Document:

exv10w1

 

EXHIBIT 10.1

BROADCOM CORPORATION

1998 EMPLOYEE STOCK PURCHASE PLAN

(as Amended and Restated March 21, 2003)

     I.     PURPOSE OF THE PLAN

          This Employee Stock Purchase Plan is intended to promote the interests of
Broadcom Corporation by providing eligible employees with the opportunity to
acquire a proprietary interest in the Corporation through participation in a
payroll-deduction based employee stock purchase plan designed to qualify under
Section 423 of the Code.

          Capitalized terms herein shall have the meanings assigned to such terms in
the attached Appendix.

          All share numbers in this March 21, 2003 restatement reflect (i) the
two-for-one split of the Common Stock which was effected on February 17, 1999
through the payment of a dividend of one additional share of Common Stock for
every share of Common Stock outstanding on February 5, 1999 and (ii) the
two-for-one split of the Common Stock which was effected on February 11, 2000
through the payment of a dividend of one additional share of Common Stock for
every share of Common Stock outstanding on January 31, 2000.

     II.     ADMINISTRATION OF THE PLAN

          The Plan Administrator shall have full authority to interpret and construe
any provision of the Plan and to adopt such rules and regulations for
administering the Plan as it may deem necessary in order to comply with the
requirements of Code Section 423. Decisions of the Plan Administrator shall be
final and binding on all parties having an interest in the Plan.

     III.     STOCK SUBJECT TO PLAN

          A. The stock purchasable under the Plan shall be shares of authorized but
unissued or reacquired Common Stock, including shares of Common Stock purchased
on the open market. The maximum number of shares of Common Stock reserved for
issuance over the term of the Plan shall be limited to 6,694,509 shares. Such
reserve shall consist of (i) the initial share reserve of 3,000,000 shares,
(ii) an increase of 3,000,000 shares authorized by the Board on March 7, 2002
and approved by the shareholders at the 2002 Annual Meeting and (iii) an
additional increase of 694,509 shares effected in January 2003 pursuant to the
automatic share increase provisions of Section III.B.

 

 

          B.
The number of shares of Common Stock available for issuance under the Plan
shall automatically increase on the first trading day of January each calendar
year during the term of the Plan, beginning with calendar year 2003, by an
amount equal to twenty-five one hundredths of one percent (0.25%) of the
aggregate number of shares of Class A Common Stock and Class B Common Stock
outstanding on the last trading day in December of the immediately preceding
calendar year, but in no event shall any such annual increase exceed 1,000,000
shares. Subject to shareholder approval at the 2003 Annual Meeting, the
foregoing automatic share increase provision shall be revised upward so that
the number of shares of Common Stock available for issuance under the Plan
shall automatically increase on the first trading day of January each calendar
year during the remaining term of the Plan, beginning with calendar year 2004,
by an amount equal to one percent (1%) of the aggregate number of shares of
Class A Common Stock and Class B Common Stock outstanding on the last trading
day in December of the immediately preceding calendar year, but in no event
shall any such annual increase exceed 3,000,000 shares.

          C. Should any change be made to the Common Stock by reason of any stock
split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class
without the Corporation’s receipt of consideration, then appropriate
adjustments shall be made to (i) the maximum number and class of securities
issuable under the Plan, (ii) the maximum number and/or class of securities by
which the share reserve under the Plan is to increase each calendar year
pursuant to the provisions of Section III.B, (iii) the maximum number and class
of securities purchasable per Participant on any one Purchase Date, (iv) the
maximum number and class of securities purchasable in total by all Participants
on any one Purchase Date and (v) the number and class of securities and the
price per share in effect under each outstanding purchase right in order to
prevent the dilution or enlargement of benefits thereunder.

     IV.     OFFERING PERIODS

          A. Shares of Common Stock shall be offered for purchase under the Plan
through a series of successive offering periods until such time as (i) the
maximum number of shares of Common Stock available for issuance under the Plan
shall have been purchased or (ii) the Plan shall have been sooner terminated.

          B. Each offering period shall be of such duration (not to exceed
twenty-four (24) months) as determined by the Plan Administrator prior to the
start date of such offering period. However, the initial offering period shall
commence at the Effective Time and terminate on the last business day in April
2000. The next offering period shall commence on the first business day in May
2000, and subsequent offering periods shall commence as designated by the Plan
Administrator.

          C. Each offering period shall be comprised of a series of one or more
successive Purchase Intervals. Purchase Intervals shall run from the first
business day in May each year to the last business day in October of the same
year and from the first business day in

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November each year to the last business day in April of the following
year. However, the first Purchase Interval in effect under the initial
offering period shall commence at the Effective Time and terminate on the last
business day in October 1998.

          D. Should the Fair Market Value per share of Common Stock on any Purchase
Date within an offering period be less than the Fair Market Value per share of
Common Stock on the start date of that offering period, then that offering
period shall automatically terminate immediately after the purchase of shares
of Common Stock on such Purchase Date, and a new offering period shall commence
on the next business day following such Purchase Date. The new offering period
shall have a duration of twenty (24) months, unless a shorter duration is
established by the Plan Administrator within five (5) business days following
the start date of that offering period.

     V.     ELIGIBILITY

          A. Each individual who is an Eligible Employee on the start date of any
offering period under the Plan may enter that offering period on such start
date or on any subsequent Quarterly Entry Date within that offering period,
provided he or she remains an Eligible Employee.

          B. Each individual who first becomes an Eligible Employee after the start
date of an offering period may enter that offering period on any subsequent
Quarterly Entry Date within that offering period on which he or she is an
Eligible Employee.

          C. Each corporation acquired by the Corporation at any time after March 7,
2002 pursuant to a transaction in which that acquired corporation is to be
maintained as a separate Corporate Affiliate shall automatically become a
Participating Corporation effective as of the first Quarterly Entry Date
coincident with or next following the effective date of the acquisition.

          D. The date an individual enters an offering period shall be designated
his or her Entry Date for purposes of that offering period.

          E. To participate in the Plan for a particular offering period, the
Eligible Employee must complete the enrollment forms prescribed by the Plan
Administrator (including a stock purchase agreement and a payroll deduction
authorization) and file such forms with the Plan Administrator (or its
designate) on or before his or her scheduled Entry Date.

     VI.     PAYROLL DEDUCTIONS

          A. The payroll deduction authorized by the Participant for purposes of
acquiring shares of Common Stock during an offering period may be any multiple
of one percent (1%) of the Cash Earnings paid to the Participant during each
Purchase Interval within that offering period, up to a maximum of fifteen
percent (15%). The deduction rate so authorized shall continue in effect
throughout the offering period, except to the extent such rate is changed in
accordance with the following guidelines:

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	 	     (i) The Participant may, at any time during the offering
period, reduce his or her rate of payroll deduction, by filing
the appropriate form with the Plan Administrator. Effective for
all offering periods beginning on or after May 1, 2003, the
reduction shall become effective on the first pay day of the month
following the month in which such form is filed, and there shall
be no limit on the number of such reductions a Participant may
effect during a Purchase Interval.1
	 
	 	     (ii) The Participant may, at any time during the offering
period, increase the rate of his or her payroll deduction by
filing the appropriate form with the Plan Administrator. Effective
for all offering periods beginning on or after May 1, 2003, the
new rate (which may not exceed the fifteen percent (15%) maximum)
shall become effective on the first pay day of the month following
the month in which such form is filed, and there shall be no limit
on the number of such increases a Participant may effect during a
Purchase Interval.2

          B. Payroll deductions shall begin on the first pay day following the
Participant’s Entry Date into the offering period and shall (unless sooner
terminated by the Participant) continue through the pay day ending with or
immediately prior to the last day of that offering period. The amounts so
collected shall be credited to the Participant’s book account under the Plan,
but no interest shall be paid on the balance from time to time outstanding in
such account. The amounts collected from the Participant shall not be required
to be held in any segregated account or trust fund and may be commingled with
the general assets of the Corporation and used for general corporate purposes.

          C. Payroll deductions shall automatically cease upon the termination of
the Participant’s purchase right in accordance with the provisions of the Plan.

          D. The Participant’s acquisition of Common Stock under the Plan on any
Purchase Date shall neither limit nor require the Participant’s acquisition of
Common Stock on any subsequent Purchase Date, whether within the same or a
different offering period.

     VII.     PURCHASE RIGHTS

          A.
Grant of Purchase Right. A Participant shall be granted a separate
purchase right for each offering period in which he or she participates. The
purchase right shall be granted on the Participant’s Entry Date into the
offering period and shall provide the Participant with the right to purchase
shares of Common Stock, in a series of successive installments over the

     1 For offering periods beginning prior to May 1, 2003, no Participant may
effect more than one (1) such reduction per Purchase Interval, and any such
permissible reduction will become effective as soon as possible following the
filing of the elected reduction with the Plan Administrator.

