Document:

ex_10-1.htm

    
      

    

    Exhibit 10.1

     

    GENERAL
RELEASE, SEPRATION AND SETTLEMENT AGREEMENT

    
      

      

    

     

    THIS AGREEMENT (“Agreement”)
is made this 9th day of
April, 2008 (the “Effective Date”) by and between Vince Molinaro (“Employee”)
and Internap Network Services Corporation (“INTERNAP”), and arises out of the
termination of Employee’s employment.

     

    WHEREAS, INTERNAP has
determined that it is in the best interests of INTERNAP to end Employee’s
employment as set forth herein; and

     

    WHEREAS, INTERNAP and Employee
have agreed to continue Employee’s employment with INTERNAP in order to allow
for certain transition services; and

     

    WHEREAS, Employee and INTERNAP
agree that Employee’s employment with INTERNAP will be terminated effective June
30, 2008 (“Termination Date”);

     

    NOW, THEREFORE, for and in
consideration of the foregoing, the mutual promises and covenants set forth
herein, and for other good and valuable consideration, the sufficiency and
receipt of which are hereby acknowledged, Employee and INTERNAP, intending to be
legally bound, agree as follows:

     

    The
foregoing recitals are hereby made a part of this Agreement and are incorporated
herein by reference.

     

    1)           Employee’s
employment with INTERNAP will be terminated effective on the Termination
Date.

     

    Employee
acknowledges and agrees that with payment of normal payroll through the
Termination Date, he will have received all compensation (whether as deferred
compensation, bonuses, or otherwise), employment benefits (including, but not
limited to, health insurance, dental insurance, life insurance, disability
insurance, 403(b) contributions, and profit-sharing payments), vacation pay,
sick pay, other paid leave, and any other alleged obligations relating to
Employee’s employment with INTERNAP through the Termination Date.

     

    As
consideration for Employee’s service to INTERNAP and for the promises made by
Employee in this Agreement, INTERNAP agrees to pay to Employee the sum of Three
Hundred Sixty Thousand Dollars ($360,000.00).  The parties agree that
this payment will be made to Employee in twelve (12) equal monthly installments
of Thirty Thousand Dollars ($30,000.00) less all lawful withholdings, beginning
on the first regular payroll date following the expiration of the seven (7) day
revocation period set forth in Paragraph 5(b) of this Agreement, provided that
Employee does not revoke the Agreement within that time
period.  Additionally, Employee may elect to continue health insurance
coverage under INTERNAP’s healthcare coverage plan commencing on the Termination
Date and continuing thereafter for a period of eighteen (18) months, pursuant to
Title X of the Consolidated Omnibus Budget Reconciliation Act of 1985
(COBRA).  In the event Employee elects to continue such health
insurance coverage, INTERNAP will pay for the direct and actual cost of the
coverage for a period of twelve (12) months.  For the remaining six
months, Employee shall remit to INTERNAP payment in full for such health
insurance coverage on a monthly basis, in advance.  Employee may, at
his written election, convert any life insurance coverage obtained through
INTERNAP to an individual plan in accordance with the terms of such
coverage.

     

    Employee
understands and agrees that the payments and covenants by INTERNAP referenced in
Paragraph 2 are in consideration for his promises in this Agreement and that he
otherwise is not entitled to this or any other payment for any reason on account
of his separation from employment with INTERNAP.  The parties further
understand and agree that the payment and promises referenced in Paragraph 2
shall fully and completely extinguish all obligations of INTERNAP to Employee,
including, but not limited to, severance pay, compensation (whether as deferred
compensation, bonuses, or otherwise), the provision of any employment benefits
(including, but not limited to, health insurance, dental insurance, life
insurance, disability insurance, 403(b) contributions, and profit-sharing
payments), vacation pay, sick pay, or any other alleged
obligations relating to Employee’s employment with INTERNAP whether such amounts
are claimed under contract, INTERNAP’s Employment Security Plan or
otherwise.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2)           Employee
agrees that all unvested INTERNAP equity shall expire on the Termination
Date.

     

    Employee
acknowledges INTERNAP is relying on Employee’s compliance with the terms of the
Covenants Agreement attached hereto as Schedule A.

     

    3)           In
consideration of the foregoing payments and covenants, Employee, for himself and
for his heirs, legal representatives, and assigns, hereby unconditionally and
absolutely releases, remises, acquits and forever discharges INTERNAP and its
heirs, executors, administrators, legal and personal representatives; former
and/or current owners, partners, officers, directors, employees, residents,
shareholders, managers, agents, attorneys, predecessors, successors, assigns,
trustees, purchasers, principals, and privies; past, present, and future parent,
subsidiary, and affiliated companies (both direct and indirect), divisions,
related trade names, and affiliated entities of any kind; insurers; and any
person or entity who may be jointly liable with INTERNAP or any of the aforesaid
persons or entities (hereinafter referred to as the “INTERNAP Releasees”) from
any and all claims, charges, suits, personal remedies, debts, dues, demands,
grievances, sums of money, rights, damages, liabilities, proceedings, actions,
and causes of action of any kind, nature, or character (whether known or
unknown, whether suspected or unsuspected, and whether at law, in equity, or
otherwise), which relate to and/or arise out of any fact or event whatsoever
from the beginning of time to and including the Effective Date of this
Agreement.  The foregoing release includes, but is not limited to,
those rights and personal remedies arising under:  (a) Title VII of
the Civil Rights Act of 1964, as amended; (b) the Civil Rights Act of 1991; (c)
42 U.S.C. § 1981; (d) the Age Discrimination in Employment Act; (e) the Fair
Labor Standards Act; (f) the Americans with Disabilities Act of 1990, as
amended; (g) the Rehabilitation Act of 1973, as amended; (h) any federal, state,
or local handicap, disability, or discrimination related act, regulation,
ordinance, statute, or executive order; and (i) any ordinance or statute
promulgated by any city, county, municipality, or other state
subdivision.  Furthermore, this release also includes, but is not
limited to, the following:  (1) claims for retaliatory or wrongful
discharge of any kind; (2) claims for unpaid or withheld wages, severance pay,
benefits, bonuses, and/or other compensation or benefits of any kind; (3) claims
for intentional or negligent infliction of emotional or mental distress or for
outrageous conduct; (4) claims for breach of duty, libel, slander, or
tortious conduct of any kind; (5) claims for interference with business
relationships, contractual relationships, or employment relationships of any
kind; (6) claims for breach of an implied covenant of good faith and fair
dealing; (7) claims for interference with and/or breach of contract (whether
express or implied, in fact or in law, oral or written); (8) claims for
attorneys’ fees, costs, or expenses; (9) claims for personal remedies from
alleged discrimination of any kind; (10) claims based upon the creation,
maintenance, or subjection to a hostile or offensive work environment; (11)
claims for constructive discharge; (12) claims for personal remedies from claims
of retaliation; and/or (13) any and all claims which Employee ever had or has
arising as a result of or connected in any way with his employment with and/or
his subsequent separation from employment with INTERNAP.  Employee
agrees never to file a lawsuit to seek damages or other personal relief from
INTERNAP based upon the claims being released under this Agreement.

     

           
4)           Employee
agrees never to file a lawsuit, claim, or cause of action seeking damages,
reinstatement, attorney fees or other personal relief against INTERNAP and/or
the INTERNAP Releasees based on the claims being released by his in this
Agreement.  Notwithstanding this waiver of remedies, above, nothing in
this Agreement shall be construed to prohibit Employee from (1) filing a charge
with the Equal Employment Opportunity Commission or (2) participating in any
investigation or proceeding conducted by the Equal Employment Opportunity
Commission, or (3) filing any charge or claim – including Worker’s Compensation
claims – not waiveable by law.

     

    Employee
knowingly relinquishes, waives and forever releases any and all claims or
personal remedies arising under the Age Discrimination in Employment Act, 29
U.S.C.§ 621, et
seq., related in any manner to his employment with INTERNAP or his
separation from such employment.  In making this release:

     

    Employee
acknowledges that he has twenty-one (21) days to review this Agreement prior to
signing it.  To the extent that Employee has decided to execute this
Agreement prior to the expiration of the twenty-one (21) day period, he
acknowledges that he has voluntarily executed the Election attached to this
Agreement as Exhibit 1.

     

    Employee
understands that he has a period of seven (7) days after signing this Agreement
to revoke it and not receive the monetary payments provided to his under the
terms of this Agreement.

     

    Employee
further understands that this Paragraph 5, pertaining specifically to claims or
rights arising under the Age Discrimination in Employment Act, does not cover
any rights, claims, or remedies, if any, that may arise after the date on which
this Agreement is executed, and does not affect his right to challenge the
validity of this release under the law.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Employee
acknowledges and agrees that the payments and other consideration made by
INTERNAP under Paragraph 2 of this Agreement are in addition to anything of
value to which Employee is already entitled.

