Document:

ex1028.htm

    

      Exhibit
10.28

      Director
Compensation

      

      RESOLUTION OF
THE

      BOARD OF DIRECTORS
OF

      PG&E
CORPORATION

      

      February 20,
2008

      

      WHEREAS, the Board of Directors has
previously approved a compensation program for the non-employee directors of
this corporation; and

      

      WHEREAS, the Board of Directors desires
to clarify and restate the application of the compensation program for
non-employee directors, in light of (1) the division of the PG&E Corporation
Nominating, Compensation, and Governance Committee into two separate committees
– a Compensation Committee and a Nominating and Governance Committee – effective
January 1, 2008, and (2) changes to the process by which the Board of Directors
selects its lead director, effective January 1, 2008;

      

      NOW, THEREFORE, BE IT RESOLVED that,
effective as of January 1, 2007, directors who are not employees of this
corporation or Pacific Gas and Electric Company (“non-employee directors”) shall
be paid a retainer of $12,500 per calendar quarter, which shall be in addition
to fees paid for attendance at Board and Board committee meetings;
and

      

      BE IT FURTHER RESOLVED that, effective
as of January 1, 2007, the non-employee director who serves as lead director
shall be paid an additional retainer of $12,500 per calendar quarter;
and

      

      BE IT FURTHER RESOLVED that, effective
as of January 1, 2008, the non-employee director who is duly appointed to chair
the Audit Committee of this Board shall be paid an additional retainer of
$12,500 per calendar quarter, and the non-employee directors who are duly
appointed to chair the other permanent committees of this Board shall be paid an
additional retainer of $1,875 per calendar quarter; provided, however, that a
non-employee director duly appointed to chair a permanent committee of this
Board shall not be paid an

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      additional
retainer for any calendar quarter during which such director also serves as lead
director; and

      

      BE IT FURTHER RESOLVED that, effective
as of January 1, 2007, non-employee directors shall be paid a fee of $1,750 for
each meeting of the Board and for each meeting of a Board committee attended;
provided, however, that non-employee directors who are members of the Audit
Committee shall be paid a fee of $2,750 for each meeting of the Audit Committee
attended; and

      

      BE IT FURTHER RESOLVED that any
non-employee director may participate in a Directors’ Voluntary Stock Purchase
Program by instructing the Corporate Secretary to withhold an amount equal to
but not less than 20 percent of his or her meeting fees and/or quarterly
retainers for the purpose of acquiring shares of this corporation’s common stock
on behalf of said director, provided that once a non-employee director has so
instructed the Corporate Secretary, said director may not modify or discontinue
such instruction for at least 12 calendar months; and

      

      BE IT FURTHER RESOLVED that
non-employee directors shall be eligible to participate in the PG&E
Corporation 2006 Long-Term Incentive Plan under the terms and conditions of that
Plan, as adopted by this Board of Directors and as may be amended from time to
time; and

      

      BE IT FURTHER RESOLVED that members of
this Board shall be reimbursed for reasonable expenses incurred in attending
Board or committee meetings; and

      

      BE IT FURTHER RESOLVED that, effective
as of January 1, 2008, the resolution on this subject adopted by the Board of
Directors on December 20, 2006 is hereby superseded.

      
        
           

        

        
          2ex1029.htm

    Exhibit
10.29

    Director
Compensation

    

    RESOLUTION OF
THE

    BOARD OF DIRECTORS
OF

    PACIFIC GAS AND ELECTRIC
COMPANY

    

    February 20,
2008

    

    WHEREAS, the Board of Directors has
previously approved a compensation program for the non-employee directors of
this company; and

    

    WHEREAS, the Board of Directors desires
to clarify and restate the application of the compensation program for
non-employee directors, in order to conform it to the program for non-employee
directors of PG&E Corporation;

    

    NOW, THEREFORE, BE IT RESOLVED that,
effective as of January 1, 2007, directors who are not employees of this company
or PG&E Corporation (“non-employee directors”) shall be paid a retainer of
$12,500 per calendar quarter which shall be in addition to any fees paid for
attendance at Board and Board committee meetings; provided, however, that a
non-employee director shall not be paid a retainer by this company for any
calendar quarter during which such director also serves as a director or
advisory director of PG&E Corporation; and

    

    BE IT FURTHER RESOLVED that, effective
as of January 1, 2007, the non-employee director who serves as lead director
shall be paid an additional retainer of $12,500 per calendar quarter; provided,
however, that a non-employee director who serves as lead director shall not be
paid an additional retainer by this company for any calendar quarter during
which such director also serves as lead director of the PG&E Corporation
Board of Directors; and

    

    BE IT FURTHER RESOLVED that, effective
as of January 1, 2007, the non-employee director who is duly appointed to chair
the Audit Committee of this Board shall be paid an additional retainer of
$12,500 per calendar quarter, and the non-employee directors who are duly
appointed to chair the other permanent committees of this Board shall be paid an
additional retainer of $1,875 per calendar quarter; provided, however, that
(1) a non-employee director duly appointed to chair a permanent committee
of this Board shall not be paid an additional retainer by this company for any
calendar quarter during which such director also serves as chair of the
corresponding committee of the PG&E Corporation Board of Directors, and
(2) a non-employee

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     director
duly appointed to chair a permanent committee of this Board shall not be paid an
additional retainer for any calendar quarter during which such director also
serves as lead director; and

    

    BE IT FURTHER RESOLVED that, effective
as of January 1, 2007, non-employee directors attending any meeting of the Board
not held concurrently or sequentially with a meeting of the Board of Directors
of PG&E Corporation, or any meeting of a Board committee not held
concurrently or sequentially with a meeting of the corresponding committee of
the PG&E Corporation Board, shall be paid a fee of $1,750 for each such
meeting attended; provided, however, that non-employee directors attending any
meeting of the Audit Committee of this Board which is not held concurrently or
sequentially with a meeting of the Audit Committee of the PG&E Corporation
Board, shall be paid a fee of $2,750 for each such meeting attended;
and

    

    BE IT FURTHER RESOLVED that any
non-employee director may participate in a Directors’ Voluntary Stock Purchase
Program by instructing the Corporate Secretary to withhold an amount equal to
but not less than 20 percent of his or her meeting fees and/or quarterly
retainers for the purpose of acquiring shares of PG&E Corporation common
stock on behalf of said director, provided that once a non-employee director has
so instructed the Corporate Secretary, said director may not modify or
discontinue such instruction for at least 12 calendar months; and

    

    BE IT FURTHER RESOLVED that members of
this Board shall be reimbursed for reasonable expenses incurred in attending
Board or committee meetings; and

    

    BE IT FURTHER RESOLVED that, effective
as of January 1, 2008, the resolution on this subject adopted by the Board of
Directors on December 20, 2006 is hereby superseded.

    

    
      
        
           

        

         

      

      
        2ex1030.htm

    Exhibit
10.30

       

       

       

       

       

      PG&E
Corporation

       

      2006
Long-Term Incentive Plan

       

       

       

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

      PG&E
Corporation

      2006
Long-Term Incentive Plan

      (As
adopted effective January 1, 2006, and

      as
amended on February 15, 2006, December 20, 2006, and October 17,
2007)

      

      1. Establishment, Purpose and
Term of Plan.

       

      1.1 Establishment.  The
PG&E Corporation 2006 Long-Term Incentive Plan (the “Plan”) is hereby established
effective as of January 1, 2006 (the “Effective
Date”), provided
it has been approved by the shareholders of the Company.

       

      1.2 Purpose.  The
purpose of the Plan is to advance the interests of the Participating Company
Group and its shareholders by providing an incentive to attract and retain the
best qualified personnel to perform services for the Participating Company
Group, by motivating such persons to contribute to the growth and profitability
of the Participating Company Group, by aligning their interests with interests
of the Company’s shareholders, and by rewarding such persons for their services
by tying a significant portion of their total compensation package to the
success of the Company.  The Plan seeks to achieve this purpose by
providing for Awards in the form of Options, Stock Appreciation Rights,
Restricted Stock Awards, Performance Shares, Performance Units, Restricted Stock
Units, Deferred Compensation Awards and other Stock-Based Awards as described
below.

       

      1.3 Term of Plan.  The
Plan shall continue in effect until the earlier of its termination by the Board
or the date on which all of the shares of Stock available for issuance under the
Plan have been issued and all restrictions on such shares under the terms of the
Plan and the agreements evidencing Awards granted under the Plan have
lapsed.  However, all Awards shall be granted, if at all, within ten
(10) years from the Effective Date.  Moreover, Incentive Stock Options
shall not be granted later than ten (10) years from the date of shareholder
approval of the Plan.

       

      2. Definitions and
Construction.

       

      2.1 Definitions.    Whenever
used herein, the following terms shall have their respective meanings set forth
below:

       

      (a) “Affiliate” means (i) an entity,
other than a Parent Corporation, that directly, or indirectly through one or
more intermediary entities, controls the Company or (ii) an entity, other
than a Subsidiary Corporation, that is controlled by the Company directly, or
indirectly through one or more intermediary entities.    For
this purpose, the term “control” (including the term “controlled by”) means the
possession, direct or indirect, of the power to direct or cause the direction of
the management and policies of the relevant entity, whether through the
ownership of voting securities, by contract or otherwise; or shall have such
other meaning assigned such term for the purposes of registration on
Form S-8 under the Securities Act.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      (b) “Award” means any Option, SAR,
Restricted Stock Award, Performance Share, Performance Unit, Restricted Stock
Unit or Deferred Compensation Award or other Stock-Based Award granted under the
Plan.

       

      (c) “Award
Agreement” means
a written agreement between the Company and a Participant setting forth the
terms, conditions and restrictions of the Award granted to the
Participant.

       

      (d) “Board” means the Board of
Directors of the Company.

       

      (e) “Change in
Control” means,
unless otherwise defined by the Participant’s Award Agreement or contract of
employment or service, the occurrence of any of the
following:

       

      (i) any
“person” (as such term is used in Sections 13(d) and 14(d) of the Exchange
Act, but excluding any benefit plan for Employees or any trustee, agent or other
fiduciary for any such plan acting in such person’s capacity as such fiduciary),
directly or indirectly, becomes the “beneficial owner” (as defined in
Rule 13d-3 promulgated under the Exchange Act), of stock of the Company
representing twenty percent (20%) or more of the combined voting power of the
Company’s then outstanding voting stock; or

       

      (ii) during
any two consecutive years, individuals who at the beginning of such period
constitute the Board cease for    any reason to constitute
at least a majority of the Board, unless the election, or the nomination for
election by the shareholders of the Company, of each new Director was approved
by a vote of at least two-thirds (2/3) of the Directors then still in office who
were Directors at the beginning of the period; or

       

      (iii) the
consummation of any consolidation or merger of the Company other than a merger
or consolidation which would result in the voting stock of the Company
outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into voting stock of the surviving
entity or any parent of such surviving entity) at least seventy percent (70%) of
the Combined Voting Power of the Company, such surviving entity or the parent of
such surviving entity outstanding immediately after the merger or consolidation;
or

       

      (iv) the
approval of the Shareholders of the Company of any (1) sale, lease, exchange or
other transfer (in one or a series of related transactions) of all or
substantially all of the assets of the Company, or (2) any plan or proposal for
the liquidation or dissolution of the Company.

       

      For
purposes of paragraph (iii), the term “Combined Voting
Power” shall mean the combined voting power of the Company’s or other
relevant entity’s then outstanding voting stock.

       

      (f) “Code” means the Internal Revenue
Code of 1986, as amended, and any applicable regulations promulgated
thereunder.

       

      (g) “Committee” means the Nominating,
Compensation, and Governance Committee or other committee of the Board duly
appointed to administer the Plan and having

       

      
        
          
              

          

           

        

        
          2

          
            

          

        

        
           

        

      

      such
powers as shall be specified by the Board.    If no
committee of the Board has been appointed to administer the Plan, the Board
shall exercise all of the powers of the Committee granted herein, and, in any
event, the Board may in its discretion exercise any or all of such
powers.

       

      (h) “Company” means PG&E Corporation,
a California corporation, or any successor corporation
thereto.

       

      (i) “Consultant” means a person engaged to
provide consulting or advisory services (other than as an Employee or a member
of the Board) to a Participating Company, provided that the identity of such
person, the nature of such services or the entity to which such services are
provided would not preclude the Company from offering or selling securities to
such person pursuant to the Plan in reliance on registration on a Form S-8
Registration Statement under the Securities Act.

       

      (j) “Deferred
Compensation Award” means an award of Stock
Units granted to a Participant pursuant to Section 12 of the
Plan.

       

      (k) “Director” means a member of the
Board.

       

      (l) “Disability” means the permanent and
total disability of the Participant, within the meaning of Section 22(e)(3)
of the Code.

       

      (m) “Dividend
Equivalent”
means a credit, made at the discretion of the Committee or as otherwise provided
by the Plan, to the account of a Participant in an amount equal to the cash
dividends paid on one share of Stock for each share of Stock represented by an
Award held by such Participant.

