Document:

Exhibit 10.10.2

 

AMENDMENT TO

CHANGE IN CONTROL AGREEMENT

 

This AMENDMENT is made and entered into as of           ,
2007, by and between Investment Technology Group, Inc. (the “Company”) and
             (the “Executive”).

 

WHEREAS, the Company and the Executive previously entered into that
certain Change in Control Agreement, dated as of                       
(the “CIC Agreement”); and

 

WHEREAS, the parties now wish to amend the CIC Agreement to provide
that payments due to the Executive under the CIC Agreement upon the Executive’s
termination of employment in connection with a Change in Control (as defined in
the CIC Agreement) will be compliant with the applicable requirements of section
409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the
regulations promulgated thereunder.

 

NOW, THEREFORE, the parties mutually acknowledge and agree that,
effective as of the date hereof, the CIC Agreement is hereby amended as
follows:

 

1.             The
definition of “Good Reason” in Section 2 is hereby deleted and replaced in
its entirety with the following:

 

“Good Reason” means, without the
Executive’s express written consent, the occurrence after a Change in Control
of the Company of any one or more of the following:

 

(i)            a
material reduction of the Executive’s primary functional authorities, duties,
or responsibilities as an executive and/or officer of the Company from those in
effect immediately prior to the Change in Control or the assignment of duties
to the Executive inconsistent with those of an executive of the Company, other
than an insubstantial and inadvertent reduction or assignment that is remedied
by the Company promptly after receipt of notice thereof given by the Executive;
provided, however, that any reduction in authorities, duties or
responsibilities resulting merely from the acquisition of the Company and its
existence as a subsidiary or division of another entity shall not be sufficient
to constitute Good Reason;

 

(ii)           the
Company’s requiring the Executive to be based at a location in excess of thirty
five (35) miles from the location of the Executive’s principal job location or
office immediately prior to the Change in Control;

 

(iii)          a
material reduction by the Company of the Executive’s base salary in effect on
the date hereof, or as the same shall be increased from time to time, unless
such reduction applies on substantially the same percentage basis to all
employees of the Company generally;

 

 

(iv)          a
material reduction in the Executive’s participation in any of the Company’s annual
incentive compensation plans in which the Executive participates prior to the
Change in Control, unless such failure applies to all plan participants
generally;

 

(v)           the
failure of the Company to obtain the assumption of the obligations contained in
this Agreement by any successor as contemplated in Section 9(c) hereof;
and

 

(vi)          a
material breach of this Agreement by the Company.

 

provided,
however, that for any of the foregoing to constitute Good Reason, the
Executive must provide written notification of his intention to resign within 30
days after the Executive knows or has reason to know of the occurrence of any
such event, and the Company shall have 30 business days from the date of
receipt of such notice to effect a cure of the condition constituting Good
Reason, and, upon cure thereof by the Company, such event shall no longer
constitute Good Reason.  A termination of
employment by the Executive within a Protection Period shall be for Good Reason
if one of the occurrences specified above shall have occurred, notwithstanding
that the Executive may have other reasons for terminating employment, including
employment by another employer which the Executive desires to accept.

 

For purposes of this Agreement, it shall be a material breach of this
Agreement by the Company if the Company decreases the Executive’s Target Annual
Compensation by more than ten percent (10%).

 

2.             Section 3
is hereby deleted and replaced in its entirety with the following:

 

3.             Benefits Upon Termination Within
Protection Period.  If, within a
Protection Period, the Executive’s employment by the Company shall be
terminated (a) by the Company not for Cause and not due to the Executive’s
death or Disability, or (b) by the Executive for Good Reason, the
Executive shall be entitled to the benefits provided for below:

 

(i)            the Company shall pay to the Executive,
through the date of the Executive’s termination of employment, base salary at
the rate then in effect, together with base salary in lieu of vacation accrued
to the date on which his employment terminates, in accordance with the standard
payroll practices of the Company;

 

(ii)           the Company shall pay to the Executive an
amount in cash equal to the Executive’s target annual bonus for the year that
includes the date of the Executive’s termination of employment, pro rated for
the number of full and partial months during the bonus year prior to such
termination of employment, and such payment shall be made in a lump sum within
10 business days after the date of such termination of employment;

