Document:

ex10_5.htm

    
      

    

    Exhibit
10.5

     

    
      Intermec,
Inc.

      2008
Long-Term Performance Share Program

      

      Agreement
for the Performance Period

      January 1, [YEAR] through
December 31, [YEAR]

       

       

      This
Performance Share Unit Agreement (the “Agreement”) is made as of
%%OPTION_DATE%-%, between Intermec, Inc., a Delaware corporation (the “Company”) and %%FIRST_NAME%-%
%%MIDDLE_NAME%-% %%LAST_NAME%-% (the “Participant”).

       

      WHEREAS, the Intermec, Inc.
2008 Omnibus Incentive Plan (the “Plan”) was adopted by the
Board of Directors of the Company on March 19, 2008, and was approved by the
stockholders of the Company on May 23, 2008; and

       

      WHEREAS, the Committee has
adopted the 2008 Long-Term Performance Share Program (the “Program”) as a sub-plan of
the Plan and authorized the Award represented by this Agreement;

       

      NOW, THEREFORE, in
consideration of the premises, the mutual covenants hereinafter set forth, and
other good and valuable consideration, the Company and the Participant hereby
agree as follows:

       

      Article
1.  Award

       

      The
Participant is hereby awarded, as a matter of separate inducement and agreement,
and not in lieu of salary or other compensation for services,
%%TOTAL_SHARES_GRANTED,’999,999,999’%-% Performance Share Units (the “Target Award”), on the terms
and conditions hereinafter set forth.  The number of Performance Share
Units (“PSUs”) that the
Participant may earn under this Agreement shall range from 0% to 200% of the
Target Award (the “Awarded
Shares”), as determined by the achievement of the performance measures
set forth in Article 3 of this Agreement.  The Awarded Shares shall be
paid in shares of the common stock, par value $.01 per share, of the Company
(the “Common Stock”) as
set forth in Article 6 of this Agreement.  The Participant shall have
no obligation to pay the Company additional consideration for the Awarded
Shares.

       

      The Plan
and the Program, copies of which have been made available to the Participant,
are incorporated herein by reference and made part of this Agreement as if fully
set forth herein. Capitalized terms used in this Agreement that are not defined
herein shall have the meanings assigned to such terms in the Plan and the
Program. This Agreement is subject to, and the Company and the Participant agree
to be bound by, all of the terms and conditions of the Plan and the Program as
the same exist at the time this Agreement became effective. The Plan and the
Program shall control in the event there is any express conflict between the
terms hereof and the Plan or the Program and with respect to such matters as are
not expressly covered in this Agreement. The Company hereby reserves the right
to alter, amend, modify, restate, suspend or terminate the Plan, the Program and
this Agreement in accordance with Section 12 of the Plan, but no such subsequent
amendment, modification, restatement, or termination of the Plan, the Program or
this Agreement shall adversely affect in any material way the Participant’s
rights under this Agreement without the Participant’s written
consent.  This Agreement shall be subject, without further action by
the Company or the Participant, to such amendment, modification, or
restatement.

      
        
           

        

        
          Page 1 of
7

          
            

          

        

        
           

        

      

      Article
2.  Performance Period

      

      For all
purposes of this Agreement, “Performance Period” means
January 1, [YEAR 1] through December 31, [YEAR 3].

       

      Article
3.  Achievement of Performance Measures

       

      The
number of Awarded Shares to be earned under this Agreement shall be based upon
the achievement of the following Performance Measures set by the Committee: The
weighted percentage of achievement of (a) the average percentage of attainment
of Revenue (calculated as net Revenue as reported under GAAP) (“Revenue”) over the
Performance Period and (b) the average percentage of achievement of Diluted
Earnings Per Share from continuing operations (calculated on a GAAP basis) (“Diluted EPS”) over the
Performance Period. The achievement shall be determined in accordance with the
following schedules, with ultimate payout of Awarded Shares to be weighted 30%
as to the Revenue Performance Measure and 70% as to the Diluted EPS Performance
Measure:

       

      Revenue
(30% Weight)

      

      
        	
                Fiscal

                Year

              	 
      	
                Target

                Revenue
      ($M)

              
	
                [YEAR
      1]

              	 
      	
                $

              
	
                [YEAR
      2]

              	 
      	 
      
	
                [YEAR
      3]

              	 
      	 
      

      

      

      

      
        	
                Performance

                Level

              	 
      	