       

      (n) “Employee” means any person treated as
an employee (including an Officer or a member of the Board who is also treated
as an employee) in the records of a Participating Company and, with respect to
any Incentive Stock Option granted to such person, who is an employee for
purposes of Section 422 of the Code; provided, however, that neither
service as a member of the Board nor payment of a director’s fee shall be
sufficient to constitute employment for purposes of the Plan.  The
Company shall determine in good faith and in the exercise of its discretion
whether an individual has become or has ceased to be an Employee and the
effective date of such individual’s employment or termination of employment, as
the case may be.  For purposes of an individual’s rights, if any,
under the Plan as of the time of the Company’s determination, all such
determinations by the Company shall be final, binding and conclusive,
notwithstanding that the Company or any court of law or governmental agency
subsequently makes a contrary determination.

       

      (o) “Exchange
Act” means the
Securities Exchange Act of 1934, as amended.

       

      (p) “Fair Market
Value” means, as
of any date, the value of a share of Stock or other property as determined by
the Committee, in its discretion, or by the Company, in its discretion, if such
determination is expressly allocated to the Company herein, subject to the
following:

       

      
        
          
              

          

           

        

        
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      (i) Except as
otherwise determined by the Committee, if, on such date, the Stock is listed on
a national or regional securities exchange or market system, the Fair Market
Value of a share of Stock shall be the closing price of a share of Stock as
quoted on the New York Stock Exchange or such other national or regional
securities exchange or market system constituting the primary market for the
Stock, as reported in The Wall
Street Journal or such other source as the Company deems
reliable.  If the relevant date does not fall on a day on which the
Stock has traded on such securities exchange or market system, the date on which
the Fair Market Value shall be established shall be the last day on which the
Stock was so traded prior to the relevant date, or such other appropriate day as
shall be determined by the Committee, in its discretion.

       

      (ii) Notwithstanding
the foregoing, the Committee may, in its discretion, determine the Fair Market
Value on the basis of the opening, closing, high, low or average sale price of a
share of Stock or the actual sale price of a share of Stock received by a
Participant, on such date, the preceding trading day, the next succeeding
trading day or an average determined over a period of trading
days.  The Committee may vary its method of determination of the Fair
Market Value as provided in this Section for different purposes under the
Plan.

       

      (iii) If, on
such date, the Stock is not listed on a national or regional securities exchange
or market system, the Fair Market Value of a share of Stock shall be as
determined by the Committee in good faith without regard to any restriction
other than a restriction which, by its terms, will never
lapse.

       

      (q) “Incentive Stock
Option” means an
Option intended to be (as set forth in the Award Agreement) and which qualifies
as an incentive stock option within the meaning of Section 422(b) of the
Code.

       

      (r) “Insider” means an Officer, a
Director or any other person whose transactions in Stock are subject to
Section 16 of the Exchange Act.

       

      (s) “Mandatory
Retirement” means retirement as a Director at age 70 or at such other age
as may be specified in the retirement policy for the Board in effect at the time
of a Nonemployee Director’s termination of Service as a
Director.

       

      (t) “Net-Exercise”
means a procedure by which the Participant will be issued a number of shares of
Stock determined in accordance with the following formula:

       

      X =
Y(A-B)/A, where

      X =
the number of shares of Stock to be issued to the Participant upon exercise of
the Option;

      Y =
the total number of shares with respect to which the Participant has elected to
exercise the Option;

      A =
the Fair Market Value of one (1) share of Stock;

      B =
the exercise price per share (as defined in the Participant’s Award
Agreement).

      
        
          
              

          

           

        

        
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      (u) “Nonemployee
Director” means
a Director who is not an Employee.

       

      (v) “Nonemployee
Director Award”
means an Award granted to a Nonemployee Director pursuant to Section 7
of the Plan.

       

      (w) “Nonstatutory
Stock Option”
means an Option not intended to be (as set forth in the Award Agreement) an
incentive stock option within the meaning of Section 422(b) of the
Code.

       

      (x) “Officer” means any person designated
by the Board as an officer of the Company.

       

      (y) “Option” means the right to purchase
Stock at a stated price for a specified period of time granted to a Participant
pursuant to Section 6 or Section 7
of the Plan.  An Option may be either an Incentive Stock Option or a
Nonstatutory Stock Option.

       

      (z) “Option
Expiration Date” means the date of expiration of the Option’s term as set
forth in the Award Agreement.

       

      (aa) “Parent
Corporation”
means any present or future “parent corporation” of the Company, as defined in
Section 424(e) of the Code.

       

      (bb) “Participant” means any eligible person
who has been granted one or more Awards.

       

      (cc) “Participating
Company” means
the Company or any Parent Corporation, Subsidiary Corporation or
Affiliate.

       

      (dd) “Participating
Company Group”
means, at any point in time, all entities collectively which are then
Participating Companies.

       

      (ee) “Performance
Award” means an
Award of Performance Shares or Performance Units.

       

      (ff) “Performance Award
Formula” means,
for any Performance Award, a formula or table established by the Committee
pursuant to Section 10.3
of the Plan which provides the basis for computing the value of a Performance
Award at one or more threshold levels of attainment of the applicable
Performance Goal(s) measured as of the end of the applicable Performance
Period.

       

      (gg) “Performance
Goal” means a
performance goal established by the Committee pursuant to Section 10.3
of the Plan.

       

      (hh) “Performance
Period” means a
period established by the Committee pursuant to Section 10.3
of the Plan at the end of which one or more Performance Goals are to be
measured.

       

      
        
          
              

          

           

        

        
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      (ii) “Performance
Share” means a
bookkeeping entry representing a right granted to a Participant pursuant to
Section 10
of the Plan to receive a payment equal to the value of a Performance Share, as
determined by the Committee, based on performance.

       

      (jj) “Performance
Unit” means a
bookkeeping entry representing a right granted to a Participant pursuant to
Section 10 of the Plan to receive a payment equal to the
value of a Performance Unit, as determined by the Committee, based upon
performance.

       

      (kk) “Restricted Stock
Award” means an
Award of Restricted Stock.

       

      (ll) “Restricted Stock
Unit” or “Stock
Unit” means a
bookkeeping entry representing a right granted to a Participant pursuant to
Section 11
or Section 12
of the Plan, respectively, to receive a share of Stock on a date determined in
accordance with the provisions of Section 11 or Section 12,
as applicable, and the Participant’s Award Agreement.

       

      (mm) “Restriction
Period” means
the period established in accordance with Section 9.4
of the Plan during which shares subject to a Restricted Stock Award are subject
to Vesting Conditions.

       

      (nn) “Retirement”
means termination as an Employee of a Participating Company at age 55 or older,
provided that the Participant was an Employee for at least five consecutive
years prior to the date of such termination.

       

      (oo) “Rule
16b-3” means
Rule 16b-3 under the Exchange Act, as amended from time to time, or any
successor rule or regulation.

       

      (pp) “SAR” or “Stock
Appreciation Right” means a bookkeeping entry
representing, for each share of Stock subject to such SAR, a right granted to a
Participant pursuant to Section 8
of the Plan to receive payment in any combination of shares of Stock or cash of
an amount equal to the excess, if any, of the Fair Market Value of a share of
Stock on the date of exercise of the SAR over the exercise
price.

       

      (qq) “Section 162(m)” means Section 162(m)
of the Code.

       

      (rr) “Securities
Act” means the
Securities Act of 1933, as amended.

       

      (ss) “Service” means a Participant’s
employment or service with the Participating Company Group, whether in the
capacity of an Employee, a Director or a Consultant.  A Participant’s
Service shall not be deemed to have terminated merely because of a change in the
capacity in which the Participant renders such Service or a change in the
Participating Company for which the Participant renders such Service, provided
that there is no interruption or termination of the Participant’s
Service.  Furthermore, a Participant’s Service shall not be deemed to
have terminated if the Participant takes any military leave, sick leave, or
other bona fide leave of absence approved by the Company.  However, if
any such leave taken by a Participant exceeds ninety (90) days, then on the one
hundred eighty-first (181st) day following the commencement of such leave any
Incentive Stock Option held by the Participant shall cease to be treated as an
Incentive Stock Option and instead shall be treated thereafter as a Nonstatutory
Stock Option, unless the Participant’s right to return to Service with
the

       

      
        
          
              

          

           

        

        
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      Participating
Company Group is guaranteed by statute or contract.  Notwithstanding
the foregoing, unless otherwise designated by the Company or required by law, a
leave of absence shall not be treated as Service for purposes of determining
vesting under the Participant’s Award Agreement.  A Participant’s
Service shall be deemed to have terminated either upon an actual termination of
Service or upon the entity for which the Participant performs Service ceasing to
be a Participating Company.  Subject to the foregoing, the Company, in
its discretion, shall determine whether the Participant’s Service has terminated
and the effective date of such termination.

       

      (tt) “Stock” means the common stock of
the Company, as adjusted from time to time in accordance with Section 4.2 of the
Plan.

       

      (uu) “Stock-Based
Awards” means
any award that is valued in whole or in part by reference to, or is otherwise
based on, the Stock, including dividends on the Stock, but not limited to those
Awards described in Sections 6 through 12 of the Plan.

       

      (vv) “Subsidiary
Corporation”
means any present or future “subsidiary corporation” of the Company, as defined
in Section 424(f) of the Code.

       

      (ww) “Ten Percent
Owner” means a
Participant who, at the time an Option is granted to the Participant, owns stock
possessing more than ten percent (10%) of the total combined voting power of all
classes of stock of a Participating Company (other than an Affiliate) within the
meaning of Section 422(b)(6) of the Code.

       

      (xx) “Vesting
Conditions” mean
those conditions established in accordance with Section 9.4 or Section 11.2 of the Plan prior to
the satisfaction of which shares subject to a Restricted Stock Award or
Restricted Stock Unit Award, respectively, remain subject to forfeiture or a
repurchase option in favor of the Company upon the Participant’s termination of
Service.

       

      2.2 Construction.  Captions
and titles contained herein are for convenience only and shall not affect the
meaning or interpretation of any provision of the Plan.  Except when
otherwise indicated by the context, the singular shall include the plural and
the plural shall include the singular.  Use of the term “or” is not
intended to be exclusive, unless the context clearly requires
otherwise.

       

      3. Administration.

       

      3.1 Administration by the
Committee.  The Plan shall be administered by the
Committee.  All questions of interpretation of the Plan or of any
Award shall be determined by the Committee, and such determinations shall be
final and binding upon all persons having an interest in the Plan or such
Award.

       

      3.2 Authority of
Officers.  Any Officer shall have the authority to act on
behalf of the Company with respect to any matter, right, obligation,
determination or election which is the responsibility of or which is allocated
to the Company herein, provided the Officer has apparent authority with respect
to such matter, right, obligation, determination or election.  In
addition, to the extent specified in a resolution adopted by the Board, the
Chief Executive Officer of the

       

      
        
          
              

          

           

        

        
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      Company
shall have the authority to grant Awards to an Employee who is not an Insider
and who is receiving a salary below the level which requires approval by the
Committee; provided that the terms of such Awards conform to guidelines
established by the Committee and provided further that at the time of making
such Awards the Chief Executive Officer also is a Director.

       

      3.3 Administration with Respect to
Insiders.  With respect to participation by Insiders in the
Plan, at any time that any class of equity security of the Company is registered
pursuant to Section 12 of the Exchange Act, the Plan shall be administered
in compliance with the requirements, if any, of
Rule 16b-3.

       

      3.4 Committee Complying with
Section 162(m).  While the Company is a “publicly held
corporation” within the meaning of Section 162(m), the Board may establish
a Committee of “outside directors” within the meaning of Section 162(m) to
approve the grant of any Award which might reasonably be anticipated to result
in the payment of employee remuneration that would otherwise exceed the limit on
employee remuneration deductible for income tax purposes pursuant to
Section 162(m).

