Document:

dcmi8kex10_1.htm

    
      

    

    EXHIBIT 10.1

     

    

      AMENDMENT
NO. 1 TO THE LETTER OF INTENT

       

       

      Amendment No. 1 (the “Amendment No.
1”), dated as of September 15, 2008, to the Letter of Intent, dated as of July
23, 2008, entered into by and among Denali Concrete Management Inc., a Nevada
corporation (“Denali”), and ZZPartners, Inc., a Nevada corporation
(“ZZP”).

       

      WITNESSETH:

       

      WHEREAS,
DENALI, and ZZP entered into the Letter of Intent as of July 23, 2008;
and

       

      WHEREAS,
DENALI and ZZP desire to amend the Letter of Intent for the reasons and in the
manner hereinafter set forth.

       

      NOW,
THEREFORE, in consideration of the mutual covenants and agreements contained
herein, and for other good and valuable consideration the receipt and
sufficiency of which is hereby acknowledged the parties hereto agree as
follows:

       

      
        	
                1. 

              	
                The
      section of the Letter of Intent titled “STRUCTURE” is hereby amended by
      deleting the date August 31, 2008, in the second line thereof and
      inserting the date October 15,
2008.

              

      

       

      
        	
                2. 

              	
                ZZP
      will pay an additional $25,000 non-refundable deposit for the extension
      which will be applied to the $130,000 due at closing. This deposit will
      follow the same parameters as the initial $50,000 deposit regarding
      refundable status.  Therefore, the new amount due at closing
      will be $105,000.

              

      

       

      
        	
                3. 

              	
                Except
      as explicitly amended by this Amendment No. 1, all of the terms and
      conditions of the Letter of Intent shall remain in full force and effect
      and the Letter of Intent, as hereby amended, is ratified and
      affirmed.

              

      

       

      
        	
                4. 

              	
                This
      Amendment No. 1 may be executed in any number of counterparts, each of
      which when so executed and delivered shall be deemed an original and all
      of which counterparts, taken together, shall constitute one and the same
      instrument.

              

      

       

      IN
WITNESS WHEREOF, each party hereto has caused this Amendment No. 1 to be duly
executed as of the date first above written.

       

      DENALI
CONCRETE MANAGEMENT, INC.

       

      By: ____________________ 

      Name:

      Title:

       

      ZZPartners,
INC.

       

      By: ____________________

      Name:

      Title:Exhibit 10.1

 

TYCO INTERNATIONAL LTD.

2004 STOCK AND INCENTIVE PLAN

(AMENDED AND RESTATED AS OF SEPTEMBER
10, 2008)

 

ARTICLE I

 

PURPOSE

 

       1.1    Purpose.    The purposes of this Tyco International Ltd.
2004 Stock and Incentive Plan (the “Plan”) are to promote the interests of Tyco
International Ltd. (and any successor thereto) by (i) aiding in the
recruitment and retention of Directors and Employees, (ii) providing
incentives to such Directors and Employees by means of performance-related
incentives to achieve short-term and long-term performance goals, (iii) providing
Directors and Employees an opportunity to participate in the growth and
financial success of the Company, and (iv) promoting the growth and
success of the Company’s business by aligning the financial interests of
Directors and Employees with that of the other stockholders of the Company.
Toward these objectives, the Plan provides for the grant of Stock Options,
Stock Appreciation Rights, Annual Performance Bonuses, Long Term Performance Awards
and other Stock-Based Awards.

 

       1.2    Effective Date; Shareholder Approval.    The Plan was effective as of January 1,
2004   The Plan was approved by the
Company’s shareholders on March 25, 2004. 
The effective date of this amended and restated Plan is May 10,
2007. The effective date of this amended and restated Plan is September 10,
2008.

 

ARTICLE II

DEFINITIONS

 

       For purposes of the Plan, the following
terms have the following meanings, unless another definition is clearly
indicated by particular usage and context:

 

       “Acquired Company” means any business, corporation or other entity acquired by
the Company or any Subsidiary.

 

       “Acquired Grantee” means the grantee of a stock-based award of an Acquired
Company and may include a current or former Director of an Acquired Company.

 

       “Annual Performance Bonus” means an Award of cash or Shares
granted under Section 4.4 of the Plan that is paid solely on account of
the attainment of a specified performance target in relation to one or more
Performance Measures.

 

       “Award”  means any form
of incentive or performance award granted under the Plan, whether singly or in
combination, to a Participant by the Committee pursuant to any terms and
conditions that the Committee may establish and set forth in the applicable
Award Certificate. Awards granted under the Plan may consist of:

 

       (a)    “Stock
Options” awarded
pursuant to Section 4.3;

 

       (b)    “Stock
Appreciation Rights”
awarded pursuant to Section 4.3;

 

       (c)    “Annual
Performance Bonuses”
awarded pursuant to Section 4.4;

 

       (d)    “Long
Term Performance Awards”
awarded pursuant to Section 4.5;

 

       (e)    “Other
Stock-Based Awards”
awarded pursuant to Section 4.6;

 

       (f)    “Director
Awards” awarded
pursuant to Section 4.7; and

 

       (g)    “Substitute
Awards” awarded
pursuant to Section 4.8.

 

       “Award Certificate” means the document issued, either in writing or an electronic
medium, by the Committee to a Participant evidencing the grant of an Award.

 

1

 

       “Board” means the Board of Directors of the Company.

 

       “Cause” means misconduct that is willfully or wantonly harmful to the
Company or any of its Subsidiaries, monetarily or otherwise.

 

       “Change in Control” means the first to occur of any of the following events:

 

       (a)    any “person” (as defined in Section 13(d) and
14(d) of the Exchange Act, excluding for this purpose, (i) the
Company or any Subsidiary or (ii) any employee benefit plan of the Company
or any Subsidiary (or any person or entity organized, appointed or established
by the Company for or pursuant to the terms of any such plan that acquires
beneficial ownership of voting securities of the Company), is or becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act) directly or
indirectly of securities of the Company representing more than 30 percent of
the combined voting power of the Company’s then outstanding securities;
provided, however, that no Change in Control will be deemed to have occurred as
a result of a change in ownership percentage resulting solely from an
acquisition of securities by the Company; or

 

       (b)    persons who, as of the Effective Date
constitute the Board (the “Incumbent Directors”) cease for any reason
(including without limitation, as a result of a tender offer, proxy contest,
merger or similar transaction) to constitute at least a majority thereof,
provided that any person becoming a Director of the Company subsequent to the
Effective Date shall be considered an Incumbent Director if such person’s
election or nomination for election was approved by a vote of at least 50
percent of the Incumbent Directors; but provided further, that any such person
whose initial assumption of office is in connection with an actual or
threatened proxy contest relating to the election of members of the Board or
other actual or threatened solicitation of proxies or consents by or on behalf
of a “person” (as defined in Section 13(d) and 14(d) of the
Exchange Act) other than the Board, including by reason of agreement intended
to avoid or settle any such actual or threatened contest or solicitation, shall
not be considered an Incumbent Director; or

 

       (c)    consummation of a reorganization, merger or
consolidation or sale or other disposition of at least 80 percent of the assets
of the Company (a “Business Combination”), in each case, unless, following such
Business Combination, all or substantially all of the individuals and entities
who were the beneficial owners of outstanding voting securities of the Company
immediately prior to such Business Combination beneficially own directly or
indirectly more than 50 percent of the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, of the company resulting from such Business Combination (including,
without limitation, a company which, as a result of such transaction, owns the
Company or all or substantially all of the Company’s assets either directly or
through one or more Subsidiaries) in substantially the same proportions as
their ownership, immediately prior to such Business Combination, of the
outstanding voting securities of the Company; or

 

       (d)    approval by the stockholders of the Company
of a complete liquidation or dissolution of the Company;

 

provided,
however, that if and to the extent that any provision of this Plan or an Award
Certificate applicable to a Long Term Performance Award, a Restricted Unit
Award or a Deferred Stock Unit Award would cause a payment of deferred
compensation that is subject to Code Section 409A(a)(2) to be made
upon the occurrence of a “Change in Control” or upon a “Change in Control
Termination” occurring in connection with a “Change in Control”, then such
payment shall not be made unless such “Change in Control” satisfies the
requirements of Code Section 409A(2)(A)(v) and applicable regulations
and rulings thereunder.