                3-Year
      Average

                Revenue
      as %

                of
      Target

              	 
      	
                Payout
      as %

                of
      Target

              
	
                Maximum

              	 
      	
                ≥[1__]%

              	 
      	
                200%

              
	 
      	 
      	
                [1__]%

              	 
      	
                180%

              
	 
      	 
      	
                [1__]%

              	 
      	
                160%

              
	 
      	 
      	
                [1__]%

              	 
      	
                140%

              
	 
      	 
      	
                [1__]%

              	 
      	
                120%

              
	
                Target

              	 
      	
                100%

              	 
      	
                100%

              
	 
      	 
      	
                [__]%

              	 
      	
                82%

              
	 
      	 
      	
                [__]%

              	 
      	
                64%

              
	 
      	 
      	
                [__]%

              	 
      	
                46%

              
	 
      	 
      	
                [__]%

              	 
      	
                28%

              
	
                Threshold

              	 
      	
                [__]%

              	 
      	
                10%

              
	 
      	 
      	
                <[__]%

              	 
      	
                0%

              

      

      
        
           

        

        
          Page 2 of
7

          
            

          

        

        
           

        

      

      Diluted
EPS (70% Weight)

      

      
        	
                Fiscal

                Year

              	 
      	
                Target

                Diluted
      EPS

              
	
                [YEAR
      1]

              	 
      	
                $

              
	
                [YEAR
      2]

              	 
      	 
      
	
                [YEAR
      3]

              	 
      	 
      

      

      

      

      
        	
                Performance

                Level

              	 
      	
                3-Year
      Average

                Diluted
      EPS as a %

                of
      Target

              	 
      	
                Payout

                as
      a %

                  of
      Target

              
	
                Maximum

              	 
      	
                [1__]%
      or >

              	 
      	
                200%

              
	 
      	 
      	
                [1__]%

              	 
      	
                180%

              
	 
      	 
      	
                [1__]%

              	 
      	
                160%

              
	 
      	 
      	
                [1__]%

              	 
      	
                140%

              
	 
      	 
      	
                [1__]%

              	 
      	
                120%

              
	
                Target

              	 
      	
                100%

              	 
      	
                100%

              
	 
      	 
      	
                [__]%

              	 
      	
                82%

              
	 
      	 
      	
                [__]%

              	 
      	
                64%

              
	 
      	 
      	
                [__]%

              	 
      	
                46%

              
	 
      	 
      	
                [__]%

              	 
      	
                28%

              
	
                Threshold

              	 
      	
                [__]%

              	 
      	
                10%

              
	 
      	 
      	
                <[__]%

              	 
      	
                0%

              

      

      

      The
number of Awarded Shares earned for achievement above threshold levels but
between the levels shown above will be calculated using
interpolation.

      

      In
evaluating the achievement of each measure as of the end of each fiscal year in
the performance period, the Committee will adjust the calculation of the
Attainment Level to exclude restructuring or reorganization costs (as defined in
accordance with U.S. GAAP) incurred in any fiscal year in the performance
period to the extent that related savings from the program will occur in a
future fiscal year, and will include these costs in the period in which, and to
the extent that, cost savings are anticipated during the performance
period.

      

      Article
4. Termination Provisions

      

      Except as
provided below, a Participant shall be eligible for payment of Awarded Shares,
as determined in Section 3, only if the Participant’s employment with the
Company, a Subsidiary or Affiliate continues through the end of the Performance
Period.

       

      In the
event of a Participant’s Disability or Retirement at age 65 or later during the
Performance Period, a pro rata payment will be made for the number of full
months worked during the Performance Period, based on achievement of the
Performance Measures over the entire Performance Period.  In the case
of death, payment shall be calculated and paid as provided in the
Program.

       

      In the
event of a Change of Control (as defined in the Plan), all outstanding Awards
will automatically vest and be paid out in cash at the Target Award level or the
actual performance level as of the Change of Control, whichever is
higher.  Notwithstanding any provision of this Agreement or the Plan
to the contrary, in the event such Change of Control does not constitute a
"change in control event" within the meaning of Section 409A of the Internal
Revenue Code and the regulations thereunder, the cash payment of Awards
described in the preceding sentence shall be made within 74 days following the
close of the Performance Period.