       

      3.5 Powers of the Committee.  In
addition to any other powers set forth in the Plan and subject to the provisions
of the Plan, the Committee shall have the full and final power and authority, in
its discretion:

       

      (a) to
determine the persons to whom, and the time or times at which, Awards shall be
granted and the number of shares of Stock or units to be subject to each Award
based on the recommendation of the Chief Executive Officer of the Company
(except that Awards to the Chief Executive Officer shall be based on the
recommendation of the independent members of the Board in compliance with
applicable stock exchange rules and Awards to Nonemployee Directors shall be
granted automatically pursuant to Section 7 of the
Plan);

       

      (b) to
determine the type of Award granted and to designate Options as Incentive Stock
Options or Nonstatutory Stock Options;

       

      (c) to
determine the Fair Market Value of shares of Stock or other
property;

       

      (d) to
determine the terms, conditions and restrictions applicable to each Award (which
need not be identical) and any shares acquired pursuant thereto, including,
without limitation, (i) the exercise or purchase price of shares purchased
pursuant to any Award, (ii) the method of payment for shares purchased
pursuant to any Award, (iii) the method for satisfaction of any tax
withholding obligation arising in connection with Award, including by the
withholding or delivery of shares of Stock, (iv) the timing, terms and
conditions of the exercisability or vesting of any Award or any shares acquired
pursuant thereto, (v) the Performance Award Formula and Performance Goals
applicable to any Award and the extent to which such Performance Goals have been
attained, (vi) the time of the expiration of any Award, (vii) the
effect of the Participant’s termination of Service on any of the foregoing, and
(viii) all other terms, conditions and restrictions applicable to any Award
or shares acquired pursuant thereto not inconsistent with the terms of the
Plan;

       

      (e) to
determine whether an Award will be settled in shares of Stock, cash, or in any
combination thereof;

       

      
        
          
              

          

           

        

        
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      (f) to
approve one or more forms of Award Agreement;

       

      (g) to amend,
modify, extend, cancel or renew any Award or to waive any restrictions or
conditions applicable to any Award or any shares acquired pursuant
thereto;

       

      (h) to
accelerate, continue, extend or defer the exercisability or vesting of any Award
or any shares acquired pursuant thereto, including with respect to the period
following a Participant’s termination of Service;

       

      (i) without
the consent of the affected Participant and notwithstanding the provisions of
any Award Agreement to the contrary, to unilaterally substitute at any time a
Stock Appreciation Right providing for settlement solely in shares of Stock in
place of any outstanding Option, provided that such Stock Appreciation Right
covers the same number of shares of Stock and provides for the same exercise
price (subject in each case to adjustment in accordance with Section 4.2) as the replaced
Option and otherwise provides substantially equivalent terms and conditions as
the replaced Option, as determined by the Committee;

       

      (j) to
prescribe, amend or rescind rules, guidelines and policies relating to the Plan,
or to adopt sub-plans or supplements to, or alternative versions of, the Plan,
including, without limitation, as the Committee deems necessary or desirable to
comply with the laws or regulations of or to accommodate the tax policy,
accounting principles or custom of, foreign jurisdictions whose citizens may be
granted Awards;

       

      (k) to
correct any defect, supply any omission or reconcile any inconsistency in the
Plan or any Award Agreement and to make all other determinations and take such
other actions with respect to the Plan or any Award as the Committee may deem
advisable to the extent not inconsistent with the provisions of the Plan or
applicable law; and

       

      (l) to
delegate to the Chief Executive Officer or the Senior Vice President of Human
Resources the authority with respect to ministerial matters regarding the Plan
and Awards made under the Plan.

       

      3.6 Option or SAR
Repricing.  Without the affirmative vote of holders of a
majority of the shares of Stock cast in person or by proxy at a meeting of the
shareholders of the Company at which a quorum representing a majority of all
outstanding shares of Stock is present or represented by proxy, the Board shall
not approve a program providing for either (a) the cancellation of
outstanding Options or SARs and the grant in substitution therefore of new
Options or SARs having a lower exercise price or (b) the amendment of
outstanding Options or SARs to reduce the exercise price
thereof.  This paragraph shall not be construed to apply to “issuing
or assuming a stock option in a transaction to which section 424(a) applies,”
within the meaning of Section 424 of the Code.

       

      3.7 Indemnification.  In
addition to such other rights of indemnification as they may have as members of
the Board or the Committee or as officers or employees of the Participating
Company Group, members of the Board or the Committee and any officers or
employees of the Participating Company Group to whom authority to act for the
Board, the Committee or the Company is delegated shall be indemnified by the
Company against all reasonable expenses, including attorneys’ fees, actually and
necessarily incurred in connection with the defense of any

       

      
        
          
          

        

        
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        action,
suit or proceeding, or in connection with any appeal therein, to which they or
any of them may be a party by reason of any action taken or failure to act under
or in connection with the Plan, or any right granted hereunder, and against all
amounts paid by them in settlement thereof (provided such settlement is approved
by independent legal counsel selected by the Company) or paid by them in
satisfaction of a judgment in any such action, suit or proceeding, except in
relation to matters as to which it shall be adjudged in such action, suit or
proceeding that such person is liable for gross negligence, bad faith or
intentional misconduct in duties; provided, however, that within sixty (60) days
after the institution of such action, suit or proceeding, such person shall
offer to the Company, in writing, the opportunity at its own expense to handle
and defend the same.

      

       

      4. Shares Subject to
Plan.

       

      4.1 Maximum Number of Shares
Issuable.  Subject to adjustment as provided in
Section 4.2, the maximum aggregate number of shares of Stock that may be
issued under the Plan shall be twelve million (12,000,000) and shall consist of
authorized but unissued or reacquired shares of Stock or any combination
thereof.  If an outstanding Award for any reason expires or is
terminated or canceled without having been exercised or settled in full, or if
shares of Stock acquired pursuant to an Award subject to forfeiture or
repurchase are forfeited or repurchased by the Company, the shares of Stock
allocable to the terminated portion of such Award or such forfeited or
repurchased shares of Stock shall again be available for issuance under the
Plan.  Shares of Stock shall not be deemed to have been issued
pursuant to the Plan (a) with respect to any portion of an Award that is
settled in cash or (b) to the extent such shares are withheld or reacquired
by the Company in satisfaction of tax withholding obligations pursuant to
Section 16.2.  Upon payment in shares of Stock
pursuant to the exercise of an SAR, the number of shares available for issuance
under the Plan shall be reduced only by the number of shares actually issued in
such payment.  If the exercise price of an Option is paid by tender to
the Company, or attestation to the ownership, of shares of Stock owned by the
Participant, or by means of a Net-Exercise, the number of shares available for
issuance under the Plan shall be reduced only by the net number of shares for
which the Option is exercised.

       

      4.2 Adjustments for Changes in Capital
Structure.  Subject to any required
action by the shareholders of the Company, in the event of any change in the
Stock effected without receipt of consideration by the Company, whether through
merger, consolidation, reorganization, reincorporation, recapitalization,
reclassification, stock dividend, stock split, reverse stock split, split-up,
split-off, spin-off, combination of shares, exchange of shares, or similar
change in the capital structure of the Company, or in the event of payment of a
dividend or distribution to the shareholders of the Company in a form other than
Stock (excepting normal cash dividends) that has a material effect on the Fair
Market Value of shares of Stock, appropriate adjustments shall be made in the
number and kind of shares subject to the Plan and to any outstanding Awards, in
the Award limits set forth in Section 5.4, in
the Nonemployee Director Awards to be granted automatically pursuant to Section
7, and in the exercise or purchase price per share under any outstanding
Award in order to prevent dilution or enlargement of Participants’ rights under
the Plan.  For purposes of the foregoing, conversion of any
convertible securities of the Company shall not be treated as “effected without
receipt of consideration by the Company.”  Any fractional share
resulting from an adjustment pursuant to this Section 4.2 shall
be rounded down to the nearest whole number.  The Committee in its
sole discretion, may also make such

       

      
        
          
              

          

           

        

        
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      adjustments in the terms of any Award to reflect, or related to, such
changes in the capital structure of the Company or distributions as it deems
appropriate, including modification of Performance Goals, Performance Award
Formulas and Performance Periods.  The adjustments determined by the
Committee pursuant to this Section 4.2 shall be final, binding and conclusive.

       

      5. Eligibility and Award
Limitations.

       

      5.1 Persons Eligible for
Awards.  Awards may be granted only to Employees, Consultants
and Directors.  For purposes of the foregoing sentence, “Employees,”
“Consultants”and “Directors” shall include prospective Employees, prospective
Consultants and prospective Directors to whom Awards are granted in connection
with written offers of an employment or other service relationship with the
Participating Company Group; provided, however, that no Stock subject to any
such Award shall vest, become exercisable or be issued prior to the date on
which such person commences Service.  A Nonemployee Director Award may
be granted only to a person who, at the time of grant, is a Nonemployee
Director.

       

      5.2 Participation.  Awards
other than Nonemployee Director
Awards are granted solely at the discretion of the
Committee.  Eligible persons may be granted more than one
Award.  However,
excepting Nonemployee Director Awards, eligibility in accordance with
this Section shall not entitle any person to be granted an Award, or, having
been granted an Award, to be granted an additional Award.

       

      5.3 Incentive
Stock Option Limitations.

       

      (a) Persons
Eligible.  An Incentive Stock Option may be granted only to a
person who, on the effective date of grant, is an Employee of the Company, a
Parent Corporation or a Subsidiary Corporation (each being an “ISO-Qualifying
Corporation”).  Any person who
is not an Employee of an ISO-Qualifying Corporation on the effective date of the
grant of an Option to such person may be granted only a Nonstatutory Stock
Option.  An Incentive Stock Option granted to a prospective Employee
upon the condition that such person become an Employee of an ISO-Qualifying
Corporation shall be deemed granted effective on the date such person commences
Service with an ISO-Qualifying Corporation, with an exercise price determined as
of such date in accordance with Section 6.1.

       

      (b) Fair Market Value
Limitation.  To the extent that options designated as Incentive
Stock Options (granted under all stock option plans of the Participating Company
Group, including the Plan) become exercisable by a Participant for the first
time during any calendar year for stock having a Fair Market Value greater than
One Hundred Thousand Dollars ($100,000), the portion of such options which
exceeds such amount shall be treated as Nonstatutory Stock
Options.  For purposes of this Section, options designated as
Incentive Stock Options shall be taken into account in the order in which they
were granted, and the Fair Market Value of stock shall be determined as of the
time the option with respect to such stock is granted.  If the Code is
amended to provide for a limitation different from that set forth in this
Section, such different limitation shall be deemed incorporated herein effective
as of the date and with respect to such Options as required or permitted by such
amendment to the Code.  If an Option is treated as an Incentive Stock
Option in part and as a Nonstatutory Stock Option in part by reason of the
limitation set forth in this Section, the Participant may designate which
portion of such

       

      
        
          
              

          

           

        

        
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      Option
the Participant is exercising.  In the absence of such designation,
the Participant shall be deemed to have exercised the Incentive Stock Option
portion of the Option first.  Upon exercise, shares issued pursuant to
each such portion shall be separately identified.

       

      5.4 Award
Limits.

       

      (a) Maximum Number of
Shares Issuable Pursuant to Incentive Stock Options.  Subject
to adjustment as provided in Section 4.2, the maximum aggregate number of shares of Stock that may
be issued under the Plan pursuant to the exercise of Incentive Stock Options
shall not exceed twelve million (12,000,000) shares.  The maximum
aggregate number of shares of Stock that may be issued under the Plan pursuant
to all Awards other than Incentive Stock Options shall be the number of shares
determined in accordance with Section 4.1, subject to adjustment as provided in
Section 4.2 and further subject to the limitation set forth in
Section 5.4(b) below.

       

      (b) Aggregate Limit
on Full Value Awards.  Subject to adjustment as provided in
Section 4.2,
in no event shall more than twelve million (12,000,000) shares in the aggregate
be issued under the Plan pursuant to the exercise or settlement of Restricted
Stock Awards, Restricted Stock Unit Awards and Performance Awards (“Full Value
Awards”).  Except with respect to a maximum of five percent (5%) of
the shares of Stock authorized in this Section 5.4(b), any Full Value
Awards which vest on the basis of the Participant’s continued Service shall not
provide for vesting which is any more rapid than annual pro rata vesting over a
three (3) year period and any Full Value Awards which vest upon the attainment
of Performance Goals shall provide for a Performance Period of at least twelve
(12) months.

       

      (c) Section 162(m)
Award Limits.  The following limits shall apply to the grant of
any Award if, at the time of grant, the Company is a “publicly held corporation”
within the meaning of Section 162(m).

       

      (i) Options and
SARs.  Subject to adjustment as provided in Section 4.2, no Employee shall be granted within any fiscal
year of the Company one or more Options or Freestanding SARs which in the
aggregate are for more than 400,000 shares of Stock reserved for issuance under
the Plan.

       

      (ii) Restricted Stock and Restricted Stock
Unit Awards.  Subject to adjustment as provided in Section 4.2, no Employee shall be granted within any fiscal year of
the Company one or more Restricted Stock Awards or Restricted Stock Unit Awards,
subject to Vesting Conditions based on the attainment of Performance Goals, for
more than 400,000 shares of Stock reserved for issuance under the
Plan.

       

      (iii) Performance
Awards.  Subject to adjustment as provided in Section 4.2, no Employee shall be granted (1) Performance Shares
which could result in such Employee receiving more than 400,000 shares of Stock
reserved for issuance under the Plan for each full fiscal year of the
Company contained in the Performance Period for such Award, or
(2) Performance Units which could result in such Employee receiving more
than two million dollars ($2 million) for each full fiscal year of the Company
contained in the Performance Period

       

      
        
          
              

          

           

        

        
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      for such
Award.  No Participant may be granted more than one Performance Award
for the same Performance Period.

       

      6. Terms
and Conditions of Options.

       

      Options shall be evidenced by Award Agreements specifying the number of
shares of Stock covered thereby, in such form as the Committee shall from time
to time establish.  No Option or purported Option shall be a valid and
binding obligation of the Company unless evidenced by a fully executed Award
Agreement.  Award Agreements evidencing Options may incorporate all or
any of the terms of the Plan by reference and, except as otherwise set forth in
Section 7 with respect to Nonemployee Director Options, shall comply with
and be subject to the following terms and conditions:

       

      6.1 Exercise Price.  The
exercise price for each Option shall be established in the discretion of the
Committee; provided, however, that (a) the exercise price per share shall be not
less than the Fair Market Value of a share of Stock on the effective date of
grant of the Option and (b) no Incentive Stock Option granted to a Ten
Percent Owner shall have an exercise price per share less than one hundred ten
percent (110%) of the Fair Market Value of a share of Stock on the effective
date of grant of the Option.  Notwithstanding the foregoing, an Option
(whether an Incentive Stock Option or a Nonstatutory Stock Option) may be
granted with an exercise price lower than the minimum exercise price set forth
above if such Option is granted pursuant to an assumption or substitution for
another option in a manner qualifying under the provisions of
Section 424(a) of the Code.