     2 For offering periods beginning prior to May 1, 2003, any increase in the
rate of payroll deduction will only become effective as of the start of the
Purchase Interval immediately following the filing of the elected increase with
the Plan Administrator, and the Participant is accordingly allowed only one
such increase per Purchase Interval.

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remainder of such offering period, upon the terms set forth below. The
Participant shall execute a stock purchase agreement embodying such terms and
such other provisions (not inconsistent with the Plan) as the Plan
Administrator may deem advisable.

          Under no circumstances shall purchase rights be granted under the Plan to
any Eligible Employee if such individual would, immediately after the grant,
own (within the meaning of Code Section 424(d)) or hold outstanding options or
other rights to purchase, stock possessing five percent (5%) or more of the
total combined voting power or value of all classes of stock of the Corporation
or any Corporate Affiliate.

          B.
Exercise of the Purchase Right. Each purchase right shall be
automatically exercised in installments on each successive Purchase Date within
the offering period, and shares of Common Stock shall accordingly be purchased
on behalf of each Participant on each such Purchase Date. The purchase shall
be effected by applying the Participant’s payroll deductions for the Purchase
Interval ending on such Purchase Date to the purchase of whole shares of Common
Stock at the purchase price in effect for the Participant for that Purchase
Date.

          C.
Purchase Price. The purchase price per share at which Common Stock
will be purchased on the Participant’s behalf on each Purchase Date within the
offering period shall be equal to eighty-five percent (85%) of the
lower of (i)
the Fair Market Value per share of Common Stock on the Participant’s Entry Date
into that offering period or (ii) the Fair Market Value per share of Common
Stock on that Purchase Date.

          D. Number of Purchasable Shares. The number of shares of Common Stock
purchasable by a Participant on each Purchase Date during the offering period
shall be the number of whole shares obtained by dividing the amount collected
from the Participant through payroll deductions during the Purchase Interval
ending with that Purchase Date by the purchase price in effect for the
Participant for that Purchase Date. However, the maximum number of shares of
Common Stock purchasable per Participant on any one Purchase Date shall not
exceed Six Thousand (6,000) shares, subject to periodic adjustments in the
event of certain changes in the Corporation’s capitalization. In addition, the
maximum number of shares of Common Stock purchasable in total by all
Participants on any one Purchase Date in any offering period beginning on or
after November 1, 2002 shall not exceed One Million Two Hundred Thousand
(1,200,000) shares, subject to periodic adjustments in the event of certain
changes in the Corporation’s capitalization. However, the Plan Administrator
shall have the discretionary authority, exercisable prior to the start of any
offering period under the Plan, to increase or decrease the limitations to be
in effect for the number of shares purchasable per Participant and in total by
all Participants on each Purchase Date during that offering period.

          E. Excess Payroll Deductions. Any payroll deductions not applied to the
purchase of shares of Common Stock on any Purchase Date because they are not
sufficient to purchase a whole share of Common Stock shall be held for the
purchase of Common Stock on the next Purchase Date. However, any payroll
deductions not applied to the purchase of Common Stock by reason of the
limitation on the maximum number of shares purchasable per Participant or in
total by all Participants on such Purchase Date shall be promptly refunded.

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          F. Withdrawal from Plan/Termination of Purchase Right: The following
provisions shall govern the withdrawal or the termination of outstanding
purchase rights:

		
	 	     (i) A Participant may, at any time prior to the next
scheduled Purchase Date in the offering period, withdraw from the
Plan by filing the appropriate form with the Plan Administrator
(or its designate), and no further payroll deductions shall be
collected from the Participant with respect to the offering period
in which such withdrawal occurs. Any payroll deductions collected
during the Purchase Interval in which such withdrawal occurs
shall, at the Participant’s election, be immediately refunded or
held for the purchase of shares on the next Purchase Date. If no
such election is made at the time such withdrawal, then the
payroll deductions collected with respect to the terminated right
shall be refunded as soon as possible.
	 
	 	     (ii) In order to resume participation in the Plan, such
individual must re-enroll in the Plan (by making a timely filing
of the prescribed enrollment forms) on or before any subsequently
scheduled Quarterly Entry Date.
	 
	 	     (iii) Should the Participant cease to remain an Eligible
Employee for any reason (including death, disability or change in
status) while his or her purchase right remains outstanding, then
that purchase right shall immediately terminate, and all of the
Participant’s payroll deductions for the Purchase Interval in
which the purchase right so terminates shall be immediately
refunded. However, should the Participant cease to remain in
active service by reason of an approved unpaid leave of absence,
then the Participant shall have the right, exercisable up until
the last business day of the Purchase Interval in which such leave
commences, to (a) withdraw all the payroll deductions collected to
date on his or her behalf for that Purchase Interval or (b) have
such funds held for the purchase of shares on his or her behalf on
the next scheduled Purchase Date. In no event, however, shall any
further payroll deductions be collected on the Participant’s
behalf during such leave. Upon the Participant’s return to active
service (i) within ninety (90) days following the commencement of
such leave or (ii) prior to the expiration of any longer period
for which such Participant’s right to reemployment with the
Corporation is guaranteed by either statute or contract, his or
her payroll deductions under the Plan shall automatically resume
at the rate in effect at the time the leave began, unless the
Participant withdraws from the Plan prior to his or her return.
An individual who returns to active employment following a leave
of absence which exceeds in duration the applicable (i) or (ii)
time period shall be treated as a new Employee for purposes of
subsequent participation in the Plan and must accordingly
re-enroll in the Plan (by making a timely filing of the prescribed
enrollment forms) on or before his or her scheduled Entry Date
into the offering period.

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          G.
Change in Control. Each outstanding purchase right shall automatically be
exercised, immediately prior to the effective date of any Change in Control, by
applying the payroll deductions of each Participant for the Purchase Interval
in which such Change in Control occurs to the purchase of whole shares of
Common Stock at a purchase price per share equal to eighty-five percent (85%)
of the lower of (i) the Fair Market Value per share of Common Stock on the
Participant’s Entry Date into the offering period in which such Change in
Control occurs or (ii) the Fair Market Value per share of Common Stock
immediately prior to the effective date of such Change in Control. However,
the applicable limitation on the number of shares of Common Stock purchasable
per Participant shall continue to apply to any such purchase, but not the
limitation applicable to the maximum number of shares of Common Stock
purchasable in total by all Participants.

          The Corporation shall use its best efforts to provide at least ten
(10)-days prior written notice of the occurrence of any Change in Control, and
Participants shall, following the receipt of such notice, have the right to
terminate their outstanding purchase rights prior to the effective date of the
Change in Control.

          H. Proration of Purchase Rights. Should the total number of shares of
Common Stock to be purchased pursuant to outstanding purchase rights on any
particular date exceed the number of shares then available for issuance under
the Plan, the Plan Administrator shall make a pro-rata allocation of the
available shares on a uniform and nondiscriminatory basis, and the payroll
deductions of each Participant, to the extent in excess of the aggregate
purchase price payable for the Common Stock pro-rated to such individual, shall
be refunded.

          I. Assignability. The purchase right shall be exercisable only by the
Participant and shall not be assignable or transferable by the Participant.

          J. Shareholder Rights. A Participant shall have no shareholder rights
with respect to the shares subject to his or her outstanding purchase right
until the shares are purchased on the Participant’s behalf in accordance with
the provisions of the Plan and the Participant has become a holder of record of
the purchased shares.

     VIII.     ACCRUAL LIMITATIONS

          A. No Participant shall be entitled to accrue rights to acquire Common
Stock pursuant to any purchase right outstanding under this Plan if and to the
extent such accrual, when aggregated with (i) rights to purchase Common Stock
accrued under any other purchase right granted under this Plan and (ii) similar
rights accrued under other employee stock purchase plans (within the meaning of
Code Section 423) of the Corporation or any Corporate Affiliate, would
otherwise permit such Participant to purchase more than Twenty-Five Thousand
Dollars ($25,000) worth of stock of the Corporation or any Corporate Affiliate
(determined on the basis of the Fair Market Value per share on the date or
dates such rights are granted) for each calendar year such rights are at any
time outstanding.

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          B.
For purposes of applying such accrual limitations to the purchase rights
granted under the Plan, the following provisions shall be in effect:

		
	 	     (i) The right to acquire Common Stock under each outstanding
purchase right shall accrue in a series of installments on each
successive Purchase Date during the offering period on which such
right remains outstanding.
	 
