Document:

exv10w2

 

Exhibit 10.2

As of January 28, 2008

Centex Corporation

2728 N. Harwood. 12th Floor

12th Floor

Dallas, TX 75201

			
	Re:	 	     Request for Waiver — Revolving Credit Facility

Ladies and Gentlemen:

Centex Corporation, a Nevada corporation (“Borrower”), certain Lenders (“Lenders”), and Bank of
America, N.A., a national banking association, as Administrative Agent for the Lenders
(“Administrative Agent") and as an L/C Issuer, have entered into that certain Credit Agreement
dated as of July 1, 2005 (as modified, amended, renewed, extended, and restated from time to time,
the “Credit Agreement”). Capitalized terms used herein shall, unless otherwise indicated, have the
respective meanings set forth in the Credit Agreement.

The Credit Agreement requires that Borrower meet the following financial covenants (the “Financial
Covenants”) as of the end of each fiscal quarter of Borrower: Section 9.12(a) (Leverage Ratio) and
Section 9.12(b) (Minimum Tangible Net Worth). As a result of a recently modified interpretation of
the standards regarding determination of valuation allowances as set forth in FASB Statement No.
109, Accounting for Income Taxes (“FAS 109”), Borrower believes it may not have met one or more of
the Financial Covenants solely for the fiscal quarter ended December 31, 2007, and solely if it is
required to reduce its deferred tax assets by a valuation allowance under such modified
interpretation of FAS 109 (the “Financial Covenant Non-Compliance”). As a result, Borrower has
requested that Lenders waive any Potential Default or Event of Default arising solely as a result
of the Financial Covenant Non-Compliance.

By execution of this letter in the space provided below, Lenders hereby waive the existence of the
Financial Covenant Non-Compliance, any Potential Default or Event of Default created thereby,
subject to the following terms and conditions:

     (a) after giving effect to this waiver letter, all of the representations and warranties
contained in the Credit Agreement and the other Loan Documents are true and correct in all material
respects as of the date hereof as though made as of such date (unless they speak to a specific date
or are based on facts which have changed by transactions expressly contemplated or permitted by the
Credit Agreement);

     (b) after giving effect to this waiver letter, no Potential Default or Event of Default
exists;

     (c) this letter shall have been executed by Borrower and by Lenders
constituting the “Required Lenders;” and

Centex Waiver Letter:

Revolving Credit Facility

 

 

Centex Corporation

As of January 28, 2008

Page 2

     (d) Administrative Agent shall have received, for the benefit of
each Lender executing and delivering this letter, (i) a fee equal to the
product of (x) the amount of such Lender’s Commitment on the effective date of,
and after giving effect to, this Agreement, times (y) 0.05% and (ii) such other
fees and expenses in such amounts and at such times as heretofore set forth in
a letter agreement between Borrower, Administrative Agent and Banc of America
Securities LLC, and as otherwise required under the Credit Agreement.

By execution of this letter in the space provided below, Borrower ratifies and confirms that the
Credit Agreement and all other Loan Documents, and all renewals, extensions, and restatements of,
and amendments and supplements to, any of the foregoing, are and remain in full force and effect in
accordance with their respective terms.

The waiver hereby granted by Lenders does not (a) constitute a waiver or modification of any other
terms or provisions set forth in the Credit Agreement or any other Loan Document and shall not
impair any right that any Credit Party may now or hereafter have under or in connection with the
Credit Agreement or any other Loan Document, (b) impair any Credit Party’s rights to insist upon
strict compliance with the Credit Agreement, as amended or otherwise modified hereby, or the other
Loan Documents, and (c) does not extend to any other Loan Document. The Loan Documents continue to
bind and inure to Borrower and the Credit Parties and their respective successors and permitted
assigns.

This letter, when countersigned by all parties, shall be a “Loan Document” as defined and referred
to in the Credit Agreement and the other Loan Documents, and may be signed in any number of
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. This letter shall be governed by and construed in accordance with
the laws of the State of Texas.

THIS LETTER, THE CREDIT AGREEMENT, THE NOTES, AND THE OTHER LOAN DOCUMENTS EMBODY THE FINAL, ENTIRE
AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS,
REPRESENTATIONS, AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT MATTER
HEREOF, AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS OR DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE
PARTIES HERETO.

[Signature Pages Follow.]

Centex Waiver Letter:

Revolving Credit Facility

 

 

SIGNATURE PAGE TO WAIVER LETTER (FAS 109)

AMONG CENTEX CORPORATION, AS BORROWER,

EACH LENDER THAT IS A PARTY THERETO,

AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT AND AS AN L/C LENDER

(CREDIT AGREEMENT DATED AS OF JULY 1, 2005)

Please execute a copy of this letter in the space provided below to acknowledge your agreement to
the foregoing.

	 	 	 	 	 	 	 
	 	 	Sincerely,	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,

as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 
	/s/ Mark W. Lariviere
 

	 	 
	 

	 	 	Name: 	 Mark W. Lariviere 
	 	 
	 

	 	 	Title: 	 Senior Vice President 
	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,

as an L/C Issuer and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 
	/s/ Mark W. Lariviere
 

	 	 
	 

	 	 	Name: 	 Mark W. Lariviere 
	 	 
	 

	 	 	Title: 	 Senior Vice President 
	 	 
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.

as Co-Syndication Agent, as an L/C Issuer, and as

a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 
	/s/ Brian McDougal
 

	 	 
	 

	 	 
	Name: 	  Brian
McDougal 
	 	 
	 

	 	 	Title: 	Vice President 
	 	 
	 
	 	 	 	 	 	 
	 	 	THE ROYAL BANK OF SCOTLAND PLC,

as Co-Syndication Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By: 
	/s/ William McGinty
 

	 	 
	 

	 	 	Name: 	 William McGinty 
	 	 
	 
	 	 	Title: 	 Senior Vice President 
	 	 

 

 

SIGNATURE PAGE TO WAIVER LETTER (FAS 109)

AMONG CENTEX CORPORATION, AS BORROWER,

EACH LENDER THAT IS A PARTY THERETO,

AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT AND AS AN L/C LENDER

(CREDIT AGREEMENT DATED AS OF JULY 1, 2005)

