciation Right”

                	
                  11

                
	
                  2.31

                	
                  “Nonstatutory
                    Option”

                	
                  11

                
	
                  2.32

                	
                  “Normal
                    Retirement”

                	
                  11

                
	
                  2.33

                	
                  “Notice
                    2005-1” 

                	
                  11

                
	
                  2.34

                	
                  “Option”
                    

                	
                  11

                
	
                  2.35

                	
                  “Option
                    Agreement” 

                	
                  11

                
	
                  2.36

                	
                  “Other
                    Equity-Based Right” 

                	
                  11
                    

                
	 	 	 
	
                  2.37

                	
                  “Outside
                    Director” 

                	
                  11

                
	
                  2.38

                	
                  “Performance
                    Period”

                	
                  12

                
	
                  2.39

                	
                  “Performance
                    Unit”

                	
                  12

                
	
                  2.40

                	
                  “Person”

                	
                  12

                
	
                  2.41

                	
                  “Plan”
                    

                	
                  12

                
	
                  2.42

                	
                  “Reload
                    Option” 

                	
                  12

                
	
                  2.43

                	
                  “Restricted
                    Stock Award”.

                	
                  12

                
	
                  2.44

                	
                  “Rule
                    16b-3” 

                	
                  12

                
	
                  2.45

                	
                  “SAR
                    Exercise Price”

                	
                  12

                
	
                  2.46

                	
                  “Section
                    162(m)” 

                	
                  12

                
	
                  2.47

                	
                  “Section
                    409A” 

                	
                  12

                
	
                  2.48

                	
                  “Securities
                    Act”

                	
                  12

                
	
                  2.49

                	
                  “Stock”

                	
                  12

                
	
                  2.50

                	
                  “Stock
                    Appreciation Right”

                	
                  12

                
	
                  2.51

                	
                  “Stock
                    Award”

                	
                  13

                
	
                  2.52

                	
                  “Stock
                    Bonus Award”

                	
                  13

                
	
                  2.53

                	
                  “Subsidiary”

                	
                  13

                
	
                  2.54

                	
                  “Ten
                    Percent Shareholder”

                	
                  13

                
	
                  2.55

                	
                  “Voting
                    Securities”

                	
                  13

                
	
                  III.
                    

                	
                  SHARES
                    OF STOCK SUBJECT TO THE PLAN

                	
                  13

                
	
                  3.1

                	
                  Maximum
                    Shares.

                	
                  13

                
	
                  3.2

                	
                  Available
                    Shares.

                	
                  14

                
	
                  3.3

                	
                  Restoration
                    of Unused Shares.

                	
                  14

                
	
                  3.4

                	
                  Description
                    of Shares.

                	
                  14

                
	
                  3.5

                	
                  Listing,
                    Registration, etc. of Shares.

                	
                  14

                
	
                  3.6

                	
                  Reduction
                    in Outstanding Shares of Stock.

                	
                  14

                
	
                  IV.

                	
                  ADMINISTRATION
                    OF THE PLAN

                	
                  15

                
	
                  4.1

                	
                  Committee.

                	
                  15

                
	
                  4.2

                	
                  Duration,
                    Removal, Etc.

                	
                  15

                
	
                  4.3

                	
                  Meetings
                    and Actions of Committee.

                	
                  15

                
	
                  4.4

                	
                  Committee’s
                    Powers.

                	
                  16

                
	
                  4.5

                	
                  Counsel,
                    Consultants and Agents.

                	
                  16

                
	
                  V.
                    

                	
                  ELIGIBILITY
                    AND PARTICIPATION; CERTAIN AWARD TERMS

                	
                  17

                
	
                  5.1

                	
                  Eligible
                    Individuals.

                	
                  17

                
	
                  5.2

                	
                  Limitation
                    for Incentive Options.

                	
                  17

                
	
                  5.3

                	
                  Grant
                    of Awards.

                	
                  17

                
	
                  5.4

                	
                  Date
                    of Grant.

                	
                  17

                
	
                  5.5

                	
                  Award
                    Agreements.

                	
                  18

                
	
                  5.6

                	
                  No
                    Right to Award.

                	
                  18

                
	
                  5.7

                	
                  Limitation
                    on Individual Awards.

                	
                  18

                
	
                  5.8

                	
                  Payment
                    of Taxes.

                	
                  18

                
	
                  5.9

                	
                  Forfeiture
                    and Restrictions on Transfer; Other Conditions.

                	
                  19

                
	
                  VI.

                	
                  TERMS
                    AND CONDITIONS OF OPTIONS

                	
                  20

                
	
                  6.1

                	
                  Number
                    of Shares; Type of Award.

                	
                  20

                
	
                  6.2

                	
                  Vesting.

                	
                  20
                    

                
	 	 	 
	
                  6.3

                	
                  Expiration.

                	
                  20

                
	
                  6.4

                	
                  Exercise
                    Price.

                	
                  20

                
	
                  6.5

                	
                  Method
                    of Exercise.

                	
                  21

                
	
                  6.6

                	
                  Incentive
                    Option Exercises and Disqualifying Dispositions.

                	
                  21

                
	
                  6.7

                	
                  Medium
                    and Time of Payment.

                	
                  21

                
	
                  6.8

                	
                  Payment
                    with Sale Proceeds.

                	
                  22

                
	
                  6.9

                	
                  Reload
                    Provisions.

                	
                  22

                
	
                  6.10

                	
                  Limitation
                    on Aggregate Value of Shares That May Become First Exercisable
                    During Any
                    Calendar Year Under an Incentive Option.

                	
                  23

                
	
                  6.11

                	
                  No
                    Fractional Shares.

                	
                  23

                
	
                  6.12

                	
                  Other
                    Provisions Regarding Incentive Options.

                	
                  24

                
	
                  VII.

                	
                  STOCK
                    APPRECIATION RIGHTS

                	
                  24

                
	
                  7.1

                	
                  Type
                    of Award.

                	
                  25

                
	
                  7.2

                	
                  Linked
                    Stock Appreciation Rights.

                	
                  25

                
	
                  7.3

                	
                  Non-Linked
                    Stock Appreciation Rights.

                	
                  26

                
	
                  7.4

                	
                  Method
                    of Exercise.

                	
                  26

                
	
                  7.5

                	
                  Limitations
                    on Rights.

                	
                  27

                
	
                  7.6

                	
                  Payment
                    of Rights.

                	
                  27

                
	
                  VIII.

                	
                  STOCK
                    AWARDS

                	
                  27

                
	
                  8.1

                	
                  Number
                    of Shares; Type of Award.

                	
                  28

                
	
                  8.2

                	
                  Restrictions
                    Applicable to Restricted Stock Awards.

                	
                  28

                
	
                  8.3

                	
                  Stock
                    Bonus Awards.

                	
                  29

                
	
                  8.4

                	
                  Purchase
                    and Payment.

                	
                  29

                
	
                  8.5

                	
                  Compliance
                    with Section 409A.

                	
                  29

                
	
                  IX.
                    

                	
                  PERFORMANCE
                    UNITS

                	
                  29

                
	
                  9.1

                	
                  Number
                    of Units.

                	
                  30

                
	
                  9.2

                	
                  Performance
                    Period, Vesting, Etc.

                	
                  30

                
	
                  9.3

                	
                  Multiple
                    Grants.

                	
                  30

                
	
                  9.4

                	
                  Performance
                    Standards.

                	
                  30

                
	
                  9.5

                	
                  Modification
                    of Standards.

                	
                  30

                
	
                  9.6

                	
                  Payment
                    for Units.

                	
                  30

                
	
                  9.7

                	
                  Compliance
                    with Section 409A.

                	
                  31

                
	
                  X.
                    

                	
                  AWARDS
                    TO NON-EMPLOYEE DIRECTORS

                	
                  31

                
	
                  10.1

                	
                  Annual
                    Awards to Non-Employee Directors.

                	
                  31

                
	
                  XI.

                	
                  OTHER
                    EQUITY-BASED RIGHTS

                	
                  33

                
	
                  XII.

                	
                  CHANGE
                    IN CONTROL PROVISIONS

                	
                  34

                
	
                  12.1

                	
                  Changes
                    in Control.

                	
                  34

                
	
                  XIII.
                    

                	
                  ADDITIONAL
                    PROVISIONS

                	
                  34

                
	
                  13.1

                	
                  Adjustment
                    of Awards and Authorized Stock.

                	
                  35

                
	
                  13.2

                	
                  Termination
                    of Employment Other than for Death, Disability or Normal
                    Retirement.

                	
                  36

                
	
                  13.3

                	
                  Termination
                    of Employment for Death or Disability.

                	
                  38

                
	
                  13.4

                	
                  Termination
                    of Employment for Normal Retirement.

                	
                  39

                
	
                  13.5

                	
                  Cause
                    of Termination; Employment Relationship.

                	
                  40

                
	
                  13.6

                	
                  Exercise
                    Following Death or Disability.

                	
                  41

                
	
                  13.7

                	
                  Transferability
                    of Awards.

                	
                  41
                    

                
	 	 	 
	
                  13.8

                	
                  Delivery
                    of Certificates of Stock.

                	
                  42

                
	
                  13.9

                	
                  Certain
                    Conditions.

                	
                  42

                
	
                  13.10

                	
                  Certain
                    Directors and Officers.

                	
                  43

                
	
                  13.11

                	
                  Securities
                    Act Legend.

                	
                  43

                
	
                  13.12

                	
                  Legend
                    for Restrictions on Transfer.

                	
                  44

                
	
                  13.13

                	
                  Rights
                    as a Stockholder; Dividends.

                	
                  44

                
	
                  13.14

                	
                  No
                    Interest.

                	
                  44

                
	
                  13.15

                	
                  Furnishing
                    of Information.

                	
                  44

                
	
                  13.16

                	
                  No
                    Obligation to Exercise.

                	
                  45

                
	
                  13.17

                	
                  Remedies.

                	
                  45

                
	
                  13.18

                	
                  Certain
                    Information Confidential.

                	
                  45

                
	
                  13.19

                	
                  Consideration.

                	
                  45

                
	
                  13.20

                	
                  [Deliberately
                    omitted]

                	
                  45

                
	
                  13.21

                	
                  [Deliberately
                    omitted]

                	
                  45

                
	
                  13.22

                	
                  Dispute
                    Resolution.

                	
                  45

                
	
                  13.23

                	
                  Awards
                    to Non-Employees.

                	
                  47

                
	
                  13.24

                	
                  Compliance
                    with Section 409A.

                	
                  47

                
	
                  XIV.

                	
                  DURATION
                    AND AMENDMENT OF PLAN AND AWARD AGREEMENTS

                	
                  47

                
	
                  14.1

                	
                  Duration.

                	
                  47

                
	
                  14.2

                	
                  Amendment,
                    etc.

                	
                  47

                
	
                  XV.
                    

                	
                  GENERAL

                	
                  49

                
	
                  15.1

                	
                  Application
                    of Funds.

                	
                  49

                
	
                  15.2

                	
                  Right
                    of the Company and Subsidiaries to Terminate Employment.

                	
                  49

                
	
                  15.3

                	
                  No
                    Liability for Good Faith Determinations.

                	
                  49

                
	
                  15.4

                	
                  Other
                    Benefits.

                	
                  49

                
	
                  15.5

                	
                  Exclusion
                    From Pension and Profit-Sharing Compensation.

                	
                  49

                
	
                  15.6

                	
                  Execution
                    of Receipts and Releases.

                	
                  50

                
	
                  15.7

                	
                  Unfunded
                    Plan.

                	
                  50

                
	
                  15.8

                	
                  No
                    Guarantee of Interests.

                	
                  50

                
	
                  15.9

                	
                  Payment
                    of Expenses.

                	
                  50

                
	
                  15.10

                	
                  Company
                    Records.

                	
                  50

                
	
                  15.11

                	
                  No
                    Liability of Company.

                	
                  51

                
	
                  15.12

                	
                  Company
                    Action.

                	
                  51

                
	
                  15.13

                	
                  Severability.

                	
                  51

                
	
                  15.14

                	
                  Notices.

                	
                  51

                
	
                  15.15

                	
                  No
                    Waiver.

                	
                  51

                
	
                  15.16

                	
                  Successors.

                	
                  52

                
	
                  15.17

                	
                  Further
                    Assurances.

                	
                  52

                
	
                  15.18

                	
                  Governing
                    Law.

                	
                  52

                
	
                  15.19

                	
                  Jurisdiction
                    and Venue.

                	
                  52

                
	
                  15.20

                	
                  Interpretation.

                	
                  52

                
	
                  15.21

                	
                  No
                    Representations.

                	
                  53

                

        

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

        SOUTHERN
          UNION COMPANY

        

        AMENDED
          AND RESTATED

        

        2003
          STOCK AND INCENTIVE PLAN

        

         

        I.  

         

         

        

         

         

        PURPOSES

         

        

        1.1  Purposes.

        The
          purposes of this Amended and Restated 2003 Stock and Incentive Plan (as
          the same
          may be amended from time to time, the “Plan”) are (i) to advance the
          interest of Southern Union Company, a Delaware corporation (the “Company”), and
          its Subsidiaries (as defined below) and shareholders by strengthening the
          ability of the Company and its Subsidiaries to attract and retain salaried
          employees of experience and ability and (ii) to furnish an additional incentive
          to such persons to expend their best efforts on behalf of the Company or
          any
          such Subsidiary.

        

        1.2  Types
          of Awards.

        The
          Plan
          provides for the granting of the following types of awards:

        

        (a)  Incentive
          Options (as defined below);

         

        (b)  Nonstatutory
          Options (as defined below);

         

        (c)  Stock
          Appreciation Rights (as defined below);

         

        (d)  Stock
          Awards (as defined below);

         

        (e)  Performance
          Units (as defined below); and

        

        (f)  Other
          Equity-Based Rights (as defined below).

         

        1.3  Effectiveness. 

        The
          Southern Union Company 2003 Stock and Incentive Plan (the “Initial Plan”) was
          adopted by the Board of Directors on, and was effective as of, September
          28,
          2003 and was subsequently approved by the shareholders of the Company on
          November 4, 2003. This Plan was adopted by the Board of Directors, and
          will be
          effective, as of March 15, 2005 (the “Effective Date”) and Awards may be made
          hereunder immediately, provided that no Award shall be effective unless
          and
          until the Plan has been approved by the shareholders of the Company and,
          if such
          approval is not obtained, any Awards previously given under this Plan shall
          automatically be void. If this Plan is not so approved by the shareholders,
          then
          this Plan shall be void ab
          initio,
          and the
          Initial Plan shall continue in effect as if this amendment and restatement
          had
          not occurred; provided, however, that thereafter Awards may continue to
          be
          granted pursuant to the terms of the Initial Plan, as in effect prior to
          this
          amendment and restatement and as may be otherwise amended hereafter.
          Notwithstanding the foregoing or anything to the contrary contained herein,
          any
          Awards granted under the Initial Plan prior to the Effective Date shall
          continue
          in effect under the terms of the Award Agreements and be controlled by
          the terms
          of the Initial Plan. Further, the status of any Award granted under this
          Plan as
          an Incentive Option shall be subject to such approval by the shareholders
          of the
          Company taking place within twelve (12) months after the Effective
          Date.

         

        II.  

         

         

        

         

         

        CERTAIN
          DEFINITIONS

         

        

        In
          addition to any terms defined elsewhere in the Plan, the following capitalized
          terms shall have the following respective meanings as used in the
          Plan:

        

        2.1  “Annual
          Non-Employee Director Election” has the meaning given to that term in Section
          10.1.

        

        2.2  “Arbitration
          Notice” has the meaning given to that term in
          Section 13.22(b).

        

        2.3  “Available
          Shares” has the meaning given to that term in Section 3.2.

        

        2.4  “Award”
          means the grant of any form of Option, Stock Appreciation Right, Stock
          Award,
          Performance Unit or Other Equity-Based Right under the Plan, whether granted
          singly, in combination, or in tandem, to a Holder pursuant to such terms,
          conditions and limitations as the Committee may establish from time to
          time in
          order to fulfill the objectives of the Plan. 

        

        2.5  “Award
          Agreement” means the written document or agreement evidencing the grant of an
          Award by the Company to a Holder and any additional terms, conditions or
          limitations with respect to such grant.

        

        2.6  “Board
          of
          Directors” means the board of directors of the Company.

        

        2.7  “Business
          Day” means any day other than a Saturday, a Sunday, or a day on which banking
          institutions in the State of New York are authorized or obligated by law
          or
          executive order to close.

        

        2.8  “Change
          in Control” means:

        

        (a)  Any
          “person” (solely for purposes of this Section 2.7, defined as such term is used
          in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), or more than one
          person
          acting as a group (as defined in paragraph (c) below), (i) becomes the
          beneficial owner, directly or indirectly, of securities of the Company
          representing more than fifty percent (50%) of the combined voting power
          of the
          Company’s outstanding Voting Securities or (ii) notwithstanding the occurrence
          of a Change of Control pursuant to Section 2.7(a)(i), acquires (or has
          acquired

         

        
          
            
            

          

          
            1

            
              

            

          

          
            
            

          

        

        (b)  during
          the 12-month period ending on the date of the most recent acquisition by
          such
          person or persons) ownership of securities of the Company representing
          thirty
          five percent (35%) or more of the combined voting power of the Company’s
          outstanding Voting Securities; 

         

        (c)  There
          is
          a change in the composition of the Board of Directors over a period of
          twelve
          (12) consecutive months or less such that a majority of the members of
          the Board
          of Directors (rounded up to the nearest whole number) cease to be individuals
          who either (x) have been members of the Board of Directors continuously
          since
          the beginning of such period or (y) have been elected or nominated for
          election
          as members of the Board of Directors during such period by at least two-thirds
          (2/3) of the members of the Board of Directors described in clause (x)
          who were
          still in office at the time such election or nomination was approved by
          the
          Board of Directors; or 

         

        (d)  The
          sale
          of all or substantially all of the assets of the Company or any merger,
          consolidation, issuance of securities or purchase of assets, the results
          of
          which merger, consolidation, issuance of securities or purchase is the
          occurrence of any event described in clause (a) or (b) above. Notwithstanding
          anything to the contrary contained herein, no Change in Control shall be
          considered to occur where there is a transfer of all or substantially all
          of the
          assets of the Company to (i) a shareholder of the Company (immediately
          before
          the asset transfer) in exchange for or with respect to its stock; (ii)
          an
          entity, fifty percent (50%) or more of the total value or voting power
          of which
          is owned, directly or indirectly, by the Company; (iii) a person, or more
          than
          one person acting as a group, that owns, directly or indirectly, fifty
          percent
          (50%) or more of the total value or voting power of all the outstanding
          stock of
          the Company; or (iv) an entity, at least fifty percent (50%) of the total
          value
          or voting power of which is owned, directly or indirectly, by a person
          described
          in paragraph (iii).

         

        For
          purposes of this definition of Change in Control, persons will be considered
          to
          be acting as a group if they are owners of a corporation that enters into
          a
          merger, consolidation, purchase or acquisition of assets, or similar business
          transaction with the Company. It is intended that the Change in Control
          events
          described in this definition meet the requirements for a “Change in Control
          Event” as described in Notice 2005-1, as such requirements may be modified from
          time to time by further IRS guidance under Section 409A, and the term “Change in
          Control” shall be interpreted and applied for all purposes of this Plan in a
          manner consistent with such intent.

         

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

        

        2.10  “Committee”
          means the committee appointed by the Board of Directors pursuant to Article
          IV
          to administer the Plan.

        

        2.11  “Company”
          has the meaning given to that term in Section 1.1.

        

        2.12  “Covered
          Event” means (a) the commission by a Holder of a criminal or other act that
          causes or probably will cause substantial economic damage to the Company
          or a
          Subsidiary or substantial injury to the business reputation of the Company
          or a
          Subsidiary; (b) the commission by a Holder of an act of fraud in the
          performance of such Holder’s duties on behalf of the Company or a Subsidiary;
          (c) the continuing failure of a Holder to perform the duties of such Holder
          to
          the Company or a Subsidiary (other than such failure resulting from the
          Holder’s
          incapacity due to physical or mental illness) after written notice thereof
          (specifying the particulars thereof in reasonable detail) and a reasonable
          opportunity to be heard and cure such failure are given to the Holder by
          the
          Company; or (d) the order of a court of competent jurisdiction requiring
          the
          termination of the Holder’s employment. 

        

        2.13  “Date
          of
          Grant” has the meaning given to that term in Section  5.4 or (with respect
          to Reload Options) Section 6.9.

        

        2.14  “Designated
          Beneficiary” has the meaning given to that term in Section 13.6(a).

        

        2.15  “Disability”
          has the meaning given it in the employment agreement between the Company
          or a
          Subsidiary and the Holder; provided, however, that if the Holder has no
          such
          employment agreement or such term is not defined in the employment agreement,
          “Disability” shall mean that (1) the Committee has determined that the
          Holder has a permanent physical or mental impairment of sufficient severity
          as
          to prevent the Holder from performing duties for the Company or Subsidiary,
          as
          applicable, and (2) the Committee or the Company or the relevant Subsidiary
          has provided written notice to the Holder that the Holder’s employment is
          terminated due to a permanent “Disability” pursuant to this Section.
          Notwithstanding the preceding sentence, with respect to any Award constituting
          a
          deferral of compensation subject to the requirements of Section 409A,
“Disability” shall mean that a Holder is “disabled” within the meaning of
          Section 409(a)(2)(C). The Committee may establish any process or procedure
          it
          deems appropriate for determining whether a Holder has a
“Disability.” 

        

        2.16  “Dispute”
          has the meaning given to that term in Section 13.22.

        

        2.17  “Effective
          Date” has the meaning given to that term in Section 1.3.

        

        2.18  “Eligible
          Individuals” means directors, officers, employees and agents of, and other
          providers of services to, the Company or any of its Subsidiaries.

        

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

        

        2.20  “Exercise
          Notice” has the meaning given to that term in Section 6.5 (with respect to
          Options) or Section 7.4 (with respect to Stock Appreciation Rights). 

        

        2.21  “Exercise
          Price” has the meaning given to that term in Section 6.4.

        

        2.22  “Fair
          Market Value” means a per share value defined as follows, for a
          particular day:

        
          
            
            

          

          
            2

            
              

            

          

          
            
            

          

        

        

        (a)  Subject
          to Paragraph 2.21(e), if shares of Stock of the same class are listed or
          admitted to unlisted trading privileges on any national securities exchange
          at
          the date of determination of Fair Market Value, then the closing price
          of one
          share on that exchange (or, if more than one exchange, the exchange determined
          by the Committee to be used for such purpose) on the date in question or,
          if
          such day is not a Business Day or no such closing price is reported for
          that
          day, on the last Business Day for which such a closing price is reported
          before
          the date in question, in any case as reported in the principal consolidated
          transaction reporting system with respect to securities listed or admitted
          to
          unlisted trading privileges on that exchange; or

         

        (b)  Subject
          to Paragraph 2.21(e), if shares of Stock of the same class are not listed
          or
          admitted to unlisted trading privileges as provided in Paragraph 2.21(a)
          and if sales prices for shares of Stock of the same class in the
          over-the-counter market are reported by the National Association of Securities
          Dealers, Inc. Automated Quotations (“NASDAQ”) National Market System (or such
          other system then in use) at the date of determination of Fair Market Value,
          then the closing price of one share as reported on the NASDAQ National
          Market
          System (or such other system then in use) on the date in question or, if
          such
          day is not a Business Day or no such closing price is reported that day,
          on the
          last Business Day for which such a closing price is reported before the
          date in
          question; or

        

        (c)  Subject
          to Paragraph 2.21(e), if shares of Stock of the same class are not listed
          or
          admitted to unlisted trading privileges as provided in Paragraph 2.21(a)
          and closing prices for shares of Stock of the same class are not reported
          by the
          NASDAQ National Market System (or such other system then in use) as provided
          in
          Paragraph 2.21(b), and if bid and asked prices for shares of Stock of the
          same class in the over-the-counter market are reported by NASDAQ (or, if
          not so
          reported, by the National Quotation Bureau Incorporated) at the date of
          determination of Fair Market Value, then the mean between the high bid
          and low
          asked prices on the date in question or, if such day is not a Business
          Day or no
          such prices are reported that day, on the last Business Day for which such
          prices are reported before the date in question; or

        

        (d)  If
          shares
          of Stock of the same class are not listed or admitted to unlisted trading
          privileges as provided in Paragraph 2.21(a) and closing prices therefor are
          not reported by the NASDAQ National Market System as provided in
          Paragraph 2.21(b) and bid and asked prices therefor are not reported by
          NASDAQ (or the National Quotation Bureau Incorporated) as provided in
          Paragraph 2.21(c) at the date of determination of Fair Market Value, then
          the value determined by the Committee; or

        

        (e)  If
          shares
          of Stock of the same class are listed or admitted to unlisted trading privileges
          as provided in Paragraph 2.21(a) or closing prices therefor are reported by
          the NASDAQ National Market System as provided in Paragraph 2.21(b) or bid
          and asked prices therefor are reported by NASDAQ (or the National Quotation
          Bureau Incorporated) as provided in Paragraph 2.21(c) at the date of
          determination of Fair Market Value, but the volume of trading is so low
          that the
          Committee determines that such prices are not indicative of the fair value
          of
          the Stock, then the value determined by the Committee.

        

        2.23  “Holder”
          means an Eligible Individual to whom an Award has been granted.

        

        2.24  “Incentive
          Option” means an incentive stock option as defined under Section 422 of the
          Code.

        

        2.25  “Linked
          Stock Appreciation Right” has the meaning given to that term in
          Section 7.1.

        

        2.26  “Maximum
          Shares” has the meaning given to that term in Section 3.1.

        

        2.27  “NASDAQ”
          has the meaning given to that term in Section 2.21.

        

        2.28  “Non-Employee
          Director” means a person who is a “Non-Employee Director” as that term is used
          in Rule 16b-3.

        

        2.29  “Non-Employee
          Director Award” has the meaning given to that term in Section 10.1.

        

        2.30  “Non-Linked
          Stock Appreciation Right” has the meaning given to that term in Section
          7.1.