	 	     (ii) No right to acquire Common Stock under any outstanding
purchase right shall accrue to the extent the Participant has
already accrued in the same calendar year the right to acquire
Common Stock under one (1) or more other purchase rights at a rate
equal to Twenty-Five Thousand Dollars ($25,000) worth of Common
Stock (determined on the basis of the Fair Market Value per share
on the date or dates of grant) for each calendar year such rights
were at any time outstanding.

          C. If by reason of such accrual limitations, any purchase right of a
Participant does not accrue for a particular Purchase Interval, then the
payroll deductions which the Participant made during that Purchase Interval
with respect to such purchase right shall be promptly refunded.

          D. In the event there is any conflict between the provisions of this
Article and one or more provisions of the Plan or any instrument issued
thereunder, the provisions of this Article shall be controlling.

     IX.     EFFECTIVE DATE AND TERM OF THE PLAN

          A. The Plan was adopted by the Board on February 3, 1998 and became
effective at the Effective Time. However, no purchase rights granted under the
Plan were exercised, and no shares of Common Stock were issued hereunder, until
(i) the Plan had been approved by the shareholders of the Corporation and (ii)
the Corporation had complied with all applicable requirements of the 1933 Act
(including the registration of the shares of Common Stock issuable under the
Plan on a Form S-8 registration statement filed with the Securities and
Exchange Commission), all applicable listing requirements of any stock exchange
(or the Nasdaq National Market, if applicable) on which the Common Stock is
listed for trading and all other applicable requirements established by law or
regulation.

          B. Unless sooner terminated by the Board, the Plan shall terminate upon
the earliest of (i) the last business day in April 2008, (ii) the date on which
all shares available for issuance under the Plan shall have been sold pursuant
to purchase rights exercised under the Plan or (iii) the date on which all
purchase rights are exercised in connection with a Change in Control. No
further purchase rights shall be granted or exercised, and no further payroll
deductions shall be collected, under the Plan following such termination.

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     X.     AMENDMENT/TERMINATION OF THE PLAN

          A. The Board may alter, amend, suspend or terminate the Plan at any time
to become effective immediately following the close of any Purchase Interval.
However, the Plan may be amended or terminated immediately upon Board action,
if and to the extent necessary to assure that the Corporation will not
recognize, for financial reporting purposes, any compensation expense in
connection with the shares of Common Stock offered for purchase under the Plan,
should the financial accounting rules applicable to the Plan at the Effective
Time be subsequently revised so as to require the Corporation to recognize
compensation expense in the absence of such amendment or termination.

          B. In no event may the Board effect any of the following amendments or
revisions to the Plan without the approval of the Corporation’s shareholders:
(i) increase the number of shares of Common Stock issuable under the Plan,
except for permissible adjustments in the event of certain changes in the
Corporation’s capitalization, (ii) alter the purchase price formula so as to
reduce the purchase price payable for the shares of Common Stock purchasable
under the Plan or (iii) modify the eligibility requirements for participation
in the Plan.

          C. On March 7, 2002, the Board amended the Plan to (i) increase the number
of shares of Common Stock authorized for issuance under the Plan by an
additional 3,000,000 shares and (ii) to implement an automatic share increase
feature pursuant to the provisions of Section III.B. The amendment was
approved by the shareholders at the 2002 Annual Meeting.

          D. On October 31, 2002, the Board amended the Plan to increase the number
of shares of Common Stock purchasable in total by all Participants on each
Purchase Date within any offering period beginning on or after November 1, 2002
from 600,000 to 1,200,000 shares.

          E. On March 21, 2003, the Board amended the Plan to (i) revise the
automatic share increase provisions of Section III.B upward so that so that the
number of shares of Common Stock available for issuance under the Plan shall
automatically increase on the first trading day of January each calendar year
during the remaining term of the Plan, beginning with calendar year 2004, by an
amount equal to one percent (1%) of the aggregate number of shares of Class A
Common Stock and Class B Common Stock outstanding on the last trading day in
December of the immediately preceding calendar year, but in no event shall any
such annual increase exceed 3,000,000 shares, (ii) allow Participants who
withdraw from an offering period to rejoin the Plan on any subsequently
scheduled Quarterly Entry Date and, effective for all of offering periods
beginning on or after May 1, 2003, (iii) remove the limitation on the number of
times a Participant may change his or her rate of payroll deduction during a
Purchase Interval.

     XI.     GENERAL PROVISIONS

          A. All costs and expenses incurred in the administration of the Plan shall
be paid by the Corporation; however, each Plan Participant shall bear all costs
and expenses incurred by such individual in the sale or other disposition of
any shares purchased under the Plan.

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          B. Nothing in the Plan shall confer upon the Participant any right to
continue in the employ of the Corporation or any Corporate Affiliate for any
period of specific duration or interfere with or otherwise restrict in any way
the rights of the Corporation (or any Corporate Affiliate employing such
person) or of the Participant, which rights are hereby expressly reserved by
each, to terminate such person’s employment at any time for any reason, with
or without cause.

          C. The provisions of the Plan shall be governed by the laws of the State
of California without resort to that State’s conflict-of-laws rules.

          D. The Corporation and each Participating Corporation shall have the right
to take whatever steps the Plan Administrator deems necessary or appropriate to
comply with all applicable federal, state, local and employment tax withholding
requirements, and the Corporation’s obligations to deliver shares under this
Plan shall be conditioned upon compliance with all such withholding tax
requirements. Without limiting the generality of the foregoing, the
Corporation and each Participating Corporation shall have the right to withhold
taxes from any other compensation or other amounts which it may owe to the
Participant, or to require the Participant to pay to the Corporation or the
Participating Corporation the amount of any taxes which the Corporation or the
Participating Corporation may be required to withhold with respect to such
shares. In this connection, the Plan Administrator may require the Participant
to notify the Plan Administrator, the Corporation or a Participating
Corporation before the Participant sells or otherwise disposes of any shares
acquired under the Plan.

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Schedule A

Corporations Participating in

Employee Stock Purchase Plan

As of March 21, 2003

Broadcom Corporation

Altima Communications, Inc.

AltoCom, Inc.

Broadcom Asia Distribution Pte. Ltd.

Broadcom Canada Ltd.

Broadcom HomeNetworking, Inc.

Broadcom Japan K.K.

Broadcom India Private Limited

Broadcom Israel Ltd.

Broadcom Netherlands B.V.

Broadcom Singapore Pte Ltd.

Broadcom Taiwan Corporation

Broadcom UK Ltd.

ServerWorks Corporation

 

 

APPENDIX

          The following definitions shall be in effect under the Plan:

          A.
Board shall mean the Corporation’s Board of Directors.

          B.
Cash Earnings shall mean the (i) base salary payable to a Participant
by one or more Participating Companies during such individual’s period of
participation in one or more offering periods under the Plan plus (ii) all
overtime payments, bonuses, commissions, current profit-sharing distributions
and other incentive-type payments received during such period. Such Cash
Earnings shall be calculated before deduction of (A) any income or employment
tax withholdings or (B) any pre-tax contributions made by the Participant to
any Code Section 401(k) salary deferral plan or any Code Section 125 cafeteria
benefit program now or hereafter established by the Corporation or any
Corporate Affiliate. However, Cash Earnings shall not include any
contributions (other than Code Section 401(k) or Code Section 125 contributions
deducted from such Cash Earnings) made by the Corporation or any Corporate
Affiliate on the Participant’s behalf to any employee benefit or welfare plan
now or hereafter established.

          C.
Change in Control shall mean either of the following
shareholder-approved transactions to which the Corporation is a party:

		
	 	     (i) a merger or consolidation in which securities possessing
more than fifty percent (50%) of the total combined voting power
of the Corporation’s outstanding securities are transferred to a
person or persons different from the persons holding those
securities immediately prior to such transaction,
	 
	 	     (ii) the sale, transfer or other disposition of all or
substantially all of the assets of the Corporation in complete
liquidation or dissolution of the Corporation, or
	 
	 	     (iii) the acquisition, directly or indirectly by any person
or related group of persons (other than the Corporation or a
person that directly or indirectly controls, is controlled by, or
is under common control with, the Corporation), of beneficial
ownership (within the meaning of Rule 13d-3 of the 1934 Act) of
securities possessing more than fifty percent (50%) of the total
combined voting power of the Corporation’s outstanding securities
pursuant to a tender or exchange offer made directly to the
Corporation’s shareholders.

          D.
Code shall mean the Internal Revenue Code of 1986, as amended.

          E.
Common Stock shall mean the Corporation’s Class A common stock.

          F.
Corporate Affiliate shall mean any parent or subsidiary corporation of
the Corporation (as determined in accordance with Code Section 424), whether
now existing or subsequently established.