	 	 	 	 	 
	 	CITICORP NORTH AMERICA, INC.,

as Co-Documentation Agent and as a Lender

 	 
	 	By:  	/s/ Marni McManus
 	 
	 	 	Name:  	Marni
McManus 
	 
	 	 	Title:  	Vice
President 
	 
	 
	 	BNP PARIBAS,

as a Senior Managing Agent, as an L/C Issuer, and as, a Lender

 	 
	 	By:  	/s/ Walter Kaplan
 	 
	 	 	Name:  	Walter
Kaplan 
	 
	 	 	Title:  	Managing
Director 
	 
	 
	 	 	 
	 	By:  	     /s/ Melissa Balley
 	 
	 	 	Name:  	Melissa
Balley 
	 
	 	 	Title:  	Vice
President 
	 
	 
	 	CALYON NEW YORK BRANCH,

as a Senior Managing Agent and as a Lender

 	 
	 	By:  	/s/ Robert Smith
 	 
	 	 	Name:  	Robert
Smith 
	 
	 	 	Title:  	Managing
Director 
	 
	 
	 	 	 
	 	By:  	     /s/ Brian Myers
 	 
	 	 	Name:  	Brian
Myers 
	 
	 	 	Title:  	Managing
Director 
	 

 

 

	 	 	 	 	 

SIGNATURE PAGE TO WAIVER LETTER (FAS 109)

AMONG CENTEX CORPORATION, AS BORROWER,

EACH LENDER THAT IS A PARTY THERETO,

AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT AND AS AN L/C LENDER

(CREDIT AGREEMENT DATED AS OF JULY 1, 2005)

	 	 	 	 	 
	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

as a Senior Managing Agent and as a Lender

 	 
	 	By:  	/s/ D. Barnell
 	 
	 	 	Name:  	D.
Barnell 
	 
	 	 	Title:  	VP
& Manager 
	 
	 
	 	LLOYDS TSB BANK PLC,

as a Managing Agent and as a Lender

 	 
	 	By:  	/s/ Nicholas J. Bruce
 	 
	 	 	Name:  	Nicholas
J. Bruce 
	 
	 	 	Title:  	Vice President & Manager
Risk Management & Business Support
B081 
	 
	 
	 	 	 
	 	By:  	     /s/ Jonathan Smith
 	 
	 	 	Name:  	Jonathan
Smith 
	 
	 	 	Title:  	Assistant Vice President
Risk Management & Business Support
S025 
	 
	 
	 	WACHOVIA BANK, NATIONAL ASSOCIATION,

as Managing Agent and a Lender

 	 
	 	By:  	/s/ Kevin M. Cole, I
 	 
	 	 	Name:  	Kevin
M. Cole, I 
	 
	 	 	Title:  	Assistant
Vice President 
	 
	 
	 	COMERICA BANK,

as an L/C Issuer and as a Lender

 	 
	 	By:  	/s/ Casey L. Stevenson
 	 
	 	 	Name:  	Casey
L. Stevenson 
	 
	 	 	Title:  	Vice
President 
	 
	 

 

 

SIGNATURE PAGE TO WAIVER LETTER (FAS 109)

AMONG CENTEX CORPORATION, AS BORROWER,

EACH LENDER THAT IS A PARTY THERETO,

AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT AND AS AN L/C LENDER

(CREDIT AGREEMENT DATED AS OF JULY 1, 2005)

	 	 	 	 	 
	 	BARCLAYS BANK PLC,

as Senior Managing Agent and a Lender

 	 
	 	By:  	/s/
Nicholas A. Bell
 	 
	 	 	Name:  	Nicholas
A. Bell 
	 
	 	 	Title:  	Director 
	 
	 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Douglas G. Paul
 	 
	 	 	Name:  	Douglas
G. Paul 
	 
	 	 	Title:  	Senior
Vice President 
	 
	 

	 	 	 	 	 
	 	UBS LOAN FINANCE LLC,

as a Lender

 	 
	 	By:  	/s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja
R. Otsa 
	 
	 	 	Title:  	Associate
Director 
	 
	 
	 	 	 
	 	By:  	     /s/ Mary E. Evans
 	 
	 	 	Name:  	Mary E. Evans 
	 
	 	 	Title:  	Associate Director 
	 
	 

	 	 	 	 	 
	 	CITY NATIONAL BANK, a national banking 

association, as a Lender

 	 
	 	By:  	/s/ Xavier Barrera
 	 
	 	 	Name:  	Xavier
Barrera 
	 
	 	 	Title:  	Vice
President 
	 

 

 

	 	 	 	 	 

SIGNATURE PAGE TO WAIVER LETTER (FAS 109)

AMONG CENTEX CORPORATION, AS BORROWER,

EACH LENDER THAT IS A PARTY THERETO,

AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT AND AS AN L/C LENDER

(CREDIT AGREEMENT DATED AS OF JULY 1, 2005)

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY,

as a Lender

 	 
	 	By:  	/s/ Morgan A. Lyons
 	 
	 	 	Name:  	Morgan
A. Lyons 
	 
	 	 	Title:  	Vice
President 
	 
	 

	 	 	 	 	 
	 	US BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/
Timothy N. Scheer
 	 
	 	 	Name:  	Timothy
N. Scheer 
	 
	 	 	Title:  	Vice
President 
	 
	 

	 	 	 	 	 
	 	COMPASS BANK,

as a Lender

 	 
	 	By:  	/s/ Key Coker
 	 
	 	 	Name:  	Key
Coker 
	 
	 	 	Title:  	Executive
Vice President 
	 
	 

	 	 	 	 	 
	 	MERRILL LYNCH BANK USA,

as a Lender

 	 
	 	By:  	/s/ David Millett
 	 
	 	 	Name:  	David
Millett 
	 
	 	 	Title:  	Vice
President 
	 
	 

 

 

SIGNATURE PAGE TO WAIVER LETTER (FAS 109)

AMONG CENTEX CORPORATION, AS BORROWER,

EACH LENDER THAT IS A PARTY THERETO,

AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT AND AS AN L/C LENDER

(CREDIT AGREEMENT DATED AS OF JULY 1, 2005)

	 	 	 	 	 
	 	NATIXIS (fka NATIXIS BANQUES POPULAIRES),

as a Lender

 	 
	 	By:  	/s/
Marie-Edith Dugény
 	 
	 	 	Name:  	Marie-Edith
Dugény 
	 
	 	 	Title:  	Managing
Director 
	 
	 
	 	 	 