      
        
           

        

        
          Page 3 of
7

          
            

          

        

        
           

        

      

      Article
5. Rights as a Stockholder

      

      During
the Performance Period, the Participant shall have no rights of a stockholder
with respect to the PSUs or the Awarded Shares.  Notwithstanding the
foregoing, the Participant shall be entitled to receive any dividend equivalents
declared by the Board, as provided in the Program.

       

      Article
6. Form and Timing of Payment

      

      Except as
set forth in Article 4, payment of Awarded Shares shall be made in the form of
shares of Common Stock within seventy-four (74) calendar days following the
close of the Performance Period.

       

      Article
7. Nontransferability

       

      PSUs may
not be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and
distribution.  The Participant’s rights under this Agreement shall be
exercisable during the Participant’s lifetime only by the Participant or the
Participant’s legal representative.

      

      Article
8. Administration

       

      It is
expressly understood that the Committee is authorized to administer, construe,
and make all determinations necessary or appropriate to the administration of
the Plan, the Program and this Agreement, all of which shall be binding upon the
Participant.

       

      Article
9.  Withholding Taxes

       

      No later
than the date as of which an amount first becomes includable in the gross income
of the Participant for federal income tax purposes with respect to any Awarded
Shares, the Participant shall pay to the Company, or make arrangements
satisfactory to the Company regarding the payment of, any federal, state, local,
or foreign taxes of any kind required by law to be withheld by the Company with
respect to such amount. Unless otherwise determined by the Committee,
withholding obligations (up to the minimum statutory amount required to be
withheld by the Company) may be settled with shares of Common Stock, including
the Awarded Shares that give rise to the withholding requirement or shares of
Common Stock already owned by the Participant. The obligations of the Company
under the Plan shall be conditional on such payment or arrangements, and the
Company and its Subsidiaries and its Affiliates shall, to the extent permitted
by law, have the right to deduct any such taxes from any payment otherwise due
to the Participant. Participant, therefore, hereby unconditionally and
irrevocably elects, notwithstanding anything to the contrary in this Article 9
or elsewhere in this Agreement, to satisfy any and all federal, state, local,
and foreign taxes of any kind that may be withheld by the Company in connection
with Participant’s Awarded Shares (the “Withholding Taxes”) by
electing one of the following options; provided that in all cases,
the Company shall have the right to receive not less than the minimum amount of
the Withholding Taxes that the Company is required by law to withhold (the “Mandatory Withholding
Taxes”); and further
provided that an amount equal to the Mandatory Withholding Taxes in
respect of any cash payment to Participant shall be withheld from any such cash
payment:

      
        
           

        

        
          Page 4 of
7

          
            

          

        

        
           

        

      

      OPTION
1:

       

      
        	
                 
      

              	
                 ̈

              	
                Authorizing
      and directing the Company to deduct from the total number of shares of
      Common Stock issued and deliverable to Participant pursuant to this
      Agreement the number of shares having a value equal to the Mandatory
      Withholding Taxes.

              

      

       

      OPTION
2:

       

      
        	
                 
      

              	
                 ̈

              	
                Paying
      to the Company in cash an amount up to the Withholding Taxes but not less
      than the Mandatory Withholding
Taxes.

              

      

       

      OPTION
3:

       

      
        	
                 
      

              	
                 ̈

              	
                Tendering
      to the Company the number of unrestricted shares of Common Stock owned by
      the Participant prior to the date on which Withholding Taxes are due and
      having a value equal to the Mandatory Withholding
  Taxes.

              

      

       

      In the event that none of the payment
options set forth above is specified, the Participant’s election shall be deemed
to be Option 1, and the Company shall proceed accordingly.  The
Company may refuse to deliver the shares of Common Stock if the Participant
fails to comply with his or her obligations in connection with the Withholding
Taxes as described in this Article 9.

       

      Regardless
of any action the Company takes with respect to any or all Withholding Taxes,
the Participant acknowledges that the ultimate liability for all Withholding
Taxes legally due by the Participant is and remains the Participant’s
responsibility and that the Company (i) make no representations or undertakings
regarding the treatment of any Withholding Taxes in connection with any aspects
of the PSUs, including the grant or vesting of the PSUs, the subsequent sale of
shares of Common Stock received upon vesting of the PSUs, if any, and the
receipt of any dividends or dividend equivalents; and (ii) do not commit to
structure the terms of the Award of any aspect of the Award to reduce or
eliminate the Participant’s liability for Withholding Taxes.