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          G.
Corporation shall mean Broadcom Corporation, a California corporation,
and any corporate successor to all or substantially all of the assets or voting
stock of Broadcom Corporation which shall by appropriate action adopt the Plan.

          H.
Effective Time shall mean the time at which the Underwriting Agreement
was executed and the Common Stock priced for the initial public offering. Any
Corporate Affiliate which becomes a Participating Corporation after such
Effective Time shall designate a subsequent Effective Time with respect to its
employee-Participants.

          I.
Eligible Employee shall mean any person who is employed by a
Participating Corporation on a basis under which he or she is regularly
expected to render more than twenty (20) hours of service per week for more
than five (5) months per calendar year for earnings considered wages under Code
Section 3401(a).

          J.
Entry Date shall mean the date an Eligible Employee first commences
participation in the offering period in effect under the Plan. The earliest
Entry Date under the Plan shall be the Effective Time.

          K.
Fair Market Value per share of Common Stock on any relevant date shall
be determined in accordance with the following provisions:

		
	 	     (i) If the Common Stock is at the time traded on the Nasdaq
National Market, then the Fair Market Value shall be the closing
selling price per share of Common Stock on the date in question,
as such price is reported by the National Association of
Securities Dealers on the Nasdaq National Market. If there is no
closing selling price for the Common Stock on the date in
question, then the Fair Market Value shall be the closing selling
price on the last preceding date for which such quotation exists.
	 
	 	     (ii) If the Common Stock is at the time listed on any Stock
Exchange, then the Fair Market Value shall be the closing selling
price per share of Common Stock on the date in question on the
Stock Exchange determined by the Plan Administrator to be the
primary market for the Common Stock, as such price is officially
quoted in the composite tape of transactions on such exchange. If
there is no closing selling price for the Common Stock on the date
in question, then the Fair Market Value shall be the closing
selling price on the last preceding date for which such quotation
exists.
	 
	 	     (iii) For purposes of the initial offering period which began
at the Effective Time, the Fair Market Value shall be deemed to be
equal to the price per share at which the Common Stock was sold in
the initial public offering pursuant to the Underwriting
Agreement.

          L. 1933 Act shall mean the Securities Act of 1933, as amended.

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          M.
Participant shall mean any Eligible Employee of a Participating
Corporation who is actively participating in the Plan.

          N.
Participating Corporation shall mean the Corporation and such Corporate
Affiliate or Affiliates as may be authorized from time to time by the Board to
extend the benefits of the Plan to their Eligible Employees. The Participating
Corporations in the Plan are listed in attached Schedule A.

          O.
Plan shall mean the Corporation’s 1998 Employee Stock Purchase Plan, as
set forth in this document.

          P.
Plan Administrator shall mean the committee of two (2) or more Board
members appointed by the Board to administer the Plan.

          Q.
Purchase Date shall mean the last business day of each Purchase
Interval. The initial Purchase Date shall be October 30, 1998.

          R.
Purchase Interval shall mean each successive six (6)-month period
within the offering period at the end of which there shall be purchased shares
of Common Stock on behalf of each Participant.

          S.
Quarterly Entry Date shall mean the first business day in February,
May, August and November each year on which an Eligible Employee may first
enter an offering period. The first such Quarterly Entry Date shall be August
2, 1999.

          T.
Stock Exchange shall mean either the American Stock Exchange or the New
York Stock Exchange.

          U.
Underwriting Agreement shall mean the agreement between the Corporation
and the underwriter or underwriters managing the initial public offering of the
Common Stock.

A-3EXHIBIT 4.6
-----------

                         coolsavings.com inc.

          SECOND AMENDED AND RESTATED 1997 STOCK OPTION PLAN

                              ARTICLE I.

                   PURPOSE AND ADOPTION OF THE PLAN
                   --------------------------------

     1.01  PURPOSE.  The purpose of the coolsavings.com inc. Stock Option
Plan (the "Plan") is to provide certain employees and consultants of
coolsavings.com inc. (f/k/a Interactive Coupon Marketing Group, Inc.), a
Michigan corporation (the "Company"), with an additional incentive to
promote the Company's financial success and to provide an incentive which
the Company may use to induce able persons to enter into or remain in the
service of the Company or a Subsidiary.

     1.02  ADOPTION AND TERM.  The initial 1997 Stock Option Plan was
approved by the Board on December 4, 1997 and by the Company's stockholders
on August 17, 1998.  The Amended and Restated 1997 Stock Option Plan was
approved by the Board as of December 1, 1998 and by the Company's
stockholders on November 17, 1999. This Second Amended and Restated 1997
Stock Option Plan was approved by the Board and by the Company's
stockholders as of March 23, 2000, and will remain in effect until all
shares authorized under the terms of the Plan have been issued, unless
earlier terminated or abandoned by action of the Board; provided, however,
that no Incentive Stock Option may be granted after December 4, 2007.

                              ARTICLE II.

                              DEFINITIONS
                              -----------

     2.01  ADMINISTRATOR means the group of persons having authority to
administer the Plan pursuant to Section 3.01.

     2.02  AWARD means any one or combination of Non-Qualified Stock
Options, Performance Based Options, Incentive Stock Options, Stock
Appreciation Rights, Restricted Share Rights or any other award made under
the terms of the Plan.

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

     2.04  AWARD PERIOD means, with respect to an Award, the period of
time set forth in the Award Agreement during which specified conditions set
forth in the Award Agreement must be satisfied.

     2.05  BENEFICIARY means (a) an individual, trust or estate who or
which, by will or by operation of the laws of descent and distribution,
succeeds to the rights and obligations of the Participant under the Plan
and Award Agreement upon the Participant's death; or (b) an individual, who
by designation of the Participant, succeeds to the rights and obligations
of the Participant under the Plan and Award Agreement upon the
Participant's death.

     2.06  BOARD means the Board of Directors of the Company.

                                   1

<PAGE>

     2.07  CHANGE OF CONTROL EVENT means (a) an event or series of events
by which any Person or other entity or group (as such term is used in
Section 13(d) and 14(d) of the Exchange Act) of Persons or other entities
acting in concert as a partnership or other group (a "Group of Persons")
(other than Persons who are, or Groups of Persons entirely made up of, (i)
management personnel of the Company or (ii) any affiliates of any such
management personnel) shall, as a result of a tender or exchange offer or
offers, an open market purchase or purchases, a privately negotiated
purchase or purchases or otherwise, become the beneficial owner (within the
meaning of Rule 13d-3 under the Exchange Act, except that a Person shall be
deemed to have "beneficial ownership" of all securities that such Person
has the right to acquire, whether such right is exercisable immediately or
only after the passage of time), directly or indirectly, of 20% or more of
the combined voting power of the then outstanding voting stock of the
Company; (b) the Company consolidates with, or merges with or into, another
Person (other than a Subsidiary in a transaction which is not otherwise a
Change of Control Event), or sells, assigns, conveys, transfers, leases or
otherwise disposes of all or substantially all of its assets to any Person,
or any Person consolidates with, or merges with or into the Company, in any
such event pursuant to a transaction in which the outstanding voting stock
of the Company is converted into or exchanged for cash, securities or other
property; (c) during any consecutive two-year period, individuals who at
the beginning of such period constituted the Board (together with any new
directors whose election by such Board or whose nomination for election by
the stockholders of the Company, was approved by a vote of 66-2/3% of the
directors then still in office who were either directors at the beginning
of such period or whose election or nomination for election was previously
so approved) cease for any reason to constitute a majority of the Board
then in office; or (d) any liquidation or dissolution of the Company (other
than a liquidation into a Subsidiary that is not otherwise a Change of
Control Event).

     2.08  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 that section.

     2.09  COMMON STOCK means the Common Stock of the Company, no par
value.

     2.10  COMPANY means coolsavings.com inc. (f/k/a Interactive Coupon
Marketing Group, Inc.), a Michigan corporation.

     2.11  DATE OF GRANT means the date designated by the Administrator as
the date as of which it grants an Award, which shall not be earlier than
the date on which the Administrator approves the granting of such Award.

     2.12  DIRECTOR means a member of the Board of Directors of the
Company.

     2.13  EXCHANGE ACT means the Securities Exchange Act of 1934, as
amended.

     2.14  EXERCISE PRICE means, with respect to a Stock Appreciation
Right, the amount established by the Administrator, in accordance with
Section 7.03 hereunder, and set forth 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 Incremental Value to be paid to the
Participant.

