Document:

Exhibit 10.27

Board Compensation
Policy

(Adopted May 8, 2006;

Amended March 12, 2007)

General:

·       This compensation policy
applies to all board members of ICO Global Communications (Holdings) Limited (“ICO”),
including future directors of ICO. The board of ICO reserves the right to amend
this policy from time to time, but such amendments shall not apply to awards
that have been earned prior to such amendments, without the consent of the
respective director.

Historical Service
by Current Board Members:

·       Each
current board member will receive options to purchase 30,000 shares of Class A
Common Stock of ICO at the current fair market value price for each full year
of board service since the emergence of ICO from bankruptcy in 2000. These
options will vest in accordance with the following schedule:  Options will
become 25% vested following each full year of service as a board member,
beginning with the date the options are granted, with the result that the
option becomes completely vested following four years of service.

·       There will be no additional
compensation for historical service on the board and board committees.

Ongoing Service by
Current and Future Board Members:

·       Initial Service Option Grant. Each future
board member who is not an employee of ICO will receive options to purchase
100,000 shares of Class A Common Stock of ICO at the current fair market
value price. New members will receive the options at the time they are elected.
These options will vest in accordance with the following schedule: 
Options will become 25% vested following each full year of service as a board
member, beginning with the date the options are granted, with the result that
the option becomes completely vested following four years of service.

·       Annual Service Option Grant. Each current
and future board member who is not an employee of ICO will receive options to
purchase 30,000 shares of Class A Common Stock of ICO at the current fair
market value price on an annual basis, to be granted on October 1 of each
year. These options will vest at the rate of 25% per year, beginning as of the
date of grant (October 1) and continuing through the following September 30,
with the effect that the options become fully vested after four years of
service on the board.

·       Annual Service Cash Payment. Each current
and future board member that is independent as determined by NASD Marketplace Rule 4350(d)(2) shall
receive $30,000 per year cash compensation for board service, plus cash
compensation for committee service as determined by the full board.

·       Initial Audit Committee Option Grant. Each
current and future board member that is independent as determined by NASD
Marketplace Rule 4350(d)(2) and who serves on the Audit Committee of
ICO will receive options to purchase 50,000 shares of Class A Common
Stock of ICO at the current fair market value price, to be granted on the date
of appointment to the Audit Committee. The member of the Audit Committee who
serves as chairman will receive options to purchase an additional
50,000 shares of Class A Common Stock at the current fair market
price, to be granted on the date of appointment as chairman of the committee.
These options will become 25% vested following each full year of service on the
Audit Committee following the date of appointment, with the effect that the
options become fully vested after four years of service on the Audit Committee
or as chairman of the Audit Committee, as applicable.

·       Initial Strategy Committee Option Grant.
Each current and future board member that is independent as determined by NASD
Marketplace Rule 4350(d)(2) and who serves on the Strategy Committee 

of ICO will receive
options to purchase 100,000 shares of Class A Common Stock of ICO at
the current fair market value price, to be granted on the date of appointment
to the Strategy Committee. These options will become 25% vested following each
full year of service on the Strategy Committee following the date of
appointment, with the effect that the options become fully vested after four
years of service on the Strategy Committee.

·       Initial Compensation Committee Option Grant.
Each current and future board member that is independent as determined by NASD
Marketplace Rule 4350(d)(2) and who serves on the Compensation
Committee of ICO will receive options to purchase 25,000 shares of Class A
Common Stock of ICO at the current fair market value price, to be granted on
the date of appointment to the Compensation Committee. The member of the
Compensation Committee who serves as chairman will receive options to purchase
an additional 25,000 shares of Class A Common Stock at the current
fair market price, to be granted on the date of appointment as chairman of the
committee. These options will become 25% vested following each full year of
service on the Compensation Committee following the date of appointment, with
the effect that the options become fully vested after four years of service on
the Compensation Committee or as chairman of the Compensation Committee, as
applicable.Exhibit 4.2

 

INOVIO
BIOMEDICAL CORPORATION

2007
OMNIBUS INCENTIVE PLAN

Adopted
by the Board of Directors: March 31, 2007

INOVIO BIOMEDICAL
CORPORATION

2007 OMNIBUS
INCENTIVE PLAN

ARTICLE I

PURPOSE AND
ADOPTION OF THE PLAN

1.01.   Purpose.   The purpose
of the Inovio Biomedical Corporation
2007 Incentive Plan (as amended from time to time, the “Plan”) is to
assist in attracting and retaining highly competent employees, directors and
consultants to act as an incentive in motivating selected employees, directors
and consultants of the Company  and its Subsidiaries to achieve
long-term corporate objectives and to enable stock-based and cash-based
incentive awards to qualify as performance-based compensation for purposes of
the tax deduction limitations under Section 162(m) of the Code.

1.02.   Adoption and Term.   The
Plan has been approved by the Board to be effective as of March 31, 2007,
subject to the approval of the stockholders of the Company. The Plan shall
remain in effect until terminated by action of the Board; provided, however,
that no Awards may be granted hereunder after the tenth anniversary of its
initial effective date.

ARTICLE II

DEFINITIONS

For the purpose of
this Plan, capitalized terms shall have the following meanings:

2.01.   Award means any one or a
combination of Non-Qualified Stock Options or Incentive Stock Options described
in Article VI, Stock Appreciation Rights described in Article VI,
Restricted Shares and Restricted Stock Units described in Article VII,
Performance Awards described in Article VIII, other stock-based Awards
described in Article IX, short-term cash incentive Awards described in Article X
or any other Award made under the terms of the Plan.

2.02.   Award Agreement means a
written agreement between the Company and a Participant or a written
acknowledgment from the Company to a Participant specifically setting forth the
terms and conditions of an Award granted under the Plan.

2.03.   Award Period means, with
respect to an Award, the period of time, if any, set forth in the Award
Agreement during which specified target performance goals must be achieved or
other conditions set forth in the Award Agreement must be satisfied.

2.04.   Beneficiary means an individual,
trust or estate who or which, by a written designation of the Participant filed
with the Company, or if no such written designation is filed, by operation of
law, succeeds to the rights and obligations of the Participant under the Plan
and the Award Agreement upon the Participant’s death.