	 	By:  	
/s/ Timothée Delpont
 	 
	 	 	Name:  	Timothée
Delpont 
	 
	 	 	Title:  	Associate 
	 
	 
	 	FIRST HAWAIIN BANK,

as a Lender

 	 
	 	By:  	/s/ George Leong
 	 
	 	 	Name:  	George
Leong 
	 
	 	 	Title:  	Vice
President 
	 
	 
	 	FIFTH THIRD BANK,

as a Lender

 	 
	 	By:  	/s/ Christopher C. Motley
 	 
	 	 	Name:  	Christopher
C. Motley 
	 
	 	 	Title:  	Vice
President 
	 
	 
	 	SOCIETE GENERALE,

as a Lender

 	 
	 	By:  	/s/ Milissa A. Goeden
 	 
	 	 	Name:  	Milissa
A. Goeden 
	 
	 	 	Title:  	Director
	 

 

 

	 	 	 	 	 

SIGNATURE PAGE TO WAIVER LETTER (FAS 109)

AMONG CENTEX CORPORATION, AS BORROWER,

EACH LENDER THAT IS A PARTY THERETO,

AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT AND AS AN L/C LENDER

(CREDIT AGREEMENT DATED AS OF JULY 1, 2005)

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Jeff V. Aycock
 	 
	 	 	Name:  	Jeff
V. Aycock, CFA 
	 
	 	 	Title:  	Senior
Banker 
	 
	 
	 	LASALLE BANK NATIONAL ASSOCIATION,

as a Lender

 	 
	 	By:  	/s/ Mark W. Lariviere
 	 
	 	 	Name:  	Mark
W. Lariviere 
	 
	 	 	Title:  	Senior Vice
President 
	 
	 
	ACCEPTED
AND AGREED TO THIS 28th DAY OF JANUARY, 2008:

	 
	 	CENTEX CORPORATION,

as Borrower

 	 
	 	By:  	/s/ Gail M. Peck
 	 
	 	 	Name:  	Gail
M. Peck 
	 
	 	 	Title:  	Vice
President & Treasurerexv10w1

 

    Exhibit 10.1

 

    BOOKHAM,
    INC.

    

 

    AMENDED
    AND RESTATED 2004 STOCK INCENTIVE PLAN

 

		
	
    1.  
	
    Purpose

 

    The purpose of this Amended and Restated 2004 Stock Incentive
    Plan (the “Plan”) of Bookham, Inc. a Delaware
    corporation (the “Company”), is to advance the
    interests of the Company’s stockholders by enhancing the
    Company’s ability to attract, retain and motivate persons
    who are expected to make important contributions to the Company
    and by providing such persons with equity ownership
    opportunities and performance-based incentives that are intended
    to align their interests with those of the Company’s
    stockholders. Except where the context otherwise requires, the
    term “Company” shall include any of Bookham,
    Inc.’s present or future parent or subsidiary corporations
    as defined in Sections 424(e) or (f) of the Internal
    Revenue Code of 1986, as amended, and any regulations
    promulgated thereunder (the “Code”) and any other
    business venture (including, without limitation, joint venture
    or limited liability company) in which Bookham, Inc. has a
    controlling interest, as determined by the Board of Directors of
    the Company (the “Board”).

 

		
	
    2.  
	
    Eligibility

 

    All of the Company’s employees, officers, directors,
    consultants and advisors are eligible to be granted options,
    stock appreciation rights, restricted stock and other
    stock-based awards (each, an “Award”) under the Plan.
    Each person who receives an Award under the Plan is deemed a
    “Participant”.

 

		
	
    3.  
	
    Administration
    and Delegation

 

    (a) Administration by Board of
    Directors.  The Plan will be administered by
    the Board. The Board shall have authority to grant Awards and to
    adopt, amend and repeal such administrative rules, guidelines
    and practices relating to the Plan as it shall deem advisable.
    The Board may construe and interpret the terms of the Plan and
    any Award agreements entered into under the Plan. The Board may
    correct any defect, supply any omission or reconcile any
    inconsistency in the Plan or any Award in the manner and to the
    extent it shall deem expedient to carry the Plan into effect and
    it shall be the sole and final judge of such expediency. All
    decisions by the Board shall be made in the Board’s sole
    discretion and shall be final and binding on all persons having
    or claiming any interest in the Plan or in any Award. No
    director or person acting pursuant to the authority delegated by
    the Board shall be liable for any action or determination
    relating to or under the Plan made in good faith.

 

    (b) Appointment of Committees.  To
    the extent permitted by applicable law, the Board may delegate
    any or all of its powers under the Plan to one or more
    committees or subcommittees of the Board (a
    “Committee”). All references in the Plan to the
    “Board” shall mean the Board or a Committee of the
    Board or the officers referred to in Section 3(c) to the
    extent that the Board’s powers or authority under the Plan
    have been delegated to such Committee or officers.

 

    (c) Delegation to Officers.  To the
    extent permitted by applicable law, the Board may delegate to
    one or more officers of the Company the power to grant Awards to
    employees or officers of the Company or any of its present or
    future subsidiary corporations and to exercise such other powers
    under the Plan as the Board may determine, provided that the
    Board shall fix the terms of the Awards to be granted by such
    officers (including the exercise price of such Awards, which may
    include a formula by which the exercise price will be
    determined) and the maximum number of shares subject to Awards
    that the officers may grant; provided further, however, that no
    officer shall be authorized to grant Awards to any
    “executive officer” of the Company (as defined by
    Rule 3b-7
    under the Securities Exchange Act of 1934, as amended (the
    “Exchange Act”)) or to any “officer” of the
    Company (as defined by
    Rule 16a-1
    under the Exchange Act).

    

    1

 

    (d) Awards to Non-Employee
    Directors.  Discretionary Awards to
    non-employee directors will only be granted and administered by
    a Committee, all of the members of which are independent as
    defined by Section 4200(a)(15) of the Nasdaq Marketplace
    Rules.

 

		
	
    4.  
	
    Stock
    Available for Awards

 

    (a) Number of Shares.  Subject to
    adjustment under Section 10, Awards may be made under the
    Plan for up to 19,000,000 shares of common stock,
    $.01 par value per share, of the Company (the “Common
    Stock”). If any Award expires or is terminated, surrendered
    or canceled without having been fully exercised or is forfeited
    in whole or in part (including as the result of shares of Common
    Stock subject to such Award being repurchased by the Company at
    the original issuance price pursuant to a contractual repurchase
    right) or results in any Common Stock not being issued, the
    unused Common Stock covered by such Award shall again be
    available for the grant of Awards under the Plan. Further,
    shares of Common Stock tendered to the Company by a Participant
    to exercise an Award shall be added to the number of shares of
    Common Stock available for the grant of Awards under the Plan.
    However, in the case of Incentive Stock Options (as hereinafter
    defined), the foregoing provisions shall be subject to any
    limitations under the Code. Shares issued under the Plan may
    consist in whole or in part of authorized but unissued shares or
    treasury shares.

