Document:

exv10w1

 

EXHIBIT 10.1

ADVISORY AND NON-COMPETITION AGREEMENT AMENDMENT

     This Advisory and Non-Competition Agreement Amendment (this “Amendment”), dated as of June 13,
2007, is by and between Toll Brothers, Inc.(the “Company”) and Bruce E. Toll (“BET”). This
Amendment amends the Advisory and Non-Competition Agreement, dated as of November 1, 2004, by and
between the Company and BET (the “Advisory Agreement”). Capitalized terms used herein and not
defined herein shall have the meanings assigned to such terms in the Advisory Agreement.

     WHEREAS, BET, a founder of the Company, was employed by the Company for many years as its
President, Chief Operating Officer and Secretary and in various capacities with respect to the
Company’s subsidiaries, and, more recently, has been and continues to be retained under the
Advisory Agreement.

     WHEREAS, BET’s Term under the Advisory Agreement expires as of October 31, 2007.

     WHEREAS, the Company desires to have the valuable and special knowledge, expertise and
services of BET available to the Company on a continuing basis after expiration of the Advisory
Agreement, and the Company further desires that BET preserve the Company’s confidences and not
compete with the Company upon termination of his services under the Advisory Agreement, this
Amendment or otherwise.

     WHEREAS, in recognition of BET’s continuing contributions to the Company and in exchange for
BET’s covenants contained in the Advisory Agreement and herein, the Company desires to amend the
Advisory Agreement to extend the Term.

     NOW, therefore, in consideration of the mutual obligations and promises contained herein, and
intending to be legally bound, Company and BET hereby agree as follows:

     1. Effective November 1, 2007, Paragraph 2, “Services; Term, and Title”, will be revised in
its entirety to read:

“2. Services, Term and Title. During the three (3) year
period commencing November 1, 2007 and ending October 31, 2010
(hereinafter “Term”, which shall include any written extensions),
the Company agrees to employ BET as follows: BET agrees to make
himself available to the Company and, in particular, to the Chairman
of the Board and Chief Executive Officer of the Company
(“Chairman”), on a reasonable basis and at reasonable times and
places so as not to interfere with BET’s other business interests,
to consult with the Company and the Chairman concerning matters
within his knowledge or expertise. BET’s services shall, among
other things, include providing advice, assistance, information and
recommendations with regard to suitable investments to be made by
the Company relating to or compatible with the real estate industry.
BET’s title, in connection with his services hereunder, shall be
Special Advisor to the Chairman.

     2. In all other respects, the Advisory Agreement is continued in full force and effect, except
that the reference to the date “June 6, 2000,” in line one of paragraph 12(d) of the Advisory
Agreement shall be corrected to “March 5, 1998.”

 

 

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

     IN WITNESS WHEREOF, with the intention of being legally bound, BET and the Company hereby
execute this Agreement as of the date first set forth above.

	 	 	 	 	 
	 	TOLL BROTHERS, INC.

 	 
	 	By:  	Joel H. Rassman
 	 
	 	 	Name:  	Joel H. Rassman 	 
	 	 	Title:  	Executive Vice President and

Chief Financial Officer 	 
	 
	 	 	 
	 	Bruce E. Toll
 	 
	 	BRUCE E. TOLL 	 
	 	 	 
	 

-2-kl06046_ex10-1.htm

     
      
        

      

    

    Exhibit
      10.1

     

    I.C.
      Isaacs & Company, Inc.

    2007
      Stock Incentive Plan

     

    ARTICLE
      I

    General

     

    1.1           Purpose

     

    The
      I.C.
      Isaacs & Company, Inc. 2007 Stock Incentive Plan (the “Plan”) is designed to
      further the growth and development of I.C. Isaacs & Company, Inc., a
      Delaware corporation (the “Company”), by enabling eligible persons to obtain a
      proprietary interest in the Company (thereby providing such persons with an
      added incentive to continue in the employ or service of the Company, and
      stimulating their efforts in promoting the growth, efficiency and profitability
      of the Company), and affording the Company a means of attracting to its service
      persons of outstanding quality.