        

        2.31  “Nonstatutory
          Option” means a stock option that (i) does not satisfy the requirements for an
          incentive stock option under Section 422 of the Code; (ii) that is
          designated at the Date of Grant or in the applicable Option Agreement to
          be an
          option other than an Incentive Option; or (iii) is modified in accordance
          with
          Paragraph 14.2(b) to be an option other than an Incentive Option.

        

        2.32  “Normal
          Retirement” means the termination of the Holder’s employment with the Company
          and its Subsidiaries on account of retirement at any time on or after the
          date
          on which the Holder attains fifty-five (55) (but for purposes of clarification
          excludes any termination of employment as a result of a
          Covered Event).

        

        2.33  “Notice
          2005-1” means IRS Notice 2005-1, 2005-2 I.R.B. 274.

        

        2.34  “Option”
          means either an Incentive Option or a Nonstatutory Option, or both. 

        

        2.35  “Option
          Agreement” means an Award Agreement for an Option.

        

        2.36  “Other
          Equity-Based Right” means an Award granted under Article XI of
          the Plan.

        

        2.37  “Outside
          Director” means an “outside director” as that term is used in
          Section 162(m).

        

        
          
            
            

          

          
            3

            
              

            

          

          
            
            

          

        

        

        2.38  “Performance
          Period” means a period over which performance is measured for the purpose of
          determining the payment value of Performance Units.

        

        2.39  “Performance
          Unit” means a unit representing a contingent right to receive a specified amount
          of cash or shares of Stock at the end of a Performance Period.

        

        2.40  “Person”
          means any individual, partnership, joint venture, corporation, trust,
          unincorporated organization, association, limited liability company, joint
          stock
          company, government or any department or agency thereof, or any other form
          of
          association or entity.

        

        2.41  “Plan”
          has the meaning given to that term in Section 1.1.

         

        

        2.42  “Reload
          Option” has the meaning given to that term in Section 6.9.

        

        2.43  “Restricted
          Stock Award” means the grant or purchase, on the terms, conditions and
          limitations that the Committee determines or on the terms, conditions and
          limitations of Article VIII, of Stock that may be nontransferable and/or
          subject
          to substantial risk of forfeiture until specific conditions are met; provided,
          however, that this term shall not apply to shares of Stock issued or transferred
          in connection with the exercise or settlement of an Option, a Stock Appreciation
          Right, a Performance Unit or an Other Equity-Based Right, whether or not
          such
          shares of Stock are nontransferable or subject to substantial risk of forfeiture
          when issued or transferred. 

        

        2.44  “Rule 16b-3”
          means Rule 16b-3 under Section 16(b) of the Exchange Act. 

        

        2.45  “SAR
          Exercise Price” means the price specified in the Award Agreement related to a
          Non-Linked Stock Appreciation Right as the exercise price per share of
          Stock for
          that Non-Linked Stock Appreciation Right.

        

        2.46  “Section 162(m)”
          means Section 162(m) of the Code.

        

        2.47  “Section
          409A” means Section 409A of the Code.

        

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

        

        2.49  “Stock”
          means the Company’s authorized common stock, par value $1.00 per share, or any
          other securities, property or assets that are substituted for the Stock
          as
          provided in Section 13.1.

        

        2.50  “Stock
          Appreciation Right” means the right to receive an amount equal to the excess of
          the Fair Market Value of a share of Stock (as determined on the date of
          exercise) over, as appropriate, the Exercise Price of a related Option
          or over
          the SAR Exercise Price.

        

        
          
            
            

          

          
            4

            
              

            

          

          
            
            

          

        

        

        2.51  “Stock
          Award” means the grant or purchase, on the terms, conditions and limitations
          that the Committee determines or on the terms, conditions and limitations
          of
          Article VIII, of a Restricted Stock Award or a Stock Bonus
          Award. 

        

        2.52  “Stock
          Bonus Award” means the grant or purchase, on the terms, conditions and
          limitations that the Committee determines or on the terms, conditions and
          limitations of Article VIII, of Stock that may not be subject to a
          substantial risk of forfeiture if conditions imposed by the Committee are
          not
          satisfied; provided,
          however, that this term shall not apply to shares of Stock issued or transferred
          in connection with the exercise or settlement of an Option, a Stock Appreciation
          Right, a Performance Unit or an Other Equity-Based Right, whether or not
          such
          shares of Stock are nontransferable or subject to substantial risk of forfeiture
          when issued or transferred.

        

        2.53  “Subsidiary”
          means an entity, as may from time to time be designated by the Committee,
          that
          is (i) a subsidiary corporation, or is treated as, or as part of, a subsidiary
          corporation of the Company (within the meaning of Section 424 of the Code),
          or
          (ii) any other entity that the Company has a significant interest in, directly
          or indirectly, including, without limitation, CCE Holdings, LLC, CrossCountry
          Energy, LLC, each wholly owned subsidiary thereof and Citrus Corp. For
          purposes
          of this definition, “control” means the power to direct the management and
          policies of such entity, whether through the ownership of Voting Securities,
          by
          contract or otherwise.

        

        2.54  “Ten
          Percent Shareholder” shall have the meaning given to that term in
          Section 5.2.

        

        2.55  “Voting
          Securities” means any securities that at the applicable time are entitled to
          vote generally in the election of directors, in the admission of general
          partners, or in the selection of any other similar governing body.

         

        III.  

         

         

        

         

         

        SHARES
          OF STOCK SUBJECT TO THE PLAN

         

        

        3.1  Maximum
          Shares.

        Subject
          to the provisions of Section 3.6 and Section 13.1, the aggregate
          number of shares of Stock that may be issued or transferred pursuant to
          Awards
          under the Plan (the “Maximum Shares”) shall be Seven Million (7,000,000);
          provided, however, that, notwithstanding anything to the contrary contained
          herein: (a) the total number of shares of Stock that can be issued or
          transferred pursuant to Stock Awards, Performance Units and Other Equity
          Based
          Rights shall not exceed Seven Hundred Twenty-Five Thousand (725,000) Shares,
          and
          (b) the total number of shares of Stock that can be issued or transferred
          through Incentive Options shall not exceed Six Million Nine Hundred Ninety
          Five
          Thousand (6,995,000) shares.

        

        
          
            
            

          

          
            5

            
              

            

          

          
            
            

          

        

        

        3.2  Available
          Shares.

        Except
          as
          otherwise provided in Section 3.3, at any time, the number of shares of
          Stock that may then be made subject to issuance or transfer pursuant to
          new
          Awards under the Plan (the “Available Shares”) shall be equal to (a) the
          number of Maximum Shares minus
          (b) the sum of (1) the number of shares of Stock subject to issuance
          or transfer upon exercise or settlement of then outstanding Awards (provided
          that shares of Stock subject to issuance or transfer upon exercise or settlement
          of then outstanding Linked Stock Appreciation Rights shall only be counted
          once,
          and not for both the Option and related Linked Stock Appreciation Right
          and
          provided further that Awards that may but need not be settled in Stock
          shall be
          charged against the number of Maximum Shares in such amounts and at such
          times
          as the Committee shall determine from time to time) and (2) the number of
          shares of Stock that have been issued or transferred upon exercise or settlement
          of Awards.

        

        3.3  Restoration
          of Unused Shares.

        If Stock
          subject to any Award is not issued or transferred, or ceases to be issuable
          or
          transferable, for any reason, including because an Award is forfeited,
          terminated, expires unexercised, is settled in cash in lieu of Stock or
          is
          exchanged for other Awards, the shares of Stock that were subject to that
          Award
          shall no longer be charged against the number of Maximum Shares in calculating
          the number of Available Shares under Section 3.2 and shall again be
          included in Available Shares.

        

        3.4  Description
          of Shares.

        The
          shares of Stock to be delivered under the Plan shall be made available
          from
          (a) authorized but unissued shares of Stock, (b) Stock held in the
          treasury of the Company, or (c) previously issued shares of Stock
          reacquired by the Company, including shares purchased on the open market,
          in
          each situation as the Board of Directors or the Committee may determine
          from
          time to time. All shares of Stock issued or transferred as provided in
          the Plan
          shall be fully paid and non-assessable to the extent permitted by
          law.

        

        3.5  Listing,
          Registration, etc. of Shares.

        If
          at any
          time the Board of Directors shall determine in its discretion that the
          listing,
          registration or qualification of the shares of Stock covered by the Plan
          upon
          any national securities exchange or other trading system or under any state
          or
          federal law, or the consent or approval of any governmental or regulatory
          body,
          is necessary or desirable as a condition of, or in connection with, the
          issuance
          or transfer of shares of Stock under the Plan, no shares of Stock shall
          be
          issued or transferred under the Plan unless and until such listing,
          registration, qualification, consent or approval shall have been effected
          or
          obtained, or otherwise provided for, free of any conditions not acceptable
          to
          the Board of Directors. Nothing in the Plan shall require the Company to
          list, register or qualify any securities, to obtain any such consent or
          approval, or to maintain any such listing, registration, qualification,
          consent
          or approval.

        

        3.6  Reduction
          in Outstanding Shares of Stock.

        Nothing
          in this Article III shall impair the right of the Company to reduce the
          number of outstanding shares of Stock pursuant to repurchases, redemptions,
          or
          otherwise; provided, however, that no reduction in the number of

        
          
            
            

          

          
            6

            
              

            

          

          
            
            

          

        

        outstanding
          shares of Stock shall (a) impair the validity of any outstanding Award,
          whether or not that Award is fully exercisable or fully vested, or
          (b) impair the status of any shares of Stock previously issued or
          transferred pursuant to an Award or thereafter issued or transferred pursuant
          to
          a then-outstanding Award as duly authorized, validly issued, fully paid,
          and
          nonassessable shares.

         

        IV.  

         

         

        

         

         

        ADMINISTRATION
          OF THE PLAN

         

        

        4.1  Committee.

        The
          Board
          of Directors shall designate the Committee to administer the Plan, each
          member
          of which shall at all times be (a) a Non-Employee Director and (b) an Outside
          Director. The number of individuals that shall constitute the Committee
          shall be
          determined from time to time by the Board of Directors, but shall be no
          fewer
          than two (2) individuals. 

        

        4.2  Duration,
          Removal, Etc.

        The members
          of the Committee shall serve at the pleasure of the Board of Directors,
          which
          shall have the power, at any time and from time to time, to remove members
          from
          or add members to the Committee. Removal from the Committee may be with
          or
          without cause. Any individual serving as a member of the Committee shall
          have
          the right to resign from membership on the Committee by written notice
          to the
          Board of Directors. The Board of Directors, and not the remaining members
          of the
          Committee, shall have the power and authority to fill vacancies on the
          Committee, however caused. The Board of Directors shall promptly fill any
          vacancy that causes the number of members of the Committee to be below
          two (2)
          or any other number that Rule 16b-3 or Section 162(m) may require from time
          to time.

        

        4.3  Meetings
          and Actions of Committee.

        The
          Board
          of Directors shall designate which of the Committee members shall be the
          chairman of the Committee. If the Board of Directors fails to designate
          a
          Committee chairman, the members of the Committee shall elect one of the
          Committee members as chairman, who shall act as chairman until the director
          ceases to be a member of the Committee or until the Board of Directors
          elects a
          new chairman. The Committee shall hold its meetings at such times and
          places as the chairman of the Committee may determine. At all meetings
          of the
          Committee, a quorum for the transaction of business shall be required,
          and a
          quorum shall be deemed present if at least a majority of the members of
          the
          Committee are present. At any meeting of the Committee, each member shall
          have
          one vote. All decisions and determinations of the Committee shall be made
          by the
          majority vote or majority decision of all of its members present at a meeting
          at
          which a quorum is present; provided, however, that any decision or determination
          reduced to writing and signed by all of the members of the Committee shall
          be as
          fully effective as if it had been made at a meeting that was duly called
          and
          held. The Committee may make any rules and regulations for the conduct of
          its business that are not inconsistent with the provisions of the Plan,
          the
          Certificate of Incorporation of the Company, the Bylaws of the Company,
          Rule 16b-3 and Section 162(m), to the extent applicable, as the Committee
          may deem advisable.

        

        
          
            
            

          

          
            7

            
              

            

          

          
            
            

          

        

        

        4.4  Committee’s
          Powers.

        Subject
          to the express provisions of the Plan, any applicable Award Agreement,
          Rule 16b-3 and Section 162(m), to the extent applicable, the Committee
          shall have the authority (a) to adopt, amend, and rescind administrative,
          interpretive and other rules and regulations relating to the Plan;
          (b) to determine the Eligible Individuals to whom, and the time or times at
          which, Awards shall be granted; (c) to determine the number of shares of
          Stock, or amount of cash or other property or assets, that shall be the
          subject
          of each Award; (d) to determine the terms and provisions of each Award
          Agreement and any amendments thereto, including provisions defining or
          otherwise
          relating to (i) the term and the period or periods and extent of
          exercisability of the Options, Stock Appreciation Rights and other Awards,
          (ii) the extent to which the transferability of shares of Stock issued or
          transferred pursuant to any Award is restricted, (iii) the effect of
          termination of employment on the Award, and (iv) except as provided in
          Section 13.5, the effect of leaves of absence and the effect of transfers
          of an
          Eligible Individual’s employment from the Company to a Subsidiary or from a
          Subsidiary to the Company (consistent with any applicable regulations of
          the
          Internal Revenue Service and any other requirements of applicable law with
          respect to the same); (e) to construe the respective Award Agreements, the
          Plan, and any rules or regulations with respect thereto; (f) to make
          determinations of the Fair Market Value of the Stock pursuant to the Plan;
          (g) to amend any Award Agreement or waive any provision, condition or
          limitation thereof; (h) to delegate its duties under the Plan to such
          agents as it may appoint from time to time, provided that the Committee
          may not
          delegate its duties with respect to making Awards to Eligible Individuals;
          (i) to take or refrain from taking such other actions as are described in
          the Plan as within the purview of the Committee; and (j) to make all other
          determinations, perform all other acts, and exercise all other powers and
          authority necessary or advisable for administering the Plan, including
          the
          delegation of those ministerial acts and responsibilities as the Committee
          deems
          appropriate. Subject to Rule 16b-3 and Section 162(m), to the extent
          applicable, the Committee may correct any defect, supply any omission or
          reconcile any inconsistency in the Plan, in any Award, or in any Award
          Agreement
          in the manner and to the extent it deems necessary or desirable to carry
          the
          Plan into effect. Any determinations and other actions of the Committee
          with respect to any of the matters referred to in this Section 4.4 or elsewhere
          in the Plan or in any Award Agreement need not be consistent, even among
          Eligible Individuals who are similarly situated and/or who have previously
          received similar or other Awards, except as may be specifically provided
          to the
          contrary in the Plan or in the applicable Award Agreement.
          The determinations and other actions of the Committee with respect to any
          of the matters referred to in this Section 4.4 or elsewhere in the Plan or
          in any Award Agreement shall, except as may be specifically provided to
          the
          contrary in the Plan or in the applicable Award Agreement, be made in the
          sole
          discretion of the Committee (subject to modification or rescission by the
          Board
          of Directors, if consistent with Rule 16b-3 and Section 162(m), to the
          extent applicable) and shall be final, binding and conclusive.

        

        4.5  Counsel,
          Consultants and Agents.

        The
          Committee may employ such legal counsel, consultants and agents as it may
          deem
          desirable for the administration of the Plan and may rely upon any opinion
          received from any such counsel or consultants and any computation

        
          
            
            

          

          
            8

            
              

            

          

          
            
            

          

        

        received
          from any such consultants or agents. Expenses incurred by the Committee
          in the
          engagement of any such counsel, consultants or agents shall be paid by
          the
          Company.

         

        V.  

         

         

        

         

         

        ELIGIBILITY
          AND PARTICIPATION; CERTAIN AWARD TERMS

         

        

        5.1  Eligible
          Individuals.

        Awards
          may be granted pursuant to the Plan only to persons who are Eligible Individuals
          at the time of the grant thereof (and, with respect to Incentive Options,
          satisfy the requirements of Section 5.2). Notwithstanding the preceding
          sentence, except as may otherwise be provided in guidance issued by the
          IRS
          under Section 409A, a person shall not be awarded an Option or Stock
          Appreciation Right pursuant to the Plan if the Subsidiary by which such
          person
          is employed (or to which such person provides services) would not be considered
          part of the same “single employer” as the Company under Sections 414(b) and
          414(c) of the Code. 

        

        5.2  Limitation
          for Incentive Options.

        Notwithstanding
          any provision contained in the Plan to the contrary, (a) a person shall
          not be
          eligible to receive an Incentive Option unless the person is an Eligible
          Individual employed by the Company or any Subsidiary of the Company that
          is a
          subsidiary corporation, or is treated as, or as part of, a subsidiary
          corporation of the Company (within the meaning of Section 424 of the Code)
          at
          the time of the grant thereof, and (b) a person shall not be eligible to
          receive
          an Incentive Option if, immediately before the time the Option is granted,
          that
          person owns (within the meaning of Sections 422 and 424 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 a Subsidiary of the Company that is
          a
          subsidiary corporation, or is treated as, or as part of, a subsidiary
          corporation of the Company (within the meaning of Section 424 of the Code)
          (a
“Ten Percent Shareholder”). Nevertheless, clause (b) of the foregoing sentence
          of this Section 5.2 shall not apply if, at the time the Incentive Option
          is
          granted, the Exercise Price of the Incentive Option is at least one hundred
          and
          ten percent (110%) of the Fair Market Value per share of Stock and the
          Incentive
          Option is not, by its terms, exercisable after the expiration of five (5)
          years
          from the Date of Grant.

        

        5.3  Grant
          of Awards.

        Subject
          to the express provisions of the Plan, the Committee shall determine which
          Eligible Individuals shall be granted Awards from time to time. In making
          grants, the Committee may take into consideration the contribution the
          potential
          Holder has made or may make to the success of the Company or its Subsidiaries
          and such other considerations as the Committee may from time to time determine.
          The Committee shall also determine the number (or the method of determining
          the
          number) of shares of Stock, or amounts (or method of determining the amounts)
          of
          cash or other property or assets, subject to each of the Awards.

        

        5.4  Date
          of Grant.

        The
          date
          on which the Award covered by an Award Agreement is granted (the “Date of
          Grant”) shall be the date specified by the Committee as the effective date

        
          
            
            

          

          
            9

            
              

            

          

          
            
            

          

        

        or
          date
          of grant of an Award. Except as otherwise determined by the Committee,
          in no
          event shall a Holder gain any rights with respect to an Award in addition
          to
          those specified by the Committee in its grant, regardless of the time that
          may
          pass between the grant of the Award and the actual execution or delivery
          of the
          Award Agreement by the Company and (if required in the Award Agreement)
          the Holder. The Committee may invalidate an Award at any time before the
          Award Agreement is executed by the Holder (if such execution is required)
          or is
          delivered to the Holder (if such execution is not required), and any such
          invalidated Award shall be treated as never having been granted.

        

        5.5  Award
          Agreements.

        Each
          Award granted under the Plan shall be evidenced by an Award Agreement that
          is
          executed by the Company and, if required in the Award Agreement, by the
          Eligible
          Individual to whom the Award is granted, and that includes such terms,
          conditions and limitations that the Committee shall deem necessary or desirable.
          More than one Award may be granted under the Plan to the same Eligible
          Individual and be outstanding concurrently (provided, however, that the
          grant of
          certain rights in tandem with an Incentive Option may result in the Incentive
          Option being treated as a Nonstatutory Option). 

        

        5.6  No
          Right to Award.

        The
          adoption of the Plan shall not be deemed to give any person a right to
          be
          granted an Award.

        

        5.7  Limitation
          on Individual Awards.

        No
          Eligible Individual shall, in one calendar year, be granted Awards to which
          more
          than Five Hundred Thousand (500,000) shares of Stock are subject, without
          regard
          to any vesting limitations with respect to such grant.

        

        5.8  Payment
          of Taxes.

        The
          Committee may require a Holder to pay to the Company (or, if the Holder
          is an
          employee of a Subsidiary of the Company, to such Subsidiary), with respect
          to an
          Option or Stock Appreciation Right, at the time of the exercise of such
          Option
          or Stock Appreciation Right, with respect to a Stock Award, at such time
          or
          times as may be designated by the Committee, with respect to a Performance
          Unit,
          at the time of the payment of cash or Stock in connection with the Performance
          Unit, and with respect to Other Equity-Based Rights, at such time or times
          as
          may be designated by the Committee, the amount that the Committee deems
          necessary to satisfy the Company’s or such Subsidiary’s current or future
          obligation to withhold federal, state or local income or other taxes associated
          with the exercise, grant or payment with respect to the relevant Award.
          Upon the
          exercise of an Option or Stock Appreciation Right requiring tax withholding
          (or,
          with respect to a Stock Award, a Performance Unit, or an Other Equity-Based
          Right, prior to such time or times as such payment is due from the Holder
          to the
          Company or such Subsidiary), the Holder may (a) request that the Company
          withhold from the shares of Stock to be issued or transferred to the Holder,
          or
          the amount of cash to be paid to the Holder, the number of shares (based
          upon
          the shares’ Fair Market Value per share as of the day before the date of
          withholding) or the amount of cash necessary to satisfy the Company’s or such
          Subsidiary’s obligation to withhold taxes, the determination as to such
          obligation to be based on the shares’ Fair Market Value per share as of the day
          before the date of exercise (with respect to an Option or Stock Appreciation
          Right) or as of the date on which tax 

        
          
            
            

          

          
            10

            
              

            

          

          
            
            

          

        

        withholding
          is to be made (with respect to Stock Awards, Performance Units or Other
          Equity-Based Rights); (b) request that the Holder be allowed to deliver to
          the Company sufficient shares of Stock (based upon the shares’ Fair Market Value
          per share as of the day before the date of such delivery) to satisfy the
          Company’s or such Subsidiary’s tax withholding obligations; or (c) deliver
          sufficient cash to the Company to satisfy the Company’s or such Subsidiary’s tax
          withholding obligations. Holders who wish to proceed under clause (a) or
          (b) above must make their request to do so at such time and in such manner
          that
          the Committee prescribes from time to time, and such transaction shall
          be
          effected in accordance with such procedures as the Committee may establish
          from
          time to time. Notwithstanding the foregoing, however, the Committee may, at
          its sole option, deny any Holder’s request to proceed under clause (a) or (b)
          above or may impose any conditions it deems appropriate on such action,
          including the escrow of shares of Stock or cash. In the event the Committee
          subsequently determines that the cash amount or the aggregate Fair Market
          Value
          (as determined above) of any shares of Stock withheld or tendered as payment
          of
          any tax withholding obligation is insufficient to discharge that tax withholding
          obligation, then the Holder shall pay to the Company, immediately upon
          the
          Committee’s request, the amount of that deficiency. The Company may also,
          if the Committee so elects, retain any cash and any certificates evidencing
          shares of Stock to which such Holder is entitled upon the exercise of the
          Option
          or Stock Appreciation Right or in connection with a Stock Award or upon
          settlement of a Performance Unit or with respect to any Other Equity-Based
          Right
          as security for the payment of any tax withholding obligation until satisfied,
          and the Company shall have all rights of a secured creditor under the Uniform
          Commercial Code with respect to the same. Each Holder acknowledges that the
          delivery to the Company of Stock acquired by such Holder upon exercise
          of an
          Incentive Option may constitute a disqualifying disposition of such Stock
          for
          purposes of the Code.

        

        5.9  Forfeiture
          and Restrictions on Transfer; Other Conditions.

        Without
          limitation of any other provisions of the Plan or any power of the Board
          of
          Directors or the Committee hereunder, any Award Agreement may contain or
          otherwise provide for, in addition to any terms, conditions or limitations
          required or permitted by other provisions of the Plan, such other terms,
          conditions or limitations as the Committee may deem advisable or proper
          from
          time to time provided any such additional term, condition or limitation
          is not
          inconsistent with the terms of the Plan, including (i) restrictions on the
          transferability of the Award; (ii) restrictions or the removal of
          restrictions upon the exercise of an Award; (iii) restrictions or the
          removal of restrictions on the retention or transfer of any shares of Stock
          acquired pursuant to an Award or otherwise; (iv) options and rights of
          first refusal in favor of the Company and one or more stockholders of the
          Company; (v) requirements that the Holder render substantial services to
          the Company or one or more of its Subsidiaries for a specified period of
          time;
          (vi) restrictions on disclosure and use of certain information regarding
          the Company or other Persons; (vii) restrictions on solicitation of
          employees and other Persons; (viii) restrictions on competition; and (ix)
          other
          terms, conditions or limitations; all of which as the Committee may deem
          proper
          or advisable from time to time.

        

        
          
            
            

          

          
            11

            
              

            

          

          
            
            

          

        

         

        VI.  

         

         

        

         

         

        TERMS
          AND CONDITIONS OF OPTIONS

         

        

        All
          Options granted under the Plan shall comply with, and the related Option
          Agreements shall be subject to, the terms, conditions and limitations set
          forth
          in this Article VI (to the extent each such term, condition or limitation
          applies to the form of Option and provided that, if any such term, condition
          or
          limitation is left to the discretion of the Committee, the Committee determines
          to apply it to such Option) and also to the terms, conditions and limitations
          set forth in Article XIII (to the extent each such term, condition or
          limitation applies to the form of Option and provided that, if any such
          term,
          condition or limitation is left to the discretion of the Committee, the
          Committee determines to apply it to such Option); provided, however, that
          the
          Committee may authorize an Option Agreement that expressly contains or
          is
          subject to terms, conditions and limitations that differ from any of the
          terms,
          conditions and limitations of Article XIII. The Committee may also
          authorize an Option Agreement that contains or is subject to any or all
          of the
          terms, conditions and limitations of Article XII (to the extent each such
          term,
          condition or limitation applies to the form of Option and provided that,
          if any
          such term, condition or limitation is left to the discretion of the Committee,
          the Committee determines to apply it to such Option) or similar terms,
          conditions and limitations; nevertheless, no term, condition or limitation
          of
          Article XII (or any similar term, condition or limitation) shall apply
          to an
          Option Agreement unless the Option Agreement expressly states that such
          term,
          condition or limitation applies.

         

        6.1  Number
          of Shares; Type of Award.

        Each
          Option Agreement shall state the total number of shares of Stock to which
          it relates. Each Option Agreement shall identify the Option evidenced
          thereby as an Incentive Option or Nonstatutory Option, as the case may
          be, and
          no Option Agreement shall cover both an Incentive Option and a Nonstatutory
          Option. 

