Document:

Exhibit 4.4(b)  

EXECUTION COPY  

FIRST AMENDMENT  

        FIRST AMENDMENT, dated as of May 9, 2003 (this "First Amendment"), to the Credit Agreement, dated as of
July 7, 1999 (as the same may be further amended, supplemented or otherwise modified from time to time, the "Credit Agreement"), among The Yankee
Candle Company, Inc., a Massachusetts corporation (the "Company"), the several lenders from time to time parties thereto (the
"Lenders"), and JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), a New York banking corporation, as administrative agent for the
Lenders (in such capacity, the "Administrative Agent"). 

W I T N E S S E T H:  

        WHEREAS, the Company, the Lenders and the Administrative Agent are parties to the Credit Agreement; 

        WHEREAS,
the Company has requested that the Lenders amend the Credit Agreement as set forth herein; and 

        WHEREAS,
the Lenders and the Administrative Agent are willing to agree to such amendment to the Credit Agreement, subject to the terms and conditions set forth herein; 

        NOW,
THEREFORE, in consideration of the premises and mutual covenants contained herein, the Company, the Lenders and the Administrative Agent hereby agree as follows: 

        1.    Defined Terms.    Unless otherwise defined herein, capitalized terms which are defined in the Credit Agreement
are used herein as therein defined. 

        2.    Amendments to Section 8.9 (Limitation an Dividends).    Section 8.9 of the Credit Agreement is
hereby amended by (i) deleting the word "and" from the end of paragraph (b), (ii) deleting from paragraph (c) the phrase "and repurchase common stock of the Company";
(iii) deleting the period from the end of paragraph (c) and substituting therefor the phrase "; and" and (iv) adding the following new paragraph at the end thereof: 

        (d)    so
long as no Default or Event of Default has occurred or would occur after giving effect to any such purchase, the Company may, at any time the Leverage Ratio in effect
is less than or equal to 2.00:1:00, purchase shares of its common stock for an aggregate consideration not to exceed $100,000,000. 

        3.    Representations and Warranties.    The Company hereby confirms, reaffirms and restates the representations and
warranties set forth in Section 5 of the Credit Agreement. The Company represents and warrants that, after giving effect to this First Amendment, no Default or Event of Default has occurred and
is continuing. 

        4.    Effectiveness.    This First Amendment shall become effective on the date (the
"Effective Date") on which the Administrative Agent notifies the Company that it has received counterparts of this First Amendment duly executed by the
Company and the Required Lenders. 

        5.    Continuing Effect of the Credit Agreement.    This First Amendment shall not constitute an amendment of any
other provision of the Credit Agreement not expressly referred to herein and shall not be construed as a waiver or consent to any further or future action on the part of the Company that would require
a waiver or consent of the Lenders or the Administrative Agent. Except as expressly amended hereby, the provisions of the Credit Agreement are and shall remain in full force and effect. 

        6.    Counterparts.    This First Amendment may be executed by the parties hereto in any number of separate
counterparts (including telecopied counterparts), each of which shall be deemed to be an original, and all of which taken together shall be deemed to constitute one and the same instrument. 

 

        7.    GOVERNING LAW.    THIS FIRST AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS FIRST AMENDMENT
SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

        8.    Expenses.    The Company agrees to pay or reimburse the Administrative Agent for all of its
out-of-pocket costs and expenses incurred in connection with the preparation, negotiation and execution of this First Amendment, including, without limitation, the fees and
disbursements of counsel to the Administrative Agent. 

        [rest
of page intentionally left blank] 

2

 

        IN
WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed and delivered by their respective proper and duly authorized officers as of the day and year
first above written. 

	 	 	THE YANKEE CANDLE COMPANY, INC.
	 	 	 	 	 
	 	 	By:	 	/s/  ROBERT R. SPELLMAN      
 Title: Chief Financial Officer
	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, as Administrative

Agent and as a Lender
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/  WILLIAM J. CAGGIANO      
	 	 	 	 	
 Title:  Managing Director
	 	 	 	 	 
	 	 	 	 	 

3

 

	 	 	Signature page to the First Amendment dated as of May 9, 2003 under The Yankee Candle Company, Inc. Credit Agreement dated as of July 7, 1999
	 	 	 	 	 
	 	 	 	 	 
	 	 	
 Bank of America
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/  LAWRENCE J. GORDON      
	 	 	 	 	
 Name:  Lawrence J. Gordon

Title:    Principal

4

 

	 	 	Signature page to the First Amendment dated as of May 9, 2003 under The Yankee Candle Company, Inc. Credit Agreement dated as of July 7, 1999
	 	 	 	 	 
	 	 	 	 	 
	 	 	THE BANK OF NOVA SCOTIA
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/  TODD MELLER      
	 	 	 	 	
 Todd Meller

Managing Director

5

 

	 	 	Signature page to the First Amendment dated as of May 9, 2003 under The Yankee Candle Company, Inc. Credit Agreement dated as of July 7, 1999
	 	 	 	 	 
	 	 	 	 	 
	 	 	Citizens Bank of Massachusetts
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/  DANIEL BERNARD      
	 	 	 	 	
 Daniel Bernard

Title:  Vice President

6

 

	 	 	Signature page to the First Amendment dated as of May 9, 2003 under The Yankee Candle Company, Inc. Credit Agreement dated as of July 7, 1999
	 	 	 	 	 
	 	 	 	 	 
	 	 	Fleet National Bank
	 	 	
 Name of Lender
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/  SHERYL L. MCQUADE      
	 	 	 	 	
 Sheryl L. McQuade

Title:  Vice President

7

 

	 	 	Signature page to the First Amendment dated as of May 9, 2003 under The Yankee Candle Company, Inc. Credit Agreement dated as of July 7, 1999
	 	 	 	 	 
	 	 	 	 	 
	 	 	HSBC Bank USA
	 	 	
 [Name of Lender]
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/  CHARLES R. KREUTER      
	 	 	 	 	
 Charles R. Kreuter

Title:  Vice President

8

 

	 	 	Signature page to the First Amendment dated as of May 9, 2003 under The Yankee Candle Company, Inc. Credit Agreement dated as of July 7, 1999
	 	 	 	 	 
	 	 	 	 	 
	 	 	 
	 	 	
 Merrill Lynch Capital Corporation
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/  NANCY E. MEADOWS      
	 	 	 	 	
