Document:

EXHIBIT 10.1

 

AMENDMENT TO THE

TENNESSEE COMMERCE BANCORP, INC.

2007 EQUITY PLAN

 

THIS AMENDMENT (the “Amendment”) to the
Tennessee Commerce Bancorp, Inc. 2007 Equity Plan (the “Plan”) is made on
this 20th day of May, 2010 by Tennessee Commerce Bancorp, Inc.
(the “Company”).

 

WHEREAS, the Company established the
Plan for the benefit of eligible employees and directors;

 

WHEREAS, Section 12.2 of the
Plan authorizes the Board of Directors of the Company (the “Board”) to amend
the Plan; and

 

WHEREAS, the Board and the
shareholders of the Company have approved an amendment to the Plan to (i) clarify
certain definitions of the Plan, (ii) increase the maximum aggregate
number of shares with respect to which awards may be granted under the Plan, (iii) revise
the terms of certain equity awards subject to restrictions, and (iv) clarify
the effect of adjustments upon changes in stock.

 

NOW, THEREFORE, the Company hereby amends
the Plan as follows, effective as of May 20, 2010:

 

I.              Section 2.9
of the Plan is deleted and replaced with the following:

 

2.9           Committee
means a committee of Board members
that is designated by the Board to serve as the administrator of the Plan,
provided that the Committee shall be composed of at least two individuals (or
such number that satisfies section 162(m)(4)(C) of the Code) and shall be
solely composed of individuals who are “outside directors” as defined in Treas.
Reg. §1.162-27(e)(3) or any successor provision.

 

II.            Section 3.1 of the Plan is deleted and
replaced with the following:

 

3.1           Committee. The Plan shall be
administered by the Committee, such other committee as the Board may designate,
or, at the discretion of the Board from time to time, by the Board.  The members of the Committee shall be
appointed by, and may be changed at any time and from time to time in the
discretion of, the Board. During any time the Board is acting as administrator
of the Plan, it shall have all the powers of the Committee hereunder, and any
reference herein to the Committee (other than in this Section 3.1) shall
include the Board.

 

III.           The last sentence of Section 4.3(a) of
the Plan is deleted and replaced with the following:

 

Subject to adjustment under Section 12.2, the
number of shares of Company Stock that may be issued pursuant to Awards under
the Plan (the “Section 4.3 Limit”) shall not exceed, in the aggregate,
2,000,000 shares.

 

IV.           The first sentence of Section 4.3(b) of
the Plan is deleted and replaced with the following:

 

The maximum number of shares of Company Stock that
may be issued subject to Incentive Stock Options is 1,000,000, subject to
adjustment under Section 12.1.

 

V.            Section 6.3
of the Plan is deleted and
replaced with the following:

 

6.3           Other Terms and Conditions.  Company Stock, when awarded pursuant to a
Restricted Stock Award, will be represented in a book entry account in the name
of the Participant who receives the Restricted Stock Award.  Notwithstanding anything to the contrary in
the Plan, the Participant shall be deemed a Shareholder with respect to the
Company Stock covered by the Restricted Stock Award, including the right to
vote such Restricted Stock, subject to the following restrictions: (i) the
Participant shall not be entitled to delivery of the appropriate number of
shares of Company Stock until such shares become vested and transferable; (ii) none
of the shares of Company Stock subject to the Restricted Stock Award may be 

 

1

 

sold,
assigned, transferred, pledged, hypothecated or otherwise encumbered or
disposed of (except by will or the applicable laws of descent and distribution)
until such shares become vested and transferable; (iii) no dividends or
other distributions payable with respect to a share of Company Stock subject to
a Restricted Stock Award shall be paid until and unless such share become
vested and transferable, with such dividends or other distributions to be
accumulated, without interest, by the Company (the “Accumulated Dividends”) and
(iv) shares of Company Stock subject to a Restricted Stock Award and any
Accumulated Dividends with respect to such shares shall be forfeited and all
rights of the Participant to such shares and Accumulated Dividends shall
terminate, without further obligation on the part of the Company, unless the
requirements of the Restricted Stock Award are satisfied and unless any other
restricted conditions related to the Restricted Stock are met.  In the event the Company effects a
recapitalization, stock split, stock dividend or other event described in Section 12.1,
the shares of Company Stock received by the Participant with respect to any
Restricted Stock Award (or any shares of stock issued in substitution thereof)
shall be subject to identical restrictions and shall be subject to the terms of
the Plan.  The Company is not required to
issue shares of Company Stock under any Restricted Stock Award until all
applicable requirements of law have been complied with and such shares shall
have been duly listed on any securities exchange or market system on which the
Company Stock may then be listed or traded.

 

VI.           Section 12.1
of the Plan is deleted and
replaced with the following:

 

12.1         Adjustments Upon Changes in
Company Stock.  The number
and kind of shares of Company Stock with respect to which Awards hereunder may
be granted (both overall and individual limitations) and which are the subject
of outstanding Awards, and the maximum number and exercise price thereof, shall
be adjusted as the Committee determines to be appropriate, in the event that:

 

(a)          the Company or an Affiliate effects one or more
Company Stock dividends, Company Stock splits, reverse Company Stock splits,
subdivisions, consolidations or other similar events;

 

(b)         the Company or an Affiliate engages in a transaction
to which section 424 of the Code applies; or

 

(c)          there occurs any other event that in the judgment of
the Committee necessitates such action;

 

provided,
however, that if an event described in paragraph (a) or (b) occurs,
the Committee shall make adjustments to the limit on Awards specified in Section 4.3
that are proportionate to the modifications of the Company Stock that are on
account of such corporate changes. If any capital reorganization or
reclassification of the capital stock of the Company or any consolidation or
merger of the Company with another person, or the sale of all or substantially
all the Company’s assets to another person, shall be effected such that holders
of Company Stock shall be entitled to receive stock, securities or other
property (including, without limitation, cash) with respect to or in exchange
for Company Stock, then each holder of an Option shall thereafter have the
right to purchase, upon the exercise of the Option in accordance with the terms
and conditions specified herein and in the agreement governing such Option and
in lieu of the shares of Company Stock immediately theretofore receivable upon
the exercise of such Option, such shares of stock, securities or other property
(including, without limitation, cash) as would be issuable or payable in such
reorganization, reclassification, consolidation, merger or sale with respect to
or in exchange for a number of outstanding shares of Company Stock equal to the
number of shares of Company Stock that would have been immediately theretofore
so receivable with respect to such Option had such reorganization,
reclassification, consolidation, merger or sale not taken place, subject to
such adjustments as the Committee, in its sole discretion, shall determine to
be appropriate.

 

VI.           Amendment
and Ratification. The Plan is hereby amended in accordance with the
foregoing provisions of this Amendment. The Plan, as amended as provided
herein, is hereby ratified and shall remain in full force and effect.

 

VII.         Defined Terms. Capitalized
terms used in this Amendment shall have the same meanings as in the Plan unless
otherwise defined herein.

 

[Signature Page Follows]

 

2

 

IN WITNESS WHEREOF, the undersigned individual
has executed this instrument to signify the adoption of this Amendment by the Company
on the date and year written above.

 

 

	
   

  	
  TENNESSEE COMMERCE BANCORP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael R. Sapp

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Chairman,
  CEO and President

  

 

3Exhibit
10.1

 

WILLDAN GROUP, INC.