2.05.   Board means the Board of
Directors of the Company.

2.06.   Change
in Control means, and shall be deemed to have occurred upon the
occurrence of, any one of the following events:

(a)           The
acquisition in one or more transactions, 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 Exchange Act), other than the Company, a Subsidiary or any
employee benefit plan (or related trust) sponsored or maintained by the Company
or a Subsidiary, of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of a number of Company Voting Securities in

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excess of 25% of the
Company Voting Securities unless such acquisition has been approved by the
Board;

(b)           Any
election has occurred of persons to the Board that causes two-thirds of the
Board to consist of persons other than (i) persons who were members of the
Board on the effective date of the Plan and (ii) persons who were
nominated for elections as members of the Board at a time when two-thirds of
the Board consisted of persons who were members of the Board on the effective
date of the Plan, provided, however, that any person nominated for election by
a Board at least two-thirds of whom constituted persons described in clauses (i) and/or
(ii) or by persons who were themselves nominated by such Board shall, for
this purpose, be deemed to have been nominated by a Board composed of persons
described in clause (i);

(c)           The
consummation (i.e. closing) of a
reorganization, merger or consolidation involving the Company, unless,
following such reorganization, merger or consolidation, all or substantially
all of the individuals and entities who were the respective beneficial owners
of the Outstanding Common Stock and Company Voting Securities immediately prior
to such reorganization, merger or consolidation, following such reorganization,
merger or consolidation beneficially own, directly or indirectly, more than
seventy five percent (75%) of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors or trustees,
as the case may be, of the entity resulting from such reorganization, merger or
consolidation in substantially the same proportion as their ownership of the
Outstanding Common Stock and Company Voting Securities immediately prior to
such reorganization, merger or consolidation, as the case may be;

(d)           The
consummation (i.e. closing) of a
sale or other disposition of all or substantially all the assets of the
Company, unless, following such sale or disposition, all or substantially all
of the individuals and entities who were the respective beneficial owners of
the Outstanding Common Stock and Company Voting Securities immediately prior to
such reorganization, merger or consolidation, following such reorganization,
merger or consolidation beneficially own, directly or indirectly, more than
seventy five percent (75%) of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors or trustees,
as the case may be, of the entity purchasing such assets in substantially the
same proportion as their ownership of the Outstanding Common Stock and Company
Voting Securities immediately prior to such sale or disposition, as the case
may be; or

(e)           a
complete liquidation or dissolution of the Company.

2.07.   Code means the Internal
Revenue Code of 1986, as amended. References to a section of the Code shall
include that section and any comparable section or sections of any future
legislation that amends, supplements or supersedes said section.

2.08.   Committee means the
Compensation Committee of the Board.

2.09.   Company means Inovio
Biomedical Corporation and its successors.

2.10.   Common Stock means the
common stock of the Company, par value $0.001
per share.

2.11.   Company Voting Securities means
the combined voting power of all outstanding voting securities of the Company
entitled to vote generally in the election of directors to the Board.

2.12.   Date of Grant means the
date designated by the Committee as the date as of which it grants an Award,
which shall not be earlier than the date on which the Committee approves the
granting of such Award.

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2.13.   Dividend Equivalent Account
means a bookkeeping account in accordance with under Section 11.17 and
related to an Award that is credited with the amount of any cash dividends or
stock distributions that would be payable with respect to the shares of Common
Stock subject to such Awards had such shares been outstanding shares of Common
Stock.

2.14   Exchange Act means the
Securities Exchange Act of 1934, as amended.

2.15.   Exercise Price means, with
respect to a Stock Appreciation Right, the amount established by the Committee
in the Award Agreement which is to be subtracted from the Fair Market Value on
the date of exercise in order to determine the amount of the payment to be made
to the Participant, as further described in Section 6.02(b).

2.16.   Fair Market Value means,
on any date, (i) the closing sale price of a share of Common Stock, as
reported on the American Stock Exchange (or other established stock exchange on
which the Common Stock is regularly traded) on such date or, if there were no sales
on such date, on the last date preceding such date on which a sale was
reported; or (ii) if shares of Common Stock are not listed for trading on
an established stock exchange, Fair Market Value shall be determined by the
Committee in good faith.

2.17.   Incentive Stock Option means
a stock option within the meaning of Section 422 of the Code.

2.18.   Merger means any merger,
reorganization, consolidation, exchange, transfer of assets or other
transaction having similar effect involving the Company.

2.19.   Non-Qualified Stock Option
means a stock option which is not an Incentive Stock Option.

2.20.   Options means all
Non-Qualified Stock Options and Incentive Stock Options granted at any time
under the Plan.

2.21.   Outstanding Common Stock means,
at any time, the issued and outstanding shares of Common Stock.

2.22.   Participant means a person
designated to receive an Award under the Plan in accordance with Section 5.01.

2.23.   Performance Awards means
Awards granted in accordance with Article VIII.

2.24.   Performance
Goals are based on one or more of the following measures and
intended to comply with the performance-based compensation exception under Code
Section 162(m):

·       Net earnings or net income
(before or after taxes)

·       Earnings per share or
earnings per share growth, total units, or unit growth

·       Net sales, sales growth,
total revenue, or revenue growth

·       Net operating profit

·       Return measures (including,
but not limited to, return on assets, capital, invested capital, equity, sales,
or revenue)

·       Cash flow (including, but
not limited to, operating cash flow, free cash flow, cash flow return on
equity, and cash flow return on investment)

·       Earnings before or after
taxes, interest, depreciation, and/or amortization

·       Gross or operating margins

·       Productivity ratios

 3
 

·       Share price or relative
share price (including, but not limited to, growth measures and total
stockholder return)

·       Expense targets

·       Margins

·       Operating efficiency

·       Market share or change in
market share

·       Customer retention or
satisfaction

·       Working capital targets

·       Completion of strategic
financing goals, acquisitions or alliances and clinical progress

·       Company project milestones

·       Economic
value added or EVA® (net operating profit after tax minus the sum
of capital multiplied by the cost of capital)

2.25.   Plan has the meaning given
to such term in Section 1.01.

2.26.   Purchase Price, with
respect to Options, shall have the meaning set forth in Section 6.01(b).

2.27.   Restricted Shares means
Common Stock subject to restrictions imposed in connection with Awards granted
under Article VII.

2.28.   Restricted
Stock Unit  means
a unit representing the right to receive Common Stock or the value thereof in
the future subject to restrictions imposed in connection with Awards granted
under Article VII.

2.28.   Rule 16b-3 means
Rule 16b-3 promulgated by the Securities and Exchange Commission
under Section 16 of the Exchange Act, as the same may be amended from time
to time, and any successor rule.

2.29.   Stock Appreciation Rights means
awards granted in accordance with Article VI.

2.30   Subsidiary
means a subsidiary of the Company within the meaning of Section 424(f) of
the Code.

2.31.   Termination of Service means
the voluntary or involuntary termination of a Participant’s service as an
employee, director or consultant with the Company or a Subsidiary for any
reason, including death, disability, retirement or as the result of the
divestiture of the Participant’s employer or any similar transaction in which
the Participant’s employer ceases to be the Company or one of its Subsidiaries.
Whether entering military or other government service shall constitute
Termination of Service, or whether and when a Termination of Service shall
occur as a result of disability, shall be determined in each case by the
Committee in its sole discretion.