 Title:  Assistant Vice President

9

 

	 	 	Signature page to the First Amendment dated as of May 9, 2003 under The Yankee Candle Company, Inc. Credit Agreement dated as of July 7, 1999
	 	 	 	 	 
	 	 	 	 	 
	 	 	Sovereign Bank
	 	 	
 Name of Lender
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/  DAVID HOBERT      
	 	 	 	 	
 Title:  Senior Vice President

10

 

	 	 	Signature page to the First Amendment dated as of May 9, 2003 under The Yankee Candle Company, Inc. Credit Agreement dated as of July 7, 1999
	 	 	 	 	 
	 	 	 	 	 
	 	 	Standard Federal Bank N.A.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/  MICHELLE DEJAEGHER      
	 	 	 	 	
 Title:  Assistant Vice President

11

 

	 	 	Signature page to the First Amendment dated as of May 9, 2003 under The Yankee Candle Company, Inc. Credit Agreement dated as of July 7, 1999
	 	 	 	 	 
	 	 	 	 	 
	 	 	 
	 	 	
 Wachovia Bank, National Association
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	/s/  MARK S. SUPPLE      
	 	 	 	 	
 Name:  Mark S. Supple

Title:    Vice President

12<PAGE>

                                                                 EXHIBIT 10.12

                          AXIS CAPITAL HOLDINGS LIMITED
                     2003 LONG-TERM EQUITY COMPENSATION PLAN

                AS AMENDED AND RESTATED EFFECTIVE MARCH 14, 2003

<PAGE>

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                      PAGE
                                                                                      ----
<S>                                                                                   <C>
ARTICLE 1 Establishment, Objectives, and Duration.......................................1

ARTICLE 2 Definitions...................................................................2

ARTICLE 3 Administration................................................................6

ARTICLE 4 Shares Subject to the Plan and Maximum Awards.................................6

ARTICLE 5 Eligibility and Participation.................................................7

ARTICLE 6 Options.......................................................................7

ARTICLE 7 Stock Appreciation Rights.....................................................9

ARTICLE 8 Restricted Stock.............................................................11

ARTICLE 9 Performance Units and Performance Shares.....................................12

ARTICLE 10 Share Purchase Rights.......................................................13

ARTICLE 11 Restrictions on Shares; Puts, Rights and Rights of First Refusal............14

ARTICLE 12 Beneficiary Designation.....................................................14

ARTICLE 13 Rights of Participants......................................................15

ARTICLE 14 Change in Control...........................................................15

ARTICLE 15 Amendment, Suspension, and Termination......................................16

ARTICLE 16 Withholding.................................................................16

ARTICLE 17 Indemnification.............................................................17

ARTICLE 18 Successors..................................................................17

ARTICLE 19 Miscellaneous...............................................................17

</TABLE>

                                      - i -

<PAGE>

                          AXIS CAPITAL HOLDINGS LIMITED
                     2003 LONG-TERM EQUITY COMPENSATION PLAN

                AS AMENDED AND RESTATED EFFECTIVE MARCH 14, 2003

                                   ARTICLE 1

                     ESTABLISHMENT, OBJECTIVES, AND DURATION

         1.1 ESTABLISHMENT OF THE PLAN. AXIS Capital Holdings Limited, a company
organized and existing under Bermuda law (hereinafter referred to as the
"Company"), established an incentive compensation plan effective January 1, 2003
(the "Effective Date") to be known as the "AXIS Capital Holdings Limited 2003
Long-Term Equity Compensation Plan" (hereinafter referred to as the "Plan"). The
Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options,
Stock Appreciation Rights, Restricted Stock, Performance Shares, Performance
Units, and Share Purchase Rights.

         The Plan has been amended and restated effective March 14, 2003 (the
"Restatement Date"), subject to shareholder approval within 12 months before or
after the date the amended and restated Plan is adopted, to provide for the
merger of the Specialty Incentive Plan into the Plan and the assumption of
Awards granted under the Specialty Incentive Plan, as well as to make certain
other desired amendments to the Plan. The amended and restated Plan shall remain
in effect as provided in Section 1.3 herein.

         1.2 OBJECTIVES OF THE PLAN. The objectives of the Plan are to optimize
the profitability and growth of the Company through incentives which are
consistent with the Company's goals and which link the personal interests of
Participants to those of the Company's shareholders; to provide Participants
with an incentive for excellence in individual performance; and to promote
teamwork among Participants.

         The Plan is further intended to provide flexibility to the Company in
its ability to motivate, attract, and retain the services of Participants who
make significant contributions to the Company's success and to allow
Participants to share in the success of the Company.

         1.3 DURATION OF THE PLAN. The Plan shall remain in effect, subject to
the right of the Board of Directors to amend or terminate the Plan at any time
pursuant to Article 15 herein, until all Shares subject to it shall have been
purchased or acquired according to the Plan's provisions. However, in no event
may an Award of Incentive Stock Options be granted under the Plan after the
tenth anniversary of the Effective Date.

<PAGE>

                                   ARTICLE 2

                                   DEFINITIONS

         Whenever used in the Plan, the following terms shall have the meanings
set forth below, and, when the meaning is intended, the initial letter of the
word shall be capitalized:

         2.1 "AFFILIATE" means any person or entity which, at the time of
reference, directly, or indirectly through one or more intermediaries, controls
or is controlled by the Company.

         2.2 "AWARD" means, individually or collectively, a grant under the Plan
of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation
Rights, Restricted Stock, Performance Shares, Performance Units, or Share
Purchase Rights. Awards shall also include awards granted under the Specialty
Incentive Plan assumed by the Company on the Restatement Date.

         2.3 "AWARD AGREEMENT" means an agreement entered into by the Company
and a Participant setting forth the terms and provisions applicable to Awards
granted under the Plan.

         2.4 "BOARD" or "BOARD OF DIRECTORS" means the Board of Directors of the
Company.