     2.15  EXPIRATION DATE means the date specified in an Award Agreement
as the expiration date of such Award.

                                   2

<PAGE>

     2.16  FAIR MARKET VALUE means, on any given date, the fair market
value of the Common Stock as determined in good faith by the Board;
provided, however, that: (a) if the Common Stock is admitted to quotation
on the National Association of Securities Dealers Automated Quotation
System ("Nasdaq") Small-Cap Market on the date the Option is granted, the
Fair Market Value means the average of the highest bid and lowest asked
prices of the Common Stock on Nasdaq reported for such date; (b) if the
Common Stock is admitted to trading on a national securities exchange or
the Nasdaq National Market on the date the Option is granted, the Fair
Market Value means the closing price reported for the Common Stock on such
exchange or system for such date or, if no sales were reported for such
date, for the last date preceding such date for which a sale was reported;
and (c) the Fair Market Value of the Common Stock on the effective date of
the registration statement for the Company's initial public offering shall
be the initial offering price.

     2.17  INCENTIVE STOCK OPTION means a stock option described in
Section 422 of the Code.

     2.18  INCREMENTAL VALUE has the meaning given such term in Section
7.01 of the Plan.

     2.19  NON-QUALIFIED STOCK OPTION means a stock option which is not an
Incentive Stock Option.

     2.20  OFFICER means a president, vice president, treasurer,
secretary, controller, and any other person who performs functions
corresponding to the foregoing officers for the Company, and any other
participant who is deemed to be an officer of the Company for purposes of
Section 16 of the Exchange Act and the rules thereunder, as currently in
effect or as amended from time to time.

     2.21  OPTIONS means all Non-Qualified Stock Options, Incentive Stock
Options and Performance Based Options granted at any time under the Plan.

     2.22  PARTICIPANT shall have the meaning set forth in Article V.

     2.23  PERFORMANCE BASED OPTION means a stock option which, upon
exercise or at any other time, would not result in or give rise to
"applicable employee remuneration" within the meaning of Section 162(m) of
the Code.

     2.24  PLAN means the coolsavings.com inc. Second Amended and Restated
1997 Stock Option Plan, as described herein and as it may be amended from
time to time.

     2.25  PURCHASE PRICE, with respect to options, shall have the meaning
set forth in Section 6.02.

     2.26  RESTRICTED SHARE RIGHT means a right to receive Common Stock
subject to restrictions imposed under the terms of an Award granted
pursuant to Article IX.

     2.27  RULE 16b-3 means Rule 16b-3 promulgated by the Securities and
Exchange Commission under Section 16 of the Exchange Act, as currently in
effect and as it may be amended from time to time, and any successor rule.

     2.28  STOCK APPRECIATION RIGHT means an Award granted in accordance
with Article VII.

     2.29  SUBSIDIARY shall have the meaning set forth in Section 424(f)
of the Code.

                                   3

<PAGE>

     2.30  TERMINATION OF EMPLOYMENT means the voluntary or involuntary
termination of a Participant's employment with the Company for any reason,
including death, disability, retirement or as the result of the divestiture
of the Participant's employer or any other similar transaction in which the
Participant's employer ceases to be the Company or a Subsidiary of the
Company.  Whether an authorized leave of absence or absence on military or
government service, absence due to disability, or absence for any other
reason shall constitute Termination of Employment shall be determined in
each case by the Administrator in its sole discretion.

     2.31  TRADING DAY means a day on which public trading of securities
occurs and is reported in the principal consolidated reporting system
referred to in Section 2.16 above, or if the Common Stock is not listed or
admitted to trading on a national securities exchange or included for
quotation on the Nasdaq National Market, any business day.

                             ARTICLE III.

                            ADMINISTRATION
                            --------------

     3.01  ADMINISTRATION.  The Plan shall be administered by the Board
or, to the extent determined by the Board, a committee (the "Compensation
Committee") consisting of not less than two non-employee directors of the
Company (within the meaning of Rule 16b-3) to be appointed by, and to serve
at the pleasure of, the Board (in either case, the "Administrator").  It is
the intention of the Company that, with respect to Awards designated as
Performance Based Options, each of the members of the Compensation
Committee shall also be "outside directors" within the meaning of Section
162(m) of the Code.  The Administrator shall administer the Plan in
accordance with this provision and 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, to cancel Awards (including those made pursuant
to other plans of the Company) and to substitute new options (including
options granted under other plans of the Company) with the consent of the
recipient, and to take such steps in connection with the Plan and Awards
granted thereunder as it may deem necessary or advisable.  The
Administrator may, with respect to Participants who are not Officers,
delegate such of its powers and authority under the Plan as it deems
appropriate to designated officers or employees of the Company.

     3.02  INDEMNIFICATION.  Members of the Administrator shall be
entitled to indemnification and reimbursement from the Company for any
action or any failure to act in connection with service as Administrator to
the full extent provided for or permitted by the Company's articles of
incorporation or bylaws or by any insurance policy or other agreement
intended for the benefit of the Company's officers, directors or employees
or by any applicable law.

                                   4

<PAGE>

                              ARTICLE IV.

              COMMON STOCK ISSUABLE PURSUANT TO THE PLAN
              ------------------------------------------

     4.01  SHARES ISSUABLE.  Shares to be issued under the Plan may be
authorized and unissued shares or issued shares which have been reacquired
by the Company.  Except as provided in Section 4.03, the Awards granted to
any Participant and to all Participants in the aggregate under the Plan
shall be limited so that the sum of the following shall never exceed twenty
percent (20%) of the total number of outstanding shares of Common Stock
from time to time: (i) all shares which shall be issued upon the exercise
of outstanding Options or other Awards granted under the Plan, (ii) all
shares for which payment of Incremental Value shall be made by reason of
the exercise of Stock Appreciation Rights at any time granted under the
Plan, (iii) the number of shares otherwise issuable under an Award which
are applied by the Company to payment of the withholding or tax liability
discussed in Section 11.04, and (iv) all shares of Common Stock which shall
be issued upon the exercise of the options granted under that certain Stock
Option Agreement, dated as of October 15, 1996, by and between the Company
and Matthew Moog; provided, however, that in no event shall the number of
shares of Common Stock which may be issued upon the exercise of Incentive
Stock Options exceed 10,000 shares, subject to adjustment in accordance
with Section 4.03.

     4.02  SHARES SUBJECT TO TERMINATED AWARDS.  In the event that any
Award at any time granted under the Plan shall be surrendered to the
Company, be terminated or expire before it shall have been fully exercised,
or an award of Stock Appreciation Rights is exercised for cash, then all
shares formerly subject to such Award as to which such Award shall not have
been exercised shall be available for any Award subsequently granted in
accordance with the Plan.  Shares of Common Stock subject to Options, or
portions thereof, which have been surrendered in connection with the
exercise of tandem Stock Appreciation Rights shall not be available for
subsequent Awards under the Plan, and shares of Common Stock 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.  Shares
which are reacquired by the Company or shares issuable subject to
Restricted Share Rights which are forfeited pursuant to forfeiture
provisions in the Award Agreement shall be available for subsequently
granted Awards only if the forfeiting Participant received no benefits of
ownership (such as dividends actually paid to the Participant) other than
voting rights of the forfeited shares.  Any shares of Common Stock issued
by the Company pursuant to its assumption or substitution of outstanding
grants from acquired companies shall not reduce the number of shares
available for Awards under this Plan unless issued under this Plan.

     4.03  ADJUSTMENTS TO REFLECT CAPITAL CHANGES.

           (a)   RECAPITALIZATION.  The number and kind of shares subject
     to outstanding Awards, the Purchase Price or Exercise Price for such
     shares, and the number and kind of shares available for Awards
     subsequently granted under the Plan shall be appropriately adjusted
     to reflect any stock dividend, stock split, combination or exchange
     of shares, merger, consolidation or other change in capitalization
     with a similar substantive effect upon the Plan or the Awards granted
     under the Plan.  The Administrator shall have the power to determine
     the amount of the adjustment to be made in each case.

                                   5

<PAGE>

           (b)   SALE OR REORGANIZATION.  After any reorganization, merger
     or consolidation in which the Company is a surviving corporation,
     each Participant shall, at no additional cost, be entitled upon
     exercise of an 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, a number and class
     of shares of stock or other securities to which such Participant
     would have been entitled pursuant to the terms of the reorganization,
     merger or consolidation if, at the time of such reorganization,
     merger or consolidation, such Participant had been the holder of
     record of a number of shares of Common Stock 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
     reorganizations, mergers or consolidations of the character described
     above.