ARTICLE III

ADMINISTRATION

3.01.   Committee.

(a)   Duties
and Authority.   The
Plan shall be administered by the Committee and the Committee shall have
exclusive and final authority in each determination, interpretation or other
action affecting the Plan and its Participants. The Committee shall have the
sole discretionary authority to interpret the Plan, to establish and modify
administrative rules for the Plan, to impose such conditions and
restrictions on Awards as it determines appropriate, and to make all factual
determinations with respect to and take such steps in connection with the Plan
and Awards granted 

 4
 

hereunder as it may deem
necessary or advisable. The Committee shall not, however, have or exercise any
discretion that would disqualify amounts payable under Article X as
performance-based compensation for purposes of Section 162(m) of the
Code. The Committee may delegate such of its powers and authority under the
Plan as it deems appropriate to a subcommittee of the Committee or designated
officers or employees of the Company. In addition, the full Board may exercise
any of the powers and authority of the Committee under the Plan. In the event
of such delegation of authority or exercise of authority by the Board,
references in the Plan to the Committee shall be deemed to refer, as
appropriate, to the delegate of the Committee or the Board. Actions taken by
the Committee or any subcommittee thereof, and any delegation by the Committee
to designated officers or employees, under this Section 3.01 shall comply
with Section 16(b) of the Exchange Act, the performance-based
provisions of Section 162(m) of the Code, and the regulations
promulgated under each of such statutory provisions, or the respective
successors to such statutory provisions or regulations, as in effect from time
to time, to the extent applicable.

(b)   Indemnification.   Each
person who is or shall have been a member of the Board or the Committee, or an
officer or employee of the Company to whom authority was delegated in
accordance with the Plan shall be indemnified and held harmless by the Company
against and from any loss, cost, liability, or expense that may be imposed upon
or reasonably incurred by such individual in connection with or resulting from
any claim, action, suit, or proceeding to which he or she may be a party or in
which he or she may be involved by reason of any action taken or failure to act
under the Plan and against and from any and all amounts paid by him or her in
settlement thereof, with the Company’s approval, or paid by him or her in
satisfaction of any judgment in any such action, suit, or proceeding against
him or her, provided he or she shall give the Company an opportunity, at its
own expense, to handle and defend the same before he or she undertakes to
handle and defend it on his or her own behalf; provided, however, that the
foregoing indemnification shall not apply to any loss, cost, liability, or
expense that is a result of his or her own willful misconduct. The foregoing
right of indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Company’s
Certificate of Incorporation or Bylaws, conferred in a separate agreement with
the Company, as a matter of law, or otherwise, or any power that the Company
may have to indemnify them or hold them harmless.

ARTICLE IV

SHARES

4.01.   Number of Shares Issuable.   The
total number of shares initially authorized to be issued under the Plan shall
be 750,000 of Common Stock. No
more than 750,000 shares of Common
Stock may be issued under the Plan as Incentive Stock Options. The foregoing
share limits shall be subject to adjustment in accordance with Section 11.07.
The shares to be offered under the Plan shall be authorized and unissued Common
Stock, or issued Common Stock that shall have been reacquired by the Company.

4.02.   Shares Subject to Terminated Awards.   Common
Stock covered by any unexercised portions of terminated or forfeited Options
(including canceled Options) granted under Article VI, Common Stock forfeited
as provided in Section 7.02(a), Stock Units and other stock-based Awards
terminated or forfeited as provided in Article IX, and Common Stock
subject to any Awards that are otherwise surrendered by the Participant may
again be subject to new Awards under the Plan. Shares of Common Stock
surrendered to or withheld by the Company in payment or satisfaction of the
Purchase Price of an Option or tax withholding obligation with respect to an
Award shall be available for the grant of new Awards under the Plan. In the
event of the exercise of Stock Appreciation Rights, whether or not granted in
tandem with Options, only the number of shares of Common Stock actually issued
in payment of such Stock Appreciation Rights shall be charged against the
number of shares of Common Stock available for the grant of Awards hereunder.

 5

ARTICLE V

PARTICIPATION

5.01.   Eligible Participants.   Participants
in the Plan shall be such employees, directors and consultants of the Company
and its Subsidiaries as the Committee, in its sole discretion, may designate
from time to time. The Committee’s designation of a Participant in any year
shall not require the Committee to designate such person to receive Awards or
grants in any other year. The designation of a Participant to receive Awards or
grants under one portion of the Plan does not require the Committee to include
such Participant under other portions of the Plan. The Committee shall consider
such factors as it deems pertinent in selecting Participants and in determining
the type and amount of their respective Awards. Subject to adjustment in accordance
with Section 11.07, in any calendar year, no Participant shall be granted
Awards in respect of more than 500,000
shares of Common Stock (whether through grants of Options or Stock Appreciation
Rights or other Awards of Common Stock or rights with respect thereto) or
cash-based Awards for more than $1,500,000.00.

ARTICLE VI

STOCK OPTIONS AND
STOCK APPRECIATION RIGHTS

6.01.   Option Awards.

(a)   Grant
of Options.   The
Committee may grant, to such Participants as the Committee may select, Options
entitling the Participant to purchase shares of Common Stock from the Company
in such number, at such price, and on such terms and subject to such
conditions, not inconsistent with the terms of this Plan, as may be established
by the Committee. The terms of any Option granted under this Plan shall be set
forth in an Award Agreement.

(b)   Purchase Price of Options.   The
Purchase Price of each share of Common Stock which may be purchased upon
exercise of any Option granted under the Plan shall be determined by the
Committee; provided, however, that in no event shall the Purchase Price be less
than the Fair Market Value on the Date of Grant.

(c)   Designation of Options.   The
Committee shall designate, at the time of the grant of each Option, the Option
as an Incentive Stock Option or a Non-Qualified Stock Option.

(d)   Incentive Stock Option Share
Limitation.   No Participant may be granted Incentive Stock
Options under the Plan (or any other plans of the Company and its Subsidiaries)
that would result in shares with an aggregate Fair Market Value (measured on
the Date of Grant) of more than $100,000 first becoming exercisable in any one
calendar year.

(e)   Rights As a Stockholder.   A
Participant or a transferee of an Option pursuant to Section 11.04 shall
have no rights as a stockholder with respect to Common Stock covered by an
Option until the Participant or transferee shall have become the holder of
record of any such shares, and no adjustment shall be made for dividends in
cash or other property or distributions or other rights with respect to any
such Common Stock for which the record date is prior to the date on which the
Participant or a transferee of the Option shall have become the holder of
record of any such shares covered by the Option; provided, however, that
Participants are entitled to share adjustments to reflect capital changes under
Section 11.07.