2008 PERFORMANCE INCENTIVE PLAN

 

1.     PURPOSE
OF PLAN

 

The purpose of this Willdan Group, Inc. 2008
Performance Incentive Plan (this “Plan”)
of Willdan Group, Inc., a Delaware corporation (the “Corporation”),
is to promote the success of the Corporation and to increase stockholder value
by providing an additional means through the grant of awards to attract,
motivate, retain and reward selected employees and other eligible persons.

 

2.     ELIGIBILITY

 

The Administrator (as such term is defined in
Section 3.1) may grant awards under this Plan only to those persons that the
Administrator determines to be Eligible Persons.  An “Eligible
Person” is any person who is either: (a) an officer (whether or not
a director) or employee of the Corporation or one of its Subsidiaries; (b) a
director of the Corporation or one of its Subsidiaries; or (c) an individual
consultant or advisor who renders or has rendered bona fide services (other
than services in connection with the offering or sale of securities of the
Corporation or one of its Subsidiaries in a capital-raising transaction or as a
market maker or promoter of securities of the Corporation or one of its
Subsidiaries) to the Corporation or one of its Subsidiaries and who is selected
to participate in this Plan by the Administrator; provided, however, that a
person who is otherwise an Eligible Person under clause (c) above may
participate in this Plan only if such participation would not adversely affect
either the Corporation’s eligibility to use Form S-8 to register under the
Securities Act of 1933, as amended (the “Securities
Act”), the offering and sale of shares issuable under this Plan by
the Corporation or the Corporation’s compliance with any other applicable
laws.  An Eligible Person who has been
granted an award (a “participant”) may, if otherwise eligible, be granted
additional awards if the Administrator shall so determine.  As used herein, “Subsidiary”
means any corporation or other entity a majority of whose outstanding voting stock
or voting power is beneficially owned directly or indirectly by the
Corporation; and “Board” means
the Board of Directors of the Corporation.

 

3.     PLAN ADMINISTRATION

 

3.1                              The Administrator.  This Plan shall be administered by and all
awards under this Plan shall be authorized by the Administrator.  The “Administrator”
means the Board or one or more committees appointed by the Board or another
committee (within its delegated authority) to administer all or certain aspects
of this Plan.  Any such committee shall
be comprised solely of one or more directors or such number of directors as may
be required under applicable law.  A
committee may delegate some or all of its authority to another committee so
constituted.  The Board or a committee
comprised solely of directors may also delegate, to the extent permitted by
Section 157(c) of the Delaware General Corporation Law and any other applicable
law, to one or more officers of the Corporation, its powers under this Plan (a)
to designate the officers and employees of the Corporation and its Subsidiaries
who will receive grants of awards under this Plan, and (b) to determine the
number of shares subject to, and the other terms and conditions of, such
awards.  The Board may delegate different
levels of authority to different committees with administrative and grant
authority under this Plan.  Unless
otherwise provided in the Bylaws of the Corporation or the applicable charter
of any Administrator: (a) a majority of the members of the acting Administrator
shall constitute a quorum, and (b) the vote of a majority of the members
present assuming the presence of a quorum or the unanimous written consent of
the members of the Administrator shall constitute action by the acting
Administrator.

 

With
respect to awards intended to satisfy the requirements for performance-based
compensation under Section 162(m) of the Internal Revenue Code of 1986, as
amended (the “Code”), this Plan
shall be administered by a committee consisting solely of two or more outside
directors (as this requirement is applied under Section 162(m) of the Code);
provided, however, that the failure to satisfy such requirement shall not
affect the validity of the action of any committee otherwise duly authorized
and acting in the matter.  Award grants,
and transactions in or involving awards, intended to be exempt under Rule 16b-3
under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), must be duly and timely
authorized by the Board or a committee consisting solely of two or more non-employee
directors (as this requirement is applied under Rule 16b-3 promulgated under
the Exchange Act).  To the extent
required by any applicable listing agency, this Plan shall be administered by a
committee composed entirely of independent directors (within the meaning of the
applicable listing agency).

 

 

3.2                              Powers of the Administrator.  Subject to the express provisions of this
Plan, the Administrator is authorized and empowered to do all things necessary
or desirable in connection with the authorization of awards and the
administration of this Plan (in the case of a committee or delegation to one or
more officers, within the authority delegated to that committee or person(s)),
including, without limitation, the authority to:

 

(a)                                 determine
eligibility and, from among those persons determined to be eligible, the
particular Eligible Persons who will receive an award under this Plan;

 

(b)                                grant awards to
Eligible Persons, determine the price at which securities will be offered or
awarded and the number of securities to be offered or awarded to any of such
persons, determine the other specific terms and conditions of such awards
consistent with the express limits of this Plan, establish the installments (if
any) in which such awards shall become exercisable or shall vest (which may
include, without limitation, performance and/or time-based schedules), or
determine that no delayed exercisability or vesting is required, establish any
applicable performance targets, and establish the events of termination or reversion
of such awards;

 

(c)                                 approve the
forms of award agreements (which need not be identical either as to type of
award or among participants);

 

(d)                                construe and
interpret this Plan and any agreements defining the rights and obligations of
the Corporation, its Subsidiaries, and participants under this Plan, further
define the terms used in this Plan, and prescribe, amend and rescind rules and
regulations relating to the administration of this Plan or the awards granted
under this Plan;

 

(e)                                 cancel, modify,
or waive the Corporation’s rights with respect to, or modify, discontinue,
suspend, or terminate any or all outstanding awards, subject to any required
consent under Section 8.6.5;

 

(f)                                   accelerate or
extend the vesting or exercisability or extend the term of any or all such
outstanding awards (in the case of options or stock appreciation rights, within
the maximum ten-year term of such awards) in such circumstances as the
Administrator may deem appropriate (including, without limitation, in
connection with a termination of employment or services or other events of a
personal nature) subject to any required consent under Section 8.6.5;

 

(g)                                adjust the
number of shares of Common Stock subject to any award, adjust the price of any
or all outstanding awards or otherwise change previously imposed terms and
conditions, in such circumstances as the Administrator may deem appropriate, in
each case subject to Sections 4 and 8.6, and provided that in no case (except
due to an adjustment contemplated by Section 7 or any repricing that may be
approved by stockholders) shall such an adjustment constitute a repricing (by
amendment, substitution, cancellation and regrant, exchange or other means) of
the per share exercise or base price of any option or stock appreciation right;

 

(h)                                determine the
date of grant of an award, which may be a designated date after but not before
the date of the Administrator’s action (unless otherwise designated by the
Administrator, the date of grant of an award shall be the date upon which the
Administrator took the action granting an award);

 

(i)                                    determine
whether, and the extent to which, adjustments are required pursuant to Section
7 hereof and authorize the termination, conversion, substitution or succession
of awards upon the occurrence of an event of the type described in Section 7;

 

(j)                                    acquire or
settle (subject to Sections 7 and 8.6) rights under awards in cash, stock of
equivalent value, or other consideration, provided, however, that in no case
without stockholder approval shall the Corporation effect a “repricing” of a
stock option or stock appreciation right granted under this Plan by purchasing
the option or stock appreciation right at a time when the exercise or base
price of the award is greater than the fair market value of a share of Common
Stock; and

 

 

(k)                                 determine the
fair market value of the Common Stock or awards under this Plan from time to
time and/or the manner in which such value will be determined.

