Document:

Exhibit 10.1

 

Policy for Non-Business Use of the Corporate Aircraft

 

Non-business (personal) use
of the corporate aircraft of Marvell Technology Group Ltd. (“Marvell”) and its
subsidiaries shall be limited to the Chief Executive Officer (the “CEO”),
provided that the CEO may not use the corporate aircraft for more than three
personal trips in any fiscal year without the approval of the executive
compensation committee of the board of directors of Marvell.  For clarity, one round trip or one
multi-point trip shall constitute one trip for purposes of this
limitation.  Family members, friends or
people associated with a charitable interest of the CEO may accompany the CEO
on a personal use flight or use the corporate aircraft with the CEO’s approval
within these limitations.  With respect
to any personal use, all applicable IRS guidelines (e.g., the SIFL or Standard
Industry Fare Level) for personal use flights shall be followed.Exhibit 10.1

 

NOVAMED, INC.

 

SECOND AMENDED AND RESTATED

1999 STOCK PURCHASE PLAN

 

(Original Plan adopted effective May 24,
1999)

 

(Amended and Restated Plan adopted effective August 1,
1999)

 

(Second Amended and Restated Plan adopted
effective May 21, 2008)

 

 

NOVAMED, INC.

 

SECOND AMENDED AND RESTATED

1999 STOCK PURCHASE PLAN

(Original Plan adopted effective May 24,
1999)

(Amended and Restated Plan adopted effective August 1,
1999)

(Second Amended and Restated Plan adopted
effective May 21, 2008)

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I ESTABLISHMENT AND PURPOSE

  	
  1

  
	
  1.1

  	
  Purpose

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE II DEFINITIONS

  	
  1

  
	
  2.1

  	
  “Account

  	
  1

  
	
  2.2

  	
  “Agreement” or “Option
  Agreement

  	
  1

  
	
  2.3

  	
  “Board of Directors”
  or “Board

  	
  1

  
	
  2.4

  	
  “Code” or “Internal
  Revenue Code

  	
  1

  
	
  2.5

  	
  “Committee

  	
  2

  
	
  2.6

  	
  “Common Stock

  	
  2

  
	
  2.7

  	
  “Company

  	
  2

  
	
  2.8

  	
  “Continuous Service

  	
  2

  
	
  2.9

  	
  “Contribution Rate

  	
  2

  
	
  2.10

  	
  “Disability

  	
  2

  
	
  2.11

  	
  “Eligible Employee

  	
  2

  
	
  2.12

  	
  “ERISA

  	
  3

  
	
  2.13

  	
  “Exercise Date

  	
  3

  
	
  2.14

  	
  “Exchange Act

  	
  3

  
	
  2.15

  	
  “Fair Market Value

  	
  3

  
	
  2.16

  	
  “Grant Date

  	
  3

  
	
  2.17

  	
  “Option

  	
  3

  
	
  2.18

  	
  “Option Period

  	
  3

  
	
  2.19

  	
  “Option Price

  	
  3

  
	
  2.20

  	
  “Participant

  	
  3

  
	
  2.21

  	
  “Plan

  	
  4

  
	
  2.22

  	
  “Plan Year

  	
  4

  
	
  2.23

  	
  “Representative

  	
  4

  
	
  2.24

  	
  “Retirement

  	
  4

  
	
  2.25

  	
  “Securities Act

  	
  4

  
	
  2.26

  	
  “Subsidiary

  	
  4

  
	
  2.27

  	
  “Termination of
  Employment

  	
  4

  

 

ii

	
   

  	
   

  	
   

  
	
  ARTICLE III ADMINISTRATION

  	
  5

  
	
  3.1

  	
  Committee Structure
  and Authority

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV STOCK PROVISIONS

  	
  7

  
	
  4.1

  	
  Number of Shares
  Subject to the Plan

  	
  7

  
	
  4.2

  	
  Release of Shares

  	
  7

  
	
  4.3

  	
  Restrictions on Shares

  	
  7

  
	
  4.4

  	
  Stockholder Rights

  	
  8

  
	
  4.5

  	
  Stock Valuation

  	
  8

  
	
  4.6

  	
  Custodian

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE V ELIGIBILITY; OPTION PROVISIONS

  	
  9

  
	
  5.1

  	
  Eligibility

  	
  9

  
	
  5.2

  	
  Grant of Options

  	
  9

  
	
  5.3

  	
  Option Period

  	
  9

  
	
  5.4

  	
  Option Price

  	
  9

  
	
  5.5

  	
  Contribution Rate

  	
  10

  
	
  5.6

  	
  Purchase of Shares

  	
  10

  
	
  5.7

  	
  Cancellation of Options

  	
  11

  
	
  5.8

  	
  Terminated Employees

  	
  11

  
	
  5.9

  	
  Deceased Employees

  	
  11

  
	
  5.10

  	
  Disabled or Retired
  Employees

  	
  11

  
	
  5.11

  	
  Limitations

  	
  12

  
	
  5.12

  	
  Nonassignability

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI GENERAL PROVISIONS APPLICABLE TO THE PLAN

  	
  12

  
	
  6.1

  	
  Termination of Plan

  	
  12

  
	
  6.2

  	
  Investment Representation

  	
  12

  
	
  6.3

  	
  Effect of Certain
  Changes

  	
  13

  
	
  6.4

  	
  Withholding

  	
  15

  
	
  6.5

  	
  No Company Obligation

  	
  16

  
	
  6.6

  	
  Committee Discretion

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII MISCELLANEOUS

  	
  17

  
	
  7.1

  	
  Indemnification of the
  Board and Committee

  	
  17

  
	
  7.2

  	
  Mitigation of Excise
  Tax

  	
  17

  
	
  7.3

  	
  Interpretation

  	
  18

  
	
  7.4

  	
  Governing Law

  	
  18

  
	
  7.5

  	
  Limitations on
  Liability

  	
  18

  
	
  7.6

  	
  Validity

  	
  18

  
	
  7.7

  	
  Assignment

  	
  18

  
	
  7.8

  	
  Captions

  	
  18

  
	
  7.9

  	
  Amendments

  	
  18

  
	
  7.10

  	
  Entire Agreement

  	
  18

  
	
  7.11

  	
  Rights with Respect to
  Continuance of Employment

  	
  18

  

 

iii

 

	
  7.12

  	
  Options for Shares in
  Substitution for Stock Options Granted by Other Corporations

  	
  19

  
	
  7.13

  	
  Procedure for Adoption

  	
  19

  
	
  7.14

  	
  Procedure for
  Withdrawal

  	
  19

  
	
  7.15

  	
  Expenses

  	
  19

  

 

iv

 

NOVAMED, INC.