 

(iii)          the Company shall pay to the Executive an
amount in cash equal to           
times the sum of (A) the Executive’s annual base salary in effect
immediately prior to the date of the Executive’s termination of employment or
the date of the Change in Control (whichever is higher), and (B) the
average of the Executive’s annual bonuses for the three years immediately
preceding the Executive’s termination of employment (or such shorter period
during which the Executive has been employed by the Company and eligible to 

 

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receive annual
bonuses, or if the Executive was not employed by the Company and eligible to
receive an annual bonus in any prior year, the Executive’s target annual bonus
for the year including the date of Executive’s termination of employment); and
such payment shall be made in a lump sum within 10 business days after the date
of such termination of employment;

 

(iv)    the Company shall continue to cover the Executive
and his or her dependents under, or provide the Executive and his or her
dependents with insurance coverage no less favorable than, the Company’s health,
dental and vision plans or programs (as in effect on the day immediately
preceding the Protection Period or, at the option of the Executive, on the date
of termination of his or her employment) for a period equal to the lesser of (x)         
year following the date of termination or (y) until the Executive is
provided by another employer with benefits substantially comparable to the
benefits provided by such plans or programs. 
The Executive shall promptly inform the Company in writing when he or
she obtains other employment and shall provide a written description to the
Company of the health, dental and vision plans
and programs provided to the Executive by such employer; and

 

(v)     the Company shall
pay to the Executive an amount in cash equal to the premium cost that the
Company would have paid to maintain disability and life insurance coverage for
the Executive and his or her dependents, as applicable, under the Company’s
disability and life insurance plans or programs (in each case, as in effect on
the day immediately preceding the Protection Period or, at the option of the
Executive, on the date of termination of his or her employment) had the
Executive remained employed by the Company for a period equal to the lesser of (x)       
year following the date of termination or (y) until the Executive is
provided by another employer with benefits substantially comparable to the
benefits provided by such disability and/or life insurance plans or programs;
and such payments shall be made on the first payroll date of each month
commencing with the first month following the Executive’s termination of
employment and each month thereafter until fully paid in accordance with this
subparagraph (v).  The Executive shall promptly inform the Company in
writing when he or she obtains other employment and shall provide a written
description to the Company of the disability and life insurance plans and programs
provided to the Executive by such employer.

 

Anything in this Agreement to
the contrary notwithstanding, the Executive shall be entitled to the benefits
described in this Section 3, if the Executive’s employment with the
Company is terminated by the Company (other than for Cause) within six months
prior to the date on which a Change in Control occurs, and it is reasonably
demonstrated that such termination (i) was at the request of a third party
who has taken steps reasonably calculated or intended to effect a Change in Control
or (ii) otherwise arose in connection with or anticipation of a Change in
Control.  In such event, amounts will be
payable hereunder only following the Change in Control.  For the avoidance of doubt, the Executive
shall not be entitled to the benefits provided in Section 3 hereof upon
any termination of his or her employment with the Company (a) because of
his or her death, (b) because of his or her Disability, (c) by the
Company for Cause, or (d) by the Executive other than for Good Reason.

 

3

 

3.             Section 6 is hereby deleted and
replaced in its entirety with the following:

 

6.             Full-Settlement; Legal Expenses.  The Company’s obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations hereunder
shall not be affected by any set-off, counterclaim, recoupment, defense or
other claim, right or action which the Company may have against the Executive
or others.  In no event shall the Executive
be obligated to seek other employment or take any other action by way of
mitigation of the amounts payable to the Executive under any of the provisions
of this Agreement, and no amount payable hereunder shall be subject to
reduction or offset on account of any subsequent compensation, other than as
provided in Sections 3(iv) and 3(v). 
The Company agrees to pay, upon written demand therefore by the
Executive, all legal fees and expenses which the Executive may reasonably incur
as a result of any dispute or contest by or with the Company or others
regarding the validity or enforceability of, or liability under, any provision
of this Agreement (including as a result of any contest by the Executive about
the amount of any payment hereunder) if the Executive prevails on any material
claim or defense in the dispute or contest. 
The Company will provide such payment or reimbursement, as applicable,
within 60 days of the Company’s receipt of the Executive’s demand, but not
later than December 31 of the year in which the Executive is determined to
have prevailed on any material claim or defense in the dispute or contest.  In any such action brought by the Executive
for damages or to enforce any provisions of this Agreement, the Executive shall
be entitled to seek both legal and equitable relief and remedies, including,
without limitation, specific performance of the Company’s obligations
hereunder, in his or her sole discretion.