     

    1.2           Administration

     

    (a)           Administration
      by Committee; Constitution of Committee.  The Plan shall be
      administered by the Compensation Committee of the Board of Directors of the
      Company (the “Board”) or such other committee or subcommittee as the Board may
      designate or as shall be formed by the abstention or recusal of a non-Qualified
      Member (as defined below) of such committee (the “Committee”).  The
      members of the Committee shall be appointed by, and serve at the pleasure of,
      the Board.  While it is intended that at all times that the Committee
      acts in connection with the Plan, the Committee shall consist solely of
      Qualified Members, the number of whom shall not be less than two, the fact
      that
      the Committee is not so comprised will not invalidate any grant hereunder that
      otherwise satisfies the terms of the Plan.  A “Qualified Member” is
      both a “non-employee director” within the meaning of Rule 16b-3 (“Rule 16b-3”)
      promulgated under the Securities Exchange Act of 1934 (the “1934 Act”) and an
“outside director” within the meaning of section 162(m) of the Internal Revenue
      Code of 1986, as amended (the “Code”).  If the Committee does not
      exist, or for any other reason determined by the Board, the Board may take
      any
      action under the Plan that would otherwise be the responsibility of the
      Committee.

     

    (b)           Committee’s
      Authority.  The Committee shall have the authority to (i) exercise
      all of the powers granted to it under the Plan, (ii) construe, interpret and
      implement the Plan and any award certificates issued under the Plan, (iii)
      prescribe, amend and rescind rules and regulations relating to the Plan,
      including rules governing its own operations, (iv) make all determinations
      necessary or advisable in administering the Plan, (v) correct any defect,
      supply any omission and reconcile any inconsistency in the Plan, and (vi) amend
      the Plan to reflect changes in applicable law.

     

    (c)           Committee
      Action; Delegation.  Actions of the Committee shall be taken by
      the vote of a majority of its members.  Except as otherwise required
      by applicable law, any action may be taken by a written instrument signed by
      a
      majority of the Committee members, and action so taken shall be fully as
      effective as if it had been taken by a vote at a meeting. 

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    Notwithstanding
      the foregoing or any other provision of the Plan, the Committee (or the Board
      acting instead of the Committee), may delegate to one or more officers of the
      Company the authority to designate the individuals (other than such officer(s)),
      among those eligible to receive awards pursuant to the terms of the Plan, who
      will receive rights or options under the Plan and the size of each such grant,
      to the fullest extent permitted by Section 157 of the Delaware General
      Corporation Law (or any successor provision thereto), provided that the
      Committee itself shall grant awards to those individuals who could reasonably
      be
      considered to be subject to the insider trading provisions of section 16 of
      the
      1934 Act or whose awards could reasonably be expected to be subject to the
      deduction limitations of section 162(m) of the Code.

     

    (d)           Determinations
      Final.  The determination of the Committee on all matters relating
      to the Plan or any award under the Plan shall be final, binding and
      conclusive.

     

    (e)           Limit
      on Committee Members’ Liability.  No member of the Committee shall
      be liable for any action or determination made in good faith with respect to
      the
      Plan or any award thereunder.

     

    1.3           Persons
      Eligible for Awards

     

    The
      persons eligible to receive awards under the Plan are those officers, directors
      (whether or not they are employed by the Company), and executive, managerial,
      professional or administrative employees of, and consultants and advisors to,
      the Company, its subsidiaries and its joint ventures (collectively, “key
      persons”) as the Committee in its sole discretion shall select.

     

    1.4           Types
      of Awards Under Plan

     

    Awards
      may be made under the Plan in the form of (a) incentive stock options, (b)
      non-qualified stock options, (c) stock appreciation rights, and (d) restricted
      stock, (e) restricted stock units, (f) unrestricted stock, and
      (g) performance shares, all as more fully set forth in Article
      II.  The term “award” means any of the foregoing.  No
      incentive stock option may be granted to a person who is not an employee of
      the
      Company or one of its subsidiary corporations on the date of grant.