6.02.   Stock Appreciation Rights.

(a)   Stock Appreciation Right Awards.   The
Committee is authorized to grant to any Participant one or more Stock
Appreciation Rights. Such Stock Appreciation Rights may be granted either
independent of or in tandem with Options granted to the same Participant. Stock
Appreciation Rights 

 6
 

granted in tandem with
Options may be granted simultaneously with, or, in the case of Non-Qualified
Stock Options, subsequent to, the grant to such Participant of the related
Option; provided however, that: (i) any Option covering any share of
Common Stock shall expire and not be exercisable upon the exercise of any Stock
Appreciation Right with respect to the same share, (ii) any Stock
Appreciation Right covering any share of Common Stock shall expire and not be
exercisable upon the exercise of any related Option with respect to the same
share, and (iii) an Option and Stock Appreciation Right covering the same
share of Common Stock may not be exercised simultaneously. Upon exercise of a
Stock Appreciation Right with respect to a share of Common Stock, the
Participant shall be entitled to receive an amount equal to the excess, if any,
of (A) the Fair Market Value of a share of Common Stock on the date of
exercise over (B) the Exercise Price of such Stock Appreciation Right
established in the Award Agreement, which amount shall be payable as provided
in Section 6.02(c).

(b)   Exercise Price.   The
Exercise Price established under any Stock Appreciation Right granted under
this Plan shall be determined by the Committee, but in the case of Stock
Appreciation Rights granted in tandem with Options shall not be less than the
Purchase Price of the related Option; provided, however, that in no event shall
the Exercise Price be less than the Fair Market Value on the Date of Grant. Upon
exercise of Stock Appreciation Rights granted in tandem with options, the
number of shares subject to exercise under any related Option shall
automatically be reduced by the number of shares of Common Stock represented by
the Option or portion thereof which are surrendered as a result of the exercise
of such Stock Appreciation Rights.

(c)   Payment of Incremental Value.   Any
payment which may become due from the Company by reason of a Participant’s
exercise of a Stock Appreciation Right may be paid to the Participant as
determined by the Committee (i) all in cash, (ii) all in Common
Stock, or (iii) in any combination of cash and Common Stock. In the event
that all or a portion of the payment is made in Common Stock, the number of
shares of Common Stock delivered in satisfaction of such payment shall be
determined by dividing the amount of such payment or portion thereof by the
Fair Market Value on the Exercise Date. No fractional share of Common Stock
shall be issued to make any payment in respect of Stock Appreciation Rights; if
any fractional share would be issuable, the combination of cash and Common
Stock payable to the Participant shall be adjusted as directed by the Committee
to avoid the issuance of any fractional share.

6.03.   Terms of Stock Options and
Stock Appreciation Rights.

(a)   Conditions on Exercise.   An
Award Agreement with respect to Options or Stock Appreciation Rights may
contain such waiting periods, exercise dates and restrictions on exercise
(including, but not limited to, periodic installments) as may be determined by
the Committee at the time of grant.

(b)   Duration of Options and Stock
Appreciation Rights.   Options and Stock Appreciation Rights
shall terminate upon the first to occur of the following events:

(i)            Expiration
of the Option or Stock Appreciation Right as provided in the Award Agreement;
or

(ii)           Termination
of the Award in the event of a Participant’s disability, Retirement, death or
other Termination of Service as provided in the Award Agreement; or

(iii)          In
the case of an Incentive Stock Option, ten years from the Date of Grant; or

(iv)          Solely
in the case of a Stock Appreciation Right granted in tandem with an Option,
upon the expiration of the related Option.

(c)   Acceleration
or Extension of Exercise Time.   The
Committee, in its sole discretion, shall have the right (but shall not be
obligated), exercisable on or at any time after the Date of Grant, to permit 

 7
 

the exercise of an Option
or Stock Appreciation Right (i) prior to the time such Option or Stock
Appreciation Right would become exercisable under the terms of the Award
Agreement, (ii) after the termination of the Option or Stock Appreciation
Right under the terms of the Award Agreement, or (iii) after the expiration
of the Option or Stock Appreciation Right.

6.04.   Exercise Procedures.   Each
Option and Stock Appreciation Right granted under the Plan shall be exercised
prior to the close of business on the expiration date of the Option or Stock
Appreciation Right by notice to the
Company or by such other method as provided in the Award Agreement or as
the Committee may establish or approve from time to time. The Purchase Price of
shares purchased upon exercise of an Option granted under the Plan shall be
paid in full in cash by the Participant pursuant to the Award Agreement;
provided, however, that the Committee may (but shall not be required to) permit
payment to be made by delivery to the Company of either (a) Common Stock
(which may include Restricted Shares or shares otherwise issuable in connection
with the exercise of the Option, subject to such rules as the Committee
deems appropriate) or (b) any combination of cash and Common Stock, or (c) such
other consideration as the Committee deems appropriate and in compliance with
applicable law (including payment under an arrangement constituting a brokerage
transaction as permitted under the provisions of Regulation T applicable to
cashless exercises promulgated by the Federal Reserve Board, unless prohibited
by Section 402 of the Sarbanes-Oxley Act of 2002). In the event that any
Common Stock shall be transferred to the Company to satisfy all or any part of
the Purchase Price, the part of the Purchase Price deemed to have been
satisfied by such transfer of Common Stock shall be equal to the product
derived by multiplying the Fair Market Value as of the date of exercise times
the number of shares of Common Stock transferred to the Company. The
Participant may not transfer to the Company in satisfaction of the Purchase
Price any fractional share of Common Stock. Any part of the Purchase Price paid
in cash upon the exercise of any Option shall be added to the general funds of
the Company and may be used for any proper corporate purpose. Unless the
Committee shall otherwise determine, any Common Stock transferred to the Company
as payment of all or part of the Purchase Price upon the exercise of any Option
shall be held as treasury shares.

6.05.   Change in Control.   Unless
otherwise provided by the Committee in the applicable Award Agreement, in the
event of a Change in Control, all Options outstanding on the date of such
Change in Control, and all Stock Appreciation Rights shall become immediately
and fully exercisable. The provisions of this Section 6.05 shall not be
applicable to any Options or Stock Appreciation Rights granted to a Participant
if any Change in Control results from such Participant’s beneficial ownership
(within the meaning of Rule 13d-3 under the Exchange Act) of Common
Stock or Company Voting Securities.

ARTICLE VII

RESTRICTED SHARES
AND RESTRICTED STOCK UNITS

7.01.   Award of Restricted Stock and
Restricted Stock Units.   The Committee may grant to any
Participant an Award of Restricted Shares consisting of a specified number of
shares of Common Stock issued to the Participant subject to such terms,
conditions and forfeiture and transfer restrictions, whether based on
performance standards, periods of service, retention by the Participant of
ownership of specified shares of Common Stock or other criteria, as the
Committee shall establish. The Committee may also grant Restricted Stock Units
representing the right to receive shares of Common Stock in the future subject
to such terms, conditions and restrictions, whether based on performance
standards, periods of service, retention by the Participant of ownership of
specified shares of Common Stock or other criteria, as the Committee shall
establish. With respect to performance-based Awards of Restricted Shares or
Restricted Stock Units intended to qualify as “performance-based” compensation
for purposes of Section 162(m) of the Code, performance targets will
consist of specified levels of one or more of the Performance Goals. The terms
of any Restricted Share and Restricted Stock Unit Awards granted under 

 8
 

this Plan shall be set
forth in an Award Agreement which shall contain provisions determined by the
Committee and not inconsistent with this Plan.