 

4.             Section 7(a) is hereby deleted
and replaced in its entirety with the following:

 

7.             Excise Tax.

 

(a)           Anything in this
Agreement to the contrary notwithstanding, if it shall be determined that any
payment, distribution or benefit provided (including, without limitation, the
acceleration of any payment, distribution or benefit and the acceleration of
vesting of any equity-based or other compensation) to the Executive or for his
or her benefit (whether paid or payable or distributed or distributable
pursuant to the terms of this Agreement or otherwise) would be subject, in
whole or in part, to the excise tax imposed by Section 4999 of  the Code (the “Excise Tax”), then the amounts
payable to the Executive under this Agreement shall be reduced (by the minimum
possible amount) until no amount payable to the Executive is subject to the
Excise Tax; provided, however, that no such reduction shall be
made if the net after-tax benefit (after taking into account federal, state,
local or other income, employment, self-employment and excise taxes) to which
the Executive would otherwise be entitled without such reduction would be
greater than the net after-tax benefit (after taking into account federal,
state, local or other income, employment, self-employment and excise taxes) to
the Executive resulting from the receipt of such payments with such
reduction.  If, as a result of subsequent
events or conditions, it is determined that payments have been reduced by more
than the minimum amount required under this Section 7, then an additional
payment shall be made to the Executive in an amount equal to the excess reduction
within 60 days of the date on which the amount of the excess reduction is
determined but not later than December 31 of the year in which the excess
reduction is determined.

 

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5.             Effective as of the date hereof, a new Section 11
is added to the CIC Agreement to read as follows:

 

11.           Section 409A.

 

(a)           This Agreement shall be
interpreted to avoid any penalty sanctions under section 409A of the Code.  If any payment or benefit cannot be provided
or made at the time specified herein without incurring sanctions on Executive
under section 409A of the Code, then such benefit or payment shall be provided
in full at the earliest time thereafter when such sanctions will not be
imposed.  All payments to be made upon a
termination of employment under this Agreement may only be made upon a “separation
from service” under section 409A of the Code. 
All reimbursements and in-kind benefits provided under this Agreement
shall be made or provided in accordance with the requirements of section 409A
of the Code, including, where applicable, the requirement that (i) any
reimbursement shall be for expenses incurred during Executive’s lifetime (or
during a shorter period of time specified in this Agreement), (ii) the
amount of expenses eligible for reimbursement, or in kind benefits provided,
during a calendar year may not affect the expenses eligible for reimbursement,
or in kind benefits to be provided, in any other calendar year, (iii) the
reimbursement of an eligible expense will be made on or before the last day of
the calendar year following the year in which the expense is incurred, and (iv) the
right to reimbursement or in kind benefits is not subject to liquidation or
exchange for another benefit.

 