 

SECOND AMENDED AND RESTATED

1999 STOCK PURCHASE PLAN

 

ARTICLE I

 

ESTABLISHMENT AND PURPOSE

 

1.1           Purpose.  The NovaMed, Inc. Amended and Restated
1999 Stock Purchase Plan (the “Plan”) is hereby established effective August 1,
1999 by NovaMed, Inc.  The adoption
of the Plan is expressly conditioned upon the Plan’s approval by the
stockholders of NovaMed, Inc. within twelve (12) months after the date the
Plan was originally adopted.  The purpose
of the Plan is to promote the overall financial objectives of the Company and
its stockholders by motivating participants in the Plan to achieve long-term
growth in stockholder equity in the Company. 
The Plan is intended as an “employee stock purchase plan” within the
meaning of Section 423 of the Code, and Options granted hereunder are
intended to constitute options granted under such a plan, and the Plan document
and all actions taken in connection with the Plan shall be constructed
consistently with such intent.

 

ARTICLE II

 

DEFINITIONS

 

The following sections of this Article II provide basic
definitions of terms used throughout the Plan, and whenever used therein in the
capitalized form, except as otherwise expressly provided, the terms shall be
deemed to have the following meanings:

 

2.1           “Account”
shall mean the bookkeeping account established on behalf of a Participant to
which shall be credited all contributions paid for the purpose of
purchasing  Common Stock under the Plan,
and to which shall be charged all purchases of 
Common Stock pursuant to the Plan. 
The Company shall have custody of such Account.

 

2.2           “Agreement”
or “Option Agreement” means, individually or collectively, any
enrollment and withholding agreement entered into pursuant to the Plan.  An Agreement shall be the right of the
Company to withhold from payroll amounts to be applied to purchase Common
Stock.

 

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

 

2.4           “Code” or “Internal
Revenue Code” means the Internal Revenue Code of 1986, as amended, and any
subsequent Internal Revenue Code.  If
there is a subsequent Internal Revenue 

 

 

Code, any
references herein to Internal Revenue Code sections shall be deemed to refer to
comparable sections of any subsequent Internal Revenue Code.

 

2.5           “Committee”
means the person or persons appointed by the Board of Directors to administer
the Plan, as further described in the Plan.

 

2.6           “Common Stock”
means the shares of the Common Stock of the Company, $1.00 par value per share,
whether presently or hereafter issued, and any other stock or security
resulting from adjustment thereof as described in Section 6.3.

 

2.7           “Company” means
NovaMed, Inc. and includes any successor or assignee corporation or
corporations into which the Company may be merged, changed or consolidated; any
corporation for whose securities the securities of the Company shall be
exchanged; and any assignee of or successor to substantially all of the assets
of the Company.

 

2.8           “Continuous Service”
shall mean, subject to modification by the Committee, an Eligible Employee’s
number of full years and completed months of continuous employment with the
Company or a Subsidiary from his last hiring date to his date of Termination of
Employment for any reason.  The Committee
may provide rules from time to time regarding the calculation of
Continuous Service and the method for crediting such service.

 

2.9           “Contribution Rate”
means the rate determined under Section 5.5

 

2.10         “Disability” means
a mental or physical illness that entitles the Participant to receive benefits
under the long-term disability plan of the Company or a Subsidiary, or if the
Participant is not covered by such plan, a mental or physical illness that
renders a Participant permanently and totally incapable of performing his
duties as an employee of the Company or a Subsidiary. Notwithstanding the
foregoing, a Disability shall not qualify under this Plan if it is the result
of (a) a willfully self-inflicted injury or willfully self-induced
sickness; or (b) an injury or disease contracted, suffered, or incurred,
while participating in a criminal offense. 
The determination of Disability shall be made by the Committee.  The determination of Disability for purposes
of this Plan shall not be construed to be an admission of disability for any
other purpose.

 

2.11         “Eligible Employee”
means each employee of the Company or a Subsidiary (if the Subsidiary has
adopted the Plan) on a Grant Date except that the Committee in its sole
discretion may exclude:

 

(a)           any employee who has
accrued less than a minimum period of Continuous Service established by the
Committee (but not to exceed 2 years).

 

(b)           any employee whose
customary employment is 20 hours or less per week;

 

(c)           any employee whose
customary employment is for not more than 5 months in any calendar year;

 

2

 

(d)           any employee who would
directly or indirectly own or hold (applying the rules of Section 424(d) of
the Code to determine stock ownership) immediately following the grant of an
Option hereunder an aggregate of five percent (5%) or more of the total
combined voting power or value of all outstanding shares of all classes of
stock of the Company or any Subsidiary; and

 

(e)           any employee who is a
highly compensated employee of the Company or Subsidiary within the meaning of Section 414(q) of
the Code.

 

Any period of
service described in the preceding sentence may be decreased in the discretion
of the Committee.

 

2.12         “ERISA” means the
Employee Retirement Income Security Act of 1974, as amended.

 

2.13         “Exercise Date”
means such one or more dates determined by the Committee on which the
accumulated value of the Account shall be applied to purchase Common
Stock.  The Committee may accelerate an
Exercise Date in order to satisfy the employment period requirement of Section 423(a)(2).

 

2.14         “Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

 

2.15         “Fair Market Value”
means the value determined on the basis of the good faith determination of the
Committee pursuant to the applicable method described in Section 4.5 and
as adjusted, averaged or otherwise modified by the Committee.

 

2.16         “Grant Date” means
the date or dates established by the Committee on which one or more Options are
granted pursuant to the Plan.  The
Committee may determine for any Plan Year that there shall be no Grant Date, in
which case no Options shall be granted for that Plan Year.  The terms and conditions of any Option
granted on a particular Grant Date shall be independent of and have no effect
on the terms and conditions of any Option granted on another Grant Date.

 

2.17         “Option” means the
right to purchase Common Stock pursuant to the Plan and any Agreement.

 

2.18         “Option Period”
means the period beginning on the Grant Date and expiring on the Exercise Date
as determined by the Committee, subject to the limitations of Section 5.3.

 

2.19         “Option Price”
means the price at which the Company’s 
Common Stock granted as of a specific Grant Date may be purchased under
an Option.  The price shall be subject to
the limitation set forth in Section 5.4.

 

2.20         “Participant”
means an Eligible Employee who satisfies the eligibility conditions of the Plan
and to whom an Option has been granted by the Committee under the Plan, and in
the event 

 

3

 

a Representative
is appointed for a Participant, then the term “Participant” shall mean such
appointed Representative, or successor Representative(s) appointed, as the
case may be, provided that “Termination of Employment” shall mean the
Termination of Employment of the Participant.