       

      6.2 Exercisability and Term of
Options.  Options
shall be exercisable at such time or times, or upon such event or events, and
subject to such terms, conditions, performance criteria and restrictions as
shall be determined by the Committee and set forth in the Award Agreement
evidencing such Option; provided, however, that (a) no Option shall be
exercisable after the expiration of ten (10) years after the effective date of
grant of such Option, (b) no Incentive Stock Option granted to a Ten
Percent Owner shall be exercisable after the expiration of five (5) years after
the effective date of grant of such Option, and (c) no Option granted to a
prospective Employee, prospective Consultant or prospective Director may become
exercisable prior to the date on which such person commences
Service.  Subject to the foregoing, unless otherwise specified by the
Committee in the grant of an Option, any Option granted hereunder shall
terminate ten (10) years after the effective date of grant of the Option, unless
earlier terminated in accordance with its provisions.

       

      6.3 Payment
of Exercise Price.

       

      (a) Forms of
Consideration Authorized.  Except as otherwise provided below,
payment of the exercise price for the number of shares of Stock being purchased
pursuant to any Option shall be made (i) in cash, by check or in cash
equivalent, (ii) by tender to the Company, or attestation to the ownership,
of shares of Stock owned by the Participant having a Employee receiving more
than 400,000 shares of Stock reserved for issuance under the Plan for each full
fiscal year of the Company contained in the Performance Period for such Award,
or (2) Performance Units which could result in such Employee receiving more
than two million dollars ($2 million) for each full fiscal year of the Company
contained in the Performance Period

       

      
        
          
              

          

           

        

        
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      complying
with the provisions of Regulation T as promulgated from time to time by the
Board of Governors of the Federal Reserve System) (a “Cashless
Exercise”), (iv)
by delivery of a properly executed notice of exercise electing a Net-Exercise,
(v) by such other consideration as may be approved by the Committee from
time to time to the extent permitted by applicable law, or (vi) by any
combination thereof.  The Committee may at any time or from time to
time grant Options which do not permit all of the foregoing forms of
consideration to be used in payment of the exercise price or which otherwise
restrict one or more forms of consideration.

       

      (b) Limitations
on Forms of Consideration.

       

      (i) Tender of
Stock.  Notwithstanding the foregoing, an Option may not be
exercised by tender to the Company, or attestation to the ownership, of shares
of Stock to the extent such tender or attestation would constitute a violation
of the provisions of any law, regulation or agreement restricting the redemption
of the Company’s stock.

       

      (ii) Cashless
Exercise.  The Company reserves, at any and all times, the
right, in the Company’s sole and absolute discretion, to establish, decline to
approve or terminate any program or procedures for the exercise of Options by
means of a Cashless Exercise, including with respect to one or more Participants
specified by the Company notwithstanding that such program or procedures may be
available to other Participants.

       

      6.4 Effect
of Termination of Service.

       

      (a) Option
Exercisability.  Subject to
earlier termination of the Option as otherwise provided herein and unless
otherwise provided by the Committee, an Option shall be exercisable after a
Participant’s termination of Service only during the applicable time periods
provided in the Award Agreement.

       

      (b) Extension if
Exercise Prevented by Law.  Notwithstanding
the foregoing, unless the Committee provides otherwise in the Award Agreement,
if the exercise of an Option within the applicable time periods is prevented by
the provisions of Section 14.1 below, the Option shall remain exercisable
until three (3) months (or such longer period of time as determined by the
Committee, in its discretion) after the date the Participant is notified by the
Company that the Option is exercisable, but in any event no later than the
Option Expiration Date.

       

      (c) Extension if
Participant Subject to Section 16(b).  Notwithstanding
the foregoing, if a sale within the applicable time periods of shares acquired
upon the exercise of the Option would subject the Participant to suit under
Section 16(b) of the Exchange Act, the Option shall remain exercisable
until the earliest to occur of (i) the tenth (10th) day following the date
on which a sale of such shares by the Participant would no longer be subject to
such suit, (ii) the one hundred and ninetieth (190th) day after the
Participant’s termination of Service, or (iii) the Option Expiration
Date.

       

      6.5 Transferability of
Options.  During the lifetime of the Participant, an Option
shall be exercisable only by the Participant or the Participant’s guardian or
legal representative.  Prior to the issuance of shares of Stock upon
the exercise of an Option, the Option shall not be subject in any manner to
anticipation, alienation, sale, exchange, transfer, assignment,
pledge,

       

      
        
          
              

          

           

        

        
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      encumbrance,
or garnishment by creditors of the Participant or the Participant’s beneficiary,
except transfer by will or by the laws of descent and
distribution.  Notwithstanding the foregoing, to the extent permitted
by the Committee, in its discretion, and set forth in the Award Agreement
evidencing such Option, a Nonstatutory Stock Option shall be assignable or
transferable subject to the applicable limitations, if any, described in the
General Instructions to Form S-8 Registration Statement under the
Securities Act.  

       

      7. Terms and Conditions of
Nonemployee Director Awards.

       

      Nonemployee
Director Awards shall be evidenced by Award Agreements in such form as the Board
shall from time to time establish.  Such Award Agreements may
incorporate all or any of the terms of the Plan by reference, shall be automatic
and non-discretionary and shall comply with and be subject to the terms and
conditions set forth in this Section 7.

       

      For
purposes of this Section 7, Nonemployee Director awards for any given calendar
year shall be granted on the first business day of March in that calendar year
(the “Grant Date”).

       

      7.1 Automatic
Grant of Restricted Stock.

       

      (a) Timing and Amount
of Grant.  For each calendar year, each person who is a
Nonemployee Director on the Grant Date shall be granted a Restricted Stock Award
to purchase a number of shares of Stock determined by dividing forty thousand
dollars ($40,000) by the Fair Market Value of the Stock on the Grant Date, and
rounding down to the nearest whole number.

       

      (b) Vesting.  The
shares subject to the Restricted Stock Award granted pursuant to
Section 7.1(a) shall vest in equal annual installments of twenty percent
(20%) on each anniversary of the Grant Date, with one hundred percent (100%) of
the shares vested on the fifth anniversary of the Grant
Date.

       

      7.2 Annual Election to Receive
Nonstatutory Stock Option and Restricted Stock Units.  On a
date no later than December 31 of each calendar year during the term of the
Plan, each person who is then a Nonemployee Director shall deliver to the Board
a written election to receive either Nonstatutory Stock Options or Restricted
Stock Units, or both, with an aggregate value of $40,000, on the Grant Date for
the following calendar year, provided the person continues to be a Nonemployee
Director on the Grant Date.  A Nonemployee Director may allocate
between Nonstatutory Stock Options and Restricted Stock Units in minimum
increments with a value equal to $5,000, as determined in accordance with
Sections 7.3 and 7.4.  All awards of Nonstatutory Stock Options and
Restricted Stock Units made to Nonemployee Directors shall comply with the
provisions of Sections 7.3 and 7.4, respectively.  A Nonemployee
Director who fails to make a timely election or who first becomes a Nonemployee
Director after December 31 but before the Grant Date for the following
calendar year shall be awarded Nonstatutory Stock Options and Restricted Stock
Units each with a value of $20,000, as determined in accordance with Sections
7.3 and 7.4, provided the Nonemployee Director continues to be a Nonemployee
Director on the Grant Date.

       

      7.3 Grant
of Nonstatutory Stock Option.

       

      
        
          
          

        

        
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      (a) Timing and Amount
of Grant.  For each calendar year, unless
a Nonemployee Director made an election to decline the award of a Nonstatutory
Stock Option in accordance with Section 7.2 above, each person who is a
Nonemployee Director on the Grant Date  shall receive a grant of a
Nonstatutory Stock Option with an aggregate value equal to $5,000, $10,000,
$15,000, $20,000, $25,000 $30,000, $35,000 or $40,000 as previously elected by
the Nonemployee Director (or $20,000 in the case of a Nonemployee Director who
failed to make a timely election or who became a Nonemployee Director before the
Grant Date for a particular year but after December 31 of the previous
year) (the “Elected Option
Value”).

       

      The
number of shares subject to the Nonstatutory Stock Option shall be determined by
dividing the Elected Option Value by the value of a Nonstatutory Stock Option to
purchase a single share of Stock as of the Grant Date.  The per share
option value shall be calculated in accordance with the Black-Scholes stock
option valuation method using the average closing price of Stock during the
preceding months of November, December, and January, and reducing the per option
value by twenty percent (20%).  The resulting number of shares subject
to the Nonstatutory Stock Option shall be rounded down to the nearest whole
share.  No person shall receive more than one grant of Nonstatutory
Stock Options pursuant to this Section 7.3(a) during any calendar
year.

       

      (b) Exercise Price
and Payment.  The exercise price of each Nonstatutory Stock
Option granted pursuant to Section 7.3(a) shall be the Fair Market Value of
the Stock on the Grant Date.  The payment of the exercise price for
the number of shares of Stock being purchased pursuant to the Nonstatutory Stock
Option shall be made in accordance with the provisions of Section
6.3.

       

      (c) Vesting and
Exercisability.  The Nonstatutory Stock Option granted in
accordance with this Section shall become vested and exercisable as to one third
(1/3) of the shares subject to the Nonstatutory Stock Option on the second,
third and fourth anniversaries of the Grant Date, respectively.  The
Nonstatutory Stock Option shall terminate ten (10) years after the Grant Date,
unless earlier terminated in accordance with its provisions.

       

      7.4 Grant
of Restricted Stock Unit.

       

      (a)  Timing and Amount
of Grant.  For each calendar year, unless a Nonemployee
Director made an election to decline the award of a Restricted Stock Unit in
accordance with Section 7.2 above, on the Grant Date each person who is a
Nonemployee Director on the Grant Date shall receive a grant of a Restricted
Stock Unit Award with an aggregate value (as determined by the Fair Market Value
of the Stock on the Grant Date) equal to $5,000, $10,000, $15,000, $20,000,
$25,000, $30,000, $35,000 or $40,000, as previously elected by the Nonemployee
Director (or $20,000 in the case of a Nonemployee Director who failed to make a
timely election or who became a Nonemployee Director after December 31 but
before the Grant Date) (the “Elected Stock
Unit Value”).  The number of shares subject to the Restricted
Stock Unit Award shall be determined by dividing the Elected Stock Unit Value by
the Fair Market Value of the Stock as of the Grant Date (including fractions
computed to three decimal places).  The Restricted Stock Units awarded
to a Nonemployee Director shall be credited to the director’s Restricted Stock
Unit account.  Each Restricted Stock Unit awarded to a Nonemployee
Director in accordance with this Section 7.4(a) shall be deemed to be equal
to one (1) (or fraction thereof) share of Stock on the Grant Date, and shall
thereafter fluctuate in value

       

      
        
          
              

          

           

        

        
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      in
accordance with the Fair Market Value of the Stock.  No person shall
receive more than one grant of Restricted Stock Units pursuant to this
Section 7.4(a) during any calendar year.

       

      (b)  Dividend
Rights.  Each Nonemployee Director’s Restricted Stock Unit
account shall be credited quarterly on each dividend payment date with
additional shares of Restricted Stock Units (including fractions computed to
three decimal places) determined by dividing (1) the amount of cash dividends
paid on such date with respect to the number of shares of Stock represented by
the Restricted Stock Units previously credited to the account by (2) the Fair
Market Value per share of Stock on such date.  Such additional
Restricted Stock Units shall be subject to the same terms and conditions and
shall be settled in the same manner and at the same time as the Restricted Stock
Units originally subject to the Restricted Stock Unit Award.

       

      (c) Settlement of
Restricted Stock Unit Award.  Settlement of the shares credited
to a Nonemployee Director’s Restricted Stock Unit account shall only be made (a)
after the Nonemployee Director’s Mandatory Retirement from the Board, (b) if the
Director ceases to be a member of the Board of Directors after five years of
continuous service on the Board (“Director Retirement”), or (c) as provided in
Section 7.5 below.  Settlement shall be made only in the form of
shares of Stock equal to the number of Restricted Stock Units credited to the
Nonemployee Director’s account on the date of distribution, rounded down to the
nearest whole share.  The Nonemployee Director may elect to receive
the Stock in a lump sum distribution or in a series of ten or less approximately
equal annual installments, provided that distribution shall commence no later
than January of the year following the year in which the Nonemployee Director’s
Director Retirement or Mandatory Retirement occurred.