 

    (b) Sub-limits.  Subject to
    adjustment under Section 10, the following sub-limits on
    the number of shares subject to Awards shall apply:

 

    (1) Section 162(m) Per-Participant
    Limit.  The maximum number of shares of Common
    Stock with respect to which Awards may be granted to any
    Participant under the Plan shall be 1,000,000 per calendar year.
    For purposes of the foregoing limit, the combination of an
    Option in tandem with a SAR (as each is hereafter defined) shall
    be treated as a single Award. The per-Participant limit
    described in this Section 4(b)(1) shall be construed and
    applied consistently with Section 162(m) of the Code or any
    successor provision thereto, and the regulations thereunder
    (“Section 162(m)”).

 

    (2) Limit on Awards other than Options and
    SARS.  The maximum number of shares with
    respect to which Awards other than Options and SARs may be
    granted shall be 17,000,000.

 

		
	
    5.  
	
    Stock
    Options

 

    (a) General.  The Board may grant
    options to purchase Common Stock (each, an “Option”)
    and determine the number of shares of Common Stock to be covered
    by each Option, the exercise price of each Option and the
    conditions and limitations applicable to the exercise of each
    Option, including conditions relating to applicable federal or
    state securities laws, as it considers necessary or advisable.
    An Option which is not intended to be an Incentive Stock Option
    (as hereinafter defined) shall be designated a
    “Nonstatutory Stock Option”.

 

    (b) Incentive Stock Options.  An
    Option that the Board intends to be an “incentive stock
    option” as defined in Section 422 of the Code (an
    “Incentive Stock Option”) shall only be granted to
    employees of Bookham, Inc., any of Bookham, Inc.’s present
    or future parent or subsidiary corporations as defined in
    Sections 424(e) or (f) of the Code, and any other
    entities the employees of which are eligible to receive
    Incentive Stock Options under the Code, and shall be subject to
    and shall be construed consistently with the requirements of
    Section 422 of the Code. The Company shall have no
    liability to a Participant, or any other party, if an Option (or
    any part thereof) that is intended to be an Incentive Stock
    Option is not an Incentive Stock Option or for any action taken
    by the Board pursuant to Section 11(f), including without
    limitation the conversion of an Incentive Stock Option to a
    Nonstatutory Stock Option.

 

    (c) Exercise Price.  The Board
    shall establish the exercise price of each Option and specify
    such exercise price in the applicable option agreement;
    provided, however, that the exercise price shall not be less
    than 100% of the Fair Market Value (as defined below) at the
    time that the Option is granted.

 

    (d) Duration of Options.  Each
    Option shall be exercisable at such times and subject to such
    terms and conditions as the Board may specify in the applicable
    option agreement; provided, however, that no Option will be
    granted for a term in excess of 10 years.

    

    2

 

    (e) Exercise of Option.  Options
    may be exercised by delivery to the Company of a written notice
    of exercise signed by the proper person or by any other form of
    notice (including electronic notice) approved by the Board
    together with payment in full as specified in Section 5(f)
    for the number of shares for which the Option is exercised.
    Shares of Common Stock subject to the Option will be delivered
    by the Company following exercise either as soon as practicable
    or, subject to such conditions as the Board shall specify, on a
    deferred basis (with the Company’s obligation to be
    evidenced by an instrument providing for future delivery of the
    deferred shares at the time or times specified by the Board).

 

    (f) Payment Upon Exercise.  Common
    Stock purchased upon the exercise of an Option granted under the
    Plan shall be paid for as follows:

 

    (1) in cash or by check, payable to the order of the
    Company;

 

    (2) except as the Board may otherwise provide in an option
    agreement, by (i) delivery of an irrevocable and
    unconditional undertaking by a creditworthy broker to deliver
    promptly to the Company sufficient funds to pay the exercise
    price and any required tax withholding or (ii) delivery by
    the Participant to the Company of a copy of irrevocable and
    unconditional instructions to a creditworthy broker to deliver
    promptly to the Company cash or a check sufficient to pay the
    exercise price and any required tax withholding;

 

    (3) when the Common Stock is registered under the
    Securities Exchange Act of 1934 (the “Exchange Act”),
    by delivery of shares of Common Stock owned by the Participant
    valued at their fair market value as determined by (or in a
    manner approved by) the Board (“Fair Market Value”),
    provided (i) such method of payment is then permitted under
    applicable law, (ii) such Common Stock, if acquired
    directly from the Company, was owned by the Participant for such
    minimum period of time, if any, as may be established by the
    Board in its discretion and (iii) such Common Stock is not
    subject to any repurchase, forfeiture, unfulfilled vesting or
    other similar requirements;

 

    (4) to the extent permitted by applicable law and by the
    Board, by (i) delivery of a promissory note of the
    Participant to the Company on terms determined by the Board, or
    (ii) payment of such other lawful consideration as the
    Board may determine; or

 

    (5) by any combination of the above permitted forms of
    payment.

 

    (g) Substitute
    Options.    In connection with a
    merger or consolidation of an entity with the Company or the
    acquisition by the Company of property or stock of an entity,
    the Board may grant Options in substitution for any options or
    other stock or stock-based awards granted by such entity or an
    affiliate thereof. Substitute Options may be granted on such
    terms as the Board deems appropriate in the circumstances,
    notwithstanding any limitations on Options contained in the
    other sections of this Section 5 or in Section 2.

 

    (h) Limitation on
    Repricing.  Unless such action is approved by
    the Company’s stockholders: (1) no outstanding Option
    granted under the Plan may be amended to provide an exercise
    price per share that is lower than the exercise price per share
    of such outstanding Option (other than adjustments pursuant to
    Section 10), (2) the Board may not cancel any
    outstanding option (whether or not granted under the Plan) and
    grant in substitution therefor new Awards under the Plan
    covering the same or a different number of shares of Common
    Stock and having an exercise price per share lower than the
    exercise price per share of the cancelled option, and
    (3) no outstanding Option granted under the Plan may be
    cancelled in exchange for the payment of cash consideration by
    the Company, except as provided for upon a Reorganization Event
    (as defined in Section 10) as contemplated by
    Section 10(b) or in connection with a similar change in
    corporate structure or change of control of the Company.