    

     

    Employee
agrees to fully cooperate with reasonable requests by INTERNAP regarding any and
all matters associated with any investigations, claims or litigation involving
INTERNAP about which the Employee has knowledge or the ability to assist
INTERNAP in its defense for one (1) year following the date of this
Agreement.  Employee’s cooperation in such matters will include
answering questions by INTERNAP regarding the subject of any such
investigations, claims, or litigation, voluntarily participating in depositions,
providing affidavits and testimony if necessary, and assisting INTERNAP in
responding to data or discovery requests.  INTERNAP agrees to use
every effort to ensure the time periods in which Employee’s assistance is sought
do not conflict with Employee’s work or other business-related
obligations.  Employee agrees that any participation in the
above-referenced matters will be truthful and factual.  Employee will
be compensated at the rate of $150 per hour for his time associated with his
participation in the matters.  INTERNAP will reimburse Employee for
all reasonable out of pocket expenses incurred in providing such
cooperation.

     

    This
Agreement shall not in any way be construed as an acknowledgement or admission
by INTERNAP that it has acted wrongfully with respect to Employee or to any
other person or that Employee has any rights whatsoever against
INTERNAP.  INTERNAP specifically disclaims any liability to or
wrongful acts against Employee or any other person.

     

    From and
after the Effective Date of this Agreement, Employee will not provide any
disparaging information about INTERNAP or any of its current or former parties,
officers, directors, agents, employees, or representatives to any person or
entity who is not a party to this Agreement nor will he request or direct other
persons to do so, except to the extent required by:  (a) a court
order; (b) a lawfully issued subpoena, provided that Employee, to the extent
possible, provides INTERNAP with written notice of the existence of such
subpoena at least five (5) calendar days prior to such disclosure and agrees not
to contest any motion for protective order or motion to quash filed by INTERNAP;
or (c) otherwise by applicable law.

     

    Employee
will return to INTERNAP, not later than June 30, 2008, any property of INTERNAP,
including, but not limited to, computers, keys, identification cards, access
cards, credit cards, telephone cards, parking permits, pagers, business cards,
manuals, and/or business documents of INTERNAP.  Employee further
agrees that, should he discover that he does possess or otherwise has custody or
control of any property of INTERNAP, he will return, via hand-delivery or
overnight delivery, such property to:  VP HR, Internap Network
Services Corporation, 250 Williams Street, Suite E-100, Atlanta, GA 30303,
within ten (10) days of the discovery of the existence of such property of
INTERNAP.

     

    Any other
benefits not mentioned in this Agreement that Employee may be entitled to,
including, but not limited to, his rights to health insurance continuation under
Georgia law, shall be provided to Employee in accordance with the underlying
plan or document governing such benefits and/or applicable law.

     

    5)           Employee
acknowledges and agrees that, before signing this Agreement, he was advised and
is hereby advised in writing by INTERNAP to review it and consult with an
attorney of his choosing and that, to the extent Employee desired he has availed
himself of these opportunities.

     

                    6)           Employee
represents and agrees that he has carefully read and fully understands all of
the provisions of this Agreement.  Employee understands the final and
binding nature of the release and waiver of his rights specified herein, and he
knowingly and voluntarily enters into this Agreement with the intent to be bound
by it, and without any coercion or duress from any person or source
whatsoever.

     

    This
Agreement represents and contains the entire agreement and understanding between
the parties with respect to the terms and conditions of this Agreement, and
supersedes any and all prior and contemporaneous written and oral agreements,
understandings, representations, inducements, promises, warranties, and
conditions between the parties with respect to the terms and conditions of this
Agreement.  Except for the Covenants Agreement, attached hereto as
Schedule A, no other agreement, understanding, representation, inducement,
promise, warranty, or condition of any kind with respect to the terms and
conditions of this Agreement shall be relied upon by the parties unless
expressly incorporated herein.

     

    This
Agreement may not be amended or modified except by an agreement in writing
signed by all of the parties hereto.

     

    Any
failure of any party on one or more occasions to enforce or require the strict
keeping and performance of any of the terms and conditions of this Agreement
shall not constitute a waiver of such terms and conditions of this Agreement,
shall not constitute a waiver of such term or condition at any future time, and
shall not prevent any party from insisting on the strict keeping and performance
of such terms and conditions at a later time.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
provisions of this Agreement shall be deemed severable, and any invalidity or
unenforceability of any one or more of its provisions shall not affect the
validity or enforceability of the other provisions hereof.

     

    Each
party to this Agreement agrees and acknowledges that no presumption, inference,
or conclusion of any kind shall be made or drawn against the drafter or draft(s)
of this Agreement.  Each party to this Agreement also agrees and
acknowledges that he/it has contributed to the final version of this Agreement
through comments and negotiations.

     

    This
Agreement shall be binding upon and shall inure to the benefit of the parties
and each of their respective heirs, personal and legal representatives,
purchasers, executors, administrators, successors and
assigns.  Employee may not assign any rights or obligations hereunder
without INTERNAP’s prior written consent.

     

    It is
understood and agreed that the parties to this Agreement do hereby declare,
represent, acknowledge and warrant that:

     

    IN
EXECUTING THIS AGREEMENT, THE PARTIES HERETO RELY UPON THEIR OWN JUDGMENT,
BELIEF, AND KNOWLEDGE AS TO THE NATURE, EXTENT, AND EFFECT OF THE POTENTIAL
LIABILITY OF THE PARTIES AND OF THE LIABILITIES, WHETHER POTENTIAL OR OTHERWISE,
WHICH ARE BEING RELEASED BY THIS AGREEMENT AND THE PARTIES FURTHER ACKNOWLEDGE
AND AGREE THAT THEY ARE ENTERING INTO THIS AGREEMENT AND SIGNING THE SAME
VOLUNTARILY AND KNOWINGLY AND WITHOUT ANY DURESS, COERCION, INTIMIDATION, OR
FORCE; and

     

    The terms
of this Agreement are contractual and not mere recitals; and

     

    This
Agreement is deemed to have been entered into in the State of Georgia and shall
be construed and interpreted at all times and in all respects in accordance with
the laws of the State of Georgia without regard to the principles of conflicts
of laws, and jurisdiction and venue for any action relating in any manner to
this Agreement shall be in a court of competent jurisdiction in the State of
Georgia.

     

    This
Agreement may be executed in any number of counterparts, each of which shall be
deemed to be an original, and all of which shall be deemed as being the same
instrument.

     

    The
persons executing this Agreement do hereby declare, represent, acknowledge,
warrant, and agree that such person is duly and fully authorized to execute this
Agreement so as to legally bind Employee and INTERNAP.

     

    7)           Employees
understands that, if he signs this Agreement, he may change his mind and revoke
his acceptance within seven days after signing it by giving notice in writing to
INTERNAP at the following address:

    Internap
Network Services Corporation

    Attention:
Vice President, Human Resources (with copy to: Chief Executive
Officer)

    250
Williams Street, Suite E-100

    Atlanta,
Georgia 30303

    

           
8)           Employee
understands that this Agreement will not be effective or enforceable until the
seven-day revocation period has expired, but will become effective and
enforceable as soon as the revocation period ends.

    

     

    IN WITNESS WHEREOF, the
parties have executed this General Release and Separation Agreement as of the
date indicated below:

    
    

     

    
      	/s/
      Richard Dobb	 	/s/
      Vince Molinaro	 
	 	 	 	 
	WITNESS	 	Vince
    Molinaro	 
	 	 	 	 
	/s/
      Richard Dobb	 	 	 
	 	 	 	 
	 	 	INTERNAP NETWORK
      SERVICES CORPORATION	 
	 	 	 	 
	WITNESS	 	/s/
      Eric Suddith	 
	 	 	By: Eric
      Suddith	 
	 	 	Title: Vice
      President, Human Resources 	 
	 	 	Date:
      April 9, 2008	 

    

     

                                    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

                                                

     

    EXHIBIT
1

    

    ELECTION
TO EXECUTE PRIOR TO EXPIRATION OF

    TWENTY-ONE DAY CONSIDERATION
PERIOD

     

    I, Vince
Molinaro, understand that I have at least twenty-one (21) days within which to
consider and execute the attached General Release, Separation and Settlement
Agreement.  However, after having been advised of my right to consult
with an attorney and having exercised that right to the extent desired, I have
freely and voluntarily elected to execute the General Release and Separation
Agreement before the twenty-one (21) day period has expired.