 

3.3                              Binding Determinations.  Any action taken by, or inaction of, the
Corporation, any Subsidiary, or the Administrator relating or pursuant to this
Plan and within its authority hereunder or under applicable law shall be within
the absolute discretion of that entity or body and shall be conclusive and
binding upon all persons.  Neither the
Board nor any Board committee, nor any member thereof or person acting at the
direction thereof, shall be liable for any act, omission, interpretation,
construction or determination made in good faith in connection with this Plan
(or any award made under this Plan), and all such persons shall be entitled to
indemnification and reimbursement by the Corporation in respect of any claim,
loss, damage or expense (including, without limitation, attorneys’ fees)
arising or resulting therefrom to the fullest extent permitted by law and/or
under any directors and officers liability insurance coverage that may be in
effect from time to time.

 

3.4                              Reliance on Experts.  In making any determination or in taking or
not taking any action under this Plan, the Administrator may obtain and may
rely upon the advice of experts, including employees and professional advisors
to the Corporation.  No director, officer
or agent of the Corporation or any of its Subsidiaries shall be liable for any
such action or determination taken or made or omitted in good faith.

 

3.5                              Delegation.  The Administrator may delegate ministerial,
non-discretionary functions to individuals who are officers or employees of the
Corporation or any of its Subsidiaries or to third parties.

 

4.     SHARES OF COMMON STOCK SUBJECT TO
THE PLAN; SHARE LIMITS

 

4.1                              Shares Available.  Subject to the provisions of Section 7.1, the
capital stock that may be delivered under this Plan shall be shares of the
Corporation’s authorized but unissued Common Stock and any shares of its Common
Stock held as treasury shares.  For
purposes of this Plan, “Common Stock”
shall mean the common stock of the Corporation and such other securities or
property as may become the subject of awards under this Plan, or may become
subject to such awards, pursuant to an adjustment made under Section 7.1.

 

4.2                              Share Limits.  The maximum number of shares of Common Stock
that may be delivered pursuant to awards granted to Eligible Persons under this
Plan (the “Share Limit”) is equal
to the sum of the following:

 

(1)                                 800,000 shares
of Common Stock, plus

 

(2)                                 the number of
shares of Common Stock available for additional award grant purposes under the
Corporation’s Willdan Group, Inc. 2006 Stock Incentive Plan (the “2006 Plan”) as of the date of stockholder approval of this
Plan (the “Stockholder Approval Date”) and
determined immediately prior to the termination of the authority to grant new
awards under the 2006 Plan as of the Stockholder Approval Date, plus

 

(3)                                 the number of
any shares subject to stock options granted under the 2006 Plan and outstanding
on the Stockholder Approval Date which expire, or for any reason are cancelled
or terminated, after the Stockholder Approval Date without being exercised.

 

The
following limits also apply with respect to awards granted under this Plan:

 

(a)                                 The maximum
number of shares of Common Stock that may be delivered pursuant to options
qualified as incentive stock options granted under this Plan is 1,100,000  shares.

 

(b)                                The maximum
number of shares of Common Stock subject to those options and stock
appreciation rights that are granted during any calendar year to any individual
under this Plan is 100,000  shares.

 

 

(c)                                 The maximum
number of shares of Common Stock that may be delivered pursuant to awards granted
under this Plan, other than those described in the next sentence, is 750,000
shares.  This limit on so-called “full-value
awards” does not apply, however, to (1) shares delivered in respect of
compensation earned but deferred, (2) shares delivered in respect of stock
option grants, and (3) shares delivered in respect of stock appreciation right
grants.

 

(d)                                Additional
limits with respect to Performance-Based Awards are set forth in Section 5.2.3.

 

Each of the foregoing numerical limits is subject to
adjustment as contemplated by Section 4.3, Section 7.1, and Section 8.10.

 

4.3                              Awards Settled in Cash, Reissue of Awards and Shares.  To the extent that an award granted under
this Plan is settled in cash or a form other than shares of Common Stock, the shares
that would have been delivered had there been no such cash or other settlement
shall not be counted against the shares available for issuance under this
Plan.  In the event that shares of Common
Stock are delivered in respect of a dividend equivalent right granted under
this Plan, only the actual number of shares delivered with respect to the award
shall be counted against the share limits of this Plan.  To the extent that shares of Common Stock are
delivered pursuant to the exercise of a stock appreciation right or stock
option granted under this Plan, the number of underlying shares as to which the
exercise related shall be counted against the applicable share limits under
Section 4.2, as opposed to only counting the shares actually issued.  (For purposes of clarity, if a stock
appreciation right relates to 100,000 shares and is exercised at a time when
the payment due to the participant is 15,000 shares, 100,000 shares shall be
charged against the applicable share limits under Section 4.2 with respect to
such exercise.)  Shares that are subject
to or underlie awards granted under this Plan which expire or for any reason
are cancelled or terminated, are forfeited, fail to vest, or for any other
reason are not paid or delivered under this Plan shall again be available for
subsequent awards under this Plan. 
Shares that are exchanged by a participant or withheld by the
Corporation as full or partial payment in connection with any award under this
Plan, as well as any shares exchanged by a participant or withheld by the
Corporation or one of its Subsidiaries to satisfy the tax withholding
obligations related to any award, shall not be available for subsequent awards
under this Plan.  Refer to Section 8.10
for application of the foregoing share limits with respect to assumed
awards.  The foregoing adjustments to the
share limits of this Plan are subject to any applicable limitations under
Section 162(m) of the Code with respect to awards intended as performance-based
compensation thereunder.

 

4.4                              Reservation of Shares; No Fractional Shares; Minimum
Issue.  The Corporation
shall at all times reserve a number of shares of Common Stock sufficient to
cover the Corporation’s obligations and contingent obligations to deliver
shares with respect to awards then outstanding under this Plan (exclusive of
any dividend equivalent obligations to the extent the Corporation has the right
to settle such rights in cash).  No
fractional shares shall be delivered under this Plan.  The Administrator may pay cash in lieu of any
fractional shares in settlements of awards under this Plan.  No fewer than 100 shares may be purchased on
exercise of any award (or, in the case of stock appreciation or purchase
rights, no fewer than 100 rights may be exercised at any one time) unless the
total number purchased or exercised is the total number at the time available
for purchase or exercise under the award.

 

5.     AWARDS

 

5.1                              Type and Form of Awards.  The Administrator shall determine the type or
types of award(s) to be made to each selected Eligible Person.  Awards may be granted singly, in combination
or in tandem.  Awards also may be made in
combination or in tandem with, in replacement of, as alternatives to, or as the
payment form for grants or rights under any other employee or compensation plan
of the Corporation or one of its Subsidiaries. 
The types of awards that may be granted under this Plan are:

 

5.1.1       Stock
Options.  A stock
option is the grant of a right to purchase a specified number of shares of
Common Stock during a specified period as determined by the Administrator.  An option may be intended as an incentive
stock option within the meaning of Section 422 of the Code (an “ISO”) or a nonqualified stock option (an
option not intended to be an ISO).  The
award agreement for an option will indicate if the option is intended as an
ISO; otherwise it will be deemed to be a nonqualified stock option.  The maximum term of each option (ISO or
nonqualified) shall be ten (10) years. 
The per share exercise price for each option shall be not less than 100%
of the fair market value of a share of Common Stock on the date of grant of the
option.  When an option is exercised, the
exercise price for the shares to be purchased shall be paid in full in cash or
such other method permitted by the Administrator consistent with Section 5.5.