 

    “Change in Control
Termination” shall mean an Employee’s Involuntary Termination that
occurs during the period beginning 60 days prior to the date of a Change in
Control and ending two years after the date of such Change in Control.

 

       “Code” means the United States Internal
Revenue Code of 1986, as amended.

 

       “Committee” means the Compensation
Committee of the Board or any successor committee or subcommittee 

 

2

 

of the
Board, which Committee is comprised solely of two or more persons who are
outside directors within the meaning of Section 162(m)(4)(C)(i) of
the Code and the applicable regulations and nonemployee directors within the
meaning of Rule 16b-3(b)(3) under the Exchange Act.

 

       “Common Stock” means the common stock of
the Company, $0.20 (U.S.) par value, and such other securities or property as
may become subject to Awards pursuant to an adjustment made under Section 5.3
of the Plan.

 

       “Company” means Tyco International Ltd., a
Bermuda company, or any successor thereto.

 

       “Deferred Stock Unit” means a Unit granted
under Section 4.6 to acquire Shares upon Termination of Directorship or
Termination of Employment, subject to any restrictions that the Committee, in
its discretion, may determine.

 

       “Director” means a member of the Board who
is a “non-employee director” within the meaning of Rule 16b-3(b)(3) under
the Exchange Act.

 

       “Disabled” or “Disability” means the inability of the Director or Employee
to perform the material duties pertaining to such Director’s directorship or
such Employee’s employment due to a physical or mental injury, infirmity or
incapacity for 180 days (including weekends and holidays) in any 365-day
period. The existence or nonexistence of a Disability shall be determined by an
independent physician selected by the Company and reasonably acceptable to the
Director or Employee.    Notwithstanding
the above, if and to the extent that any provision of this Plan or an Award
Certificate applicable to a Long Term Performance Award, a Restricted Unit Award
or a Deferred Stock Unit Award would cause a payment of deferred compensation
that is subject to Code Section 409A(a)(2) to be made upon the
occurrence of a “Disability” or upon a person becoming “Disabled,” then such
payment shall not be made unless such “Disability” or condition of being “Disabled”
satisfies the requirements of Code Section 409A(2)(C) and applicable
regulations and rulings thereunder.

 

       “Dividend Equivalent” means an amount equal
to the cash dividend or the Fair Market Value of the stock dividend that would
be paid on each Share underlying an Award if the Share were duly issued and
outstanding on the date on which the dividend is payable.

 

       “Effective Date” means January 1,
2004.  The effective date of this amended
and restated Plan is September 10, 2008.

 

       “Employee” means any individual who
performs services as an officer or employee of the Company or a Subsidiary.

 

       “Exchange Act” means the United States
Securities Exchange Act of 1934, as amended.

 

       “Exercise Price” means the price of a
Share, as fixed by the Committee, which may be purchased under a Stock Option
or with respect to which the amount of any payment pursuant to a Stock
Appreciation Right is determined.

 

       “Fair Market Value” of a Share means the
closing sales price on the New York Stock Exchange on the date as of which the
determination of Fair Market Value is being made or, if no sale is reported for
such day, on the next preceding day on which a sale of Shares was reported.   Notwithstanding anything to the contrary
herein, the Fair Market Value of a Share will in no event be determined to be
less than par value.

 

       “Fair Market Value Stock Option” means a
Stock Option the Exercise Price of which is fixed by the Committee at a price
equal to the Fair Market Value of a Share on the date of grant.

 

       “GAAP” means United States generally
accepted accounting principles.

 

       “Incentive Stock Option” means a Stock
Option granted under Section 4.3 of the Plan that meets the requirements
of Section 422 of the Code and any related regulations and is designated
in the Award Certificate to be an Incentive Stock Option.

 

3

 

       “Involuntary Termination” means a Termination of Employment of
the Participant initiated by the Company or a Subsidiary for any reason other
than Cause, Disability or death.

 

       “Key Employee” means an Employee who is a “covered
employee” within the meaning of Section 162(m)(3) of the Code.

 

       “Long Term Performance Award” means an
Award granted under Section 4.5 of the Plan that is paid solely on account
of the attainment of a specified performance target in relation to one or more
Performance Measures.

 

       “Non-Employee Director” means any member of
the Board, elected or appointed, who is not otherwise an Employee of the
Company or a Subsidiary. An individual who is elected to the Board at an annual
meeting of the stockholders of the Company will be deemed to be a member of the
Board as of the date of the meeting.

 

       “Nonqualified Stock Option” means any Stock
Option granted under Section 4.3 of the Plan that is not an Incentive
Stock Option.

 

       “Normal Retirement” means Termination of
Employment on or after a Participant has attained age 60, provided that the sum
of the Participant’s age and years of service with the Company is 70 or higher.

 

       “Participant” means a Director, Employee or
Acquired Grantee who has been granted an Award under the Plan.

 

       “Performance Cycle” means, with respect to
any Award that vests based on Performance Measures, the period of 12 months or
longer over which the level of performance will be assessed. The first
Performance Cycle under the Plan will begin on such date as is set by the
Committee, in its discretion.

 

       “Performance Measure” means, with respect
to any Annual Performance Bonus or Long Term Performance Award, the business
criteria selected by the Committee to measure the level of performance of the
Company during the Performance Cycle. The Committee may select as the
Performance Measure for a Performance Cycle any one or combination of the
following Company measures, as interpreted by the Committee, which measures (to
the extent applicable) will be determined in accordance with GAAP:

 

        (a)  Net operating profit after
taxes;

 

        (b) 
Net operating profit after taxes, per Share;

 

        (c) 
Return on invested capital;

 

        (d) 
Return on assets or net assets;

 

        (e) 
Total shareholder return;

 

         (f) 
Relative total shareholder return (as compared with a peer group of the
Company);

 

        (g) 
Earnings before income taxes;

 

        (h) 
Earnings per Share;

 

         (i) 
Net income;

 

         (j) 
Free cash flow;

 

        (k) 
Free cash flow per Share;

 

         (l)  Revenue (or any component
thereof); or

 

4

 

       (m) 
Revenue growth.

 

       “Performance Unit” means a Long Term
Performance Award denominated in dollar Units.

 

          “Permanent
Disability” means that an Employee has a permanent and total incapacity from
engaging in any employment for the Company for physical or mental reasons.  A “Permanent Disability” shall be deemed to
exist if the Employee meets the requirements for disability benefits under the
Company’s or a Subsidiary’s long-term disability plan or under the requirements
for disability benefits under the Social Security law (or similar law outside
the United States, if the Employee is employed in that jurisdiction) then in
effect, or if the Employee is designated with an inactive employment status at
the end of a disability or medical leave.

 

       “Plan” means the Tyco  International Ltd. 2004 Stock and Incentive
Plan, as it may be amended from time to time.

 

       “Premium-Priced Stock Option” means a Stock
Option the Exercise Price of which is fixed by the Committee at a price that
exceeds the Fair Market Value of a Share on the date of grant.

 

       “Reporting Person” means a Director or an
Employee who is subject to the reporting requirements of Section 16(a) of
the Exchange Act.

 

       “Restricted Stock” means Shares issued
pursuant to Section 4.6 that are subject to any restrictions that the
Committee, in its discretion, may impose.

 

       “Restricted Unit” means a Unit granted
under Section 4.6 to acquire Shares or an equivalent amount in cash, which
Unit is subject to any restrictions that the Committee, in its discretion, may
impose.

 

       “Securities Act” means the United States
Securities Act of 1933, as amended.

 

       “Share” means a share of Common Stock.

 

       “Stock Appreciation Right” means a right
granted under Section 4.3 of the Plan to an amount in cash or Shares equal
to any difference between the Fair Market Value of the Shares as of the date on
which the right is exercised and the Exercise Price.

 

       “Stock-Based Award” means an Award granted
under Section 4.6 of the Plan and denominated in Shares.

 

       “Stock Option” means a right granted under Section 4.3
of the Plan to purchase from the Company a stated number of Shares at a
specified price. Stock Options awarded under the Plan may be in the form of
Incentive Stock Options or Nonqualified Stock Options.