         2.5 "CHANGE IN CONTROL" will be deemed to have occurred as of the first
day any of the following events occurs:

             (a) Any Person 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 50% or more of the combined voting power of the Company's
then outstanding voting securities entitled to vote generally in the election of
directors (the "Outstanding Company Voting Securities"); provided however, that
for purposes of this subsection (a), the following acquisitions shall not
constitute a Change in Control: (i) any acquisition directly from the Company,
(ii) any acquisition by the Company, (iii) any acquisition by any employee
benefit plan (or related trust) sponsored or maintained by the Company or any
Affiliate, or (iv) any acquisition by any entity pursuant to a transaction which
complies with clauses (i), (ii) and (iii) of paragraph (c) below;

             (b) Individuals who, as of the Effective Date, constitute the Board
(hereinafter referred to as the "Incumbent Board") cease for any reason to
constitute at least a majority of the Board; provided however, that any
individual becoming a director subsequent to the date herein whose election, or
nomination for election by the Company's stockholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall
be considered a member of the Incumbent Board, excluding any individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of

                                       2
<PAGE>

directors or other actual or threatened solicitation of proxies or consents by
or on behalf of a Person other than the Board;

             (c) Consummation of a reorganization, merger, share exchange,
amalgamation, recapitalization, consolidation or similar transaction by and
among the Company and another Person, including, for this purpose, a transaction
as a result of which another Person owns the Company or all or substantially all
of the Company's assets, either directly or through one or more subsidiaries (a
"Business Combination"), in each case, unless, following such Business
Combination, (i) all or substantially all of the individuals and entities who
were the beneficial owners, respectively, of the Outstanding Company Voting
Securities immediately prior to such Business Combination beneficially own,
directly or indirectly, more than 50% of the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors (or equivalent management personnel) of the Person resulting from such
Business Combination or that, as a result of such Business Combination, 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 of the Outstanding Company Voting Securities immediately prior to such
Business Combination; (ii) no Person (excluding any Person resulting from such
Business Combination, or that, as a result of such Business Combination, owns
the Company or all or substantially all of the Company's assets, either directly
or through one or more subsidiaries, or any employee benefit plan (or related
trust) of the foregoing) beneficially owns, directly or indirectly, 50% or more
of the then outstanding shares of common stock or the combined voting power of
the then outstanding voting securities entitled to vote generally in the
election of directors (or equivalent management personnel) of the Person
resulting from such Business Combination or that, as a result of such Business
Combination, owns the Company or all or substantially all of the Company's
assets, either directly or through one or more subsidiaries, except to the
extent that such ownership existed with respect to the Company prior to the
Business Combination; and (iii) at least a majority of the members of the board
of directors (or equivalent management personnel) of the Person resulting from
such Business Combination or that, as a result of such Business Combination,
owns the Company or all or substantially all of the Company's assets, either
directly or through one or more subsidiaries, were members of the Incumbent
Board at the time of the execution of the initial agreement, or of the action of
the board, pursuant to which such Business Combination is effected or approved;
or

             (d) Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company or the sale or other disposition of
all or substantially all of the Company's assets.

         2.6 "CODE" means the Internal Revenue Code of 1986, as amended from
time to time.

         2.7 "COMMITTEE" means the Compensation Committee of the Board, as
specified in Article 3 herein, or such other committee appointed by the Board to
administer the Plan.

                                       3
<PAGE>

         2.8 "COMPANY" means AXIS Capital Holdings Limited, a company organized
and existing under the laws of the Islands of Bermuda, and any successor thereto
as provided in Article 18 herein.

         2.9 "CONSULTANT" means an independent contractor that provides
consulting services to the Company or an Affiliate.

         2.10 "DIRECTOR" means any individual who is a member of the Board of
Directors of the Company or an Affiliate.

         2.11 "DISABILITY" shall have the meaning ascribed to such term in the
employee health care plan maintained by the Company, or if no such plan exists,
at the discretion of the Committee.

         2.12 "EFFECTIVE DATE" shall have the meaning ascribed to such term in
Section 1.1 herein.

         2.13 "EMPLOYEE" means any employee of the Company or an Affiliate.
Directors and Consultants who are not employed by the Group shall not be
considered Employees under the Plan.

         2.14 "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended from time to time.

         2.15 "EXERCISE PRICE" means the price at which a Share may be purchased
by a Participant pursuant to an Option.

         2.16 "FAIR MARKET VALUE" means the closing sale price of a Share on the
principal securities exchange or market on which the Shares are traded or, if
there is no such sale on the relevant date, then on the last previous day on
which a sale was reported or, if the Shares are not publicly traded, the fair
market value of the Shares as determined in good faith by the Committee.

         2.17 "FREESTANDING SAR" means an SAR that is granted independently of
any Options, as described in Article 7 herein.

         2.18 "GROUP" means the Company and its Affiliates.

         2.19 "INCENTIVE STOCK OPTION" or "ISO" means a stock option to purchase
Shares that is intended to meet the requirements of Code Section 422.

         2.20 "NONEMPLOYEE DIRECTOR" shall have the meaning ascribed to such
term in Rule 16b-3 of the Exchange Act.

         2.21 "NONQUALIFIED STOCK OPTION" or "NQSO" means a stock option to
purchase Shares that is not intended to constitute an ISO.

         2.22 "OPTION" means an Incentive Stock Option or a Nonqualified Stock
Option granted pursuant to Article 6 herein.

                                       4
<PAGE>

         2.23 "PARTICIPANT" means a current or former Employee, Director or
Consultant who has outstanding an Award granted under the Plan.

         2.24 "PERFORMANCE SHARE" means an Award described in Article 9 herein.

         2.25 "PERFORMANCE UNIT" means an Award described in Article 9 herein.

         2.26 "PERIOD OF RESTRICTION" means the period during which the transfer
of Shares of Restricted Stock is limited in some way (based on the passage of
time, the achievement of performance goals, or upon the occurrence of other
events as determined by the Committee, at its discretion) and the Shares are
subject to a substantial risk of forfeiture, as provided in Article 8 herein.

         2.27 "PERSON" shall have the meaning ascribed to such term in Section
3(a)(9) of the Exchange Act and used in Sections 13(d) and 14(d) thereof,
including a "group" as defined in Section 13(d) thereof.

         2.28 "RESTATEMENT DATE" shall have the meaning ascribed to such term in
Section 1.1 herein.

         2.29 "RESTRICTED STOCK" means an Award granted pursuant to Article 8
herein.