(b)           Notwithstanding any
provision of this Agreement to the contrary, if, at the time of Executive’s
termination of employment with the Company, the Executive has securities which
are publicly traded on an established securities market and Executive is a “specified
employee” (as defined in section 409A of the Code) and the deferral of the
commencement of any severance payments otherwise payable pursuant to this
Agreement as a result of such termination of employment is necessary in order
to prevent any accelerated or additional tax under section 409A of the Code,
then the Company will defer the commencement of the payment of any such
payments or benefits hereunder (without any reduction in such payments or
benefits ultimately paid or provided to Executive) that are not otherwise paid
within the short-term deferral exception under section 409A of the Code and are
in excess of the lesser of (i) two times Executive’s then annual
compensation or (ii) two times the limit on compensation then set forth in
section 401(a)(17) of the Code, until the first payroll date that occurs after
the date that is six months following Executive’s “separation of service” with
the Company (as defined under code Section 409A of the Code).  If any payments are deferred due to such
requirements, such amounts will be paid in a lump sum to the Executive on the
first payroll date that occurs after the date that is six months following the
Executive’s “separation of service” with the Company.  If the Executive dies during the postponement
period prior to the payment of postponed amount, the amounts withheld on
account of section 409A of the Code shall be paid to the personal
representative of Executive’s estate within 60 days after the date of Executive’s
death.  The Company shall consult with
the Executive in good faith regarding the implementation of the provisions of
this paragraph.

 

6.             In all respects not amended, the CIC Agreement
is hereby ratified and confirmed.

 

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7.             For convenience, this Amendment may be executed
in any number of identical counterparts, each of which shall be deemed a
complete original in itself and may be introduced in evidence or used for any
other purposes without the production of any other counterparts.

 

8.             This Amendment shall be governed by and
construed in accordance with the laws of the State of New York, without
reference to principles of conflict of laws thereof.

 

IN WITNESS WHEREOF, the undersigned have
executed this Amendment as of the date first above written.

 

 

INVESTMENT TECHNOLOGY
GROUP, INC.

 

 

	
  By:

  	
   

  	
   

  
	
  Name: Robert
  C. Gasser

  	
   

  
	
  Title: CEO
  and President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  EXECUTIVE

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
				

 

6Exhibit 10.13.2

 

AMENDED AND RESTATED

INVESTMENT TECHNOLOGY GROUP, INC.

PAY-FOR-PERFORMANCE INCENTIVE
PLAN

 

1. PURPOSE

 

The purpose of this Pay-For-Performance
Incentive Plan (the “Plan”) is to assist Investment Technology Group, Inc.
(the “Company”) and its subsidiaries in attracting, retaining, and rewarding,
by payment of competitive levels of compensation, employees who occupy key
positions relating to the Company and specified business units, and motivating
such employees to expend greater efforts in promoting the growth and annual
profitability of the Company and its subsidiaries, through the award of annual
incentives.

 

2. DEFINITIONS

 

In addition to the terms defined in Section 1
hereof, the following terms used in the Plan shall have the meanings set forth
below:

 

(a) “Award” means the amount potentially
payable to a Participant upon achievement of specified Performance Objectives
for a Performance Period, as provided in Section 4, subject to possible
forfeiture and other terms and conditions of the Plan.

 

(b) “Business Unit” means the Company or
any department, division, subsidiary, or other business unit or function of the
Company for which separate operational financial results are available to the
Committee, as designated by the Committee from time to time.

 

(c) “Business Unit Income” means the
pre-tax net income of a specified Business Unit for the Performance Period,
subject to the provisions of Section 4(b).

 

(d) “Code” means the Internal Revenue
Code of 1986, as amended. References to any provision of the Code or regulation
thereunder shall be deemed to include successor provisions or regulations.

 

(e) “Committee” means the Compensation
Committee of the Board of Directors, or such subcommittee thereof as may be
designated by the Board of Directors or the Compensation Committee to
administer the Plan. In appointing members of the Committee, the Board shall
consider whether each member qualifies as an “outside director” for purposes of
section 162(m) of the Code and regulations thereunder.

 

(f)  “Disability” shall have the meaning
ascribed to such term in section 22(e)(3) of the Code.

 

(g) “Eligible Employee” means each
executive officer or key employee who is in charge of a Business Unit or whose
performance can be expected to have a substantial effect on the results of a
Business Unit, as determined by the Committee.

 

1

 

(h) “Participant” means an Eligible
Employee granted an Award by the Committee for a designated Performance Period.

 

(i) “Performance Objectives” means the
measures of performance pre-established by the Committee in accordance with Section 4,
the achievement of which, in a given Performance Period, is a condition of
payment of final Awards.