 

       “Subsidiary” means a subsidiary company
(wherever incorporated) of the Company, as defined by Section 86 of the
Companies Act 1981 of Bermuda, as amended.

 

       “Target Amount” means the amount of
Performance Units that will be paid if the Performance Measure is fully (100%)
attained, as determined by the Committee.

 

       “Target Vesting Percentage” means the
percentage of performance-based Restricted Units or Shares of Restricted Stock
that will vest if the Performance Measure is fully (100%) attained, as
determined by the Committee.

 

       “Termination of Directorship” means the
date of cessation of a Director’s membership on the Board for any reason, with
or without Cause, as determined by the Company.

 

       “Termination of Employment” means the date
of cessation of an Employee’s employment relationship with the Company or a
Subsidiary for any reason, with or without Cause, as determined by the Company.

 

5

 

       “Unit” means, for purposes of Performance
Units, the potential right to an Award equal to a specified amount denominated
in such form as is deemed appropriate in the discretion of the Committee and,
for purposes of Restricted Units or Deferred Stock Units, the potential right
to acquire one Share.

 

ARTICLE III

ADMINISTRATION

 

       3.1    Committee.    The Plan will be administered by the Committee.

 

       3.2    Authority of the Committee.    The Committee or, to the extent required by
applicable law, the Board will havethe authority, in its sole and absolute
discretion and subject to the terms of the Plan, to:

 

        (a) 
Interpret and administer the Plan and any instrument or agreement relating to
the Plan;

 

        (b) 
Prescribe the rules and regulations that it deems necessary for the proper
operation and administration of the Plan, and amend or rescind any existing rules or
regulations relating to the Plan;

 

        (c) 
Select Employees to receive Awards under the Plan;

 

        (d) 
Determine the form of an Award, the number of Shares subject to each Award, all
the terms and conditions of an Award, including, without limitation, the
conditions on exercise or vesting, the designation of Stock Options as
Incentive Stock Options or Nonqualified Stock Options, and the circumstances in
which an Award may be settled in cash or Shares or may be cancelled, forfeited
or suspended, and the terms of the Award Certificate;

 

        (e) 
Determine whether Awards will be granted singly, in combination or in tandem;

 

         (f) 
Establish and interpret Performance Measures in connection with Annual
Performance Bonuses and Long Term Performance Awards, evaluate the level of
performance over a Performance Cycle and certify the level of performance
attained with respect to Performance Measures;

 

        (g) 
Waive or amend any terms, conditions, restriction or limitation on an Award,
except that the prohibition on the repricing of Stock Options and Stock
Appreciation Rights, as described in Section 4.3(g), may not be waived;

 

        (h) 
Make any adjustments to the Plan (including but not limited to adjustment of
the number of Shares available under the Plan or any Award) and any Award
granted under the Plan as may be appropriate pursuant to Section 5.3;

 

         (i) 
Determine under which circumstances Awards may be deferred and the extent to
which a deferral will be credited with Dividend Equivalents and interest
thereon;

 

         (j) 
Determine whether a Nonqualified Stock Option or Restricted Share may be
transferable to family members, a family trust or a family partnership;

 

        (k) 
Establish any subplans and make any modifications to the Plan or to Awards made
hereunder (including the establishment of terms and conditions not otherwise
inconsistent with the terms of the Plan) that the Committee  may
determine to be necessary or advisable for grants made in countries outside the
United States to comply with, or to achieve favorable tax treatment under,
applicable foreign laws or regulations;

 

         (l) 
Appoint such agents as it shall deem appropriate for proper administration of
the Plan; and

 

6

 

       (m) 
Take any and all other actions it deems necessary or advisable for the proper
operation or administration of the Plan.

 

       3.3    Effect of Determinations.    All determinations of the Committee will be
final, binding and conclusive on all persons having an interest in the Plan.

 

       3.4    Delegation of Authority.    The Board or, if permitted under applicable
corporate law, the Committee, in its discretion and consistent with applicable
law and regulations, may delegate to the Chief Executive Officer of the Company
or any other officer or group of officers as it deems to be advisable, the
authority to select Employees to receive an Award and to determine the number
of Shares under any such Award, subject to any terms and conditions that the
Board or the Committee may establish. When the Board or the Committee delegates
authority pursuant to the foregoing sentence, it will limit, in its discretion,
the number of Shares that may be subject to Awards that the delegate may grant.
Only the Committee will have authority to grant and administer Awards to
Directors, Key Employees and other Reporting Persons or to delegates of the
Committee, and to establish and certify Performance Measures.

 

       3.5    Employment of Advisors.    The Committee may employ attorneys,
consultants, accountants and other advisors, and the Committee, the Company and
the officers and directors of the Company may rely upon the advice, opinions or
valuations of the advisors employed.

 

       3.6    No Liability.    No member of the Committee or any person
acting as a delegate of the Committee with respect to the Plan will be liable
for any losses resulting from any action, interpretation or construction made
in good faith with respect to the Plan or any Award granted under the Plan.

 

ARTICLE IV

AWARDS

 

       4.1    Eligibility.    All Participants and Employees are eligible
to be designated to receive Awards granted under the Plan, except as otherwise
provided in this Article IV.

 

       4.2    Form of Awards.    Awards will be in the form determined by the
Committee, in its discretion, and will be evidenced by an Award Certificate.
Awards may be granted singly or in combination or in tandem with other Awards.

 

       4.3    Stock Options and Stock Appreciation Rights.
   The Committee may grant
Stock Options and Stock Appreciation Rights under the Plan to those Employees
whom the Committee may from time to time select, in the amounts and pursuant to
the other terms and conditions that the Committee, in its discretion, may
determine and set forth in the Award Certificate, subject to the provisions
below:

 

       (a)    Form.    Stock Options granted under the Plan will,
at the discretion of the Committee and as set forth in the Award Certificate,
be in the form of Incentive Stock Options, Nonqualified Stock Options or a
combination of the two. If an Incentive Stock Option and a Nonqualified Stock
Option are granted to the same Participant under the Plan at the same time, the
form of each will be clearly identified, and they will be deemed to have been
granted in separate grants. In no event will the exercise of one Award affect
the right to exercise the other Award. Stock Appreciation Rights may be granted
either alone or in connection with concurrently or previously granted
Nonqualified Stock Options.

 

       (b)    Exercise
Price.    The Committee will
set the Exercise Price of Fair Market Value Stock Options or Stock Appreciation
Rights granted under the Plan at a price that is equal to the Fair Market Value
of a Share on the date of grant, subject to adjustment as provided in Section 5.3.
The Committee will set the Exercise Price of Premium-Priced Stock Options at a
price that is higher than the Fair Market Value of a Share as of the date of
grant, provided that such price is no higher than 150 percent of such Fair
Market Value. The Exercise Price of Incentive Stock Options will be equal to or
greater than 110 percent of the Fair Market Value of a Share as of the date of
grant if the Participant receiving the Stock Options owns stock possessing more
than 10 percent of the total combined voting power of all classes of stock of
the Company or any subsidiary or parent corporation of the Company, as defined
in Section 424 of the Code. The Exercise Price of a Stock Appreciation
Right granted in tandem with a Stock Option will equal the Exercise Price of
the related Stock Option. The Committee will set forth the Exercise Price of a
Stock Option or Stock Appreciation Right in the Award Certificate. Stock
Options granted under the Plan will, at the discretion of the Committee and as
set forth in the Award Certificate, be Fair Market 

 

7

 

Value
Stock Options, Premium-Priced Stock Options or a combination of Fair Market
Value Stock Options and Premium-Priced Stock Options.

 

       (c)    Term and
Timing of Exercise.    Each
Stock Option or Stock Appreciation Right granted under the Plan will be
exercisable in whole or in part, subject to the following conditions, unless
determined otherwise by the Committee:

 

       (i)    The Committee will determine and set forth
in the Award Certificate the date on which any Award of Stock Options or Stock
Appreciation Rights to a Participant may first be exercised. Unless the
applicable Award Certificate provides otherwise, a Stock Option or Stock
Appreciation Right will become exercisable in equal annual installments over a
period of four years beginning immediately after the date on which the Stock
Option or Stock Appreciation Right was granted, and will lapse 10 years after
the date of grant, except as otherwise provided herein.