7.02   Restricted Shares.

(a)   Issuance of Restricted Shares.   As
soon as practicable after the Date of Grant of a Restricted Share Award by the
Committee, the Company shall cause to be transferred on the books of the
Company, or its agent, Common Stock, registered on behalf of the Participant,
evidencing the Restricted Shares covered by the Award, but subject to
forfeiture to the Company as of the Date of Grant if an Award Agreement with
respect to the Restricted Shares covered by the Award is not duly executed by
the Participant and timely returned to the Company. All Common Stock covered by
Awards under this Article VII shall be subject to the restrictions, terms
and conditions contained in the Plan and the Award Agreement entered into by
the Participant. Until the lapse or release of all restrictions applicable to
an Award of Restricted Shares, the share certificates representing such
Restricted Shares may be held in custody by the Company, its designee, or, if
the certificates bear a restrictive legend, by the Participant. Upon the lapse
or release of all restrictions with respect to an Award as described in Section 7.02(d),
one or more share certificates, registered in the name of the Participant, for
an appropriate number of shares as provided in Section 7.02(d), free of
any restrictions set forth in the Plan and the Award Agreement shall be
delivered to the Participant.

(b)   Stockholder Rights.   Beginning
on the Date of Grant of the Restricted Share Award and subject to execution of
the Award Agreement as provided in Section 7.02(a), the Participant shall
become a stockholder of the Company with respect to all shares subject to the
Award Agreement and shall have all of the rights of a stockholder, including,
but not limited to, the right to vote such shares and the right to receive
dividends; provided, however, that any Common Stock distributed as a dividend
or otherwise with respect to any Restricted Shares as to which the restrictions
have not yet lapsed, shall be subject to the same restrictions as such
Restricted Shares and held or restricted as provided in Section 7.02(a).

(c)   Restriction on Transferability.   None
of the Restricted Shares may be assigned or transferred (other than by will or
the laws of descent and distribution, or to an inter vivos trust with respect
to which the Participant is treated as the owner under Sections 671 through 677
of the Code, except to the extent that Section 16 of the Exchange Act
limits a Participant’s right to make such transfers), pledged or sold prior to
lapse of the restrictions applicable thereto.

(d)   Delivery of Shares Upon Vesting.   Upon
expiration or earlier termination of the forfeiture period without a forfeiture
and the satisfaction of or release from any other conditions prescribed by the
Committee, or at such earlier time as provided under the provisions of Section 7.04,
the restrictions applicable to the Restricted Shares shall lapse. As promptly
as administratively feasible thereafter, subject to the requirements of Section 11.05,
the Company shall deliver to the Participant or, in case of the Participant’s
death, to the Participant’s Beneficiary, one or more share certificates for the
appropriate number of shares of Common Stock, free of all such restrictions,
except for any restrictions that may be imposed by law.

(e)   Forfeiture of Restricted Shares.   Subject
to Sections 7.02(f) and 7.04, all Restricted Shares shall be forfeited and
returned to the Company and all rights of the Participant with respect to such
Restricted Shares shall terminate unless the Participant continues in the
service of the Company or a Subsidiary as an employee until the expiration of
the forfeiture period for such Restricted Shares and satisfies any and all
other conditions set forth in the Award Agreement. The Committee shall
determine the forfeiture period (which may, but need not, lapse in
installments) and any other terms and conditions applicable with respect to any
Restricted Share Award.

 9
 

(f)   Waiver of Forfeiture Period.   Notwithstanding
anything contained in this Article VII to the contrary, the Committee may,
in its sole discretion, waive the forfeiture period and any other conditions
set forth in any Award Agreement under appropriate circumstances (including the
death, disability or Retirement of the Participant or a material change in
circumstances arising after the date of an Award) and subject to such terms and
conditions (including forfeiture of a proportionate number of the Restricted
Shares) as the Committee shall deem appropriate.

7.03.   Restricted Stock Units.

(a)   Settlement
of Restricted Stock Units.   Payments shall be made to
Participants with respect to their Restricted Stock Units as soon as
practicable after the Committee has determined that the terms and conditions
applicable to such Award have been satisfied or at a later date if distribution
has been deferred. Payments to Participants with respect to Restricted Stock
Units shall be made in the form of Common Stock, or cash or a combination of
both, as the Committee may determine. The amount of any cash to be paid in lieu
of Common Stock shall be determined on the basis of the Fair Market Value of
the Common Stock on the date any such payment is processed. As to shares of
Common Stock which constitute all or any part of such payment, the Committee
may impose such restrictions concerning their transferability and/or their
forfeiture as may be provided in the applicable Award Agreement or as the
Committee may otherwise determine, provided such determination is made on or
before the date certificates for such shares are first delivered to the
applicable Participant.

(b)   Shareholder Rights.   Until
the lapse or release of all restrictions applicable to an Award of Restricted
Stock Units, no shares of Common Stock shall be issued in respect of such
Awards and no Participant shall have any rights as a shareholder of the Company
with respect to the shares of Common Stock covered by such Award of Restricted
Stock Units.

(c)   Waiver of Forfeiture Period.   Notwithstanding
anything contained in this Section 7.03 to the contrary, the Committee
may, in its sole discretion, waive the forfeiture period and any other
conditions set forth in any Award Agreement under appropriate circumstances
(including the death, disability or retirement of the Participant or a material
change in circumstances arising after the date of an Award) and subject to such
terms and conditions (including forfeiture of a proportionate number of shares
issuable upon settlement of the Restricted Stock Units constituting an Award)
as the Committee shall deem appropriate.

(d)   Deferral of Payment.   If
approved by the Committee and set forth in the applicable Award Agreement, a
Participant may elect to defer the amount payable with respect to the
Participant’s Restricted Stock Units in accordance with such terms as may be
established by the Committee.

7.04   Change in Control.   Unless
otherwise provided by the Committee in the applicable Award Agreement, in the
event of a Change in Control, all restrictions applicable to Restricted Shares
and Restricted Stock Unit Awards shall terminate fully and the Participant shall
immediately have the right to the delivery in accordance with Section 7.02(d) of
a share certificate or certificates evidencing a number of shares of Common
Stock equal to the full number of shares subject to each such Award (in the
case of Restricted Stock) or payment in accordance with Section 7.03(a) of
a number of shares of Common Stock determined by the Committee, in its
discretion, but, in the case of a performance-based or other contingent Award,
in no event less than the number of shares payable at the “target” level for
each such Award (in the case of Restricted Stock Units). The provisions of this
Section 7.04 shall not be applicable to any Restricted Share Award granted
to a Participant if any Change in Control results from such Participant’s beneficial
ownership (within the meaning of Rule 13d-3 under the Exchange Act)
of Common Stock or Company Voting Securities.