    
    

     

    
      	 	 	/s/
      Vince Molinaro	 
	 	 	 	 
	 	 	 	 
	 	 	Date: April 9,
      2008	 

    

     

    
    

     

     

    
      	/s/
      VJM	 	 	 
	 	 	 	 
	[Employee's
      Initial]	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    

    

    SCHEDULE
A

    COVENANTS
AGREEMENT

    

    This
COVENANTS AGREEMENT (the
“Agreement”) is made this 9th day of April, 2008 (the “Effective Date”), between
Internap Network Services Corporation (“Internap”) and Vince
Molinaro (“You” or “Your”) (collectively, the “Parties”).1

    

    For and
in consideration of ten dollars, and other good and valuable consideration, the
receipt and sufficiency of which are acknowledged, You agree to the following
terms:

     

    
      	
              1.

            	 	
              Acknowledgments.  You
      acknowledge and agree that:

            

    

    
      	 	 	 
	 	(a)	Your
      position as an employee with Internap is a position of trust and
      responsibility with access to Confidential Information, Trade Secrets, and
      information concerning Employees, Customers, and Prospective Customers of
      Internap;
	 	 	 
	 	
              (b)

            	
              Customer
      and Prospective Customer lists, and Customer and Prospective Customer
      information, which have been compiled by Internap represents a material
      investment of Internap’s time and money

            
	 	 	 
	 	
              (c)

            	the
      names of Customers and Prospective Customers are considered Confidential
      Information of the Business which constitutes valuable, special, and
      unique property of Internap;
	 	 	 
	 	(d)	
              Customer
      and Prospective Customer lists, and Customer and Prospective Customer
      information, which have been compiled by Internap represents a material
      investment of Internap’s time and money;

            
	 	 	 
	 	
              (e)

            	Internap
      invested its time and money in the development of Your skills in the
      Business; and
	 	 	 
	 	
              (f)

            	the
      restrictions contained in this Agreement, including, but not limited to,
      the restrictive covenants set forth in Sections 2 – 6 below, are
      reasonable and necessary to protect the legitimate business interests of
      Internap, and they do not impair or infringe upon Your right to work or
      earn a living subsequent to Your employment with
  Internap.

    

     

    
      	
              2.

            	
              Trade Secrets and
      Confidential Information.

            

    

    
    

     

    
      	 	(a)	You
      represent and warrant that:
	 	 	 

    

    
      	
               
      

            	
              (i)

            	
              You
      are not subject to any legal or contractual duty or agreement that would
      prevent or prohibit You from performing Your duties for Internap or
      complying with this Agreement, and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              You
      are not in breach of any legal or contractual duty or agreement, including
      any agreement concerning trade secrets or confidential information, owned
      by any other person or entity.

            

    

    
       

      
        	 	(b)	
                You
      shall not:

              
	 	 	 

      

    

    
      	
               
      

            	
              (i)

            	
              use,
      disclose, or reverse engineer the Trade Secrets or the Confidential
      Information for any purpose except as authorized in writing by
      Internap;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              use,
      disclose, or reverse engineer (a) any confidential information or trade
      secrets of any former employer or third party, or (b) any works of
      authorship developed in whole or in part by You during any
      former employment or for any other party, unless authorized in writing by
      the former employer or third party;
or

            

    

    
      
      

      
         

        
          	 	 	 	 

        

        1
Unless otherwise indicated, all capitalized terms used in this Agreement are
defined in the “Definitions” set forth in Exhibit A.  Exhibit A is
incorporated by reference and is included in the definition of
“Agreement.”

      

    

     

     

     

    
      
        	/s/
      VJM	 	 	 
	 	 	 	 
	[Employee's
      Initial]	 	 	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
    

     

    
      	
               
      

            	
              (iii)

            	
              (a)
      retain Trade Secrets or Confidential Information, including any copies
      existing in any form (including electronic form), or (b) destroy, delete,
      or alter the Trade Secrets or Confidential Information without Internap’s
      prior written consent.

            

    

     

    
      	
            	
              (c)

            	
              The
      obligations under this Agreement
shall:

            

    

     

    
      	
               
      

            	
              (i)

            	
              with
      regard to the Trade Secrets, remain in effect as long as the information
      constitutes a trade secret under applicable law;
  and

            

    

     

    
      	
               
      

            	
              (ii)

            	
              with
      regard to the Confidential Information, remain in effect during the
      Restricted Period.

            

    

     

    
      
        	
              	
                (d)

              	
                The
      confidentiality, property, and proprietary rights protections available in
      this Agreement are in addition to, and not exclusive of, any and all other
      rights to which Internap is entitled under federal and state law,
      including, but not limited to, rights provided under copyright laws, trade
      secret and confidential information laws, and laws concerning fiduciary
      duties.

              

      

    

     

    3.           Non-Disclosure of Customer
or Prospective Customer Information.  During the Restricted
Period, You shall not, except as authorized by Internap, divulge or make
accessible to any person or entity (i) the names of Customers or Prospective
Customers, or (ii) any information contained in Customers’ or Prospective
Customers’ accounts.

     

    4.           Non-Solicitation of
Customers.  During the Restricted Period, You shall not,
directly or indirectly, solicit any Customer of Internap for the purpose of
selling or providing any products or services competitive
with the Business.  The restrictions set forth in this Section apply
only to Customers with whom You had Contact during the term of Your
employment.  Nothing in this Section shall be construed to prohibit
You from soliciting any Customer of Internap for the purpose of selling or
providing any products or services competitive with the Business: (i) which You
never sold or provided while employed by Internap; (ii) to a Customer that
explicitly severed its business relationship with Internap unless You, directly
or indirectly, caused or encouraged the Customer to sever the relationship; or
(iii) which products or services Internap no longer offers.

     

    5.           Non-Solicitation of
Prospective Customers.  During the Restricted Period, You shall
not, directly or indirectly, solicit any Prospective Customer of Internap for
the purpose of selling or providing any products or services competitive
with the Business.  The restrictions set forth in this Section apply
only to Prospective Customers with whom You had Contact during the last year of
Your employment with Internap (or during Your employment if employed less than a
year).  Nothing in this Section shall be construed to prohibit You
from soliciting any Prospective Customer of Internap for the purpose of selling
or providing any products or services competitive with the Business which
Internap no longer offers.

     

    6.           Non-Recruitment of
Employees.  During the Restricted Period, You shall not,
directly or indirectly, solicit, recruit, or induce any Employee to (i)
terminate his employment relationship with Internap, or (ii) work for any other
person or entity engaged in the Business.  The restrictions set forth
in this Section shall apply only to Employees (a) with whom You had Material
Interaction, or (b) You, directly or indirectly, supervised.

     

    7.           Post-Employment
Disclosure. During the Restricted Period, You shall provide a copy of
this Agreement to persons and/or entities for which You work or consult as an
owner, partner, joint venturer, employee or independent
contractor.  If, during the Restricted Period, You work or consult for
another person or entity as an owner, partner, joint venturer, employee or
independent contractor, You shall provide Internap with such person or entity’s
name, the nature of such person or entity’s business, Your job title, and a
general description of the services You will provide.

     

    8.           Injunctive Relief. If
You breach any portion of this Agreement, You agree that:

     

    
      	
            	
              (a)

            	
              Internap
      would suffer irreparable harm;

            

    

     

     

     

    
      
        	/s/
      VJM	 	 	 
	 	 	 	 
	[Employee's
      Initial]	 	 	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
        
          	
                	
                        
                    (b)

                  

                	
                        
                    it
      would be difficult to determine damages, and money damages alone would be
      an inadequate remedy for the injuries suffered by
      Internap;  and

                  

                

        

      

       

    

    
      
        	
              	
                (c)

              	
                if
      Internap seeks injunctive relief to enforce this Agreement, You shall
      waive and shall not (i) assert any defense that Internap has an adequate
      remedy at law with respect to the breach, (ii) require that Internap
      submit proof of the economic value of any Trade Secret or Confidential
      Information, or (iii) require Internap to post a bond or any other
      security.

              

      

    

     

    Nothing
contained in this Agreement shall limit Internap’s right to any other remedies
at law or in equity.

     

    9.           Independent
Enforcement.  Each of the covenants set forth in Sections 2 – 6
of this Agreement shall be construed as an agreement independent of (i) each of
the other covenants set forth in Sections 2 – 6, (ii) any other agreements, or
(iii) any other provision in this Agreement, and the existence of any claim or
cause of action by You against Internap, whether predicated on this Agreement or
otherwise, regardless of who was at fault and regardless of any claims that
either You or Internap may have against the other, shall not constitute a
defense to the enforcement by Internap of any of the covenants set forth in
Sections 2 – 6 of this Agreement.  Internap shall not be barred from
enforcing any of the covenants set forth in Sections 2 – 6 of this Agreement by
reason of any breach of (i) any other covenant set forth in Sections 2 – 6 of
this Agreement, (ii) any other part of this Agreement, or (iii) any other
agreement with You.