 

(j) “Performance Period” means the
fiscal year (or such other period established by the Committee) to which an
Award relates; provided, however, that, with respect to any Participant, the
Committee may determine to grant an Award after the start of a Performance
Period, and for any such Participant, the Performance Period shall be the
portion of the fiscal year (or such other period established by the Committee)
subsequent to such grant, as determined by the Committee, in each case, in
compliance with section 162(m) of the Code.

 

(k) “Revenues” means all revenues
generated by a specified Business Unit for the Performance Period.

 

(l) “EVA” (economic value added) means
the amount by which a Business Unit’s after-tax income exceeds the cost of the
capital used by the Business Unit during the Performance Period. To determine
such cost of the capital used, the Committee will, when it establishes a
Performance Objective based on EVA, determine the average cost of capital for
the Company (stated as a percentage) for the Performance Period, which cost of
capital will be multiplied by the amount of capital actually used by the
Business Unit during the Performance Period.

 

3. ADMINISTRATION

 

(a) Generally. The Committee shall
administer the Plan in accordance with its terms, and shall have all powers
necessary to accomplish such purpose. The Committee shall have the power and
authority to construe and interpret the Plan, to define the terms used herein,
to prescribe, amend, and rescind rules and regulations as well as forms
and notices relating to the administration of the Plan, and to make all other
determinations necessary or advisable for the administration of the Plan. Any
action or determination of the Committee with respect to the Plan shall be
conclusive and binding upon all persons, including the Company, Participants,
and stockholders.

 

(b) Limitation of Liability. Each member
of the Committee shall be entitled to, in good faith, rely or act upon any
report or other information furnished to him by any officer or other employee
of the Company or any subsidiary, the Company’s independent certified public
accountants, or any executive compensation consultant, legal counsel, or other
professional retained by the Company to assist in the administration of the
Plan. Neither a member of the Committee nor any officer or employee of the
Company or a subsidiary acting on behalf of the Committee shall be personally
liable for any action, determination, or interpretation taken or made in good
faith with respect to the Plan, and such persons shall, to the extent permitted
by law, be fully indemnified, reimbursed, and protected by the Company, as
provided in the 

 

2

 

Company’s Certificate of Incorporation and By-Laws, with respect to any
such action, determination, or interpretation.

 

4. AWARDS

 

(a) Granting of Awards. Prior to the
date on which Performance Objectives must be established in order to comply
with section 162(m) of the Code with respect to each Performance Period,
the Committee, in its sole discretion, shall select the Eligible Employees to
whom Awards will be granted for such Performance Period and will establish the
amount of each Award or the formula by which such amount may be determined, the
Performance Objectives relating to such Award, and other terms of such Award.
An Eligible Employee may be granted an Award for more than one Business Unit.

 

(b) Performance
Objectives. The Performance Objectives for an Award shall consist of a
specified percentage or percentages of the Business Unit Income, Revenues and/or
EVA of a Business Unit, the results of which the Committee believes will be
substantially affected by the performance of the Participant. The Committee may
specify that the final Award shall be a payment of such specified percentage or
percentages to the Participant, or shall be a payment of an amount specified or
determined by formula in some other manner but conditioned upon achievement of
such specified percentage or percentages (in each case subject to the terms of
the Plan). The Committee may specify in the Performance Objectives a target
amount of Business Unit Income, Revenues, or EVA of such Business Unit required
before any or specified parts of the Award will become payable, and may express
the Performance Objectives by way of a comparison with like measures of
Business Unit performance in one or more prior periods or similar measures of
performance of other companies or businesses; provided, however, that the
Committee shall include such terms in the case of a Performance Objective based
on Revenues as may be necessary so that achievement of the Performance
Objective is substantially uncertain. The Committee shall, in its sole
discretion, establish Awards and Performance Objectives, subject to Section 4(c).
Performance Objectives shall be objective and shall otherwise meet the
requirements of section 162(m)(4)(C) of the Code and regulations
thereunder (including Treasury Regulation 1.162-27(e)(2)). Performance
Objectives may differ for Awards to different Participants. Only the business
criteria specified in this Section 4(b) may be used in establishing
Performance Objectives upon which the maximum amount of final payment of an
Award is conditioned, although the Committee may consider other measures of
performance as a basis for reducing such amount (including under Section 4(d)).
To the extent consistent with section 162(m)(4)(C) of the Code and
regulations thereunder (including Treasury Regulation 1.162-27(e)(2)), the
Committee may do the following:

 

(i) provide that the Business Unit
Income, Revenues, or EVA of the Business Unit considered as the Performance
Objective shall be adjusted downward to reflect specified charges, expenses,
and other amounts (including amounts that would otherwise constitute bonuses
(under the Plan or otherwise), capital charges, general and administrative
expenses, or taxes);

 

(ii) adjust or modify Awards or terms of
Awards and Performance Objectives (x) in recognition of unusual or
nonrecurring events affecting the Company or any Business Unit, or the 

 

3

 

financial statements or results thereof, or in response to changes in
applicable laws (including tax, disclosure, and other laws), regulations,
accounting principles, or other circumstances deemed relevant by the Committee,
(y) with respect to any Participant whose position or duties with the
Company or any subsidiary changes during a Performance Period, or (z) with
respect to any person who first becomes a Participant after the first day of
the Performance Period, in each case subject to Section 4(h);

 

(iii) defer all or any part of any
interim payments until certification of the final Award for the Performance
Period;

 

(iv) defer all or any part of final
Award payments, including until the earliest time such payments may be made
without causing them to fail to be deductible by the Company under section 162(m) of
the Code; such deferrals may include deferrals in the form of units valued by
reference to the value of Company stock, settleable in cash or by issuance of
shares drawn from any other plan of the Company under which issuance of such
shares to a Participant is authorized; and

 

(v) consider other performance criteria
in exercising discretion under Section 4(d) hereof.

 

(c) Maximum Award. The maximum
percentage of Business Unit Income, Revenues and EVA of a Business Unit that
may be specified as the Performance Objectives and therefore potentially
payable under an Award to any Participant for any Performance Period shall be
30%, 10%, and 25%, respectively. In addition, the maximum combined percentage
of the Business Unit Income, Revenues and EVA of a Business Unit that may be
specified as the Performance Objectives for Awards to all Participants with
respect to any one Business Unit shall be 30%, 10% and 25%, respectively.

 

(d) Determination of Amounts Payable;
Limits on Discretion. As promptly as practicable following the end of each
Performance Period, the Committee shall determine whether and the extent to
which the terms of Awards have been satisfied, including the extent to which
Performance Objectives have been achieved and other material terms of Awards
have been satisfied, and the amounts payable to each Participant with respect
to his or her Award. Such determinations shall be set forth in a written
certification (including for this purpose approved minutes of the meeting at
which such determinations were made). The Committee may, in its sole
discretion, in view of its assessment of the business strategy of the Company
and Business Units thereof, performance of comparable organizations, economic
and business conditions, personal performance of the Participant, and any other
circumstances deemed relevant, decrease the amount determined to be payable as
a final Award or cancel such Award. Other provisions of the Plan
notwithstanding, the Committee shall have no discretion to increase the amounts
payable with respect to an Award.

 

(e) Termination. If a Participant ceases
to be employed by the Company or a participating subsidiary prior to the end of
a Performance Period for any reason other than death, Disability, normal
retirement, or early retirement with the approval of the Committee, no final
Award for such Performance Period shall be payable to such Participant. If such
cessation of employment 

 

4

 

results from such Participant’s death, Disability, normal retirement,
or early retirement with the approval of the Committee, the Committee shall
determine, in its sole discretion and in such manner as it may deem reasonable
(subject to Section 4(h)), the amount payable as a final Award under Section 4(d) achieved
or resulting from the portion of such Performance Period completed at the date
of cessation of employment, and the amount of the final Award payable based on
such determinations. The Committee may base such determination on the
performance achieved for the full year, in which case its determination shall
be made as promptly as practicable following the Performance Period. Such
determinations shall be set forth in a written certification, as specified in Section 4(d).
Such Participant or his or her beneficiary shall be entitled to receive payment
of such final Award, reduced by any payments previously received, on or after January 1
but before March 15 of the year following the year in which the relevant Performance
Period ends; provided that such payment may only be made at the earliest time
such payment may be made without causing the payment to fail to be deductible
by the Company under Code section 162(m). In the event the final Award is less
than the payments previously made to the Participant, the Participant shall
repay such amounts to the Company forthwith. The foregoing notwithstanding, no
payment shall be made hereunder if such payment shall be duplicative of severance
amounts paid to the participant or his or her beneficiary.