           (c)   OPTIONS TO PURCHASE STOCK OF ACQUIRED COMPANIES.  After
     any reorganization, merger or consolidation in which the Company or a
     Subsidiary of the Company shall be a surviving corporation, the
     Administrator 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 reorganization, merger
     or consolidation, where such party's stock may no longer be issued
     following such merger or consolidation.  The foregoing adjustments
     and manner of application of the foregoing provisions shall be
     determined by the Administrator in its sole discretion.  Any
     adjustments may provide for the elimination of any fractional shares
     which might otherwise have become subject to any Awards.

                              ARTICLE V.

                             PARTICIPATION
                             -------------

     5.01  ELIGIBLE PARTICIPANTS. Participants in the Plan shall be the
employees and consultants of the Company or any Subsidiary, as determined
and selected from time to time by the Administrator, in its sole and
absolute discretion. The Administrator's designation of a Participant in
any year shall not require the Administrator to designate such person to
receive Awards in any other year.  The Administrator shall consider such
factors as it deems pertinent in selecting Participants and in determining
the type and amount of their respective Awards.

                              ARTICLE VI.

                             OPTION AWARDS
                             -------------

     6.01  POWER TO GRANT OPTIONS.  The Administrator may grant, to such
Participants as the Administrator may select, Options entitling the
Participant to purchase Common Stock from the Company at such price, in
such quantity and on such terms and subject to such conditions, not
inconsistent with the terms of this Plan, as may be established by the
Administrator.  The terms of any Option granted under this Plan shall be
set forth in an Award Agreement.  Notwithstanding the foregoing, Options
granted to Officers shall not be exercisable for a period of at least six
months from the Date of Grant.

                                   6

<PAGE>

     6.02  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 equal to or greater than the Fair Market Value on
the Date of Grant; provided, however, that the Purchase Price of each share
of Common Stock which may be purchased upon exercise of a Non-Qualified
Stock Option shall be no less than ninety percent (90%) of the Fair Market
Value on the Date of Grant if such discount is expressly granted in lieu of
a reasonable amount of salary or bonus; provided, further, that the
Purchase Price for shares of Common Stock purchased pursuant to Stock
Options designated by the Administrator as Incentive Stock Options shall be
equal to or greater than the Fair Market Value on the Date of Grant as
required under Section 422 of the Code and provided further that the
Purchase Price for shares of Common Stock purchased pursuant to Stock
Options designated by the Administrator as Performance Based Options shall
be equal to or greater than the Fair Market Value on the Date of Grant.

     6.03  DESIGNATION OF INCENTIVE STOCK OPTIONS.  Except as otherwise
expressly provided in the Plan, the Administrator may designate, at the
Date of Grant of each Option to a Participant that is an employee of the
Company or a Subsidiary, that the Option is an Incentive Stock Option under
Section 422 of the Code.

           (a)   INCENTIVE STOCK OPTION SHARE LIMITATION.  No Participant
     may be granted Incentive Stock Options under the Plan (or any other
     plans of the Company) which would result in stock 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, or
     which would entitle such Participant to purchase a number of shares
     greater than the maximum number permitted by Section 422 of the Code
     as in effect on the Date of Grant.

           (b)   OTHER INCENTIVE STOCK OPTION TERMS.  Whenever possible,
     each provision in the Plan and in every Option granted under this
     Plan which is designated by the Administrator as an Incentive Stock
     Option shall be interpreted in such a manner as to entitle the Option
     to the tax treatment afforded by Section 422 of the Code.  If any
     provision of this Plan or any Option designated by the Administrator
     as an Incentive Stock Option shall be held not to comply with
     requirements necessary to entitle such Option to such tax treatment,
     then (i) such provision shall be deemed to have contained from the
     outset such language as shall be necessary to entitle the Option to
     the tax treatment afforded under Section 422 of the Code, and
     (ii) all other provisions of this Plan and the Award Agreement shall
     remain in full force and effect.  If any agreement covering an Option
     designated by the Administrator to be an Incentive Stock Option under
     this Plan shall not explicitly include any terms required to entitle
     such Incentive Stock Option to the tax treatment afforded by Section
     422 of the Code, all such terms shall be deemed implicit in the
     designation of such Option and the Option shall be deemed to have
     been granted subject to all such terms.

     6.04  DESIGNATION OF PERFORMANCE BASED OPTIONS.  Except as otherwise
expressly provided in the Plan, the Administrator may designate, at the
Date of Grant of each Option to a Participant that is an employee of the
Company or a Subsidiary, that the Option is a Performance Based Option.  A
Performance Based Option shall have a Purchase Price not less than the Fair
Market Value on the Date of Grant and shall contain such other terms and
conditions as the Administrator may deem necessary so that, upon exercise
or at any other time, the Performance Based Option does not result in or
give rise to "applicable employee remuneration" within the meaning of
Section 162(m) of the Code.

                                   7

<PAGE>

     6.05  RIGHTS AS A STOCKHOLDER.  The Participant or any transferee of
an Option pursuant to Section 8.02 or Section 11.05 shall have no rights as
a stockholder with respect to any shares of 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
and cash or other property or distributions or other rights with respect to
any such shares of 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.

                             ARTICLE VII.

                       STOCK APPRECIATION RIGHTS
                       -------------------------

     7.01  POWER TO GRANT STOCK APPRECIATION RIGHTS.  The Administrator is
authorized to grant to any Participant, on such terms established by the
Administrator on or prior to the Date of Grant and subject to and not
inconsistent with the provisions of this Plan, the right to receive the
payment from the Company, payable as provided in Section 7.04, of an amount
equal to the Incremental Value of the Stock Appreciation Rights, which
shall be an amount equal to the remainder derived from subtracting (i) the
Exercise Price for the right established in the Award Agreement from
(ii) the Fair Market Value of a share of Common Stock on the date of
exercise.  The terms of any Stock Appreciation Right granted under the Plan
shall be set forth in an Award Agreement.

     7.02  TANDEM STOCK APPRECIATION RIGHTS.  The Administrator may grant
to any Participant a Stock Appreciation Right consistent with the
provisions of this Plan covering any share of Common Stock which is, at the
Date of Grant of the Stock Appreciation Right, also covered by an Option
granted to the same Participant, either prior to or simultaneously with the
grant to such Participant of the Stock Appreciation Right, provided:
(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 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.

     7.03  EXERCISE PRICE.  The Exercise Price established under any Stock
Appreciation Right granted under this Plan shall be determined by the
Administrator and, in the case of a tandem Stock Appreciation Right, shall
not be less than the Purchase Price of the related Option.  Upon exercise
of the Stock Appreciation Rights, the number of shares subject to exercise
under a related Option shall automatically be reduced by the number of
shares of Common Stock represented by the Option or portion thereof which
is surrendered as a result of the exercise of such Stock Appreciation
Rights.

     7.04  PAYMENT OF INCREMENTAL VALUE.  Any payment which may become due
from the Company by reason of Participant's exercise of a Stock
Appreciation Right may be paid to the Participant as determined by the
Administrator (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 the Common
Stock delivered in satisfaction of such payment shall be determined by
dividing the amount of the payment by the Fair Market Value on the date of
exercise.  The Administrator may determine whether payment upon exercise of
a Stock Appreciation Right will be made in cash or in stock, or a
combination thereof, upon or at any time prior to the exercise of such
Stock Appreciation Right.  No fractional share of Common Stock shall be
issued to make any payment; if any fractional shares would be issuable, the

                                   8

<PAGE>

mix of cash and Common Stock payable to the Participant shall be adjusted
as directed by the Administrator to avoid the issuance of any fractional
share.  Payment may be made in cash to Officers only if the Stock
Appreciation Right is exercised during the "window period" required under
Rule 16b-3(e)(3) and otherwise in accordance with Rule 16b-3.

                             ARTICLE VIII.

            TERMS OF OPTIONS AND STOCK APPRECIATION RIGHTS
            ----------------------------------------------

     8.01  DURATION OF OPTIONS AND STOCK APPRECIATION RIGHTS.  Options and
Stock Appreciation Rights shall terminate after the first to occur of the
following events:

           (a)   Expiration Date of the Award as provided in the Award
     Agreement; or

           (b)   Termination of the Award as provided in Section 8.02; or

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

           (d)   Solely in the case of tandem Stock Appreciation Rights,
     upon the Expiration Date of the related Option.

     8.02  EXERCISE ON DEATH OR TERMINATION OF EMPLOYMENT.

           (a)   Unless otherwise provided in the Award Agreement, in the
     event of the death of a Participant while an employee of the Company
     or a Subsidiary of the Company, the right to exercise all unexpired
     Awards shall be accelerated and shall accrue as of the date of death,
     and the Participant's Awards may be exercised by his Beneficiary at
     any time within one year after the date of the Participant's death.