        

        6.2  Vesting.

        Each
          Option Agreement shall state (i) any time, periods or other conditions
          in or
          pursuant to which the right to exercise the Option or a portion thereof
          shall
          vest and (ii) the number (or method of determining the number) of shares
          of
          Stock with respect to each such vesting.

        

        6.3  Expiration.

        Nonstatutory
          Options and Incentive Options may be exercised during the term determined
          by the
          Committee and set forth in the Option Agreement; provided that no Incentive
          Option shall be exercised after the expiration of a period of ten (10)
          years
          (or, with respect to a Ten Percent Shareholder, five (5) years) commencing
          on
          the Date of Grant of the Incentive Option.

        

        6.4  Exercise
          Price.

        Each
          Option Agreement shall state the exercise price per share of Stock (the
          “Exercise Price”), which shall not be less than the greatest of (a) the par
          value per share of the Stock, (b) one hundred percent (100%) of the Fair
          Market Value per share of the Stock on the Date of Grant of the Option,
          or (c)
          in the case of an Incentive Option granted to a Ten Percent Shareholder,
          one
          hundred ten percent (110%) of the Fair Market Value per share of the Stock
          on
          the Date of Grant of the Option. 

        

        6.5  Method
          of Exercise.

        Each
          Option shall be exercisable only by notice of exercise (the “Exercise Notice”)
          in the manner (including the time period) specified by the Committee from
          time
          to time (which need not comply with Section 15.14 if expressly so provided
          by
          the Committee) to the Secretary of the Company at the chief executive office
          of
          the Company (or to such other person and location as may be designated
          from time
          to time by the Committee) during the term of the Option, which notice shall
          (a) state the number of shares of Stock with respect to which the Option is
          being exercised, (b) be signed or otherwise given by the Holder of the
          Option or by another Person authorized to exercise the Option pursuant
          to
          Section 13.6 or 13.7 (to the extent that each is applicable to the Option)
          or
          pursuant to the relevant Option Agreement, (c) be accompanied by the
          aggregate Exercise Price for all shares of Stock for which the Option is
          exercised in accordance with Section 6.7, and (d) include such other
          information, instruments, and documents as may be required to satisfy any
          other
          condition under the Plan or the relevant Option Agreement or as may be
          reasonably imposed by the Committee. The Option shall not be deemed to
          have been
          exercised unless all of the requirements of the preceding provisions of
          this
          Section 6.5 have been satisfied.

        

        6.6  Incentive
          Option Exercises and Disqualifying Dispositions.

        Except
          as
          provided in Paragraph 13.6(b) or Section 13.7 (to the extent that each
          is
          applicable to the Option), during the Holder’s lifetime, only the Holder may
          exercise an Incentive Option. The Holder of an Incentive Option shall
          immediately notify the Company in writing of any disposition of any Stock
          acquired pursuant to the Incentive Option that would disqualify the Incentive
          Option from being treated as an incentive stock option under Section 422
          of the
          Code (including any disposition of Stock upon exercise of an Award requiring
          exercise, or in connection with the payment of taxes with respect to an
          Award,
          if the same would constitute such a disqualifying disposition). The notice
          shall
          state the number of shares disposed of, the dates of acquisition and disposition
          of the shares, and the consideration received in connection with each
          disposition. 

        

        6.7  Medium
          and Time of Payment.

        The
          Exercise Price of an Option shall be payable in full upon the exercise
          of the
          Option (a) in cash, by cashier’s check, by wire transfer or by other means
          as may be acceptable to the Committee from time to time, (b) with the
          Committee’s prior consent (which consent, with respect to an Incentive Option,
          must be evidenced in the relevant Option Agreement as of the Date of Grant),
          and
          to the extent permitted by applicable law, with shares of Stock that would
          otherwise be issued or transferred to the Holder upon the exercise of the
          Option
          or with shares of Stock already owned by the Holder (but in all events
          excluding
          any shares that are to be or were issued or transferred pursuant to a Restricted
          Stock Award with respect to which the restrictions have not yet expired
          or been
          removed or that otherwise are or will be subject to restrictions on
          transferability or a substantial risk of forfeiture) and having an aggregate
          Fair Market Value at least equal to the aggregate Exercise Price payable
          

        
          
            
            

          

          
            12

            
              

            

          

          
            
            

          

        

        in
          connection with such exercise, and pursuant to such procedures (including
          constructive delivery of such shares of Stock) as the Committee may establish
          from time to time for such purpose, (c) with the Committee’s prior consent
          (which consent, with respect to an Incentive Option, must be evidenced
          in the
          relevant Option Agreement as of the Date of Grant), and to the extent permitted
          by applicable law, in such other forms, under such other terms, and by
          such
          other means (including those specified in Section 6.8) as may be acceptable
          to
          the Committee from time to time, and pursuant to such procedures as the
          Committee may establish from time to time for such purpose, or (d) with the
          Committee’s prior consent (which consent, with respect to an Incentive Option,
          must be evidenced in the relevant Option Agreement as of the Date of Grant),
          by
          any combination of clauses (a), (b) and (c). Unless otherwise provided in
          the relevant Option Agreement, any portion of the Exercise Price that is
          paid
          with shares of Stock that the Holder acquired from the Company, directly
          or
          indirectly, shall be paid only with shares of Stock that the Holder has
          owned
          for more than six (6) months (or such longer or shorter period of time,
          if any,
          as may be required to avoid payment with such shares resulting in a charge
          to
          earnings for financial accounting purposes). If the Committee elects to
          accept shares of Stock in payment of all or any portion of the aggregate
          Exercise Price, then (for purposes of payment of the aggregate Exercise
          Price)
          unless otherwise provided in the relevant Option Agreement those shares
          of Stock
          shall be deemed to have a cash value equal to their aggregate Fair Market
          Value
          determined as of the day before the date of the delivery of the
          Exercise Notice. Each Holder acknowledges that the delivery to the Company
          of Stock acquired by such Holder upon exercise of an Incentive Option may
          constitute a disqualifying disposition of such Stock for purposes of the
          Code.

        

        6.8  Payment
          with Sale Proceeds.

        The Committee
          may (but shall not be required to) approve from time to time (which approval,
          with respect to an Incentive Option, must be evidenced in the relevant
          Option
          Agreement as of the Date of Grant) arrangements with a brokerage firm (provided
          that such arrangements comply with applicable law, including Regulation
          T of the
          Board of Governors of the Federal Reserve System), under which that brokerage
          firm, on behalf of the Holder, shall pay to the Company the aggregate Exercise
          Price of the Option being exercised (either as a loan to the Holder or
          from the
          proceeds of the sale of Stock issued or transferred pursuant to that exercise
          of
          the Option), and the Company shall cause the shares with respect to which
          the
          Option was so exercised to be delivered to the brokerage firm. Such
          transactions shall be effected in accordance with such procedures (which
          may
          include payment of the exercise price by, or delivery of Stock to, such
          brokerage firm) as the Committee may establish from time
          to time.

        

        6.9  Reload
          Provisions.

        The
          Committee may cause one or more Option Agreements to contain provisions
          pursuant
          to which a Holder who pays all or a portion of the Exercise Price of an
          Option,
          or the tax required to be withheld pursuant to the exercise of an Option,
          by
          surrendering (or having withheld) shares of Stock shall automatically be
          granted
          an Option for the purchase of the number of shares of Stock equal to the
          number
          of shares so surrendered (or withheld) (a “Reload Option”). With respect to an
          Incentive Option, no Holder shall be entitled to a Reload Option unless
          the
          Holder’s Option Agreement, as of the Date of Grant, provides for the Reload
          Option. The Date of Grant of the Reload Option shall be the date on which
          the
          Holder surrenders (or the Company withholds) the shares of Stock in respect
          of
          which the Reload Option is granted. The Reload Option shall have an Exercise
          Price equal to the Fair Market Value per share of Stock on the Date of
          Grant of
          the Reload Option and shall have a term that is no longer than the remaining
          term of the underlying Option. If a Reload Option relates to shares surrendered
          or withheld in connection with the exercise of an Incentive Option, then
          for
          purposes of the Plan such Reload Option shall be considered an Incentive
          Option
          provided that such Reload Option otherwise satisfies the requirements for
          an
          incentive stock option under Section 422 of the Code; otherwise, a Reload
          Option
          shall be treated as a Nonstatutory Option for purposes of the Plan. Option
          Agreements containing provisions for Reload Options may contain such terms,
          conditions and limitations with respect to such Reload Options as the Committee
          may determine (which may include vesting provisions, limitations on the
          number
          of shares subject to Reload Options or the number of times Reload Options
          shall
          be granted, or prohibitions on the grant of Reload Options with respect
          to
          options exercised following acceleration of vesting or following or in
          anticipation of a Change in Control). Separate Option Agreements may from
          time to time be granted by the Company to existing Holders of Nonstatutory
          Options or Incentive Options to provide the same benefit to such Holders
          as the
          Reload Options described in the foregoing provisions of this Section 6.9,
          but
          any such stand alone Options shall not be deemed to be Reload Options for
          purposes of the Plan.

        

        6.10  Limitation
          on Aggregate Value of Shares That May Become First Exercisable During Any
          Calendar Year Under an Incentive Option.

        With
          respect to any Incentive Option granted under the Plan, the aggregate Fair
          Market Value of shares of Stock subject to an incentive stock option that
          first
          becomes exercisable by a Holder in any calendar year (under all plans of
          the
          Company, its Subsidiaries that are subsidiary corporations, or are treated
          as,
          or as part of, a subsidiary corporation of the Company (within the meaning
          of
          Section 424 of the Code) or any predecessor corporation) may not (with
          respect
          to that Holder) exceed $100,000, or such other amount as may be prescribed
          under
          Section 422 of the Code. As used in the previous sentence, Fair Market
          Value shall be determined as of the date the Incentive Option is granted,
          and
          the limitation shall be applied by taking into account Incentive Options
          in the
          order in which they were granted. For purposes of this Section 6.10,
“predecessor corporation” means (a) a corporation that was a party to a
          transaction described in Section 424(a) of the Code (or which would be so
          described if a substitution or assumption under that section had been
          effected) with the Company, (b) a corporation which, at the time the new
          incentive stock option (within the meaning of Section 422 of the Code) is
          granted, is a related corporation of the Company, or (c) a predecessor
          corporation of any such corporations. Failure to comply with this Section
          6.10
          (including any such failure resulting from accelerated vesting of an Incentive
          Option, whether under Section 12.1 or Section 13.21 (to the extent that
          either
          is applicable) or otherwise) shall not impair the enforceability or
          exercisability of any Incentive Option, but shall cause the Incentive Option
          to
          be treated as a Nonstatutory Option for federal tax purposes to the extent
          that
          it exceeds the $100,000 limitation described in this Section 6.10.

        

        6.11  No
          Fractional Shares.

        The
          Company shall not in any case be required to sell, issue, transfer or deliver
          any fractional shares with respect to any Option. In lieu of the issuance
          or
          transfer of any fractional share of Stock, the Company shall pay to the
          Holder
          an amount in 

        
          
            
            

          

          
            13

            
              

            

          

          
            
            

          

        

        cash
          equal to the same fraction (as the fractional share) of the Fair Market
          Value of
          a share of Stock determined as of the date of the applicable Exercise
          Notice.

        

        6.12  Other
          Provisions Regarding Incentive Options.

        With
          respect to any Option that is designated in the governing Option Agreement
          as an
          Incentive Option, (i) if any of the terms, conditions or limitations of the
          Plan or the relevant Option Agreement conflict with the requirements of
          Sections 421, 422 and 424 of the Code, as applicable, then those
          conflicting terms, conditions and limitations shall be deemed inoperative
          to the
          extent they so conflict with such requirements, and (ii) if the Plan or
          such Option Agreement does not contain any provision required to be included
          herein or therein under Sections 421, 422 and 424 of the Code, as
          applicable, that provision shall be deemed to be incorporated herein or
          therein
          with the same force and effect as if that provision had been set out at
          length
          herein or therein, in each case unless the Committee determines to treat
          such
          Option (in whole or in part) as a Nonstatutory Option. Notwithstanding
          the
          foregoing, however, (i) to the extent that any Option that was intended
          to
          qualify as an Incentive Option nevertheless cannot so qualify, that Option
          (to
          that extent) shall be deemed a Nonstatutory Option for all purposes of
          the Plan, and (ii) in no event shall this Section 6.12 operate to overcome
          the terms under which such Option vests (including any accelerated vesting,
          to
          the extent applicable).

         

        VII.  

         

         

        

         

         

        STOCK
          APPRECIATION RIGHTS

         

        

        All
          Stock
          Appreciation Rights granted under the Plan shall comply with, and the related
          Award Agreements shall be subject to, the terms, conditions and limitations
          set
          forth in this Article VII (to the extent each such term, condition or limitation
          applies to the form of Stock Appreciation Right and provided that, if any
          such
          term, condition or limitation is left to the discretion of the Committee,
          the
          Committee determines to apply it to such Stock Appreciation Right) and
          also to
          the terms, conditions or limitations set forth in Article XIII (to the
          extent
          each such term, condition or limitation applies to the form of Stock
          Appreciation Right and provided that, if any such term, condition or limitation
          is left to the discretion of the Committee, the Committee determines to
          apply it
          to such Stock Appreciation Right); provided, however, that the Committee
          may
          authorize an Award Agreement governing a Stock Appreciation Right that
          expressly
          contains or is subject to terms, conditions and limitations that differ
          from any
          of the terms, conditions and limitations set forth in Article XIII.
          The Committee may also authorize an Award Agreement governing a Stock
          Appreciation Right that contains or is subject to any or all of the terms,
          conditions and limitations of Article XII (to the extent each such term,
          condition or limitation applies to the form of Stock Appreciation Right
          and
          provided that, if any such term, condition or limitation is left to the
          discretion of the Committee, the Committee determines to apply it to such
          Stock
          Appreciation Right) or
          similar terms, conditions and limitations; nevertheless, no term, condition
          or
          limitation of Article XII (or any similar term, condition or limitation)
          shall
          apply to an Award Agreement governing a Stock Appreciation Right unless
          such
          Award Agreement expressly states that such term, condition or
          limitation applies.

         

        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

        

         

        7.1  Type
          of Award.

        A
          Stock
          Appreciation Right may be granted to an Eligible Individual (a) in
          connection with an Option, either at the time of grant or at any time during
          the
          term of the Option (a “Linked Stock Appreciation Right”), or (b) without
          relation to an Option (a “Non-Linked Stock Appreciation Right”). Each Award
          Agreement relating to a Stock Appreciation Right shall identify the Stock
          Appreciation Rights evidenced thereby as Linked Stock Appreciation Rights
          or
          Non-Linked Stock Appreciation Rights, as the case may be, and no Award
          Agreement
          with respect to Stock Appreciation Rights shall cover both Linked Stock
          Appreciation Rights and Non-Linked Stock Appreciation Rights.

        

        7.2  Linked
          Stock Appreciation Rights.

        A
          Linked
          Stock Appreciation Right shall entitle the Holder, upon exercise, to surrender
          the related Option or any portion thereof, to the extent unexercised, and
          to
          receive payment of an amount computed pursuant to Paragraph 7.2(b). That
          Option shall then cease to be exercisable to the extent surrendered. No
          Linked
          Stock Appreciation Right shall be issued if the Committee determines that
          such
          issuance may cause the Limited Stock Appreciation Right, the related Option,
          or
          both to constitute or to include a deferral of compensation subject to
          Section
          409A. A Linked Stock Appreciation Right shall relate to the same number
          of
          shares of Stock as the Option to which it relates, and shall be subject
          to the
          terms of the Option Agreement for the related Option, but shall also be
          subject
          to the following additional provisions:

        

        (a)  Exercise
          and Transfer.
          A
          Linked Stock Appreciation Right shall be exercisable only at such time
          or times
          and only to the extent that the related Option is exercisable (provided,
          however, that a Linked Stock Appreciation Right shall be exercisable only
          if and
          to the extent that the Fair Market Value per share of Stock that is subject
          to
          the related Option exceeds the Exercise Price for such Option) and shall
          not be
          transferable except to the extent that the related Option is transferable.
          Without limitation of the foregoing, to the extent that the related Option
          terminates, expires or has been exercised, the Linked Stock Appreciation
          Right
          shall terminate.

         

        (b)  Value
          of Right.
          Upon
          the exercise of a Linked Stock Appreciation Right, the Holder shall be
          entitled
          to receive payment from the Company of an amount determined
          by multiplying:

        

        	(1)  	
                The
                  difference obtained by subtracting the Exercise Price of a share
                  of Stock
                  specified in the related Option from the Fair Market Value of a
                  share of
                  Stock on the date of exercise of the Linked Stock Appreciation
                  Right,
                  by

              

         

        	(2)  	
                The
                  number of shares as to which that Linked Stock Appreciation Right
                  has been
                  exercised.

              

         

        

         

        
          
            
            

          

          
            15

            
              

            

          

          
            
            

          

        

        7.3  Non-Linked
          Stock Appreciation Rights.

        A
          Non-Linked Stock Appreciation Right shall be exercisable as determined
          by the
          Committee and set forth in the Award Agreement governing the Non-Linked
          Stock
          Appreciation Right, which Award Agreement shall comply with the following
          provisions:

        

        (a)  Number
          of Shares.
          Each
          Award Agreement shall state the total number of shares of Stock to which
          the
          Non-Linked Stock Appreciation Right relates.

         

        (b)  Vesting.
          Each
          Award Agreement shall state (i) any time, periods or other conditions in
          or
          pursuant to which the right to exercise the Non-Linked Stock Appreciation
          Right
          or a portion thereof shall vest and (ii) the number (or method of determining
          the number) of shares of Stock with respect to each such vesting.

         

        (c)  Expiration.
          Each
          Award Agreement shall state the date at which the Non-Linked Stock Appreciation
          Right shall expire to the extent not previously exercised.

         

        (d)  SAR
          Exercise Price; Value of Right.
          Each
          Award Agreement shall state the SAR Exercise Price, which SAR Exercise
          Price
          shall not be less than one hundred percent (100%) of the Fair Market Value
          per
          share of the Stock on the Date of Grant of the Non-Linked Stock Appreciation
          Right. A Non-Linked Stock Appreciation Right shall entitle the Holder,
          upon
          exercise of the Non-Linked Stock Appreciation Right, to receive payment
          of an
          amount determined by multiplying:

         

        	(1)  	
                the
                  difference obtained by subtracting the SAR Exercise Price from
                  the Fair
                  Market Value of a share of Stock on the date of exercise of the
                  Non-Linked
                  Stock Appreciation Right, by

              

         

        	(2)  	
                the
                  number of vested rights as to which the Non-Linked Stock Appreciation
                  Right has been exercised.

              

         

        7.4  Method
          of Exercise.

        Each
          Stock Appreciation Right shall be exercisable only by notice of exercise
          (the
“Exercise Notice”) in the manner specified by the Committee from time to time
          (which need not comply with Section 15.14 if expressly so provided by the
          Committee) to the Secretary of the Company at the chief executive office
          of the
          Company (or to such other person and location as may be designated from
          time to
          time by the Committee) during the term of the Stock Appreciation Right,
          which
          notice shall (a) state the number of shares of Stock with respect to which
          the Stock Appreciation Right is being exercised, (b) be signed or otherwise
          given by the Holder of the Stock Appreciation Right or by another person
          authorized to exercise the Stock Appreciation Right pursuant to the Plan
          or the
          relevant Award Agreement, and (c) include such other information,
          instruments and documents as may be required to satisfy any other condition
          under the Plan or the relevant Award Agreement. The Stock Appreciation
          Right shall not be deemed to have been exercised unless all of the requirements
          of the preceding provisions of this Section 7.4 have been satisfied.
          Notwithstanding the foregoing, a Non-Linked Stock Appreciation Right shall
          be deemed exercised in full (to the extent that it is vested) on the last
          day of
          its term, if not otherwise exercised by the Holder, provided that the Fair
          Market Value 

        
          
            
            

          

          
            16

            
              

            

          

          
            
            

          

        

        per
          share
          of the shares of Stock subject to the Non-Linked Stock Appreciation Right
          exceeds the SAR Exercise Price of such Non-Linked Stock Appreciation Right
          on
          such date.  

        

        7.5  Limitations
          on Rights.

        Notwithstanding
          Paragraph 7.2(b) and Paragraph 7.3(d), the Committee may limit the
          amount payable upon exercise of a Stock Appreciation Right. Any such
          limitation must be set forth in the Award Agreement governing the Holder’s Stock
          Appreciation Right.

        

        7.6  Payment
          of Rights.

        Payment
          of the amount determined under Paragraph 7.2(b) or Paragraph 7.3(d)
          and Section 7.5 may be made solely in whole shares of Stock valued at the
          Fair Market Value per share of Stock on the date of exercise of the Stock
          Appreciation Right or, if so determined by the Committee, solely in cash
          or a
          combination of cash and Stock; provided, however, that no such payment
          shall be
          made in cash unless the Committee determines that a payment in such form
          will
          not cause the Stock Appreciation Right or any payment made with respect
          thereto
          to be treated as a deferral of compensation subject to the requirements
          of
          Section 409A. If the Committee decides to make full payment in shares of
          Stock
          and the amount payable results in a fractional share, payment for the fractional
          share shall be made in cash (subject to the proviso in the preceding sentence).
          

         

        VIII.  

         

         

        

         

         

        STOCK
          AWARDS

         

        

        All
          Stock
          Awards granted under the Plan shall comply with, and the related Award
          Agreements shall be subject to, the terms, conditions and limitations set
          forth
          in this Article VIII (to the extent each such term, condition or limitation
          applies to the form of Stock Award and provided that, if any such term,
          condition or limitation is left to the discretion of the Committee, the
          Committee determines to apply it to such Stock Award) and also to the terms,
          conditions and limitations set forth in Article XIII (to the extent applicable
          to the form of Stock Award and provided that, if any such term, condition
          or
          limitation is left to the discretion of the Committee, the Committee determines
          to apply it to such Stock Award); provided, however, that the Committee
          may
          authorize an Award Agreement governing a Stock Award that expressly contains
          or
          is subject to terms, conditions and limitations that differ from the terms,
          conditions and limitations set forth in Article XIII. The Committee may
          also authorize an Award Agreement governing a Stock Award that contains
          or is
          subject to any or all of the terms, conditions and limitations of Article
          XII
          (to the extent applicable to the form of Stock Award and provided that,
          if any
          such term, condition or limitation is left to the discretion of the Committee,
          the Committee determines to apply it to such Stock Award) or similar terms,
          conditions and limitations; nevertheless, no term, condition or limitation
          of
          Article XII (or any similar term, condition or limitation) shall apply
          to an
          Award Agreement governing a Stock Award unless the Award Agreement expressly
          states that such term, condition or limitation applies.

         

        

         

        
          
            
            

          

          
            17

            
              

            

          

          
            
            

          

        

        8.1  Number
          of Shares; Type of Award.

        Each
          Award Agreement governing a Stock Award shall state the total number of
          shares
          of Stock to which it relates and shall designate each share as either associated
          with a Restricted Stock Award or a Stock Bonus Award.

        

        

        8.2  Restrictions
          Applicable to Restricted Stock Awards.

        Unless
          otherwise provided in the relevant Award Agreement, all shares of Stock
          granted
          or sold pursuant to Restricted Stock Awards made under the Plan shall be
          subject
          to the following terms, conditions and limitations:

        

        (a)  Transferability.
          The
          shares may not be sold, transferred or otherwise alienated or hypothecated
          until
          the restrictions are removed or expire.

         

        (b)  Legend.
          Each
          certificate representing such shares shall bear a legend making appropriate
          reference to the restrictions imposed.

         

        (c)  Possession.
          The
          Committee may (i) authorize issuance of a certificate for shares associated
          with a Restricted Stock Award only upon removal or expiration of the applicable
          restrictions, (ii) require the Company to retain physical custody of
          certificates representing shares issued or transferred pursuant to Restricted
          Stock Awards during the restriction period and require the Holder of the
          Award
          to execute stock powers in blank for those certificates and deliver those
          stock
          powers to the Company, (iii) require the Holder to enter into an escrow
          agreement providing that the certificates representing shares issued or
          transferred pursuant to Restricted Stock Awards shall remain in the physical
          custody of an escrow holder until all restrictions are removed or expire,
          or
          (iv) take such other steps as the Committee may determine in order to
          enforce such restrictions.

         

        (d)  Expiration
          or Removal of Restrictions.
          The
          restrictions imposed pursuant to this Section 8.2 on Restricted Stock
          Awards shall expire as determined by the Committee and set forth in the
          applicable Award Agreement. Expiration of the restrictions may be based
          on or
          conditioned on the passage of time, continuing employment or service as
          an
          employee or officer, achievement of performance objectives, or other events,
          occurrences or conditions determined by the Committee. Each Restricted
          Stock Award may have different restrictions, including a different restriction
          period, as determined by the Committee. The Committee may remove any
          restriction or reduce any restriction period applicable to a particular
          Restricted Stock Award. Upon the expiration or removal of all restrictions,
          the
          Company shall deliver to the Holder of the Restricted Stock Award, as soon
          as
          practicable following the request of such Holder, a certificate representing
          the
          number of shares for which such restrictions have expired or been removed,
          free
          of any restrictive legend relating to the expired or removed restrictions.
          

         

        (e)  Rights
          as Stockholder.
          Subject
          to the provisions of this Section 8.2, the Committee may determine what
          rights, if any, the Holder shall have with respect to the Restricted Stock
          Awards granted or sold, including any right to vote the related shares
          or to

         

        
          
            
            

          

          
            18

            
              

            

          

          
            
            

          

        

        receive
          dividends and other distributions paid or made with respect
          thereto.

         

        (f)  Other
          Conditions.
          The
          Committee may impose such other terms, conditions or limitations on any
          shares
          granted or sold pursuant to Restricted Stock Awards made under the Plan
          as it
          may deem advisable, including (i) restrictions under the Securities Act or
          Exchange Act, (ii) restrictions relating to the requirements of any
          securities exchange or quotation system upon which the shares or shares
          of the
          same class are listed or traded, and (iii) restrictions relating to any
          state or foreign securities law applicable to the shares.