 

2.21         “Plan” means the
NovaMed, Inc. 1999 Stock Purchase Plan, as herein set forth and as may be
amended from time to time.

 

2.22         “Plan Year” means,
for the first Plan Year, the period starting on the effective Date of the Plan,
and ending on December 31, 1999; and for all subsequent Plan Years, the
twelve (12) consecutive month period starting on January 1 and ending on
the following December 31.  The
Committee may at any time in its discretion designate another period as the
Plan Year.

 

2.23         “Representative”
means (a) the person or entity acting as the executor or administrator of
a Participant’s estate pursuant to the last will and testament of a Participant
or pursuant to the laws of the jurisdiction in which the Participant had his
primary residence at the date of the Participant’s death; (b) the person
or entity acting as the guardian or temporary guardian of a Participant’s
estate; or (c) the person or entity which is the beneficiary of the
Participant upon or following the Participant’s death.  A Participant may file a written designation
of his Representative with the Committee. 
Such designation of his Representative may be changed by the Participant
at any time by written notice given in accordance with rules and
procedures established by the Committee.

 

2.24         “Retirement” means
the Participant’s Termination of Employment after attaining either the normal
retirement age or the early retirement age as defined in the principal (as
determined by the Committee) tax-qualified plan of the Company or a Subsidiary,
if the Participant is covered by such plan, and if the Participant is not
covered by such a plan, then age 65, or age 55 with the accrual of 10 years of
service.

 

2.25         “Securities Act”
shall mean the Securities Act of 1933, as amended, and the rules and
regulations promulgated pursuant thereto.

 

2.26         “Subsidiary” means
any corporation, as currently defined in Section 424(f) of the
Code.  Unless otherwise indicated the
term “Company” shall hereinafter be deemed to include all Subsidiaries of the
Company which have adopted the Plan.

 

2.27         “Termination of
Employment” means the latest date on which a person ceases, for whatever
reason, to be an employee of the Company or a Subsidiary.  For determining whether and when a
Participant has incurred a Termination of Employment for cause, “cause” shall
mean any act or omission which permits the Company or a Subsidiary to terminate
the employment agreement or arrangement between the Participant and the Company
or a Subsidiary for cause as defined in such agreement or arrangement, or in
the event there is no such employment agreement or arrangement or the agreement
or arrangement  does not define the term “cause,”
then “cause” shall mean (a) any act or omission which the Company or a
Subsidiary believes is of a criminal nature, and the result of which the
Company or a Subsidiary believes is detrimental to the interests of the Company
or a Subsidiary; (b) the material breach of a fiduciary duty owing to the
Company or a Subsidiary, 

 

4

 

including without
limitation, fraud and embezzlement; or (c) conduct or the omission of
conduct on the part of the Participant which constitutes a material breach of
any statutory or common-law duty of loyalty to the Company or a Subsidiary.

 

ARTICLE
III

 

ADMINISTRATION

 

3.1           Committee Structure
and Authority.  The Plan shall be
administered by the Committee.  The
Committee shall be comprised of two or more disinterested members of the Board
of Directors selected by the Board.  A
majority of the Committee shall constitute a quorum at any meeting thereof
(including telephone conference) and the acts of a majority of the members
present, or acts unanimously approved in writing by the entire Committee
without a meeting, shall be the acts of the Committee.  A person shall be considered disinterested
for this purpose only if, at the time he exercises discretion in administering
the Plan, he is a “disinterested person” within the meaning of Rule 16b-3
under the Exchange Act.  The Board shall
have the authority to remove, replace or fill any vacancy of any member of the
Committee upon notice to the Committee and the affected member.  Any member of the Committee may resign upon
notice to the President of the Company or to the Board.  The Committee may allocate among one or more
of its members, or may delegate to one or more of its agents, such duties and
responsibilities as it determines. 
Subject to the provisions of this Plan, the Committee shall have full
and final authority in its discretion to:

 

(a)           determine from time to
time whether a person is an Eligible Employee as of any Grant Date;

 

(b)           determine the Option
Price;

 

(c)           determine the number of
shares of  Common Stock available as of
any Grant Date or subject to each Option;

 

(d)           determine any Grant
Date, Exercise Date and Option Period, and provide for all aspects of payroll
deduction, suspension or withdrawal;

 

(e)           determine, subject to
the Plan, the time or times and the manner when each Option shall be
exercisable and the duration of the Option Period;

 

(f)            provide for the
acceleration of the right to exercise an Option (or portion thereof);

 

(g)           prescribe additional
terms, conditions and restrictions in the Agreement and to provide for the
forms of Agreement to be utilized in connection with this Plan;

 

5

 

(h)           determine whether a
Participant has incurred a Disability;

 

(i)            determine what
securities laws requirements are applicable to the Plan, Options, and the
issuance of shares of Common Stock hereunder and request of a Participant that
appropriate action be taken;

 

(j)            cancel, with the
consent of the holder or as otherwise provided in the Plan or an Agreement,
outstanding Options;

 

(k)           require as a condition
of the exercise of an Option or the issuance or transfer of a certificate
of  Common Stock, the withholding from a
Participant of the amount of any federal, state or local taxes as may be necessary
in order for the Company or Subsidiary to obtain a deduction and as may be
otherwise required by law;

 

(l)            determine whether and
for what reason an individual has incurred a Termination of Employment or an
authorized leave of absence;

 

(m)          treat all or any portion
of any period during which a Participant is on an approved leave of absence as
a period of employment for purposes of accrual of his rights under an Option;

 

(n)           determine whether the
Company or any other person has a right or obligation to purchase Common Stock
from a Participant and, if so, the terms and conditions on which such Common
Stock is to be purchased;

 

(o)           determine the
restrictions or limitations on the transfer of 
Common Stock issued upon exercise of an Option;

 

(p)           determine whether an
Option is to be adjusted, modified or purchased, or become fully exercisable,
under Section 6.3 of the Plan or the terms of an Agreement;

 

(q)           adopt, amend and
rescind such rules and regulations as, in its opinion, may be advisable in
the administration of this Plan;

 

(r)            appoint and compensate
agents, counsel, auditors or other specialists to aid it in the discharge of
its duties;

 

(s)           correct any defect or
supply any omission or reconcile any inconsistency in the Plan or in any
Agreement relating to an Option, in such manner and to the extent the Committee
shall determine in order to carry out the purposes of the Plan; and

 

(t)            construe and interpret
this Plan, any Agreement, and take all other actions, and make all other
determinations and take all other actions deemed necessary or advisable for the
administration of this Plan.