      

      Article
10. Miscellaneous

       

      A.           The
Participant understands and acknowledges that the Participant is one of a
limited number of employees of the Company and its Subsidiaries and Affiliates
who have been selected to receive grants of PSUs and that the Participant’s
Award is considered Company confidential information. The Participant hereby
covenants and agrees not to disclose the Award of PSUs pursuant to this
Agreement to any other person except (i) the Participant’s immediate family and
legal or financial advisors who agree to maintain the confidentiality of this
Agreement, (ii) as required in connection with the administration of this
Agreement and the Plan as it relates to this Award or under applicable law, and
(iii) to the extent the terms of this Award have been publicly
disclosed.

      
        
           

        

        
          Page 5 of
7

          
            

          

        

        
           

        

      

      B.           The
grant of PSUs to the Participant in any year shall give the Participant neither
any right to similar grants in future years nor any right to be retained in the
employ of the Company or its Subsidiaries or Affiliates, such employment being
terminable to the same extent as if the Program and this Agreement were not in
effect. The right and power of the Company and its Subsidiaries and Affiliates
to dismiss or discharge the Participant is specifically and unqualifiedly
unimpaired by this Agreement.

       

      C.           Each
notice relating to this Agreement shall be in writing and delivered in person or
by mail to the Company at its office, 6001 36th Avenue West, Everett, WA
98203-1264, to the attention of the Company’s Secretary or at such other address
as the Company may specify in writing to the Participant by a notice delivered
in accordance with this paragraph. All notices to the Participant shall be
delivered to the Participant at the Participant’s address specified below or at
such other address as the Participant may specify in writing to the Secretary of
the Company by a notice delivered in accordance with this
paragraph.

       

      D.           This
Agreement, including the provisions of the Plan and the Program incorporated by
reference herein, comprises the whole Agreement between the parties hereto with
respect to the subject matter hereof, and shall be governed by and construed in
accordance with the laws of the State of Delaware, without reference to
principles of conflicts of law.  This Agreement shall become effective
when it has been executed or accepted electronically by the Company and the
Participant.  For purposes of litigating any dispute that arises
directly or indirectly from the relationship of the parties evidenced by this
grant of the Agreement, the parties hereby submit to and consent to the
exclusive jurisdiction of the State of Washington, U.S.A., and agree that such
litigation shall be conducted only in the courts of Washington, U.S.A., or the
federal courts for the United States for the Western District of Washington, and
no other courts where this grant is made and/or to be performed.

       

      E.        
   This Agreement shall inure to the benefit of and be binding
upon each successor of the Company and, to the extent specifically provided
herein and in the Plan and the Program, shall inure to the benefit of and shall
be binding upon the Participant’s heirs, legal representatives, and
successors.

       

      F.      
     If any provision of this Agreement shall be
invalid or unenforceable, such invalidity or unenforceability shall not affect
the validity and enforceability of the remaining provisions of this
Agreement.

       

      G.           This
Agreement may be executed in separate counterparts, each of which when so
executed and delivered will be an original, but all of which together will
constitute one and the same instrument. In pleading or proving this Agreement,
it will not be necessary to produce or account for more than one such
counterpart.

       

      H.           The
Company may, in its sole discretion, decide to deliver any documents related to
the PSUs granted under, and participation in, the Program or future PSUs that
may be granted under the Program by electronic means or to request the
Participant’s consent to participate in the Program by electronic
means.  The Participant hereby consents to receive such documents by
electronic delivery and, if requested, to agree to participate in the Program
through an on-line or electronic system established and maintained by the
Company or another third party designated by the Company.

      
        
           

        

        
          Page 6 of
7

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, this
Agreement is executed by the Participant and by the Company through its duly
authorized officer as of the day and year first above written.

       

      
        	 
      	
                INTERMEC,
      INC.