 

 

5.1.2       Additional
Rules Applicable to ISOs.  To the extent that the aggregate fair market
value (determined at the time of grant of the applicable option) of stock with
respect to which ISOs first become exercisable by a participant in any calendar
year exceeds $100,000, taking into account both Common Stock subject to ISOs
under this Plan and stock subject to ISOs under all other plans of the
Corporation or one of its Subsidiaries (or any parent or predecessor corporation
to the extent required by and within the meaning of Section 422 of the Code and
the regulations promulgated thereunder), such options shall be treated as
nonqualified stock options.  In reducing
the number of options treated as ISOs to meet the $100,000 limit, the most
recently granted options shall be reduced first.  To the extent a reduction of simultaneously
granted options is necessary to meet the $100,000 limit, the Administrator may,
in the manner and to the extent permitted by law, designate which shares of
Common Stock are to be treated as shares acquired pursuant to the exercise of
an ISO.  ISOs may only be granted to
employees of the Corporation or one of its subsidiaries (for this purpose, the
term “subsidiary” is used as defined in Section 424(f) of the Code, which
generally requires an unbroken chain of ownership of at least 50% of the total
combined voting power of all classes of stock of each subsidiary in the chain
beginning with the Corporation and ending with the subsidiary in question).  There shall be imposed in any award agreement
relating to ISOs such other terms and conditions as from time to time are
required in order that the option be an “incentive stock option” as that term
is defined in Section 422 of the Code. 
No ISO may be granted to any person who, at the time the option is
granted, owns (or is deemed to own under Section 424(d) of the Code) shares of
outstanding Common Stock possessing more than 10% of the total combined voting
power of all classes of stock of the Corporation, unless the exercise price of
such option is at least 110% of the fair market value of the stock subject to
the option and such option by its terms is not exercisable after the expiration
of five years from the date such option is granted.

 

5.1.3       Stock Appreciation
Rights.  A stock
appreciation right or “SAR” is a
right to receive a payment, in cash and/or Common Stock, equal to the excess of
the fair market value of a specified number of shares of Common Stock on the
date the SAR is exercised over the “base price” of
the award, which base price shall be set forth in the applicable award
agreement and shall be not less than 100% of the fair market value of a share
of Common Stock on the date of grant of the SAR.  The maximum term of a SAR shall be ten (10)
years.

 

5.1.4       Other
Awards.  The other
types of awards that may be granted under this Plan include: (a) stock bonuses,
restricted stock, performance stock, stock units, phantom stock, dividend
equivalents, or similar rights to purchase or acquire shares, whether at a
fixed or variable price or ratio related to the Common Stock, upon the passage
of time, the occurrence of one or more events, or the satisfaction of
performance criteria or other conditions, or any combination thereof; or
(b) any similar securities with a value derived from the value of or
related to the Common Stock and/or returns thereon.

 

5.2                              Section
162(m) Performance-Based Awards.  Without limiting the generality of the
foregoing, any of the types of awards listed in Section 5.1.4 above may be, and
options and SARs granted to officers and employees (“Qualifying Options” and “Qualifying SARS,” respectively)
typically will be, granted as awards intended to satisfy the requirements for “performance-based
compensation” within the meaning of Section 162(m) of the Code (“Performance-Based Awards”).  The grant,
vesting, exercisability or payment of Performance-Based Awards may depend (or,
in the case of Qualifying Options or Qualifying SARs, may also depend) on the
degree of achievement of one or more performance goals relative to a
pre-established targeted level or level using one or more of the Business
Criteria set forth below (on an absolute or relative basis) for the Corporation
on a consolidated basis or for one or more of the Corporation’s subsidiaries,
segments, divisions or business units, or any combination of the
foregoing.  Any Qualifying Option or
Qualifying SAR shall be subject only to the requirements of Section 5.2.1 and
5.2.3 in order for such award to satisfy the requirements for “performance-based
compensation” under Section 162(m) of the Code. 
Any other Performance-Based Award shall be subject to all of the
following provisions of this Section 5.2.

 

5.2.1       Class; Administrator.  The eligible class of
persons for Performance-Based Awards under this Section 5.2 shall be
officers and employees of the Corporation or one of its Subsidiaries.  The
Administrator approving Performance-Based Awards or making any certification
required pursuant to Section 5.2.4 must be constituted as provided in Section
3.1 for awards that are intended as performance-based compensation under
Section 162(m) of the Code.

 

 

5.2.2       Performance Goals.  The
specific performance goals for Performance-Based Awards (other than Qualifying
Options and Qualifying SARs) shall be, on an absolute or relative basis,
established based on one or more of the following business criteria (“Business
Criteria”) as selected by the
Administrator in its sole discretion: earnings per share, cash flow (which
means cash and cash equivalents derived from either net cash flow from
operations or net cash flow from operations, financing and investing
activities), stock price, total stockholder return, gross revenue, revenue
growth, operating income (before or after taxes), net earnings (before or after
interest, taxes, depreciation and/or amortization), return on equity or on
assets or on net investment, cost containment or reduction, or any combination
thereof.  These terms are used as applied
under generally accepted accounting principles or in the financial reporting of
the Corporation or of its Subsidiaries. 
To qualify awards as performance-based under Section 162(m), the
applicable Business Criterion (or Business Criteria, as the case may be) and specific
performance goal or goals (“targets”) must be established and approved by the
Administrator during the first 90 days of the performance period (and, in the
case of performance periods of less than one year, in no event after 25% or
more of the performance period has elapsed) and while performance relating to
such target(s) remains substantially uncertain within the meaning of Section
162(m) of the Code.  Performance
targets shall be adjusted to mitigate the unbudgeted impact of material,
unusual or nonrecurring gains and losses, accounting changes or other
extraordinary events not foreseen at the time the targets were set unless the
Administrator provides otherwise at the time of establishing the targets.  The
applicable performance measurement period may not be less than three months nor
more than 10 years.

 

5.2.3       Form of Payment; Maximum Performance-Based
Award.  Grants or
awards under this Section 5.2 may be paid in cash or shares of Common Stock or
any combination thereof.  Grants of
Qualifying Options and Qualifying SARs to any one participant in any one
calendar year shall be subject to the limit set forth in Section 4.2(b).  The maximum number of shares of Common Stock
which may be delivered pursuant to Performance-Based Awards (other than Qualifying
Options and Qualifying SARs) that are granted to any one participant in any one
calendar year shall not exceed 100,000  shares, either
individually or in the aggregate, subject to adjustment as provided in Section
7.1.  Awards that are cancelled during
the year shall be counted against these limits to the extent required by
Section 162(m) of the Code.

 

5.2.4       Certification of Payment.  Before
any Performance-Based Award under this Section 5.2 (other than Qualifying
Options and Qualifying SARs) is paid and to the extent required to qualify the award
as performance-based compensation within the meaning of Section 162(m) of the
Code, the Administrator must certify in writing that the performance target(s)
and any other material terms of the Performance-Based Award were in fact timely
satisfied.