         2.30 "RETIREMENT" unless defined otherwise in an Award Agreement,
means:

             (a) for an Employee, such Employee's termination of employment with
all members of the Group but only if either (i) such termination shall have
occurred on or after the date on which he or she shall have attained age 60 and
prior to such termination such Employee shall have completed 10 years of
continuous employment with any one or more members of the Group or (ii) such
termination shall have occurred on or after the date on which he or she shall
have attained age 60 and the Committee by affirmative action determines such
termination shall constitute a Retirement for purposes of the Plan; and

             (b) for a Director, such Director's termination of service with all
members of the Group but only if either (i) such termination shall have occurred
on or after the date on which he or she shall have attained age 60 and prior to
such termination such Director shall have completed 10 years of continuous
employment with any one or more members of the Group or (ii) such termination
shall have occurred on or after the date on which he or she shall have attained
age 60 and the Board by affirmative action determines such termination shall
constitute a Retirement for purposes of the Plan.

         Consultants shall not be eligible for Retirement hereunder.

         2.31 "SHARE PURCHASE RIGHT" means the right to purchase Shares granted
pursuant to Article 10 herein.

         2.32 "SHARES" means shares of the Company's common stock, par value
U.S. $0.10 per share.

                                       5
<PAGE>

         2.33 "SPECIALTY INCENTIVE PLAN" means the AXIS Specialty Limited
Long-Term Equity Compensation Plan, as amended from time to time. 2.34 "STOCK
APPRECIATION RIGHT" or "SAR" means an Award granted alone or in connection with
a related Option pursuant to the terms of Article 7 herein.

         2.35 "TANDEM SAR" means an SAR that is granted in connection with a
related Option pursuant to Article 7 herein.

                                   ARTICLE 3

                                 ADMINISTRATION

         3.1 THE COMMITTEE. The Plan shall be administered by the Compensation
Committee of the Board, or by any other committee appointed by the Board. To the
extent the Company deems it to be necessary or desirable with respect to any
Awards made hereunder, the members of the Committee may be limited to
Nonemployee Directors who shall be appointed from time to time by, and shall
serve at the discretion of, the Board of Directors.

         3.2 AUTHORITY OF THE COMMITTEE. Except as limited by law or by the
Memorandum of Association or the Bye-laws of the Company, and subject to the
provisions herein, the Committee shall have full power to select Employees,
Directors and Consultants who shall participate in the Plan; determine the sizes
and types of Awards; determine the terms and conditions of Awards in a manner
consistent with the Plan; construe and interpret the Plan and any agreement or
instrument entered into under the Plan; establish, amend, or waive rules and
regulations for the Plan's administration; and (subject to the provisions of
Article 15 herein) amend the terms and conditions of any outstanding Award to
the extent such terms and conditions are within the discretion of the Committee.
Further, the Committee shall make all other determinations which may be
necessary or advisable for the administration of the Plan. As permitted by law,
the Committee may delegate its authority as identified herein.

         3.3 DECISIONS BINDING. All determinations and decisions made by the
Committee or the Board pursuant to the provisions of the Plan and all related
orders and resolutions of the Committee or the Board shall be final, conclusive
and binding on all persons, including the Company, its Affiliates, its
shareholders, Directors, Employees, Consultants, Participants, and their estates
and beneficiaries.

                                   ARTICLE 4

                  SHARES SUBJECT TO THE PLAN AND MAXIMUM AWARDS

         4.1 NUMBER OF SHARES AVAILABLE FOR GRANTS.

             (a) SHARE PURCHASE RIGHTS. Subject to adjustment as provided in
Section 4.2 herein, the maximum number of Shares that may be offered for
purchase pursuant to Share Purchase Rights shall be 150,000 Shares. In
determining the number of Shares offered for purchase pursuant to Share Purchase
Rights, Shares

                                       6
<PAGE>

offered for purchase pursuant to share purchase rights granted under the
Specialty Incentive Plan and assumed by the Plan shall be included.

             (b) OTHER AWARDS. Subject to adjustment as provided in Section 4.2
herein, the maximum number of Shares available for Awards to Participants under
the Plan other than pursuant to Share Purchase Rights shall be equal to
1,706,899. In determining the number of Shares subject to outstanding Awards
hereunder, Awards granted under the Specialty Incentive Plan and assumed by the
Plan shall be included. If any Award is forfeited or for any reason expires, is
terminated, or is cancelled without exercise if an Option or SAR, without
vesting if Restricted Stock, or without having been earned if a Performance
Share or Performance Unit, the Shares subject to such Award shall again be
available for grant or issuance under the Plan.

         4.2 ADJUSTMENTS IN AUTHORIZED SHARES. In the event of any change in
capitalization of the Company, including, but not limited to, a stock split,
stock dividend, merger, recapitalization, share exchange, amalgamation,
consolidation, reorganization (whether or not such reorganization comes within
the definition of such term in Code Section 368), separation, including a
spin-off or other distribution of stock or property of the Company, or any
partial or complete liquidation of the Company, such adjustment shall be made to
the (a) maximum number of Shares available for grants under the Plan, as
provided in Section 4.1, and/or kind of Shares that may be delivered under the
Plan, and (b) number, kind and/or price of Shares (I.E., Exercise Price for
Options, grant price for SARs, initial value for Performance Shares and
Performance Units, and purchase price for Share Purchase Rights) subject to
outstanding Awards granted under the Plan, as may be determined to be
appropriate and equitable by the Committee, in its sole discretion, to prevent
dilution or enlargement of rights; provided, however, that the number of Shares
subject to the Plan and/or any Award shall always be rounded to the nearest
whole number, with one-half (1/2) of a share rounded up to the next higher
number.

                                   ARTICLE 5

                          ELIGIBILITY AND PARTICIPATION

         5.1 ELIGIBILITY. Persons eligible to participate in the Plan include
all Employees, Directors, and Consultants of the Group.

         5.2 ACTUAL PARTICIPATION. Subject to the provisions of the Plan, the
Committee may, from time to time, select from all eligible Employees, Directors
and Consultants, those to whom Awards shall be granted.

                                   ARTICLE 6

                                     OPTIONS

         6.1 GRANT OF OPTIONS. Subject to the terms and provisions of the Plan,
Options may be granted to Employees, Directors, and Consultants in such number,
and

                                       7
<PAGE>

upon such terms, and at any time and from time to time as shall be determined by
the Committee; provided, however, that only Employees may be granted ISOs.