 

6

 

In the absence of
the appointment of a Committee, the two or more members of the Board who have
served the longest period of time as members of the Board and who are
disinterested persons within the meaning of Rule 16b-3 of the Exchange Act
shall be the Committee.  No member of the
Committee, while serving as such, shall be eligible to receive any Option
hereunder, although membership on the Committee shall not affect or impair any
such member’s rights under any Option granted to him at a time when he was not
a member of the Committee.  A member
of the Committee shall not exercise any discretion respecting himself under the
Plan.

 

ARTICLE
IV

 

STOCK
PROVISIONS

 

4.1           Number of Shares
Subject to the Plan.  The stock
subject to the Options granted under this Plan shall be the Company’s Common
Stock.  Unless otherwise amended by the
Board and approved by the stockholders of the Company to the extent required by
law, a maximum number of 600,000
shares of Common Stock of the Company (or such number as may result following
any adjustment pursuant to Section 6.3) shall be reserved and available
for Options granted under the Plan.  The
shares issued with respect to Options under the Plan may be authorized and
unissued shares, or shares issued and reacquired by the Company.

 

4.2           Release of Shares.  If any shares of Common Stock available for
subscription are unsubscribed, or if any Option granted hereunder shall be
canceled, forfeited, expire or terminate for any reason without having been
exercised or realized in full, any shares of 
Common Stock subject to subscription or subject to such Option shall
again be available and may thereafter be granted or otherwise applied under
this Plan.

 

4.3           Restrictions on
Shares.  Shares of Common Stock
issued upon exercise of an Option shall be subject to the terms and conditions
specified herein and to such other terms, conditions and restrictions as the
Committee in its discretion may determine or provide in the Agreement.  The Company shall not be required to issue or
deliver any certificates for shares of Common Stock prior to (1) the
listing of such shares on any stock exchange (or other public market) on which
the Common Stock may then be listed (or regularly traded), (2) the
completion of any registration or qualification of such shares under federal or
state law, or any ruling or regulation of any governmental body which the
Committee, in its sole discretion, determines to be necessary or advisable, and
(3) the tendering to the Company of such documents and/or payments as the
Committee may deem necessary, including documents the Committee deems necessary
to satisfy any applicable withholding obligation in order for the Company or
another entity to obtain a deduction on its federal, state or local tax return
with respect to the exercise of an Option. 
The Company may cause any certificate for any share of  Common Stock to be delivered to be properly
marked with a legend or other notation reflecting the limitations on transfer
of such Common Stock as provided in this Plan or as the Committee may otherwise
require.  The Company has no obligation
to register 

 

7

 

shares of Common
Stock issued pursuant to the Plan. 
Fractional shares shall not be delivered, but shall be rounded to the
next lower whole number of shares.

 

4.4           Stockholder Rights.  No person shall have any rights of a
stockholder as to shares of Common Stock subject to an Option until, after
proper exercise of the Option or other action required, such shares shall have
been recorded on the Company’s official stockholder records as having been
issued or transferred.  No adjustment
shall be made for cash dividends or other rights for which the record date is
prior to the date such shares are recorded as issued or transferred in the
Company’s official stockholder records, except as provided in Section 6.3.

 

4.5           Stock Valuation.  If and when the value of Common Stock shall
be required to be determined, it shall be determined in accordance with the
following provisions by the Committee, as applicable:

 

(a)           if the
Common Stock is listed on a national securities exchange or on the Nasdaq
National Market (“NNM”) the closing price of the Common Stock on the relevant
date, as reported on the composite tape or by NNM, as the case may be;

 

(b)           if the Common Stock is
not listed on a national securities exchange or quoted on NNM, but is traded in
the over-the-counter market, the average of the closing bid and asked prices
for the Common Stock on the relevant date, or the most recent preceding day for
which such quotations are available; and

 

(c)           if, on the relevant
date, the Common Stock is not publicly traded or reported as described in (i) or
(ii), on the basis of the good faith determination of the Committee.

 

4.6           Custodian.  Shares of Common Stock purchased pursuant to
the Plan may be delivered to and held in the custody of such investment or
financial firm as shall be appointed by the Committee.  The custodian may hold in nominee or street
name certificates for shares purchased pursuant to the Plan, and may commingle
shares in its custody pursuant to the Plan in a single account without identification
as to individual Participants.  By
appropriate instructions to the custodian on forms to be provided for the
purpose, a Participant may from time to time obtain (a) transfer into the
Participant’s own name or into the name of the Participant and another
individual as joint tenants with the right of survivorship of all or part of
the whole shares held by the custodian for the Participant’s account and
delivery of such shares to the Participant; (b) transfer of all or part of
the whole shares held for the Participant’s account by the custodian to a
regular individual brokerage account in the Participant’s own name or in the
name of the Participant and another individual as joint tenants with the right
of survivorship, either with the firm then acting as custodian or with another
firm, or (c) sale of all or part of the whole shares held by the custodian
for the Participant’s account at the market price at the time the order is
executed and remittance of the net proceeds of the sale to the
Participant.  Upon termination of
participation in the Plan, and upon receipt of instructions from the
Participant, the shares held by the custodian for the account of the
Participant will be transferred and delivered to the Participant in accordance
with (a) above, transferred to a brokerage account in accordance with (b),
or sold in accordance with (c), above.

 

8

 

ARTICLE V

 

ELIGIBILITY;
OPTION PROVISIONS

 

5.1           Eligibility.  Except as herein provided, the persons who
shall be eligible to participate in the Plan as of any Grant Date shall be
those persons (and only those persons) who are Eligible Employees of the Company
(including a Subsidiary that has adopted the Plan) on a Grant Date.  Employees of any entity related to the
Company other than a corporation shall not be eligible to participate in the
Plan.

 

5.2           Grant of Options.  The Committee shall have authority to grant
Options under the Plan at any time or from time to time to all Eligible
Employees as of a Grant Date.  (To the
extent an Option is granted to any Eligible Employee of an entity on a relevant
date, all Eligible Employees of the entity shall be granted an Option to the
extent required by law.)  An Option shall
entitle the Participant to receive shares of Common Stock at the conclusion of
the Option Period, subject to the Participant’s satisfaction in full of any
conditions, restrictions or limitations imposed in accordance with the Plan or
an Agreement, including without limitation, payment of the Option Price.  Each Option granted under this Plan shall be
evidenced by an Agreement, in a form approved by the Committee, which shall
embody the terms and conditions of such Option and which shall be subject to
the express terms and conditions set forth in this Plan and to such other terms
and conditions as the Committee may deem appropriate.  The grant and exercise of Options hereunder
shall be subject to all applicable federal, state and local laws, rules and
regulations and to such approvals by any governmental or regulatory agency as
may be required.  As of any Grant Date,
each Eligible Employee shall be granted Options with the same rights and
privileges as any other Eligible Employee on that Grant Date, except the amount
of the Common Stock which may be purchased by any Participant under any Option
may bear a uniform relationship to the total compensation, or the basic or
regular rate of compensation, (as determined by the Committee) of all Eligible
Employees on that Grant Date, and the Option may establish a maximum amount of
Common Stock which may be purchased.