 

5.2.5       Reservation of Discretion.  The
Administrator will have the discretion to determine the restrictions or other
limitations of the individual awards granted under this Section 5.2 including
the authority to reduce awards, payouts or vesting or to pay no awards, in its
sole discretion, if the Administrator preserves such authority at the time of
grant by language to this effect in its authorizing resolutions or otherwise.

 

5.2.6       Expiration of Grant Authority.  As
required pursuant to Section 162(m) of the Code and the regulations promulgated
thereunder, the Administrator’s authority to grant new awards that are intended
to qualify as performance-based compensation within the meaning of Section
162(m) of the Code (other than Qualifying Options and Qualifying SARs) shall
terminate upon the first meeting of the Corporation’s stockholders that occurs
in the fifth year following the year in which the Corporation’s stockholders
first approve this Plan.

 

5.3                              Award Agreements.  Each award shall be evidenced by either (1) a
written award agreement in a form approved by the Administrator and executed by
the Corporation by an officer duly authorized to act on its behalf, or (2) an
electronic notice of award grant in a form approved by the Administrator and
recorded by the Corporation (or its designee) in an electronic recordkeeping
system used for the purpose of tracking award grants under this Plan generally
(in each case, an “award agreement”), as the Administrator may provide and, in
each case and if required by the Administrator, executed or otherwise
electronically accepted by the recipient of the award in such form and manner
as the Administrator may require.  The
Administrator may authorize any officer of the Corporation (other than the
particular award recipient) to execute any or all award agreements on behalf of
the Corporation.  The award agreement
shall set forth the material terms and conditions of the award as established
by the Administrator consistent with the express limitations of this Plan.

 

 

5.4                              Deferrals and Settlements.  Payment of awards may be in the form of cash,
Common Stock, other awards or combinations thereof as the Administrator shall
determine, and with such restrictions as it may impose.  The Administrator may also require or permit
participants to elect to defer the issuance of shares or the settlement of
awards in cash under such rules and procedures as it may establish under this
Plan.  The Administrator may also provide
that deferred settlements include the payment or crediting of interest or other
earnings on the deferral amounts, or the payment or crediting of dividend
equivalents where the deferred amounts are denominated in shares.

 

5.5                              Consideration for Common Stock or Awards.  The purchase price for any award granted
under this Plan or the Common Stock to be delivered pursuant to an award, as
applicable, may be paid by means of any lawful consideration as determined by
the Administrator, including, without limitation, one or a combination of the
following methods:

 

·                  services rendered by the
recipient of such award;

 

·                  cash, check payable to the
order of the Corporation, or electronic funds transfer;

 

·                  notice and third party
payment in such manner as may be authorized by the Administrator;

 

·                  the delivery of previously
owned shares of Common Stock;

 

·                  by a reduction in the number
of shares otherwise deliverable pursuant to the award; or

 

·                  subject to such procedures
as the Administrator may adopt, pursuant to a “cashless exercise” with a third
party who provides financing for the purposes of (or who otherwise facilitates)
the purchase or exercise of awards.

 

In no event shall any shares
newly-issued by the Corporation be issued for less than the minimum lawful
consideration for such shares or for consideration other than consideration
permitted by applicable state law. 
Shares of Common Stock used to satisfy the exercise price of an option
shall be valued at their fair market value on the date of exercise.  The Corporation will not be obligated to
deliver any shares unless and until it receives full payment of the exercise or
purchase price therefor and any related withholding obligations under Section
8.5 and any other conditions to exercise or purchase have been satisfied.  Unless otherwise expressly provided in the
applicable award agreement, the Administrator may at any time eliminate or
limit a participant’s ability to pay the purchase or exercise price of any
award or shares by any method other than cash payment to the Corporation.

 

5.6                              Definition of Fair Market Value.  For purposes of this Plan, “fair market value”
shall mean, unless otherwise determined or provided by the Administrator in the
circumstances, the last price (in regular trading) for a share of Common Stock
as furnished by the National Association of Securities Dealers, Inc. (the “NASD”) through the NASDAQ Global Market Reporting System
(the “Global Market”) for the date in
question or, if no sales of Common Stock were reported by the NASD on the
Global Market on that date, the last price (in regular trading) for a share of
Common Stock as furnished by the NASD through the Global Market for the next
preceding day on which sales of Common Stock were reported by the NASD.  The Administrator may, however, provide with
respect to one or more awards that the fair market value shall equal the last
price (in regular trading) for a share of Common Stock as furnished by the NASD
through the Global Market on the last trading day preceding the date in
question or the average of the high and low trading prices of a share of Common
Stock as furnished by the NASD through the Global Market for the date in
question or the most recent trading day. 
If the Common Stock is no longer listed or is no longer actively traded
on the Global Market as of the applicable date, the fair market value of the
Common Stock shall be the value as reasonably determined by the Administrator
for purposes of the award in the circumstances. 
The Administrator also may adopt a different methodology for determining
fair market value with respect to one or more awards if a different methodology
is necessary or advisable to secure any intended favorable tax, legal or other
treatment for the particular award(s) (for example, and without limitation, the
Administrator may provide that fair market value for purposes of one or more
awards will be based on an average of closing prices (or the average of high
and low daily trading prices) for a specified period preceding the relevant
date).

 

 

5.7          Transfer Restrictions.

 

5.7.1       Limitations
on Exercise and Transfer.  Unless otherwise expressly provided in (or
pursuant to) this Section 5.7 or required by applicable law: (a) all awards are
non-transferable and shall not be subject in any manner to sale, transfer,
anticipation, alienation, assignment, pledge, encumbrance or charge; (b) awards
shall be exercised only by the participant; and (c) amounts payable or shares
issuable pursuant to any award shall be delivered only to (or for the account
of) the participant.

 

5.7.2       Exceptions.  The Administrator may permit awards to be
exercised by and paid to, or otherwise transferred to, other persons or
entities pursuant to such conditions and procedures, including limitations on
subsequent transfers, as the Administrator may, in its sole discretion,
establish in writing.  Any permitted
transfer shall be subject to compliance with applicable federal and state
securities laws and shall not be for value (other than nominal consideration,
settlement of marital property rights, or for interests in an entity in which
more than 50% of the voting interests are held by the Eligible Person or by the
Eligible Person’s family members).

 

5.7.3       Further
Exceptions to Limits on Transfer.  The exercise and transfer restrictions in
Section 5.7.1 shall not apply to:

 

(a)                                 transfers to
the Corporation (for example, in connection with the expiration or termination
of the award),

 

(b)                                the designation
of a beneficiary to receive benefits in the event of the participant’s death
or, if the participant has died, transfers to or exercise by the participant’s
beneficiary, or, in the absence of a validly designated beneficiary, transfers
by will or the laws of descent and distribution,

 

(c)                                 subject to any
applicable limitations on ISOs, transfers to a family member (or former family
member) pursuant to a domestic relations order if approved or ratified by the
Administrator,

 

(d)                                if the
participant has suffered a disability, permitted transfers or exercises on
behalf of the participant by his or her legal representative, or

 

(e)                                 the
authorization by the Administrator of “cashless exercise” procedures with third
parties who provide financing for the purpose of (or who otherwise facilitate)
the exercise of awards consistent with applicable laws and the express
authorization of the Administrator.