 

(f) Payment of Awards. Except as
provided in Section 4(e) and this Section 4(f) and subject
to the other provisions of Section 4, each Participant may receive interim
payments as frequently as semimonthly, at the Committee’s discretion, provided,
however, that any such payments made exceeding the final Award as certified by
the Committee shall be repaid to the Company forthwith. If and to the extent
specified by the Committee, each Participant shall have the right to defer his
or her receipt of part or all of any payment due with respect to an Award under
and in accordance with the terms and conditions of any deferred compensation
plan then available to Participant as an employee of the Company. If a
Participant dies prior to payment (including deferred payment) of a final Award
hereunder, any payments due to such Participant shall be paid to the
Participant’s estate, unless the Participant designated a certain person(s) as
beneficiary(ies) in an election form filed with the Committee and specifically
applicable to amounts payable under the Plan at the same time such payments
would have otherwise been payable to the Participant in accordance with Section 4(e) and
without regard to any deferral election.

 

(g) Tax Withholding. The Company and any
participating subsidiary shall have the right to deduct from any amount payable
hereunder any amounts that federal, state, local, and foreign tax laws require
to be withheld with respect to such payment.

 

(h) Conformity of Plan to Code section
162(m). It is the intent of the Company that compensation under the Plan (other
than post-termination compensation) shall constitute “performance-based
compensation” within the meaning of Code section 162(m)(4)(C) and
regulations thereunder (including Treasury Regulation 1.162-27(e)).
Accordingly, terms used in the Plan shall be interpreted in a manner consistent
with section 162(m) of the Code and regulations thereunder (including
Treasury Regulation 1.162-27). If any provision of the Plan or any agreement
evidencing an Award hereunder does not comply or is inconsistent with the
provisions of section 162(m)(4)(C) of the Code or regulations thereunder
(including Treasury 

 

5

 

Regulation 1.162-27(e)) required to be met in order that compensation
(other than post-termination compensation) shall constitute “performance-based
compensation,” such provision shall be construed or deemed amended to the
extent necessary to conform to such requirements, and no adjustment to an Award
or its related Performance Objectives shall be authorized or made, and no
post-termination payment shall be authorized or made under Section 4(e),
if and to the extent that such authorization or the making of such adjustment
or payment would contravene such requirements.

 

5. GENERAL PROVISIONS

 

(a) No Rights to Final Award or Rights
to Participate. Until the Committee has determined to make a final Award to a
Participant under Section 4(d) or (e), a Participant’s selection to
participate, grant of an Award, and other events under the Plan shall not be
construed as a commitment that any Award shall become a final Award or that
payment will be made with respect to an Award under the Plan. Nothing in the
Plan shall be deemed to give any Eligible Employee any right to participate in
the Plan except upon determination of the Committee under Section 4. The
foregoing and Section 5(b) notwithstanding, the Committee may
authorize legal commitments with respect to Awards under the terms of an
employment agreement or other agreement with a Participant, to the extent of
the Committee’s authority under the Plan, including commitments that limit the
Committee’s future discretion under the Plan, but in all cases subject to Section 4(h).

 

(b) No Rights to Employment. Nothing
contained in the Plan or in any documents evidencing an Award shall confer upon
any Eligible Employee or Participant any right to continue as an Eligible
Employee or in the employ of the Company or a subsidiary or constitute any
contract or agreement of employment, or interfere in any way with the right of
the Company or a subsidiary to reduce such person’s compensation, to change the
position held by such person, or to terminate the employment of such person,
with or without cause.