           (b)   Unless otherwise provided in the Award Agreement, in the
     event of a Participant's Termination of Employment at any time for
     any reason (including disability or retirement) other than death or
     for "cause" (as defined in paragraph (d) below), an Award may be
     exercised, but only to the extent it was otherwise exercisable, on
     the date of Termination of Employment, within ninety days after the
     date of Termination of Employment.  In the event of the death of the
     Participant within the ninety-day period following Termination of
     Employment, his Award may be exercised by his Beneficiary within the
     one year period provided in subparagraph (a) above.

           (c)   With respect to an Award which is intended to constitute
     an Incentive Stock Option, upon Termination of Employment, such Award
     shall be exercisable as provided in Section 422 of the Code.

           (d)   In the event that a Participant's Termination of
     Employment is for "cause", all Awards shall terminate immediately
     upon Termination of Employment.  A Participant's employment shall be
     deemed to have been terminated for "cause" if such termination is
     determined, in the sole discretion of the Administrator, to have
     resulted from an act or omission by the Participant constituting
     active and deliberate dishonesty, as established by a final judgment
     or actual receipt of an improper benefit or profit in money, property
     or services, or from the Participant's continuous failure to perform
     his or her duties under any employment agreement in effect between
     the Participant and the Company in any material manner (or, in the
     absence of such an agreement, the consistent failure or refusal of
     the Participant to perform according to reasonable expectations and
     standards set by the Board and/or management consistent with
     Participant's title and position) after receipt of notice of such
     failure from the Company specifying how the Participant has so failed
     to perform.

                                   9

<PAGE>

     8.03  ACCELERATION OF EXERCISE TIME.  The Administrator, in its sole
discretion, shall have the right (but shall not in any case be obligated)
to permit purchase of shares under any Award prior to the time such Award
would otherwise become exercisable under the terms of the Award Agreement.

     8.04  EXTENSION OF EXERCISE TIME.  The Administrator, in its sole
discretion, shall have the right (but shall not in any case be obligated)
to permit any Award granted under this Plan to be exercised after its
Expiration Date or after the ninety day period following Termination of
Employment or service on the Board, subject, however, to the limitations
described in Section 8.01 (c) and (d).

     8.05  CONDITIONS FOR EXERCISE.  An Award Agreement may contain such
waiting periods, exercise dates and restrictions on exercise (including,
but not limited to, periodic installments which may be cumulative) as may
be determined by the Administrator at the Date of Grant.  No Stock
Appreciation Right may be exercised prior to six months from the Date of
Grant.

     8.06  CHANGE OF CONTROL EVENT.  Unless otherwise provided in the
Award Agreement, and subject to such other terms and conditions as the
Administrator may establish in the Award Agreement, upon the occurrence of
a Change of Control Event, irrespective of whether or not an Award is then
exercisable, the Participant shall have the right to exercise in full any
unexpired Award to the extent not theretofore exercised or terminated;
provided, however, that any Stock Appreciation Right so exercised must have
a Date of Grant at least six months prior to the date of exercise.

     8.07  EXERCISE PROCEDURES.  Each Option and Stock Appreciation Right
granted under the Plan shall be exercised by written notice to the Company
which must be received by the officer of the Company designated in the
Award Agreement on or before the Expiration Date of the Award.  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 Administrator may (but need
not) permit payment to be made by delivery to the Company of either
(a) shares of Common Stock (including shares issuable to the Participant
pursuant to the exercise of the Option), or (b) any combination of cash and
shares of Common Stock, or (c) such other consideration as the
Administrator deems appropriate and in compliance with applicable law
(including payment in accordance with a cashless exercise program under
which, if so instructed by the Participant, shares of Common Stock may be
issued directly to the Participant's broker or dealer upon receipt of the
Purchase Price in cash from the broker or dealer.)  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 transferred.  The Participant may not transfer
to the Company in satisfaction of the Purchase Price (y) a number of shares
which when multiplied times the Fair Market Value as of the date of
exercise would result in a product greater than the Purchase Price or (z)
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 used for any proper corporate purpose.  Unless the
Administrator 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.

                                  10

<PAGE>

                              ARTICLE IX.

                        RESTRICTED STOCK AWARDS
                        -----------------------

     9.01  RESTRICTED SHARE AWARDS.  The Administrator may grant to any
Participant an Award of Restricted Share Rights entitling such person to
receive shares of Common Stock in such quantity, and on such terms,
conditions and restrictions (whether based on performance standards,
periods of service or otherwise) as the Administrator shall determine on or
prior to the Date of Grant.  The terms of any Award of Restricted Share
Rights granted under the Plan shall be set forth in an Award Agreement.

     9.02  DURATION OF RESTRICTED SHARE RIGHTS.  In no event shall any
Restricted Share Rights granted entitle the holder to receive shares of
Common Stock free of all restrictions on transfer at any time prior to the
expiration of three years from the Date of Grant, and each Award Agreement
shall provide that the Participant shall remain employed by the Company or
a Subsidiary for that three year period (subject to the Company's or
Subsidiary's right to terminate such employment).

     9.03  FORFEITURE OF RESTRICTED SHARE RIGHTS.  Subject to Section
9.05, all Restricted Share Rights shall be forfeited and all Restricted
Share Awards shall terminate unless the Participant continues in the
service of the Company or a Subsidiary until the expiration of the
forfeiture and satisfies any other conditions set forth in the Award
Agreement.  If the Award Agreement shall so provide, in the case of death,
disability or retirement (as defined in the Award Agreement) of the
Participant, all of the shares covered by the Restricted Share Rights shall
immediately vest and any restrictions shall lapse as of the date of such
death, disability or retirement.

     9.04  DELIVERY OF SHARES UPON VESTING.  Upon the lapse of the
restrictions established in the Award Agreement, the Participant shall be
entitled to receive, without payment of any cash or other consideration,
certificates for the number of shares covered by the Award.

     9.05  WAIVER OR MODIFICATION OF FORFEITURE PROVISIONS.  The
Administrator has full power and authority to modify or waive any or all
terms, conditions or restrictions (other than the minimum restriction
period set forth in Section 9.02) applicable to any Restricted Share Rights
granted to a Participant under the Plan; provided that no modification
shall, without consent of the Participant, adversely affect the
Participant's rights thereunder and no modification shall reduce the
employment requirement to less than three years, except in the case of
death, disability or retirement.

     9.06  RIGHTS AS A STOCKHOLDER.  No person shall have any rights as a
stockholder with respect to any shares subject to Restricted Share Rights
until such time as the person shall have been issued a certificate for such
shares.

                                  11

<PAGE>

                              ARTICLE X.

                       OTHER STOCK BASED AWARDS
                       ------------------------

     10.01 GRANT OF OTHER AWARDS.  Other Awards of Common Stock or other
securities of the Company and other Awards that are valued in whole or in
part by reference to, or are otherwise based on, Common Stock ("Other
Awards") may be granted either alone or in addition to or in conjunction
with Options or Stock Appreciation Rights under the Plan.  Subject to the
provisions of the Plan, the Administrator shall have the sole and complete
authority to determine the persons to whom and the time or times at which
Other Awards shall be made, the number of shares of Common Stock or other
securities, if any, to be granted pursuant to such Other Awards, and all
other conditions of such Other Awards.  Any Other Award shall be confirmed
by an Award Agreement executed by the Administrator and the Participant,
which agreement shall contain such provisions as the Administrator
determines to be necessary or appropriate to carry out the intent of this
Plan with respect to the Other Award.

     10.02 TERMS OF OTHER AWARDS.  In addition to the terms and conditions
specified in the Award Agreement, Other Awards made pursuant to this
Article X shall be subject to the following:

           (a)   Any shares of Common Stock subject to such Other Awards
     may not be sold, assigned, transferred 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 Administrator and the Award
     Agreement, the recipient of an Other Award 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 Other Award; and

           (c)   The Award Agreement with respect to any Other Award shall
     contain provisions providing for the disposition of such Other Award
     in the event of Termination of Employment prior to the exercise,
     realization or payment of such Other Award, with such provisions to
     take account of the specific nature and purpose of the Other Award.

                              ARTICLE XI.

                    TERMS APPLICABLE TO ALL AWARDS
                    ------------------------------

     11.01 AWARD AGREEMENT.  The grant and the terms and conditions of the
Award shall be set forth in an Award Agreement between the Company and the
Participant.  No person shall have any rights under any Award granted under
the Plan unless and until the Administrator and the Participant to whom the
Award is granted shall have executed and delivered an Award Agreement
expressly granting the Award to such person and setting forth the terms of
the Award.