       

      7.5 Effect
of Termination of Service as a Nonemployee Director.

       

      (a) Status of
Award.  Subject to
earlier termination of the Nonemployee Director Award as otherwise provided
herein, the status of a Nonemployee Director Award shall be determined as
follows:

       

      (i) Death or
Disability.  If the Nonemployee Director’s Service terminates
due to death or Disability (1) all shares subject to the Restricted Stock Award
shall become fully vested, and the Participant (or the Participant’s legal
representative or other person who acquired the rights to the Restricted Stock
by reason of the Participant’s death) shall have the right to resell or transfer
such shares at any time; (2) all Nonstatutory Stock Options held by the
Participant shall become fully vested and exercisable, and the Participant (or
the Participant’s legal representative or other person who acquired the rights
to the Nonstatutory Stock Option by reason of the Participant’s death) shall
have the right to exercise the Nonstatutory Stock Options until the earlier of
(a) the date that is twelve (12) months after the date on which the
Participant’s Service terminated, or (b) the Option Expiration Date and (3)
all Restricted Stock Units credited to the Nonemployee Director’s account shall
immediately become payable to the Participant (or the Participant’s legal
representative or other person who acquired the rights to the Restricted Stock
Units by reason of the Participant’s death) in the form of a number of shares of
Stock equal to the number of Restricted Stock Units credited to the Restricted
Stock Unit account, rounded down to the nearest whole share.

       

      
        
          
              

          

           

        

        
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      (ii)  Mandatory
Retirement.  If the Participant’s Service terminates because of
the Mandatory Retirement of the Participant (1) all shares subject to the
Restricted Stock Award shall become fully vested, and the Participant shall have
the right to resell or transfer such shares at any time; (2) all Nonstatutory
Stock Options held by the Participant shall become fully vested and exercisable
and the Participant shall have the right to exercise the Nonstatutory Stock
Options until the earlier of (a) the date that is five (5) years after the
date on which the Participant’s Service terminated, or (b) the Option
Expiration Date and (3) all Restricted Stock Units credited to the Nonemployee
Director’s account shall immediately become payable to the Participant in
accordance with Section 7.4(c) above.

       

      (iii) Other Termination of
Service.  If the Participant’s Service terminates for any
reason other than those enumerated in Sections 7.5(a)(i) and 7.5(a)(ii), (1) any
unvested shares of Restricted Stock shall be forfeited to the Company and from
and after the date of such termination, the Participant shall cease to be a
shareholder with respect to such forfeited shares and shall have no dividend,
voting or other rights with respect thereto, (2) the unvested portion of
any Nonstatutory Stock Option shall terminate, and any portion of the
Nonstatutory Stock Option exercisable by the Participant on the date on which
the Participant’s Service terminated may be exercised until the earlier of
(a) the date that is three (3) months after the date on which the
Participant’s Service terminated, or (b) the Option Expiration Date and
(3) except as provided in Section 7.4(c), all Restricted Stock Units
credited to the Participant’s account shall be forfeited on the date of
termination.

       

      (iv) Notwithstanding
the provisions of Section 7.5(i) through 7.5(iii) above, the Board, in its sole
discretion, may establish different terms and conditions pertaining to
Nonemployee Director Awards.

       

      (b) Extension if
Exercise Prevented by Law.  Notwithstanding
the foregoing, if the exercise of a Nonstatutory
Stock Option within the applicable time periods set forth in
Section 7.5(a) is prevented by the provisions of
Section 14.1 below, the Nonstatutory Stock Option shall remain
exercisable until three (3) months after the date the Participant is notified by
the Company that the Nonstatutory Stock Option is exercisable, but in any event
no later than the Option Expiration Date.

       

      (c) Extension if
Participant Subject to Section 16(b).  Notwithstanding
the foregoing, if a sale within the applicable time periods set forth in
Section 7.5(a)
of shares acquired upon the exercise of the Nonstatutory Stock Option would
subject the Participant to suit under Section 16(b) of the Exchange Act,
the Nonstatutory Stock Option shall remain exercisable until the earliest to
occur of (i) the tenth (10th) day following the date on which a sale of
such shares by the Participant would no longer be subject to such suit,
(ii) the one hundred and ninetieth (190th) day after the Participant’s
termination of Service, or (iii) the Option Expiration
Date.

       

      7.6 Effect of Change in Control on
Nonemployee Director Awards.  Upon the occurrence of a Change
in Control, (i) the vesting of all shares of Restricted Stock granted
pursuant to Section 7.1(a) shall be accelerated so that all such shares
become fully vested, (ii) the vesting of Nonstatutory Stock Options granted
pursuant to Section 7.3(a) shall be accelerated and such Nonstatutory Stock
Options shall remain fully exercisable until the Option Expiration
Date,

       

      
        
          
              

          

           

        

        
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      and (iii)
all Restricted Stock Units shall be settled in accordance with Section 7.4(c) as
if the Change of Control constituted Director
Retirement.  

       

      7.7 Right to Decline Nonemployee Director
Awards.  Notwithstanding the foregoing, any person may elect
not to receive a Nonemployee Director Award by delivering written notice of such
election to the Board no later than the day prior to the date such Nonemployee
Director Award would otherwise be granted.  A person so declining a
Nonemployee Director Award shall receive no payment or other consideration in
lieu of such declined Nonemployee Director Award.  A person who has
declined a Nonemployee Director Award may revoke such election by delivering
written notice of such revocation to the Board no later than the day prior to
the date such Nonemployee Director Award would be granted.

       

      8. Terms and Conditions of
Stock Appreciation Rights.

       

      Stock
Appreciation Rights shall be evidenced by Award Agreements specifying the number
of shares of Stock subject to the Award, in such form as the Committee shall
from time to time establish.  No SAR or purported SAR shall be a valid
and binding obligation of the Company unless evidenced by a fully executed Award
Agreement.  Award Agreements evidencing SARs may incorporate all or
any of the terms of the Plan by reference and shall comply with and be subject
to the following terms and conditions:

       

      8.1 Types of SARs
Authorized.  SARs may be granted in tandem with all or any
portion of a related Option (a “Tandem
SAR”) or may be
granted independently of any Option (a “Freestanding
SAR”).  A Tandem SAR
may be granted either concurrently with the grant of the related Option or at
any time thereafter prior to the complete exercise, termination, expiration or
cancellation of such related Option.

       

      8.2 Exercise Price.  The
exercise price for each SAR shall be established in the discretion of the
Committee; provided, however, that (a) the exercise price per share subject
to a Tandem SAR shall be the exercise price per share under the related Option
and (b) the exercise price per share subject to a Freestanding SAR shall be
not less than the Fair Market Value of a share of Stock on the effective date of
grant of the SAR.

       

      8.3 Exercisability
and Term of SARs.

       

      (a) Tandem
SARs.  Tandem SARs shall be exercisable only at the time and to
the extent, and only to the extent, that the related Option is exercisable,
subject to such provisions as the Committee may specify where the Tandem SAR is
granted with respect to less than the full number of shares of Stock subject to
the related Option.

       

      (b)  Freestanding
SARs.  Freestanding SARs shall be exercisable at such time or
times, or upon such event or events, and subject to such terms, conditions,
performance criteria and restrictions as shall be determined by the Committee
and set forth in the Award Agreement evidencing such SAR; provided, however,
that no Freestanding SAR shall be exercisable after the expiration of ten (10)
years after the effective date of grant of such SAR.

       

      8.4 Deemed Exercise of
SARs.  If, on the date on which an SAR would otherwise
terminate or expire, the SAR by its terms remains exercisable immediately prior
to such

       

      
        
          
              

          

           

        

        
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      termination
or expiration and, if so exercised, would result in a payment to the holder of
such SAR, then any portion of such SAR which has not previously been exercised
shall automatically be deemed to be exercised as of such date with respect to
such portion.

       

      8.5 Effect of Termination of
Service.  Subject to earlier termination of the SAR as
otherwise provided herein and unless otherwise provided by the Committee in the
grant of an SAR and set forth in the Award Agreement, an SAR shall be
exercisable after a Participant’s termination of Service only as provided in the
Award Agreement.

       

      8.6 Nontransferability of
SARs.  During the lifetime of the Participant, an SAR shall be
exercisable only by the Participant or the Participant’s guardian or legal
representative.  Prior to the exercise of an SAR, the SAR shall not be
subject in any manner to anticipation, alienation, sale, exchange, transfer,
assignment, pledge, encumbrance, or garnishment by creditors of the Participant
or the Participant’s beneficiary, except transfer by will or by the laws of
descent and distribution.

       

      9. Terms and Conditions of
Restricted Stock Awards.

       

      Restricted
Stock Awards shall be evidenced by Award Agreements specifying the number of
shares of Stock subject to the Award, in such form as the Committee shall from
time to time establish.  No Restricted Stock Award or purported
Restricted Stock Award shall be a valid and binding obligation of the Company
unless evidenced by a fully executed Award Agreement.  Award
Agreements evidencing Restricted Stock Awards may incorporate all or any of the
terms of the Plan by reference and shall comply with and be subject to the
following terms and conditions:

       

      9.1 Types of Restricted Stock Awards
Authorized.  Restricted Stock Awards may or may not require the
payment of cash compensation for the stock.  Restricted Stock Awards
may be granted upon such conditions as the Committee shall determine, including,
without limitation, upon the attainment of one or more Performance Goals
described in Section 10.4.  If either the
grant of a Restricted Stock Award or the lapsing of the Restriction Period is to
be contingent upon the attainment of one or more Performance Goals, the
Committee shall follow procedures substantially equivalent to those set forth in
Sections 10.3 through 10.5(a).

       

      9.2 Purchase Price.  The
purchase price, if any, for shares of Stock issuable under each Restricted Stock
Award and the means of payment shall be established by the Committee in its
discretion.  

       

      9.3 Purchase Period.  A
Restricted Stock Award requiring the payment of cash consideration shall be
exercisable within a period established by the Committee; provided, however,
that no Restricted Stock Award granted to a prospective Employee, prospective
Consultant or prospective Director may become exercisable prior to the date on
which such person commences Service.

       

      9.4 Vesting
and Restrictions on Transfer.  Shares issued pursuant to any
Restricted Stock Award may or may not be made subject to Vesting Conditions
based upon the satisfaction of such Service requirements, conditions,
restrictions or performance criteria, including, without limitation, Performance
Goals as described in Section 10.4,
as shall be established by the

       

      
        
          
              

          

           

        

        
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      Committee and set forth in the Award Agreement evidencing such
Award.  During any Restriction Period in which shares acquired
pursuant to a Restricted Stock Award remain subject to Vesting Conditions, such
shares may not be sold, exchanged, transferred, pledged, assigned or otherwise
disposed of other than as provided in the Award Agreement or as provided in
Section 9.7.  Upon
request by the Company, each Participant shall execute any agreement evidencing
such transfer restrictions prior to the receipt of shares of Stock hereunder and
shall promptly present to the Company any and all certificates representing
shares of Stock acquired hereunder for the placement on such certificates of
appropriate legends evidencing any such transfer
restrictions.

       

      9.5 Voting Rights, Dividends and
Distributions.  Except as provided in this Section,
Section 9.4 and any Award Agreement,
during the Restriction Period applicable to shares subject to a Restricted Stock
Award, the Participant shall have all of the rights of a shareholder of the
Company holding shares of Stock, including the right to vote such shares and to
receive all dividends and other distributions paid with respect to such
shares.  However, in the event of a dividend or distribution paid in
shares of Stock or any other adjustment made upon a change in the capital
structure of the Company as described in Section 4.2, any and all new, substituted or
additional securities or other property (other than normal cash
dividends) to which the Participant is entitled by reason of the Participant’s
Restricted Stock Award shall be immediately subject to the same Vesting
Conditions as the shares subject to the Restricted Stock Award with respect to
which such dividends or distributions were paid or adjustments were
made.

       

      9.6 Effect of Termination of
Service.  Unless otherwise provided by the Committee in the
grant of a Restricted Stock Award and set forth in the Award Agreement, if a
Participant’s Service terminates for any reason, whether voluntary or
involuntary (including the Participant’s death or disability), then the
Participant shall forfeit to the Company any shares acquired by the Participant
pursuant to a Restricted Stock Award which remain subject to Vesting Conditions
as of the date of the Participant’s termination of Service in exchange for the
payment of the purchase price, if any, paid by the Participant.  The
Company shall have the right to assign at any time any repurchase right it may
have, whether or not such right is then exercisable, to one or more persons as
may be selected by the Company.

       

      9.7 Nontransferability of Restricted
Stock Award Rights.  Prior to the issuance of shares of Stock
pursuant to a Restricted Stock Award, rights to acquire such shares shall not be
subject in any manner to anticipation, alienation, sale, exchange, transfer,
assignment, pledge, encumbrance or garnishment by creditors of the Participant
or the Participant’s beneficiary, except transfer by will or the laws of descent
and distribution.  All rights with respect to a Restricted Stock Award
granted to a Participant hereunder shall be exercisable during his or her
lifetime only by such Participant or the Participant’s guardian or legal
representative.

       

      10. Terms and Conditions of
Performance Awards.

       

      Performance
Awards shall be evidenced by Award Agreements in such form as the Committee
shall from time to time establish.  No Performance Award or purported
Performance Award shall be a valid and binding obligation of the Company unless
evidenced by a fully executed Award Agreement.  Award Agreements
evidencing Performance Awards may

       

      
        
          
              

          

           

        

        
          21

          
            

          

        

        
           

        

      

      incorporate
all or any of the terms of the Plan by reference and shall comply with and be
subject to the following terms and conditions:

       

      10.1 Types of Performance Awards
Authorized.  Performance Awards may be in the form of either
Performance Shares or Performance Units.  Each Award Agreement
evidencing a Performance Award shall specify the number of Performance Shares or
Performance Units subject thereto, the Performance Award Formula, the
Performance Goal(s) and Performance Period applicable to the Award, and the
other terms, conditions and restrictions of the Award.