 

5.3           Option Period.  Each Agreement shall specify the period for
which the Option thereunder is granted, which shall be determined by the
Committee.  In no event shall the Option
Period extend beyond the period permitted under Section 423(b)(7) of
the Code.

 

5.4           Option Price.  Subject to the limits stated herein, the
Option Price per share at which shares of Common Stock may be acquired upon
exercise of an Option shall be determined by the Committee.  Unless otherwise specified by the Committee,
with respect to any Exercise Date, the Option Price shall not be less than the
lesser of eighty-five percent (85%) of the Fair Market Value of a share of
Common Stock (averaged over such period as the Committee may determine and as
permitted by law) on the applicable Grant Date and eighty-five percent (85%) of
the Fair Market Value of a share of Common Stock (averaged over such period as
the Committee may determine and as permitted by law) on the applicable Exercise
Date.  The Committee reserves the right
to increase 

 

9

 

the Option Price
by the value of any accretion to the amounts credited to an Account if the
Participant is credited with such accretion regardless of the method of
accounting for such accretion.

 

5.5           Contribution Rate.  If an Eligible Employee elects to
participate, the Participant shall file an Agreement with the Committee within
the time period designated by the Committee. 
The Committee may provide that the Agreement shall specify a dollar
amount determined by the Participant to be deducted each pay period, or the
Committee may permit only a specified amount. 
Such amount when deducted shall be credited to the Account and shall be
the Participant’s Contribution Rate. 
Such deductions shall begin as of the first regularly scheduled payroll
date on or after the later of the Grant Date and the date specified by the
Committee.  The Committee may establish
minimum and maximum amounts to be contributed and a date by when such Agreement
must be filed with the Committee.  Notwithstanding
the foregoing, in no event may more than $20,000 (or such other amount as may
be determined from time to time by the Committee) be deducted from the
Participant’s compensation (as defined by the Committee) for each Option Period
and the maximum number of shares which can be purchased by a Participant during
the Option Period shall not exceed such amount divided by eighty-five percent
of the Fair Market Value of a share of Common Stock on the applicable Grant
Date (as determined under Section 5.4). 
Such contributions will be held in the general funds of the Company, and
no interest shall accrue on any amounts held under this Plan, unless expressly
determined by the Committee.  If payroll
deductions are made by a Subsidiary, that corporation will promptly remit the
amount of the deduction to the Company. 
A Participant’s Contribution Rate, once established, shall remain in
effect during the Option Period unless the Committee decides, in its sole
discretion, to allow Participants to modify their Contribution Rate; provided,
however, that contributions shall be suspended or fully discontinued in order
to comply with Section 401(k) of the Code or for such other reasons
as the Committee in its sole discretion may determine, or if the Participant
shall request suspension or discontinuance. 
If a Participant requests to suspend payroll deductions, the Participant
may do so at such times and in such manner as the Committee may permit, and
previously deducted amounts shall be retained until the earlier of the Exercise
Date and the date the Participant totally discontinues payroll deductions and
requests a distribution of the Account. 
A Participant who has suspended contributions may recommence payroll
deductions at such time, if at all, as determined by the Committee.  If a Participant requests to totally
discontinue payroll deductions, the Participant may do so by providing written
notice to the Committee.  There shall be
paid to the Participant the value of the Participant’s Account as soon as
administratively possible and the Participant shall not receive any shares as
of the Exercise Date.

 

5.6           Purchase of Shares.  Subject to Sections 5.7, 5.8, 5.9, 5.10 and
5.11 on each Exercise Date, a Participant who has previously executed an
Agreement with respect to a specific Grant Date and made one or more payments
described in Section 5.5 shall be deemed to have exercised the Option to
the extent of the value of the Account, subject to the limit set forth in Section 5.5
with respect to the Option being exercised, and shall be deemed to have
purchased such number of full shares of Common Stock as set forth below,
subject to the limits of Sections 423(b)(3) and 423(b)(8) of the
Code.  The number of shares of Common
Stock to be purchased as of any Exercise Date shall be determined by dividing
the Account value by the Option Price per share of the Common Stock and the
value of the shares so purchased shall be charged to the Account.  If the total number of 

 

10

 

shares to be
purchased as of any Exercise Date by all Participants exceeds the number of
shares authorized under this Plan or made available by the Committee as to any
Exercise Date, a pro rata allocation of the available shares will be made among
all Participants authorizing such payroll deductions based on their Account
Value on the Exercise Date.  The Company
shall not be required to issue any fractional share hereunder.  Any value remaining in an Account of the
Participant shall be returned to the Participant and not applied to purchase
Common Stock.  Certificates of Common
Stock purchased hereunder may be held by the custodian as provided in Section 4.6.  Any Common Stock issued to the Participant
who is subject to reporting under Section 16 of the Exchange Act must be
held for six (6) months to the extent required by law to avoid liability
under the Exchange Act.  The Committee
may amend the Plan or any Agreement or provide in operation for Participants to
dispose of shares of Common Stock received upon the Exercise Date on or
immediately thereafter (which time may include any period during which the
Option is held) to the extent such change would not result in liability under Section 16
of the Exchange Act.

 

5.7           Cancellation of
Options.  Except as otherwise
provided in an Agreement, an Option shall cease to be exercisable and shall be
canceled on or after the expiration of the Option Period.

 

5.8           Terminated Employees.  Except as otherwise provided by the Committee
or in an Agreement, any Participant who incurs a Termination of Employment for
any reason, except death, Disability or Retirement, during the Option Period
shall cease to be a Participant, the Option shall be null and void on the date
of the Termination of Employment without notice to the Participant and the
balance of the Account of the Participant shall be distributed to him as soon
as administratively possible.

 

5.9           Deceased Employees.  If a Participant shall die during an Option
Period while an Eligible Employee, no further contributions by deduction from
regularly scheduled payments on behalf of the deceased Participant shall be
made, except that the Representative may make a single sum payment with respect
to the Option at any time on or before the Exercise Date equal to the amount
the Participant would have contributed as determined by the Committee for the
payroll periods remaining to the Exercise Date. 
The Representative may at any time prior to the Exercise Date request a
distribution of the Account.  If the
Representative does not request a distribution, the balance accumulated in the
deceased Participant’s Account shall be used to purchase shares of the  Common Stock on the previously mentioned
Exercise Date.