     

    1.5           Shares
      Available for Awards;  Adjustments to
      Awards

     

    (a)           Aggregate
      Number Available; Certificate Legends.  Subject to adjustment as
      provided under Section 1.5 (d)(1) hereof, the total number of shares of common
      stock of the Company (“Common Stock”) with respect to which awards may be
      granted pursuant to the Plan shall not exceed the sum of 600,000
      shares.  Shares issued pursuant to the Plan may be authorized but
      unissued shares of Common Stock, authorized and issued shares of Common Stock
      held in the Company’s treasury or shares of Common Stock acquired by the Company
      for the purposes of the Plan.  The Committee may direct that any stock
      certificate evidencing shares issued pursuant to the Plan shall bear a legend
      setting forth such restrictions on transferability as may apply to such
      shares.

     

    (b)           Individual
      Limits.  Except as provided in this Section 1.5(b), no provision
      of this Plan shall be deemed to limit the number or value of shares otherwise
      available for awards under the Plan with respect to which the Committee may
      make
      awards to any one eligible

     

     

     

     

    
      
         

      

      
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    person.  Subject
      to adjustment as provided in Section 1.5 (d)(i) hereof, the total number of
      shares of Common Stock with respect to which awards may be granted to any one
      employee of the Company or a subsidiary during any one calendar year shall
      not
      exceed 500,000 shares.  Stock options and stock appreciation rights
      granted and subsequently canceled or deemed to be canceled in a calendar year
      shall count against this limit even after their cancellation.

     

    (c)           Certain
      Shares to Become Available Again. The following shares of Common Stock shall
      again become available for awards under the Plan: (i) any shares that are
      subject to an award under the Plan and that remain unissued upon the
      cancellation or termination of such award for any reason whatsoever or upon
      the
      settlement of such award for cash or other medium other than shares of Common
      Stock, and (ii) any shares of restricted stock forfeited pursuant to the terms
      of the Plan or the award, provided that any dividends paid on such shares are
      also forfeited.

     

    (d)           Adjustments
      to Available Shares and Existing Awards Upon Changes in Common Stock or Certain
      Other Events.  Upon certain changes in Common Stock or other
      corporate events, the number of shares of Common Stock available for issuance
      with respect to awards that may be granted under the Plan, and that are the
      subject of existing awards, shall be adjusted or shall be adjustable, as
      follows:

     

    (i)           Shares
      Available for Grants.  In the event of any change in the number of
      shares of Common Stock outstanding by reason of any stock dividend or split,
      reverse stock split, recapitalization, merger, consolidation, combination or
      exchange of shares or similar corporate change, the maximum number of shares
      of
      Common Stock with respect to which the Committee may grant awards under
      paragraph (a) above, and the individual annual limit described in Section 1.5(b)
      hereof, shall be appropriately adjusted by the Committee.  In the
      event of any change in the number of shares of Common Stock outstanding by
      reason of any other event or transaction, the Committee may, but need not,
      make
      such adjustments in the maximum number of shares of Common Stock with respect
      to
      which the Committee may grant awards under Section 1.5(a) hereof, and the
      individual annual limit described in Section 1.5(b) hereof, in each case as
      the
      Committee may deem appropriate in its sole discretion.

     

    (ii)           Outstanding
      Restricted Stock, Restricted Stock Units and Performance
      Shares.  Unless the Committee in its sole discretion otherwise
      determines, any securities or other property (including dividends paid in cash)
      received by a grantee with respect to a share of restricted stock, which has
      not
      yet vested, as a result of any dividend, stock split, reverse stock split,
      recapitalization, merger, consolidation, combination, exchange of shares or
      otherwise, will not vest until such share of restricted stock vests, and shall
      be promptly deposited with the Company or other custodian designated pursuant
      to
      Section 2.7(c) hereof.