     

    10.            Attorneys’
Fees.  In the event of litigation relating to this Agreement,
Internap shall, if it is the prevailing party, be entitled to recover attorneys’
fees and costs of litigation in addition to all other remedies available at law
or in equity.

     

    11.           Waiver.  Internap’s
failure to enforce any provision of this Agreement shall not act as a waiver of
that or any other provision.  Internap’s waiver of any breach of this
Agreement shall not act as a waiver of any other breach.

     

    12.           Severability.  The
provisions of this Agreement are severable. If any provision is determined to be
invalid, illegal, or unenforceable, in whole or in part, the remaining
provisions and any partially enforceable provisions shall remain in full force
and effect.

     

    13.           Governing
Law.  The laws of the State of Georgia shall govern this
Agreement.  If Georgia’s conflict of law rules would apply another
state’s laws, the Parties agree that Georgia law shall still
govern.

     

    14.           No Strict
Construction.  If there is a dispute about the language of this
Agreement, the fact that one Party drafted the Agreement shall not be used in
its interpretation.

     

    15.           Entire
Agreement  This Agreement supersedes any prior communications,
agreements or understandings, whether oral or written, between the Parties
relating to the subject matter of this Agreement.

     

    16.           Successors and
Assigns.  This Agreement shall be assignable to, and shall
inure to the benefit of, Internap’s successors and assigns, including, without
limitation, successors through merger, name change, consolidation, or sale of a
majority of Internap’s stock or assets, and shall be binding upon
You.  You shall not have the right to assign Your rights or
obligations under this Agreement. The covenants contained
in this Agreement shall survive cessation of Your employment with Internap,
regardless of who causes the cessation or the reason for the
cessation.

     

    17.           Consent to Jurisdiction and
Venue.  You agree that any and all claims arising out of or
relating to this Agreement shall be brought in a state or federal court of
competent jurisdiction in Georgia. You consent to the personal jurisdiction of
the state and/or federal courts located in Georgia. You waive (a) any objection
to jurisdiction or venue, or (b) any defense claiming lack of jurisdiction or
improper venue, in any action brought in such courts.

     

    18.           Execution.  This
Agreement may be executed in one or more counterparts, including, but not
limited to, facsimiles. Each counterpart shall for all purposes be deemed to be
an original, and each counterpart shall constitute this Agreement.

     

     

    
       

      
        
          	/s/
      VJM	 	 	 
	 	 	 	 
	[Employee's
      Initial]	 	 	 

        

      

       

      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    19.          Affirmation.  You
acknowledge that You have carefully read this Agreement, You know and understand
its terms and conditions, and You have had the opportunity to ask Internap any
questions You may have had prior to signing this Agreement.

     

    IN
WITNESS WHEREOF, the Parties have signed this Agreement as of the Effective
Date.

     

    

     

    
      	Internap Network
      Services Corporation	 	Employee
      Signature	 
	 	 	 	 
	 	 	 	 
	By: /s/ Eric
      Suddith 	 	/s/
      Vince Molinaro	 
	Name: Eric
      Suddith 	 	Vince
    Molinaro	 
	Title: Vice
      President, Human Resources	 	 	 
	Address: Internap
      Network Services Corporation	 	Employee’s
      Address:	 
	250 Williams Street,
      Suite E-100 	 	4 Emmons
    Path	 
	Atlanta, Georgia
      30303  	 	Chester, New Jersey
      07930	 
	 	 	 	 

    

     

     

     

    
      
        	/s/
      VJM	 	 	 
	 	 	 	 
	[Employee's
      Initial]	 	 	 

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
A

     

    DEFINITIONS

     

    
      	
               
      

            	
              A.

            	
              “Business”
      shall mean the business of Internap Network Services Corporation,
      consisting of content delivery network services, IP services, colocation
      services and advertising services.

            	 

    

     

    
      	
               
      

            	
              B.

            	
              “Confidential
      Information” means (a) information of Internap, to the extent not
      considered a Trade Secret under applicable law, that (i) relates to the
      business of Internap, (ii) possesses an element of value to Internap,
      (iii) is not generally known to Internap’s competitors, and (iv) would
      damage Internap if disclosed, and (b) information of any third party
      provided to Internap which Internap is obligated to treat as confidential,
      including, but not limited to, information provided to Internap by its
      licensors, suppliers, or customers.  Confidential Information
      includes, but is not limited to, (i) future business plans, (ii) the
      composition, description, schematic or design of products, future products
      or equipment of Internap or any third party, (iii) communication systems,
      audio systems, system designs and related documentation, (iv) advertising
      or marketing plans, (v) information regarding independent contractors,
      employees, clients, licensors, suppliers, customers, or any third party,
      including, but not limited to, customer lists compiled by Internap, and
      customer information compiled by Internap, and (vi) information concerning
      Internap’s or a third party’s financial structure and methods and
      procedures of operation.  Confidential Information shall not
      include any information that (i) is or becomes generally available to the
      public other than as a result of an unauthorized disclosure, (ii) has been
      independently developed and disclosed by others without violating this
      Agreement or the legal rights of any party, or (iii) otherwise enters the
      public domain through lawful means.

            

    

     

    
      	
               
      

            	
              C.

            	
              “Contact”
      means any interaction with a Customer or Prospective Customer, which takes
      place in an effort to establish, maintain, and/or further a business
      relationship on behalf of Internap.

            

    

     

    
      	
               
      

            	
              D.

            	
              “Customer”
      means any person or entity to which Internap has sold its products or
      services.

            

    

     

    
      	
               
      

            	
              E.

            	
              “Employee”
      means any person who (i) is employed by Internap at the time Your
      employment with Internap ends, or (ii) was employed by Internap during the
      last year of Your employment with
Internap.

            

    

     

    
      	
               
      

            	
              F.

            	
              “Licensed
      Materials” means any materials that You utilize for the benefit of
      Internap, or deliver to Internap or Internap’s customers, who (i) do not
      constitute Work Product, (ii) are created by You or of which You are
      otherwise in lawful possession, and (iii) You
      may lawfully utilize for the benefit of, or distribute to, Internap or
      Internap’s customers.

            

    

     

    
      	
               
      

            	
              G.

            	
              "Material
      Interaction" means any interaction with an Employee, which relates or
      related, directly or indirectly, to the performance of Your duties or the
      Employee's duties for Internap.

            

    

     

    
      	
               
      

            	
              H.

            	
              “Prospective
      Customer” means any person or entity to which Internap has solicited to
      sell its products or services.

            

    

     

    
      	
               
      

            	
              I.

            	
              “Restricted
      Period” means the one-year period following the termination of Your
      employment with Internap.

            

    

     

    
      	
               
      

            	
              J.

            	
              “Trade
      Secrets” means information of Internap, and its licensors, suppliers,
      clients, and customers, without regard to form, including, but not limited
      to, technical or nontechnical data, a formula, a pattern, a compilation, a
      program, a device, a method, a technique, a drawing, a process, financial
      data, financial plans, product plans, a list of actual customers, clients,
      licensors, or suppliers, or a list of potential customers, clients,
      licensors, or suppliers which is not commonly known by or available to the
      public and which information (i) derives economic value, actual or
      potential, from not being generally known to, and not being readily
      ascertainable by proper means by, other persons who can obtain economic
      value from its disclosure or use, and (ii) is the subject of efforts that
      are reasonable under the circumstances to maintain its
      secrecy.

            

    

     

     

     

    
      
        	/s/
      VJM	 	 	 
	 	 	 	 
	[Employee's
      Initial]ex4-02.htm

    
      

    

    
       
EXHIBIT
4.02

    

    

    BENIHANA,
INC.

    2007
EQUITY INCENTIVE PLAN

    (amended
as of October 22, 2007)

                                                           

    

    1.  The
Plan.  This 2007 Equity Incentive Plan (the “Plan”) is intended
to encourage ownership of stock or stock equivalents of Benihana, Inc. (the
“Company”) by employees and non-employee directors of the Company and its
subsidiaries and to provide additional incentive for them to promote the success
of the business of the Company.

     

    2.  Types of
Awards.  The following types of awards (each, an “Award”) may
be granted: (a) options intended to qualify as incentive stock options (“ISOs”)
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”), (b) options not intended to qualify as ISOs (“NSOs” and
together with ISOs, “Options”), (c) stock appreciation rights (“SARs”), (d)
stock grants (“Stock Grants”), and (e) stock equivalent units (“Stock
Units”).