       

      10.2 Initial Value of Performance Shares
and Performance Units.  Unless otherwise provided by the
Committee in granting a Performance Award, each Performance Share shall have an
initial value equal to the Fair Market Value of one (1) share of Stock, subject
to adjustment as provided in Section 4.2, on the effective date of
grant of the Performance Share.  Each Performance Unit shall have an
initial value determined by the Committee.  The final value payable to
the Participant in settlement of a Performance Award determined on the basis of
the applicable Performance Award Formula will depend on the extent to which
Performance Goals established by the Committee are attained within the
applicable Performance Period established by the Committee.

       

      10.3 Establishment of Performance Period,
Performance Goals and Performance Award Formula.  In granting
each Performance Award, the Committee shall establish in writing the applicable
Performance Period, Performance Award Formula and one or more Performance Goals
which, when measured at the end of the Performance Period, shall determine on
the basis of the Performance Award Formula the final value of the Performance
Award to be paid to the Participant.  To the extent compliance with
the requirements under Section 162(m) with respect to “performance-based
compensation” is desired, the Committee shall establish the Performance Goal(s)
and Performance Award Formula applicable to each Performance Award no later than
the earlier of (a) the date ninety (90) days after the commencement of the
applicable Performance Period or (b) the date on which 25% of the Performance
Period has elapsed, and, in any event, at a time when the outcome of the
Performance Goals remains substantially uncertain.  Once established,
the Performance Goals and Performance Award Formula shall not be changed during
the Performance Period.  The Company shall notify each Participant
granted a Performance Award of the terms of such Award, including the
Performance Period, Performance Goal(s) and Performance Award
Formula.

       

      10.4 Measurement of Performance
Goals.  Performance Goals shall be established by the Committee
on the basis of targets to be attained (“Performance
Targets”) with
respect to one or more measures of business or financial performance (each, a
“Performance
Measure”),
subject to the following:

       

      (a) Performance
Measures.  Performance Measures shall have the same meanings as
used in the Company’s financial statements, or, if such terms are not used in
the Company’s financial statements, they shall have the meaning applied pursuant
to generally accepted accounting principles, or as used generally in the
Company’s industry.  Performance Measures shall be calculated with
respect to the Company and each Subsidiary Corporation consolidated therewith
for financial reporting purposes or such division or other business unit as may
be selected by the Committee.  For purposes of the Plan, the
Performance Measures

       

      
        
          
              

          

           

        

        
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      applicable
to a Performance Award shall be calculated in accordance with generally accepted
accounting principles, but prior to the accrual or payment of any Performance
Award for the same Performance Period and excluding the effect (whether positive
or negative) of any change in accounting standards or any extraordinary, unusual
or nonrecurring item, as determined by the Committee, occurring after the
establishment of the Performance Goals applicable to the Performance
Award.  Each such adjustment, if any, shall be made solely for the
purpose of providing a consistent basis from period to period for the
calculation of Performance Measures in order to prevent the dilution or
enlargement of the Participant’s rights with respect to a Performance
Award.  Performance Measures may be one or more of the following, as
determined by the Committee:  (i) sales revenue; (ii) gross
margin; (iii) operating margin; (iv) operating income;
(v) pre-tax profit; (vi) earnings before interest, taxes and
depreciation and amortization; (vii) net income; (viii) expenses;
(ix) the market price of the Stock; (x) earnings per share;
(xi) return on shareholder equity; (xii) return on capital;
(xiii) return on net assets; (xiv) economic value added; and
(xv) market share; (xvi) customer service; (xvii) customer
satisfaction; (xviii) safety; (xix) total shareholder return; or
(xx) such other measures as determined by the Committee consistent with
this Section 10.4(a).

       

      (b) Performance
Targets.  Performance Targets may include a minimum, maximum,
target level and intermediate levels of performance, with the final value of a
Performance Award determined under the applicable Performance Award Formula by
the level attained during the applicable Performance Period.  A
Performance Target may be stated as an absolute value or as a value determined
relative to a standard selected by the Committee.

       

      10.5 Settlement
of Performance Awards.

       

      (a) Determination of
Final Value.  As soon as practicable following the completion
of the Performance Period applicable to a Performance Award, the Committee shall
certify in writing the extent to which the applicable Performance Goals have
been attained and the resulting final value of the Award earned by the
Participant and to be paid upon its settlement in accordance with the applicable
Performance Award Formula.

       

      (b) Discretionary
Adjustment of Award Formula.  In its discretion, the Committee
may, either at the time it grants a Performance Award or at any time thereafter,
provide for the positive or negative adjustment of the Performance Award Formula
applicable to a Performance Award that is not intended to constitute “qualified
performance based compensation” to a “covered employee” within the meaning of
Section 162(m) (a “Covered
Employee”) to
reflect such Participant’s individual performance in his or her position with
the Company or such other factors as the Committee may
determine.  With respect to a Performance Award intended to constitute
qualified performance-based compensation to a Covered Employee, the Committee
shall have the discretion to reduce some or all of the value of the Performance
Award that would otherwise be paid to the Covered Employee upon its settlement
notwithstanding the attainment of any Performance Goal and the resulting value
of the Performance Award determined in accordance with the Performance Award
Formula.

       

      (c) Payment in
Settlement of Performance Awards.  As soon as practicable
following the Committee’s determination and certification in accordance with
Sections 10.5(a) and (b), payment shall be made to
each eligible Participant (or such Participant’s legal

       

      
        
          
              

          

           

        

        
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      representative
or other person who acquired the right to receive such payment by reason of the
Participant’s death) of the final value of the Participant’s Performance
Award.  Payment of such amount shall be made in cash, shares of Stock,
or a combination thereof as determined by the Committee.

       

      10.6 Voting Rights, Dividend Equivalent
Rights and Distributions.  Participants shall have no voting
rights with respect to shares of Stock represented by Performance Share Awards
until the date of the issuance of such shares, if any (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company).  However, the Committee, in its discretion, may
provide in the Award Agreement evidencing any Performance Share Award that the
Participant shall be entitled to receive Dividend Equivalents with respect to
the payment of cash dividends on Stock having a record date prior to the date on
which the Performance Shares are settled or forfeited.  Such Dividend
Equivalents, if any, shall be credited to the Participant in the form of
additional whole Performance Shares as of the date of payment of such cash
dividends on Stock.  The number of additional Performance Shares
(rounded to the nearest whole number) to be so credited shall be determined by
dividing (a) the amount of cash dividends paid on such date with respect to
the number of shares of Stock represented by the Performance Shares previously
credited to the Participant by (b) the Fair Market Value per share of Stock
on such date.  Dividend Equivalents may be paid currently or may be
accumulated and paid to the extent that Performance Shares become
nonforfeitable, as determined by the Committee.  Settlement of
Dividend Equivalents may be made in cash, shares of Stock, or a combination
thereof as determined by the Committee, and may be paid on the same basis as
settlement of the related Performance Share as provided in Section 10.5.  Dividend Equivalents shall not be paid with respect to
Performance Units.  In the event of a dividend or distribution paid in
shares of Stock or any other adjustment made upon a change in the capital
structure of the Company as described in Section 4.2, appropriate adjustments shall be made in the Participant’s Performance
Share Award so that it represents the right to receive upon settlement any and
all new, substituted or additional securities or other property (other
than normal cash dividends) to which the Participant would be entitled by reason
of the shares of Stock issuable upon settlement of the Performance Share Award,
and all such new, substituted or additional securities or other property shall
be immediately subject to the same Performance Goals as are applicable to the
Award.

       

      10.7 Effect of Termination of
Service.  Unless otherwise provided by the Committee in the
grant of a Performance Award and set forth in the Award Agreement, the effect of
a Participant’s termination of Service on the Performance Award shall be as
follows:

       

      (a) Death or
Disability.  If the Participant’s Service terminates because of
the death or Disability of the Participant before the completion of the
Performance Period applicable to the Performance Award, the final value of the
Participant’s Performance Award shall be determined by the extent to which the
applicable Performance Goals have been attained with respect to the entire
Performance Period and shall be prorated based on the number of months of the
Participant’s Service during the Performance Period.  Payment shall be
made following the end of the Performance Period in any manner permitted by
Section 10.5.

       

      (b) Other Termination
of Service.  If the Participant’s Service terminates for any
reason except death or Disability before the completion of the Performance
Period

       

      
        
          
              

          

           

        

        
          24

          
            

          

        

        
           

        

      

      applicable
to the Performance Award, such Award shall be forfeited in its entirety;
provided, however, that in the event of an involuntary termination of the
Participant’s Service, the Committee, in its sole discretion, may waive the
automatic forfeiture of all or any portion of any such Award.

       

      10.8 Nontransferability of Performance
Awards.  Prior to settlement in accordance with the provisions
of the Plan, no Performance Award shall be subject in any manner to
anticipation, alienation, sale, exchange, transfer, assignment, pledge,
encumbrance, or garnishment by creditors of the Participant or the Participant’s
beneficiary, except transfer by will or by the laws of descent and
distribution.  All rights with respect to a Performance Award granted
to a Participant hereunder shall be exercisable during his or her lifetime only
by such Participant or the Participant’s guardian or legal
representative.

       

      11. Terms and
Conditions of Restricted Stock Unit Awards.

       

      Restricted
Stock Unit Awards shall be evidenced by Award Agreements specifying the number
of Restricted Stock Units subject to the Award, in such form as the Committee
shall from time to time establish.  No Restricted Stock Unit Award or
purported Restricted Stock Unit Award shall be a valid and binding obligation of
the Company unless evidenced by a fully executed Award
Agreement.  Award Agreements evidencing Restricted Stock Units may
incorporate all or any of the terms of the Plan by reference and shall comply
with and be subject to the following terms and conditions:

       

      11.1 Grant of Restricted Stock Unit
Awards.  Restricted Stock Unit Awards may be granted upon such
conditions as the Committee shall determine, including, without limitation, upon
the attainment of one or more Performance Goals described in Section 10.4.  If
either the grant of a Restricted Stock Unit Award or the Vesting Conditions with
respect to such Award is to be contingent upon the attainment of one or more
Performance Goals, the Committee shall follow procedures substantially
equivalent to those set forth in Sections 10.3 through 10.5(a).

       

      11.2 Vesting.  Restricted
Stock Units may or may not be made subject to Vesting Conditions based upon the
satisfaction of such Service requirements, conditions, restrictions or
performance criteria, including, without limitation, Performance Goals as
described in Section 10.4, as shall be established by the Committee and set
forth in the Award Agreement evidencing such Award.

       

      11.3 Voting Rights, Dividend Equivalent
Rights and Distributions.  Participants shall have no voting
rights with respect to shares of Stock represented by Restricted Stock Units
until the date of the issuance of such shares (as evidenced by the appropriate
entry on the books of the Company or of a duly authorized transfer agent of the
Company).  However, the Committee, in its discretion, may provide in
the Award Agreement evidencing any Restricted Stock Unit Award that the
Participant shall be entitled to receive Dividend Equivalents with respect to
the payment of cash dividends on Stock having a record date prior to the date on
which Restricted Stock Units held by such Participant are
settled.  Such Dividend Equivalents, if any, shall be paid by
crediting the Participant with additional whole Restricted Stock Units as of the
date of payment of such cash dividends on Stock.  The number of
additional Restricted Stock Units (rounded to the nearest whole number) to be so
credited shall be determined by dividing

       

      
        
          
              

          

           

        

        
          25

          
            

          

        

        
           

        

      

      (a)
the amount of cash dividends paid on such date with respect to the number of
shares of Stock represented by the Restricted Stock Units previously credited to
the Participant by (b) the Fair Market Value per share of Stock on such
date.  Such additional Restricted Stock Units shall be subject to the
same terms and conditions and shall be settled in the same manner and at the
same time (or as soon thereafter as practicable) as the Restricted Stock Units
originally subject to the Restricted Stock Unit Award.  In the event
of a dividend or distribution paid in shares of Stock or any other adjustment
made upon a change in the capital structure of the Company as described in
Section 4.2,
appropriate adjustments shall be made in the Participant’s Restricted Stock Unit
Award so that it represents the right to receive upon settlement any and all
new, substituted or additional securities or other property (other than normal
cash dividends) to which the Participant would be entitled by reason of the
shares of Stock issuable upon settlement of the Award, and all such new,
substituted or additional securities or other property shall be immediately
subject to the same Vesting Conditions as are applicable to the
Award.

       

      11.4 Effect of Termination of
Service.  Unless otherwise provided by the Committee in the
grant of a Restricted Stock Unit Award and set forth in the Award Agreement, if
a Participant’s Service terminates for any reason, whether voluntary or
involuntary (including the Participant’s death or disability), then the
Participant shall forfeit to the Company any Restricted Stock Units pursuant to
the Award which remain subject to Vesting Conditions as of the date of the
Participant’s termination of Service.