         

        8.3  Stock
          Bonus Awards.

        Any
          shares of Stock granted or sold pursuant to Stock Bonus Awards made under
          the
          Plan shall not be subject to vesting or other restrictions under Section
          8.2
          unless the Committee specifically provides otherwise in the related Award
          Agreement; however, the Committee may, in the related Award Agreement or
          otherwise, impose other terms, conditions and limitations with respect
          to any
          such shares of Stock, even if similar or identical to the provisions set
          forth
          in Section 8.2.

        

        8.4  Purchase
          and Payment.

        If
          any
          shares of Stock are to be sold rather than granted pursuant to Restricted
          Stock
          Awards or Stock Bonus Awards made under the Plan, then the relevant Award
          Agreement shall set forth the price to be paid for such shares and the
          method
          of payment.

        

        8.5  Compliance
          with Section 409A.
          Each
          Restricted Stock Award or Stock Bonus Award shall comply with the requirements
          of subsection (a) of Section 409A, if applicable, and be operated in accordance
          with such requirements.

         

        IX.  

         

         

        

         

         

        PERFORMANCE
          UNITS

         

        

        All
          Performance Units granted under the Plan shall comply with, and the related
          Award Agreements shall be subject to, the terms, conditions and limitations
          set
          forth in this Article IX (to the extent each such term, condition or limitation
          applies to the form of Performance Unit and provided that, if any such
          term,
          condition or limitation is left to the discretion of the Committee, the
          Committee determines to apply it to such Performance Unit) and also to
          the
          terms, conditions and limitations set forth in Article XIII (to the extent
          each
          such term, condition or limitation applies to the form of Performance Unit
          and
          provided that, if any such term, condition or limitation is left to the
          discretion of the Committee, the Committee determines to apply it to such
          Performance Unit); provided, however, that the Committee may authorize
          an Award
          Agreement governing a Performance Unit that expressly contains or is subject
          to
          terms, conditions and limitations that differ from the terms, conditions
          and
          limitations set forth in Article XIII. The Committee may also authorize an
          Award Agreement governing a Performance Unit that contains or is subject
          to any
          or all of the terms, conditions and limitations of Article XII (to the
          extent
          each such term, condition or limitation applies to the form of Performance
          Unit
          and provided that, if any such term, condition or limitation is left to
          the
          discretion of the Committee, the Committee determines to apply it to such
          Performance Unit) or similar terms, conditions and 

         

        
          
            
            

          

          
            19

            
              

            

          

          
            
            

          

        

        limitations;
          nevertheless, no term or provision of Article XII (or any similar term,
          condition or limitation) shall apply to an Award Agreement governing a
          Performance Unit unless such Award Agreement expressly states that such
          term,
          condition or limitation applies.

         

        9.1  Number
          of Units.

        Each
          Award Agreement governing a Performance Unit shall state the total number
          of
          Performance Units to be awarded under that Award Agreement. 

        

        9.2  Performance
          Period, Vesting, Etc.

        Each
          Award Agreement governing a Performance Unit shall state (i) the beginning
          and
          ending dates of the relevant Performance Period(s), (ii) any time, periods
          or
          other conditions in or pursuant to which the right to receive the Performance
          Unit or a portion thereof shall vest and (iii) the number of Performance
          Units
          (or portions thereof) with respect to each such vesting. 

        

        9.3  Multiple
          Grants.

        The
          Committee may make grants of Performance Units in such a manner that two
          or more
          Performance Periods (which need not be the same period or of the same duration)
          are in progress simultaneously. At or before the beginning of each Performance
          Period, the Committee shall establish the contingent value of each Performance
          Unit for that Performance Period, which may vary depending on the degree
          to
          which performance objectives established by the Committee are met.

        

        9.4  Performance
          Standards.

        At
          or
          before the beginning of each Performance Period, the Committee shall
          (i) establish for that Performance Period such specific performance
          objectives as the Committee believes are relevant to the Company’s overall
          business objectives, (ii) determine the minimum and maximum value of a
          Performance Unit (which may be equal to the Fair Market Value per share
          of Stock
          as of a specified date) and the value of a Performance Unit based on the
          degree
          to which performance objectives are achieved, exceeded or not achieved,
          (iii) determine a minimum performance level below which Performance Units
          will be assigned a value of zero, and a maximum performance level above
          which
          the value of Performance Units will not increase, and (iv) notify each
          Holder of a Performance Unit for that Performance Period in writing of
          the
          established performance objectives and minimum, target, and maximum Performance
          Unit value for that Performance Period.

        

        9.5  Modification
          of Standards.

        If
          the
          Committee determines that the established performance measures or objectives
          are
          no longer suitable to the Company’s objectives because of a change in the
          Company’s business, operations, corporate structure, capital structure, or other
          conditions the Committee deems to be material, the Committee may modify
          the
          performance measures and objectives as it considers appropriate
          and equitable.

        

        9.6  Payment
          for Units.

        The
          basis
          for payment of Performance Units for a given Performance Period shall be
          the
          achievement of those performance objectives determined by the 

        
          
            
            

          

          
            20

            
              

            

          

          
            
            

          

        

        Committee
          at the beginning of the Performance Period (subject to modification pursuant
          to Section 9.5). If minimum performance is not achieved or exceeded for a
          Performance Period, no payment shall be made and all contingent rights
          shall cease. If minimum performance is achieved or exceeded, the value of a
          Performance Unit shall be based on the degree (as determined by the Committee)
          to which actual performance exceeded the pre-established (or modified)
          minimum
          performance standards. Unless otherwise provided in the relevant Award
          Agreement, the amount of payment shall be determined by multiplying the
          number
          of Performance Units granted at the beginning of the Performance Period
          that
          have vested by the final Performance Unit value. Payments shall be made
          in whole
          shares of Stock valued at Fair Market Value on the last day of the applicable
          Performance Period or, if so determined by the Committee, solely in cash
          or a
          combination of cash and Stock. If the Committee decides to make full payment
          in
          shares of Stock and the amount payable results in a fractional share, payment
          for the fractional share shall be made in cash. In the event that shares of
          Stock that are subject to substantial risk of forfeiture are awarded in
          satisfaction of Performance Units, such shares may be registered in the
          name of
          the Holder and deposited, together with a stock power endorsed in blank,
          with
          the Company. Except as may be otherwise provided in the relevant Award
          Agreement, any payments with respect to Performance Units may be made in
          a lump
          sum or in installments, as the Committee may determine, and any lump sum
          payments shall be made as soon as practicable following the end of the
          relevant
          Performance Period(s). 

        

        9.7  Compliance
          with Section 409A.
          Each
          Performance Unit granted under the Plan shall comply with the requirements
          of
          subsection (a) of Section 409A, if applicable, and be operated in accordance
          with those requirements.

         

        X.  

         

         

        

         

         

        AWARDS
          TO NON-EMPLOYEE DIRECTORS

         

        

        10.1 Annual
          Awards to Non-Employee Directors.
          Subject
          to adjustment pursuant to Section 13.1, each Non-Employee Director shall
          receive, for each calendar year that the Plan is in effect, pursuant to
          an
          irrevocable election to be made by each individual Non-Employee Director
          by the
          later of the end of the calendar year immediately preceding the calendar
          year
          for which such grant is made or 30 days after his initial appointment or
          election as a director (each, an “Annual Non-Employee Director Election”), one
          of the following (each of (a), (b) or (c) below is hereinafter referred
          to as a
“Non-Employee Director Award”):

        

        (a)  a
          Restricted Stock Award totaling 2,000 shares (or such lesser or greater
          amount
          (but not to exceed 4,000 shares) as may be determined by the Committee
          in its
          discretion);

         

        (b)  an
          Award
          of Nonstatutory Options having a value equivalent to the value of the Restricted
          Stock Award contemplated by Section 10.1(a) above as of the Date of Grant,
          

         

        
          
            
            

          

          
            21

            
              

            

          

          
            
            

          

        

        which
          equivalent value shall be determined in accordance with Section 10.2;
          or

         

        (c)  a
          combination of Awards of Restricted Stock and Nonstatutory Options in such
          proportions as may as specified by the Non-Employee Director in his or
          her
          Annual Non-Employee Director Election, which together have a value equivalent
          to
          the value of the Restricted Stock Award contemplated by Section 10.1(a)
          above as
          of the Date of Grant, which equivalent value shall be determined in accordance
          with Section 10.2.

         

        10.2 Valuation
          of Awards.
          The
          Committee shall determine the value of any Award of Restricted Stock or
          Nonstatutory Options pursuant to Section 10.1 using any recognized valuation
          methodology (including assumptions) selected by the Committee in its absolute
          discretion.

         

        10.3 Terms
          of Awards.
          The
          Committee in its discretion shall determine the Date of Grant and the amount
          and
          terms of each Non-Employee Director Award, in each case subject to the
          terms,
          conditions and limitations of this Plan. Notwithstanding the foregoing,
          (a) each
          Non-Employee Director’s Award for the calendar year ending December 31, 2005
          shall consist solely of Restricted Stock; (b) any Non-Employee Director
          who
          fails to make an Annual Non-Employee Director Election for any calendar
          year
          shall receive an Award consisting solely of Restricted Stock, notwithstanding
          any election from any prior year to the contrary; (c) if an individual
          serving
          as a Non-Employee Director on the Date of Grant for a calendar year pursuant
          to
          Section 10.1 commenced service as a Non-Employee Director after January
          1 of
          such calendar year, the Committee may (but shall not be required to) determine
          that the Non-Employee Director Award be reduced to reflect such individual’s
          partial year of service; and (d) if a Non-Employee Director is not a member
          of
          the Board of Directors on the Date of Grant, such Non-Employee Director
          shall
          not be entitled to a Non-Employee Director Award for such calendar year
          pursuant
          to Section 10.1, provided, that the Committee may (but shall not be required
          to)
          determine that a Non-Employee Director Award be made to such Non-Employee
          Director as of a date in such calendar year designated by the Committee
          and be
          reduced to reflect such individual’s partial year of service.

         

        10.4 Terms
          of Nonstatutory Options.
          Any
          Award of Nonstatutory Options pursuant to Section 10.1 shall have the following
          terms, subject to any additional or different terms, conditions or limitations
          specified pursuant to this Plan or in the Award Agreement relating to such
          Award: 

         

        (a) such
          Nonstatutory Options shall become exercisable in full six months after
          their
          Date of Grant and shall not be exercisable after the tenth (10th)
          anniversary of their Date of Grant; and 

         

        (b)  the
          Exercise Price under each Nonstatutory Option shall be 100% of the

        
          
            
            

          

          
            22

            
              

            

          

          
            
            

          

        

        Fair
          Market Value per share of the Stock on the Date of Grant of the Nonstatutory
          Option.

         

        XI.  

         

         

        

         

         

        OTHER
          EQUITY-BASED RIGHTS

         

        

        The
          Committee is authorized to grant to Eligible Individuals such Awards (other
          than
          Options, Stock Appreciation Rights, Stock Awards, or Performance Units)
          that are
          denominated or payable in, valued in whole or in part by reference to,
          or
          otherwise based on or related to, Stock (including, without limitation,
          securities convertible into Stock), as may be deemed by the Committee to
          be
          consistent with the purposes of the Plan; provided, however, that such
          grants
          must comply with applicable law. Without limitation of the foregoing, each
          such
          Award shall comply with the requirements of Section 409A of the Code, if
          applicable, and be operated in accordance with such requirements. The terms,
          conditions and limitations of Other Equity-Based Rights shall be set forth
          in
          the Award Agreements governing the relevant Other Equity-Based Rights and
          may
          contain or be subject to such provisions in addition to those required
          by the
          Plan as the Committee may deem advisable. All Other Equity-Based Rights
          granted under the Plan shall be subject to the terms, conditions and limitations
          set forth in Article XIII (to the extent each such term, condition or limitation
          applies to the form of Other Equity-Based Right and provided that, if any
          such
          term, condition or limitation is left to the discretion of the Committee,
          the
          Committee determines to apply it to such Other Equity-Based Right); provided,
          however, that the Committee may authorize an Award Agreement governing
          an Other
          Equity-Based Right which expressly contains or is subject to terms, conditions
          and limitations that differ from any of the terms, conditions and limitations
          set forth in Article XIII. The Committee may also authorize an Award Agreement
          governing an Other Equity-Based Right that contains or is subject to any
          or all
          of the terms, conditions and limitations of Article XII (to the extent
          that each
          such term, condition or limitation applies to the form of Other Equity-Based
          Right and provided that, if any such term, condition or limitation is left
          to
          the discretion of the Committee, the Committee determines to apply it to
          such
          Other Equity-Based Right) or similar terms, conditions and limitations;
          nevertheless, no term, condition or limitation of Article XII (or any similar
          term, condition or limitation) shall apply to an Award Agreement governing
          an
          Other Equity-Based Right unless such Award Agreement expressly states that
          such
          term, condition or limitation applies. Shares of Stock or other securities
          delivered pursuant to a purchase right granted under an Award related to
          an
          Other Equity-Based Right shall be purchased for such consideration, which
          may be
          paid by such method or methods and in such form or forms, including cash,
          Stock,
          other securities, other Awards, other property or assets, or any combination
          thereof, as the Committee shall determine, the value of which consideration,
          as
          established by the Committee, shall not be less than the aggregate Fair
          Market
          Value of such shares of Stock or the fair market value (as determined by
          the
          Committee) of such other securities, other Awards or other property or
          assets as
          of the Date of Grant (or, if the Committee so determines, in the case of
          any
          such purchase right retroactively granted in tandem with or in substitution
          for
          another Award or any outstanding award granted under any other plan of
          the
          Company, on the Date of Grant of such other Award or award).

        

        
          
            
            

          

          
            23

            
              

            

          

          
            
            

          

        

         

        XII.  

         

         

        

         

         

        CHANGE
          IN CONTROL PROVISIONS

         

        

        The
          Committee may authorize an Award that contains or is subject to any or
          all of
          the terms, conditions and limitations of this Article XII or similar terms,
          conditions and limitations; nevertheless, no term, condition or limitation
          of
          this Article XII (or any similar term, condition or limitation) shall apply
          to
          an Award unless the related Award Agreement expressly states that such
          term,
          condition or limitation applies.

        

        12.1  Changes
          in Control.

        Immediately
          prior to the occurrence of a Change in Control (or at such other time prior
          to a
          Change in Control or proposed Change in Control as may be determined by
          the
          Committee), (a) all outstanding Options and Stock Appreciation Rights shall
          immediately become fully vested and exercisable in full, including that
          portion
          of any Options or Stock Appreciation Rights that pursuant to the terms
          and
          provisions of the applicable Award Agreement had not yet become exercisable;
          (b) the expiration of the restrictions applicable to all outstanding
          Restricted Stock Awards shall immediately be accelerated so that the Stock
          subject to those Awards shall be owned by the Holders thereof without transfer
          restrictions or risks of forfeiture; and (c) such other results shall take
          place
          with respect to any outstanding Stock Bonus Awards, Performance Units or
          Other
          Equity-Based Rights as may be set forth in the relevant Award Agreements
          for
          such Stock Bonus Awards, Performance Units and Other Equity-Based Rights.
          Nothing in this Section 12.1 shall impose on any Holder any obligation
          to
          exercise any Award immediately before or upon any Change in Control, nor
          shall
          any Holder forfeit the right to exercise any Award during the remainder
          of the
          original term of the Award because of a Change in Control, except as provided
          under Article XIII (if applicable), under other provisions governing
          termination or expiration of the applicable Award, or as provided in the
          following sentence. Notwithstanding the foregoing, the Committee may, by
          notice
          to any or all Holders, provide that all or any portion of any outstanding
          Option
          or Stock Appreciation Right (whether vested prior to the Change in Control
          or
          subject to accelerated vesting due to the Change in Control) that is not
          exercised within a specified time period (as determined by the Committee)
          ending
          on or before the Change in Control shall terminate upon the Change in Control
          (or at such later time as may be determined by the Committee) and in such
          event
          such unexercised Options or Stock Appreciation Rights shall terminate upon
          the
          Change in Control, notwithstanding any provisions of this Plan that would
          allow
          for a later exercise, including Article XIII if applicable.

         

        XIII.  

         

         

        

         

         

        ADDITIONAL
          PROVISIONS

         

        

        The
          terms, conditions and limitations of this Article XIII shall apply to each
          Award
          (unless, pursuant to the relevant Award Agreement, such term, condition
          or
          limitation is inapplicable or is altered); provided, however, that the
          Committee
          may authorize an Award 

        
          
            
            

          

          
            24

            
              

            

          

          
            
            

          

        

        Agreement
          that expressly contains terms, conditions and limitations that differ from
          the
          terms, conditions and limitations set forth in this Article XIII.

        

        13.1  Adjustment
          of Awards and Authorized Stock.

        The
          terms
          of an Award and the Stock authorized for issuance or transfer under the
          Plan
          shall be subject to adjustment from time to time in accordance with the
          following provisions:

        

        (a)  In
          the
          event that the Committee shall determine that any dividend or other distribution
          (whether in the form of cash, Stock, other securities, or other property
          or
          assets), reclassification, consolidation, Stock split, reverse Stock split,
          recapitalization, reorganization, merger, plan of exchange, split-up, spin
          off,
          combination, repurchase, issuance or transfer of securities or other similar
          transaction or event affects the shares of Stock such that an adjustment
          is
          determined by the Committee to be appropriate in order to prevent dilution
          or
          enlargement of the benefits or potential benefits made or intended to be
          made
          available under the Plan, then the Committee shall, in such manner as it
          may
          deem equitable, (i) adjust any or all of (w) the number and type of shares
          of Stock (or other securities, property or assets) which thereafter may
          be made
          the subject of Awards, (x) the number and type of shares of Stock (or other
          securities, property or assets) subject to outstanding Awards, (y) the
          number and type of shares of Stock (or other securities, property or assets)
          specified as the Maximum Shares, Available Shares, any limitation per Eligible
          Individual (pursuant to Section 5.7 or otherwise) or other restriction,
          and
          (z) the grant, purchase or exercise price of, or amount payable with
          respect to, any Award; or (ii) if deemed appropriate by the Committee,
          provide
          for a cash payment to the Holder of an outstanding Award. Notwithstanding
          the
          foregoing, however, with respect to any Awards of Incentive Options, no
          such
          adjustment shall be authorized except to the extent that such adjustment
          complies with the rules of Section 424(a) of the Code, and in no event
          shall any such adjustment be made that would render any Incentive Option
          granted
          hereunder other than an “incentive stock option” for purposes of
          Section 422 of the Code (unless the Committee determines to treat such
          Option as a Nonstatutory Option). In addition, notwithstanding the foregoing,
          with respect to any Option or Stock Appreciation Right, no adjustment shall
          be
          made that would cause such Option or Stock Appreciation Right to constitute
          a
          deferral of compensation subject to the requirements of Section
          409A.

         

        (b)  Whenever
          outstanding Awards are required to be adjusted as provided in this Section
          13.1,
          the Committee shall promptly prepare and provide to each Holder a notice
          setting
          forth, in reasonable detail, the event requiring adjustment, the amount
          of the
          adjustment, the method by which such adjustment was calculated, and the
          change
          in price and the number of shares of Stock, other securities, cash, property
          or
          assets purchasable subject to each Award after giving effect to the
          adjustments.

        

        (c)  Adjustments
          under Paragraph 13.1(a) shall be made by the Committee.
          No fractional interests shall be issued or transferred under the Plan on
          account of any such adjustments.

        

        (d)  The
          existence of the Plan and any Awards granted hereunder shall not affect
          in any
          way the right or power of the Company or its shareholders to make or authorize
          any 

        
          
            
            

          

          
            25

            
              

            

          

          
            
            

          

        

        and
          all
          adjustments, recapitalizations, reorganizations or other changes in the
          Company’s capital structure or business, or any merger or consolidation of the
          Company, or any issue of bonds, debentures, preferred or prior preference
          stock
          or other securities ahead of or affecting the Company’s common stock or the
          rights thereof, or the dissolution or liquidation of the Company or any
          sale,
          exchange or transfer of all or any part of its assets or business, or any
          other
          corporate act or proceedings, whether of a character similar to that described
          in Paragraph 13.1(a) or this Paragraph 13.1(d) or otherwise. Except as
          may be
          expressly provided in this Section 13.1, the Company’s issuance or transfer
          of securities of any class, for money, services, other property or assets,
          or
          otherwise, upon direct sales, upon the exercise of rights or warrants to
          subscribe therefor, upon conversion of shares or obligations of the Company
          convertible into shares, or otherwise, shall not affect, and no adjustment
          by
          reason thereof shall be made with respect to, the number, price or other
          attributes of Stock subject to the Plan or to Awards granted
          hereunder.

        

        13.2  Termination
          of Employment Other than for Death, Disability or Normal
          Retirement.

        Subject
          to Sections 13.23 and 13.24, if a Holder’s employment is terminated for any
          reason other than that Holder’s death, Disability or Normal Retirement, then the
          following provisions shall apply to all Awards held by that Holder:

        

        (a)  If
          such
          termination was by the Company or a Subsidiary, as applicable, as a result
          of a
          Covered Event, then the following provisions shall apply to all Awards
          held by
          that Holder:

         

        	(1)  	
                That
                  portion, if any, of all Options or Stock Appreciation Rights held
                  by that
                  Holder that have not been exercised as of the time of the termination
                  of
                  employment shall be null and void as of the time of the termination
                  of
                  employment; 

              

         

        	(2)  	
                That
                  portion, if any, of any Restricted Stock Awards held by that Holder
                  with
                  respect to which the restrictions have not expired or been removed
                  (by
                  acceleration or otherwise) as of the time of the termination of
                  employment
                  shall be forfeited as of the time of the termination of employment;
                  and
                  

              

         

        	(3)  	
                Except
                  as may be expressly provided in this Paragraph 13.2(a) or in the
                  relevant
                  Award Agreement, all other Awards held by that Holder shall be
                  null and
                  void as of the time of the termination of employment; provided,
                  however,
                  that the foregoing shall not result in the forfeiture of any cash
                  previously paid to, or shares of Stock (other than shares subject
                  to
                  restrictions at the time of the termination of employment) previously
                  issued or transferred to, such Holder under the
                  Plan.

              

        

        
          
            
            

          

          
            26

            
              

            

          

          
            
            

          

        

        

        (b)  If
          such
          termination was (i) by the Company or a Subsidiary, as applicable, but
          not as a
          result of a Covered Event or (ii) by the Holder, then the following provisions
          shall apply to all Awards held by that Holder: 

         

        	(1)  	
                That
                  portion, if any, of all Options or Stock Appreciation Rights held
                  by that
                  Holder that are not yet exercisable (by acceleration or otherwise)
                  as of
                  the time of the termination of employment shall be null and void
                  as of the
                  time of the termination of employment; 

              

         

        	(2)  	
                That
                  portion, if any, of all Options or Stock Appreciation Rights held
                  by that
                  Holder that are exercisable (by acceleration or otherwise) but
                  have not
                  been exercised as of the time of the termination of employment
                  shall be
                  exercisable by that Holder until the earlier
                  of:

              

        

        	(A)  	
                The
                  termination of the Option or Stock Appreciation Right;
                  or

              

         

        	(B)  	
                (i) three
                  (3) months after the date of the termination of employment in the
                  case of
                  termination by the Company or a Subsidiary but not as a result
                  of a
                  Covered Event; and (ii) thirty (30) days after the date of the
                  termination of employment in the case of termination by the Holder;
                  provided, however, that if the termination was by the Company but
                  not as a
                  result of a Covered Event and the Holder dies within the three
                  (3) month
                  period described in clause (i) of this subparagraph or if the termination
                  was by the Holder and the Holder dies with the thirty (30) day
                  period
                  described in clause (ii) of this subparagraph, then such three
                  (3) month
                  period or such thirty (30) day period, as applicable, shall automatically
                  be extended to one (1) year after the date of the termination of
                  employment;

              

        

        (and
          any
          portion of any Option or Stock Appreciation Right not exercised prior to
          the
          expiration of the relevant period shall be null and void);

        

        	(3)  	
                That
                  portion, if any, of any Restricted Stock Awards held by that Holder
                  with
                  respect to which the restrictions have not expired or been removed
                  (by
                  acceleration or otherwise) as of the time of the termination of
                  employment
                  shall be forfeited as of the time of the termination of
                  employment;

              

        

        
          
            
            

          

          
            27

            
              

            

          

          
            
            

          

        

        

        	(4)  	
                That
                  portion, if any, of any Performance Units held by that Holder that
                  have
                  not been fully earned (by acceleration or otherwise) at the time
                  of the
                  termination of employment shall be forfeited as of the time of
                  termination
                  of employment; and

              

         

        	(5)  	
                Except
                  as may be expressly provided in this Paragraph 13.2(b) or in the
                  relevant
                  Award Agreement, all other Awards held by that Holder shall be
                  null and
                  void as of the time of the termination of employment; provided,
                  however,
                  that the foregoing shall not result in the forfeiture of any cash
                  previously paid to, or shares of Stock (other than shares subject
                  to
                  restrictions at the time of the termination of employment) previously
                  issued or transferred to, such Holder under the Plan.
                  