 

(c) Non-Transferability. No benefit
payable under, or interest in, this Plan shall be transferable by a Participant
except upon a Participant’s death by will or the laws of descent and
distribution or to a designated beneficiary, or otherwise be subject in any
manner to anticipation, alienation, sale, transfer, assignment, pledge,
encumbrance, or charge, and any such attempted action shall be void.

 

(d) Unfunded Plan. The Plan is intended
to constitute an “unfunded” plan for incentive and deferred compensation. With
respect to any amounts payable to a Participant pursuant to an Award, nothing
contained in the Plan (or in any documents related thereto), nor the creation
or adoption of the Plan, the grant of any Award, or the taking of any other
action pursuant to the provisions of the Plan shall give any such Participant
any rights that are greater than those of a general creditor of the Company.

 

(e) Participation in Other Compensation
or Benefit Plans. Nothing in the Plan shall preclude any Participant from
participation in any other compensation or benefit plan of the Company.

 

6

 

(f) Governing Law. The Plan and all
related documents shall be governed by, and construed in accordance with, the
laws of the State of New York (except to the extent the Delaware General
Corporation Law and provisions of federal law may be applicable), without
reference to principles of conflict of laws. If any provision hereof shall be
held by a court of competent jurisdiction to be invalid and unenforceable, the
remaining provisions of the Plan shall continue to be fully effective.

 

(g)  Section 409A.  The Plan is intended to comply with the
short-term deferral rule set forth in the regulations under section 409A
of the Code, in order to avoid application of section 409A to the Plan.  If and to the extent that any payment under
this Plan is deemed to be deferred compensation subject to the requirements of
section 409A, this Plan shall be administered so that such payments are made in
accordance with the requirements of section 409A.  In no event shall a Participant, directly or
indirectly, designate the calendar year of payment.

 

(h) Amendment and Termination of Plan
and Awards. The Board of Directors may, at any time, terminate or, from time to
time, amend, modify, or suspend the Plan, provided that any such action shall
be subject to stockholder approval if and to the extent required by law,
regulation, or the rules of any stock exchange or automated quotation
system upon which the Company’s Common Stock may be listed or quoted, or to
comply with Code section 162(m). Except as provided in Section 4
(including the limitation under Section 4(h)) and under Section 5(a),
the Committee may modify the terms and provisions of any Awards theretofore
awarded to any Participants which have not become final Awards and been settled
by payment (or would have been settled by payment but for an election to defer
payment pursuant to Section 4(f)).

 

(i) Effective Date. The Plan was
originally effective as of January 1, 1997, for Performance Periods
beginning on or after such date, and shall remain in effect until such time as
it may be terminated pursuant to Section 5(h).  The effective date of the Plan as amended and
restated herein is February 7, 2008.

 

(j) Stockholder Approval. Prior to
completion of the initial Performance Period under the Plan, the Plan shall be
submitted to, and must be approved in a separate vote by, the affirmative votes
of the holders of a majority of voting securities present in person or
represented by proxy and entitled to vote on the subject matter, at a meeting
of Company stockholders duly held in accordance with the Delaware General
Corporation Law, or any adjournment thereof, or by the written consent of the
holders of a majority of voting securities entitled to vote, in accordance with
applicable provisions of the Delaware General Corporation Law and section 162(m) of
the Code. Any Awards granted under the Plan prior to such approval of stockholders
shall be effective when granted, but if stockholders fail to approve the Plan
as specified hereunder, any previously granted Award shall be forfeited and
cancelled and any payments previously made with respect to such Awards shall be
repaid to the Company forthwith, and no Awards shall be thereafter granted
under the Plan. In addition, the Committee may determine to submit the Plan to
stockholders for reapproval at such times, if any, required in order that
compensation under the Plan shall qualify as “performance-based compensation”
under Code section 162(m) and the regulations thereunder.

 

7

 

As approved by the Compensation Committee and adopted by the Board of
Directors on March 26, 1997.

 

Amended by the Board of Directors on June 30, 2000.

 

Amended and Restated by the Board of Directors on March 19, 2003.

 

Amended and Restated by the Board of Directors effective February 7,
2008.

 

8

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