 

		
	
    6.  
	
    Director
    Options

 

    (a) Annual Grant.  On the date of
    each annual meeting of stockholders of the Company, the Company
    shall grant to each member of the Board of Directors of the
    Company who is both serving as a director of the Company
    immediately prior to and immediately following such annual
    meeting and who is not then an

    

    3

 

    employee of the Company or any of its subsidiaries, a
    Nonstatutory Stock Option to purchase 5,000 shares of
    Common Stock (subject to adjustment under Section 10).

 

    (b) Terms of Director
    Options.  Options granted under this
    Section 6 shall (i) have an exercise price equal to
    the closing sale price (for the primary trading session) of the
    Common Stock on the NASDAQ Stock Market or the national
    securities exchange on which the Common Stock is then traded on
    the trading date immediately prior to the date of grant (and if
    the Common Stock is not then traded on the NASDAQ Stock Market
    or a national securities exchange, the fair market value of the
    Common Stock on such date as determined by the Board),
    (ii) be immediately exercisable at the time of grant,
    (iii) expire on the earlier of 10 years from the date
    of grant or one year following cessation of service on the Board
    and (iv) contain such other terms and conditions as the
    Board shall determine.

 

    (c) Board
    Discretion.  Notwithstanding anything herein
    to the contrary, the Board retains the specific authority to
    from time to time (i) increase or decrease the number of
    shares subject to options granted under Section 6(a),
    (ii) to make additional grants of Nonstatutory Stock
    Options to members of the Board who are not employees of the
    Company or any subsidiary of the Company; and (iii) provide
    conditions or limitations (such as vesting limitations)
    applicable to the exercise of options granted under this
    Section 6.

 

		
	
    7.  
	
    Stock
    Appreciation Rights

 

    (a) General.  A Stock Appreciation
    Right, or SAR, is an Award entitling the holder, upon exercise,
    to receive an amount in cash or Common Stock or a combination
    thereof (such form to be determined by the Board) determined in
    whole or in part by reference to appreciation, from and after
    the date of grant, in the fair market value of a share of Common
    Stock. SARs may be based solely on appreciation in the fair
    market value of Common Stock or on a comparison of such
    appreciation with some other measure of market growth such as
    (but not limited to) appreciation in a recognized market index.
    The date as of which such appreciation or other measure is
    determined shall be the exercise date unless another date is
    specified by the Board in the SAR Award.

 

    (b) Grants.  SARs may be granted in
    tandem with, or independently of, Options granted under the Plan.

 

			
	 	    (1) 
	
    Tandem Award.  When SARs are expressly
    granted in tandem with Options, (i) the SAR will be
    exercisable only at such time or times, and to the extent, that
    the related Option is exercisable (except to the extent
    designated by the Board in connection with a Reorganization
    Event) and will be exercisable in accordance with the procedure
    required for exercise of the related Option; (ii) the SAR
    will terminate and no longer be exercisable upon the termination
    or exercise of the related Option, except to the extent
    designated by the Board in connection with a Reorganization
    Event and except that a SAR granted with respect to less than
    the full number of shares covered by an Option will not be
    reduced until the number of shares as to which the related
    Option has been exercised or has terminated exceeds the number
    of shares not covered by the SAR; (iii) the Option will
    terminate and no longer be exercisable upon the exercise of the
    related SAR; and (iv) the SAR will be transferable only
    with the related Option.

	 
	 	    (2) 
	
    Independent SARs.  A SAR not expressly
    granted in tandem with an Option will become exercisable at such
    time or times, and on such conditions, as the Board may specify
    in the SAR Award.

 

    (c) Exercise.  SARs may be
    exercised by delivery to the Company of a written notice of
    exercise signed by the proper person or by any other form of
    notice (including electronic notice) approved by the Board,
    together with any other documents required by the Board.

 

    (d) Limitation on
    Repricing.  Unless such action is approved by
    the Company’s stockholders: (1) no outstanding SAR
    granted under the Plan may be amended to provide a measurement
    price per share that is lower than the measurement price per
    share of such outstanding SAR (other than adjustments pursuant
    to Section 10), (2) the Board may not cancel any
    outstanding SAR (whether or not granted under the Plan) and
    grant in substitution therefor new Awards under the Plan
    covering the same or a different number of shares of Common
    Stock and having a measurement price per share lower than the
    measurement price per share of the cancelled SAR, and
    (3) no outstanding SAR granted under the Plan may be
    cancelled in exchange for the

    

    4

 

    payment of cash consideration by the Company, except as provided
    for upon a Reorganization Event (as defined in
    Section 10) as contemplated by Section 10(b) or
    in connection with a similar change in corporate structure or
    change of control of the Company.

 

		
	
    8.  
	
    Restricted
    Stock

 

    (a) General.  The Board may grant
    Awards entitling recipients to acquire shares of Common Stock,
    subject to the right of the Company to repurchase all or part of
    such shares at their issue price or other stated or formula
    price (or to require forfeiture of such shares if issued at no
    cost) from the recipient in the event that conditions specified
    by the Board in the applicable Award are not satisfied prior to
    the end of the applicable restriction period or periods
    established by the Board for such Award (each, a
    “Restricted Stock Award”).

 

    (b) Terms and Conditions.  The
    Board shall determine the terms and conditions of a Restricted
    Stock Award, including the conditions for repurchase (or
    forfeiture) and the issue price, if any. Any Restricted Stock
    Awards granted after January 25, 2008 that vest solely
    based on the passage of time shall be: (i) no more than
    one-third vested prior to the first anniversary of the date of
    grant (or, in the case of Awards to non-employee directors, if
    earlier, the date of the first annual meeting held after the
    date of grant), (ii) no more than two-thirds vested prior
    to the second anniversary of the date of grant (or, in the case
    of Awards to non-employee directors, if earlier, the date of the
    second annual meeting held after the date of grant) and
    (iii) the balance shall vest at a rate no more than ratably
    over the period from the second anniversary of the date of grant
    to the third anniversary of the date of grant (or, in the case
    of Awards to non-employee directors, if the date of the third
    annual meeting held after the date of grant is earlier than the
    third anniversary of the date of grant, the period from the
    second anniversary of the date of grant to the third annual
    meeting held after the date of grant). Any Restricted Stock
    Awards granted after January 25, 2008 that do not vest
    solely based on the passage of time shall not vest prior to the
    first anniversary of the date of grant (or, in the case of
    Awards to non-employee directors, if earlier, the date of the
    first annual meeting held after the date of grant).