              

        

        13.3  Termination
          of Employment for Death or Disability.

        Subject
          to Sections 13.23 and 13.24, if a Holder’s employment is terminated by reason of
          the death or Disability of such Holder, then the following provisions shall
          apply to all Awards held by that Holder: 

        

        

        (a)  That
          portion, if any, of all Options or Stock Appreciation Rights held by that
          Holder
          that are not yet exercisable (by acceleration or otherwise) as of the time
          of
          the termination of employment shall be null and void as of the time of
          the
          termination of employment; 

         

        (b)  That
          portion, if any, of all Options or Stock Appreciation Rights held by that
          Holder
          that are exercisable (by acceleration or otherwise) but have not been exercised
          as of the time of the termination of employment shall be exercisable by
          that
          Holder or that Holder’s Designated Beneficiary, guardian, legal representatives,
          legatees or distributees until the earlier of: 

         

        	(1)  	
                The
                  termination of the Option or Stock Appreciation Right; or
                  

              

         

        	(2)  	
                one
                  (1) year after the date of the termination of employment;
                  

              

         

        (and
          any
          portion of any Option or Stock Appreciation Right not exercised prior to
          expiration of the relevant period shall be null and void);

         

        (c)  That
          portion, if any, of any Restricted Stock Awards held by that Holder with
          respect
          to which the restrictions have not expired or been removed (by acceleration
          or
          otherwise) as of the time of the termination of employment shall be forfeited
          as
          of the time of the termination of employment; provided, however, that,
          (i)
          subject to clause (ii) below, upon the time of the termination of employment,
          such restrictions shall be deemed removed with respect to such number of
          shares
          of Stock subject to each such Restricted Stock Award as is equal to the
          product
          of (x) a fraction, the numerator of which is the number of completed months
          elapsed 

         

        
          
            
            

          

          
            28

            
              

            

          

          
            
            

          

        

        from
          the
          Date of Grant through the time of the termination of employment and the
          denominator of which is the number of months in the original restriction
          period
          for the relevant Restricted Stock Award and (y) the number of shares of
          Stock
          subject to the relevant Restricted Stock Award; and (ii) clause (i) above
          shall
          not apply if such restrictions, pursuant to the relevant Award Agreement,
          were
          to expire on a monthly or daily basis;

         

        (d)  That
          portion, if any, of any Performance Units held by that Holder that have
          not been
          fully earned (by acceleration or otherwise) at the time of the termination
          of
          employment shall be forfeited as of the time of termination of employment,
          unless the Committee, taking into consideration the performance of such
          Holder
          and the performance of the Company over the relevant Performance Period
          (or, in
          the discretion of the Committee, that portion of the relevant Performance
          Period
          which has been completed at the time of the termination of employment),
          specifically authorizes the payment to such Holder (or such Holder’s Designated
          Beneficiary, guardian, legal representatives, legatees, heirs or distributees)
          of all or portion of the amount which would have been paid to such Holder
          had
          such Holder continued as an employee through the end of the Performance
          Period
          (any such payment to be made in such a time and manner as would have occurred
          if
          the Holder’s employment had not terminated before the expiration of the
          Performance Period, unless otherwise determined by the Committee);
          and

         

        (e)  Except
          as
          may be expressly provided in this Section 13.3 or in the relevant Award
          Agreement, all other Awards held by that Holder shall be
          null
          and void as of the time of the termination of employment; provided, however,
          that the foregoing shall not result in the forfeiture of any cash previously
          paid to, or shares of Stock (other than shares subject to restrictions
          at the
          time of the termination of employment) previously issued or transferred
          to, such
          Holder under the Plan.

         

        (f)  If
          a
          Holder’s employment is terminated due to a physical or mental impairment or
          condition of any degree of severity or permanence, but the Committee does
          not
          inform the Holder in writing that the Holder’s employment is terminated due to
“Disability” for the purposes of this Section, such Holder’s employment is not
          terminated due to “Disability” for the purposes of this Section.

         

        13.4  Termination
          of Employment for Normal Retirement.

        Subject
          to Sections 13.23 and 13.24, if a Holder’s employment is terminated by reason of
          the Holder’s Normal Retirement, then the following provisions shall apply to all
          Awards held by that Holder:

        

        (a)  That
          portion, if any, of all Options or Stock Appreciation Rights held by that
          Holder
          that are not yet exercisable (by acceleration or otherwise) as of the time
          of
          the termination of employment shall be null and void as of the time of
          the
          termination of employment;

         

        (b)  That
          portion, if any, of all Options or Stock Appreciation Rights held by that
          Holder
          that are exercisable (by acceleration or otherwise) but have not been exercised
          as of the time of the termination of employment shall be exercisable by
          that
          Holder until the earlier of:

         

        
          
            
            

          

          
            29

            
              

            

          

          
            
            

          

        

        

         

        	(1)  	
                The
                  termination of the term of the Option or Stock Appreciation Right;
                  or
                  

              

         

        	(2)  	
                three
                  (3) months after the date of the termination of employment; provided,
                  however, that if that Holder dies within such three (3) month period,
                  then
                  such three (3) month period shall automatically be extended to
                  one (1)
                  year after the date of the termination of employment;
                  

              

         

        (and
          any
          portion of any Option or Stock Appreciation Right not exercised prior to
          the
          expiration of the relevant period shall be null and void); 

         

        (c)  That
          portion, if any, of any Restricted Stock Awards held by that Holder with
          respect
          to which the restrictions have not expired or been removed (by acceleration
          or
          otherwise) as of the time of the termination of employment shall continue
          until
          they expire or are removed; provided, however, that any restrictions that
          require forfeiture of the Restricted Stock Award solely based on termination
          of
          employment shall be deemed removed as of the time of the termination of
          employment;

         

        (d)  That
          portion, if any, of any Performance Units held by that Holder that have
          not been
          fully earned (by acceleration or otherwise) at the time of the termination
          of
          employment shall be forfeited as of the time of termination of employment,
          unless the Committee, taking into consideration the performance of such
          Holder
          and the performance of the Company over the relevant Performance Period
          (or, in
          the discretion of the Committee, that portion of the Performance Period
          which
          has been completed at the time of the termination of employment), specifically
          authorizes the payment to such Holder of all or portion of the amount which
          would have been paid to such Holder had such Holder continued as an employee
          through the end of the Performance Period (any such payment to be made
          in such a
          time and manner as would have occurred if the Holder’s employment had not
          terminated before the expiration of the Performance Period, unless otherwise
          determined by the Committee); and

         

        (e)  Except
          as
          may be expressly provided in this Section 13.4 or in the relevant Award
          Agreement, all other Awards held by that Holder shall be null and void
          as of the
          time of the termination of employment; provided, however, that the foregoing
          shall not result in the forfeiture of any cash previously paid to, or any
          shares
          of Stock (other than shares subject to restrictions at the time of the
          termination of employment) previously issued or transferred to, such Holder
          under the Plan.

         

        13.5  Cause
          of Termination; Employment Relationship.

        For
          purposes of this Article XIII, the Committee shall have the authority to
          determine whether any Eligible Individual’s employment with the Company or any
          Subsidiary, as applicable, terminated as a result of death, Disability,
          Normal
          Retirement, a Covered Event, or any other cause or reason. For purposes
          of
          Incentive Options, an employment relationship shall be deemed to exist
          between a
          Holder and the Company or a Subsidiary that is a subsidiary corporation,
          or is

        
          
            
            

          

          
            30

            
              

            

          

          
            
            

          

        

        treated
          as, or as part of, a subsidiary corporation of the Company (within the
          meaning
          of Section 424 of the Code) while the Holder is on military leave, sick
          leave or
          other bona fide leave of absence (such as temporary employment by the
          government) if the period of such leave does not exceed ninety (90) days,
          or, if
          longer, so long as the Holder’s right to re-employment with the Company or
          Subsidiary that is a subsidiary corporation, or is treated as, or as part
          of, a
          subsidiary corporation of the Company (within the meaning of Section 424
          of the
          Code) is guaranteed either by statute or by contract. Where the period
          of leave
          exceeds ninety (90) days and where the Holder’s right to re-employment is not
          guaranteed by statute or by contract, termination of employment shall be
          deemed
          to have occurred on the ninety-first (91st)
          day of
          such leave.

        

        13.6  Exercise
          Following Death or Disability.

        

        (a)  All
          Options or Stock Appreciation Rights or other Awards requiring exercise
          that
          remain subject to exercise following the death of the Holder may be exercised
          by
          the Holder’s beneficiary as designated by the Holder on such forms and in
          accordance with such procedures as may be required or authorized by the
          Committee from time to time (a “Designated Beneficiary”) or, in the absence of
          an authorized designation, by the legatee or legatees of such Options or
          Stock
          Appreciation Rights or other Awards requiring exercise under the Holder’s last
          will, or by such Holder’s legal representatives, heirs or distributees. If an
          Option or Stock Appreciation Right or other Award requiring exercise shall
          be
          exercised by any Person referenced above (other than a Designated Beneficiary),
          notice of exercise shall be accompanied by a certified copy of letters
          testamentary or equivalent proof of the right of such Person to exercise
          such
          Option or Stock Appreciation Right or other Award requiring exercise.

         

        (b)  All
          Options or Stock Appreciation Rights or other Awards requiring exercise
          that
          remain subject to exercise following the Disability of the Holder may be
          exercised by the Holder or by the Holder’s guardian or legal representative that
          meets the requirements of Section 13.7 on such forms and in accordance
          with such
          procedures as may be required or authorized by the Committee from time
          to time
          (which may include proof of the status of such guardian or legal
          representative).

         

        13.7  Transferability
          of Awards.

        No Option,
          Stock Appreciation Right, Restricted Stock Award, Performance Unit, or
          Other
          Equity-Based Right shall be transferable or subject to pledge, encumbrance
          or
          any other disposition in any manner, whether by operation of law or otherwise,
          other than (to the extent such a transfer is not prohibited by Paragraph
          8.2(a)
          or other provisions of this Plan or the relevant Award Agreement) by (i)
          will or
          the laws of descent and distribution or (ii) with respect to all Awards
          other
          than Incentive Awards (and with the approval of the Committee), by a domestic
          relations order. Any Award requiring exercise shall be exercisable during
          a
          Holder’s lifetime only by that Holder or by that Holder’s guardian or legal
          representative; provided, however, that, under applicable state law, the
          guardian or legal representative is a mere custodian of the Holder’s property or
          assets, standing in a fiduciary relationship to the Holder and subject
          to court
          supervision.  Notwithstanding
          anything in this Section 13.7 to the contrary, however, the Committee may
          determine to grant a Nonstatutory Option that is transferable by a Holder
          (but
          not by a Holder’s transferee) to any member of the 

        
          
            
            

          

          
            31

            
              

            

          

          
            
            

          

        

        Holder’s
          immediate family, to a trust established for the exclusive benefit of one
          or
          members of the Holder’s immediate family, to a partnership or other entity of
          which the only partners or interest holders are members of the Holder’s
          immediate family, and to a charitable organization, or to any of the foregoing;
          provided, however, that (i) the Holder receives no consideration for the
          transfer, (ii) the Holder gives the Committee at least fifteen (15) days
          prior
          written notice of any proposed transfer, and (iii) the Holder and
          transferee shall comply with such other requirements as the Committee may
          require from time to time to assure compliance with applicable laws, including
          federal, state and foreign securities laws. Following any transfer permitted
          by
          the preceding sentence, a transferred Nonstatutory Option shall continue
          to be
          subject to the same terms, conditions and limitations that were applicable
          immediately prior to its transfer and shall be exercisable by the transferee
          only to the extent and for the periods that it would have been exercisable
          by
          the Holder. The Committee may amend an outstanding Nonstatutory Option to
          provide that the Nonstatutory Option shall be transferable in the manner
          described in the two immediately preceding sentences. As used in this Section
          13.7, the term “immediate family” shall mean any child, step-child, grandchild,
          parent, step-parent, grandparent, spouse, sibling, mother-in-law, father-in-law,
          son-in-law, daughter-in-law, brother-in-law, or sister-in-law, and shall
          include
          relationships arising from legal adoption. A beneficiary designation
          authorized pursuant to any provision of the Plan or relevant Award Agreement
          shall not be deemed a transfer or encumbrance for purposes of this
          Section 13.7.

        

        13.8  Delivery
          of Certificates of Stock.

        Subject
          to Section 13.9 and upon receipt by the Company of any tax withholding
          as may be
          required, the Company shall promptly deliver one or more certificates
          representing the number of shares of Stock as to which vested Awards payable
          in
          Stock have been properly exercised or are otherwise payable (and, with
          respect
          to Restricted Stock Awards, with respect to which restrictions have expired
          or
          been removed). 
          If a Holder is entitled to receive certificates representing Stock received
          for more than one form of Award under the Plan, separate Stock certificates
          may
          be delivered with respect to each such Award; further, separate Stock
          certificates may be delivered with respect to shares of Stock issued or
          transferred upon exercise of Incentive Options and Nonstatutory
          Options respectively.

        

        13.9  Certain
          Conditions.

        Nothing
          herein or in any Award Agreement shall require the Company to permit any
          exercise of, or issue or transfer any shares with respect to, any Award
          if (i)
          the Holder has failed to satisfy any term, condition or limitation of the
          Plan
          or the relevant Award Agreement or (ii) that issuance or transfer would,
          in the
          opinion of counsel for the Company, constitute a violation of the Securities
          Act, any other applicable law or regulation (including state and foreign
          securities laws and regulations), or any rule of any applicable securities
          exchange or securities association. At the time of any grant or exercise
          of an
          Option or Stock Appreciation Right, at the time of any grant or vesting
          of a
          Stock Award, and at the time of any grant or settlement of any other Award,
          the
          Company may, as a condition precedent to such grant or exercise of that
          Option
          or Stock Appreciation Right, grant or vesting of the Stock Award, or grant
          or
          settlement of such other Award, require
          from the Holder of the Award (or in the event of the Holder’s death or
          Disability, the Holder’s Designated Beneficiary, guardian, legal
          representatives, heirs, legatees, or distributees) such written representations,
          if any, 

        
          
            
            

          

          
            32

            
              

            

          

          
            
            

          

        

        concerning
          the Holder’s or such Persons’ intentions with regard to the retention or
          disposition of the shares of Stock being acquired pursuant to the Award
          and such
          written covenants and agreements, if any, as to the manner of disposal
          of such
          shares as, in the opinion of counsel to the Company, may be necessary or
          appropriate to ensure that any disposition by that Holder or such other
          Person
          will not involve a violation of the Securities Act, any other applicable
          law or
          regulation (including state and foreign securities laws and regulations),
          or any
          rule of any applicable securities exchange or securities association.
          The Company may also endorse such legend or legends upon certificates for
          any shares of Stock issued or transferred pursuant to the Plan, and may
          issue
          such “stop transfer” instructions to its transfer agent in respect of such
          shares, as the Committee determines from time to time to be necessary or
          appropriate to (i) prevent a violation of, or perfect an exemption from,
          the
          registration requirements of the Securities Act or any other applicable
          state or
          foreign securities law, (ii) implement the provisions of the Plan and any
          relevant Award Agreement, or (iii) permit the Company to determine the
          occurrence of any disposition of shares of Stock issued or transferred
          upon
          exercise of an Incentive Option that would disqualify the Incentive Option
          from
          the incentive option tax treatment afforded by Section 422 of the Code.
          

        

        13.10  Certain
          Directors and Officers.

        If
          any of
          the terms, conditions or limitations of the Plan or any Award Agreement
          would
          preclude any award to an Eligible Individual who is subject to
          Section 16(b) of the Exchange Act from qualifying for the exemptions from
          Section 16(b) of the Exchange Act provided by Rule 16(b)-(3), then
          those conflicting terms, conditions or limitations shall be deemed inoperative
          to the extent necessary to allow such qualification (unless the Board of
          Directors has expressly determined that the Plan, or the Committee has
          expressly
          determined that the Award, should not comply with Rule 16(b)-(3)).
          In addition, all Award Agreements for Eligible Individuals who are subject
          to Section 16(b) of the Exchange Act shall be deemed to include such
          additional terms, conditions and limitations as may be required in order
          for the
          related Award to qualify for the exemptions from Section 16(b) of the
          Exchange Act provided by Rule 16(b)-(3) (unless the Committee has expressly
          determined that any such Award should not comply with the requirements
          of
          Rule 16b-3). 

        

        13.11  Securities
          Act Legend.

        The
          Committee may require that certificates for some or all shares of Stock
          issued
          or transferred pursuant to the Plan have a legend similar to the following,
          or
          statements of other applicable restrictions, endorsed thereon:

        

        THE
          SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
          UNDER
          THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THE
          SHARES
          MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, TRANSFERRED, OR OTHERWISE DISPOSED
          OF UNTIL THE HOLDER HEREOF PROVIDES EVIDENCE SATISFACTORY TO THE ISSUER
          (WHICH,
          IN THE DISCRETION OF THE ISSUER, MAY INCLUDE AN OPINION OF COUNSEL SATISFACTORY
          TO THE ISSUER) THAT SUCH OFFER, SALE, PLEDGE, TRANSFER, OR OTHER DISPOSITION
          WILL NOT VIOLATE APPLICABLE FEDERAL OR STATE LAWS.

        

        This
          legend shall not be required for shares of Stock issued or transferred
          pursuant
          to an effective registration statement under the Securities Act.

        

        13.12  Legend
          for Restrictions on Transfer.

        Each
          certificate representing shares of Stock issued or transferred to a Holder
          pursuant to an Award granted under the Plan shall, if such shares are subject
          to
          any transfer restriction, including a right of first refusal, provided
          for under
          the Plan or the relevant Award Agreement, bear a legend that complies with
          applicable law with respect to such transfer restriction, such as:

        

        THE
          SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS
          ON
          TRANSFERABILITY IMPOSED BY THE SOUTHERN UNION COMPANY AMENDED AND RESTATED
          2003
          STOCK OPTION AND INCENTIVE PLAN AS ADOPTED BY SOUTHERN UNION COMPANY (THE
          “COMPANY”) ON ________________, ___ AND AN AWARD AGREEMENT THEREUNDER BETWEEN
          THE COMPANY AND ___________
          DATED
          ______________, _____, AND MAY NOT BE TRANSFERRED, SOLD, OR OTHERWISE DISPOSED
          OF EXCEPT AS THEREIN PROVIDED. THE COMPANY WILL FURNISH A COPY OF SUCH
          INSTRUMENT AND AGREEMENT TO THE RECORD HOLDER OF THIS CERTIFICATE WITHOUT
          CHARGE
          ON REQUEST TO THE COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS OR REGISTERED
          OFFICE.

        

        13.13  Rights
          as a Stockholder; Dividends.

        Except
          as
          may be specifically provided to the contrary by the Committee pursuant
          to
          Paragraph 8.2(e) with respect to a particular Restricted Stock Award, a
          Holder
          shall have no right as a stockholder with respect to any shares of Stock
          covered
          by the Holder’s Award until a certificate representing those shares is issued in
          the Holder’s name and subject to any further restrictions imposed in accordance
          with the Plan. Except as may be expressly determined by the Committee from
          time
          to time with respect to one or more Awards, and subject to such terms,
          conditions and limitations as the Committee may establish with respect
          to the
          same, no adjustment shall be made for dividends (whether ordinary or
          extraordinary, whether in cash or other property or assets) or distributions
          or
          other rights for which the record date is before the date that the certificate
          is issued and any such restrictions have expired or been removed.

        

        13.14  No
          Interest.

        Neither
          the value of any shares of Stock, nor any cash or other property or assets,
          issued, transferred or delivered with respect to any Award under the Plan
          shall
          bear any interest, even if not issued, transferred or delivered when required
          by
          the Plan, except as may be otherwise provided in the applicable Award Agreement
          or as may be required pursuant to rules and procedures established by the
          Committee from time to time for the crediting of
          such interest.

        

        13.15  Furnishing
          of Information.

        Each
          Holder shall furnish to the Company all information requested by the Company
          that the Committee deems necessary or appropriate in 

        
          
            
            

          

          
            33

            
              

            

          

          
            
            

          

        

        order
          to
          allow the Company to administer the Plan and any Awards or to enable it
          to
          comply with any reporting or other requirement imposed upon the Company
          by or
          under any applicable law or regulation.

        

        13.16  No
          Obligation to Exercise.

        No
          grant
          of any Award shall impose any obligation upon the Holder or any other Person
          to
          exercise the same or any part thereof.

        

        13.17  Remedies.

        The
          Company shall be entitled to recover from a Holder the Company’s damages, costs
          and expenses, including reasonable attorneys’ fees, incurred in connection with
          the enforcement of any of the terms, conditions or limitations of the Plan
          or
          any Award Agreement, whether by an action to enforce specific performance,
          for
          damages for breach, or otherwise.

        

        13.18  Certain
          Information Confidential.

        As
          partial consideration for the granting of each Award hereunder, each Holder
          agrees with the Company that such Holder shall keep confidential all information
          and knowledge that such Holder may have relating to the manner, extent
          and
          amount of the Holder’s (or any other Holder’s) participation in the Plan;
          provided, however, that the Holder may disclose such information or knowledge
          to
          the Holder’s spouse or to the Holder’s tax or financial advisors, provided such
          disclosure is made pursuant to similar terms and conditions (but without
          any
          further rights of distribution). The foregoing obligations of
          confidentiality shall not apply to the extent that the Company specifically
          consents in writing to further disclosure or to the extent that the information
          or knowledge becomes generally and readily available to the public without
          breach by the Holder or any other Person of any contractual, fiduciary
          or other
          duty owed to the Company or any of its affiliates. In addition, the foregoing
          obligations of confidentiality shall not prohibit a Holder from disclosing
          such
          information or knowledge to the extent such Holder is required to do so
          by
          government or judicial order, provided that such Holder gives the Company
          prompt
          written notice of such order and a reasonable opportunity to limit such
          disclosure and reasonable assistance in contesting or limiting any such
          disclosure.

        

        13.19  Consideration.

        No
          Option
          or Stock Appreciation Right shall be exercisable, no restriction on any
          Restricted Stock Award shall lapse, and no other Award shall be settled
          in Stock
          with respect to a Holder unless and until the Holder shall have paid cash
          or
          other property to, or performed services for, the Company or any of its
          Subsidiaries that the Committee believes is equal to or greater in value
          than
          the par value of the Stock subject to such Award.

        

        13.20  [Deliberately
          omitted]

        

        13.21  [Deliberately
          omitted] 

        

        13.22  Dispute
          Resolution. 

        

        (a)  Any
          claim, demand, cause of action, dispute or controversy arising out of or
          relating to the Plan, any Award Agreement, any Award, the parties’ performance
          with respect 

         

        
          
            
            

          

          
            34

            
              

            

          

          
            
            

          

        

        to
          any
          thereof, or any alleged breach of any thereof, and any claims, demands,
          causes
          of actions, disputes or controversies that are pursuant to a separate written
          agreement to be dealt with pursuant to the provisions of this Section (each,
          a
“Dispute”), shall be settled by binding arbitration in accordance with the then
          current rules of the American Arbitration Association by three (3) independent
          and impartial arbitrators of whom each party shall appoint one, and those
          appointed arbitrators shall select a third arbitrator, who shall be the
          presiding arbitrator. Judgment upon any award rendered by the arbitrators
          may be
          entered by any court having jurisdiction thereof.

         

        (b)  Either
          party may commence arbitration proceedings by giving notice (the “Arbitration
          Notice”) to the other party demanding that the Dispute be arbitrated, specifying
          in reasonable detail the nature of the Dispute and the amount, if any,
          to be
          submitted to arbitration. The arbitration hearing shall take place in any
          city
          on which the parties agrees, or failing such agreement within ten (10)
          days
          after the date the Arbitration Notice is given, in New York, New York.
          The
          arbitration hearing shall be continuous subject to weekends, holidays or
          other
          days to be mutually agreed.

         

        (c)  The
          arbitrators shall render their award no later than thirty (30) days after
          the
          conclusion of the hearing. The arbitrators shall base their awards on the
          terms
          of the Plan and the relevant Award Agreements and shall follow the law
          and
          judicial precedents which a United States Judicial District Judge sitting
          in New
          York, New York would apply in the event the Dispute was litigated in such
          court.
          The parties expressly agree that this Section shall confer no power or
          authority
          upon the arbitrators to render any judgment or award that is erroneous
          in its
          application of substantive law and expressly agree that no such erroneous
          judgment or award shall be eligible for confirmation. The arbitrators shall
          render their award in writing and, unless both parties agree otherwise,
          shall
          include the findings of fact and conclusions of law upon which their award
          is
          based. Nothing in this Section shall preclude the parties from contractually
          agreeing to maximum and/or minimum levels of damages applicable to any
          such
          award, whether or not such agreement is disclosed to the arbitrators and
          any
          award shall be subject to such agreement. The arbitrators shall apply the
          substantive laws of the State of New York, without regard to principles
          of
          conflicts of laws.

         

        (d)  Unless
          otherwise agreed, and unless otherwise determined by the arbitrators, each
          party
          shall bear its own costs and expenses, including attorneys’ fees, in connection
          with the arbitration, including the fees and expenses of the arbitrator
          appointed by them, except that the expenses and fees of the third arbitrator,
          expenses for hearing facilities, and other expenses of the arbitration
          itself
          shall be shared equally between the parties.

         

        (e)  The
          existence and results of any arbitration under this Section shall be treated
          as
          confidential under Section 13.18 of the Plan.

         

        (f)  Notwithstanding
          the foregoing provisions of this Section, and whether or not an arbitration
          proceeding has been initiated, any party shall be entitled to seek, and
          all
          courts having jurisdiction are authorized to issue and enforce in any lawful
          manner, (i) such temporary restraining orders, preliminary injunctions
          and other
          interim measures of relief as may be necessary to prevent harm to the Company’s,
          any of its Subsidiaries’ or such party’s interest or 

         

        
          
            
            

          

          
            35

            
              

            

          

          
            
            

          

        

        (g)  as
          otherwise may be appropriate pending the conclusion of the arbitration
          proceedings pursuant to this Section, and (ii) such judgments for permanent
          and
          equitable relief as may be necessary to prevent harm to the Company’s, any
          Subsidiaries’ or such party’s interest or as otherwise may be appropriate
          following the issuance of arbitration awards pursuant to this
          Section.

         

        13.23  Awards
          to Non-Employees.
          The
          provisions of Sections 13.2, 13.3 and 13.4 shall not apply to any Awards
          made to
          any Holder that was not an employee of the Company or any of its Subsidiaries
          on
          the date of the making of the Award.

        

        13.24  Compliance
          with Section 409A.
          No
          provision of this Article XIII shall be interpreted to require a payment
          or
          other transfer with respect to an Award at a time or in a manner that would
          violate any requirement of subsection (a) of Section 409A; and the Committee
          may
          defer or otherwise change the terms of payment with respect to any Award,
          as
          otherwise set forth in this Article XIII or any related Award Agreement,
          if and
          to the extent necessary to comply with the requirements of Section 409A
          (if
          applicable). With respect to any Award constituting a deferral of compensation
          to which Section 409A applies and that is made to a “specified employee” of the
          Company or its Subsidiaries as defined in Section 409A(a)(2)(B)(i) of the
          Code,
          no payment resulting from a separation from service of such employee shall
          be
          made with respect to the Award before the date which is 6 months after
          the date
          of separation from service (or, if earlier, the date of death of the
          employee).

         

        XIV.  