     

    3.  Stock Subject to the
Plan.  Subject to the provisions of Section 12 hereof, the
total number of shares of Class A Common Stock, par value $.10 per share, of the
Company (each, a “Share”) which may be issued pursuant to Awards granted under
the Plan is 750,000, of which a maximum of 550,000 may be issued upon the
exercise of ISOs.  Upon approval of the Plan, no further options will
be available for grant under any prior option plan including the 2003 Directors’
Stock Option Plan and the 2000 Employees Class A Common Stock Option
Plan.  Shares issued under the Plan may be authorized but unissued
Shares or Shares held as treasury stock.  The following Shares may be
used for further issuance of Awards under the Plan:  (i) Shares
which have been forfeited under a Stock Grant, (ii) Shares which are allocable
to the unexercised portion of an Option which has expired or been terminated,
and (iii) Shares which are allocable to an unexercised SAR (other than a Tandem
SAR) or an unexercised Stock Unit which has expired or been
terminated.  Each Share issuable upon exercise of an Option or subject
to a Stock Grant and each Share as to which an SAR or a Stock Unit is associated
shall be counted as one Share at the time of grant for purposes of the limit set
forth under this Section and the limit set forth under Section
6(b).  With respect to the combination of a Tandem SAR and an Option,
where the exercise of the Tandem SAR or the Option results in the cancellation
of the other, each Share associated with a Tandem SAR and the associated Option
will only count as one Share at the time of grant for purposes of the limits set
forth in this Section and in Section 6(b).

     

    4.  Administration.  The
Plan shall be administered by a committee (the “Committee”) composed of no fewer
than three (3) members of the Board of Directors of the Company (the “Board”)
each of whom meets the definition of “outside director” under the provisions of
Section 162(m) of the Code, the definition of “independence” under the
provisions of Section 4200(a)(15) of the NASDAQ Marketplace Rules (or the
comparable rule on any national securities exchange on which the Shares are
listed) and the definition of “non-employee director” under the provisions of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or rules
and regulations promulgated thereunder.  Except as otherwise provided
herein, the Committee shall have plenary authority in its discretion, among
other things, to determine to whom among the eligible persons Awards shall be
granted, the number of Shares covered by or associated with an Award, the terms
of each Award, and whether any Option is intended to be an ISO or an
NSO.  The Committee shall have plenary authority, subject to the
express provisions of the Plan, to interpret the Plan, to prescribe, amend and
rescind any rules and regulations relating to the Plan and to take such other
action in connection with the Plan as it deems necessary or
advisable.  The interpretation, construction and administration by the
Committee of any provisions of the Plan or of any Award granted hereunder shall
be final and binding on recipients of Awards hereunder.

     

    5.  Eligibility.  All
employees and non-employee directors of the Company and its subsidiaries
(including subsidiaries which become such after adoption of the Plan) shall be
eligible for Awards under the Plan.  In making the determination as to
employees to whom Awards shall be granted and as to the number of Shares to be
covered by or associated with such Awards, the Committee shall take into account
the duties of the respective employees, their present and potential
contributions to the success of the Company and such other factors as the
Committee shall deem relevant in connection with accomplishing the purpose of
the Plan.  The adoption of the Plan shall not be deemed to give any
employee any right to an Award, except to the extent and upon such terms and
conditions as may be determined by the Committee.  Neither the Plan
nor any Award granted hereunder is intended to or shall confer upon any Grantee
any right with respect to continuation of employment by the Company or any of
its subsidiaries.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

       

    

    6.  Certain Limits on
Awards.

     

    (a)  Limit on
ISOs.  The aggregate Fair Market Value (determined as of the
date of the Option grant) of Shares with respect to which ISOs granted to an
employee (whether under the Plan or under any other stock option plan of the
Company or its subsidiaries) become exercisable for the first time in any
calendar year may not exceed $100,000 (or such other amount as the Internal
Revenue Service may decide from time to time for purposes of Section 422 of the
Code). If any grant of Options is made to a Grantee in excess of the limits
provided in the Code, the excess shall automatically be treated as an
NSO.  Only employees of the Company or any of its subsidiaries shall
be eligible to receive the grant of an ISO.

     

    (b)  Limit on all
Awards.  The number of Shares with respect to which an employee
may be granted Awards under the Plan during any calendar year shall not exceed
200,000, subject to the provisions of Section 12.

     

    7.  Grant of Options to
Non-Employee Directors.

     

    (a)  Annual
Grant.  Commencing on or after the Effective Date, each person
who is serving as a non-employee director at the conclusion of any Annual
Stockholders Meeting of the Company shall be automatically granted an Option to
purchase 10,000 Shares.  Each Option granted pursuant to this Section
shall contain those terms applicable to an Option grant to a non-employee
director as set forth in Section 8 hereof and, subject to Section 8(g), shall
become exercisable as to 3,333 of the Shares covered thereby on the date which
is six months after the date of such grant, as to 3,333 of the Shares covered
thereby on the first anniversary of the grant of such Option and as to the
balance of such Shares on the second anniversary of the grant of such
Option.

     

    (b)  Termination of Grants Under
Existing Plan.  No options shall be granted pursuant to the
provisions of the 2003 Directors’ Stock Option Plan on or after the Effective
Date.

     

    8.  Terms and Conditions of
Options.  Options granted under the Plan shall be subject to
the following terms and conditions and such other terms and conditions as the
Committee may prescribe:

     

    (a)  Form of
Option.  Each Option granted pursuant to the Plan shall be
evidenced by an agreement (the “Option Agreement”) which shall clearly identify
the status of the Option granted (i.e., whether an ISO or an NSO) and which
shall be in such form as the Committee shall from time to time
approve.  The Option Agreement shall comply in all respects with the
terms and conditions of the Plan and may contain such additional provisions,
including, without limitation, restrictions upon the exercise of the Option as
the Committee shall deem advisable.

     

    (b)  Stated
Term.  The term of each Option granted to an employee shall be
for no more than ten years from the date of grant, or no more than five years in
the case of an ISO granted to a 10% Holder (as such term is defined in
Section 17), but may be for a lesser period or be subject to earlier
termination as provided by the Committee, the provisions of the Plan or the
Option Agreement.  The term of each Option granted to a non-employee
director shall be ten years from the date of grant, subject to earlier
termination as provided by the provisions of the Plan or the Option
Agreement.

     

    (c)  Option Exercise
Price.  Each Option shall state a per share option exercise
price, which shall not be less than 100% of the Fair Market Value of a Share on
the date of the Option grant, nor less than 110% of such Fair Market Value in
the case of an ISO granted to an individual who, at the time the Option is
granted, is a 10% Holder.  The Fair Market Value of Shares shall be
determined by the Committee based upon (i) the average of the high and low
prices of the Shares on a particular date or for a particular period as reported
by the National Market System of the National Association of Securities Dealers,
Inc., Automated Quotation System, or (ii) such other measure of fair market
value as may reasonably be determined by the Board (but consistent with the
rules under Section 409A of the Code).  “Fair Market Value” as used
throughout the Plan shall mean the fair market value as determined in accordance
with this Section.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

       

    

    (d)  Exercise of
Options.  An Option may be exercised from time to time as to
any part or all of the Shares as to which it is then exercisable in accordance
with its terms, provided, however, that an Option may not be exercised as to
fewer than 100 shares at any time (or for the remaining shares then
purchasable under the Option, if fewer than 100 shares).  In addition,
except as otherwise provided by the Committee, Options granted to employees may
not be exercised prior to the expiration of six months from the date of Option
grant.  The Option exercise price shall be paid in full at the time of
the exercise thereof in cash, provided that the Committee may in its discretion
(to the extent permitted by applicable law) permit the Grantee to pay the
exercise price (i) from cash proceeds received under a broker-assisted
contemporaneous sale of shares of Stock issued pursuant to such Option exercise,
or (ii) by delivering to the Company certificates (or submitting such
certificates by attestation) representing Shares with a Fair Market Value
(determined as of the date preceding the exercise date) equal to such exercise
price, provided that such Shares have been owned by the Grantee for six months
and subject to such other restrictions as may be specified by the Company, or
(iii) by a combination of cash, proceeds from the contemporaneous sale pursuant
to clause (i) above, and the delivery of Shares pursuant to clause (ii)
above.  The holder of an Option shall not have any rights as a
stockholder with respect to the Shares issuable upon exercise of an Option prior
to the date of exercise.

     

    (e)  Non-Transferability of
Options.  Except as provided in the following sentence, an
Option shall not be transferable other than by will or the laws of descent and
distribution and shall be exercisable during the lifetime of the Grantee only by
him or his legal representative.  The Committee shall have
discretionary authority to grant NSOs which will be transferable by the Grantee
by gift to members of the Grantee's immediate family, including trusts for the
benefit of such family members and partnerships or limited liability companies
in which such family members are the only owners.  A transferred NSO
shall be subject to all of the same terms and conditions of the Plan and the
Option Agreement as if such NSO had not been transferred.