       

      11.5 Settlement of Restricted Stock Unit
Awards.  The Company shall issue to a Participant on the date
on which Restricted Stock Units subject to the Participant’s Restricted Stock
Unit Award vest or on such other date determined by the Committee, in its
discretion, and set forth in the Award Agreement one (1) share of Stock (and/or
any other new, substituted or additional securities or other property pursuant
to an adjustment described in Section 11.3)
for each Restricted Stock Unit then becoming vested or otherwise to be settled
on such date, subject to the withholding of applicable
taxes.  Notwithstanding the foregoing, if permitted by the Committee
and set forth in the Award Agreement, the Participant may elect in accordance
with terms specified in the Award Agreement to defer receipt of all or any
portion of the shares of Stock or other property otherwise issuable to the
Participant pursuant to this Section.

       

      11.6 Nontransferability of Restricted
Stock Unit Awards.  Prior to the issuance of shares of Stock in
settlement of a Restricted Stock Unit Award, the Award shall not be subject in
any manner to anticipation, alienation, sale, exchange, transfer, assignment,
pledge, encumbrance, or garnishment by creditors of the Participant or the
Participant’s beneficiary, except transfer by will or by the laws of descent and
distribution.  All rights with respect to a Restricted Stock Unit
Award granted to a Participant hereunder shall be exercisable during his or her
lifetime only by such Participant or the Participant’s guardian or legal
representative.

       

      12. Deferred Compensation
Awards.

       

      12.1 Establishment of Deferred
Compensation Award Programs.  This Section 12 shall not be effective unless and
until the Committee determines to establish a program pursuant to this
Section.  The Committee, in its discretion and upon such terms and
conditions as it may determine, may establish one or more programs pursuant to
the Plan under which:

       

      
        
          
              

          

           

        

        
          26

          
            

          

        

        
           

        

      

      (a) Participants
designated by the Committee who are Insiders or otherwise among a select group
of highly compensated Employees may irrevocably elect, prior to a date specified
by the Committee, to reduce such Participant’s compensation otherwise payable in
cash (subject to any minimum or maximum reductions imposed by the Committee) and
to be granted automatically at such time or times as specified by the Committee
one or more Awards of Stock Units with respect to such numbers of shares of
Stock as determined in accordance with the rules of the program established by
the Committee and having such other terms and conditions as established by the
Committee.

       

      (b) Participants
designated by the Committee who are Insiders or otherwise among a select group
of highly compensated Employees may irrevocably elect, prior to a date specified
by the Committee, to be granted automatically an Award of Stock Units with
respect to such number of shares of Stock and upon such other terms and
conditions as established by the Committee in lieu of:

       

      (i) shares of
Stock otherwise issuable to such Participant upon the exercise of an
Option;

       

      (ii) cash or
shares of Stock otherwise issuable to such Participant upon the exercise of an
SAR; or

       

      (iii) cash or
shares of Stock otherwise issuable to such Participant upon the settlement of a
Performance Award or Performance Unit.

       

      12.2 Terms and Conditions of Deferred
Compensation Awards.  Deferred Compensation Awards granted
pursuant to this Section 12 shall be evidenced by Award
Agreements in such form as the Committee shall from time to time
establish.  No such Deferred Compensation Award or purported Deferred
Compensation Award shall be a valid and binding obligation of the Company unless
evidenced by a fully executed Award Agreement.  Award Agreements
evidencing Deferred Compensation Awards may incorporate all or any of the terms
of the Plan by reference and shall comply with and be subject to the following
terms and conditions:

       

      (a) Vesting
Conditions.  Deferred Compensation Awards shall not be subject
to any vesting conditions.

       

      (b) Terms
and Conditions of Stock Units.

       

      (i) Voting Rights, Dividend Equivalent
Rights and Distributions.  Participants shall have no voting
rights with respect to shares of Stock represented by Stock Units until the date
of the issuance of such shares (as evidenced by the appropriate entry on the
books of the Company or of a duly authorized transfer agent of the
Company).  However, a Participant shall be entitled to receive
Dividend Equivalents with respect to the payment of cash dividends on Stock
having a record date prior to the date on which Stock Units held by such
Participant are settled.  Such Dividend Equivalents shall be paid by
crediting the Participant with additional whole and/or fractional Stock Units as
of the date of payment of such cash dividends on Stock.  The method of
determining the number of additional Stock Units to be so credited shall be
specified by the Committee and set forth in the Award Agreement.  Such
additional

       

      
        
          
              

          

           

        

        
          27

          
            

          

        

        
           

        

      

      Stock Units shall be subject to the same terms and conditions and shall
be settled in the same manner and at the same time (or as soon thereafter as
practicable) as the Stock Units originally subject to the Stock Unit
Award.  In the event of a dividend or distribution paid in shares of
Stock or any other adjustment made upon a change in the capital structure of the
Company as described in Section 4.2,
appropriate adjustments shall be made in the Participant’s Stock Unit Award so
that it represents the right to receive upon settlement any and all new,
substituted or additional securities or other property (other than normal cash
dividends) to which the Participant would be entitled by reason of the shares of
Stock issuable upon settlement of the Award.

       

      (ii) Settlement of Stock Unit
Awards.  A Participant electing to receive an Award of Stock
Units pursuant to this Section 12,
shall specify at the time of such election a settlement date with respect to
such Award.  The Company shall issue to the Participant as soon as
practicable following the earlier of the settlement date elected by the
Participant or the date of termination of the Participant’s Service, a number of
whole shares of Stock equal to the number of whole Stock Units subject to the
Stock Unit Award.  Such shares of Stock shall be fully vested, and the
Participant shall not be required to pay any additional consideration (other
than applicable tax withholding) to acquire such shares.  Any
fractional Stock Unit subject to the Stock Unit Award shall be settled by the
Company by payment in cash of an amount equal to the Fair Market Value as of the
payment date of such fractional share.

       

      (iii) Nontransferability of Stock Unit
Awards.  Prior to their settlement in accordance with the
provision of the Plan, no Stock Unit Award shall be subject in any manner to
anticipation, alienation, sale, exchange, transfer, assignment, pledge,
encumbrance, or garnishment by creditors of the Participant or the Participant’s
beneficiary, except transfer by will or by the laws of descent and
distribution.  All rights with respect to a Stock Unit Award granted
to a Participant hereunder shall be exercisable during his or her lifetime only
by such Participant or the Participant’s guardian or legal
representative.

       

      13. Other
Stock-Based Awards.

       

      In
addition to the Awards set forth in Sections 6 through 12 above, the Committee,
in its sole discretion, may carry out the purpose of this Plan by awarding
Stock-Based Awards as it determines to be in the best interests of the Company
and subject to such other terms and conditions as it deems necessary and
appropriate.

       

      14.  Change in
Control.

       

      14.1 Effect of Change in Control on
Options and SARs.  In
the event of a Change in Control, the surviving, continuing, successor, or
purchasing corporation or other business entity or parent thereof, as the case
may be (the “Acquiror”), may, without the consent
of any Participant, either assume or continue the Company’s rights and
obligations under outstanding Options or SARs or substitute for outstanding
Options or SARs substantially equivalent options or SARs covering the Acquiror’s
stock.  Any Options or SARs which are neither assumed or continued by
the Acquiror in connection with the Change in Control nor exercised as of the
Change in Control shall, contingent on the Change in Control, become fully
vested and exercisable immediately prior to the Change in
Control.  Options and SARs which are assumed

       

      
        
          
              

          

           

        

        
          28

          
            

          

        

        
           

        

      

      or
continued in connection with a Change in Control shall be subject to such
additional accelerated vesting and/or exercisability in connection with the
Participant’s subsequent termination of Service as the Board may
determine.

       

      14.2 Effect of Change in Control on Other
Awards.  In
the event of a Change in Control, the Acquiror may, without the consent of any
Participant, either assume or continue the Company’s rights and obligations
under outstanding Awards other than Options or SARs or substitute for such
Awards substantially equivalent Awards covering the Acquiror’s
stock.  Any such Awards which are neither assumed or continued by the
Acquiror in connection with the Change in Control shall, contingent on the
Change in Control, become fully vested and all restrictions shall be released
immediately prior to the Change in Control.  Awards which are assumed
or continued in connection with a Change in Control shall be subject to such
additional accelerated vesting or lapse of restrictions in connection with the
Participant’s subsequent termination of Service as the Board may
determine.

       

      14.3 Nonemployee Director
Awards.  Notwithstanding the foregoing, Nonemployee Director
Awards shall be subject to the terms of Section 7, and not this Section
14.

       

      15. Compliance with Securities
Law.

       

      The grant
of Awards and the issuance of shares of Stock pursuant to any Award shall be
subject to compliance with all applicable requirements of federal, state and
foreign law with respect to such securities and the requirements of any stock
exchange or market system upon which the Stock may then be listed.  In
addition, no Award may be exercised or shares issued pursuant to an Award unless
(a) a registration statement under the Securities Act shall at the time of
such exercise or issuance be in effect with respect to the shares issuable
pursuant to the Award or (b) in the opinion of legal counsel to the
Company, the shares issuable pursuant to the Award may be issued in accordance
with the terms of an applicable exemption from the registration requirements of
the Securities Act.  The inability of the Company to obtain from any
regulatory body having jurisdiction the authority, if any, deemed by the
Company’s legal counsel to be necessary to the lawful issuance and sale of any
shares hereunder shall relieve the Company of any liability in respect of the
failure to issue or sell such shares as to which such requisite authority shall
not have been obtained.  As a condition to issuance of any Stock, the
Company may require the Participant to satisfy any qualifications that may be
necessary or appropriate, to evidence compliance with any applicable law or
regulation and to make any representation or warranty with respect thereto as
may be requested by the Company.

       

      16. Tax
Withholding.

       

      16.1 Tax Withholding in
General.  The Company shall have the right to deduct from any
and all payments made under the Plan, or to require the Participant, through
payroll withholding, cash payment or otherwise, including by means of a Cashless
Exercise or Net Exercise of an Option, to make adequate provision for, the
federal, state, local and foreign taxes, if any, required by law to be withheld
by the Participating Company Group with respect to an Award or the shares
acquired pursuant thereto.  The Company shall have no obligation to
deliver shares of Stock, to release shares of Stock from an escrow established
pursuant to an Award

       

      
        
          
              

          

           

        

        
          29

          
            

          

        

        
           

        

      

      Agreement,
or to make any payment in cash under the Plan until the Participating Company
Group’s tax withholding obligations have been satisfied by the
Participant.

       

      16.2 Withholding in
Shares.  The Company shall have the right, but not the
obligation, to deduct from the shares of Stock issuable to a Participant upon
the exercise or settlement of an Award, or to accept from the Participant the
tender of, a number of whole shares of Stock having a Fair Market Value, as
determined by the Company, equal to all or any part of the tax withholding
obligations of the Participating Company Group.  The Fair Market Value
of any shares of Stock withheld or tendered to satisfy any such tax withholding
obligations shall not exceed the amount determined by the applicable minimum
statutory withholding rates.

       

      17. Amendment
or Termination of Plan.

       

      The Board
or the Committee may amend, suspend or terminate the Plan at any
time.  However, without the approval of the Company’s shareholders,
there shall be (a) no increase in the maximum aggregate number of shares of
Stock that may be issued under the Plan (except by operation of the provisions
of Section 4.2), (b) no change in the class of persons eligible to receive
Incentive Stock Options, and (c)  no other amendment of the Plan that
would require approval of the Company’s shareholders under any applicable law,
regulation or rule.  Notwithstanding the foregoing, only the Board may
amend Section 7.  No amendment, suspension or termination of the
Plan shall affect any then outstanding Award unless expressly provided by the
Board or the Committee.  In any event, no amendment, suspension or
termination of the Plan may adversely affect any then outstanding Award without
the consent of the Participant unless necessary to comply with any applicable
law, regulation or rule.

       

      18. Miscellaneous
Provisions.

       

      18.1 Repurchase Rights.  Shares
issued under the Plan may be subject to one or more repurchase options, or other
conditions and restrictions as determined by the Committee in its discretion at
the time the Award is granted.  The Company shall have the right to
assign at any time any repurchase right it may have, whether or not such right
is then exercisable, to one or more persons as may be selected by the
Company.  Upon request by the Company, each Participant shall execute
any agreement evidencing such transfer restrictions prior to the receipt of
shares of Stock hereunder and shall promptly present to the Company any and all
certificates representing shares of Stock acquired hereunder for the placement
on such certificates of appropriate legends evidencing any such transfer
restrictions.

       

      18.2 Provision of
Information.  Each Participant shall be given access to
information concerning the Company equivalent to that information generally made
available to the Company’s common shareholders.

       

      18.3 Rights as Employee, Consultant or
Director.  No person, even though eligible pursuant to
Section 5,
shall have a right to be selected as a Participant, or, having been so selected,
to be selected again as a Participant.  Nothing in the Plan or any
Award granted under the Plan shall confer on any Participant a right to remain
an Employee, Consultant or Director or interfere with or limit in any way any
right of a Participating Company to terminate the Participant’s Service at any
time.  To the extent that an Employee of a Participating
Company

       

      
        
          
              

          

           

        

        
          30

          
            

          

        

        
           

        

      

      other
than the Company receives an Award under the Plan, that Award shall in no event
be understood or interpreted to mean that the Company is the Employee’s employer
or that the Employee has an employment relationship with the
Company.