 10

ARTICLE VIII

PERFORMANCE AWARDS

8.01.   Performance Awards.

(a)   Award Periods and Calculations of
Potential Incentive Amounts.   The Committee may grant
Performance Awards to Participants. A Performance Award shall consist of the
right to receive a payment (measured by the Fair Market Value of a specified
number of shares of Common Stock, increases in such Fair Market Value during
the Award Period and/or a fixed cash amount) contingent upon the extent to
which certain predetermined performance targets have been met during an Award
Period. The Award Period shall be two or more fiscal or calendar years as
determined by the Committee. The Committee, in its discretion and under such
terms as it deems appropriate, may permit newly eligible Participants, such as
those who are promoted or newly hired, to receive Performance Awards after an
Award Period has commenced.

(b)   Performance Targets.   Subject
to Section 11.18, the performance targets applicable to a Performance
Award may include such goals related to the performance of the Company or,
where relevant, any one or more of its Subsidiaries or divisions and/or the
performance of a Participant as may be established by the Committee in its
discretion. In the case of Performance Awards to “covered employees” (as
defined in Section 162(m) of the Code), the targets will be limited
to specified levels of one or more of the Performance Goals. The performance
targets established by the Committee may vary for different Award Periods and
need not be the same for each Participant receiving a Performance Award in an
Award Period.

(c)   Earning Performance Awards.   The
Committee, at or as soon as practicable after the Date of Grant, shall
prescribe a formula to determine the percentage of the Performance Award to be
earned based upon the degree of attainment of the applicable performance
targets.

(d)   Payment of Earned Performance Awards.   Subject
to the requirements of Section 11.05, payments of earned Performance
Awards shall be made in cash or Common Stock, or a combination of cash and Common
Stock, in the discretion of the Committee. The Committee, in its sole
discretion, may define, and set forth in the applicable Award Agreement, such
terms and conditions with respect to the payment of earned Performance Awards
as it may deem desirable.

8.02.   Termination of Service.   In
the event of a Participant’s Termination of Service during an Award Period, the
Participant’s Performance Awards shall be forfeited except as may otherwise be
provided in the applicable Award Agreement.

8.03.   Change in Control.   Unless
otherwise provided by the Committee in the applicable Award Agreement, in the
event of a Change in Control, all Performance Awards for all Award Periods
shall immediately become fully vested and payable to all Participants and shall
be paid to Participants in accordance with Section 8.01(d), within 30 days
after such Change in Control. The provisions of this Section 8.03 shall
not be applicable to any Performance Award granted to a Participant if any
Change in Control results from such Participant’s beneficial ownership (within
the meaning of Rule 13d-3 under the Exchange Act) of Common Stock or
Company Voting Securities.

ARTICLE IX

OTHER STOCK-BASED
AWARDS

9.01.   Grant of Other Stock-Based Awards.   Other
stock-based awards, consisting of stock purchase rights (with or without loans
to Participants by the Company containing such terms as the Committee shall
determine), Awards of Common Stock, or Awards valued in whole or in part by
reference to, or otherwise based on, Common Stock, may be granted either alone
or in addition to or in conjunction with other 

 11
 

Awards under the Plan.
Subject to the provisions of the Plan, the Committee shall have sole and
complete authority to determine the persons to whom and the time or times at
which such Awards shall be made, the number of shares of Common Stock to be
granted pursuant to such Awards, and all other conditions of the Awards. Any
such Award shall be confirmed by an Award Agreement executed by the Committee
and the Participant, which Award Agreement shall contain such provisions as the
Committee determines to be necessary or appropriate to carry out the intent of
this Plan with respect to such Award.

9.02.   Terms of Other Stock-Based Awards.   In
addition to the terms and conditions specified in the Award Agreement, Awards
made pursuant to this Article IX shall be subject to the following:

(a)           Any
Common Stock subject to Awards made under this Article IX may not be sold,
assigned, transferred, pledged or otherwise encumbered prior to the date on
which the shares are issued, or, if later, the date on which any applicable
restriction, performance or deferral period lapses; and

(b)           If
specified by the Committee in the Award Agreement, the recipient of an Award
under this Article IX shall be entitled to receive, currently or on a
deferred basis, interest or dividends or dividend equivalents with respect to
the Common Stock or other securities covered by the Award; and

(c)           The
Award Agreement with respect to any Award shall contain provisions dealing with
the disposition of such Award in the event of a Termination of Service prior to
the exercise, payment or other settlement of such Award, whether such
termination occurs because of Retirement, disability, death or other reason,
with such provisions to take account of the specific nature and purpose of the
Award.

ARTICLE X

SHORT-TERM CASH
INCENTIVE AWARDS

10.01.   Eligibility.   Executive
officers of the Company who are from time to time determined by the Committee
to be “covered employees” for purposes of Section 162(m) of the Code
will be eligible to receive short-term cash incentive awards under this Article X.

10.02.   Awards.

(a)   Performance Targets.   The
Committee shall establish objective performance targets based on specified
levels of one or more of the Performance Goals. Such performance targets shall
be established by the Committee on a timely basis to ensure that the targets
are considered “preestablished” for purposes of Section 162(m) of the
Code.

(b)   Amounts of Awards.   In
conjunction with the establishment of performance targets for a fiscal year,
the Committee shall adopt an objective formula (on the basis of percentages of
Participants’ salaries, shares in a bonus pool or otherwise) for computing the
respective amounts payable under the Plan to Participants if and to the extent
that the performance targets are attained. Such formula shall comply with the requirements
applicable to performance-based compensation plans under Section 162(m) of
the Code and, to the extent based on percentages of a bonus pool, such
percentages shall not exceed 100% in the aggregate.

(c)   Payment of Awards.   Awards
will be payable to Participants in cash each year upon prior written
certification by the Committee of attainment of the specified performance
targets for the preceding fiscal year.

(d)   Negative Discretion.   Notwithstanding
the attainment by the Company of the specified performance targets, the
Committee shall have the discretion, which need not be exercised uniformly
among the Participants, to reduce or eliminate the award that would be
otherwise paid.

 12
 

(e)   Guidelines.   The
Committee shall adopt from time to time written policies for its implementation
of this Article X. Such guidelines shall reflect the intention of the
Company that all payments hereunder qualify as performance-based compensation
under Section 162(m) of the Code.

(f)   Non-Exclusive Arrangement.   The
adoption and operation of this Article X shall not preclude the Board or
the Committee from approving other short-term incentive compensation
arrangements for the benefit of individuals who are Participants hereunder as
the Board or Committee, as the case may be, deems appropriate and in the best
of the Company.