 

    (c) Stock Certificates.  Any stock
    certificates issued in respect of a Restricted Stock Award shall
    be registered in the name of the Participant and, unless
    otherwise determined by the Board, deposited by the Participant,
    together with a stock power endorsed in blank, with the Company
    (or its designee). At the expiration of the applicable
    restriction periods, the Company (or such designee) shall
    deliver the certificates no longer subject to such restrictions
    to the Participant or if the Participant has died, to the
    beneficiary designated, in a manner determined by the Board, by
    a Participant to receive amounts due or exercise rights of the
    Participant in the event of the Participant’s death (the
    “Designated Beneficiary”). In the absence of an
    effective designation by a Participant, “Designated
    Beneficiary” shall mean the Participant’s estate.

 

    (d) Deferred Delivery of
    Shares.  The Board may, at the time any
    Restricted Stock Award is granted, provide that, at the time
    Common Stock would otherwise be delivered pursuant to the Award,
    the Participant shall instead receive an instrument evidencing
    the right to future delivery of Common Stock at such time or
    times, and on such conditions, as the Board shall specify. The
    Board may at any time accelerate the time at which delivery of
    all or any part of the Common Stock shall take place. The Board
    may also permit an exchange of unvested shares of Common Stock
    that have already been delivered to a Participant for an
    instrument evidencing the right to future delivery of Common
    Stock at such time or times, and on such conditions, as the
    Board shall specify.

 

		
	
    9.  
	
    Other
    Stock-Based
    Awards.

 

    Other Awards of shares of Common Stock, and other Awards that
    are valued in whole or in part by reference to, or are otherwise
    based on, shares of Common Stock or other property, may be
    granted hereunder to Participants (“Other Stock-Based
    Awards”), including without limitation Awards entitling
    recipients to receive shares of Common Stock to be delivered in
    the future. Such Other Stock-Based Awards shall also be
    available as a form of payment in the settlement of other Awards
    granted under the Plan or as payment in lieu of compensation to
    which a Participant is otherwise entitled. Other Stock-Based
    Awards may be paid in shares of Common Stock or cash, as the
    Board shall determine. Subject to the provisions of the Plan,
    the Board shall

    

5

 

    determine the conditions of each Other Stock-Based Awards,
    including any purchase price applicable thereto. At the time any
    Award is granted, the Board may provide that, at the time Common
    Stock would otherwise be delivered pursuant to the Award, the
    Participant will instead receive an instrument evidencing the
    Participant’s right to future delivery of the Common Stock.

 

		
	
    10.  
	
    Adjustments
    for Changes in Common Stock and Certain Other
    Events.

 

    (a) Changes in Capitalization.  In
    the event of any stock split, reverse stock split, stock
    dividend, recapitalization, combination of shares,
    reclassification of shares, spin-off or other similar change in
    capitalization or event, or any distribution to holders of
    Common Stock other than an ordinary cash dividend, (i) the
    number and class of securities available under this Plan,
    (ii) the sub-limits set forth in Section 4(b),
    (iii) the number and class of securities and exercise price
    per share of each outstanding Option and each Option issuable
    under Section 6, (iv) the share- and per-share related
    provisions of each Stock Appreciation Right, (v) the
    repurchase price per share subject to each outstanding
    Restricted Stock Award and (vi) the share- and
    per-share-related provisions of each outstanding Other
    Stock-Based Award, shall be appropriately adjusted by the
    Company (or substituted Awards may be made, if applicable) to
    the extent determined by the Board.

 

    (b) Reorganization Events.

 

    (1) Definition.  A
    “Reorganization Event” shall mean: (a) any merger
    or consolidation of the Company with or into another entity as a
    result of which all of the Common Stock of the Company is
    converted into or exchanged for the right to receive cash,
    securities or other property or is cancelled (b) any
    exchange of all of the Common Stock of the Company for cash,
    securities or other property pursuant to a share exchange
    transaction or (c) any liquidation or dissolution of the
    Company.

 

    (2) Consequences of a Reorganization Event on Awards
    Other than Restricted Stock Awards.  In
    connection with a Reorganization Event, the Board shall take any
    one or more of the following actions as to all or any
    outstanding Awards (other than Restricted Stock Awards) on such
    terms as the Board determines: (i) provide that Awards
    shall be assumed, or substantially equivalent Awards shall be
    substituted, by the acquiring or succeeding corporation (or an
    affiliate thereof), (ii) upon written notice to a
    Participant, provide that the Participant’s unexercised
    Options or other unexercised Awards shall become exercisable in
    full and will terminate immediately prior to the consummation of
    such Reorganization Event unless exercised by the Participant
    within a specified period following the date of such notice,
    (iii) provide that outstanding Awards shall become
    realizable or deliverable, or restrictions applicable to an
    Award shall lapse, in whole or in part prior to or upon such
    Reorganization Event, (iv) in the event of a Reorganization
    Event under the terms of which holders of Common Stock will
    receive upon consummation thereof a cash payment for each share
    surrendered in the Reorganization Event (the “Acquisition
    Price”), make or provide for a cash payment to a
    Participant equal to (A) the Acquisition Price times the
    number of shares of Common Stock subject to the
    Participant’s Options or other Awards (to the extent the
    exercise price does not exceed the Acquisition Price) minus
    (B) the aggregate exercise price of all such outstanding
    Options or other Awards, in exchange for the termination of such
    Options or other Awards, (v) provide that, in connection
    with a liquidation or dissolution of the Company, Awards shall
    convert into the right to receive liquidation proceeds (if
    applicable, net of the exercise price thereof) and (vi) any
    combination of the foregoing.

 

    For purposes of clause (i) above, an Option shall be
    considered assumed if, following consummation of the
    Reorganization Event, the Option confers the right to purchase,
    for each share of Common Stock subject to the Option immediately
    prior to the consummation of the Reorganization Event, the
    consideration (whether cash, securities or other property)
    received as a result of the Reorganization Event by holders of
    Common Stock for each share of Common Stock held immediately
    prior to the consummation of the Reorganization Event (and if
    holders were offered a choice of consideration, the type of
    consideration chosen by the holders of a majority of the
    outstanding shares of Common Stock); provided, however, that if
    the consideration received as a result of the Reorganization
    Event is not solely common stock of the acquiring or succeeding
    corporation (or an affiliate thereof), the Company may, with the
    consent of the acquiring or succeeding corporation, provide for
    the consideration to be received upon the

    

    6

 

    exercise of Options to consist solely of common stock of the
    acquiring or succeeding corporation (or an affiliate thereof)
    equivalent in fair market value to the per share consideration
    received by holders of outstanding shares of Common Stock as a
    result of the Reorganization Event.