         

         

        

         

         

        DURATION
          AND AMENDMENT OF PLAN AND AWARD AGREEMENTS

         

        

        14.1  Duration.

        No
          Awards
          may be granted hereunder after the date that is ten (10) years after the
          Effective Date; provided, however, that Awards granted prior to the expiration
          of such period may extend beyond the expiration of such period, in accordance
          with the terms of the Plan (including all rights of the Company and the
          Committee hereunder) and the relevant Award.

        

        14.2  Amendment,
          etc.

        

        (a)  The
          Board
          of Directors may, at any time and from time to time, insofar as is permitted
          by
          law, suspend or terminate the Plan, in whole or in part, but without the
          consent
          of such Holder no such action shall adversely affect any rights, or increase
          any
          obligations, of any Holder with respect to any Award previously granted
          to such
          Holder hereunder. The Board of Directors may also, at any time and from
          time to
          time, insofar as is permitted by law, amend or modify the Plan in any respect
          whatsoever including (i) for purposes of making the Plan comply with Section
          16(b) of the Exchange Act and the exemptions from that Section, the Code
          (including Section 409A and Section 422 of the Code), or the Employee Retirement
          Income Security Act of 1974, as amended, (ii) for purposes of meeting or
          addressing any changes in any legal requirements applicable to the Company
          or
          the Plan or (iii) for any other purpose permitted by law. Notwithstanding
          the
          foregoing, (i) any amendment or modification of the Plan is subject

        
          
            
            

          

          
            36

            
              

            

          

          
            
            

          

        

        to
          any
          other applicable restrictions on such amendment or modification set forth
          in the
          Plan, (ii) without the consent of such Holder, no such amendment or
          modification shall adversely affect any rights, or increase any obligations,
          of
          any Holder under any Award previously granted to such Holder hereunder
          and
          (iii) without the consent of the holders of a majority of the shares of
          Stock represented and voting on such amendment or modification at a
          shareholders’ meeting duly called and held, no amendment or modification to the
          Plan may be made that would (a) increase the aggregate number of shares of
          Stock that may be issued or transferred under the Plan or increase the
          aggregate
          number of shares of Stock subject to Awards that may be granted to any
          Eligible
          Individual in one calendar year pursuant to Section 5.7 (except for acceleration
          of vesting or other adjustments pursuant to Sections 12.1 or 13.1 of the
          Plan,
          to the extent each is applicable), or (b) modify the requirements regarding
          eligibility for participation in the Plan; provided, however, that such
          amendments or modifications may be made without the consent of stockholders
          of
          the Company if (x) necessary to permit Incentive Options granted under the
          Plan to qualify as incentive stock options within the meaning of Section
          422 of
          the Code, or (y) necessary to comply with changes that occur in law or
          in other
          legal requirements (including Rule 16b-3, Section 162(m), Section 409A, and
          the Employee Retirement Income Security Act of 1974, as amended).

        

        (b)  Subject
          to the terms, conditions and limitations of the Plan, Rule 16b-3, to the
          extent
          it is applicable, and any consent required by the last three sentences
          of this
          Paragraph 14.2(b), the
          Committee may (a) modify, amend, extend or renew outstanding Awards granted
          under the Plan, and (b) accept the surrender of Awards requiring exercise
          that
          may be outstanding under the Plan (to the extent not previously exercised)
          and
          authorize the granting of new Awards in substitution for such outstanding
          Awards
          (or portion thereof) so surrendered. Without the consent of the Holder,
          the
          Committee may not modify or amend the terms of an Incentive Option at any
          time
          to include provisions that have the effect of changing the Incentive Option
          to a
          Nonstatutory Option; provided, however, that the consent of the Holder
          is not
          required to the extent that the acceleration of the vesting of an Incentive
          Option (whether under Section 12.1 or otherwise) causes the Incentive Option
          to
          be treated as a Nonstatutory Option, for federal tax purposes, to the extent
          that it exceeds the $100,000 limitation described in Section 6.10. Without
          the
          consent of the Holder and of the holders of a majority of the shares of
          Stock
          represented and voting on such modification or amendment at a shareholders’
meeting duly called and held, the Committee may not modify or amend any
          outstanding Option so as to specify a higher or lower exercise price or
          accept
          the surrender of outstanding Incentive Options and authorize the granting
          of new
          Options in substitution therefor specifying a higher or lower exercise
          price, or
          take any other action to “reprice” any option if the effect of such repricing
          would be to increase or decrease the exercise price applicable to such
          Option.
          In addition, no modification or amendment of an Award shall, without the
          consent of the Holder, adversely affect any rights of the Holder or increase
          the
          obligations of the Holder under such Award except, with respect to Incentive
          Options, as may be necessary to satisfy the requirements of Section 422
          of the
          Code.

        

        
          
            
            

          

          
            37

            
              

            

          

          
            
            

          

        

         

        XV.  

         

         

        

         

         

        GENERAL

         

        15.1  Application
          of Funds.

        The
          proceeds received by the Company from the sale of shares of Stock pursuant
          to
          Awards shall be used for general corporate purposes or any other purpose
          permitted by law.

        

        15.2  Right
          of the Company and Subsidiaries to Terminate Employment.

        Nothing
          contained in the Plan, or in any Award Agreement, shall confer upon any
          Holder
          any right to continue in the employ of the Company or any Subsidiary, or
          interfere in any way with the rights of the Company or any Subsidiary to
          terminate any such employment relationship at any time.

        

        15.3  No
          Liability for Good Faith Determinations.

        Neither
          the Board of Directors nor the Committee nor any member of either shall
          be
          liable for any act, omission, or determination taken or made in good faith
          with
          respect to the Plan or any Award granted under the Plan, and members of
          the
          Board of Directors and the Committee shall be entitled to indemnification
          and
          reimbursement by the Company in respect of any claim, loss, damage, or
          expense
          (including attorneys’ fees, the costs of settling any suit, provided such
          settlement is approved by independent legal counsel selected by the Company,
          and
          amounts paid in satisfaction of a judgment, except a judgment based on
          a finding
          of bad faith) arising therefrom to the full extent permitted by law and
          under
          any directors and officers liability or similar insurance coverage that
          may from
          time to time be in effect. This right to indemnification shall be in
          addition to, and not a limitation on, any other indemnification rights
          any
          member of the Board of Directors or the Committee may have.

        

        15.4  Other
          Benefits.

        Participation
          in the Plan shall not preclude any Holder from eligibility in (or entitle
          any
          Holder to participate in) any other stock or stock option plan of the Company
          or
          any Subsidiary or any old age benefit, insurance, pension, profit sharing,
          retirement, bonus, or other extra compensation plan that the Company or
          any
          Subsidiary has adopted or may, at any time, adopt for the benefit of its
          employees or other Persons. Neither the adoption of the Plan by the Board
          of
          Directors nor the submission of the Plan to the stockholders of the Company
          for
          approval shall be construed as creating any limitations on the power of
          the
          Board of Directors to adopt such other incentive arrangements as it may
          deem
          desirable, including, without limitation, the granting of stock options
          and the
          awarding of securities and cash otherwise than under the Plan, and such
          arrangements may be either generally applicable or applicable only in
          specific cases.

        

        15.5  Exclusion
          From Pension and Profit-Sharing Compensation.

        By
          acceptance of an Award (whether in Stock or cash), as applicable, each
          Holder
          shall be deemed to have agreed that the Award is special incentive compensation
          that will not be taken into account in any manner as salary, compensation
          or
          bonus in determining the amount of any payment under any pension, retirement
          or
          other employee benefit plan of the Company or any Subsidiary except as
          

        
          
            
            

          

          
            38

            
              

            

          

          
            
            

          

        

        may
          otherwise be specifically provided in such plan. In addition, each
          beneficiary of a deceased Holder shall be deemed to have agreed that no
          Award to
          such Holder shall affect the amount of any life insurance coverage, if
          any,
          provided by the Company or a Subsidiary on the life of the Holder that
          is
          payable to the beneficiary under any life insurance plan covering employees
          of
          the Company or any Subsidiary.

        

        15.6  Execution
          of Receipts and Releases.

        Any
          payment of cash or other property or assets or any issuance or transfer
          of
          shares of Stock to the Holder, or to the Holder’s Designated Beneficiary,
          guardian, legal representatives, heirs, legatees, distributees or permitted
          assigns, in accordance with the provisions hereof, shall, to the extent
          thereof,
          be in full satisfaction of all claims of such Persons hereunder. The Committee
          may require any Holder, Designated Beneficiary, guardian, legal representative,
          heir, legatee, distributee or assignee, as a condition precedent to such
          payment, to execute a release and receipt therefor in such form as the
          Committee
          shall determine.

        

        15.7  Unfunded
          Plan.

        Insofar
          as it provides for Awards of cash, Stock or other property or assets, the
          Plan
          shall be unfunded. Although bookkeeping accounts may be established with
          respect
          to Holders who are entitled to cash, Stock, other property or assets or
          rights
          thereto under the Plan, any such accounts shall be used merely as a bookkeeping
          convenience. The Company shall not be required to segregate any assets
          that may
          at any time be represented by cash, Stock, other property or assets or
          rights
          thereto, nor shall the Plan be construed as providing for such segregation,
          nor
          shall the Company nor the Board of Directors nor the Committee be deemed
          to be a
          trustee of any cash, Stock, other property or assets or rights thereto
          to be
          granted under the Plan. Any liability of the Company to any Holder with
          respect
          to a grant of cash, Stock, other property or assets or rights thereto under
          the
          Plan shall be based solely upon any contractual obligations that may be
          created
          by the Plan and any Award Agreement; no such obligation of the Company
          shall be
          deemed to be secured by any pledge or other encumbrance on any property
          or
          assets of the Company. Neither the Company nor the Board of Directors nor
          the
          Committee shall be required to give any security or bond for the performance
          of
          any obligation that may be created by the Plan.

        

        15.8  No
          Guarantee of Interests.

        Neither the
          Company, the Board of Directors nor the Committee guarantees the Stock
          of the
          Company from loss or depreciation.

        

        15.9  Payment
          of Expenses.

        Subject
          to Section 13.17, all expenses incident to the administration, termination
          or
          protection of the Plan, including legal and accounting fees and any issue
          taxes
          with respect to the issuance of shares of Stock pursuant to the Plan, shall
          be
          paid by the Company or its Subsidiaries.

        

        15.10  Company
          Records.

        The
          records of the Company or its Subsidiaries regarding any Holder’s period of
          employment, termination of employment and the reason therefor, leaves of
          absence, re-employment, and other matters shall be conclusive for all purposes
          hereunder, unless 

        
          
            
            

          

          
            39

            
              

            

          

          
            
            

          

        

        determined
          by the Committee to be incorrect.

        

        15.11  No
          Liability of Company.

        The Company
          assumes no obligation or responsibility to the Holder or the Holder’s Designated
          Beneficiary, guardian, legal representatives, heirs, legatees, distributees
          or
          assignees for any act of, or failure to act on the part of,
          the Committee.

        

        15.12  Company
          Action.

        Any
          action required of the Company shall be by resolution of its Board of Directors
          or by a duly authorized officer of the Company or by another Person authorized
          to act by resolution of the Board of Directors.

        

        15.13  Severability.

        Whenever
          possible, each provision of the Plan and each Award Agreement shall be
          interpreted in such a manner as to be effective and valid under applicable
          law,
          but if any provision of the Plan or any Award Agreement, or the application
          thereof to any Person or under any circumstances, is invalid or unenforceable
          to
          any extent under applicable law, then such provision shall be deemed severed
          from the Plan or such Award Agreement with respect to such Person or
          circumstance, without invalidating the remainder of the Plan or such Award
          Agreement or the application of such provision to other Persons or
          circumstances, and a new provision shall be deemed substituted in lieu
          of the
          provision so severed which new provision shall, to the extent possible,
          accomplish the intent of the parties as evidenced by the provision so severed.
          

        

        15.14  Notices.

        Except
          as
          may be expressly provided in the Plan or the relevant Award Agreement,
          whenever
          any notice is required or permitted to be given under the Plan or such
          Award
          Agreement, such notice must be in writing and delivered (including delivery
          by
          private courier or facsimile transmittal) or sent by mail (which if to
          the
          Company must be certified or registered, return receipt requested) postage
          and
          charges prepaid, addressed to the Person for whom the communication is
          intended
          (which for the Company shall be the address of the Company’s chief executive
          office from
          time
          to time, or such other address as may be established from time to time
          by the
          Committee, and which for any Holder shall be the address for such Holder
          set
          forth in the relevant Award Agreement or such other address as shall have
          been
          furnished by notice by such Holder to the Company). Any such notice shall
          be
          deemed to be given on the date received or (if mailed in the manner set
          forth
          herein) three (3) Business Days after the date of mailing. Any person entitled
          to notice hereunder may waive such notice. 

        

        15.15  No
          Waiver.

        No
          waiver
          of any provision of the Plan or any Award Agreement shall be effective
          unless
          made in writing and signed by the party to be charged with the waiver.
          Failure
          of any party at any time to require any other party’s performance of any
          obligation under the Plan or Award Agreement shall not affect the right
          to
          require performance of that obligation. Any waiver by any party of any
          breach of any provision of the Plan or any Award Agreement 

        
          
            
            

          

          
            40

            
              

            

          

          
            
            

          

        

        shall
          not
          be construed as a waiver of any continuing or succeeding breach of such
          provision, or as a waiver or modification of the provision itself.

        

        15.16  Successors.

        Subject
          to the restrictions contained herein, the Plan shall be binding upon the
          Holder,
          the Holder’s Designated Beneficiaries, guardian, legal representatives, heirs,
          legatees, distributees and permitted assigns, and upon the Company, its
          successors and assigns.

        

        15.17  Further
          Assurances.

        Each
          Holder shall execute and deliver such documents, and take or cause to be
          taken
          such other actions, as may be reasonably requested by the Committee in
          order to
          implement the terms of the Plan and any Award Agreement with respect to
          that
          Holder.

        

        15.18  Governing
          Law.

        EXCEPT
          AS
          MAY BE OTHERWISE PROVIDED IN A PARTICULAR AWARD AGREEMENT, TO THE EXTENT
          NOT
          GOVERNED BY FEDERAL LAW, THIS PLAN AND EACH AWARD AGREEMENT SHALL BE GOVERNED
          BY
          AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
          REGARD TO PRINCIPLES OF CONFLICTS OF LAW; PROVIDED, HOWEVER, THAT ISSUES
          REGARDING THE INTERNAL AFFAIRS OF THE COMPANY SHALL BE GOVERNED BY THE
          LAW OF
          THE COMPANY’S JURISDICTION OF ORGANIZATION.

        

        15.19  Jurisdiction
          and Venue.

        EXCEPT
          AS
          MAY BE OTHERWISE PROVIDED IN A PARTICULAR AWARD AGREEMENT AND SUBJECT TO
          SECTION 13.22, EACH HOLDER HEREBY SUBMITS TO THE JURISDICTION OF ALL
          FEDERAL AND STATE COURTS OF NEW YORK AND HEREBY AGREES THAT ANY SUCH COURT
          SHALL
          BE A PROPER FORUM FOR THE DETERMINATION OF ANY DISPUTE ARISING UNDER THE
          PLAN OR
          ANY AWARD AGREEMENT WITH RESPECT TO SUCH HOLDER.

        

        15.20  Interpretation.

        When
          a
          reference is made in the Plan or any Award Agreement to Schedules, Exhibits
          or
          Addenda, such reference shall be to a schedule, exhibit or addendum to
          this Plan
          or the relevant Award Agreement unless otherwise indicated. Each instance
          in the Plan or any Award Agreement of the words “include,” “includes,” and
“including” shall be deemed to be followed by the words “without limitation.” As
          used in the Plan or any Award Agreement, the term “days” means calendar days,
          not business days, unless otherwise specified. Unless otherwise specified,
          the words “herein,” “hereof,” and “hereunder” and other words of similar import
          refer to the Plan or relevant Award Agreement as a whole and not to any
          particular article, section, paragraph, subparagraph, schedule, exhibit,
          addendum or other subdivision. Similarly, unless otherwise specified, the
          words
“therein,” “thereof” and “thereunder” and other words of similar import refer to
          a particular agreement or other instrument as a whole and not to any particular
          article, section, paragraph, subparagraph, schedule, exhibit, addendum
          or other
          subdivision. Unless otherwise specified, any reference to a statute includes
          and
          refers to the statute itself, as well as to any rules and regulations made
          and

        
          
            
            

          

          
            41

            
              

            

          

          
            
            

          

        

        duly
          promulgated pursuant thereto, and all amendments made thereto and in force
          currently from time to time and any statutes, rules or regulations thereafter
          duly made, enacted and/or promulgated, as may be appropriate, and/or any
          other
          governmental actions thereafter duly taken from time to time having the
          effect
          of supplementing or superseding such statute, rules, and/or regulations.
          The language in all parts of the Plan and each Award Agreement shall be
          in all
          cases construed simply, fairly, equitably, and reasonably, according to
          its
          plain meaning and not strictly for or against one or more of the parties.
          Any
          table of contents or headings contained in the Plan or any Award Agreement
          are
          for reference purposes only and shall not be construed to affect the meaning
          or
          interpretation of the Plan or any Award Agreement. When required by the
          context, (i) whenever the singular number is used in the Plan or any Award
          Agreement, the same shall include the plural, and the plural shall include
          the
          singular; and (ii) the masculine gender shall include the feminine and
          neuter genders and vice versa.

        

        15.21  No
          Representations.

        NEITHER
          THE COMPANY, ANY OF ITS SUBSIDIARIES OR OTHER AFFILIATES, THE BOARD OF
          DIRECTORS
          OR THE COMMITTEE, OR ANY MEMBER OF EITHER THEREOF MAKES ANY REPRESENTATIONS
          OR
          WARRANTIES WHATSOEVER REGARDING THE LEGAL, TAX OR ACCOUNTING CONSEQUENCES
          OF ANY
          ASPECT OF THE PLAN OR ANY AWARDS, INCLUDING ANY REPRESENTATION OR WARRANTY
          THAT
          ANY OPTION SHALL BE TREATED AS AN INCENTIVE STOCK OPTION UNDER THE CODE.
          BY
          ACCEPTING ANY AWARD, EACH HOLDER ACKNOWLEDGES THAT SUCH HOLDER HAS CONSULTED
          WITH SUCH ADVISORS AS THE HOLDER HAS DEEMED APPROPRIATE WITH RESPECT TO
          ANY OF
          SUCH MATTERS.

        [Remainder
          of page intentionally left blank]

         

        

        
          
            
            

          

          
            42

            
              

            

          

          
            
            

          

        

        

        Adopted
          as of the Effective Date.

        

        SOUTHERN
          UNION COMPANY,

        a
          Delaware corporation

        

        

        By: ______________________________

        ______________________________

        (Print
          Name)

        ______________________________

        (Print
          Title)

        

        

        

        

        

        

        

        

        

        
          
            
            

          

          
            43Data Processing Agreement - Fidelity

    
      
        

      

    

    Form
      10K

     

    FIDELITYINTEGRATED
      FINANCIAL SOLUTIONS

    A
      DIVISION OF FIDELITY INFORMATION SERVICES

    

     

    AGREEMENT
      TO PROVIDE SOFTWARE AND SERVICES

     

    This
      Agreement to Provide Software and Services, which consists of this signature
      page, the General Terms and Conditions, Exhibits and Attachments attached hereto
      (collectively referred to as the "Agreement") is executed as of this 4 day
      of
      January 2005 between Aurum Technology Inc., doing business as Fidelity
      Integrated Financial Solutions, with offices located at 601 South Lake Destiny
      Drive, Suite 300, Maitland, Florida 32751 ("Fidelity"), and Commercial Bank
      of
      Florida, with offices at 1550 SW 57th
      Avenue,
      Miami, Florida (hereinafter, "Client").

    

    The
      documents checked below together constitute the entire Agreement and set forth
      the mutual agreement of the parties as to the Software and Services to be
      provided by Fidelity as of the Effective Date.

     

    X
      - Signature Page

    X
      - General
      Terms and Conditions

    X
      - Attachment1-
      Core Data Processing Schedule 

    X
      - Exhibit
      1
      - Insurance Coverage

    __ 
Exhibit
      --

    __ 
Exhibit
      --

     

    This
      Agreement provides for the provision of certain Fidelity data processing,
      support, recovery and/or consulting services (the "Services"), the licensing
      of
      certain Fidelity proprietary software (the "Software"), and the sale of
      equipment ("Equipment"), by Fidelity to Client pursuant to this Agreement,
      as
      such Services Software and Equipment may be described in the various exhibits
      and attachments to this Agreement.

     

    THIS
      AGREEMENT IS EFFECTIVE AS OF THE EFFECTIVE DATE AND HAS BEEN EXECUTED BY THE
      DULY AUTHORIZED OFFICERS OF THE PARTIES HERETO.

     

    
      	
              AURUM
                TECHNOLOGY INC. 

              d/b/a
                Fidelity Integrated Financial Solutions

            	
               

            	
               

            	
               COMMERCIAL
                BANK OF FLORIDA

            
	
               

            	
               

            	
               

            	
               

            
	
              /s/ Gary
                Norcross

            	
               

            	
               

            	
              /s/ Dennis
                Longo

            
	
              Date: 
                1/20/05

            	
               

            	
               

            	
              Date: 
                JAN 04,2005

            
	
              Title: 
                President. Integrated Financial Solutions

            	
               

            	
               

            	
              Title: 
                SR. VP

            

    

     

    

    
      
        
        

      

      
        1

        
        

      

      
        
        

      

    

    

    

    GENERAL
      TERMS AND CONDITIONS

     

    I.     DEFINED
      TERMS.  Except
      as
      may be modified in an Exhibit or Attachment to this Agreement, the following
      defined terms shill have the meanings ascribed to them below.

     

         1.1
      "
      Adjustment Date" shall mean the month in which the anniversary of the Effective
      Date for Services falls.

     

         1.2
      .
“Agreement" shall mean the Signature Page, these General Terms and Conditions,
      and all Exhibits and Attachments listed on the Signature Page

     

         1.3
      "Attachment" shall mean the Schedule of Services and Fees, which are attached
      to
      this Agreement.

     

         1.4
      “Client Proprietary Information“shall mean all of Client's data, items, and
      output and any Client- Provided Software, and any modifications to the
      foregoing.

     

         1.5
      “Client Provided Software“shall mean the computer programs used by and provided
      by Client in conjunction with the Services, including any third-party computer
      programs used by and provided by Client.

     

         1.6
      “Confidential Information" shall mean all information of a non-public nature.
      "Confidential Information" shall also include all “non-public personal
      information" as defined in Title V of the GLB Act, as the same may be amended
      from time to time, that Fidelity receives from or at the direction of Client
      and
      that concerns any of Client's "customers" and/or "consumers" (as defined in
      the
      GLB Act).

     

         1.7
      "CPI-U"
      shall mean Consumer Price Index for All Urban Consumers-Other Goods and
      Services.

     

         1.8
      "Early Termination Notice" shall have the meaning set forth in Section 2.5
      or
      2.6, as applicable.

     

         1.9 "Early
      Termination Date" shall have the meaning set forth in Section 2.5 or 2.6, as
      applicable.

     

         1.10
      “Early Termination Fee" shall mean the fee payable to Fidelity for an early
      termination of the Agreement pursuant to Section 2.5 or 2.6.

     

         1.11
      "Effective Date" shall mean the __________________, 200__.

     

         1.12
      "Equipment" shall mean any hardware sold or leased to Client pursuant to this
      Agreement.

     

         1.13
      "Escalation Procedures" shall mean the procedures set forth in Section 18.3
      of
      this Agreement

     

         1.14
      "Expiration Date" shall mean the last day of the Initial Term. or of the
      then-current Renewal Term, as applicable.

     

         1.15
      “Fidelity Proprietary Information" shall mean specifications, manuals, tapes,
      programs, user documentation, and the Software (which includes Licensed
      Software) other materials belonging to Fidelity and any modifications to the
      foregoing.

     

         1.16
      “GLB Act" shall mean the Gramrn-Leach-Bliley Act (15 U.S.C. Section 6801, et
      seq.) and the implementing regulations thereunder.

     

         1.17
      "Licensed Software" shall mean the Fidelity Software that is designated as
      being
      licensed by Client pursuant to this Agreement in the Attachment(s).

    

     

    

    
      
        
        

      

      
        2

        
        

      

      
        
        

      

    

    

     

         1.18
      "Merger Event" shall mean, for the purposes of Section 2.7 only, the
      consummation of: (i) a merger, consolidation or other business combination
      of
      Client (or its principal banking subsidiary or subsidiaries) with any other
      entity, when such entity has assets in equal to or greater than Client; or
      (ii)
      a sale or disposition by Client (or its principal banking subsidiary or
      subsidiaries) or all or substantially all of its common equity or its
      assets.

     

         1.19
      "Press Release" shall mean any news release, public announcement, news media
      response or other form of release of information concerning this Agreement
      or
      the transactions contemplated hereby that is intended to provide such
      information to the news media or the public.

     

         1.20
      "Services" shall mean the services that are described in the Attachments and/or
      Exhibits to this Agreement, including, not limited to, data processing, support,
      recovery and/or consulting services.

     

         1.21
      "Software" shall mean the proprietary computer programs of Fidelity listed
      in
      the Attachments and are used by Fidelity to provide the Services.

     

         1.22
      "Term" shall have the meaning set forth in Section 2.1.

     

         1.23
      "Termination Costs" shall mean the costs set forth in Section 2.8.

     

         1.24
      "Termination Date" shall have the meaning set forth in Section 2.3.

     

    2.     TERM,
      TERMINATION ANDRENEWAL.

     

         2.1
      Term.
      The
      term
      of this Agreement shall commence on the Effective Date hereof and shall continue
      for five (5) years after the Effective Date (the "Initial Term"), unless it
      is
      terminated pursuant to Sections 2.2, 2.6 or 2.7 below. The Agreement shall
      be
      renewed automatically for successive five (5) year periods (each a "Renewal
      Term") unless either party notifies the other in writing of its intent not
      to
      renew the Agreement at least one hundred eighty (180) days' prior to the
      then-current Expiration Date. The Initial Term as may be extended by the Renewal
      Term shall be collectively referred to as the "Term".