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Patrick J. Byrne

              
	 
      	 
      	
                Patrick
      J. Byrne

              
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                PARTICIPANT:

              
	 
      	
                (One
      of the boxes under Article 9 must be checked)

              
	 
      	 
      	 
      
	
                IMPORTANT

              	 
      	 
      
	
                PLEASE
      ACCEPT ELECTRONICALLY OR

              	 
      	 
      
	
                SIGN
      AND RETURN PROMPTLY

              	 
      	 
      
	 
      	 
      
	 
      	
                %%FIRST_NAME%-%

              
	 
      	
                %%MIDDLE_NAME%-%

              
	 
      	
                %%LAST_NAME%-%

              

      

       

       

       Page 7 of 7Unassociated Document

    
      

    

    Exhibit
10.6

     

    
      DIRECTOR
COMPENSATION PROGRAM UNDER THE

      INTERMEC,
INC. 2008 OMNIBUS INCENTIVE PLAN

       

      The
following provisions set forth the terms of the compensation program (the "Program") for nonemployee
directors of Intermec, Inc. (the "Company") under the Intermec,
Inc. 2008 Omnibus Incentive Plan (the "Plan").  The
following terms are intended to supplement, not alter or change, the provisions
of the Plan, and in the event of any inconsistency between the terms contained
herein and in the Plan, the Plan shall govern.  All capitalized terms
that are not defined herein shall be as defined in the Plan.

       

      
        	
                1.

              	
                Eligibility

              

      

       

      Each
director of the Company elected or appointed to the Board who is not otherwise
an officer or employee of the Company or a Related Company (a "Director") shall be eligible
to receive the Awards set forth in the Program.

       

      
        	
                2.

              	
                Option
      Grants

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Timing
      and Number of Shares Subject to Option
Grants

              

      

       

      (i)      
     Annual Option
Grants.  Immediately after the 2008 Annual Meeting of
Stockholders and at each Annual Meeting of Stockholders thereafter, each
Director shall automatically be granted a Nonqualified Stock Option to purchase
shares of Common Stock with a Black-Scholes value of $80,000, with any
fractional share rounded to the nearest whole share (0.5 to be rounded up)
(each, an "Annual Option
Grant").

       

      (ii)           Initial Option
Grants.  Any person who becomes a Director at any time of the
year other than the date of the Annual Meeting of Stockholders shall
automatically be granted a Nonqualified Stock Option to purchase shares of
Common Stock for a pro rata portion of the value of the most recent preceding
Annual Option Grant, based on the time remaining in the one-year period
following the date of the previous Annual Meeting of Stockholders, such grant to
be effective on the date he or she becomes a Director (an "Initial Option
Grant").

       

      (iii)           Makeup
Option Grants.  Immediately after the 2008 Annual Meeting of
Stockholders, each Director shall automatically be granted a Nonqualified Stock
Option to purchase shares of Common Stock for a pro rata portion of the value of
the Annual Option Grant made on the same date, based on the time between January
1, 2008 and the date of the 2008 Annual Meeting of Stockholders (each, a "Makeup Option
Grant").

       

      
        	
                 
      

              	
                (b)

              	
                Exercise Price of
      Options.

              

      

       

      Annual
Option Grants, Initial Option Grants and Makeup Option Grants shall have a per
share exercise price equal to the Fair Market Value of the Common Stock on the
Grant Date of the Option.

       

      
        	
                 
      

              	
                (c)

              	
                Option
      Vesting and Exercisability

              

      

       

      Options
granted at the Annual Meeting of Stockholders shall vest and become exercisable
in four equal installments (subject to adjustment for fractional shares) on the
first business day of each fiscal quarter of the Company, beginning on the Grant
Date.  Options granted on a day other than the date of the Annual
Meeting of Stockholders shall vest and become exercisable in equal installments
(subject to adjustment for fractional shares) on the Grant Date and the first
business day of each fiscal quarter of the Company, if any, that occurs up to,
and including, the first quarter of the year in which the next Annual Meeting of
Stockholders occurs.  Notwithstanding the forgoing, Makeup Option
Grants made pursuant to Section 1(a)(iii) shall vest and become exercisable in
three installments (subject to adjustment for fractional shares) on the first
business day of each fiscal quarter of the Company, beginning on the Grant
Date.  The first installment will be equal to one half of the Makeup
Option Grant; the second and third installments will be equal to one quarter of
the Makeup Option Grant.

      
        
           

        

        
          Page 1 of
4

          
            

          

        

        
           

        

      

      
        	
                 
      

              	
                (d)

              	
                Term
      of Options

              

      

       

      Each
Option shall expire seven years from the Grant Date thereof, but shall be
subject to earlier termination as follows:

       

      (i)      
     In the event that a Director ceases to be a
Director of the Company for any reason other than the death of the Director, the
unvested portion of any Option granted to the Director shall terminate
immediately, and the vested portion of the option may be exercised by the
Director only within three years after the date he or she ceases to be a
Director of the Company or prior to the date on which the Option expires by its
terms, whichever is earlier.