 

       (ii)    Unless the applicable Award Certificate
provides otherwise, upon the death, Disability or Normal Retirement of a
Participant who has outstanding Stock Options or Stock Appreciation Rights, the
unvested Stock Options or Stock Appreciation Rights will vest. Unless the
applicable Award Certificate provides otherwise, the Participant’s Stock
Options and Stock Appreciation Rights will lapse, and will not thereafter be
exercisable, upon the earlier of (A) their original expiration date or (B) the
date that is three years after the date on which the Participant dies, incurs a
Disability or retires.

 

       (iii)    Unless the applicable Award Certificate
provides otherwise, upon the Termination of Employment of a Participant for any
reason other than the Participant’s death, Disability or Normal Retirement or a
Change in Control, if the Participant has attained age 55, and the sum of the
Participant’s age and years of service with the Company is 60 or higher, a pro
rata portion of the Participant’s Stock Options and Stock Appreciation Rights
will vest so that the total number of vested Stock Options or Stock
Appreciation Rights held by the Participant at Termination of Employment
(including those that have already vested as of such date) will be equal to (A) the
total number of Stock Options or Stock Appreciation Rights originally granted
to the Participant under each Award multiplied by (ii) a fraction, the
numerator of which is the period of time (in whole months) that have elapsed
since the date of grant, and the denominator of which is four years (or such
other applicable vesting term as is set forth in the Award Certificate). Unless
the Award Certificate provides otherwise, such Participant’s Stock Options and
Stock Appreciation Rights will lapse, and will not thereafter be exercisable,
upon the earlier of (A) their original expiration date or (B) the
date that is three years after the date of Termination of Employment.

 

       (iv) 
Upon the Termination of Employment of a Participant that does not meet the
requirements of paragraphs (ii) or (iii) above, any unvested Stock
Options or Stock Appreciation Rights will be forfeited unless the Award
Certificate provides otherwise. Any Stock Options or Stock Appreciation Rights
that are vested as of such Termination of Employment will lapse, and will not
thereafter be exercisable, upon the earlier of (A) their original
expiration date or (B) the date that is six months after the date of such
Termination of Employment unless the Award Certificate provides otherwise.

 

        (v) 
Stock Options and Stock Appreciation Rights of a deceased Participant may be
exercised only by the estate of the Participant or by the person given authority
to exercise the Stock Options or Stock Appreciation Rights by the Participant’s
will or by operation of law. If a Stock Option or Stock Appreciation Right is
exercised by the executor or administrator of a deceased Participant, or by the
person or persons to whom the Stock Option or Stock Appreciation Right has been
transferred by the Participant’s will or the applicable laws of descent and
distribution, the Company will be under no obligation to deliver Shares or cash
until the Company is satisfied that the person exercising the Stock Option or
Stock Appreciation Right is the duly appointed executor or administrator of the
deceased Participant or the person to whom the Stock Option or Stock
Appreciation Right has been transferred by the Participant’s will or by
applicable laws of descent and distribution.

 

       (vi) 
A Stock Appreciation Right granted in tandem with a Stock Option is subject to
the same terms and conditions as the related Stock Option and will be
exercisable only to the extent that the related Stock Option is exercisable.

 

8

 

      (vii) 
Stock Options and Stock Appreciation Rights will become immediately exercisable
upon a Change in Control.

 

       (d)    Payment of
Exercise Price.    The
Exercise Price of a Stock Option must be paid in full when the Stock Option is
exercised. Stock certificates will be registered and delivered only upon
receipt of payment. Payment of the Exercise Price may be made in cash or by
certified check, bank draft, wire transfer, or postal or express money order,
provided that the format is approved by the Company or a designated third-party
administrator. The Committee, in its discretion may also allow payment to be
made by any of the following methods, as set forth in the Award Certificate:

 

       (i)    Delivering a properly executed exercise
notice to the Company or its agent, together with irrevocable instructions to a
broker to deliver to the Company, within the typical settlement cycle for the
sale of equity securities on the relevant trading market (or otherwise in
accordance with the provisions of Regulation T issued by the Federal Reserve
Board), the amount of sale proceeds with respect to the portion of the Shares
to be acquired having a Fair Market Value on the date of exercise equal to the
sum of the applicable portion of the Exercise Price being so paid;

 

       (ii)    Tendering (actually or by attestation) to
the Company previously acquired Shares that have been held by the Participant
for at least six months, subject to paragraph (iv), and that have a Fair Market
Value on the day prior to the date of exercise equal to the applicable portion
of the Exercise Price being so paid, provided that the Board has specifically
approved the repurchase of such Shares (unless such approval is not required by
the terms of the bye-laws of the Company) and the Committee has determined
that, as of the date of repurchase, the Company is, and after the repurchase
will continue to be, able to pay its liabilities as they become due; or

 

       (iii)    Provided such payment method has been
expressly authorized by the Board or the Committee in advance and subject to
any requirements of applicable law and regulations, instructing the Company to
reduce the number of Shares that would otherwise be issued by such number of
Shares as have in the aggregate a Fair Market Value on the date of exercise
equal to the applicable portion of the Exercise Price being so paid.

 

       (iv)    The Committee, in consideration of
applicable accounting standards, may waive any holding period on Shares
required to tender pursuant to clause (ii).

 

       (e)    Incentive
Stock Options.    Incentive
Stock Options granted under the Plan will be subject to the following
additional conditions, limitations and restrictions:

 

       (i)    Eligibility.
   Incentive Stock Options may
be granted only to Employees of the Company or a Subsidiary that is a
subsidiary or parent corporation of the Company, within the meaning of Section 424
of the Code.

 

       (ii)    Timing of Grant.    No Incentive Stock Option will be granted
under the Plan after the 10-year anniversary of the date on which the Plan is
adopted by the Board or, if earlier, the date on which the Plan is approved by
the Company’s stockholders.

 

       (iii)    Amount of
Award.    Subject to Section 5.3
of the Plan, no more than 10 million Shares may be available for grant in the
form of Incentive Stock Options. The aggregate Fair Market Value (as of the
date of grant) of the Shares with respect to which the Incentive Stock Options
awarded to any Employee first become exercisable during any calendar year may
not exceed $100,000 (U.S.). For purposes of this $100,000 (U.S.) limit, the
Employee’s Incentive Stock Options under this Plan and all other plans
maintained by the Company and its Subsidiaries will be aggregated. To the
extent any Incentive Stock Option would exceed the $100,000 (U.S.) limit, the
Incentive Stock Option will afterwards be treated as a Nonqualified Stock
Option for all purposes.

 

       (iv)    Timing of
Exercise.    If the Committee
exercises its discretion in the Award Certificate to permit an Incentive Stock
Option to be exercised by a Participant more than three months after the
Participant has ceased being an Employee (or more than 12 months if the
Participant is permanently and totally 

 

9

 

disabled,
within the meaning of Section 22(e) of the Code), the Incentive Stock
Option will afterwards be treated as a Nonqualified Stock Option for all
purposes. For purposes of this paragraph (iv), an Employee’s employment
relationship will be treated as continuing intact while the Employee is on
military leave, sick leave or another approved leave of absence if the period
of leave does not exceed 90 days, or a longer period to the extent that the
Employee’s right to reemployment with the Company or a Subsidiary is guaranteed
by statute or by contract. If the period of leave exceeds 90 days and the
Employee’s right to reemployment is not guaranteed by statute or contract, the
employment relationship will be deemed to have ceased on the 91st day of the
leave.

 

       (v)    Transfer
Restrictions.    In no event
will the Committee permit an Incentive Stock Option to be transferred by an
Employee other than by will or the laws of descent and distribution, and any
Incentive Stock Option awarded under this Plan will be exercisable only by the
Employee during the Employee’s lifetime.