     

    (f)  Termination of
Employment.

     

    (i)  Employment Termination
Date.  For purposes of the Plan, the date on which a Grantee
ceases to be employed by the Company or any of its subsidiaries for any reason
following the grant of an Award is referred to as the “Employment Termination
Date.”

     

    (ii)  Termination of
Employment..  Except as otherwise determined by the Committee,
the number of Shares which may be purchased upon the exercise of an Option
granted to an employee shall not exceed the number of Shares as to which such
Option was exercisable pursuant to the Plan and the Option Agreement as of the
Employment Termination Date.  Upon the termination of the employment
of a Grantee as a result of death, Disability or Retirement, the Option shall
remain exercisable by the Grantee, or by the Grantee's estate or heirs, for a
period of twelve (12) months following the Grantee’s Employment Termination Date
(or, if shorter, the remainder of the Option term as set forth in the Option
Agreement), provided that in the case of a termination as a result of Disability
or Retirement, such Grantee was employed by the Company or any of its
subsidiaries for a period of at least one year following the grant of the Option
and prior to the Employment Termination Date or as otherwise determined by the
Committee.  Except as otherwise set forth in the preceding sentence or
in the Option Agreement, an Option granted to an employee shall remain
exercisable for three (3) months (or, if shorter, the remainder of the Option
term as set forth in the Option Agreement) following such employee’s Employment
Termination Date.  For purposes of the previous sentence only, with
respect to NSO grants only, an employee who continues to provide services to the
Company as a non-employee director of the Company or as a consultant to the
Company following termination of his employment by the Company or its subsidiary
shall be deemed to continue to be an employee of the Company for the period of
such provision of services or consultancy.

     

    (iii)  Other
Limitations.  Notwithstanding anything to the contrary in this
Section 8(f), if the employment of a Grantee is terminated by the Company or any
of its subsidiaries for gross misconduct, including without limitation,
violations of applicable Company policies or legal or ethical standards, all
rights under the Option shall terminate on the Employment Termination
Date.  In addition to the foregoing, the Committee may impose such
other limitations and restrictions on the exercise of an Option following the
Employment Termination Date as it deems appropriate, including a provision for
the termination of an Option in the event of the breach by the Grantee of any of
his or her contractual or other obligations to the Company.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

       

    

    (iv)  Certain Definitions used
herein.  The term “Retirement” as used herein shall mean the
termination of the employment of a Grantee with the Company or its subsidiary
(other than as a result of death or Disability or willful misconduct or activity
deemed detrimental to the interests of the Company as determined by the Company)
on or after (A) the Grantee’s 65th
birthday or (B) the Grantee’s 55th
birthday if the Grantee has completed ten years of service with the Company or
any of its subsidiaries.  The term “Disability” as used herein shall
have the meaning ascribed to “permanent and total disability” as set forth in
Section 22(e)(3) of the Code.

     

    (g)  Termination of Service of a
Non-Employee Director.  Upon the termination of service to the
Company of a non-employee director for any reason, the number of Shares which
may be purchased upon the exercise of an Option granted to such director
pursuant to Section 7(a) shall not exceed the number of Shares as to which such
Option was exercisable pursuant to the Plan and the Option Agreement as of the
date on which the Grantee ceased to serve as a director of the
Company.  Except as provided in the following sentence, in the event
of the termination of service to the Company of a non-employee director, any
Option granted to such director pursuant to Section 7(a) shall remain
exercisable for three (3) months (or, if shorter, the remainder of the Option
term as set forth in the Option Agreement).  In the event of the
termination of service to the Company of a non-employee director as a result of
death, any option granted to such non-employee director pursuant to Section 7(a)
shall remain exercisable for twelve (12) months (or, if shorter, the remainder
of the Option term as set forth in the Option Agreement) by the Grantee's estate
or heirs.

     

    9.  Terms and Conditions of
Stock Appreciation Rights.  Stock Appreciation Rights, which
entitle a Grantee to receive the appreciation in the Fair Market Value of Shares
(a “SAR”), granted under the Plan shall be subject to the following terms and
conditions and such other terms and conditions as the Committee may
prescribe:

     

    (a)  Form of
SAR.  Each SAR granted pursuant to the Plan shall be evidenced
by an agreement (the “SAR Agreement”) which shall be in such form as the
Committee shall from time to time approve.  SARs may be granted alone
(a “Freestanding SAR”) or in combination with an Option (a “Tandem
SAR”).

     

    (b)  Grant and Term of
SARs.  The term of a Freestanding SAR shall be for no more than
ten years from the date of grant, but may be for a lesser period or be subject
to earlier termination as provided by the Committee or the provisions of the
Plan or SAR Agreement.  Any Tandem SAR must be granted at the same
time as the related Option is granted, and such Tandem SAR or applicable portion
thereof shall terminate and no longer be exercisable upon the termination or
exercise of the related Option, except that a Tandem SAR granted with respect to
less than the full number of Shares covered by the related Option shall not be
reduced until the number of Shares then issuable upon exercise of the related
Option is equal to or less than the number of Shares covered by the Tandem
SAR.

     

    (c)  SAR Exercise
Price.  Each SAR Agreement shall state a per Share exercise
price, which shall be not less than 100% of the Fair Market Value of a Share on
the date of the SAR grant.

     

    (d)  Exercise and Value of
SARs.  An SAR may be exercised from time to time to the extent
it is then exercisable in accordance with its terms.  No SAR shall be
exercised prior to the expiration of six months from the date of the SAR
grant.  Upon exercise of a Freestanding SAR, the holder will be
entitled to receive an amount in cash or Shares equal to the excess of the Fair
Market Value of a Share on the date of the exercise less the exercise price,
multiplied by the number of Shares covered by such Freestanding
SAR.  Upon the exercise of a Tandem SAR, the holder may surrender any
related Option or portion thereof which is then exercisable and elect to receive
in exchange therefor cash or Shares in an amount equal to the excess of the Fair
Market Value of such Share on the date of the exercise less the exercise price,
multiplied by the number of Shares covered by the related Option or the portion
thereof which is so surrendered.  Any Option related to a Tandem SAR
shall no longer be exercisable to the extent the related Tandem SAR has been
exercised.  No fractional Shares shall be issued
hereunder.

     

    (e)  Payment of
SAR.  Payment of an SAR shall be in the form of Shares, cash or
any combination of Shares and cash.  The form of payment upon exercise
of such a right shall be determined by the Committee either at the time of grant
of the SAR or at the time of exercise of the SAR.  All Shares issued
upon the exercise of an SAR shall be valued at the Fair Market Value of such
Shares at the time of the exercise of the SAR.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

       

    

    (f)  Transfer of
SARs.  All SARs shall be subject to the same restrictions on
transfer as are applicable to NSOs pursuant to Section 8(e), provided that
Tandem SARs will not be transferable separately from the related Option, and
provided further that Tandem SARs associated with ISOs will not be transferable
other than by will or the laws of descent and distribution.

     

    (g)  Termination of
Employment.  The terms and conditions relating to the treatment
of Options following a termination of employment as set forth in Section 8(f)
shall apply to SARs, and the holders of SARs shall have the same rights and be
subject to the same restrictions and limitations as Grantees pursuant to such
Section.

     

    (h)  No Dividends or Dividend
Equivalents.  Notwithstanding anything to the contrary herein,
no dividends or dividend equivalents will be payable with respect to outstanding
SARs.

    

    10.  Terms and Conditions
of Stock Grants.  Stock Grants awarded under the Plan shall be
made subject to the following terms and conditions and such other terms and
conditions as the Committee may prescribe:

     

    (a)  Form of
Grant.  Each Stock Grant shall be evidenced by an agreement
(the “Stock Grant Agreement”), in such form as the Committee shall approve,
which Agreement shall be subject to the terms and conditions set forth in this
Section 10 and shall contain such additional terms and conditions not
inconsistent with the Plan as the Committee shall prescribe.

     

    (b)  Number of Shares Subject to
an Award; Consideration.  The Stock Grant Agreement shall
specify the number of Shares subject to the Stock Grant.  A Stock
Grant shall be issued for such consideration as the Committee may determine and
may be issued for no cash consideration or for such minimum cash consideration
as may be required by applicable law.