 

5.8                              International Awards.  One or more awards may be granted to Eligible
Persons who provide services to the Corporation or one of its Subsidiaries
outside of the United States.  Any awards
granted to such persons may be granted pursuant to the terms and conditions of
any applicable sub-plans, if any, appended to this Plan and approved by the
Administrator.

 

6.     EFFECT OF TERMINATION OF EMPLOYMENT
OR SERVICE ON AWARDS

 

6.1                              General.  The Administrator shall establish the effect
of a termination of employment or service on the rights and benefits under each
award under this Plan and in so doing may make distinctions based upon, inter
alia, the cause of termination and type of award.  If the participant is not an employee of the
Corporation or one of its Subsidiaries and provides other services to the
Corporation or one of its Subsidiaries, the Administrator shall be the sole
judge for purposes of this Plan (unless a contract or the award otherwise
provides) of whether the participant continues to render services to the
Corporation or one of its Subsidiaries and the date, if any, upon which such
services shall be deemed to have terminated.

 

 

6.2                              Events Not Deemed Terminations of Service.  Unless the express policy of the Corporation
or one of its Subsidiaries, or the Administrator, otherwise provides, the
employment relationship shall not be considered terminated in the case of (a)
sick leave, (b) military leave, or (c) any other leave of absence authorized by
the Corporation or one of its Subsidiaries, or the Administrator; provided
that, unless reemployment upon the expiration of such leave is guaranteed by
contract or law or the Administrator otherwise provides, such leave is for a
period of not more than three months.  In
the case of any employee of the Corporation or one of its Subsidiaries on an
approved leave of absence, continued vesting of the award while on leave from
the employ of the Corporation or one of its Subsidiaries may be suspended until
the employee returns to service, unless the Administrator otherwise provides or
applicable law otherwise requires.  In no
event shall an award be exercised after the expiration of the term set forth in
the applicable award agreement.

 

6.3                              Effect of Change of Subsidiary Status.  For purposes of this Plan and any award, if
an entity ceases to be a Subsidiary of the Corporation a termination of
employment or service shall be deemed to have occurred with respect to each
Eligible Person in respect of such Subsidiary who does not continue as an
Eligible Person in respect of the Corporation or another Subsidiary that
continues as such after giving effect to the transaction or other event giving
rise to the change in status.

 

7.     ADJUSTMENTS;
ACCELERATION

 

7.1                              Adjustments.  Subject to Section 7.2, upon (or, as may be
necessary to effect the adjustment, immediately prior to): any
reclassification, recapitalization, stock split (including a stock split in the
form of a stock dividend) or reverse stock split; any merger, combination,
consolidation, or other reorganization; any spin-off, split-up, or similar
extraordinary dividend distribution in respect of the Common Stock; or any
exchange of Common Stock or other securities of the Corporation, or any
similar, unusual or extraordinary corporate transaction in respect of the
Common Stock; then the Administrator shall equitably and proportionately adjust
(1) the number and type of shares of Common Stock (or other securities) that
thereafter may be made the subject of awards (including the specific share
limits, maximums and numbers of shares set forth elsewhere in this Plan), (2)
the number, amount and type of shares of Common Stock (or other securities or
property) subject to any outstanding awards, (3) the grant, purchase, or exercise
price (which term includes the base price of any SAR or similar right) of any
outstanding awards, and/or (4) the securities, cash or other property
deliverable upon exercise or payment of any outstanding awards, in each case to
the extent necessary to preserve (but not increase) the level of incentives
intended by this Plan and the then-outstanding awards.

 

Unless
otherwise expressly provided in the applicable award agreement, upon (or, as
may be necessary to effect the adjustment, immediately prior to) any event or
transaction described in the preceding paragraph or a sale of all or
substantially all of the business or assets of the Corporation as an entirety,
the Administrator shall equitably and proportionately adjust the performance
standards applicable to any then-outstanding performance-based awards to the
extent necessary to preserve (but not increase) the level of incentives
intended by this Plan and the then-outstanding performance-based awards.

 

It
is intended that, if possible, any adjustments contemplated by the preceding
two paragraphs be made in a manner that satisfies applicable U.S. legal, tax
(including, without limitation and as applicable in the circumstances, Section
424 of the Code, Section 409A of the Code and Section 162(m) of the Code) and
accounting (so as to not trigger any charge to earnings with respect to such
adjustment) requirements.

 

Without
limiting the generality of Section 3.3, any good faith determination by the
Administrator as to whether an adjustment is required in the circumstances
pursuant to this Section 7.1, and the extent and nature of any such adjustment,
shall be conclusive and binding on all persons.

 

7.2                              Corporate Transactions - Assumption and Termination of
Awards.  Upon the
occurrence of any of the following: any merger, combination, consolidation, or
other reorganization; any exchange of Common Stock or other securities of the
Corporation; a sale of all or substantially all the business, stock or assets
of the Corporation; a dissolution of the Corporation; or any other event in
which the Corporation does not survive (or does not survive as a public company
in respect of its Common Stock); then the Administrator may make provision for
a cash payment in settlement of, or for the assumption, substitution or exchange
of any or all outstanding share-based awards or the cash, securities or
property deliverable to the holder of any or all outstanding share-based
awards, based upon, to the extent relevant under the circumstances, the
distribution or consideration payable to holders of the Common Stock upon or in
respect of such event.  Upon the
occurrence of any event described in the preceding sentence, then, unless the
Administrator has made a provision for the substitution, assumption, exchange
or other continuation or 

 

 

settlement of the award or
the award would otherwise continue in accordance with its terms in the
circumstances: (1) subject to Section 7.4 and unless otherwise provided in the
applicable award agreement, each then-outstanding option and SAR shall become
fully vested, all shares of restricted stock then outstanding shall fully vest
free of restrictions, and each other award granted under this Plan that is then
outstanding shall become payable to the holder of such award; and (2) each
award shall terminate upon the related event; provided that the holder of an
option or SAR shall be given reasonable advance notice of the impending
termination and a reasonable opportunity to exercise his or her outstanding
vested options and SARs (after giving effect to any accelerated vesting
required in the circumstances) in accordance with their terms before the
termination of such awards (except that in no case shall more than ten days’
notice of the impending termination be required and any acceleration of vesting
and any exercise of any portion of an award that is so accelerated may be made
contingent upon the actual occurrence of the event).

 

Without limiting the preceding paragraph, in
connection with any event referred to in the preceding paragraph or any change
in control event defined in any applicable award agreement, the Administrator
may, in its discretion, provide for the accelerated vesting of any award or
awards as and to the extent determined by the Administrator in the
circumstances.

 

The
Administrator may adopt such valuation methodologies for outstanding awards as
it deems reasonable in the event of a cash or property settlement and, in the
case of options, SARs or similar rights, but without limitation on other
methodologies, may base such settlement solely upon the excess if any of the
per share amount payable upon or in respect of such event over the exercise or
base price of the award.

 

In
any of the events referred to in this Section 7.2, the Administrator may take
such action contemplated by this Section 7.2 prior to such event (as opposed to
on the occurrence of such event) to the extent that the Administrator deems the
action necessary to permit the participant to realize the benefits intended to
be conveyed with respect to the underlying shares.  Without limiting the generality of the
foregoing, the Administrator may deem an acceleration to occur immediately
prior to the applicable event and/or reinstate the original terms of the award
if an event giving rise to an acceleration does not occur.