       

      (ii)           In
the event of the death of a Director, the unvested portion of any Option granted
to the Director shall become fully vested and exercisable, and the option may be
exercised only within three years after the date of death of the Director or
prior to the date on which the Option expires by its terms, whichever is
earlier, by the personal representative of the Director's estate, the person(s)
to whom the Director's rights under the option have passed by will or the
applicable laws of descent and distribution, or any beneficiary designated
pursuant to Section 13 of the Plan.

       

      
        	
                 
      

              	
                (e)

              	
                Exercise
      of Options

              

      

       

      Options
shall be exercised by giving the required notice to the Company (or a brokerage
firm designated or approved by the Company), stating the number of shares of
Common Stock with respect to which the Option is being exercised, accompanied by
payment in full for such Common Stock, which payment may be, to the extent
permitted by applicable laws and regulations, in whole or in part, (a) in cash
or check; (b) by having the Company withhold shares of Common Stock that would
otherwise be issued on exercise of the Option that have an aggregate Fair Market
Value equal to the aggregate exercise price of the shares being purchased under
the Option; (d) by tendering (either actually or by attestation) shares of
Common Stock owned by the Director that have an aggregate Fair Market Value
equal to the aggregate exercise price of the shares being purchased under the
Option; (e) if and so long as the Common Stock is registered under the Exchange
Act, by delivery of a properly executed exercise notice, together with
irrevocable instructions to a broker, to promptly deliver to the Company the
amount of proceeds to pay the exercise price, all in accordance with the
regulations of the Federal Reserve Board.

       

      
        	
                3.

              	
                Restricted
      Deferred Stock Unit Grants

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Timing
      and Number of Restricted Deferred Stock
Units

              

      

       

      (i)     
      Annual Restricted Deferred Stock Unit
Grants.  Immediately after the 2008 Annual Meeting of
Stockholders, and at each Annual Meeting of Stockholders thereafter, each
Director shall automatically be granted restricted deferred stock units with a
value of $80,000, based on the Fair Market Value of the Common Stock on the
Grant Date, with any fractional share rounded to the nearest whole share (0.5 to
be rounded up) (each, an "Annual Restricted Deferred Stock Unit
Grant"); provided, that any person who becomes a Director at any time of
the year other than the date of the Annual Meeting of Stockholders shall receive
a pro rata portion of the value of the most recent preceding Annual Restricted
Deferred Stock Unit Grant, based on the time remaining in the one-year period
following the date of the previous Annual Meeting of Stockholders, such grant to
be effective on the date he or she becomes a Director.

      
        
           

        

        
          Page 2 of
4

          
            

          

        

        
           

        

      

      (ii)           Makeup Restricted Deferred Stock Unit
Grant.  Immediately after the 2008 Annual Meeting of
Stockholders, each Director shall automatically receive a pro rata portion of
the value of the Annual Restricted Deferred Stock Unit Grant made on the same
date, based on the time between January 1, 2008 and the date of the 2008 Annual
Meeting of Stockholders.

       

      
        	
                 
      

              	
                (b)

              	
                Mandatory
      Deferrals of Restricted Deferred Stock
Units

              

      

       

      All
restricted deferred stock unit grants that Directors are entitled to receive
under the Program shall automatically be deferred into and shall be subject to
the terms and conditions of the Company's Director Deferred Compensation Plan or
any similar successor plan thereto (the "Deferred Compensation
Plan").

       

      
        	
                 
      

              	
                (c)

              	
                Vesting
      of Restricted Deferred Stock Units

              

      

       

      All
restricted deferred stock unit awards granted under the Program shall be fully
vested as of the date of the next Annual Meeting of Stockholders following the
Grant Date, assuming the Director's continued service on the Board during such
period.  In the event of a Director's termination of service prior to
the vesting of restricted deferred stock units, such units shall automatically
be forfeited to the Company.

       

      
        	
                4.