     11.02 PLAN PROVISIONS CONTROL AWARD TERMS.  The terms of the Plan
shall govern all Awards granted under the Plan, and in no event shall the
Administrator 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 4.03, (i) the terms of any Award granted
under the Plan may not be changed after the granting of such Award without
the express approval of the Participant and (ii) no modification may be
made to an Award granted to an Officer except in compliance with
Rule 16b-3.

                                  12

<PAGE>

     11.03 MODIFICATION OF AWARD AFTER GRANT.  Each Award granted under
the Plan to a Participant other than an Officer may be modified after the
date of its grant by express written agreement between the Company and the
Participant, provided that such change (i) shall not be inconsistent with
the terms of the Plan and (ii) shall be approved by the Administrator.  No
modifications may be made to any Awards granted to an Officer except in
compliance with Rule 16b-3.

     11.04 TAXES.  The Company shall be entitled, if the Administrator
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 stock upon
exercise or vesting of an Award unless indemnified to its satisfaction
against any liability for such tax.  The amount of such withholding or tax
payment shall be determined by the Administrator and, unless otherwise
provided by the Administrator, shall be payable by the Participant at the
time of issuance or payment in accordance with the following rules:

           (a)   A Participant, other than an Officer, shall have the
     right to elect to meet his or her withholding requirement by:  (1)
     having the Company withhold from such Award the appropriate number of
     shares of Common Stock, rounded out to the next whole number, the
     Fair Market Value of which is equal to such amount, or, in the case
     of the cash payment, the amount of cash, as is determined by the
     Company to be sufficient to satisfy applicable tax withholding
     requirements; or (2) direct payment to the Company in cash of the
     amount of any taxes required to be withheld with respect to such
     Award.

           (b)   Unless otherwise provided by the Administrator, with
     respect to Officers, the Company shall withhold from such Award the
     appropriate number of shares of Common Stock, rounded up to the next
     whole number, the Fair Market Value of which is equal to the amount,
     as determined by the Administrator, (or, in the case of a cash
     payment, the amount of cash) required to satisfy applicable tax
     withholding requirements.

           (c)   In the event that an Award or property received upon
     exercise of an Award has already been transferred to the Participant
     on the date upon which withholding requirements apply, the
     Participant shall pay directly to the Company the cash amount
     determined by the Company to be sufficient to satisfy applicable
     federal, state or local withholding requirements.  The Participant
     shall provide to the Company such information as the Company
     shall require to determine the amounts to be withheld and the time
     such withholding requirements become applicable.

           (d)   If permitted under applicable federal income tax laws, a
     Participant may elect to be taxed in the year in which an Award is
     exercised or received, even if it would not otherwise have become
     taxable to the Participant.  If the Participant makes such an
     election, the Participant shall promptly notify the Company in
     writing and shall provide the Company with a copy of the executed
     election form as filed with the Internal Revenue Service no later
     than thirty days from the date of exercise or receipt. Promptly
     following such notification, the Participant shall pay directly to
     the Company the cash amount determined by the Company to be
     sufficient to satisfy applicable federal, state or local withholding
     tax requirements.

                                  13

<PAGE>

     11.05 LIMITATIONS ON TRANSFER.  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.  Notwithstanding the foregoing, or any
other provision of this Plan, a Participant who holds Non-Qualified Stock
Options may transfer such Options to his or her spouse, lineal ascendants,
lineal descendants, or to a duly established trust for the benefit of one
or more of these individuals.  Options so transferred may thereafter be
transferred only to the Participant who originally received the Options or
to an individual or trust to whom the Participant could have initially
transferred the Option pursuant to this Section 11.05.  Options which are
transferred pursuant to this Section 11.05 shall be exercisable by the
transferee according to the same terms and conditions as applied to the
Participant.

     11.06 GENERAL RESTRICTION.  Notwithstanding anything to the contrary
herein, the Company shall have no obligation or liability to deliver any
shares of Common Stock under the Plan or to make any other distribution of
benefits under the Plan unless such delivery or distribution would comply
with all applicable laws, rules and regulations, including, without
limitation, the Securities Act of 1933, as amended, and the Exchange Act.

     11.07 SURRENDER OF AWARDS.  Any Award granted under the Plan may be
surrendered to the Company for cancellation on such terms as the
Administrator and Participant approve, including, but not limited to, terms
which provide that upon such surrender the Company will pay to the
Participant cash or Common Stock, or a combination of cash and Common
Stock.

                             ARTICLE XII.

                          GENERAL PROVISIONS
                          ------------------

     12.01 AMENDMENT AND TERMINATION OF PLAN.

           (a)   AMENDMENT.  The Board shall have complete power and
     authority to amend the Plan at any time and to add any other stock
     based Award or other incentive compensation programs to the Plan as
     it deems necessary or appropriate and no approval by the stockholders
     of the Company or by any other person, committee or entity of any
     kind shall be required to make any amendment; provided, however, that
     the Board shall not, without the requisite affirmative approval of
     the stockholders of the Company, (i) make any amendment which
     requires stockholder approval under any applicable law, including
     Rule 16b-3 or the Code; or (ii) which, unless approved by the
     requisite affirmative approval of stockholders of the Company, would
     cause, result in or give rise to "applicable employee remuneration"
     within the meaning of Section 162(m) of the Code with respect to any
     Performance Based Option.  No termination or amendment of the Plan
     may, without the consent of the Participant to whom any Award shall
     theretofore have been granted under the Plan, adversely affect the
     right of such individual under such Award.  For the purposes of this
     section, an amendment to the Plan shall be deemed to have the
     affirmative approval of the stockholders of the Company if such
     amendment shall have been submitted for a vote by the stockholders at
     a duly called meeting of such stockholders at which a quorum was
     present and the majority of votes cast with respect to such amendment
     at such meeting shall have been cast in favor of such amendment, or
     if the holders of outstanding stock having not less than a majority
     of the outstanding shares consent to such amendment in writing in the
     manner provided under the Company's bylaws.

                                  14

<PAGE>

           (b)   TERMINATION.  The Board shall have the right and the
     power to terminate the Plan at any time.  If the Plan is not earlier
     terminated, the Plan shall terminate when all shares authorized under
     the Plan have been issued.  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 if the Plan
     had not been terminated.

     12.02 NO RIGHT TO EMPLOYMENT.  No employee or other person shall have
any claim or right to be granted an Award under this Plan.  Neither the
Plan nor any action taken hereunder shall be construed as giving any
employee any right to be retained in the employ of the Company or a
Subsidiary of the Company.

     12.03 COMPLIANCE WITH RULE 16b-3.  It is intended that the Plan be
applied and administered in compliance with Rule 16b-3.  If any provision
of the Plan would be in violation of Rule 16b-3 if applied as written, such
provision shall not have effect as written and shall be given effect so as
to comply with Rule 16b-3, as determined by the Administrator.  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.

     12.04 SECURITIES LAW RESTRICTIONS.  The shares of Common Stock
issuable pursuant to the terms of any Awards granted under the Plan may not
be issued by the Company without registration or qualification of such
shares under the Securities Act of 1933, as amended, or under various state
securities laws or without an exemption from such registration
requirements.  Unless the shares to be issued under the Plan have been
registered and/or qualified as appropriate, the Company shall be under no
obligation to issue shares of Common Stock upon exercise of an Award unless
and until such time as there is an appropriate exemption available from the
registration or qualification requirements of federal or state law as
determined by the Administrator in its sole discretion.  The Administrator
may require any person who is granted an award hereunder to agree with the
Company to represent and agree in writing that if such shares are issuable
under an exemption from registration requirements, the shares will be
"restricted" securities which may be resold only in compliance with
applicable securities laws, and that such person is acquiring the shares
issued upon exercise of the Award for investment, and not with the view
toward distribution.

     12.05 NONEXCLUSIVITY OF THE PLAN.  Neither the adoption of the Plan
by the Board nor the submission of the Plan to the stockholders of the
Company for approval shall be construed as creating any limitations on the
power of the Board to adopt such other incentive arrangements as it may
deem desirable, including, without limitation, the granting of stock or
stock options otherwise than under the Plan.

     12.06 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.

                                  15

<PAGE>

     12.07 SEVERABILITY.  Whenever possible, each provision in the Plan
and every Award at any time granted under the Plan shall be interpreted in
such a manner as to be effective and valid under applicable law, but if any
provision of the Plan or any Award at any time granted under the Plan shall
be held to be prohibited 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.

     12.08 NO STRICT CONSTRUCTION.  No rule of strict construction shall
be implied against the Company, the Administrator, 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 Administrator.

     12.09 CHOICE OF LAW.  The Plan shall be governed by and construed in
accordance with the laws of the State of Michigan.

                                  16

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