 

5.10         Disabled or Retired
Employees.  If a Participant incurs a
Termination of Employment due to Disability, or if a Participant incurs a
Termination of Employment due to Retirement, during an Option Period, no
further contributions by deduction from regularly scheduled payments on behalf
of the disabled or retired Participant shall be made, except that the
Participant may make a single sum payment with respect to the Option at any
time on or before the Exercise Date equal to the amount the Participant would
have contributed as determined by the Committee for the payroll periods
remaining to the Exercise Date.  The
Participant may at any time prior to the Exercise Date request a distribution
of the Account.  If the Participant does
not request a distribution of the Account, the balance accumulated in the
disabled or retired Participant’s Account shall be used to purchase shares of
the  Common Stock on the previously mentioned
Exercise Date.

 

11

 

5.11         Limitations.  Notwithstanding any other provision of this
Plan, in no event may a Participant (i) purchase under the Plan during a
calendar year Common Stock having a fair market value (determined at Grant
Date) of more than $25,000 or (ii) receive any rights to purchase stock
hereunder if he or she beneficially owns, immediately after such receipt, five
percent (5%) or more of the total voting power or value of all classes of stock
of the Company.

 

5.12         Nonassignability.  Neither the Option nor the Account shall be
assigned, transferred (except as herein provided), pledged, or hypothecated in
any way (whether by operation of law or otherwise), other than by will or the
laws of descent and distribution or pursuant to a domestic relations order
which would be a qualified domestic relations order as defined in the Code or
ERISA (if the Plan were described in the relevant Sections) but only to the
extent consistent with Section 423 of the Code.  Except as provided herein, the Option is
exercisable during a Participant’s lifetime only by the Participant or the
appointed guardian or legal representative of the Participant, and neither the
Option nor the Account shall be subject to execution, attachment, or similar
process.  Any attempted assignment,
transfer, pledge, hypothecation, or other disposition contrary to the
provisions hereof, and the levy of any attachment or similar process upon the
Option or the Account shall be null and void and without effect.  The Company shall have the right to terminate
the Option or the Account in the event of any such assignment, transfer,
pledge, hypothecation, other disposition of the Option or the Account, or levy
of attachment or similar process, by notice to that effect to the person then
entitled to exercise the Option; provided, however, that termination of the
Option hereunder shall not prejudice any rights or remedies which the Company
may have under an Agreement or otherwise.

 

ARTICLE
VI

 

GENERAL
PROVISIONS APPLICABLE TO THE PLAN

 

6.1           Termination of Plan.  To the extent required by law, this Plan
shall terminate on the last day of the fifteen
(15) year period commencing with the effective date or at such earlier
time as the Board may determine, and no Options shall be granted under the Plan
after that date.  Any Options outstanding
under the Plan at the time of its termination shall remain in effect until they
shall have been exercised, expired or otherwise canceled, settled or terminated
as provided herein or in an Agreement, and such outstanding Options shall not
be affected by such termination of the Plan. 
The provisions of the Plan in respect to the full and final authority of
the Committee under the Plan, other than the authority to grant Options, and in
respect of a Participant’s obligations respecting shares of  Common Stock received pursuant to the
exercise of an Option shall continue notwithstanding the termination of the
Plan.

 

6.2           Investment
Representation.  In the event the
disposition of  Common Stock acquired
upon the exercise of any Option is not covered by a then current registration
statement under the Securities Act and is not otherwise exempt from such
registration, the  Common Stock so
acquired shall be restricted against transfer to the extent required by the
Securities Act or regulations 

 

12

 

thereunder, and
each Agreement shall contain a requirement that, upon demand by the Company for
such representation, the individual exercising an Option shall state in
writing, as a condition precedent to each exercise of the Option, in whole or
in part, that the  Common Stock acquired
by such exercise is acquired for investment purposes only and not for resale or
with a view to distribution.  The
Committee may set forth in an Agreement such other terms and conditions
relating to the registration or qualification of the  Common Stock under federal or state securities
laws as it desires, including, in its discretion, the imposition of an obligation
on the Company to cause the  Common Stock
issued to a Participant to be registered under the Securities Act.

 

6.3           Effect of Certain
Changes.

 

(a)           Anti-Dilution.  In the event of any Company stock dividend,
stock split, combination or exchange of shares, recapitalization or other
change in the capital structure of the Company, corporate separation or
division of the Company (including, but not limited to, a split-up, spin-off,
split-off or distribution to Company stockholders other than a normal cash dividend),
sale by the Company of all or a substantial portion of its assets (as measured
on either a stand-alone or consolidated basis), reorganization, rights
offering, partial or complete liquidation, or any other corporate transaction
or event involving the Company and having an effect similar to any of the
foregoing, then the Committee may adjust or substitute, as the case may be, the
number of shares of Common Stock available for Options under the Plan, the
number of shares of Common Stock covered by outstanding Options, the exercise
price per share of outstanding Options, and any other characteristics or terms
of the Options as the Committee shall deem necessary or appropriate to reflect
equitably the effects of such changes to the Participants; provided, however,
that any fractional shares resulting from such adjustment shall be eliminated
by rounding to the next lower whole number of shares with appropriate payment
for such fractional share as shall reasonably be determined by the Committee.

 

(b)           Change in Control.  If there is a Change in Control of the
Company (as defined herein) or the Committee reasonably anticipates that a
Change in Control is likely to occur, then (1) the Committee may cause
each Option to be immediately exercised; (2) the Committee may provide
that any Option exercisable on the date of any such Change in Control may be
purchased by the Company in an amount equal to the excess, if any, of the
aggregate fair market value per share of Common Stock subject to the Option (or
portion thereof) over the aggregate Option Price of the shares subject to the
Option (or portion thereof) which the Committee determines to purchase; or (3) the
Company may provide for any combination of (1) and (2) above. For
purposes of this Section 6.3(b), the aggregate fair market value per share
of Common Stock subject to the Option that the Committee determines to purchase
shall be determined by the Committee by reference to the cash or fair market
value, determined by the Committee, of the securities,  property or other consideration receivable
pursuant to the Change in Control described in this Section 6.3(b).  The aggregate Option Price of the Common
Stock shall be determined by multiplying the number of such shares by the
Option Price.  If the event of a Change
in Control described in Section 6(c)(iii), and if the Option is
unexercised and the Committee does not exercise its 

 

13

 

discretion
hereunder to purchase the Option, then the Option shall be regarded as the
right to receive the securities, property, cash or other consideration
receivable by stockholders of the Company immediately prior to the Change in
Control described in Section 6(c)(iii). 
The provisions of this Section 6.3(b) shall be construed consistently
with the terms or conditions of any regulation or ruling respecting the status
of Options under Section 423 of the Code and the receipt of cash or other
consideration coincident with the cancellation of such Options, and in order to
provide the Participant the economic benefit of the Option without incurring
liability under Section 16(b) of the Exchange Act.