     

    The
      Committee shall appropriately adjust outstanding grants of restricted stock
      units or performance shares payable in shares of Common Stock, to reflect any
      dividend, stock split, reverse stock split, recapitalization,
      merger,

     

     

     

     

     

    
      
         

      

      
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    consolidation,
      combination, exchange of shares or similar corporate change to prevent the
      enlargement or dilution of rights of grantees.

     

    (iii)           Outstanding
      Options and Stock Appreciation Rights -- Increase or Decrease in Issued Shares
      Without Consideration.  Subject to any required action by the
      stockholders of the Company, in the event of any increase or decrease in the
      number of issued shares of Common Stock resulting from a subdivision or
      consolidation of shares of Common Stock or the payment of a stock dividend
      (but
      only on the shares of Common Stock), or any other increase or decrease in the
      number of such shares effected without receipt of consideration by the Company,
      the Committee shall proportionally adjust the number of shares of Common Stock
      subject to each outstanding option and stock appreciation right and the exercise
      price-per-share of Common Stock of each such option and stock appreciation
      right.

     

    (iv)           Outstanding
      Options and Stock Appreciation Rights -- Certain Mergers.  Subject
      to any required action by the stockholders of the Company, in the event that
      the
      Company shall be the surviving corporation in any merger or consolidation
      (except a merger or consolidation as a result of which the holders of shares
      of
      Common Stock receive securities of another corporation or cash), each option
      and
      stock appreciation right outstanding on the date of such merger or consolidation
      shall pertain to and apply to the securities which a holder of the number of
      shares of Common Stock subject to such option or stock appreciation right
      immediately prior to such merger or consolidation would have received in such
      merger or consolidation.

     

    (v)           Outstanding
      Options and Stock Appreciation Rights -- Certain Other
      Transactions.  In the event of (1) a dissolution or liquidation of
      the Company, (2) a sale of all or substantially all of the Company’s assets, (3)
      a merger or consolidation involving the Company in which the Company is not
      the
      surviving corporation or (4) a merger or consolidation involving the Company
      in
      which the Company is the surviving corporation but the holders of shares of
      Common Stock receive securities of another corporation and/or other property,
      including cash, the Committee shall, in its sole discretion,
      either:

     

    (A)           cancel,
      effective immediately prior to the occurrence of such event, each option and
      stock appreciation right outstanding immediately prior to such event (whether
      or
      not then exercisable) and, in full consideration of such cancellation, pay
      to
      the grantee to whom such option or stock appreciation right was granted an
      amount in cash, for each share of Common Stock subject to such option or stock
      appreciation right, equal to the excess of (x) the value, as determined by
      the
      Committee in its absolute discretion, of the property (including cash) received
      by the holder of a share of Common Stock as a result of such event over (y)
      the
      exercise price of such option or stock appreciation right; or

     

     

     

    
      
         

      

      
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    (B)           provide
      for the exchange of each option and stock appreciation right outstanding
      immediately prior to such event (whether or not then exercisable) for an option
      on or stock appreciation right with respect to, as appropriate, some or all
      of
      the property (including cash) which a holder of the number of shares of Common
      Stock subject to such option or stock appreciation right immediately prior
      to
      such event would have received as a result of such event and, incident thereto,
      make an equitable adjustment as determined by the Committee in its sole
      discretion in the exercise price of the option or stock appreciation right,
      or
      the number of shares or amount of property (including cash) subject to the
      option or stock appreciation right or, if appropriate, provide for a cash
      payment to the grantee to whom such option or stock appreciation right was
      granted in partial consideration for the exchange of the option or stock
      appreciation right.

     

    (vi)           Outstanding
      Options and Stock Appreciation Rights -- Other Changes.  In the
      event of any change in the capitalization of the Company or a corporate change
      other than those specifically referred to in Section 1.5(d)(iii), (iv) or (v)
      hereof, the Committee may, in its absolute discretion, make such adjustments
      in
      the number and class of shares subject to options and stock appreciation rights
      outstanding on the date on which such change occurs and in the per-share
      exercise price of each such option and stock appreciation right as the Committee
      may consider appropriate to prevent dilution or enlargement of
      rights.  In addition, if and to the extent the Committee determines it
      is appropriate, the Committee may elect to cancel each option and stock
      appreciation right outstanding immediately prior to such event (whether or
      not
      then exercisable), and, in full consideration of such cancellation, pay to
      the
      grantee to whom such option or stock appreciation right was granted an amount
      in
      cash, for each share of Common Stock subject to such option or stock
      appreciation right, equal to the excess of (x) the Fair Market Value of Common
      Stock on the date of such cancellation over (y) the exercise price of such
      option or stock appreciation right.