         6.2 AWARD AGREEMENT. Each Option grant shall be evidenced by an Award
Agreement that shall specify the Exercise Price, the duration of the Option, the
number of Shares to which the Option pertains, and such other provisions as the
Committee shall determine. The Award Agreement also shall specify whether all or
a portion of the Option is intended to be an ISO or an NQSO.

         6.3 EXERCISE PRICE. The Exercise Price for each grant of an Option
under the Plan shall be no less than one hundred percent (100%) of the Fair
Market Value of a Share on the date the Option is granted.

         6.4 DURATION OF OPTIONS. Each Option granted to a Participant shall
expire at such time as the Committee shall determine at the time of grant;
provided, however, that no Option shall be exercisable later than the tenth
(10th) anniversary date of its grant.

         6.5 EXERCISE OF OPTIONS. Options shall be exercisable at such times and
subject to such restrictions and conditions as set forth in the Award Agreement
and as the Committee shall in each instance approve, which need not be the same
for each grant or for each Participant.

         6.6 PAYMENT. Options shall be exercised by the delivery of a written
notice of exercise to the Company, setting forth the full number of Shares with
respect to which the Option is to be exercised and by full payment for the
Shares.

         The Exercise Price of any Option shall be payable to the Company in
full either (a) in cash or its equivalent or (b) if permitted by the Committee,
by tendering previously acquired Shares having an aggregate Fair Market Value at
the time of exercise equal to the total Exercise Price (provided that the
Shares, other than Shares purchased by the Participant on the open market, which
are tendered must have been held by the Participant for at least six (6) months
prior to their tender to satisfy the Exercise Price), or (c) by a combination of
(a) and (b).

         Additionally, if the Company's shares are publicly traded, Options may
be exercised by a cashless exercise, as permitted under Federal Reserve Board's
Regulation T, subject to applicable securities law restrictions, or by any other
means may be allowed on such terms and conditions as the Committee, in its sole
discretion, shall determine to be consistent with the Plan's purpose and
applicable law, from time to time.

         Subject to any applicable laws and governing rules or regulations, as
soon as practicable after receipt of a written notification of exercise and full
payment, the Company shall issue to the Participant and/or a transferee of all
or a portion of the Option (provided such transfer was permitted under law and
the terms of the Plan and Award Agreement), Shares in an appropriate amount
based upon the number of Shares purchased under the Option(s).

                                       8
<PAGE>

         6.7 TERMINATION OF EMPLOYMENT OR SERVICE. Each Participant's Option
Award Agreement shall set forth the extent to which the Participant shall have
the right to exercise the Option following termination of the Participant's
employment or, if Participant is a Director or Consultant, service with the
Group. Such provisions shall be determined in the sole discretion of the
Committee, shall be included in the Award Agreement entered into with each
Participant, need not be uniform among all Options, and may reflect distinctions
based on the reasons for termination of employment or service, as the case may
be.

         6.8 NONTRANSFERABILITY OF OPTIONS.

             (a) INCENTIVE STOCK OPTIONS. No ISO granted under the Plan may be
sold, transferred, pledged, assigned, or otherwise alienated or hypothecated,
other than by will or by the laws of descent and distribution. Further, during
the lifetime of a Participant, all ISOs granted to such Participant under the
Plan shall be exercisable only by such Participant.

             (b) NONQUALIFIED STOCK OPTIONS. Except as otherwise provided in a
Participant's Award Agreement, no NQSO may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, except as otherwise provided in a
Participant's Award Agreement, during the lifetime of a Participant, all NQSOs
granted to such Participant shall be exercisable only by such Participant.

                                   ARTICLE 7

                            STOCK APPRECIATION RIGHTS

         7.1 GRANT OF SARS. Subject to the terms and conditions of the Plan,
SARs may be granted to Participants at any time and from time to time as shall
be determined by the Committee. The Committee may grant Freestanding SARs,
Tandem SARs, or any combination of these forms of SARs.

         The Committee shall have complete discretion in determining the number
of SARs granted to each Participant and in the terms and conditions pertaining
to such SARs.

         The grant price of a Freestanding SAR shall equal the Fair Market Value
of a Share on the date of grant of the SAR. The grant price of Tandem SARs shall
equal the Exercise Price of the related Option.

         7.2 EXERCISE OF TANDEM SARS. Tandem SARs may be exercised for all or
part of the Shares subject to the related Option upon the surrender of the right
to exercise the equivalent portion of the related Option. A Tandem SAR may be
exercised only with respect to the Shares for which its related Option is then
exercisable.

         Notwithstanding any other provision of the Plan to the contrary, with
respect to a Tandem SAR granted in connection with an ISO: (i) the Tandem SAR
will expire no later than the expiration of the underlying ISO; (ii) the value
of the payout with respect to the

                                       9
<PAGE>

Tandem SAR may be for no more than one hundred percent (100%) of the difference
between the Exercise Price of the underlying ISO and the Fair Market Value of
the Shares subject to the underlying ISO at the time the Tandem SAR is
exercised; and (iii) the Tandem SAR may be exercised only when the Fair Market
Value of the Shares subject to the ISO exceeds the Exercise Price of the ISO.

         7.3 EXERCISE OF FREESTANDING SARS. Freestanding SARs may be exercised
upon whatever terms and conditions the Committee, in its sole discretion,
imposes upon them and sets forth in the Award Agreement.

         7.4 SAR AGREEMENT. Each SAR grant shall be evidenced by an Award
Agreement that shall specify the grant price, the term of the SAR, and such
other provisions as the Committee shall determine.

         7.5 TERM OF SARS. The term of an SAR granted under the Plan shall be
determined by the Committee, in its sole discretion; provided, however, that
such term shall not exceed ten (10) years.

         7.6 PAYMENT OF SAR AMOUNT. Upon exercise of an SAR, a Participant shall
be entitled to receive payment from the Company in an amount determined by
multiplying:

             (a) the difference between the Fair Market Value of a Share on the
date of exercise over the grant price; by

             (b) the number of Shares with respect to which the SAR is
exercised.

         At the discretion of the Committee, the payment upon SAR exercise may
be in cash, in Shares of equivalent value, or in some combination thereof.