ARTICLE XI

TERMS APPLICABLE
GENERALLY TO AWARDS

GRANTED UNDER THE PLAN

11.01.   Plan Provisions Control Award Terms.   Except
as provided in Section 11.16, the terms of the Plan shall govern all
Awards granted under the Plan, and in no event shall the Committee have the
power to grant any Award under the Plan which is contrary to any of the
provisions of the Plan. In the event any provision of any Award granted under
the Plan shall conflict with any term in the Plan as constituted on the Date of
Grant of such Award, the term in the Plan as constituted on the Date of Grant
of such Award shall control. Except as provided in Section 11.03 and Section 11.07,
the terms of any Award granted under the Plan may not be changed after the Date
of Grant of such Award so as to materially decrease the value of the Award
without the express written approval of the holder.

11.02.   Award Agreement.   No
person shall have any rights under any Award granted under the Plan unless and
until the Company and the Participant to whom such Award shall have been
granted shall have executed and delivered an Award Agreement or received any
other Award acknowledgment authorized by the Committee expressly granting the
Award to such person and containing provisions setting forth the terms of the
Award.

11.03.   Modification of Award After Grant.   No
Award granted under the Plan to a Participant may be modified (unless such
modification does not materially decrease the value of the Award) after the
Date of Grant except by express written agreement between the Company and the
Participant, provided that any such change (a) shall not be inconsistent
with the terms of the Plan, and (b) shall be approved by the Committee.

11.04.   Limitation on Transfer.   Except
as provided in Section 7.01(c) in the case of Restricted Shares, a
Participant’s rights and interest under the Plan may not be assigned or
transferred other than by will or the laws of descent and distribution, and
during the lifetime of a Participant, only the Participant personally (or the
Participant’s personal representative) may exercise rights under the Plan. The
Participant’s Beneficiary may exercise the Participant’s rights to the extent
they are exercisable under the Plan following the death of the Participant.
Notwithstanding the foregoing, to the extent permitted under Section 16(b) of
the Exchange Act with respect to Participants subject to such Section, the
Committee may grant Non-Qualified Stock Options that are transferable, without
payment of consideration, to immediate family members of the Participant or to
trusts or partnerships for such family members, and the Committee may also
amend outstanding Non-Qualified Stock Options to provide for such
transferability.

11.05.   Taxes.   The Company
shall be entitled, if the Committee deems it necessary or desirable, to
withhold (or secure payment from the Participant in lieu of withholding) the
amount of any withholding or other tax required by law to be withheld or paid
by the Company with respect to any amount payable and/or shares issuable under
such Participant’s Award, or with respect to any income recognized upon a
disqualifying disposition of shares received pursuant to the exercise of an
Incentive Stock Option, and the Company may defer payment or issuance of the
cash or shares upon exercise or vesting of an Award unless indemnified to its
satisfaction against any liability for any such tax. The amount of such
withholding or tax 

 13
 

payment shall be
determined by the Committee and shall be payable by the Participant at such
time as the Committee determines in accordance with the following rules:

(a)           The
Participant shall have the right to elect to meet his or her withholding
requirement (i) by having withheld from such Award at the appropriate time
that number of shares of Common Stock, rounded up to the next whole share,
whose Fair Market Value is equal to the amount of withholding taxes due, (ii) by
direct payment to the Company in cash of the amount of any taxes required to be
withheld with respect to such Award or (iii) by a combination of shares
and cash.

(b)           In
the case of Participants who are subject to Section 16 of the Exchange
Act, the Committee may impose such limitations and restrictions as it deems
necessary or appropriate with respect to the delivery or withholding of shares
of Common Stock to meet tax withholding obligations.

11.06.   Surrender of Awards.   Any
Award granted under the Plan may be surrendered to the Company for cancellation
on such terms as the Committee and the holder approve. With the consent of the
Participant, the Committee may substitute a new Award under this Plan in
connection with the surrender by the Participant of an equity compensation
award previously granted under this Plan or any other plan sponsored by the
Company; provided, however, that no such substitution shall be permitted
without the approval of the Company’s stockholders if such approval is required
by the rules of any applicable stock exchange.

11.07.   Adjustments to Reflect
Capital Changes.

(a)   Recapitalization.   In
the event of any corporate event or transaction (including, but not limited to,
a change in the Common Stock or the capitalization of the Company) such as a
merger, consolidation, reorganization, recapitalization, separation, partial or
complete liquidation, stock dividend, stock split, reverse stock split, split
up, spin-off, or other distribution of stock or property of the Company, a
combination or exchange of Common Stock, dividend in kind, or other like change
in capital structure, number of outstanding shares of Common Stock,
distribution (other than normal cash dividends) to shareholders of the Company,
or any similar corporate event or transaction, the Committee, in order to
prevent dilution or enlargement of Participants’ rights under this Plan, shall
make equitable and appropriate adjustments and substitutions, as applicable, to
or of the number and kind of shares subject to outstanding Awards, the Purchase
Price or Exercise Price for such shares, the number and kind of shares
available for future issuance under the Plan and the maximum number of shares
in respect of which Awards can be made to any Participant in any calendar year,
and other determinations applicable to outstanding Awards. The Committee shall
have the power and sole discretion to determine the amount of the adjustment to
be made in each case.

(b)   Merger.   After any
Merger in which the Company is the surviving corporation, each Participant
shall, at no additional cost, be entitled upon any exercise of all Options or
receipt of other Award to receive (subject to any required action by
stockholders), in lieu of the number of shares of Common Stock receivable or
exercisable pursuant to such Award, the number and class of shares or other
securities to which such Participant would have been entitled pursuant to the
terms of the Merger if, at the time of the Merger, such Participant had been
the holder of record of a number of shares equal to the number of shares
receivable or exercisable pursuant to such Award. Comparable rights shall
accrue to each Participant in the event of successive Mergers of the character
described above. Notwithstanding Section 11.15, in the event of a Merger
in which the Company is not the surviving corporation, outstanding Awards shall
be subject to the agreement governing the Merger, which may provide, without
limitation, for the assumption of Awards by the surviving corporation or its
parent or subsidiary, for the substitution by the surviving corporation or its
parent or subsidiary of its own awards for such Awards, for accelerated vesting
and accelerated expiration, or for settlement in cash or cash equivalents. In
any event, the exercise and/or vesting of any Award that was 

 14
 

permissible solely by reason
of this Section 11.07(b) shall be conditioned upon the consummation
of the Merger.

(c)   Options to Purchase Shares or Stock
of Acquired Companies.   After any Merger in which the Company
or a Subsidiary shall be a surviving corporation, the Committee may grant
substituted options under the provisions of the Plan, pursuant to Section 424
of the Code, replacing old options granted under a plan of another party to the
Merger whose shares or stock subject to the old options may no longer be issued
following the Merger. The foregoing adjustments and manner of application of
the foregoing provisions shall be determined by the Committee in its sole
discretion. Any such adjustments may provide for the elimination of any
fractional shares which might otherwise become subject to any Options.