     

    (vii)           No
      Other Rights.  Except as expressly provided in the Plan, no
      grantee shall have any rights by reason of any subdivision or consolidation
      of
      shares of stock of any class, the payment of any dividend, any increase or
      decrease in the number of shares of stock of any class or any dissolution,
      liquidation, merger or consolidation of the Company or any other
      corporation.  Except as expressly provided in the Plan, no issuance by
      the Company of shares of stock of any class, or securities convertible into
      shares of stock of any class, shall affect, and no adjustment by reason thereof
      shall be made with respect to, the number of shares of Common Stock subject
      to
      an award or the exercise price of any option or stock appreciation
      right.

     

    1.6           Definitions
      of Certain Terms

     

    (a)           The
      “Fair Market Value” of a share of Common Stock on any day shall be the closing
      price on the New York Stock Exchange, American Stock Exchange or Nasdaq

     

     

     

     

     

    
      
         

      

      
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    (whichever
      is applicable) as reported for such day in The Wall Street Journal or, if no
      such price is reported for such day, the average of the high bid and low asked
      price of Common Stock as reported for such day.  If no quotation is
      made for the applicable day, the Fair Market Value of a share of Common Stock
      on
      such day shall be determined in the manner set forth in the preceding sentence
      using quotations for the next preceding day for which there were quotations,
      provided that such quotations shall have been made within the ten (10) business
      days preceding the applicable day.  Notwithstanding the foregoing, if
      deemed necessary or appropriate by the Committee, the Fair Market Value of
      a
      share of Common Stock on any day shall be determined by the
      Committee.  In no event shall the Fair Market Value of any share of
      Common Stock be less than its par value.

     

    (b)           The
      term “incentive stock option” means an option that is intended to qualify for
      special federal income tax treatment pursuant to sections 421 and 422 of the
      Code as now constituted or subsequently amended, or pursuant to a successor
      provision of the Code, and which is so designated in the applicable award
      certificate.  Any option that is not specifically designated as an
      incentive stock option shall under no circumstances be considered an incentive
      stock option.  Any option that is not an incentive stock option is
      referred to herein as a “non-qualified stock option.”

     

    (c)           A
      grantee shall be deemed to have a “termination of employment” upon (i) the date
      the grantee ceases to be employed by, or to provide consulting or advisory
      services for, the Company, any Company subsidiary or Company joint venture,
      or
      any corporation (or any of its subsidiaries) which assumes the grantee’s award
      in a transaction to which section 424(a) of the Code applies; or (ii) the date
      the grantee ceases to be a Board member; provided, however, that in the case
      of
      a grantee (x) who is, at the time of reference, both an employee or consultant
      or advisor and a Board member, or (y) who ceases to be engaged as an employee,
      consultant, advisor or Board member and immediately is engaged in another of
      such relationships with the Company, any Company subsidiary or Company joint
      venture, the grantee shall be deemed to have a “termination of employment” upon
      the later of the dates determined pursuant to clauses (i) and (ii) of this
      Section 1.6(c).  For purposes of clause (i) of this Section
      1.6(c), a grantee who continues his or her employment, consulting or advisory
      relationship with:  (A) a Company subsidiary subsequent to its sale by
      the Company, or (B) a Company joint venture subsequent to the Company’s sale of
      its interests in such joint venture, shall have a termination of employment
      upon
      the date of such sale.  The Committee may in its discretion determine
      whether any leave of absence constitutes a termination of employment for
      purposes of the Plan and the impact, if any, of any such leave of absence on
      awards theretofore made under the Plan.