 

       (f)    Exercise of
Stock Appreciation Rights.    Upon exercise of a Participant’s Stock
Appreciation Rights, the Company will pay cash or Shares or a combination of
cash and Shares, in the discretion of the Committee and as described in the
Award Certificate. Cash payments will be equal to the excess of the Fair Market
Value of a Share on the date of exercise (or, if the Committee shall so
determine, any date during a specified period before or after the date of
exercise) over the Exercise Price, for each Share for which a Stock
Appreciation Right was exercised. If Shares are paid for the Stock Appreciation
Right, the Participant will receive a number of whole Shares equal to the
quotient of the cash payment amount divided by the Fair Market Value of a Share
on the date of exercise. The Committee may make payments after exercise in a
lump sum or defer full payment by annual installments or otherwise.

 

       (g)    No
Repricing.    Except as
otherwise provided in Section 5.3, in no event will the Committee decrease
the Exercise Price of a Stock Option or Stock Appreciation Right after the date
of grant or cancel outstanding Stock Options or Stock Appreciation Rights and
grant replacement Stock Options or Stock Appreciation Rights with a lower
Exercise Price than that of the replaced Stock Options or Stock Appreciation
Rights or other Awards without first obtaining the approval of the holders of a
majority of the Shares who are present in person or by proxy at a meeting of
the Company’s stockholders and entitled to vote.

 

       4.4    Annual Performance Bonuses.    The Committee may grant Annual Performance
Bonuses under the Plan in the form of cash or Shares to the Reporting Persons
that the Committee may from time to time select, in the amounts and pursuant to
the terms and conditions that the Committee may determine and set forth in the
Award Certificate, subject to the provisions below:

 

       (a)    Performance
Cycles.    Annual Performance
Bonuses will be awarded in connection with a 12-month Performance Cycle, which
will be the fiscal year of the Company.

 

       (b)    Eligible Participants.    Within 90 days after the commencement of a
Performance Cycle, the Committee will determine the Reporting Persons who will
be eligible to receive an Annual Performance Bonus under the Plan.

 

       (c)    Performance
Measures; Targets; Award Criteria.

 

       (i)    Within 90 days after the commencement of a
Performance Cycle, the Committee will fix and establish in writing (A) the
Performance Measures that will apply to that Performance Cycle; (B) the
Target Amount payable to each Participant; and (C) subject to subsection (d) below,
the criteria for computing the amount that will be paid with respect to each
level of attained performance. The Committee will also set forth the minimum
level of performance, based on objective factors, that must be attained during
the Performance Cycle before any Annual Performance Bonus will be paid and the
percentage of the Target Amount that will become payable upon attainment of
various levels of performance that equal or exceed the minimum required level.

 

       (ii)   The Committee may, in its discretion, select
Performance Measures that measure the performance of the Company or one or more
business units, divisions or Subsidiaries of the Company. The Committee may
select Performance Measures that are absolute or relative to the performance of
one or more comparable companies or an index of comparable companies.

 

10

 

       (iii) 
The Committee, in its discretion, may, on a case-by-case basis, reduce, but not
increase, the amount payable to any Key Employee with respect to any given
Performance Cycle, provided, however, that no reduction will result in an
increase in the amount payable under any Annual Performance Bonus of another
Key Employee.

 

       (d)    Payment,
Certification.    No Annual
Performance Bonus will vest with respect to any Reporting Person until the
Committee certifies in writing the level of performance attained for the
Performance Cycle in relation to the applicable Performance Measures. In
applying Performance Measures, the Committee may, in its discretion, exclude
unusual or infrequently occurring items (including any event listed in Section 5.3
and the cumulative effect of changes in the law, regulations or accounting
rules), and may determine no later than ninety (90) days after the commencement
of any applicable Performance Cycle to exclude other items, each determined in
accordance with GAAP (to the extent applicable) and as identified in the
financial statements, notes to the financial statements or discussion and
analysis of management.

 

       (e)    Form of
Payment.    Annual Performance
Bonuses will be paid in cash or Shares. 
All such Performance Bonuses shall be paid no later than the 15th day of
the third month following the end of the calendar year (or, if later, following
the end of the Company’s fiscal year) in which such Performance Bonuses are no
longer subject to a substantial risk of forfeiture (as determined for purposes
of Section 409A of the Code), except to the extent that a Participant has
elected to defer payment under the terms of a duly authorized deferred
compensation arrangement.

 

       (f)    Section 162(m) of
the Code.    It is the intent
of the Company that Annual Performance Bonuses be “performance-based
compensation” for purposes of Section 162(m) of the Code, that this Section 4.4
be interpreted in a manner that satisfies the applicable requirements of Section 162(m)(C) of
the Code and related regulations, and that the Plan be operated so that the
Company may take a full tax deduction for Annual Performance Bonuses. If any
provision of this Plan or any Annual Performance Bonus would otherwise
frustrate or conflict with this intent, the provision will be interpreted and
deemed amended so as to avoid this conflict.

 

       (g)   
Acceleration.    Each
Participant who has been granted an Annual Performance Bonus that is
outstanding as of the date of a Change of Control will be deemed to have
achieved a level of performance, as of the date of Change in Control, that
would cause all (100%) of the Participant’s Target Amount to become payable.

 

       4.5    Long Term Performance Awards.    The Committee may grant Long Term Performance
Awards under the Plan in the form of Performance Units, Restricted Units or
Restricted Stock to any Reporting Person who the Committee may from time to
time select, in the amounts and pursuant to the terms and conditions that the
Committee may determine and set forth in the Award Certificate, subject to the
provisions below:

 

       (a)    Performance
Cycles.    Long Term
Performance Awards will be awarded in connection with a Performance Cycle, as
determined by the Committee in its discretion, provided, however, that a
Performance Cycle may be no shorter than 12 months and no longer than 5 years.

 

       (b)    Eligible
Participants.    Within 90
days after the commencement of a Performance Cycle, the Committee will
determine the Reporting Persons who will be eligible to receive a Long Term
Performance Award for the Performance Cycle, provided that the Committee may
determine the eligibility of any Employee other than a Key Employee after the
expiration of this 90-day period.

 

       (c)    Performance
Measures; Targets; Award Criteria.

 

       (i)    Within 90 days after the commencement of a
Performance Cycle, the Committee will fix and establish in writing (A) the
Performance Measures that will apply to that Performance Cycle; (B) with
respect to Performance Units, the Target Amount payable to each Participant; (C) with
respect to Restricted Units and Restricted Stock, the Target Vesting Percentage
for each Participant; and (D) subject to subsection (d) below, the
criteria for computing the amount that will be paid or will vest with respect
to each level of attained performance. The Committee will also set forth the
minimum level of performance, based on objective factors, that must be attained
during the Performance Cycle before any Long Term Performance Award will be
paid or vest, and the percentage of Performance Units that will become payable
and the percentage of performance-based Restricted Units or Shares of
Restricted Stock that will 

 

11

 

vest
upon attainment of various levels of performance that equal or exceed the
minimum required level.

 

       (ii)   The Committee may, in its discretion, select
Performance Measures that measure the performance of the Company or one or more
business units, divisions or Subsidiaries of the Company. The Committee may
select Performance Measures that are absolute or relative to the performance of
one or more comparable companies or an index of comparable companies.

 

       (iii) 
The Committee, in its discretion, may, on a case-by-case basis, reduce, but not
increase, the amount of Long Term Performance Awards payable to any Key
Employee with respect to any given Performance Cycle, provided, however, that
no reduction will result in an increase in the dollar amount or number of
Shares payable under any Long Term Performance Award of another Key Employee.

 

       (d)    Payment,
Certification.    No Long Term
Performance Award will vest with respect to any Reporting Person until the
Committee certifies in writing the level of performance attained for the
Performance Cycle in relation to the applicable Performance Measures.  Long Term Performance Awards awarded to
Participants who are not Key Employees will be based on the Performance
Measures  and payment formulas that the
Committee, in its discretion, may establish for these purposes. These
Performance Measures and formulas may be the same as or different than the
Performance Measures and formulas that apply to Key Employees.

 

       In
applying Performance Measures, the Committee may, in its discretion, exclude
unusual or infrequently occurring items (including any event listed in Section 5.3
and the cumulative effect of changes in the law, regulations or accounting
rules, and may determine no later than ninety (90) days after the commencement
of any applicable Performance Cycle to exclude other items, each determined in
accordance with GAAP (to the extent applicable) and as identified in the
financial statements, notes to the financial statements or discussion and
analysis of management.