              	
                Terms
      and Conditions of Payment of Fees

              

      

       

      
        	
                 
      

              	
                (a)

              	
                Retainer
      Fees

              

      

       

      There
shall automatically be granted each year to each Director retainer fees of
$40,000.  In addition, a non-executive Director serving as Chairman of
the Board shall be paid an additional retainer of $150,000 for the twelve month
period ending June 30, 2008 and $120,000 for each twelve month period
thereafter.  This additional retainer payable to the Chairman of the
Board shall automatically be deferred into a stock account under the Deferred
Compensation Plan.  In addition, the Chairs of the Audit and
Compliance Committee, Compensation Committee and Governance and Nominating
Committee shall each be paid an additional annual retainer of $15,000, $10,000
and $10,000, respectively; provided that the Chairman of the Board, when also
acting in the capacity of the Chair of the Governance and Nominating Committee,
shall not receive any additional retainer, but if another director is appointed
to the position of Chair of the Governance and Nominating Committee, he or she
shall receive an additional retainer of $10,000.

       

      
        	
                 
      

              	
                (b)

              	
                Meeting
      Fees

              

      

       

      Each
Director shall automatically receive an attendance fee of $2,000 for each
physical or telephonic meeting of the Board or a committee of the Board that the
Director attended.

       

      
        	
                 
      

              	
                (c)

              	
                Payment
      of Fees

              

      

       

      Except as
otherwise set forth above, all retainer fees and meeting fees shall be paid in
cash quarterly, after the end of the quarter in which
earned.  Notwithstanding the foregoing and except as otherwise set
forth above, Directors may elect to receive any retainer fees and meeting fees
in shares of Common Stock in accordance with Section 4(d) below or may defer
retainer fees and meeting fees into cash or stock accounts under the Deferred
Compensation Plan.

       

      
        	
                 
      

              	
                (d)

              	
                Share
      Election and Issuance of Shares

              

      

       

      (i)       
    Share
Election. A
Director may make a share election ("Share Election") to receive in
the form of Common Stock all of his or her retainer fees or meeting fees earned
in each calendar year that are otherwise payable in cash.  The shares
of Common Stock (and cash in lieu of fractional shares) issuable pursuant to a
Share Election shall be issued quarterly in accordance with Section
4(d)(ii).  The Share Election must be in writing and delivered to the
Secretary of the Company on or prior to December 31 of the calendar year
preceding the calendar year in which the applicable retainer fees or meeting
fees are to be earned; provided, however, that any Director who commences
service on the Board on or subsequent to January 1 of a calendar year may make a
Share Election during the 30-day period immediately following the commencement
of his or her directorship.  A Share Election, once made, shall be
irrevocable for the calendar year with respect to which it is made and shall
remain in effect for future calendar years, unless revoked in writing or
modified by a subsequent Share Election with respect to future calendar
years.  Such subsequent Share Election must be made on or prior to
December 31 of the calendar year preceding the calendar year in which such
revocation shall take effect and in accordance with the provisions
hereof.

      
        
           

        

        
          Page 3 of
4

          
            

          

        

        
           

        

      

      (ii)           Issuance of
Shares.  Shares of Common Stock issuable to a Director pursuant
to this Section 4 shall be issued to such Director on the first business day
following the end of each calendar quarter.  The total number of
shares of Common Stock to be issued shall be determined by dividing (x) the
dollar amount of the Director's retainer fees and meeting fees for the preceding
calendar quarter to which a Share Election applies by (y) the Fair Market Value
of the Common Stock on the date such retainer fees or meeting fees would
otherwise have been paid in cash.  In no event shall the Company be
required to issue fractional shares.  In the event that a fractional
share of Common Stock would otherwise be required to be issued, an amount in
lieu thereof shall be paid in cash based on the Fair Market Value of such
fractional share on the last business day of the preceding calendar
quarter.

       

      
        	
                5.

              	
                Change
      of Control

              

      

       

      Upon a
Change of Control, (a) all Options outstanding as of the date of such Change of
Control, and which are not then exercisable and vested, shall immediately become
fully exercisable and vested; (b) the restrictions applicable to any restricted
deferred stock unit grants shall lapse, and such restricted deferred stock unit
grants shall become free of all restrictions and become fully vested and
transferable; and (c) fees earned in respect of the calendar quarter in which
the Change of Control occurs shall be paid in cash as soon as
practicable.

       

      
        	
                6.

              	
                Amendment

              

      

       

      The Board
may amend the provisions contained herein in such respects as it deems
advisable.  Any such amendment shall not, without the consent of the
Director, impair or diminish any rights of a Director or any rights of the
Company under an Award.

       

      Provisions
of the Plan (including any amendments) not discussed above, to the extent
applicable to Directors, shall continue to govern the terms and conditions of
Awards granted to Directors.

       

       

       Page 4 of 4

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