     

    (d)           In
      relation to the Company, the terms “parent corporation” and “subsidiary
      corporation” shall be defined in accordance with  sections 424(e) and
      (f) of the Code, respectively.

     

    (e)           The
      term “employment” shall be deemed to mean an employee’s employment with, or a
      consultant’s or advisor’s provision of services to, the Company, any Company
      subsidiary or any Company joint venture and each Board member’s service as a
      Board member.

     

     

     

     

    
      
         

      

      
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    (f)           In
      connection with a termination of employment by reason of a dismissal for
“cause”:

     

    (i)           The
      term “cause” shall mean:

     

    (A)           to
      the extent that there is an employment, severance or other agreement governing
      the relationship between the grantee and the Company, a Company subsidiary
      or a
      Company joint venture, which agreement contains a definition of “cause,” cause
      shall consist of those acts or omissions that would constitute “cause” under
      such agreement; and

     

    (B)           to
      the extent that there is no such agreement as provided or in subsection
      (f)(i)(A) above, the grantee’s termination of employment by the Company or an
      affiliate on account of any one or more of the following:

     

    (1)           grantee’s
      willful and intentional repeated failure or refusal, continuing after notice
      that specifically identifies the breach(es) complained of, to perform
      substantially his or her material duties, responsibilities and obligations
      (other than a failure resulting from grantee’s incapacity due to physical or
      mental illness or other reasons beyond the control of grantee), and which
      failure or refusal results in demonstrable direct and material injury to the
      Company;

     

    (2)           any
      willful and intentional act or failure to act involving fraud,
      misrepresentation, theft, embezzlement, dishonesty or moral turpitude
      (collectively, “Fraud”);

     

    (3)           any
      unauthorized use or disclosure by the grantee of confidential information or
      trade secrets of the Company (or any affiliated entity);

     

    (4)           any
      intentional wrongdoing by such person whether by omission or commission, which
      materially adversely affects the business or affairs of the Company (or any
      affiliated entity); and

     

    (5)           conviction
      of (or a plea of nolo contendere to) an offense which is a felony in the
      jurisdiction involved or which is a misdemeanor in the jurisdiction involved
      but
      which involves Fraud.

     

    (ii)           For
      purposes of determining whether cause exists:

     

    (A)           to
      the extent that there is an employment, severance or other agreement governing
      the relationship between the grantee and the Company, a Company subsidiary
      or a
      Company joint venture, which

     

     

     

     

    
      
         

      

      
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    agreement
      contains a definition of “cause” and provides a procedure for the determination
      of whether cause exists, the determination of whether a grantee’s employment is
      (or is deemed to have been) terminated for cause for purposes of the Plan or
      any
      award hereunder shall be made in accordance with such agreement;
      and

     

    (B)           to
      the extent that there is no such agreement as provided for in Section
      1.6(f)(ii)(A) hereof:

     

    (1)           the
      determination of whether a grantee’s employment is (or is deemed to have been)
      terminated for cause for purposes of the Plan or any award hereunder shall
      be
      made by the Committee in its sole discretion;

     

    (2)           any
      rights the Company may have hereunder in respect of the events giving rise
      to
      cause shall be in addition to the rights the Company may have under any other
      agreement with a grantee or at law or in equity;

     

    (3)           if,
      subsequent to a grantee’s voluntary termination of employment or involuntary
      termination of employment without cause, it is discovered that the grantee’s
      employment could have been terminated for cause, the Committee may deem such
      grantee’s employment to have been terminated for cause; and

     

    (4)           a
      grantee’s termination of employment for cause shall be effective as of the date
      of the occurrence of the event giving rise to cause, regardless of when the
      determination of cause is made.

     

    ARTICLE
      II

    Awards
      Under the Plan

     

    2.1           Certificates
      Evidencing Awards

     

    Each
      award granted under the Plan shall be evidenced by a written certificate (an
      “award certificate”) which shall contain such provisions as the Committee may in
      its sole discretion deem necessary or desirable.  By accepting an
      award pursuant to the Plan, a grantee thereby agrees that the award shall be
      subject to all of the terms and provisions of the Plan and the applicable award
      certificate.