 

       (e)    Form of
Payment.    Long Term
Performance Awards in the form of Performance Units may be paid in cash or full
Shares, in the discretion of the Committee, and as set forth in the Award
Certificate. Performance-based Restricted Units and Restricted Stock will be
paid in full Shares. Payment with respect to any fractional Share will be in
cash in an amount based on the Fair Market Value of the Share as of the date
the Performance Unit becomes payable.

 

       (f)    Section 162(m) of
the Code.    It is the intent
of the Company that Long Term Performance Awards be “performance-based
compensation” for purposes of Section 162(m) of the Code, that this Section 4.5
be interpreted in a manner that satisfies the applicable requirements of Section 162(m)(C) of
the Code and related regulations, and that the Plan be operated so that the
Company may take a full tax deduction for Long Term Performance Awards. If any
provision of this Plan or any Long Term Performance Award would otherwise
frustrate or conflict with this intent, the provision will be interpreted and
deemed amended so as to avoid this conflict.

 

       (g)    Retirement.    If a Participant would be entitled to a Long
Term Performance Award but for the fact that the Participant’s employment with
the Company terminated prior to the end of the Performance Cycle, the
Participant may, in the Committee’s discretion, receive a Long Term Performance
Award, pro rated for the portion of the Performance Cycle that the Participant
completed and payable at the same time after the end of the Performance Cycle
that payments to other Long Term Performance Award recipients are made, if the
sum of the Participant’s age and years of service with the Company was 60 or
higher at the time of Termination of Employment or if the Participant retired
under a Normal Retirement.

 

       4.6    Other Stock-Based Awards.    The Committee may, from time to time, grant
Awards (other than Stock Options, Stock Appreciation Rights, Annual Performance
Bonuses or Long Term Performance Awards) to any Employee who the Committee may
from time to time select, which Awards consist of, or are denominated in,
payable in, valued in whole or in part by reference to, or otherwise related
to, Shares. These Awards may include, among other forms, Restricted Stock,
Restricted Units, or Deferred Stock Units. The Committee will determine, in its
discretion, the terms and conditions that will apply to Awards granted pursuant
to this Section 4.6, which terms and conditions will be set forth in the
applicable Award Certificate.

 

12

 

       (a)    Vesting.    Unless the Award Certificate provides
otherwise, restrictions on Stock-Based Awards granted under this Section 4.6
will lapse in equal annual installments over a period of four years beginning
immediately after the date of grant. If the restrictions on Stock-Based Awards
have not lapsed or been satisfied as of the Participant’s Termination of
Employment, the Shares will be forfeited by the Participant if the termination
is for any reason other than the Normal Retirement, death or Disability of the
Participant or a Change in Control, except that the Award will vest pro rata
with respect to the portion of the four-year vesting term (or such other
vesting term as is set forth in the Award Certificate) that the Participant has
completed if the Participant has attained age 55, the sum of the Participant’s
age and years of service with the Company is 60 or higher and the Participant has
satisfied all other applicable conditions established by the Committee with
respect to such pro rata vesting.  Unless
the Award Certificate provides otherwise, all restrictions on Stock-Based
Awards granted pursuant to this Section 4.6 will lapse upon the Normal
Retirement, death or Disability of the Participant or a Change in Control.

 

       (b)    Grant of
Restricted Stock.    The
Committee may grant Restricted Stock to any Employee, which Shares will be
registered in the name of the Participant and held for the Participant by the
Company.  The Participant will have all
rights of a stockholder with respect to the Shares, including the right to vote
and to receive dividends or other distributions, except that the Shares may be
subject to a vesting schedule and will be forfeited if the Participant attempts
to sell, transfer, assign, pledge or otherwise encumber or dispose of the
Shares before the restrictions are satisfied or lapse.

 

       (c)    Grant of
Restricted Units.    The
Committee may grant Restricted Units to any Employee, which Units will be paid
in cash or whole Shares or a combination of cash and Shares, in the discretion
of the Committee, when the restrictions on the Units lapse and any other
conditions set forth in the Award Certificate have been satisfied. For each
Restricted Unit that vests, one Share will be paid or an amount in cash equal
to the Fair Market Value of a Share as of the date on which the Restricted Unit
vests.

 

       (d)    Grant of
Deferred Stock Units.    The
Committee may grant Deferred Stock Units to any Employee, which Units will be
paid in whole Shares upon the Employee’s Termination of Employment if the
restrictions on the Units have lapsed. One Share will be paid for each Deferred
Stock Unit that becomes payable.

 

       (e)    Dividends
and Dividend Equivalents.    At the discretion of the Committee,
dividends issued on Shares may be paid immediately or withheld and deferred in
the Participant’s account. In the event of a payment of dividends on Common
Stock, the Committee may credit Restricted Units with Dividend Equivalents in
accordance with terms and conditions established in the discretion of the
Committee. Dividend Equivalents will be subject to such vesting terms as is
determined by the Committee and may be distributed immediately or withheld and
deferred in the Participant’s account as determined by the Committee and set
forth in the applicable Award Agreement. Deferred Stock Units may, in the
discretion of the Committee and as set forth in the Award Certificate, be
credited with Dividend Equivalents or additional Deferred Stock Units. The
number of any Deferred Stock Units credited to a Participant’s account upon the
payment of a dividend will be equal to the quotient produced by dividing the
cash value of the dividend by the Fair Market Value of one Share as of the date
the dividend is paid. The Committee will determine any terms and conditions on
deferral of a dividend or Dividend Equivalent, including the rate of interest
to be credited on deferral and whether interest will be compounded.

 

       4.7    Director Awards.

 

       (a)   As of the first day of each fiscal year of
the Company, the Committee will grant Deferred Stock Units to each Director in
such an amount as the Board, in its discretion, may approve in advance,
provided that the aggregate Fair Market Value of the Shares underlying the
Deferred Stock Units granted to any Director in a year may not exceed $200,000
(U.S.) determined as of the date of grant. Each such Deferred Stock Unit will
vest as determined by the Committee and set forth in the Award Certificate and
will be paid in Shares within 30 days following the recipient’s Termination of
Directorship. Dividend Equivalents or additional Deferred Stock Units will be
credited to each Director’s account when dividends are paid on Common Stock to
the shareholders, and will be paid to the Director at the same time that the
Deferred Stock Units are paid to the Director.

 

       (b)   The Committee may, in its discretion, grant
Stock Options, Stock Appreciation Rights and other Stock-Based Awards to
Directors, provided that in no event may a Director in any fiscal year be
granted more than 10,000 Shares pursuant to such Awards, excluding Deferred
Stock Units.

 

13

 

       4.8    Substitute Awards.    The Committee may make Awards under the Plan
to Acquired Grantees through the assumption of, or in substitution for,
outstanding stock-based awards previously granted to such Acquired Grantees.
Such assumed or substituted Awards will be subject to the terms and conditions
of the original awards made by the Acquired Company, with such adjustments
therein as the Committee considers appropriate to give effect to the relevant
provisions of any agreement for the acquisition of the Acquired Company. Any
grant of Incentive Stock Options pursuant to this Section 4.8 will be made
in accordance with Section 424 of the Code and any final regulations
published thereunder.

 

       4.9    Limit on Individual Grants.    Subject to Sections 5.1 and 5.3, no Employee
may be granted more than 6 million Shares over any calendar year pursuant to
Awards of Stock Options, Stock Appreciation Rights and performance-based
Restricted Stock and Restricted Units, except that an incentive Award of no
more than 10 million Shares may be made pursuant to Stock Options, Stock
Appreciation Rights and performance-based Restricted Stock and Restricted Units
to any person who has been hired within the calendar year as a Key Employee.
The maximum amount that may be paid in cash or Shares pursuant to Annual
Performance Bonuses or Long Term Performance Awards paid in Performance Units
to any one Employee is $5 million (U.S.) for any Performance Cycle of 12
months. For any longer Performance Cycle, this maximum will be adjusted
proportionally.