         7.7 TERMINATION OF EMPLOYMENT OR SERVICE. Each SAR Award Agreement
shall set forth the extent to which the Participant shall have the right to
exercise the SAR following termination of the Participant's employment or, if
Participant is a Director or Consultant, service with the Group. Such provisions
shall be determined in the sole discretion of the Committee, shall be included
in the Award Agreement entered into with Participants, need not be uniform among
all SARs issued pursuant to the Plan, and may reflect distinctions based on the
reasons for termination of employment or service, as the case may be.

         7.8 NONTRANSFERABILITY OF SARS. Except as otherwise provided in a
Participant's Award Agreement, no SAR granted under the Plan may be sold,
transferred, pledged, assigned, or otherwise alienated or hypothecated, other
than by will or by the laws of descent and distribution. Further, except as
otherwise provided in a Participant's Award Agreement, during the lifetime of a
Participant, all SARs granted to such Participant under the Plan shall be
exercisable only by such Participant.

                                       10
<PAGE>

                                   ARTICLE 8

                               RESTRICTED STOCK

         8.1 GRANT OF RESTRICTED STOCK. Subject to the terms and provisions
of the Plan, the Committee, at any time and from time to time, may grant Shares
of Restricted Stock to Participants in such amounts as the Committee shall
determine.

         8.2 RESTRICTED STOCK AGREEMENT. Each Restricted Stock grant shall be
evidenced by an Award Agreement that shall specify the Period(s) of Restriction,
the number of Shares of Restricted Stock granted, and such other provisions as
the Committee shall determine.

         8.3 TRANSFERABILITY. Except as otherwise provided in a Participant's
Award Agreement, the Shares of Restricted Stock may not be sold, transferred,
pledged, assigned or otherwise alienated or hypothecated until the end of the
applicable Period of Restriction. During the lifetime of a Participant, all
rights with respect to the Restricted Stock granted to such Participant under
the Plan shall be available only to such Participant.

         8.4 RESTRICTIONS. Subject to the terms herein, the Committee shall
impose such conditions and/or restrictions on any Shares of Restricted Stock
granted pursuant to the Plan as it may deem advisable and as are set forth in
the Award Agreement including, without limitation, a requirement that
Participants pay a stipulated purchase price for each Share of Restricted Stock,
restrictions based upon the achievement of specific performance goals
(Company-wide, divisional, and/or individual), time-based restrictions on
vesting, and/or restrictions under applicable federal or state securities laws.

         The Company shall retain the certificates representing Shares of
Restricted Stock in the Company's possession until such time as all conditions
and/or restrictions applicable to such Shares have been satisfied.

         Except as otherwise provided in the Plan, a Participant's Award
Agreement or as otherwise provided by the Committee, Shares of Restricted Stock
shall become freely transferable by the Participant after the last day of the
applicable Period of Restriction.

         8.5 VOTING RIGHTS. During the Period of Restriction, subject to any
limitations imposed under the Bye-laws of the Company or in an Award Agreement,
Participants holding Shares of Restricted Stock granted hereunder may exercise
full voting rights with respect to those Shares.

         8.6 DIVIDENDS AND OTHER DISTRIBUTIONS. During the Period of
Restriction, Participants holding Shares of Restricted Stock granted hereunder
may be credited with regular dividends paid with respect to the underlying
Shares while they are so held. The Committee may apply any restrictions to the
dividends that the Committee deems appropriate and as are set forth in the Award
Agreement.

                                       11
<PAGE>

         8.7 TERMINATION OF EMPLOYMENT OR SERVICE. Each Award Agreement shall
set forth the extent to which the Participant shall have the right to receive
unvested Restricted Shares following termination of the Participant's employment
or, if Participant is a Director or Consultant, service with the Group. Such
provisions shall be determined in the sole discretion of the Committee, shall be
included in the Award Agreement entered into with each Participant, need not be
uniform among all Shares of Restricted Stock issued pursuant to the Plan, and
may reflect distinctions based on the reasons for termination of employment or
service, as the case may be.

                                   ARTICLE 9

                    PERFORMANCE UNITS AND PERFORMANCE SHARES

         9.1 GRANT OF PERFORMANCE UNITS/SHARES. Subject to the terms of the
Plan, Performance Units and/or Performance Shares may be granted to Participants
in such amounts and upon such terms, and at any time and from time to time, as
shall be determined by the Committee and as shall be set forth in the Award
Agreement.

         9.2 VALUE OF PERFORMANCE UNITS/SHARES. Each Performance Unit shall have
an initial value that is established by the Committee at the time of grant. Each
Performance Share shall have an initial value equal to the Fair Market Value of
a Share on the date of grant. The Committee shall set performance goals in its
discretion which, depending on the extent to which they are met, will determine
the number and/or value of Performance Units/Shares that will be paid out to the
Participant. For purposes of this Article 9, the time period during which the
performance goals must be met shall be called a "Performance Period."

         9.3 EARNING OF PERFORMANCE UNITS/SHARES. Except as otherwise provided
in an Award Agreement, after the applicable Performance Period has ended, a
holder of Performance Units/Shares shall be entitled to receive payout on the
number and value of Performance Units/Shares earned by him or her over the
Performance Period, to be determined as a function of the extent to which the
corresponding performance goals have been achieved.

         9.4 FORM AND TIMING OF PAYMENT OF PERFORMANCE UNITS/SHARES. Payment of
earned Performance Units/Shares shall be made in a single lump sum following the
close of the applicable Performance Period. Subject to the terms of the Plan,
the Committee, in its sole discretion, may pay earned Performance Units/Shares
in the form of cash or in Shares (or in a combination thereof), which have an
aggregate Fair Market Value equal to the value of the earned Performance
Units/Shares at the close of the applicable Performance Period. Such
Units/Shares may be granted subject to any restrictions deemed appropriate by
the Committee and set forth in the Award Agreement.

         At the discretion of the Committee, Participants may be entitled to
receive any dividends declared with respect to Shares which have been earned in
connection with grants of Performance Units and/or Performance Shares which have
been earned, but not yet distributed to Participants. In addition, Participants
may, if the Committee so

                                       12
<PAGE>

determines and subject to any limitations imposed under the Bye-laws of the
Company or in an Award Agreement, exercise voting rights with respect to such
Shares.