 

    To the extent all or any portion of an Option becomes
    exercisable solely as a result of clause (ii) above, the
    Board may provide that upon exercise of such Option the
    Participant shall receive shares subject to a right of
    repurchase by the Company or its successor at the Option
    exercise price; such repurchase right (x) shall lapse at
    the same rate as the Option would have become exercisable under
    its terms and (y) shall not apply to any shares subject to
    the Option that were exercisable under its terms without regard
    to clause (ii) above.

 

    (3) Consequences of a Reorganization Event on
    Restricted Stock Awards.  Upon the occurrence
    of a Reorganization Event other than a liquidation or
    dissolution of the Company, the repurchase and other rights of
    the Company under each outstanding Restricted Stock Award shall
    inure to the benefit of the Company’s successor and shall
    apply to the cash, securities or other property which the Common
    Stock was converted into or exchanged for pursuant to such
    Reorganization Event in the same manner and to the same extent
    as they applied to the Common Stock subject to such Restricted
    Stock Award. Upon the occurrence of a Reorganization Event
    involving the liquidation or dissolution of the Company, except
    to the extent specifically provided to the contrary in the
    instrument evidencing any Restricted Stock Award or any other
    agreement between a Participant and the Company, all
    restrictions and conditions on all Restricted Stock Awards then
    outstanding shall automatically be deemed terminated or
    satisfied.

 

		
	
    11.  
	
    General
    Provisions Applicable to Awards

 

    (a) Transferability of
    Awards.  Except as the Board may otherwise
    determine or provide in an Award, Awards shall not be sold,
    assigned, transferred, pledged or otherwise encumbered by the
    person to whom they are granted, either voluntarily or by
    operation of law, except by will or the laws of descent and
    distribution or, other than in the case of an Incentive Stock
    Option, pursuant to a qualified domestic relations order, and,
    during the life of the Participant, shall be exercisable only by
    the Participant. References to a Participant, to the extent
    relevant in the context, shall include references to authorized
    transferees. Notwithstanding anything to the contrary in this
    Section 11(a), no Award may be transferred by a Participant
    to a third party for consideration.

 

    (b) Documentation.  Each Award
    shall be evidenced in such form (written, electronic or
    otherwise) as the Board shall determine. Each Award may contain
    terms and conditions in addition to those set forth in the Plan.

 

    (c) Board Discretion.  Except as
    otherwise provided by the Plan, each Award may be made alone or
    in addition or in relation to any other Award. The terms of each
    Award need not be identical, and the Board need not treat
    Participants uniformly.

 

    (d) Termination of Status.  The
    Board shall determine the effect on an Award of the disability,
    death, retirement, authorized leave of absence or other change
    in the employment or other status of a Participant and the
    extent to which, and the period during which, the Participant,
    or the Participant’s legal representative, conservator,
    guardian or Designated Beneficiary, may exercise rights under
    the Award.

 

    (e) Withholding.  Each Participant
    shall pay to the Company, or make provision satisfactory to the
    Company for payment of, any taxes required by law to be withheld
    in connection with an Award to such Participant. Except as the
    Board may otherwise provide in an Award, for so long as the
    Common Stock is registered under the Exchange Act, Participants
    may satisfy such tax obligations in whole or in part by delivery
    of shares of Common Stock, including shares retained from the
    Award creating the tax obligation, valued at their Fair Market
    Value; provided, however, except as otherwise provided by the
    Board, that the total tax withholding where stock is being used
    to satisfy such tax obligations cannot exceed the Company’s
    minimum statutory withholding obligations (based on minimum
    statutory withholding rates for federal and state tax purposes,
    including payroll taxes, that are applicable to such
    supplemental taxable income). Shares surrendered to satisfy tax
    withholding requirements cannot be subject to any repurchase,
    forfeiture, unfulfilled

    

    7

 

    vesting or other similar requirements. The Company may, to the
    extent permitted by law, deduct any such tax obligations from
    any payment of any kind otherwise due to a Participant.

 

    (f) Amendment of Award.  The Board
    may amend, modify or terminate any outstanding Award, including
    but not limited to, substituting therefor another Award of the
    same or a different type, changing the date of exercise or
    realization, and converting an Incentive Stock Option to a
    Nonstatutory Stock Option, provided that the Participant’s
    consent to such action shall be required unless the Board
    determines that the action, taking into account any related
    action, would not materially and adversely affect the
    Participant.

 

    (g) Conditions on Delivery of
    Stock.  The Company will not be obligated to
    deliver any shares of Common Stock pursuant to the Plan or to
    remove restrictions from shares previously delivered under the
    Plan until (i) all conditions of the Award have been met or
    removed to the satisfaction of the Company, (ii) in the
    opinion of the Company’s counsel, all other legal matters
    in connection with the issuance and delivery of such shares have
    been satisfied, including any applicable securities laws and any
    applicable stock exchange or stock market rules and regulations,
    and (iii) the Participant has executed and delivered to the
    Company such representations or agreements as the Company may
    consider appropriate to satisfy the requirements of any
    applicable laws, rules or regulations.

 

    (h) Acceleration.  The Board may at
    any time provide that any Award, including any Option and any
    SAR, shall become immediately exercisable in full or in part,
    free of some or all restrictions or conditions, or otherwise
    realizable in full or in part, as the case may be. The foregoing
    sentence shall not apply to (1) Performance Awards granted
    pursuant to Section 11(i) or (2) Restricted Stock
    Awards and Other Stock-Based Awards granted, in the aggregate,
    in excess of 10% of the maximum number of authorized shares set
    forth in Section 4(a). Notwithstanding any other provision
    of this Plan (other than Section 11(i), if applicable), the
    Board may only waive its right to repurchase shares of Common
    Stock (or waive the forfeiture thereof), remove or modify any
    part or all of the restrictions or conditions applicable to any
    Restricted Stock Award or Other Stock-Based Award or provide
    that such Award will become immediately exercisable or
    realizable, in full or in part, in excess of 10% of the maximum
    number of authorized shares set forth in Section 4(a) in
    extraordinary circumstances which shall include, without
    limitation, death, disability or retirement of the Participant;
    or a merger, consolidation, sale, reorganization,
    recapitalization, or change in control of the Company.