 

       4.10    Termination for Cause.    Notwithstanding anything to the contrary
herein, if a Participant incurs a Termination of Directorship or Termination of
Employment for Cause, then all Stock Options, Stock Appreciation Rights, Annual
Performance Bonuses, Long Term Performance Awards, Restricted Units, Restricted
Stock and other Stock-Based Awards will immediately be cancelled. The exercise
of any Stock Option or Stock Appreciation Right or the payment of any Award may
be delayed, in the Committee’s discretion, in the event that a potential
termination for Cause is pending.

 

ARTICLE V

SHARES SUBJECT TO THE PLAN;
ADJUSTMENTS

 

       5.1    Shares Available.    The Shares issuable under the Plan will be
authorized but unissued Shares, and, to the extent permissible under applicable
law, Shares acquired by the Company, any Subsidiary or any other person or
entity designated by the Company. The total number of Shares with respect to
which Awards may be issued under the Plan may equal, but may not exceed, 160
million Shares, and subject to adjustment in accordance with Section 5.3;
provided that when Shares are issued pursuant to a grant of Restricted Stock,
Restricted Units, Deferred Stock Units, 
Performance Units or as payment of an Annual Performance Bonus or other
Stock-Based Award, the total number of Shares remaining available for grant
will be decreased by a margin of at least 1.8 per Share issued. No more than 10
million Shares of the total Shares issuable under the Plan may be available for
grant in the form of Incentive Stock Options.

 

       5.2    Counting Rules.    The following Shares related to Awards under
this Plan may again be available for issuance under the Plan, in addition to
the Shares described in Section 5.1:

 

       (a)   Shares related to Awards paid in cash;

 

       (b)   Shares related to Awards that expire, are
forfeited or cancelled or terminate for any other reason without issuance of
Shares;

 

       (c)   Shares that are tendered or withheld in
payment of all or part of the Exercise Price of a Stock Option awarded under
this Plan, or in satisfaction of withholding tax obligations arising under this
Plan;

 

       (d)   Any Shares issued in connection with Awards
that are assumed, converted or substituted as a result of the acquisition of an
Acquired Company by the Company or a combination of the Company with another
company; and

 

       (e)   Any Shares of Restricted Stock that are
returned to the Company upon a Participant’s Termination of Employment.

 

       5.3    Adjustments.    In the event of a change in the outstanding
Shares by reason of a stock split, reverse stock split, dividend or other
distribution (whether in the form of cash, Shares, other securities or other
property), extraordinary cash dividend, recapitalization, merger,
consolidation, split-up, spin-off, reorganization, combination, repurchase or
exchange of Shares or other securities or similar corporate transaction or
event, the Committee shall make an appropriate adjustment to 

 

14

 

prevent dilution or
enlargement of the benefits or potential benefits intended to be made available
under the Plan.  Any adjustment made by
the Committee under this Section 5.3 will be conclusive and binding for
all purposes under the Plan.

 

       5.4    Change in Control.

 

       (a)   
Acceleration.    All
outstanding Stock Options and Stock Appreciation Rights will become exercisable
as of the later of the effective date of a Change in Control or a Change of
Control Termination for any Employee whose employment is terminated by means of
a Change in Control Termination if the Awards are not otherwise vested, and all
conditions will be waived with respect to outstanding Restricted Stock and Restricted
Units (other than Long Term Performance Awards) and Deferred Stock Units in
such case. Each Participant who has been granted an Annual Performance Bonus or
Long Term Performance Award that is outstanding as of the date of Change in
Control, and whose employment is terminated by means of a Change in Control
Termination, will be deemed to have achieved a level of performance, as of
later of the date of the Change in Control or the Change in Control
Termination, that would cause all (100%) of the Participant’s Target Amounts to
become payable and all restrictions on the Participant’s Restricted Units and
Shares of Restricted Stock to lapse.

 

       (b)    Adjustment,
Conversion and Payment.    In
addition to the foregoing, no later than 90 days after the date of Change in
Control, the Committee (as constituted prior to the date of Change in Control)
shall provide, in its discretion, for any of the following actions to apply to
each Award that is outstanding as of the date of Change in Control: (i) an
adjustment to such Award as the Committee deems appropriate to reflect such
Change in Control; (ii) the acquisition of such Award, or substitution of
a new right therefor, by the acquiring or surviving corporation after such
Change in Control, or (iii) the purchase of such Award, at the Participant’s
request, for an amount of cash equal to the amount that could have been
attained upon the exercise or redemption of such Award immediately prior to the
Change in Control had such Award been exercisable or payable at such time. Any
payment made pursuant to this Section 5.4(b) shall include the value
of any Dividend Equivalents credited with respect to such Award and accrued
interest on such Dividend Equivalents. The Committee may specify how an Award
will be treated in the event of a Change in Control either when the Award is
granted or at any time thereafter.

 

       5.5    Fractional Shares.    No fractional Shares will be issued under
the Plan.  Except as otherwise provided
in Section 4.5(e), if a Participant acquires the right to receive a
fractional Share under the Plan, the Participant will receive, in lieu of the
fractional Share, a full Share as of the date of settlement.

 

ARTICLE VI

AMENDMENT AND TERMINATION

 

       6.1    Amendment.    The Plan may be amended at any time and from
time to time by the Board without the approval of stockholders of the Company,
except that no material revision to the terms of the Plan will be effective
until the amendment is approved by the stockholders of the Company. A revision is
“material” for this purpose if, among other changes, it materially increases
the number of Shares that may be issued under the Plan (other than an increase
pursuant to Section 5.3 of the Plan), expands the types of Awards
available under the Plan, materially expands the class of persons eligible to
receive Awards under the Plan, materially extends the term of the Plan,
materially decreases the Exercise Price at which Stock Options or Stock
Appreciation Rights may be granted, reduces the Exercise Price of outstanding
Stock Options or Stock Appreciation Rights, or results in the replacement of
outstanding Stock Options and Stock Appreciation Rights with new Awards that
have an Exercise Price that is lower than the Exercise Price of the replaced
Stock Options and Stock Appreciation Rights. The Board may, in its discretion,
increase the maximum dollar amount of Deferred Stock Units that may be granted
to a Director in any fiscal year and the maximum number of Shares that may be
granted to a Director in any fiscal year pursuant to Stock Options, Stock
Appreciation Rights and other Stock-Based Awards. No amendment of the Plan made
without the Participant’s written consent may adversely affect any right of a
Participant with respect to an outstanding Award.

 

       6.2    Termination.    The Plan will terminate upon the earlier of
the following dates or events to occur:

 

       (a)    the adoption of a resolution of the Board
terminating the Plan; or

 

       (b)    the day before the 10th anniversary of the
adoption of the Plan by the Company’s shareholder as described in Section 1.2.

 

15

 

No Awards will be granted
under this Plan after it has terminated. The termination of the Plan, however,
will not alter or impair any of the rights or obligations of any person under
any Award previously granted under the Plan without such person’s consent.
After the termination of the Plan, any previously granted Awards will remain in
effect and will continue to be governed by the terms of the Plan and the
applicable Award Certificate.

 

ARTICLE VII

GENERAL PROVISIONS

 

       7.1    Nontransferability of Awards.    No Award under the Plan will be subject in
any manner to alienation, anticipation, sale, assignment, pledge, encumbrance
or transfer, and no other persons will otherwise acquire any rights therein,
except as provided below.

 

       (a)    Any Award may be transferred by will or by
the laws of descent or distribution.

 

       (b)    The Committee may provide in the applicable
Award Certificate that all or any part of a Nonqualified Option or Shares of
Restricted Stock may, subject to the prior written consent of the Committee, be
transferred to a family member.  For
purposes of this subsection (b), “family member” includes any child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling,
niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law of the Participant, including adoptive
relationships, any person sharing the Participant’s household (other than a
tenant or employee), a trust in which these persons have more than fifty
percent of the beneficial interest, a foundation in which these persons (or the
Participant) control the management of assets, and any other entity in which
these persons (or the Participant) own more than fifty percent of the voting
interests.