     

         2.2
      Right
      to Terminate.
      In
      addition to any other right which either party may have in law or equity
      (subject to Section 6) and the right to terminate at the end of the Initial
      Term
      as set forth in Section 2.1, either Fidelity or Client may elect to terminate
      this Agreement if: (a) the defaulting party fails to cure any default hereunder
      within ninety (90) days after receipt of written notice from the other party,
      specifying the nature and extent of any such material default (except a default
      caused by nonpayment by Client which is addressed in Section 3.1 below) and
      except for defaults under this Section 2.2 (b), (c), (d) and (e) below for
      which
      no notice and cure period is provided); (b) the other party becomes insolvent,
      commits an act of bankruptcy, or makes a general assignment for the benefit
      of
      its creditors; ( c) any proceeding is commenced by or against the other party
      under any bankruptcy or insolvency laws or relating to the relief of debtors;
      (
      d) an application is filed for the appointment of a receiver or conservator
      of
      the properties of the other party; or ( e) any procedure is initiated for the
      voluntary dissolution, liquidation or suspension of the business of the other
      party.

     

         2.3
      Method
      or Termination. Exercise
      of the right to terminate under Section 2.2 must be accomplished by written
      notice (in accordance with Section 19.2) to the defaulting party, specifying
      the
      basis for such termination, and fixing a date following the date of such notice
      for complete termination of Services hereunder (the "Termination Date"). If
      either party is terminating under clause (a) of Section 2.2 above in which
      the
      other party has failed to cure default, such written notice will allow ninety
      (90) days following date of such notice for complete termination of Services.
      If
      either party is terminating under clause (b), (c), (d), or (e) of Section 2.2
      above, no notice of default and cure period is required and such written notice
      will allow thirty (30) days following the date of such notice for complete
      termination of Services.

     

         2.4
      No
      Waiver of Default.
      The
      failure of either party to exercise any right of termination hereunder shall
      not
      constitute a waiver of the rights granted herein with respect to any subsequent
      default.

     

    

     

    
      
        
        

      

      
        3

        
        

      

      
        
        

      

    

    

     

         2.5
      Termination
      for Convenience.
      Client
      shall have the right to terminate this Agreement for convenience and without
      cause at any time after the expiration of thirty (30) months after the Effective
      Date, provided that Client is not in breach of any of its obligations under
      this
      Agreement, upon satisfaction of all of the following conditions:

     

             (a)
      Client
      notifies Fidelity in writing ("Early Termination Notice") of its intention
      to
      terminate the Agreement at least six (6) months prior to the proposed early
      termination date ("Early Termination Date").

     

     

             (b)
      Client pays
      to Fidelity, concurrently with such Early Termination Notice, an Early
      Termination Fee in an amount equal to fifty percent (50%) of the average monthly
      amount of the prior six (6) months of the fees set forth in the applicable
      Attachment(s), multiplied by the number of months between the Early Termination
      Date and the Expiration Date, in addition to the Termination Costs and the
      Fidelity's then current rates for requested deconversion services.

     

     

         2.6
      Termination
      for Acquisition.
      This
      Agreement may be terminated by Client upon the occurrence of a Merger Event,
      provided that Client shall give Fidelity notice within one hundred eighty (180)
      days after the occurrence of the Merger Event, which provides an at least one
      hundred eighty (180) days' notice ("Early Termination Notice") setting out
      the
      date of termination ("Early Termination Date") and accompanying such Early
      Termination Notice, an Early Termination Fee which shall be computed as
      follows:

     

     

             (a)
      The Early
      Termination Fee shall be equal to twenty-five percent (25%) of the average
      monthly amount of the prior twelve (12) months (excluding any one time rebates
      or credits) of the fees set forth in the applicable Attachment(s), multiplied
      by
      the number of months between the Early Termination Date and the Expiration
      Date,
      in addition to the Termination Costs and Fidelity's then current rates for
      requested deconversion services.

     

             (b)
      If the
      Merger Event does not actually occur or is to be postponed indefinitely, for
      any
      reason whatsoever, then Client may, prior to its Early Termination Date, rescind
      the Early Termination Notice. If Client shall rescind the Early Termination
      Notice, Fidelity shall extend to Client a credit for the Early Termination
      Fee
      actually paid by Client. Such credit shall be applied to the fees outlined
      in
      the applicable Attachment(s), as such fees become due hereunder. Such credit
      shall be reduced by the amount of out-of-pocket expenditures actually incurred
      by Fidelity, in preparation for the termination of this Agreement after the
      date
      of delivery of the Early Termination Notice.

     

         2.7
      Extended
      Services. Any
      services that are provided to Client after the expiration or termination of
      this
      Agreement, for which a written agreement has not been entered into by the
      parties, shall be provided on a month- to-month basis, and are subject to the
      terms and conditions of this Agreement, except that the fees for such services
      shall be at Fidelity's then-current fees.

     

         2.8
      Termination
      Costs.
      In
      addition to the fees mentioned above in this Section 2, Client shall reimburse
      Fidelity for the following Termination Costs: reasonable costs actually incurred
      by Fidelity in terminating this Agreement prior to the Expiration Date,
      including without limitation expenses incurred, on behalf of Client, in
      canceling leases, licenses, subcontractor or similar agreements and costs
      associated with termination and/or relocation of dedicated resources. Fidelity
      shall use commercially reasonable efforts to minimize the Termination
      Costs.

     

         2.9
      Date
      Fees are Payable.
      AIl
      known fees described in this Section 2 are due and payable prior to the release
      of any final de-conversion tapes to Client The described fees in Section 2
      are
      exclusive of any fees for requested deconversion services. Notwithstanding
      delivery of an Early Termination Notice by Client or payment of an Early
      Termination Fee by Client, Client shall continue to make an payments due and
      payable to Fidelity pursuant to this Agreement up to and including the Early
      Termination Date.

     

    

    
      
        
        

      

      
        4

        
        

      

      
        
        

      

    

    

    3.     FEES
      ANDEXPENSES.

     

         3.1
      Fees
      to Fidelity.
      The fees
      payable pursuant to this Agreement are set forth in the Attachment(s). Fidelity
      shall invoice Client, and Client shall pay all amounts due under this Agreement
      within 30 days of Client's receipt of such invoice. In the event that the due
      date of any payment is not a day upon which banks are open in the United States,
      then the due date of the payment shall be the immediately following date upon
      which banks are open in the United States. Any amount not received within 30
      days after the payment due date by Fidelity shall be subject to interest on
      the
      balance overdue at a rate equal to the lesser of: (i) the prime rate plus two
      percent (2%) per annum, as published in the Wall Street Journal on the first
      Monday ( or next bank business day) following the due date; or (ii) the highest
      rate permitted by law, in each case for the number of days from payment due
      date
      up to and including the date payment is actually made by Client ( calculated
      on
      the basis of the actual days in the applicable calendar year).

     

         3.2
      Disputed
      Charges.
      Should
      Client dispute in good faith all or a portion of the amount due on any invoice
      or require any adjustment to an invoiced amount, Client shall notify Fidelity
      in
      writing prior to the due date of that invoice, of the nature and basis of the
      dispute and/or adjustment as soon as possible using the dispute resolution
      procedures set forth in Section 18 of this Agreement. Each party shall use
      its
      reasonable efforts to resolve the dispute prior to the payment due date. If
      the
      parties are unable to resolve the dispute prior to the payment due date, Client
      may withhold the lesser of 10% of the applicable invoice and the disputed
      amount. If it is ultimately determined that Client should not have paid such
      amount to Fidelity, Fidelity shall credit this amount, plus interest in
      accordance with Section 18.1 of this Agreement on Client's next
      invoice.

     

         3.3
      Adjustment
      of Fees.
      The
      recurring fees, as outlined in the Attachment(s) (non-pass through and
      non-one-time fees), payable each year shall be adjusted annually on the
      Adjustment Date, as follows. Fees shall be increased, but not decreased, by
      the
      percentage increase in the CPI-U, as published by the U.S. Department of Labor,
      Bureau of Labor Statistics for the month of December preceding the Adjustment
      Date over the CPI-U for the month of December in the immediately preceding
      year.
      If additional Services are added to the Agreement, the fees shall be adjusted
      on
      such Adjustment Date in accordance with this Section. In the event the CPI-U
      is
      unavailable in time to allow the adjustment to be made on the Adjustment Date,
      Client shall continue to pay the then current fees for the Services until the
      CPI-U is made public, at which time the adjustment shall be calculated
      retroactively to the Adjustment Date, and Client shall immediately pay to
      Fidelity any difference between the fees actually paid and adjusted fees. The
      adjustments shall be compounded and cumulative. In the event the CPI-U is
      discontinued or revised during the Term or any extensions thereof, Fidelity
      shall select another governmental index or computation as a substitute CPI-U
      in
      order to obtain substantially the same result as if the CPI-U had not been
      discontinued or revised.

     

         3.4
      Payment
      of One-Time Fees.
      Except as may be specifically stated in an Attachment or otherwise mutually
      agreed by the parties, the one-time fees shall be due in the following manner:
      fifty percent (50%) due upon Client's signing of this Agreement, and the
      remaining fifty percent (50%) due on the Effective Date.

     

         3.5
      Payment
      of Recurring Fees.
      Fidelity
      will commence invoicing Client for the recurring fees set forth in the
      Attachment(s) to this Agreement on the Effective Date.

     

         3.6
      Travel
      and Expenses.
      Client
      shall reimburse Fidelity for all reasonable travel and expenses related to
      the
      performance of any conversion or special project requested by the Client. This
      would include the initial conversion to the Fidelity core banking system as
      well
      as any other special project that would result in extra travel and expenses
      being incurred.

     

         3.7
      Mergers
      and Acquisitions. At
      Client's request and subject to Section 19.11, Fidelity will provide additional
      licenses, process additional data and perform additional services resulting
      from
      any merger, acquisition, affiliation or restructuring (regardless of form)
      involving Client for fees to be mutually agreed upon prior to the time Fidelity
      begins the additional processing.

     

     

    4.     TAXES.
      All
      charges and fees to be paid by Client under this Agreement are exclusive of
      any
      applicable withholding, sales, use, value added, excise, services or other
      United States or foreign tax which may be assessed on the provision of the
      Services. In the event that a withholding, sales, use, value added, excise,
      value added, services

     

    

    
      
        
        

      

      
        5

        
        

      

      
        
        

      

    

    

    or
      other
      United States or foreign tax is assessed on the provision of any of the Services
      provided to Client under this Agreement, Client \\ill pay directly, reimburse
      or
      indemnify Fidelity for such taxes, as well as any applicable interest, penalties
      and other Fidelity fees and expenses. The parties will cooperate with each
      other
      in determining the extent to which any tax is due and owing under the
      circumstances, and shall provide and make available to each other any resale
      certificates, information regarding out-of-state or country use of materials,
      services or sale, and other exemption certificates or information reasonably
      requested by either party. Client shall not be liable for payment of any taxes
      based on Fidelity's net income.

     

    5.      FORCE
      MAJEURE.

     

         5.1
      Force
      Majeure.
      Neither
      party shall be liable to the other party for any loss, expense, error or delay,
      including but not limited to delays in processing of data or delivery of output
      or items to Client, or any inability to perform its obligations under this
      Agreement resulting from any cause beyond its reasonable control and without
      its
      fault or negligence, including, but not limited to, acts of God, acts of civil
      or military authority. government regulations, government agencies, delay or
      failure to receive any required government approvals. embargoes. epidemics,
      war,
      terrorist acts, riots. insurrections, fires, explosions, earthquakes, nuclear
      accidents. floods, power blackouts affecting facilities unusually severe weather
      conditions. inability to secure products or services of other persons or
      transportation facilities. or acts or omissions of transportation carriers,
      or
      delays associated with visa, immigration and/or custom problems or omissions
      of
      third parties (including but not limited to acts or omissions of any third
      party
      service provider or equipment vendor, messenger service or telephone carrier).
      Upon the occurrence of a condition described in this Section 5.1, Fidelity
      shall
      give written notice to Client describing the affected area of performance.
      and
      the parties shall promptly confer, in good faith, to agree upon equitable,
      reasonable action to minimize the impact, on both parties, of such condition,
      including, without limitation, implementing the disaster recovery services.
      Fidelity shall use commercially reasonable efforts to minimize the delay caused
      by the force majeure events and recommence the performance of Services affected
      by the force majeure event. In the event the delay caused by the force majeure
      event lasts for a period of more than thirty (30) days, the parties shall
      negotiate an equitable modification to this Agreement with respect to the
      Services affected by the force majeure event. If the parties are unable to
      agree
      upon an equitable modification within fifteen (15) days after the expiration
      of
      such thirty (30)-day period, then Client shall be entitled to terminate this
      Agreement immediately. without obligation for any liquidated damages provided
      herein.

     

         5.2
      Time of Performance and Increased Costs. Fidelity's time of performance with
      respect to Services performed under this Agreement shall be adjusted, if and
      to
      the extent reasonably necessary, in the event that (a) Client fails to timely
      submit data or materials in the prescribed form or m accordance with the
      requirements of this Agreement, (b) Client fails to perform on a timely basis,
      the functions or other responsibilities of Client described in this Agreement,
      (c) there occurs a force majeure event which prevents timely performance, (d)
      Client or any governmental agency authorized to regulate or supervise Client
      makes any special request which affects Fidelity's normal performance schedule,
      (e) Client fails to provide any Client resources called for by this Agreement,
      (f) any Client Provided Software or Client resource does not
      perform accordance with its specifications and, in each case, the same is
      necessary for Fidelity's performance hereunder. In addition, if any of the
      above
      events occur, and such event v.ill result in an increased cost to Fidelity
      for
      providing the affected Service, Fidelity shall so advise Client and Client
      may
      either pay any and all of such increased costs to Fidelity or relieve Fidelity
      of its responsibilities hereunder.

     

    6.     LIMITATION
      OF LIABILITY. As
      a
      condition precedent to any liability of Fidelity, Client must notify Fidelity
      in
      writing of any alleged negligence or breach of this Agreement as promptly as
      reasonably possible. FIDELITY'S
      LIABILITY, IF ANY, FOR ANY CLAIM, CAUSE OF ACTION OR LIABILITY WHETHER SOUNDING
      IN CONTRACT, TORT OR OTHERWISE ARISING UNDER OR IN ANY WAY RELATED TO THIS
      AGREEMENT, INCLUDING BUT NOT LIMITED TO LIABILITY FOR PROCESSING ERRORS OR
      NEGLIGENCE, SHALL BE LIMITED TO CLIENT'S DIRECT DAMAGES, ACTUALLY INCURRED,
      WHICH UNDER NO CIRCUMSTANCES SHALL EXCEED ITS CHARGES DURING THE SIX-MONTH
      PERIOD PRECEDING THE DATE OF THE ALLEGED NEGLIGENCE OR BREACH FOR THE PARTICULAR
      SERVICE TO WHICH CLIENT'S CLAIM PERTAINS. THE FOREGOING SIX- MONTH LIMITATION
      WILL NOT APPLY TO CLIENT'S CLAIMS FOR FIDELITY'S WILLFUL MISCONDUCT OR BREACH
      OF
      FIDELITY'S CONFIDENTIALITY OBLIGATIONS CONTAINED IN

    

    

    

    
      
        
        

      

      
        6

        
        

      

      
        
        

      

    

     

    THIS
      AGREEMENT. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, SPECIAL.
      PUNITIVE. INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER, INCLUDING
      WITHOUT LIMITATION. CLAIMS FOR LOSS OF REVENUE OR PROFITS. OR FOR CLAIMS OR
      DEMANDS MADE BY THIRD PARTIES. EVEN IF ADVISED OF THE POSSIBILITY OF SUCH
      DAMAGES. FIDELITY SHALL HAVE NO LIABILITY, EXPRESS OR IMPLIED, WHETHER ARISING
      UNDER CONTRACT, TORT OR OTHERWISE WHICH RESULTS DIRECTLY OR INDIRECTLY FROM
      THE
      INTERNAL OPERATIONS AND PERFORMANCE OF ANY CLIENT- PROVIDED SOFTWARE OR
      ANYENHANCEMENT, DEVELOPMENT OR MAINTENANCE THEREOF.

     

    7.     REPRESENTATIONS,
      WARRANTIES AND COVENANTS.

     

         7.1 Licenses
      and Permits and Compliance with Laws.

     

             (a)
      Licenses
      and Permits.
      Fidelity and Client shall each secure and maintain in force all licenses and
      permits required of it and its employees in the performance of its respective
      obligations under this Agreement, and shall conduct its business in full
      compliance with all laws, ordinances and regulations applicable to its business
      or applicable to the other party's business to the extent that the other party
      has notified Fidelity or Client, as the case may be, of the specific laws,
      ordinances or regulations with which the other party must comply.

     

             (b)
      Compliance
      with Laws.
      Fidelity and Client each shall comply, at its own expense, with the provisions
      of all applicable laws and regulations which may be applicable to each party
      in
      the performance of their respective obligations under this
      Agreement.

         7.2  
No
      Interference with Contractual Relationship. Each party warrants that, as of
      the
      date hereof, it is not subject to any contractual obligation that would prevent
      it from entering into this Agreement. Client and Fidelity each further warrant
      to the other that entering into this Agreement shall not cause or induce it
      to
      breach any of its other contractual obligations.

     

         7.3  Covenant
      of Good Faith. Each
      of
      the parties agree that, in its respective dealings with each other party arising
      out of or related to this Agreement, it shall act fairly and in good
      faith.

     

         7.4   Authorization
      and Effect.

     

             (a)
      The
      execution and delivery by Fidelity of its obligations under this Agreement
      have
      been duly authorized by all necessary corporate action on the part of Fidelity.
      This Agreement has been duly executed and delivered by Fidelity and, assuming
      the due execution and delivery of this Agreement by Client, constitutes a valid
      and binding obligation of Fidelity, except as the same may be limited by
      bankruptcy, insolvency, reorganization, moratorium or similar laws relating
      to
      or affecting the enforcement of creditor's rights generally, and subject to
      the
      qualification that general equitable principles may limit the enforcement of
      certain remedies, including the remedy of specific performance.

     

             (b
      ) The
      execution and delivery by Client of this Agreement and the fulfillment of its
      obligations under this Agreement have been duly authorized by all necessary
      corporate action on the part of Client. This Agreement has been duly executed
      and delivered by Client and, assuming the due execution and delivery of this
      Agreement by Fidelity, constitutes a valid and binding obligation of Client,
      except as the same may be limited by bankruptcy, insolvency, reorganization,
      moratorium or similar laws relating to or affecting the enforcement of
      creditor's rights generally, and subject to the qualification that general
      equitable principles may limit the enforcement of certain remedies, including
      the remedy of specific performance.

     

         7.5   Business
      Practices.
      To the
      best of its knowledge, neither party, nor any directors, officers, agents,
      employees or other persons associated with or acting on behalf of such party
      has
      made or given any payments or inducements, directly or indirectly, to any
      government officials in the jurisdictions in which such party conducts business
      in connection with any opportunity, agreement, license, permit, certificate,
      consent, order, approval, waiver or other authorization relating to the business
      of such party, except for such payments or inducements as were
      lawful

     

    

    
      
        
        

      

      
        7

        
        

      

      
        
        

    

    under
      the
      written laws, rules and regulations of such jurisdictions. To the best of its
      knowledge, neither party nor any directors, officers, agents, employees or
      other
      persons associated with or acting on behalf of such party: (a) has used any
      corporate funds for any unlawful contribution, gift, entertainment or other
      unlawful expense relating to political activity; (b ) made any direct or
      indirect unlawful payment to any Government official or employee from corporate
      funds; (c) violated or is in violation of any provision of the Foreign Corrupt
      Practices Act of 1977; or (d) made any bribe, unlawful rebate, pay o~ influence
      payment, kickback or other unlawful payment in connection with the business
      of
      such party.

     

        7.6 
      Software.

     

            (a)
Client
      Provided Software. Client represents and warrants to Fidelity that any
      Client Provided Software shall perform in all material respects with its
      documentation and specifications.

     

             (b)
      Fidelity Software. Fidelity represents and warrants
to
      Client
      that any Software shall perform in
      all
      material respects with its documentation and specifications.

     

        7.7
      Professional
      and Workmanlike. Each
      party represents and warrants to the other that they shall perform their
      respective personnel obligations under this Agreement, including Exhibits,
      in a
      professional and workmanlike
      manner.

     

        7.8.
      Disclaimer
      of Warranties. EXCEPT AS SPECIFICALLY Y
      PROVIDED
      IN
      THIS
      AGREEMENT, FIDELITY MAKES NO REPRESENTATION OR WARRANTY OF ANY
      KIND,
      EXPRESS, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO THE
      IMPLIED
      WARRANTIES OF MERCHANTABILITY AND
      FITNESS
      FOR A
      PARTICULAR
      PURPOSE, AND
      CLIENT
      AGREES THAT ALL SUCH OTHER REPRESENTATIONS AND
      WARRANTIES
      THAT ARE
      NOT
      PROVIDED IN
      THIS
      AGREEMENT ARE
      HEREBY
      EXCLUDED AND
      DISCLAIMED.

     

    THE
      PARTIES ACKNOWLEDGE
      THAT FIDELITY HAS
      SET
      ITS
      PRICES AND
      ENTERED
      INTO THIS AGREEMENT IN
      RELIANCE
      UPON THE
      LIMITATIONS
      OF LIABILITY AND
      THE
DISCLAIMERS
      OF WARRANTIES AND
      DAMAGES
      SET FORTH HEREIN, AND
      THAT
      THE
      SAME
      FORM
AN
      ESSENTIAL
      BASIS OF THE
      BARGAIN
      BETWEEN THE
      PARTIES.
      THE
      PARTIES
      AGREE THAT THE
      LIMITATIONS
      AND
      EXCLUSIONS
      OF LIABILITY AND
      DISCLAIMERS
      SPECIFIED IN
      THIS
      AGREEMENT WILL SURVIVE AND
      APPLY EVEN
      IF
      FOUND
      TO
HAVE
      FAILED OF
      THEIR
      ESSENTIAL PURPOSE.

     

    8.
      INDEMNIFICATION.

     

        8.1
      Personal
      Injury and Property Damage. Fidelity and Customer each will indemnify, defend
      and hold harmless the other from any and all claims, actions, damages,
      liabilities, costs and expenses, including without limitation reasonable
      attorney's fees and expenses, arising out of (a) the death or bodily injury
      of
      any agent, employee customer or business invitee of the indemnitor, and (b)
      the
      damage, loss or destruction of any property of the indemnitor.

     

        8.2
      Infringement of Fidelity Software. Fidelity shall defend at its own expense,
      any
      claim or action brought by any third party against Client or against its
      officers, directors, employees, Client affiliates, and agents for actual or
      alleged infringement of any patent, copyright or other intellectual property
      right (including, but not limited to, misappropriation of trade secrets) based
      upon the Software furnished hereunder by Fidelity to provide Services to Client
      hereunder. For the purposes of this Section, "Software" includes Licensed
      Software. Furthermore, Fidelity shall indemnify and hold Client and the Client
      affiliates harmless from and against any and all liabilities, losses, costs,
      damages, and expenses (including reasonable attorneys' fees) associated with
      any
      such claim or action incurred by Client and the Client affiliates. Fidelity
      shall have the sole right to conduct and control the defense of any such claim
      or action and all negotiations for its settlement or compromise, unless
      otherwise mutually agreed to in writing between the parties hereto. Fidelity
      shall give Client, and Client shall give Fidelity, as appropriate, prompt
      written notice of any written threat, warning or notice of any such claim or
      action against Fidelity or Client, as appropriate, or any other user or any
      supplier of components of the Software, which could have an adverse impact
      on
      Client's use of same, provided Fidelity or Client, as appropriate, knows of
      such
      claim or action. If, in any such suit so defended,

     

    
      
        
        

      

      
        8

        
        

      

      
        
        

      

    

    

    all
      or
      any part of the Software (or any component thereof) is held to constitute an
      infringement or violation of any other party's intellectual property rights
      and
      is enjoined, or if in respect of any claim of infringement, and if Fidelity
      deems it advisable to do so. Fidelity shall at its sole option take o~e or
      more
      of the following actions at no additional cost to Client: (a) procure the right
      to continue the use of the same \\without material interruption for Client;
      (b)
      replace the same with non-infringing software or component thereof; (c) modify)r
      said Software or component thereof so as to be non-infringing; or (d) take
      back
      the infringing Software or component thereof and credit Client with an amount
      equal to its appropriate fee. The foregoing represents the sole and exclusive
      remedy of Client with regard to any of the above infringements or alleged
      infringements.

     

        8.3
      Infringement
      of Client-Provided Software.
      Client shall defend at its own expense, any claim or action brought by any
      third
      party against Fidelity or against its officers, directors, employees, Fidelity
      affiliates, and agents for actual or alleged infringement of any patent,
      copyright or other intellectual property right (including, but not limited
      to,
      misappropriation of trade secrets) based upon the Client Provided Software,
      if
      any. Furthermore, Client shall indemnify and hold Fidelity and Fidelity's
      affiliates harmless from and against any and all liabilities, losses, costs,
      damages, and expenses (including reasonable attorneys' fees) associated with
      any
      such claim or action incurred by Fidelity and Fidelity's affiliates. Client
      shall have the sole right to conduct the defense of any such claim or action
      and
      all negotiations for its settlement or compromise, unless otherwise mutually
      agreed to in writing between the parties hereto. Client shall give Fidelity,
      and
      Fidelity shall give Client, as appropriate, prompt written notice of any written
      threat, warning or notice of any such claim or action against Fidelity or
      Client, as appropriate, or any other user or any supplier of components of
      Client-provided software covered hereunder, which could have an adverse impact
      on Fidelity's use of same, provided Fidelity or Client, as appropriate, knows
      of
      such claim or action. If in any such suit so defended, all or any part of the
      Client Provided Software ( or any component thereof) is held to constitute
      an
      infringement or violation of any other party's intellectual property rights
      and
      is enjoined, or if in respect of any claim of infringement, Client deems it
      advisable to do so, Client shall at is sole option take one or more of the
      following actions at no additional cost to Fidelity: (a) procure the right
      to
      continue the use of the same without material interruption for Fidelity; (b)
      replace the same with non-infringing software; (c) modify said Client Provided
      Software (to the extent permitted by such third party) so as to be
      non-infringing; or (d) relieve Fidelity of its obligation to use such Client
      Provided Software to perform the applicable Services hereunder. The foregoing
      represents the sole and exclusive remedy of Fidelity with regard to any of
      the
      above infringements or alleged infringements.