 

    (i) Performance Awards.

 

    (1) Grants.  Restricted Stock
    Awards and Other Stock-Based Awards under the Plan may be made
    subject to the achievement of performance goals pursuant to this
    Section 11(i) (“Performance Awards”), subject to
    the limit in Section 4(b)(1) on shares covered by such
    grants. Subject to Section 11(i)(4), no Performance Awards
    shall vest prior to the first anniversary of the date of grant.

 

    (2) Committee.  Grants of
    Performance Awards to any Covered Employee intended to qualify
    as “performance-based compensation” under
    Section 162(m) (“Performance-Based Compensation”)
    shall be made only by a Committee (or subcommittee of a
    Committee) comprised solely of two or more directors eligible to
    serve on a committee making Awards qualifying as
    “performance-based compensation” under
    Section 162(m). In the case of such Awards granted to
    Covered Employees, references to the Board or to a Committee
    shall be deemed to be references to such Committee or
    subcommittee. “Covered Employee” shall mean any person
    who is, or whom the Committee, in its discretion, determines may
    be, a “covered employee” under Section 162(m)(3)
    of the Code.

 

    (3) Performance Measures.  For any
    Award that is intended to qualify as Performance-Based
    Compensation, the Committee shall specify that the degree of
    granting, vesting
    and/or
    payout shall be subject to the achievement of one or more
    objective performance measures established by the Committee,
    which shall be based on the relative or absolute attainment of
    specified levels of one or any combination of the following: net
    income, earnings before or after discontinued operations,
    interest, taxes, depreciation
    and/or
    amortization, earnings per share (before or after discontinued
    operations, interest, taxes, depreciation
    and/or
    amortization), operating profit before or after discontinued
    operations
    and/or
    taxes, sales, sales growth, earnings growth, cash flow or cash
    position, gross margins, stock price, market share, return on

    

    8

 

    sales, assets, equity or investment, improvement of financial
    ratings, achievement of balance sheet or income statement
    objectives or total shareholder return, and may be absolute in
    their terms or measured against or in relationship to other
    companies comparably, similarly or otherwise situated. The
    Committee may specify that such performance measures shall be
    adjusted to exclude any one or more of (i) extraordinary
    items, (ii) gains or losses on the dispositions of
    discontinued operations, (iii) the cumulative effects of
    changes in accounting principles, (iv) the writedown of any
    asset, (v) charges for restructuring and rationalization
    programs, (vi) non-cash compensation expense from stock
    compensation and (vii) one-time charges or credits. Such
    performance measures: (i) may vary by Participant and may
    be different for different Awards; (ii) may be particular
    to a Participant or the department, branch, line of business,
    subsidiary or other unit in which the Participant works and may
    cover such period as may be specified by the Committee; and
    (iii) shall be set by the Committee within the time period
    prescribed by, and shall otherwise comply with the requirements
    of, Section 162(m). Awards that are not intended to qualify
    as Performance-Based Compensation may be based on these or such
    other performance measures as the Board may determine.

 

    (4) Adjustments.  Notwithstanding
    any provision of the Plan, with respect to any Performance Award
    that is intended to qualify as Performance-Based Compensation,
    the Committee may adjust downwards, but not upwards, the cash or
    number of Shares payable pursuant to such Award, and the
    Committee may not waive the achievement of the applicable
    performance measures except in the case of the death or
    disability of the Participant or a change in control of the
    Company.

 

    (5) Other.  The Committee shall
    have the power to impose such other restrictions on Performance
    Awards as it may deem necessary or appropriate to ensure that
    such Awards satisfy all requirements for Performance-Based
    Compensation.

 

		
	
    12.  
	
    Miscellaneous

 

    (a) No Right To Employment or Other
    Status.  No person shall have any claim or
    right to be granted an Award, and the grant of an Award shall
    not be construed as giving a Participant the right to continued
    employment or any other relationship with the Company. The
    Company expressly reserves the right at any time to dismiss or
    otherwise terminate its relationship with a Participant free
    from any liability or claim under the Plan, except as expressly
    provided in the applicable Award.

 

    (b) No Rights As
    Stockholder.  Subject to the provisions of the
    applicable Award, no Participant or Designated Beneficiary shall
    have any rights as a stockholder with respect to any shares of
    Common Stock to be distributed with respect to an Award until
    becoming the record holder of such shares. Notwithstanding the
    foregoing, in the event the Company effects a split of the
    Common Stock by means of a stock dividend and the exercise price
    of and the number of shares subject to such Option are adjusted
    as of the date of the distribution of the dividend (rather than
    as of the record date for such dividend), then an optionee who
    exercises an Option between the record date and the distribution
    date for such stock dividend shall be entitled to receive, on
    the distribution date, the stock dividend with respect to the
    shares of Common Stock acquired upon such Option exercise,
    notwithstanding the fact that such shares were not outstanding
    as of the close of business on the record date for such stock
    dividend.

 

    (c) Effective Date and Term of
    Plan.  The Plan shall become effective on the
    date on which it is adopted by the Board, but no Award may be
    granted unless and until the Plan has been approved by the
    Company’s stockholders. No Awards shall be granted under
    the Plan after the completion of 10 years from the earlier
    of (i) the date on which the Plan was adopted by the Board
    or (ii) the date the Plan was approved by the
    Company’s stockholders, but Awards previously granted may
    extend beyond that date.

 

    (d) Amendment of Plan.  The Board
    may amend, suspend or terminate the Plan or any portion thereof
    at any time; provided that, to the extent determined by the
    Board, no amendment requiring stockholder approval under any
    applicable legal, regulatory or listing requirement shall become
    effective until such stockholder approval is obtained. No Award
    shall be made that is conditioned upon stockholder approval of
    any amendment to the Plan.

    

    9

 

    (e) Provisions for Foreign
    Participants.  The Board may modify Awards or
    Options granted to Participants who are foreign nationals or
    employed outside the United States or establish subplans or
    procedures under the Plan to recognize differences in laws,
    rules, regulations or customs of such foreign jurisdictions with
    respect to tax, securities, currency, employee benefits or other
    matters.

 

    (f) Governing Law.  The provisions
    of the Plan and all Awards made hereunder shall be governed by
    and interpreted in accordance with the laws of the State of
    Delaware, without regard to any applicable conflicts of law.

 

    Approved by the Board of Directors on

    December 3, 2007

 

    Approved by the Stockholders on

    

    10

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