11.08.   No Right to Continued Service.   No
person shall have any claim of right to be granted an Award under this Plan.
Neither the Plan nor any action taken hereunder shall be construed as giving
any Participant any right to be retained in the service of the Company or any
of its Subsidiaries.

11.09.   Awards Not Includable for Benefit
Purposes.   Payments received by a Participant pursuant to the
provisions of the Plan shall not be included in the determination of benefits
under any pension, group insurance or other benefit plan applicable to the
Participant which is maintained by the Company or any of its Subsidiaries,
except as may be provided under the terms of such plans or determined by the
Board.

11.10.   Governing Law.   All
determinations made and actions taken pursuant to the Plan shall be governed by
the laws of California and
construed in accordance therewith.

11.11.   No Strict Construction.   No
rule of strict construction shall be implied against the Company, the
Committee, or any other person in the interpretation of any of the terms of the
Plan, any Award granted under the Plan or any rule or procedure
established by the Committee.

11.12.   Compliance with Rule 16b-3.   It
is intended that, unless the Committee determines otherwise, Awards under the
Plan be eligible for exemption under Rule 16b-3. The Board is
authorized to amend the Plan and to make any such modifications to Award
Agreements to comply with Rule 16b-3, as it may be amended from time
to time, and to make any other such amendments or modifications as it deems
necessary or appropriate to better accomplish the purposes of the Plan in light
of any amendments made to Rule 16b-3.

11.13.   Captions.   The
captions (i.e., all Section headings) used in the Plan are for convenience
only, do not constitute a part of the Plan, and shall not be deemed to limit,
characterize or affect in any way any provisions of the Plan, and all
provisions of the Plan shall be construed as if no captions have been used in
the Plan.

11.14.   Severability.   Whenever
possible, each provision in the Plan and every Award at any time granted under
the Plan shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of the Plan or any Award at any time
granted under the Plan shall be held to be prohibited by or invalid under
applicable law, then (a) such provision shall be deemed amended to
accomplish the objectives of the provision as originally written to the fullest
extent permitted by law and (b) all other provisions of the Plan and every
other Award at any time granted under the Plan shall remain in full force and
effect.

11.15.   Amendment and Termination.

(a)   Amendment.   The Board
shall have complete power and authority to amend the Plan at any time;
provided, however, that the Board shall not, without the requisite affirmative
approval of stockholders of the Company, make any amendment which requires
stockholder approval under the Code or under any other applicable law or rule of
any stock exchange which lists Common Stock or Company Voting Securities. No
termination or amendment of the Plan may, without the consent of 

 15
 

the Participant to whom
any Award shall theretofore have been granted under the Plan, adversely affect
the right of such individual under such Award.

(b)   Termination.   The
Board shall have the right and the power to terminate the Plan at any time. No
Award shall be granted under the Plan after the termination of the Plan, but
the termination of the Plan shall not have any other effect and any Award
outstanding at the time of the termination of the Plan may be exercised after
termination of the Plan at any time prior to the expiration date of such Award
to the same extent such Award would have been exercisable had the Plan not
terminated.

11.16.   Foreign Qualified Awards.   Awards
under the Plan may be granted to such employees of the Company and its
Subsidiaries who are residing in foreign jurisdictions as the Committee in its
sole discretion may determine from time to time. The Committee may adopt such
supplements to the Plan as may be necessary or appropriate to comply with the
applicable laws of such foreign jurisdictions and to afford Participants
favorable treatment under such laws; provided, however, that no Award shall be
granted under any such supplement with terms or conditions inconsistent with
the provision set forth in the Plan.

11.17.   Dividend Equivalents.   For
any Award granted under the Plan, the Committee shall have the discretion, upon
the Date of Grant or thereafter, to establish a Dividend Equivalent Account
with respect to the Award, and the applicable Award Agreement or an amendment
thereto shall confirm such establishment. If a Dividend Equivalent Account is
established, the following terms shall apply:

(a)   Terms and Conditions.   Dividend
Equivalent Accounts shall be subject to such terms and conditions as the
Committee shall determine and as shall be set forth in the applicable Award
Agreement. Such terms and conditions may include, without limitation, for the
Participant’s Account to be credited as of the record date of each cash
dividend on the Common Stock with an amount equal to the cash dividends which
would be paid with respect to the number of shares of Common Stock then covered
by the related Award if such shares of Common Stock had been owned of record by
the Participant on such record date.

(b)   Unfunded Obligation.   Dividend
Equivalent Accounts shall be established and maintained only on the books and
records of the Company and no assets or funds of the Company shall be set
aside, placed in trust, removed from the claims of the Company’s general creditors,
or otherwise made available until such amounts are actually payable as provided
hereunder.

11.18   Adjustment of Performance Goals and
Targets.   Notwithstanding
any provision of the Plan to the contrary, the Committee shall have the
authority to adjust any Performance Goal, performance target or other
performance-based criteria established with respect to any Award under the Plan
if circumstances occur (including, but not limited to, unusual or nonrecurring
events, changes in tax laws or accounting principles or practices or changed
business or economic conditions) that cause any such Performance Goal,
performance target or performance-based criteria to be inappropriate in the
judgment of the Committee; provided, that with respect to any Award that is
intended to qualify for the “performance-based compensation” exception under Section 162(m) of
the Code and the regulations thereunder, any adjustment by the Committee shall
be consistent with the requirements of Section 162(m) and the
regulations thereunder.

11.19   Legality of Issuance.   Notwithstanding any provision of this Plan or any
applicable Award Agreement to the contrary, the Committee shall have the sole
discretion to impose such conditions, restrictions and limitations (including
suspending exercises of Options or Stock Appreciation Rights and the tolling of
any applicable exercise period during such suspension) on the issuance of
Common Stock with respect to any Award unless and until the Committee
determines that such issuance complies with (i) any applicable
registration requirements under the Securities Act of 1933 or the Committee has
determined that an exemption there from is available, (ii) any applicable
listing requirement of any stock 

 16
 

exchange on which the
Common Stock is listed, and (iii) any other applicable provision of state,
federal or foreign law, including foreign securities laws where applicable.

11.20   Restrictions on Transfer.   Regardless of whether the offering and sale of Common
Stock under the Plan have been registered under the Securities Act of 1933 or
have been registered or qualified under the securities laws of any state, the
Company may impose restrictions upon the sale, pledge, or other transfer of
such Common Stock (including the placement of appropriate legends on stock
certificates) if, in the judgment of the Company and its counsel, such
restrictions are necessary or desirable to achieve compliance with the
provisions of the Securities Act of 1933, the securities laws of any state, the
United States or any other applicable foreign law.

11.21   Further Assurances.   As a condition to receipt of any Award under the
Plan, a Participant shall agree, upon demand of the Company, to do all acts and
execute, deliver and perform all additional documents, instruments and
agreements which may be reasonably required by the Company, to implement the
provisions and purposes of the Plan.

 17

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