 

(c)           “Change in Control”
shall be deemed to have occurred on the first to occur of any of the following
events:

 

(i)            The acquisition by any
individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act (a “Person”) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty
percent (50%) or more of either (A) the then outstanding shares of common
stock of the Company (the “Outstanding Company Common Stock”) or (B) the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors (the “Outstanding
Company Voting Securities”); provided, however, that the
following acquisitions shall not constitute a Change in Control of the
Company:  (1) any acquisition
directly from the Company (excluding an acquisition by virtue of the exercise
of a conversion privilege unless such convertible securities were acquired
directly from the Company), (2) any acquisition by the Company, (3) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, or (4) any
acquisition by any corporation pursuant to a reorganization, merger or
consolidation, if, following such reorganization, merger or consolidation, the
conditions described in clauses (A) and (B) of subsection (iii) of
this Section are satisfied; or

 

(ii)           Individuals who, as of
the effective date of this Plan, constitute the Board of Directors of the
Company (the “Incumbent Board of the Company”) cease for any reason to
constitute at least a majority of the Board of Directors of the Company; provided,
however, that any individual becoming a director subsequent to the date
hereof whose election, or nomination for election by the Company’s
stockholders, was recommended or approved by a vote of at least a majority of
the directors then comprising the Incumbent Board of the Company shall be
considered as though such individual were a member of the Incumbent Board of
the Company, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of either an actual or threatened
election contest (as contemplated by Rule 14a-11 of Regulation 14A
promulgated under the Exchange Act) or other actual or threatened solicitation
of proxies or consents by or on behalf of a Person other than the Board of Directors
of the Company; or

 

14

 

(iii)          The consummation by the
Company of a reorganization, merger or consolidation, in each case, unless,
following such reorganization, merger or consolidation, (A) more than fifty
percent (50%) of, respectively, the then outstanding shares of common stock of
the corporation resulting from such reorganization, merger or consolidation and
the combined voting power of the then outstanding voting securities of such
corporation entitled to vote generally in the election of directors is then
beneficially owned, directly or indirectly, by all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such reorganization, merger or consolidation in
substantially the same proportions as their ownership, immediately prior to
such reorganization, merger or consolidation, of the Outstanding Company Common
Stock and Outstanding Company Voting Securities, as the case may be,  and (B) at least a majority of the
members of the board of directors of the corporation resulting from such
reorganization, merger or consolidation were members of the Board of Directors
of the Company at the time of the execution of the initial agreement providing
for such reorganization, merger or consolidation; or

 

(iv)          The consummation by the
Company of the sale or other disposition of all or substantially all of the
assets of the Company, other than to a corporation with respect to which,
following such sale or other disposition, (A) more than fifty percent
(50%) of, respectively, the then outstanding shares of common stock of such
corporation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Common Stock and Outstanding
Company Voting Securities immediately prior to such sale or other disposition
in substantially the same proportion as their ownership, immediately prior to
such sale or other disposition, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, and (B) at
least a majority of the members of the board of directors of such corporation
were members of the Board of Directors of the Company at the time of the
execution of the initial agreement or action of the Board providing for such
sale or other disposition of assets of the Company.

 

(d)           The Committee may, in
its discretion, grant to the Participant, in exchange for the surrender and
cancellation of the Option, a new Option on such terms and conditions as may be
determined by the Committee in accordance with the Plan.

 

6.4           Withholding.   Notwithstanding
any other provision hereof, as a condition of delivery or transfer of shares of
Common Stock, the Committee in its sole discretion may require the Participant
to pay to the Company, or the Committee may at its election withhold from any
wages, salary, or stock to be issued to a Participant pursuant to the exercise
of an Option, or other payment due to the Participant, an amount sufficient to
satisfy all present or estimated future federal, state and 

 

15

 

local withholding
tax requirements related thereto.  The
Participant may satisfy any requirement under the Plan or an Agreement with
respect to the Company’s federal, state or local tax withholding obligation by
requesting that the Committee withhold and not transfer or issue shares of
Common Stock with a Fair Market Value equal to such withholding obligation,
otherwise issuable or transferable to him pursuant to the exercise of that
portion of the Option.  An Agreement may
provide for shares of Common Stock to be delivered or withheld having a Fair
Market Value in excess of the minimum amount required to be withheld, but not
in excess of the amount determined by applying the Participant’s maximum
marginal tax rate.  Any right or election
of the Participant under this Section 6.4 shall be subject to the approval
of the Committee and shall be in compliance with Section 16 of the
Exchange Act.  The amount of required
withholding shall, at the election of the Participant, be at a specified rate
not less than the statutory minimum federal and state withholding rate and not
greater than the maximum federal, state and local marginal tax rate applicable
to the Participant and to the particular option exercise transaction.

 

6.5           No Company
Obligation.  The Company shall have
no duty or obligation to affirmatively disclose to a record or beneficial
holder of an Option, and such holder shall have no right to be advised of, any
material information regarding the Company at any time prior to, upon or in
connection with the exercise of an Option.

 

6.6           Committee Discretion.  The Committee may in its sole discretion
include in any Agreement an obligation that the Company purchase a Participant’s
shares of  Common Stock received upon the
exercise of an Option (including the repurchase of any unexercised Options
which have not expired), or may obligate a Participant to sell shares of  Common Stock to the Company upon such terms
and conditions as the Committee may determine and set forth in an
Agreement.  The provisions of this Article VI
shall be construed by the Committee in its sole discretion, and shall be
subject to such other terms and conditions as the Committee may from time to
time determine.

 

16

 

ARTICLE
VII

 

MISCELLANEOUS

 

7.1           Indemnification of
the Board and Committee.  In addition
to such other rights of indemnification as they may have and to the extent
permitted by law, the Company shall indemnify, defend and hold harmless the
Board, the Committee, the members of the Committee, the officers of the
Company, and any agent or representative selected by the Board or Committee
(collectively “indemnified party”) against the reasonable expenses, including,
without limitation, attorneys’ fees, actually and necessarily incurred in
connection with the defense of any action, suit or proceeding, or any threat
thereof, or in connection with any appeal therein, to which they or any of them
may be a party by reason of any act or omission in connection with the Plan or
any Option granted thereunder, and against all amounts paid by them in
settlement thereof (provided such settlement is approved by legal counsel
selected by the Company) or paid by them in satisfaction of a judgment in any
action, suit or proceeding, except in relation to matters as to which it shall
be adjudged in such action, suit or proceeding that such indemnified party is
liable for gross negligence or gross misconduct in the performance of his
duties; provided that within sixty (60) days after institution of any such
action, suit or proceeding the indemnified party may in writing elect to defend
the same at its sole expense, and if such election is made, the Company shall
have no further liability or obligations to the indemnified party under this
Section.  The provisions of this Section 7.1
shall in no way limit any other obligation or arrangements the Company may have
with regard to indemnifying an indemnified party.