     

    (c)  Conditions.  Each
Stock Grant shall be subject to such conditions as the Committee shall establish
(the “Conditions”), which may include, but not be limited to, conditions which
are based upon the continued employment of the Grantee over a specified period
of time, or upon the attainment by the Company of one or more measures of the
Company’s operating performance, such as earnings, revenues, financial return
ratios, total stockholder return or such other measures as may be determined by
the Committee (the “Performance Conditions”), or upon a combination of such
factors.  Measures of operating performance may be based upon the
performance of the Company or upon the performance of a defined business unit or
function for which the Grantee has responsibility or over which the Grantee has
influence.  The Grantee shall have a vested right to the Shares
subject to the Stock Grant to the extent that the Conditions applicable to such
Stock Grant have been satisfied.  A Grantee shall forfeit all of his
right, title and interest in and to any Shares subject to a Stock Grant in the
event that (and to the extent that) such Conditions are not
satisfied.

     

    (d)  Limitations on
Transferability.  As used herein, the term “Restricted Period”
means, with respect to any Shares subject to a Stock Grant, the period beginning
on the Award Date and ending on the date on which the Conditions applicable to
the Stock Grant have been met.  During the Restricted Period, the
Grantee will not be permitted to sell, transfer, exchange, pledge, assign or
otherwise dispose of any Shares subject to the Stock Grant (except for Shares as
to which the Grantee’s rights have vested); provided, however, that the
Committee in its discretion may permit the transfer by the Grantee by gift of
Shares to members of the Grantee’s immediate family, including trusts for the
benefit of such family members and partnerships or limited liability companies
in which such family members are the only owners, it being understood that any
Shares so transferred shall remain subject to all of the terms and conditions of
the Plan and the applicable Stock Grant Agreement as if the Shares had not been
transferred.  Except as provided in the preceding sentence, any
attempt to transfer Shares subject to a Stock Grant prior to the Conditions
applicable to such Stock Grant being satisfied shall be
ineffective.

     

    (e)  Termination of
Employment.  Upon termination of employment during the
Restricted Period for any reason, all Shares subject to a Stock Grant as to
which the Conditions have not lapsed or been satisfied or waived shall be
forfeited by the Grantee and shall be retired by the Company and shall acquire
the status of treasury shares as of the Employment Termination
Date.  The Committee may, in its sole discretion when it finds that
such an action would be in the best interests of the Company, accelerate or
waive in whole or in part any or all time-based or continuous service Conditions
or Performance Conditions with respect to all or part of such employee Grantee’s
Stock Grant, except as to any Stock Grant that is intended to constitute
“performance-based compensation” under Section 162(m) of the Code, and provided
the Committee may not exercise such discretion in connection with a termination
of employment for gross misconduct, including without limitation, violations of
applicable Company policies or legal or ethical standards.

     

    
      
         

      

      
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    (f)  Rights as a
Stockholder.  Except as otherwise provided herein or as the
Committee may otherwise determine, a Grantee of a Stock Grant shall have all of
the rights of a stockholder of the Company, including the right to vote the
Shares subject to a Stock Grant and to receive dividends and other distributions
thereon, provided that distributions in the form of Shares shall be subject to
all of the terms and conditions of the Plan and the Stock Grant
Agreement.

     

    11.  Terms and Conditions
of Stock Equivalent Units.  Stock Equivalent Units, which
entitle a Grantee to receive the Fair Market Value of the Shares upon the
Settlement Date (as defined below) subject to satisfaction of any applicable
Conditions (a “Stock Unit”), granted under the Plan shall be made subject to the
following terms and conditions and such other terms and conditions as the
Committee may prescribe:

     

    (a)  Form of
Grant.  Each Stock Unit shall be evidenced by an agreement (the
“Stock Unit Agreement”), in such form as the Committee shall approve, which
Agreement shall be subject to the terms and conditions set forth in this Section
11 and shall contain such additional terms and conditions not inconsistent with
the Plan as the Committee shall prescribe.

     

    (b)  Number of Shares Subject to
an Award; Consideration.  The Stock Unit Agreement shall
specify the number of Shares associated with the Stock Unit.  A Stock
Unit shall be issued for such consideration as the Committee may determine and
may be issued for no cash consideration or for such minimum cash consideration
as may be required by applicable law.

     

    (c)  Term and
Conditions.  The term of a Stock Unit shall be for no more than
ten years from the
date of grant, but may be for a lesser period or be subject to earlier
termination as provided by the Committee, the provisions of the Plan or the
Stock Unit Agreement.  Each Stock Unit shall be subject to such
Conditions as the Committee shall establish, including time-based and
Performance Conditions.

     

    (d)  Value and
Payment.  The value of a Stock Unit shall be determined based
on the Fair Market Value of a Share on the Settlement Date, multiplied by the
number of Shares associated with the Stock Unit.  The “Settlement
Date” shall be the earlier of the date designated as the “Payment Date” in the
Stock Unit Agreement or the Grantee’s Employment Termination
Date.  Settlement shall be completed by the Company as soon as
practicable, but no later than seventy-five (75) days following the Settlement
Date, subject however, to the provisions of
Section 11(h) below. Stock Units may be
settled in Shares or in cash or any combination of the two, or in any other form
of consideration as determined by the Committee.

    

    (e)  Limitations on
Transferability.  The Grantee may not assign the Stock Unit
Agreement or transfer, pledge, assign or otherwise dispose of any of his or her
rights under the Stock Unit Agreement, except that the Committee in its
discretion may permit the Grantee to transfer the Agreement by gift to members
of the Grantee’s immediate family, including trusts for the benefit of such
family members and partnerships or limited liability companies in which such
family members are owners, it being understood that any Agreement so transferred
shall remain subject to all of the terms and conditions of the Plan as if such
Agreement had not been transferred.  Except as provided in the
preceding sentence, any attempt to transfer the Stock Unit Agreement or transfer
the Grantee’s rights thereunder shall be ineffective.

     

    (f)  Other
Limitations.  If the employment of a Grantee is terminated by
the Company or any of its subsidiaries for gross misconduct, including without
limitation, violations of applicable Company policies or legal or ethical
standards, as determined by the Company, all rights under the Stock Unit shall
terminate on the date of such termination of employment.

     

    (g)  No Dividends or Dividend
Equivalents.  No dividends or dividend equivalents will be paid
with respect to Stock Units.

    

    
      
         

      

      
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    (h)  Delay in
Payment.  Notwithstanding anything to the contrary contained in
this Section 11, so long as a payment with respect to a Stock Unit constitutes
“non-qualified deferred compensation” for purposes of Section 409A of the Code,
no payment will be made with respect to any Stock Unit granted to any person
who, on the Settlement Date, is a “specified employee” of the Company or its
subsidiaries (within the meaning of Section 409A(a)(2)(B)(i) of the Code and as
determined by the Committee) on account of such Grantee’s Employment Termination
Date until the date which is six months after the Settlement Date (or, if
earlier than the end of such six-month period, the date of such Grantee’s
death).  In lieu of designating specified employees for purposes of
Section 409A of the Code, the Board in its discretion may identify all employees
of the Company and its subsidiaries as “specified employees” for purposes of
this provision.  The provisions of this Section 11(h) will not apply
to payments pursuant to a Stock Unit that occur pursuant to a Change in Control
(as defined in Section 12(c) below) or in connection with the dissolution of the
Company.

    

    12.  Changes
in Capitalization, Dissolutions and Change In Control.

     

    (a) Changes in
Capitalization.  In the event of a
change in the outstanding stock of the Company (including but not limited to
changes in either the number of shares or the value of shares) by reason of any
stock split, reverse stock split, dividend or other distribution (whether in the
form of shares, other securities or other property, but not including regular
cash dividends), extraordinary cash dividend, recapitalization, merger in which
the stockholders of the Company immediately prior to the merger continue to own
a majority of the voting securities of the successor entity immediately after
the merger, consolidation, split-up, spin-off, reorganization, combination,
repurchase or exchange of shares or other securities, or other similar corporate
transaction or event, if the Committee shall determine in its sole discretion
that, in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan, such transaction or event
equitably requires an adjustment in the aggregate number and/or class of Shares
available under the Plan (including for this purpose the number of Shares
available for issuance under the Plan or limit under Section 6(b) or in the
number, class and/or price of Shares subject to outstanding Options and/or
Awards), such adjustment shall be made by the Committee and shall be conclusive
and binding for all purposes under the Plan.  A participant holding an
outstanding award has a legal right to an adjustment that preserves without
enlarging the value of such award, with the terms and manner of such adjustment
to be determined by the Committee.