         9.5 TERMINATION OF EMPLOYMENT OR SERVICE. Each Award Agreement shall
set forth the extent to which the Participant shall have the right to receive
Performance Units/Shares following termination of the Participant's employment
or, if Participant is a Director or Consultant, service with the Group. Such
provisions shall be determined in the sole discretion of the Committee, shall be
included in the Award Agreement entered into with Participants, need not be
uniform among all Performance Units/Shares issued pursuant to the Plan, and may
reflect distinctions based on the reasons for termination of employment or
service, as the case may be.

         9.6 NONTRANSFERABILITY. Except as otherwise provided in a Participant's
Award Agreement, Performance Units/Shares may not be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will or by the
laws of descent and distribution. Further, except as otherwise provided in a
Participant's Award Agreement, during the lifetime of a Participant, such
Participant's rights under the Plan shall be exercisable only by the Participant
or the Participant's legal representative.

                                   ARTICLE 10

                              SHARE PURCHASE RIGHTS

         10.1 GRANT OF SHARE PURCHASE RIGHTS. Subject to the terms and
provisions of the Plan, Share Purchase Rights may be granted to Employees in
such number, and upon such terms, and at any time and from time to time as shall
be determined by the Committee. Only Employees are eligible to receive Share
Purchase Rights.

         10.2 AWARD AGREEMENT. Each Share Purchase Right grant may be evidenced
by an Award Agreement that shall specify the purchase price, the period during
which the Shares may be purchased, the number of Shares to which the Share
Purchase Right pertains, and such other provisions as the Committee shall
determine.

         10.3 PURCHASE PRICE. The purchase price of Shares offered pursuant to a
Share Purchase Right shall be established by the Committee in its sole
discretion.

         10.4 DURATION OF STOCK PURCHASE RIGHTS. Each right granted to a
Participant shall expire at such time as the Committee shall determine and as
set forth in the Award Agreement at the time of grant.

         10.5 PAYMENT. The payment for Shares purchased pursuant to Stock
Purchase Rights shall be in cash or its equivalent. Subject to any governing
rules or regulations, as soon as practicable after receipt of full payment, the
Company shall issue to the Participant, in the Participant's name, either
individually or jointly, Shares in an appropriate amount based upon the number
of Shares purchased under the Share Purchase Right(s).

                                       13
<PAGE>

         10.6 LOANS.

             (a) To assist Employees in purchasing Shares pursuant to Share
Purchase Rights, the Company, in its sole discretion, may enter into loans with
one or more Employees. Such loans shall be full recourse and shall be secured by
the Shares purchased with the loan proceeds (plus any other security interest
specified by the Committee). Interest on the loans shall accrue at such rate as
the Committee shall determine in its sole discretion (which rate need not be
uniform among loans made at different times or to different Employees), and
shall be payable annually; provided, however, that the full principal and
interest on such loans shall become immediately due and payable in full upon
termination of the Employee's employment for any reason or upon sale or
disposition of any Shares serving as security for the loan (or at such earlier
times as the Committee may specify in the loan documents). To the extent an
Employee defaults on any loan made pursuant hereto, the Company shall have the
right to offset any other compensation otherwise payable to the Employee,
whether payable hereunder or otherwise. The Committee may impose such other
terms and conditions on loans made pursuant hereto as it may desire from time to
time; such additional terms and conditions shall be set forth in the applicable
loan documents.

             (b) Notwithstanding the above, executive officers of the Company
shall be prohibited from receiving loans under this Section.

                                   ARTICLE 11

        RESTRICTIONS ON SHARES; PUTS, RIGHTS AND RIGHTS OF FIRST REFUSAL

         11.1 RESTRICTIONS ON SHARES. All Shares acquired pursuant Awards
granted hereunder shall be subject to any applicable restrictions contained in
the Company's Bye-laws, Memorandum of Association, or Shareholders Agreement. In
addition, the Committee may impose such restrictions on any Shares acquired
pursuant to Awards as it may deem advisable, including, without limitation,
restrictions under applicable securities laws, under the requirements of any
stock exchange or market upon which such Shares are then listed and/or traded,
restrictions under any blue sky or state securities laws applicable to such
Shares.

         11.2 PUTS, CALLS AND RIGHTS OF FIRST REFUSAL. The Committee may make
Shares acquired pursuant to Awards granted hereunder subject to call rights, put
rights, and/or rights of first refusal as it may deem advisable and as set forth
in the applicable Award Agreement. Any such rights shall terminate at the time
of an initial public offering of the Shares.

                                   ARTICLE 12

                             BENEFICIARY DESIGNATION

         Subject to the terms and conditions of the Plan and applicable Award
Agreement, each Participant may, from time to time, name any beneficiary or
beneficiaries (who may be named contingently or successively) to whom any
benefit under the Plan is to

                                       14
<PAGE>

be paid in case of his or her death before he or she receives any or all of such
benefit. Each such designation shall revoke all prior designations by the same
Participant, shall be in a form prescribed by the Company, and will be effective
only when filed by the Participant in writing during the Participant's lifetime
with the party chosen by the Company, from time to time, to administer the Plan.
In the absence of any such designation, benefits remaining unpaid at the
Participant's death shall be paid to the Participant's estate.

                                   ARTICLE 13

                             RIGHTS OF PARTICIPANTS

         13.1 CONTINUED SERVICE. Nothing in the Plan shall:

             (a) interfere with or limit in any way the right of the Company to
terminate any Participant's employment or service at any time,

             (b) confer upon any Participant any right to continue in the employ
or service of any member of the Group, or

             (c) confer on any Director any right to continue to serve on the
Board of Directors of any member of the Group.

         13.2 PARTICIPATION. No Employee, Director or Consultant shall have the
right to be selected to receive an Award under the Plan, or, having been so
selected, to be selected to receive a future Award.

                                   ARTICLE 14

                                CHANGE IN CONTROL

         14.1 TREATMENT OF OUTSTANDING AWARDS. Upon the occurrence of a Change
in Control, unless otherwise specifically prohibited under applicable laws, or
by the rules and regulations of any governing governmental agencies or national
securities exchanges:

             (a) any and all Options and SARs granted hereunder shall become
immediately exercisable, and shall remain exercisable throughout their entire
term, unless exercised, cashed out, or replaced;

             (b) any Period of Restriction imposed on Restricted Shares shall
lapse; and

             (c) the target performance goals or payout opportunities attainable
under all outstanding Awards of Restricted Stock, Performance Units and
Performance Shares shall be deemed to have been fully attained for all then open
Performance Period(s).