 

7.2           Mitigation of Excise
Tax.  Subject to any agreement with a
Participant, if any payment or right accruing to a Participant under this Plan
(without the application of this Section 7.2), either alone or together
with other payments or rights accruing to the Participant from the Company or
an Affiliate (“Total Payments”) would constitute
a “parachute payment” (as defined in Section 280G
of the Code and regulations thereunder), such payment or right shall be reduced
to the largest amount or greatest right that will result in no portion of the
amount payable or right accruing under the Plan being subject to an excise tax
under Section 4999 of the Code or being disallowed as a deduction under Section 280G
of the Code.  The determination of
whether any reduction in the rights or payments under this Plan is to apply
shall be made by the Committee in good faith after consultation with the
Participant, and such determination will be conclusive and binding on the Participant.  The Participant shall cooperate in good faith
with the Committee in making such determination and providing the necessary
information for this purpose.  The
provisions of this Section 7.2 shall apply with respect to any Participant
only if, after reduction for any applicable federal excise tax imposed by Section 4999
of the Code and other federal income tax imposed by the Code, the Total
Payments accruing to such Participant would be less than the amount of the
Total Payments as reduced (i) if applicable, pursuant to the provisions of
this Section 7.2 and any similar provisions under any other plans of the
Company or any Affiliate  to mitigate the
applicable federal excise tax, and (ii) by federal income taxes (other
than such excise tax).

 

17

 

7.3           Interpretation.  Whenever necessary or appropriate in this
Plan and where the context so requires, the singular term and the related
pronouns shall include the plural and the masculine and feminine gender.

 

7.4           Governing Law.  The Plan and any Agreement shall be governed
by the laws of the State of Delaware (other than its laws respecting choice of
law).

 

7.5           Limitations on
Liability.  No liability whatever
shall attach to or be incurred by any past, present or future stockholders,
officers or directors, merely as such, of the Company under or by reason of any
of the terms, conditions or agreements contained in this Plan, in an Agreement
or implied from either thereof, and any and all liabilities of, and any and all
rights and claims against the Company, or any shareholder, officer or director,
merely as such, whether arising at common law or in equity or created by
statute or constitution or otherwise, pertaining to this Plan or to an
Agreement, are hereby expressly waived and released by every Participant as a
part of the consideration for any benefits provided by the Company under this
Plan.  A person who shall claim a right
or benefit under this Plan shall be entitled only to claim against the Company
for such benefit.

 

7.6           Validity.  If any provision of this Plan shall for any
reason be held to be invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provision hereof, and this Plan
shall be construed as if such invalid or unenforceable provision were omitted.

 

7.7           Assignment.  This Plan shall inure to the benefit of and
be binding upon the parties hereof and their respective successors and
permitted assigns.

 

7.8           Captions.  The captions and headings to this Plan are
for convenience of reference only and in no way define, limit or describe the
scope or the intent of this Plan or any part hereof, nor in any way affect this
Plan or any part hereof.

 

7.9           Amendments.  The Board of Directors may at any time amend,
waive, discharge or terminate the Plan even with prejudice to a
Participant.  The Board or the Committee
may amend, waive, discharge, terminate, modify, extend, replace or renew an
outstanding Option Agreement even with prejudice to a Participant; provided
such a change does not cause the Plan to fail to be a plan as described in Section 423
of the Code.

 

7.10         Entire Agreement.  This Plan and the Agreement constitute the
entire agreement with respect to the subject matter hereof and thereof,
provided that in the event of any inconsistency between the Plan and the
Agreement, the terms and conditions of this Plan shall control.

 

7.11         Rights with Respect to
Continuance of Employment.  Nothing
contained herein or in an Agreement shall be deemed to alter the at-will
employment relationship between the Company or a Subsidiary and a
Participant.  Nothing contained herein or
in an Agreement shall be construed to constitute a contract of employment
between the Company or a Subsidiary and a Participant.  The Company or, as applicable, the Subsidiary
and the Participant each continue to have the right to terminate the employment
relationship at any time for any reason. 
The company or Subsidiary shall 

 

18

 

have no obligation
to retain the Participant in its employ as a result of this Plan.  There shall be no inference as to the length
of employment hereby, and the Company or Subsidiary reserves the same rights to
terminate the Participant’s employment as existed prior to the individual becoming
a Participant in this Plan.

 

7.12         Options for Shares in
Substitution for Stock Options Granted by Other Corporations.  Options may be granted under the Plan from
time to time in substitution for stock options or stock appreciation rights
held by employees, directors or service providers of other corporations who are
about to become employees of the Company or a Subsidiary as the result of a
merger or consolidation of the employing corporation with the Company or a
Subsidiary, or the acquisition by the Company or a Subsidiary of the assets of
the employing corporation, or the acquisition by the Company or a Subsidiary of
the stock of the employing corporation, as the result of which it becomes a
designated employer under the Plan.  The
terms and conditions of the Options so granted may vary from the terms and
conditions set forth in this Plan at the time of such grant as the majority of
the members of the Committee may deem appropriate to conform, in whole or in
part, to the provisions of the Options in substitution for which they are
granted.

 

7.13         Procedure for Adoption.  Any Subsidiary of the Company may by
resolution of such Subsidiary’s board of directors, with the consent of the
Board of Directors and subject to such conditions as may be imposed by the
Board of Directors, adopt the Plan for the benefit of its employees as of the
date specified in the board resolution. 
The Board shall have the power to make such designation before or after
the Plan is approved by stockholders.

 

7.14         Procedure for Withdrawal.  Any Subsidiary which has adopted the Plan
may, by resolution of the board of directors of such Subsidiary, with the
consent of the Board of Directors and subject to such conditions as may be
imposed by the Board of Directors, terminate its adoption of the Plan; provided
such termination of adoption does not cause the Plan to fail to be a plan
described in Section 423 of the Code.

 

7.15         Expenses.  Expenses of the Plan, including the fees or
expenses incurred by the transfer agent in connection with the transfer of  Common Stock and brokerage fees or expenses
incurred in connection with the acquisition of Common Stock in connection with
the Plan or transfer to the Participant, shall be paid by the Company.  Any expense or fee associated with the Common
Stock, including, for example, fees or commissions in connection with the
disposition of shares or the withdrawal of such shares from the custodian,
shall be borne by the Participant.

 

19

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