     

    (b)  Dissolution.  Notwithstanding
any other provision of this Plan or any Award Agreement entered into pursuant to
the Plan, to the extent permitted by applicable law, upon a dissolution of the
Company: (i) all Options and SARs then outstanding under the Plan shall become
fully exercisable as of the effective date of the dissolution; and (ii) all
Conditions of all Stock Grants and Stock Units then outstanding shall be deemed
satisfied as of the effective date of the dissolution.  In addition,
the Board may in its discretion cancel all or any portion of a Grantee’s then
outstanding Options, SARs and Stock Units, and in consideration of such
cancellation, shall cause to be paid to such Grantee pursuant to the plan of
dissolution, an amount in cash equal to the difference between the value of the
per Share consideration (as determined by the Board) received by the
stockholders of the Company for a Share under the plan of dissolution and any
applicable exercise price.  Options, SARs and Stock Units not
exercised or cancelled prior to or upon a dissolution shall be
terminated.

     

    (c)  Change in
Control.  In the event of a Change in Control as defined
below, the Board
(as constituted immediately prior to the effectiveness of such Change in
Control) may in its discretion make such arrangements as it determines
appropriate for each type of Award, including: (i) with respect to each
outstanding Option, SAR and Stock Unit (A) to cause Awards to be exchanged
or converted into substitute awards with respect to securities of any successor
entity having an equivalent value as the original Awards to be converted, or (B)
to provide that Awards shall become exercisable in full upon the effectiveness
of the Change in Control, or (C) to cancel all or any portion of such Award and
in consideration of such cancellation, shall cause to be paid to the Grantee
upon the effectiveness of such Change in Control, an amount equal to the
difference between the value of the per Share consideration (as determined by
the Board) received by the stockholders of the Company in the Change in Control
and any applicable exercise price; and (ii) with respect to outstanding Stock
Grants which are not fully vested and are subject solely to continuous service
Conditions, (A) to cause each Stock Grant to be exchanged or converted into a
stock grant covering securities of any successor entity having an equivalent
value to the unvested portion of the Stock Grant to be converted, or (B) to
provide that all such Conditions to which such Stock Grants are subject are
satisfied; and (iii) with respect to Stock Grants which are not fully
vested and are subject to Performance Conditions, (A) to cause each such Stock
Grant to be exchanged or converted into a stock grant covering securities of the
successor entity having an equivalent value to the unvested portion of the Stock
Grant and to amend the applicable Performance Conditions as appropriate,
including by converting such Performance Conditions to continuous service
Conditions, or (B) to provide that all such Conditions to which such Stock Grant
is subject are satisfied or waived.

     

    
      
         

      

      
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    For the
purpose of this Section 12(c), a “Change in Control” shall mean:

     

    (i)  The acquisition (other
than from the Company) by any individual, entity or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”) (excluding, for this purpose, the Company or its
affiliates, or any employee benefit plan of the Company or its affiliates which
acquires beneficial ownership of the Company) (a “Person”) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of more than 50% of either the then outstanding stock of the Company or the
combined voting power of the then outstanding voting securities of the Company
entitled to vote generally in the election of directors of the Company;
or

     

    (ii)  Individuals who, as of
September 18, 2007, constitute the Board (the “Incumbent Board”) cease for any
reason to constitute at least a majority of the Board; provided that any person
becoming a director subsequent to such date whose election or nomination for
election was approved by a vote of at least a majority of the directors then
comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding for this purpose any such
person whose initial assumption of office as a member of the Board occurs as a
result of an actual or threatened election contest or other actual or threatened
solicitation of proxies or consents; or

     

    (iii)  Consummation of a
reorganization, merger or consolidation, or sale or other disposition of all or
substantially all of the assets of the Company (a “Business Combination”), in
each case unless immediately following such Business Combination, persons and
entities who were the beneficial owners of at least 50% of the outstanding stock
of the Company immediately prior to such Business Combination beneficially own,
directly or indirectly, at least 50% of the combined voting power entitled to
vote generally in the election of directors of the corporation resulting from
such Business Combination.

     

    (d)  No Constraint on Corporate
Action.  Nothing in the Plan shall be construed (i) to
limit or impair or otherwise affect the Company’s right or power to make
adjustments, reclassifications, reorganizations or changes to its capital or
business structure, or to merge or consolidate, dissolve or sell or transfer all
or any part of its business or assets, or (ii) except as provided in Section 15,
to limit the right or power of the Company or any subsidiary to take any action
which such entity deems to be necessary or appropriate.

     

    (e)  Limitation on Adjustments
under Section 162(m).  Notwithstanding anything to the contrary
in this Section 12, no adjustments shall be made under this Section 12 with
respect to an Award to an employee covered under Section 162(m) of the Code to
the extent such adjustment would cause an Award intended to qualify as
“performance-based compensation” under that Section of the Code to fail to so
qualify.

     

    13.  Stockholder
Approval.  The Plan is subject to the approval by the
affirmative vote of a majority of the Shares present in person or represented by
proxy at a duly held meeting of the stockholders of the Company within twelve
months after the date of the adoption of the Plan by the Board (the date of
which approval is the “Effective Date”).  No Award granted under the
Plan shall vest or be exercisable prior to the Effective Date.  If the
Effective Date shall not occur on or before September 18, 2008, the Plan and all
then outstanding Awards made hereunder shall automatically terminate and be of
no further force and effect.

     

    14.  Term of
Plan.  The Plan, if approved by the Company’s stockholders,
will be effective September 18, 2007.  The Plan shall terminate on
September 17, 2017 and no Awards shall be
granted after such date, provided that the Board may at any time terminate the
Plan prior thereto. Except as provided in Section 12, the termination of the
Plan shall not affect the rights of Grantees under Awards previously granted to
them and all Awards shall continue in full force and effect after termination of
the Plan, except as such Awards may lapse or be terminated by the terms of the
Plan or the Award Agreement.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

       

    

    15.  Amendment of the
Plan.  The Board shall have complete power and authority to
modify or amend the Plan (including the forms of Award Agreements) from time to
time in such respects as it shall deem advisable; provided, however, that the
Board shall not, without approval by the affirmative vote of a majority of the
Shares present in person or represented by proxy at a duly held meeting of the
stockholders of the Company, (i) increase the maximum number of Shares which in
the aggregate are subject to Awards or which may be granted pursuant to Options
under the Plan (except as provided by Section 12), (ii) extend the term of the
Plan or the period during which Awards may be granted or exercised,
(iii) reduce the Option or SAR exercise price below 100% (110% in the case
of an ISO granted to a 10% Holder) of the Fair Market Value of the Shares
issuable upon exercise of the Option or to which the SAR relates, as applicable,
at the time of the grant, other than to change the manner of determining the
Fair Market Value thereof (consistent with the rules under Section 409A of the
Code), (iv) except as provided by Section 12, increase the maximum number
of Shares for which an employee may be granted an Award during any calendar year
under the Plan pursuant to Section 6(b), (v) materially increase the
benefits accruing to participants under the Plan, (vi) change the designation or
class of employees eligible to receive Awards under the Plan, or (vii) with
respect to Options which are intended to qualify as ISOs, amend the Plan in any
respect which would cause such Options to no longer qualify for ISO treatment
pursuant to the Code.  No amendment of the Plan shall, without the
consent of the Grantee, adversely affect the rights of such Grantee under any
outstanding Award Agreement.

     

    The Plan is intended to comply with the
requirements of Section 409A of the Code, without triggering the imposition of
any tax penalty thereunder.  To the extent necessary or advisable, the
Board may amend the Plan or any Award Agreement to delete any conflicting
provision and to add such other provisions as are required to fully comply with
the applicable provisions of Section 409A of the Code and any other legislative
or regulatory requirements applicable to the Plan.

     

    16.  Taxes.  The
Company may make such provisions as it deems appropriate for the withholding of
any income, employment or other taxes which it determines is required in
connection with any Award made under the Plan, including requiring the Grantee
to make a cash payment to the Company equal to the Company’s tax withholding
obligation or deducting such amount from any payment of any kind otherwise due
to the Grantee.  The Company may further require notification from the
Grantee upon any disposition of Shares acquired pursuant to the exercise of
Options granted hereunder.

     

    17.  Code References and
Definitions.  Whenever reference is made in the Plan to a
Section of the Code, the reference shall be to such section as it is now in
force or as it may hereafter be amended.  The term “subsidiary” shall
have the meaning given to the term “subsidiary corporation” by Section 424(f) of
the Code.  The terms “Incentive Stock Option” and “ISO” shall have the
meanings given to them by Section 422 of the Code.  The term “10%
Holder” shall mean any person who, for purposes of Section 422 of the Code,
beneficially owns more than 10% of the total combined voting power of all
classes of stock of the Company or of any subsidiary of the
Company.  The term “Grantee” means the holder of an Option, an SAR, a
Stock Grant or a Stock Unit granted hereunder.  The term “Award
Agreement” as used herein means an Option Agreement, SAR Agreement, Stock Grant
Agreement or Stock Unit Agreement.

     

    9

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