 

Without
limiting the generality of Section 3.3, any good faith determination by the
Administrator pursuant to its authority under this Section 7.2 shall be
conclusive and binding on all persons.

 

7.3                              Other Acceleration Rules.  The Administrator may override the provisions
of Section 7.2 and/or 7.4 by express provision in the award agreement and may
accord any Eligible Person a right to refuse any acceleration, whether pursuant
to the award agreement or otherwise, in such circumstances as the Administrator
may approve.  The portion of any ISO
accelerated in connection with an event referred to in Section 7.2 (or such
other circumstances as may trigger accelerated vesting of the award) shall
remain exercisable as an ISO only to the extent the applicable $100,000
limitation on ISOs is not exceeded.  To
the extent exceeded, the accelerated portion of the option shall be exercisable
as a nonqualified stock option under the Code.

 

7.4                              Golden Parachute Limitation.  Notwithstanding anything else contained in
this Section 7 to the contrary, in no event shall any award or payment be
accelerated under this Plan to an extent or in a manner so that such award or
payment, together with any other compensation and benefits provided to, or for
the benefit of, the participant under any other plan or agreement of the
Corporation or any of its Subsidiaries, would not be fully deductible by the
Corporation or one of its Subsidiaries for federal income tax purposes because
of Section 280G of the Code.  If a
participant would be entitled to benefits or payments hereunder and under any
other plan or program that would constitute “parachute payments” as defined in
Section 280G of the Code, then the participant may by written notice to the
Corporation designate the order in which such parachute payments will be
reduced or modified so that the Corporation or one of its Subsidiaries is not
denied federal income tax deductions for any “parachute payments” because of
Section 280G of the Code. 
Notwithstanding the foregoing, if a participant is a party to an
employment or other agreement with the Corporation or one of its Subsidiaries,
or is a participant in a severance program sponsored by the Corporation or one
of its Subsidiaries, that contains express provisions regarding Section 280G and/or
Section 4999 of the Code (or any similar successor provision), or the
applicable award agreement includes such provisions, the Section 280G and/or
Section 4999 provisions of such employment or other agreement or plan, as
applicable, shall control as to the awards held by that participant (for
example, and without limitation, a participant may be a party to an employment
agreement with the Corporation or one of its Subsidiaries that provides for a “gross-up”
as opposed to a “cut-back” in the event that the Section 280G thresholds are
reached or exceeded in connection with a change in control and, in such event,
the Section 280G and/or Section 4999 provisions of such employment agreement
shall control as to any awards held by that participant).

 

 

8.     OTHER PROVISIONS

 

8.1                              Compliance with Laws.  This Plan, the granting and vesting of awards
under this Plan, the offer, issuance and delivery of shares of Common Stock,
and/or the payment of money under this Plan or under awards are subject to
compliance with all applicable federal and state laws, rules and regulations
(including but not limited to state and federal securities law and federal
margin requirements) and to such approvals by any listing, regulatory or
governmental authority as may, in the opinion of counsel for the Corporation,
be necessary or advisable in connection therewith.  The person acquiring any securities under
this Plan will, if requested by the Corporation or one of its Subsidiaries,
provide such assurances and representations to the Corporation or one of its
Subsidiaries as the Administrator may deem necessary or desirable to assure
compliance with all applicable legal and accounting requirements.

 

8.2                              No Rights to Award.  No person shall have any claim or rights to
be granted an award (or additional awards, as the case may be) under this Plan,
subject to any express contractual rights (set forth in a document other than
this Plan) to the contrary.

 

8.3                              No Employment/Service Contract.  Nothing contained in this Plan (or in any
other documents under this Plan or in any award) shall confer upon any Eligible
Person or other participant any right to continue in the employ or other
service of the Corporation or one of its Subsidiaries, constitute any contract
or agreement of employment or other service or affect an employee’s status as
an employee at will, nor shall interfere in any way with the right of the
Corporation or one of its Subsidiaries to change a person’s compensation or
other benefits, or to terminate his or her employment or other service, with or
without cause.  Nothing in this Section
8.3, however, is intended to adversely affect any express independent right of
such person under a separate employment or service contract other than an award
agreement.

 

8.4                              Plan Not Funded.  Awards payable under this Plan shall be
payable in shares or from the general assets of the Corporation, and no special
or separate reserve, fund or deposit shall be made to assure payment of such
awards.  No participant, beneficiary or
other person shall have any right, title or interest in any fund or in any
specific asset (including shares of Common Stock, except as expressly otherwise
provided) of the Corporation or one of its Subsidiaries by reason of any award
hereunder.  Neither the provisions of
this Plan (or of any related documents), nor the creation or adoption of this
Plan, nor any action taken pursuant to the provisions of this Plan shall
create, or be construed to create, a trust of any kind or a fiduciary
relationship between the Corporation or one of its Subsidiaries and any
participant, beneficiary or other person. 
To the extent that a participant, beneficiary or other person acquires a
right to receive payment pursuant to any award hereunder, such right shall be
no greater than the right of any unsecured general creditor of the Corporation.

 

8.5                              Tax Withholding.  Upon any exercise, vesting, or payment of any
award or upon the disposition of shares of Common Stock acquired pursuant to
the exercise of an ISO prior to satisfaction of the holding period requirements
of Section 422 of the Code, the Corporation or one of its Subsidiaries shall
have the right at its option to:

 

(a)                                 require the
participant (or the participant’s personal representative or beneficiary, as
the case may be) to pay or provide for payment of at least the minimum amount
of any taxes which the Corporation or one of its Subsidiaries may be required
to withhold with respect to such award event or payment; or

 

(b)                                deduct from any
amount otherwise payable in cash to the participant (or the participant’s
personal representative or beneficiary, as the case may be) the minimum amount
of any taxes which the Corporation or one of its Subsidiaries may be required
to withhold with respect to such cash payment.

 

 

In any case where a tax is
required to be withheld in connection with the delivery of shares of Common
Stock under this Plan, the Administrator may in its sole discretion (subject to
Section 8.1) require or grant (either at the time of the award or thereafter)
to the participant the right to elect, pursuant to such rules and subject to
such conditions as the Administrator may establish, that the Corporation reduce
the number of shares to be delivered by (or otherwise reacquire) the
appropriate number of shares, valued in a consistent manner at their fair
market value or at the sales price in accordance with authorized procedures for
cashless exercises, necessary to satisfy the minimum applicable withholding
obligation on exercise, vesting or payment. 
In no event shall the shares withheld exceed the minimum whole number of
shares required for tax withholding under applicable law.

 

8.6          Effective Date, Termination and Suspension, Amendments.

 

8.6.1       Effective
Date.  This Plan
is effective as of June 9, 2008, the Stockholder Approval Date (the “Effective Date”).  Unless earlier terminated by the Board, this
Plan shall terminate at the close of business on the day before the tenth
anniversary of the date of Board approval of the Plan.  After the termination of this Plan either
upon such stated expiration date or its earlier termination by the Board, no
additional awards may be granted under this Plan, but previously granted awards
(and the authority of the Administrator with respect thereto, including the
authority to amend such awards) shall remain outstanding in accordance with
their applicable terms and conditions and the terms and conditions of this
Plan.