                                       15
<PAGE>

         14.2 TERMINATION, AMENDMENT, AND MODIFICATIONS OF CHANGE-IN-CONTROL
PROVISIONS. Notwithstanding any other provision of the Plan or any Award
Agreement provision, the provisions of this Article 14 may not be terminated,
amended, or modified on or after the date of a Change in Control to affect
adversely any Award theretofore granted under the Plan without the prior written
consent of the Participant with respect to such Participant's outstanding
Awards; provided, however, the Board, upon recommendation of the Committee, may
terminate, amend, or modify this Article 14 at any time and from time to time
prior to the date of a Change in Control.

                                   ARTICLE 15

                     AMENDMENT, SUSPENSION, AND TERMINATION

         15.1 AMENDMENT, SUSPENSION, AND TERMINATION. The Board may at any time
and from time to time amend, suspend or terminate the Plan or any Award
hereunder in whole or in part; provided, however, that no amendment which
requires shareholder approval in order for the Plan to continue to comply with
any applicable tax or securities laws, or the rules of any securities exchange
on which the securities of the Company are listed, shall be effective unless
such amendment shall be approved by the requisite vote of shareholders of the
Company entitled to vote thereon; provided further that no amendment, suspension
or termination shall adversely affect any Award hereunder without the consent of
the Participant to whom such Award has been made.

         15.2 ADJUSTMENT OF AWARDS UPON THE OCCURRENCE OF CERTAIN UNUSUAL OR
NONRECURRING EVENTS. The Committee may make adjustments in the terms and
conditions of, including, without limitation, the performance targets included
in Awards in recognition of unusual or nonrecurring events (including, without
limitation, the events described in Section 4.2 herein) affecting the Company or
the financial statements of the Company or of changes in applicable laws,
regulations, or accounting principles, whenever the Committee determines that
such adjustments are appropriate in order to prevent dilution or enlargement of
the benefits or potential benefits intended to be made available under the Plan.

                                   ARTICLE 16

                                   WITHHOLDING

         16.1 TAX WITHHOLDING. The Company shall have the power and the right to
deduct or withhold, or require a Participant to remit to the Company, an amount
sufficient to satisfy any taxes, domestic or foreign, required by law or
regulation to be withheld with respect to any taxable event arising as a result
of the Plan.

         16.2 SHARE WITHHOLDING. Participants may elect, subject to the approval
of the Committee, to satisfy all or part of such withholding requirement by
having the Company withhold Shares having a Fair Market Value equal to the
minimum statutory total tax which could be imposed on the transaction. All such
elections shall be irrevocable, made in writing, signed by the Participant, and
shall be subject to any restrictions or limitations that the Committee, in its
sole discretion, deems appropriate.

                                       16
<PAGE>

                                   ARTICLE 17

                                 INDEMNIFICATION

         Each person who is or shall have been a member of the Committee, or of
the Board, shall be indemnified and held harmless by the Company to the fullest
extent permitted by applicable law against and from any loss, cost, liability,
or expense that may be imposed upon or reasonably incurred by him or her in
connection with or resulting from any claim, action, suit, or proceeding to
which he or she may be a party or in which he or she may be involved by reason
of any action taken or failure to act under the Plan and against and from any
and all amounts paid by him or her in settlement thereof, with the Company's
approval, or paid by him or her in satisfaction of any judgment in any such
action, suit, or proceeding against him or her, provided he or she shall give
the Company an opportunity, at its own expense, to handle and defend the same
before he or she undertakes to handle and defend it on his or her own behalf.
The foregoing right of indemnification is subject to the person having been
successful in the legal proceedings or having acted in good faith and what is
reasonably believed to be a lawful manner in the Company's best interests. The
foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Memorandum of
Association or the Bye-laws of the Company, as a matter of law, or otherwise, or
any power that the Company may have to indemnify them or hold them harmless.

                                   ARTICLE 18

                                   SUCCESSORS

         The Company shall require any successor (whether direct or indirect, by
purchase, merger, share exchange, reorganization, recapitalization,
amalgamation, consolidation, or otherwise) to all or substantially all of its
business or assets to expressly assume and agree to perform under the Plan in
the same manner and to the same extent that it would be required to perform if
no such succession had taken place. As used in the Plan, the term "Company"
shall mean any successor that expressly assumes and agrees to perform the Plan,
which otherwise becomes bound by all the terms and provisions of the Plan by
operation of law, or any other entity which expressly assumes the obligations
under, and agrees to administer, the Plan, as determined by the Committee in its
sole discretion.

                                   ARTICLE 19

                                  MISCELLANEOUS

         19.1 MERGER AND ASSUMPTION OF AWARDS. As of the Restatement Date, the
Specialty Incentive Plan shall be merged with and into the Plan, and each Award
granted under the Specialty Incentive Plan that is outstanding at such time
shall be assumed by the Plan. Such assumed Awards shall be subject to (a) the
terms and conditions of the existing Award Agreements pursuant to which they
were granted and (b) the terms and conditions applicable to Awards granted under
this Plan. To the

                                       17
<PAGE>

extent that there shall be any conflict between the terms of any such existing
Award Agreement of a Participant and the terms and conditions applicable to
Awards granted under this Plan, the terms of such existing Award Agreement shall
govern to the extent that such terms would be more favorable to such
Participant.

         19.2 LEGAL CONSTRUCTION. Except where otherwise indicated by the
context, any masculine term used herein also shall include the feminine, the
plural shall include the singular, and the singular shall include the plural.
References to sections, rules, or regulations shall be deemed to include
references to any successor sections, rules, or regulations.

         19.3 SEVERABILITY. In the event any provision of the Plan shall be held
illegal or invalid for any reason, the illegality or invalidity shall not affect
the remaining parts of the Plan, and the Plan shall be construed and enforced as
if the illegal or invalid provision had not been included.

         19.4 REQUIREMENTS OF LAW. The granting of Awards and the issuance of
Shares under the Plan shall be subject to, and may be made contingent upon
satisfaction of, all applicable laws, rules, and regulations, and to such
approvals by any governmental agencies or national securities exchanges as may
be required.

         19.5 GOVERNING LAW. To the extent not preempted by federal law, the
Plan, and all agreements hereunder, shall be construed in accordance with and
governed by the laws of the Islands of Bermuda, without reference to principles
of conflict of law.

                                       18

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