 

       Any
transferred Award will be subject to all of the same terms and conditions as
provided in the Plan and the applicable Award Certificate. The Participant or
the Participant’s estate will remain liable for any withholding tax that may be
imposed by any federal, state or local tax authority. The Committee may, in its
discretion, disallow all or a part of any transfer of an Award pursuant to this
subsection (b) unless and until the Participant makes arrangements
satisfactory to the Committee for the payment of any withholding tax. The
Participant must immediately notify the Committee, in the form and manner
required by the Committee, of any proposed transfer of an Award pursuant to
this subsection (b). No transfer will be effective until the Committee consents
to the transfer in writing.

 

       (c)    Except as otherwise provided in the
applicable Award Certificate, any Nonqualified Stock Option transferred by a
Participant pursuant to this subsection (c) may be exercised by the
transferee only to the extent that the Award would have been exercisable by the
Participant had no transfer occurred. The transfer of Shares upon exercise of
the Award will be conditioned on the payment of any withholding tax.

 

       (d)    Restricted Stock may be freely transferred
after the restrictions lapse or are satisfied and the Shares are delivered,
provided, however, that Restricted Stock awarded to an affiliate of the Company
may be transferred only pursuant to Rule 144 under the Securities Act, or
pursuant to an effective registration for resale under the Securities Act. For
purposes of this subsection (d), “affiliate” will have the meaning assigned to
that term under Rule 144.

 

       (e)    In no event may a Participant transfer an
Incentive Stock Option other than by will or the laws of descent and
distribution.

 

       7.2    Withholding of Taxes.    The Committee, in its discretion, may
satisfy a Participant’s tax withholding obligations by any of the following
methods or any method as it determines to be in accordance with the laws of the
jurisdiction in which the Participant resides, has domicile or performs
services.

 

       (a)    Stock Options
and Stock Appreciation Rights.    As a condition to the delivery of Shares
pursuant to the exercise of a Stock Option or Stock Appreciation Right, the
Committee may require that the Participant, at the time of exercise, pay to the
Company by cash, certified check, bank draft, wire transfer or postal or
express money order an amount sufficient to satisfy any applicable tax
withholding obligations. The Committee may also, in its discretion, accept
payment of tax withholding obligations through any of the Exercise Price
payment methods 

 

16

 

described
in Section 4.3(d).

 

       (b)    Other Awards
Payable in Shares.    The
Participant shall satisfy the Participant’s tax withholding obligations arising
in connection with the release of restrictions on Restricted Units, Restricted
Stock and other Stock-Based Awards by payment to the Company in cash or by
certified check, bank draft, wire transfer or postal or express money order,
provided that the format is approved by the Company or a designated third-party
administrator. However, subject to any requirements of applicable law, the
Company may also satisfy the Participant’s tax withholding obligations by other
methods, including selling or withholding Shares that would otherwise be
available for delivery, provided that the Board or the Committee has
specifically approved such payment method in advance.

 

       (c)    Cash Awards.
   The Company may satisfy a
Participant’s tax withholding obligation arising in connection with the payment
of any Award in cash by withholding cash from such payment.

 

       7.3    Special Forfeiture Provision.    The Committee may, in its discretion,
provide in an Award Certificate that the Participant may not, within two years
of the Participant’s Termination of Employment with the Company, enter into any
employment or consultation arrangement (including service as an agent, partner,
stockholder, consultant, officer or director) with any entity or person engaged
in any business in which the Company or any Subsidiary is engaged without prior
written approval of the Committee if, in the sole judgment of the Committee,
the business is competitive with the Company or any Subsidiary or business unit
or such employment or consultation arrangement would present a risk that the
Participant would likely disclose Company proprietary information (as
determined by the Committee). If the Committee makes a determination that this
prohibition has been violated, the Participant (i) will forfeit all rights
under any outstanding Stock Option or Stock Appreciation Right that was granted
subject to the Award Certificate and will return to the Company the amount of
any profit realized upon an exercise of all Awards during the period, as the
Committee determines and sets forth in the Award Certificate, beginning no
earlier than six months prior to the Participant’s Termination of Employment,
and (ii) will forfeit and return to the Company any Annual Performance
Bonuses, Performance Units, Shares of Restricted Stock, Restricted Units
(including any credited Dividend Equivalents), Deferred Stock Units, and other
Stock-Based Awards that are outstanding on the date of the Participant’s
Termination of Employment, subject to the Award Certificate, and have not
vested or that became vested and remain subject to this Section 7.3 during
a period, as the Committee determines and sets forth in the Award Certificate,
beginning no earlier than six months prior to the Participant’s Termination of
Employment.

 

       7.4    No Implied Rights.    The establishment and operation of the Plan,
including the eligibility of a Participant to participate in the Plan, will not
be construed as conferring any legal or other right upon any Director for any
continuation of directorship or any Employee for the continuation of employment
through the end of any Performance Cycle or other period. The Company expressly
reserves the right, which may be exercised at any time and in the Company’s
sole discretion, to discharge any individual or treat him or her without regard
to the effect that discharge might have upon him or her as a Participant in the
Plan.

 

       7.5    No Obligation to Exercise Awards.    The grant of a Stock Option or Stock
Appreciation Right will impose no obligation upon the Participant to exercise
the Award.

 

       7.6    No Rights as Stockholders.    A Participant who is granted an Award under
the Plan will have no rights as a stockholder of the Company with respect to
the Award unless and until certificates for the Shares underlying the Award are
registered in the Participant’s name and (other than in the case of Restricted
Stock) delivered to the Participant. The right of any Participant to receive an
Award by virtue of participation in the Plan will be no greater than the right
of any unsecured general creditor of the Company.

 

       7.7    Indemnification of Committee.    The Company will indemnify, to the fullest
extent permitted by law, each person made or threatened to be made a party to
any civil or criminal action or proceeding by reason of the fact that the
person, or the executor or administrator of the person’s estate, is or was a
member of the Committee or a delegate of the Committee.

 

       7.8    No Required Segregation of Assets.    Neither the Company nor any Subsidiary will
be required to segregate any assets that may at any time be represented by
Awards granted pursuant to the Plan.

 

       7.9    Nature of Payments.    All Awards made pursuant to the Plan are in
consideration of services for the Company or a Subsidiary. Any gain realized
pursuant to Awards under the Plan constitutes a special incentive payment to
the Participant 

 

17

 

and will not be taken
into account as compensation for purposes of any other employee benefit plan of
the Company or a Subsidiary, except as the Committee otherwise provides. The
adoption of the Plan will have no effect on Awards made or to be made under any
other benefit plan covering an employee of the Company or a Subsidiary or any
predecessor or successor of the Company or a Subsidiary.

 

       7.10    Securities Law Compliance.    Awards under the Plan are intended to
satisfy the requirements of Rule 16b-3 under the Exchange Act. If any
provision of this Plan or any grant of an Award would otherwise frustrate or
conflict with this intent, that provision will be interpreted and deemed
amended so as to avoid conflict. No Participant will be entitled to a grant,
exercise, transfer or payment of any Award if the grant, exercise, transfer or
payment would violate the provisions of the Sarbanes-Oxley Act of 2002 or any
other applicable law.

 

       7.11    Section 409A Compliance.    To the extent the Committee determines that
any Award granted under the Plan is subject to Section 409A of the Code,
the Award Certificate evidencing such Award will incorporate the terms and
conditions required by Section 409A of the Code.  To the extent applicable, the Plan and the
Award Certificate will be interpreted in accordance with Section 409A of
the Code and Department of Treasury regulations and other interpretive guidance
issued thereunder, including without limitation any such regulations or other
guidance that may be issued after the Effective Date.  Notwithstanding any provision of the Plan, in
the event that following the Effective Date the Committee determines that any
Award may be subject to Section 409A of the Code, the Committee may adopt
such amendments to the Plan and/or the applicable Award Certificate or adopt
policies and procedures or take any other action or actions, including an
action or amendment with retroactive effect, that the Committee determines is
necessary or appropriate to (i) exempt the Award from the application of Section 409A
of the Code or (ii) comply with the requirements of Section 409A of
the Code.

 

       7.12    Governing Law, Severability.    The Plan and all determinations made and
actions taken under the Plan will be governed by the law of Bermuda and
construed accordingly. If any provision of the Plan is held unlawful or
otherwise invalid or unenforceable in whole or in part, the unlawfulness,
invalidity or unenforceability will not affect any other parts of the Plan,
which parts will remain in full force and effect.

 

18

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