 

8.6.2       Board
Authorization.  The Board
may, at any time, terminate or, from time to time, amend, modify or suspend
this Plan, in whole or in part.  No
awards may be granted during any period that the Board suspends this Plan.

 

8.6.3       Stockholder
Approval.  To the
extent then required by applicable law or any applicable listing agency or
required under Sections 162, 422 or 424 of the Code to preserve the intended
tax consequences of this Plan, or deemed necessary or advisable by the Board,
any amendment to this Plan shall be subject to stockholder approval.

 

8.6.4       Amendments
to Awards.  Without
limiting any other express authority of the Administrator under (but subject
to) the express limits of this Plan, the Administrator by agreement or
resolution may waive conditions of or limitations on awards to participants
that the Administrator in the prior exercise of its discretion has imposed,
without the consent of a participant, and (subject to the requirements of
Sections 3.2 and 8.6.5) may make other changes to the terms and conditions of
awards.  Any amendment or other action
that would constitute a repricing of an award is subject to the limitations set
forth in Section 3.2(g).

 

8.6.5       Limitations
on Amendments to Plan and Awards.  No amendment, suspension or termination of
this Plan or amendment of any outstanding award agreement shall, without
written consent of the participant, affect in any manner materially adverse to
the participant any rights or benefits of the participant or obligations of the
Corporation under any award granted under this Plan prior to the effective date
of such change.  Changes, settlements and
other actions contemplated by Section 7 shall not be deemed to constitute
changes or amendments for purposes of this Section 8.6.

 

8.7                              Privileges of Stock Ownership.  Except as otherwise expressly authorized by
the Administrator, a participant shall not be entitled to any privilege of
stock ownership as to any shares of Common Stock not actually delivered to and
held of record by the participant. 
Except as expressly required by Section 7.1 or otherwise expressly
provided by the Administrator, no adjustment will be made for dividends or
other rights as a stockholder for which a record date is prior to such date of
delivery.

 

8.8          Governing Law; Construction; Severability.

 

8.8.1       Choice of
Law.  This Plan, the awards, all
documents evidencing awards and all other related documents shall be governed
by, and construed in accordance with the laws of the State of Delaware.

 

8.8.2       Severability.  If a court of competent jurisdiction holds
any provision invalid and unenforceable, the remaining provisions of this Plan
shall continue in effect.

 

 

8.8.3                    Plan Construction.

 

(a)                                 Rule 16b-3.  It is the intent of the Corporation that the
awards and transactions permitted by awards be interpreted in a manner that, in
the case of participants who are or may be subject to Section 16 of the
Exchange Act, qualify, to the maximum extent compatible with the express terms
of the award, for exemption from matching liability under Rule 16b-3
promulgated under the Exchange Act. 
Notwithstanding the foregoing, the Corporation shall have no liability
to any participant for Section 16 consequences of awards or events under awards
if an award or event does not so qualify.

 

(b)                                Section 162(m).  Awards under Section 5.1.4 to persons
described in Section 5.2 that are either granted or become vested, exercisable
or payable based on attainment of one or more performance goals related to the
Business Criteria, as well as Qualifying Options and Qualifying SARs granted to
persons described in Section 5.2, that are approved by a committee composed
solely of two or more outside directors (as this requirement is applied under
Section 162(m) of the Code) shall be deemed to be intended as performance-based
compensation within the meaning of Section 162(m) of the Code unless such
committee provides otherwise at the time of grant of the award.  It is the further intent of the Corporation
that (to the extent the Corporation or one of its Subsidiaries or awards under
this Plan may be or become subject to limitations on deductibility under
Section 162(m) of the Code) any such awards and any other Performance-Based
Awards under Section 5.2 that are granted to or held by a person subject to
Section 162(m) will qualify as performance-based compensation or otherwise be
exempt from deductibility limitations under Section 162(m).

 

8.9                              Captions.  Captions and headings are given to the
sections and subsections of this Plan solely as a convenience to facilitate
reference.  Such headings shall not be
deemed in any way material or relevant to the construction or interpretation of
this Plan or any provision thereof.

 

8.10                       Stock-Based Awards in Substitution for Stock Options or
Awards Granted by Other Corporation.  Awards may be granted to Eligible Persons in
substitution for or in connection with an assumption of employee stock options,
SARs, restricted stock or other stock-based awards granted by other entities to
persons who are or who will become Eligible Persons in respect of the
Corporation or one of its Subsidiaries, in connection with a distribution,
merger or other reorganization by or with the granting entity or an affiliated
entity, or the acquisition by the Corporation or one of its Subsidiaries,
directly or indirectly, of all or a substantial part of the stock or assets of
the employing entity.  The awards so
granted need not comply with other specific terms of this Plan, provided the
awards reflect only adjustments giving effect to the assumption or substitution
consistent with the conversion applicable to the Common Stock in the
transaction and any change in the issuer of the security.  Any shares that are delivered and any awards
that are granted by, or become obligations of, the Corporation, as a result of
the assumption by the Corporation of, or in substitution for, outstanding
awards previously granted by an acquired company (or previously granted by a
predecessor employer (or direct or indirect parent thereof) in the case of
persons that become employed by the Corporation or one of its Subsidiaries in
connection with a business or asset acquisition or similar transaction) shall
not be counted against the Share Limit or other limits on the number of shares
available for issuance under this Plan.

 

8.11                       Non-Exclusivity of Plan.  Nothing in this Plan shall limit or be deemed
to limit the authority of the Board or the Administrator to grant awards or
authorize any other compensation, with or without reference to the Common
Stock, under any other plan or authority.

 

8.12                       No Corporate Action Restriction.  The existence of this Plan, the award
agreements and the awards granted hereunder shall not limit, affect or restrict
in any way the right or power of the Board or the stockholders of the
Corporation to make or authorize: (a) any adjustment, recapitalization,
reorganization or other change in the capital structure or business of the
Corporation or any Subsidiary, (b) any merger, amalgamation, consolidation or
change in the ownership of the Corporation or any Subsidiary, (c) any issue of
bonds, debentures, capital, preferred or prior preference stock ahead of or
affecting the capital stock (or the rights thereof) of the Corporation or any
Subsidiary, (d) any dissolution or liquidation of the Corporation or any
Subsidiary, (e) any sale or transfer of all or any part of the assets or
business of the Corporation or any Subsidiary, or (f) any other corporate act
or proceeding by the Corporation or any Subsidiary.  No participant, beneficiary or any other
person shall have any claim under any award or award agreement against any
member of the Board or the Administrator, or the Corporation or any employees,
officers or agents of the Corporation or any Subsidiary, as a result of any
such action.

 

 

8.13                       Other Company Benefit and Compensation Programs.  Payments and other benefits received by a
participant under an award made pursuant to this Plan shall not be deemed a
part of a participant’s compensation for purposes of the determination of
benefits under any other employee welfare or benefit plans or arrangements, if
any, provided by the Corporation or any Subsidiary, except where the
Administrator expressly otherwise provides or authorizes in writing.  Awards under this Plan may be made in
addition to, in combination with, as alternatives to or in payment of grants,
awards or commitments under any other plans or arrangements of the Corporation
or its Subsidiaries.

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