       

      18.4 Rights as a
Shareholder.  A Participant shall have no rights as a
shareholder with respect to any shares covered by an Award until the date of the
issuance of such shares (as evidenced by the appropriate entry on the books of
the Company or of a duly authorized transfer agent of the
Company).  No adjustment shall be made for dividends, distributions or
other rights for which the record date is prior to the date such shares are
issued, except as provided in Section 4.2
or another provision of the Plan.

       

      18.5 Fractional
Shares.  The Company shall not be required to issue fractional
shares upon the exercise or settlement of any Award.

       

      18.6 Severability.  If
any one or more of the provisions (or any part thereof) of this Plan shall be
held invalid, illegal or unenforceable in any respect, such provision shall be
modified so as to make it valid, legal and enforceable, and the validity,
legality and enforceability of the remaining provisions (or any part thereof) of
the Plan shall not in any way be affected or impaired
thereby.

       

      18.7 Beneficiary
Designation.  Subject to local laws and procedures, each
Participant may file with the Company a written designation of a beneficiary who
is to receive any benefit under the Plan to which the Participant is entitled in
the event of such Participant’s death before he or she receives any or all of
such benefit.  Each designation will 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 with the Company during
the Participant’s lifetime.  If a married Participant designates a
beneficiary other than the Participant’s spouse, the effectiveness of such
designation may be subject to the consent of the Participant’s
spouse.  If a Participant dies without an effective designation of a
beneficiary who is living at the time of the Participant’s death, the Company
will pay any remaining unpaid benefits to the Participant’s legal
representative.

       

      18.8 Unfunded
Obligation.  Participants shall have the status of general
unsecured creditors of the Company.  Any amounts payable to
Participants pursuant to the Plan shall be unfunded and unsecured obligations
for all purposes, including, without limitation, Title I of the Employee
Retirement Income Security Act of 1974.  No Participating Company
shall be required to segregate any monies from its general funds, or to create
any trusts, or establish any special accounts with respect to such
obligations.  The Company shall retain at all times beneficial
ownership of any investments, including trust investments, which the Company may
make to fulfill its payment obligations hereunder.  Any investments or
the creation or maintenance of any trust or any Participant account shall not
create or constitute a trust or fiduciary relationship between the Committee or
any Participating Company and a Participant, or otherwise create any vested or
beneficial interest in any Participant or the Participant’s creditors in any
assets of any Participating Company.  The Participants shall have no
claim against any Participating Company for any changes in the value of any
assets which may be invested or reinvested by the Company with respect to the
Plan.  Each Participating Company shall be responsible for making
benefit payments pursuant to the Plan on behalf of its Participants or for
reimbursing the Company for

       

      
        
          
              

          

           

        

        
          31

          
            

          

        

        
           

        

      

      the cost
of such payments, as determined by the Company in its sole
discretion.  In the event the respective Participating Company fails
to make such payment or reimbursement, a Participant’s (or other individual’s)
sole recourse shall be against the respective Participating Company, and not
against the Company.  A Participant’s acceptance of an Award pursuant
to the Plan shall constitute agreement with this provision.

       

      18.9 Choice of
Law.  Except to the extent governed by applicable federal law,
the validity, interpretation, construction and performance of the Plan and each
Award Agreement shall be governed by the laws of the State of California,
without regard to its conflict of law rules.

       

      

       

      

       

      

      
        
          
              

          

           

        

        
          32

          
            

          

        

        
           

        

      

      PLAN HISTORY AND NOTES TO
COMPANY

      

      
        	
                December 15,
      2004

                 

              	
                Board
      adopts Plan with a reserve of 12 million shares.

                 

                 

              
	
                April
      20, 2005

                 

              	
                Shareholders
      approve Plan.

                 

                 

              
	
                January
      1, 2006

                 

              	
                Plan
      Effective Date

                 

                 

              
	
                February
      15, 2006

                 

              	
                Change
      in control provisions are amended

                 

                 

              
	
                December
      20, 2006

                 

              	
                Board
      amends Section 7 containing the terms for automatic awards for
      Non-Employee Directors, effective January 1, 2007

                 

                 

              
	
                October
      17, 2007

                 

              	
                Board
      amends Section 7 as follows:

                 

                Define
      “Grant Date” for a particular calendar year as the first business day in
      March of that calendar year.  Previously, the grant date for
      awards in 2006 and 2007 was the first business day in January of that
      particular calendar year.  This amendment becomes effective
      starting with grants for 2008.

                 

                Amend
      the basis for calculating the per share value of stock option awards, so
      it is based on the average closing price of Stock during the months of
      November, December, and January preceding the
      grant.  Previously, the per share value of stock options awards
      for grants in 2006 and 2007 was based on the average closing price of
      Stock during the preceding month of November.  This amendment
      becomes effective starting with grants for 2008.

                 

                Clarify
      the language for settling restricted stock awards upon a Nonemployee
      Director’s retirement from the Board, to indicate that shares credited to
      a Nonemployee Director’s Restricted Stock Unit account may be settled
      after a Nonemployee Director ceases to be a member of the Board of
      Directors following five years of service on the Board.

                 

              

      

      

      

      
        
           

        

        
           

          
            

          

        

        
           

          
              TABLE OF
CONTENTS

            

            Page

            

          

        

      

      
        	
                1.

                 

              	
                Establishment,
      Purpose and Term of Plan

                 

              	
                1

                 

              
	 
      	
                1.1           Establishment

              	
                1

              
	 
      	
                1.2           Purpose

              	
                1

              
	 
      	
                1.3           Term
      of Plan

                 

              	
                1

                 

              
	
                2.

                 

              	
                Definitions
      and Construction

                 

              	
                1

                 

              
	 
      	
                2.1           Definitions

              	
                1

              
	 
      	
                2.2           Construction

                 

              	
                7

                 

              
	
                3.

                 

              	
                Administration

                 

              	
                7

                 

              
	 
      	
                3.1           Administration
      by the Committee

              	
                7

              
	 
      	
                3.2           Authority
      of Officers

              	
                7

              
	 
      	
                3.3           Administration
      with Respect to Insiders

              	
                8

              
	 
      	
                3.4           Committee
      Complying with Section 162(m)

              	
                8

              
	 
      	
                3.5           Powers
      of the Committee

              	
                8

              
	 
      	
                3.6           Option
      or SAR Repricing

              	
                9

              
	 
      	
                3.7           Indemnification

                 

              	
                9

                 

              
	
                4.

                 

              	
                Shares
      Subject to Plan

                 

              	
                10

                 

              
	 
      	
                4.1           Maximum
      Number of Shares Issuable

              	
                10

              
	 
      	
                4.2           Adjustments
      for Changes in Capital Structure

                 

              	
                10

                 

              
	
                5.

                 

              	
                Eligibility
      and Award Limitations

                 

              	
                11

                 

              
	 
      	
                5.1           Persons
      Eligible for Awards

              	
                11

              
	 
      	
                5.2           Participation

              	
                11

              
	 
      	
                5.3           Incentive
      Stock Option Limitations

              	
                11

              
	 
      	
                5.4           Award
      Limits

                 

              	
                12

                 

              
	
                6.

                 

              	
                Terms
      and Conditions of Options

                 

              	
                13

                 

              
	 
      	
                6.1           Exercise
      Price

              	
                13

              
	 
      	
                6.2           Exercisability
      and Term of Options

              	
                13

              
	 
      	
                6.3           Payment
      of Exercise Price

              	
                13

              
	 
      	
                6.4           Effect
      of Termination of Service

              	
                14

              
	 
      	
                6.5           Transferability
      of Options

                 

              	
                14

                 

              
	
                7.

                 

              	
                Terms
      and Conditions of Nonemployee Director Awards

                 

              	
                15

                 

              
	 
      	
                7.1           Automatic
      Grant of Restricted Stock

              	
                15

              
	 
      	
                7.2           Annual
      Election to Receive Nonstatutory Stock Option and RestrictedStock
      Units

              	 
      
	 
      	
                7.3           Grant
      of Nonstatutory Stock Option

              	
                15

              
	 
      	
                7.4           Grant
      of Restricted Stock Unit

              	
                16

              
	 
      	
                7.5           Effect
      of Termination of Service as a Nonemployee Director

              	
                17

              
	 
      	
                7.6           Effect
      of Change in Control on Nonemployee Director Awards

              	
                18

              

      

       

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

      
        	 
      	
                7.7           Right
      to Decline Nonemployee Director Awards

              	
                18

              
	 
      	 
      	 
      
	
                8.

                 

              	
                Terms
      and Conditions of Stock Appreciation Rights

                 

              	
                19

                 

              
	 
      	
                8.1           Types
      of SARs Authorized

              	
                19

              
	 
      	
                8.2           Exercise
      Price

              	
                19

              
	 
      	
                8.3           Exercisability
      and Term of SARs

              	
                19

              
	 
      	
                8.4           Deemed
      Exercise of SARs

              	
                19

              
	 
      	
                8.5           Effect
      of Termination of Service

              	
                20

              
	 
      	
                8.6           Nontransferability
      of SARs

                 

              	
                20

                 

              
	
                9.

                 

              	
                Terms
      and Conditions of Restricted Stock Awards

                 

              	
                20

                 

              
	 
      	
                9.1           Types
      of Restricted Stock Awards Authorized

              	
                20

              
	 
      	
                9.2           Purchase
      Price

              	
                20

              
	 
      	
                9.3           Purchase
      Period

              	
                20

              
	 
      	
                9.4           Vesting
      and Restrictions on Transfer

              	
                20

              
	 
      	
                9.5           Voting
      Rights, Dividends and Distributions

              	
                21

              
	 
      	
                9.6           Effect
      of Termination of Service

              	
                21

              
	 
      	
                9.7           Nontransferability
      of Restricted Stock Award Rights

                 

              	
                21

                 

              
	
                10.

                 

              	
                Terms
      and Conditions of Performance Awards

                 

              	
                21

                 

              
	 
      	
                10.1           Types
      of Performance Awards Authorized

              	
                22

              
	 
      	
                10.2           Initial
      Value of Performance Shares and Performance Units

              	
                22

              
	 
      	
                10.3           Establishment
      of Performance Period, Performance Goals andPerformance Award
      Formula

              	 
      
	 
      	
                10.4           Measurement
      of Performance Goals

              	
                22

              
	 
      	
                10.5           Settlement
      of Performance Awards

              	
                23

              
	 
      	
                10.6           Voting
      Rights, Dividend Equivalent Rights and Distributions

              	
                24

              
	 
      	
                10.7           Effect
      of Termination of Service

              	
                24

              
	 
      	
                10.8           Nontransferability
      of Performance Awards

                 

              	
                25

                 

              
	
                11.

                 

              	
                Terms
      and Conditions of Restricted Stock Unit Awards

                 

              	
                25

                 

              
	 
      	
                11.1           Grant
      of Restricted Stock Unit Awards

              	
                25

              
	 
      	
                11.2           Vesting

              	
                25

              
	 
      	
                11.3           Voting
      Rights, Dividend Equivalent Rights and Distributions

              	
                25

              
	 
      	
                11.4           Effect
      of Termination of Service

              	
                26

              
	 
      	
                11.5           Settlement
      of Restricted Stock Unit Awards

              	
                26

              
	 
      	
                11.6           Nontransferability
      of Restricted Stock Unit Awards

                 

              	
                26

                 

              
	
                12.

                 

              	
                Deferred
      Compensation Awards

                 

              	
                27

                 

              
	 
      	
                12.1           Establishment
      of Deferred Compensation Award Programs

              	
                27

              
	 
      	
                12.2           Terms
      and Conditions of Deferred Compensation Awards

                 

              	
                27

                 

              

      

       

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      
        	
                13.

                 

              	
                Other
      Stock-Based Awards

                 

              	
                28

                 

              
	
                14.

                 

              	
                Change
      in Control

                 

              	
                28

                 

              
	 
      	
                14.1           Effect
      of Change in Control on Options and SARs

              	
                28

              
	 
      	
                14.2           Effect
      of Change in Control on Restricted Stock and Other Awards

              	
                29

              
	 
      	
                14.3           Nonemployee
      Director Awards

                 

              	
                29

                 

              
	
                15.

                 

              	
                Compliance
      with Securities Law

                 

              	
                29

                 

              
	
                16.

                 

              	
                Tax
      Withholding

                 

              	
                29

                 

              
	 
      	
                16.1           Tax
      Withholding in General

              	
                29

              
	 
      	
                16.2           Withholding
      in Shares

                 

              	
                30

                 

              
	
                17.

                 

              	
                Amendment
      or Termination of Plan

                 

              	
                30

                 

              
	
                18.

                 

              	
                Miscellaneous
      Provisions

                 

              	
                30

                 

              
	 
      	
                18.1           Repurchase
      Rights

              	
                30

              
	 
      	
                18.2           Provision
      of Information

              	
                30

              
	 
      	
                18.3           Rights
      as Employee, Consultant or Director

              	
                30

              
	 
      	
                18.4           Rights
      as a Shareholder

              	
                31

              
	 
      	
                18.5           Fractional
      Shares

              	
                31

              
	 
      	
                18.6           Severability

              	
                31

              
	 
      	
                18.7           Beneficiary
      Designation

              	
                31

              
	 
      	
                18.8           Unfunded
      Obligation

              	
                31

              
	 
      	
                18.9           Choice
      of Law

              	
                32

              

      

      

      
        
          
              

          

           

        

        
          iii

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]