     

    9.
      CONTINGENCY
      PLAN.

     

        9.1
      Business Continuity Planning. Each party will develop, maintain
      and, as necessary in the event of business interruption, execute a business
      resumption plan, and will provide to the other party, its auditors and
      regulators reasonable access to the plan and to plan test results, as such
      other
      party may reasonably request from time to time, including such information
      that
      may be reasonably required to determine the compatibility of the
      plans.

     

            (a)
      Fidelity shall provide disaster recovery services for its batch and on-line
      processing obligations to Client at a dedicated facility which is equipped
      to
      handle the Fidelity data center processing in the event disaster recovery is
      needed. Client shall provide an alternate control point for data communications
      access to a backup network in the case of a disaster. Throughout the Term and
      any extensions thereof, Fidelity will maintain in effect contracts and/or
      arrangements for disaster recovery that are substantially equivalent to those
      which are in effect as of the Effective Date. At Client's request, Fidelity
      will
      make Fidelity's disaster recovery plans available for Client's
      review

     

            (b
      ) Client acknowledges that disaster recovery arrangements are designed to deal
      with circumstances that are expected to cause a substantial portion of the
      capabilities at the Fidelity's data center to be unavailable for a period
      exceeding seventy-two (72) consecutive hours.

     

            (c)
      Fidelity will test its disaster recovery capabilities at least once per calendar
      year. Client shall participate in the disaster recovery test when deemed
      appropriate by Fidelity .Fidelity will provide a report of the test and its
      results to Client by January 31st of each year for the test conducted during
      the
      immediately preceding calendar year .

     

    
      
        
        

      

      
        9

        
        

      

      
        
        

      

    

    

            (d)
      Fidelity
      will
      assist
      Client in
      establishing
      procedures and practices, which will
      enable
      Client to satisfy its responsibilities under this Agreement.

     

            (e)
      Upon request,
      Fidelity will review and comment upon those portions of the Client's overall
      business resumption plan related to the Services provided under this Agreement
      and will provide a written report setting forth any discrepancies between
      Client's overall business resumption plan and the Fidelity disaster recovery
      plan.

     

            (f)
      Each
      party will
      be
      responsible for training its own personnel as
      required
      in
      connection
      with all
      applicable
      contingency planning activities.

     

            (g)
      Each party's
      contingency planning activities will comply with such regulatory policies as
      may
      be applicable to Client's business. If compliance with any of these policies
      would significantly increase Fidelity's cost of providing products and services,
      Fidelity may increase the fees and charges under this Agreement by an amount
      that reflects a pro rata allocation of Fidelity's increased costs among the
      Fidelity customers affected by the change.

     

        9.2
      File
      Backup. Fidelity
      will provide and maintain adequate backup files of Client's data received by
      Fidelity and all programs utilized to process Client's data in order to execute
      to the business continuity plans as described above in this Section
      9.

     

        9.3
      Retention. Client shall maintain copies of all of Client's
      input data submitted to Fidelity for processing hereunder (whether submitted
      to
      Fidelity directly or through third parties) to permit reconstruction of such
      input data if required. Fidelity shall use Fidelity's standard practices to
      maintain copies of all input data for processing hereunder to permit
      reconstruction of such data if required. Client assumes all risks of loss and
      expenses of reconstruction of such input data, except for loss caused by
      Fidelity's failure to perform to Fidelity's standard practices. In the event
      that reconstruction of data is required, the parties shall mutually agree on
      the
      schedule for such reproduction based on the needs of the parties at that time.
      Reconstruction will be performed in accordance with Fidelity's data retention
      policy then in effect.

     

    10.
      CONFIDENTIAL
      INFORMATION.

     

        10.1
      Ownership.
      All
      Client Proprietary Information. including Client Provided Software which is
      Client's proprietary software, is and shall remain the sole property of Client.
      All Fidelity Proprietary Information developed by Fidelity and furnished to
      Client by Fidelity in connection with this Agreement is and shall remain the
      sole property of Fidelity, unless agreed to otherwise in writing by the parties.
      The parties acknowledge that this Agreement in no way limits or restricts
      Fidelity or any Fidelity affiliates from developing or marketing on their own
      or
      for any third party in the United States or any other country, the Software
      or
      any Licensed Software, as from time to time constituted (including, but not
      limited to, any modification. enhancement, interface, upgrade, or change, and
      all software, source code, blueprints, diagrams, flow charts, specifications,
      functional descriptions or training materials relating thereto) without payment
      of any compensation. or delivery of any notice, to Client

     

        10.2
      Confidentiality Obligation. All Confidential Information
      disclosed by Client or Fidelity to the other during the Term (I) shall be deemed
      the property of the disclosing party, (2) shall be used solely for the purposes
      of administering and otherwise implementing the terms of this Agreement, and
      (3)
      shall be protected by the receiving party in accordance with the terms of this
      Section 10. Fidelity acknowledges that the Client Proprietary Information is
      "Confidential Information" of Client, and Client acknowledges that the Fidelity
      Proprietary Information is "Confidential Information" of Fidelity.

     

        10.3
      Nondisclosure Covenant. Except as set forth in this Section 10,
      the parties agree that they shall not disclose any Confidential Information
      of
      the other party in whole or in part, including derivations, to any third party,
      without the prior written consent of the other party, except that Fidelity
      may
      disclose Client's Confidential Information to Fidelity's subcontractors and
      agents in order to carry out its responsibilities under the Agreement, provided
      that Fidelity first executes a confidentiality agreement with each such
      subcontractor and/or agent. Confidential Information shall be held in confidence
      by the receiving party and its employees, contractors,

     

    
      
        
        

      

      
        10

        
        

      

      
        
        

      

    

    subcontractors,
      and agents and shall be disclosed to only those of the receiving party's
      employees, contractors, subcontractors or agents who have a need to know such
      information in connection with the administration and implementation of this
      Agreement. The receiving party shall cause such contractors and agents to
      execute confidentiality agreements that contain terms that are consistent with
      this Section. Under no circumstances shall Client disclose the Software or
      the
      Licensed Software to, or use the Software or Licensed Software on behalf of:
      a
      competitor of Fidelity.

     

        10.4
      Exceptions.
      Confidential
      Information shall not be deemed proprietary and the receiving party shall have
      no obligation with respect to any such information which:

     

            (a)
is
      or
      becomes publicly known through no wrongful act, fault or negligence of the
      receiving party;

            (b
      ) was known by the
      receiving party prior to disclosure and the receiving party was not under a
      duty
      of non-disclosure;

            (c)
      was disclosed to
      the receiving party by a third party who was free of obligations of
      confidentiality to the party providing the information;

            (d)
      is approved for
      release by written authorization of the disclosing party,

            (e)
      is publicly
      disclosed pursuant to a requirement or request of a governmental agency or
      disclosure
      is required by operation of law; or

            (f)
      is furnished to a
      third party by the disclosing party owning the Confidential Information without
      a similar restriction on the third party's rights.

     

            Notwithstanding
      anything to the contrary contained herein, either party may disclose
      Confidential Information of the other pursuant to ( I) a requirement or official
      request of a governmental agency, a court or administrative subpoena or order,
      or any applicable legislative or regulatory requirement; (2) in defense of
      any
      claim or cause of action asserted against such party or any of its affiliates,
      officers, directors, employees or agents; (3) as otherwise permitted by the
      GLB
      Act; (4) as required by law or national stock exchange rule; or (5) as otherwise
      permitted under the Agreement.

     

     

        10.5
      Confidentiality
      of this Agreement; Protective Arrangements.

     

          (a)
      The parties acknowledge that this Agreement contains confidential information
      that may be considered proprietary by one or both of the parties, and agree
      to
      limit distribution of this Agreement to those individuals with a need to know
      the contents of this Agreement. In no event may this Agreement be reproduced
      or
      copies shown to any third parties ( exclusive of contractors, subcontractors
      and
      agents who have a need for it) without the prior v.written consent of the other
      party, except as may be necessary by reason of legal, accounting, tax or
      regulatory requirements, in which event Client and Fidelity shall exercise
      reasonable diligence in limiting such disclosure to the minimum necessary under
      the particular circumstances. Furthermore the parties v.will seek commercial
      confidential status for this Agreement with any regulatory commission with
      which
      this Agreement must be filed, to the extent such a designation can be
      secured.

     

          (b
      ) In addition, each party shall give notice to the other parties of any demands
      to disclose or provide Confidential Information received from the other or
      any
      third party under lawful process prior to disclosing or furnishing Confidential
      Information, and shall cooperate in seeking reasonable protective arrangements
      requested by the other party .

     

        10.6
      Security Measures. Fidelity has implemented certain security
      measures designed to safeguard Client's customer information and to satisfy
      Fidelity's confidentiality obligations set forth above. Upon Client's written
      request, Fidelity will adhere to security measures in addition to those measures
      previously implemented by Fidelity. If adherence to such Client-requested
      security measures will increase Fidelity's costs of operation, Client will
      reimburse Fidelity for the implementation and/or adherence to such additional
      security measures requested by Client.

     

        10.7
      Remedies.
      The
      parties hereto agree that the remedy at law for the breach of any provision
      of
      this Section 10 by the other party may be inadequate and that the non-breaching
      party shall be entitled to seek injunctive

    

    
      
        
        

      

      
        11

        
        

      

      
        
        

      

    

    relief
      without bond, in addition to any rights or remedies that the non-breaching
      party
      may have for such breach. The rights and obligations of the parties hereto
      under
      this Section 10 shall survive any termination of this Agreement.

     

    11.
      AUDIT RECORDS.Client
      shall be responsible for maintaining all necessar)' audit records required
      by
      law or any regulatory authority having jurisdiction over Client.

     

    12.
      REGULATORY COMPLIANCE. During the Term, the Software and
      Services will comply with the applicable federal banking data processing output
      requirements specified by the federal authorities applicable to Client. Client
      will make Fidelity aware of any applicable local and/or state regulatory
      requirements that are different from those imposed by federal banking regulatory
      authorities. Any changes required by such state or local requirements which
      Fidelity agrees to make shall be paid for by Client, and to the extent possible,
      Fidelity shall endeavor to obtain consents to share the costs of such charges
      required by such state and local requirements among the Fidelity clients
      affected.

     

    13.
      INSURANCE.A
      schedule of Fidelity's current insurance coverage has been furnished in Exhibit
      1. Fidelity will maintain insurance coverage consistent with commercially
      reasonable standards.

     

    14.
      AUDITOR'S REVIEW.A
      certified
      public accounting firm
      shall
      perform an
      annual
      review of
      Fidelity's computer
      facility. Client agrees that such firm
      shall
      have sole authority and responsibility
      for such review. Fidelity will
      provide
      Client with a
      copy
      of
      the report.

     

    15.
      SECURITY.Client
      shall implement all necessary security procedures, including but not limited
      to
      any security procedures required by Fidelity, with regards to the Services.
      Client acknowledges that Client is fully responsible for security at its
      facilities, and that Fidelity has NO control over the security of the terminals
      located at Client's facilities or those individuals accessing information
      through those terminals. Client assumes full responsibility for any unauthorized
      persons utilizing such terminals or for the unauthorized use of any information
      obtained from them. Client hereby expressly waives any claim against Fidelity
      arising out of a breach of those terminals.

     

    16.
      GOVERNMENTAL EXAMINATIONS.If
      required by a regulatory authority, agency or commission, Client hereby
      authorizes Fidelity to furnish data and/or output thereto at Client's expense.
      Client authorizes Fidelity to comply with all applicable provisions of any
      statute, law, regulation or ordinance of any governmental authority having
      jurisdiction, including but not limited to any laws pertaining to governmental
      regulation and examination of services.

     

    17.
      SUBCONTRACTING.Client
      agrees that Fidelity may, in its sole discretion. subcontract all or any part
      of
      its obligations hereunder to one or more subcontractors, but in no event shall
      Client be required, without prior written consent, to look to any such
      subcontractor directly for performance of any such obligation or to make any
      payment directly to any subcontractor.

     

    18.
      DISPUTE
      RESOLUTION.

     

    18.1
      Dispute Resolution Procedures. In the event a dispute arises
      between Fidelity and Client with respect to the terms and conditions of this
      Agreement, or any subject matter governed by this Agreement, such dispute shall
      be settled as set forth in this Section. If either party exercises its right
      to
      initiate the dispute resolution procedures under this Section, then during
      such
      procedure any time periods providing for termination of the Agreement or curing
      any material breach under Section 2 shall be automatically suspended, except
      with respect to any termination or breach arising out of Client's failure to
      make timely and complete payments to Fidelity under this Agreement. At such
      time
      as the dispute is resolved, interest at a rate equal to the lesser of (i) prime
      rate plus two percent (2%) per annum, as published in the Wall Street Journal
      on
      the first Monday (or next bank business day) following the due date, or (ii)
      the
      highest rate permitted by law (as calculated on the basis of the actual days
      in
      the applicable calendar year) for the period of dispute shall be paid to the
      party entitled to receive the disputed monies to compensate for the lapsed
      time
      between the date such disputed amount originally was to have been paid ( or
      was
      paid) through the date monies are paid ( or credited) in settlement of the
      dispute.

    

    
      
        
        

      

      
        12

        
        

      

      
        
        

      

    

        18.2
      Claims Procedures. If any party shall have any dispute with
      respect to the terms and conditions of this Agreement, or any subject matter
      referred to in or governed by this Agreement, that party (through the Fidelity
      Account Manager or the Client Executive Liaison, as the case may be) shall
      provide written notification to the other party (through the Fidelity Account
      Manager or the Client Executive Liaison, as the case may be) in the form of
      a
      claim identifying the issue or amount disputed and including a detailed reason
      for the claim. The party against whom the claim is made shall respond in writing
      to the claim within thirty (30) days from the date of receipt of the claim
      document. The party filing the claim shall have an additional thirty (30) days
      after the receipt of the response to either accept the resolution offered by
      the
      other party or request implementation of the Escalation Procedures. Failure
      to
      meet the time limitations set forth in this Section shall result in the
      implementation of the Escalation Procedures.

     

        18.3
      Escalation
      Procedures.

     

            (a)
      Each of the
      parties will negotiate, in good faith, any claim or dispute that has not been
      satisfactorily resolved following the claim resolution procedures described
      in
      Section 18.2. To this end, each party will escalate any and all unresolved
      disputes or claims in accordance with Section 18.3(b) and (c) before taking
      further action.

     

            (b)
      If the
      negotiations conducted pursuant to Section 18.2 do not lead to resolution of
      the
      underlying dispute or claim to the satisfaction of a party involved in such
      negotiations, then either party may notify the other in writing that he/she
      desires to elevate the dispute or claim to the ________________ of Fidelity
      and
      the _______________ of Client for resolution. Upon receipt by the other party
      of
      such written notice, the dispute or claim shall be so elevated and the
      ________________ of Fidelity and the __________________ of
      Client
      shall negotiate in good faith and each use its reasonable efforts to resolve
      such dispute or claim. The location, format, frequency, duration and conclusion
      of these elevated discussions shall be left to the discretion of the
      representatives involved. Upon agreement, the representatives may utilize other
      alternative dispute resolution procedures to assist in the negotiations.
      Discussions and correspondence among the representatives for purposes of these
      negotiations shall be treated as confidential information developed for purposes
      of settlement, exempt from discovery and production, which shall not be
      admissible in subsequent proceedings between the parties. Documents identified
      in or provided with such communications, which are not prepared for purposes
      of
      the negotiations, are not so exempted and may, if otherwise admissible, be
      admitted in evidence in such subsequent proceeding.  

     

          (
      c) If the negotiations conducted pursuant to Section 18.3(b) do not lead to
      resolution of the underlying dispute or claim to the satisfaction of a party
      involved in such negotiations, then either party may notify the other in writing
      that he/she desires to elevate the dispute or claim to the President. Integrated
      Financial Solutions, of Fidelity and the ___________________ of Client for
      resolution. Upon receipt by the other party of such written notice, the dispute
      or claim shall be so elevated and the President. Integrated Financial Solutions,
      of Fidelity and the __________________ of
      Client
      shall negotiate in good faith and each use its reasonable efforts to resolve
      such dispute or claim. The location, format, frequency, duration and conclusion
      of these elevated discussions shall be left to the discretion of the
      representatives involved. Upon agreement. the representatives may utilize other
      alternative dispute resolution procedures to assist in the negotiations.
      Discussions and correspondence among the representatives for purposes of these
      negotiations shall be treated as confidential information developed for purposes
      of settlement, exempt from discovery and production, which shall not be
      admissible in any subsequent proceedings between the parties. Documents
      identified in or provided with such communications, which are not prepared
      for
      purposes of the negotiations, are not so exempted and may, if otherwise
      admissible, be admitted in evidence in such subsequent proceeding.

     

    18.4
      Arbitration Procedures. In the event that a claim, controversy or dispute
      between the parties with respect to the tenDS and conditions of this Agreement,
      or any subject matter governed by this Agreement, which is subject to
      arbitration hereunder and which has not been resolved by use of the claims
      procedures described in Section 18.2 or the Escalation Procedures described
      in
      Section 18.3, either party may, within thirty (30) days after the
      representatives have met to address such claims, controversy or dispute, request
      binding arbitration of the issue in accordance with the following
      procedures.

     

    
      
        
        

      

      
        13

        
        

      

      
        
        

      

    

            (a)
      Either party may
      request arbitration by giving the other involved party written notice to such
      effect, which notice shall describe, in reasonable detail, the nature of the
      dispute, controversy or claim Such arbitration shall be governed by the
      Commercial Arbitration Rules of the American Arbitration Association, 1939
      Rhode
      Island Avenue, N. W ., Suite 509, Washington, D.C. 20036 ("AAA "). 

     

            (b
      ) Upon either
      party's request for arbitration, an arbitrator shall be selected by mutual
      agreement of the parties to hear the dispute in accordance with AAA rules.
      If
      the parties are Unable to agree upon an arbitrator, then either party may
      request that the AAA select an arbitrator and such arbitrator shall hear the
      dispute in accordance with AAA rules. For disputes amounting to US$5,OOO,OOO
      or
      more, a panel of three (3) arbitrators shall be selected to hear the dispute.
      In
      such case, each party shall select one (I) arbitrator who shall be Unaffiliated
      with such party, and the two (2) arbitrators shall select a third arbitrator.
      If
      the two (2) arbitrators are unable to agree upon a third arbitrator, the AAA
      will select the third arbitrator. In the case of a three (3)-arbitrator panel,
      the decision of a majority shall control. The arbitration shall be held in
      the
      State of Florida.

     

            (c)
      Each of the
      parties shall bear its own fees, costs and expenses of the arbitration and
      its
      own legal expenses, attorneys' fees and costs of all experts and witnesses.
      Unless the award provides otherwise, the fees and expenses of the arbitration
      procedures, including the fees of the arbitrator or arbitrators, will be shared
      equally by the involved parties.

     

            (d)
      Any award
      rendered pursuant to such arbitration shall be final, conclusive and binding
      upon the parties, and any judgment thereon may be entered and enforced in any
      court of competent jurisdiction.

     

        18.5
      Claim
      Expiration. No
      claims
      to be resolved under this Section 18 maybe made more than two (2) years after
      the date by which the fault or failure was or should reasonably have been
      discovered.

     

        18.6
      Continuation of Services. Unless Fidelity is bringing an action for Client's
      failure to make timely and complete payments to Fidelity for Services not
      otherwise in dispute under Section 18, Fidelity will continue to provide
      Services under this Agreement, and Client will continue to make payments to
      Fidelity, in accordance with this Agreement, during the dispute resolution
      procedures described in this Section

    18.
      

     

    19.
      GENERAL.

     

        19.1
      Independent
      Contractor. It
      is
      agreed that Fidelity is an
      independent
      contractor and that:

     

            (a)
Client
      Supervisory Powers. Client
      has no power to supervise, give directions or otherwise
      regulate Fidelity's operations or its employees.

            (b
      ) Employees.
      Each
      party shall be solely responsible for payment of compensation to its respective
      personnel and for any injury to them in the course of their employment. Each
      party shall assume full responsibility for payment of all federal, state, local
      and foreign taxes or contributions imposed or required under unemployment
      insurance, social security and income tax laws with respect to such
      persons.

            (c)
      Relationship. The parties declare and agree that each party is
      engaged in a business which is independent from that of the other party and
      each
      party shall perform its obligations as an independent contractor. Neither party
      is an agent of the other party and has no authority to represent the other
      party
      as to any matters, except as authorized herein.

     

        19.2
      Notices.
      All
      notices required by this Agreement shall be in writing; shall be mailed or
      personally delivered to the other party at the address set forth below, or
      such
      other address as subsequently shall be given by either party to the other in
      writing; and shall be deemed effective upon personal delivery to the other
      party, on the date received when deposited with a recognizable overnight courier
      services such as FedEx, or three (3) days after mailing via Certified Mail,
      Return Receipt Requested, if mailed with sufficient postage and properly
      addressed.

     

    If
      to
      Fidelity:        Fidelity
      Information Services,
      Inc

    

    
      
        
        

      

      
        14

        
        

      

      
        
        

      

    

                    601
      South Lake
      Destiny Drive, Suite 300 

                    Maitland,
      Florida
      32751

                    Attn: President,
      Integrated Financial
      Solutions

    With
      a
      copy
      to:        Fidelity
      Information Services, Inc. 

                    601
      Riverside Avenue,
      l2th Floor 

                    Jacksonv-ille,
      Florida 32204 

                    Attn:
      General
      Counsel

    If
      to
      Client:           ___________________________

                  ___________________________

                  
      ___________________________

                   Attn: ______________________

     

     

        19.3
      Headings
      and Construction. The
      headings used in this Agreement are for convenience only and shall not be used
      in construing the meaning, intent, or interpretation of the provisions
      hereof.

     

        19.4
      Survival
      of Paragraphs. Any
      provision of this Agreement which contemplated performance or observance after
      this Agreements expiration or termination shall survive the termination or
      expiration of this Agreement and continue in full force and effect. Such
      provision shall include, without limitation, Sections 4, 6, 8, 10,
      and
      19.2.

     

        19.5
      Entire Agreement, Discontinuation of Services and Amendments.
      This Agreement contains the entire agreement of the parties hereto. No other
      agreement, statement or promise made by any party hereto or by any employee,
      officer, or agent of any party hereto that is not in writing and signed by
      the
      parties is binding. This Agreement may not be amended in any fashion except
      by
      written instrument, executed by the parties hereto, specifically providing
      for
      the amendment of this Agreement. Notwithstanding the foregoing, Fidelity shall
      not discontinue any Services hereunder without providing at least two hundred
      and forty (240) days' prior written notice to Client. Such notice will contain
      a
      reasonable alternative to the Services being discontinued. If this
      discontinuation of Services, excluding Fidelity's notice not to renew this
      Agreement or any notice of Client's default under this Agreement, causes the
      Client any one-time financial impact, Fidelity agrees to reimburse Client for
      those one-time expenses on an actual costs basis. It will be assumed that the
      referenced notice will be considered delivered per Section 19.2.

     

        19.6
      Severability. In the event that anyone or more of the
      provisions contained herein shall for any reason be held to be unenforceable
      in
      any respect under law, such unenforceability shall not affect any other
      provision of this Agreement. but this Agreement shall be construed as if such
      unenforceable provision or provisions had never been contained herein, provided
      that the removal of such offending term or provision does not materially alter
      the burdens or benefits of either of the parties under this Agreement or any
      Exhibit.

     

        19.7
      Third Party Beneficiaries. The provisions of this Agreement are
      for the benefit of the parties and not for any other person. Should any third
      party institute proceedings, this Agreement shall not provide any such person
      with any remedy, claim, liability, reimbursement, cause of action, or other
      right. Client agrees that the Services are for the benefit of Client only.
      Client agrees not to resell or re-market the Services to any third
      party.

     

        19.8
      Executed
      in Counterparts. This
      Agreement may be executed in counterparts, each of which shall be an original,
      but such counterparts shall together constitute but one and the same
      document.

     

        19.9
      Remedies
      Cumulative. Unless
      otherwise provided for under this Agreement, all rights of termination or
      cancellation. or other remedies set forth in this Agreement, are cumulative
      and
      are not intended to be exclusive of other remedies to which the injured party
      may be entitled by law or equity in case of any breach or threatened breach
      by
      the other party of any provision of this Agreement. Use of one or more remedies
      shall not bar the use of any other remedy for the purpose of enforcing any
      provision of this Agreement.

     

    
      
        
        

      

      
        15

        
        

      

      
        
        

      

    

     

        19.10
      Publicity. The parties shall consult with each other in
      preparing any Press Release. Neither party shall issue or cause the publication
      of any such Press Release without the prior written consent of the other party;
      except that nothing herein will prohibit either party from issuing or causing
      publication of any such Press Release to the extent that such action is required
      by applicable law or the rules of any national stock exchange applicable to
      such
      party or its affiliates, in which case the party wishing to make such disclosure
      will, if practicable under the circumstances, notify the other party of the
      proposed time of issuance of such Press Release and consult with and allow
      the
      other Party reasonable time to comment on such Press Release in advance of
      its
      issuance.

     

        19.11
      Assignment. This Agreement shall inure to the benefit of and be
      binding upon the parties hereto, their successors and assigns. Client shall
      not
      make any assignment hereof without the prior written consent of Fidelity, which
      consent shall not be unreasonably withheld or delayed. Nothing in this Agreement
      is to be construed to limit or restrict the right of either party to effect
      any
      assignment of this Agreement by merger, reorganization, sale of corporate assets
      or other corporate change as long as the duties and obligations outlined in
      this
      Agreement are assumed by the surviving entity. All obligations and duties of
      any
      party under this Agreement shall be binding on all successors in interest and
      permitted assigns of such party ..

     

        19.12
      Governing
      Law. This
      Agreement is governed by the laws of the State of Florida. Any action brought
      as
      a result, directly or indirectly, of this Agreement shall be brought in a court
      of appropriate jurisdiction in Jacksonville, Florida. The successful party
      in
      any such action shall be entitled to recover from the unsuccessful party, in
      addition to any other relief to which it may be entitled, reasonable attorney's
      fees (including an allocable share of the cost of in house counsel) and costs
      incurred by it in prosecuting or defending such action.

    
 

    
      
        
        

      

      
        16

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