     

    2.2           Terms
      of Stock Options and Stock Appreciation Right Awards

     

    (a)           Stock
      Option Grants.  The Committee may grant incentive stock options
      and non-qualified stock options (collectively, “options”) to purchase shares of
      Common Stock from the Company, to such key persons, and in such amounts and
      subject to such vesting and

     

     

     

     

    
      
         

      

      
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    forfeiture
      provisions and other terms and conditions, as the Committee shall determine
      in
      its sole discretion, subject to the provisions of the Plan.

     

    (b)           Stock
      Appreciation Right Grants; Types of Stock Appreciation
      Rights.  The Committee may grant stock appreciation rights to such
      key persons, and in such amounts and subject to such vesting and forfeiture
      provisions and other terms and conditions, as the Committee shall determine
      in
      its sole discretion, subject to the provisions of the Plan.  The terms
      of a stock appreciation right may provide that it shall be automatically
      exercised for a cash payment upon the happening of a specified event that is
      outside the control of the grantee and that it shall not be otherwise
      exercisable.  Stock appreciation rights may be granted in connection
      with all or any part of, or independently of, any option granted under the
      Plan.  A stock appreciation right granted in connection with a
      non-qualified stock option may be granted at or after the time of grant of
      such
      option.  A stock appreciation right granted in connection with an
      incentive stock option may be granted only at the time of grant of such
      option.

     

    (c)           Nature
      of Stock Appreciation Rights.  The grantee of a stock appreciation
      right shall have the right, subject to the terms of the Plan and the applicable
      award certificate, to receive from the Company an amount equal to (i) the excess
      of the Fair Market Value of a share of Common Stock on the date of exercise
      of
      the stock appreciation right over the Fair Market Value of a share of Common
      Stock on the date of grant (or over the option exercise price if the stock
      appreciation right is granted in connection with an option), multiplied by
      (ii)
      the number of shares with respect to which the stock appreciation right is
      exercised.  Payment upon exercise of a stock appreciation right shall
      be in cash or in shares of Common Stock (valued at their Fair Market Value
      on
      the date of exercise of the stock appreciation right) or a combination of cash
      and such shares, all as the Committee shall determine in its sole
      discretion.  Upon the exercise of a stock appreciation right granted
      in connection with an option, the number of shares subject to the option shall
      be reduced by the number of shares with respect to which the stock appreciation
      right is exercised.  Upon the exercise of an option in connection with
      which a stock appreciation right has been granted, the number of shares subject
      to the stock appreciation right shall be reduced by the number of shares with
      respect to which the option is exercised.

     

    (d)           Option
      Exercise Price.  Each award certificate with respect to an option
      shall set forth the amount (the “option exercise price”) payable by the grantee
      to the Company upon exercise of the option evidenced thereby.  Subject
      to the provisions of Section 2.2(g) hereof, the option exercise price per share
      shall be determined by the Committee in its sole discretion; provided, however,
      that the option exercise price shall be at least 100% of the Fair Market Value
      of a share of Common Stock on the date the option is granted, and provided
      further that in no event shall the option exercise price be less than the par
      value of a share of Common Stock.

     

    (e)           Exercise
      Period.  Each award certificate with respect to an option or stock
      appreciation right shall set forth the periods during which the award evidenced
      thereby shall be exercisable, whether in whole or in part.  Such
      periods shall be determined by the Committee in its sole discretion, subject
      to
      the provisions of Section 2.2(g) hereof and the following:

     

     

     

     

    
      
         

      

      
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    (i)           Ten-Year
      Limit.  No stock option (or a stock appreciation right granted in
      connection with an incentive stock option) shall be exercisable more than 10
      years after the date of grant.

     

    (ii)           Beginning
      of Exercise Period.  Unless the applicable award certificate
      otherwise provides, an option or stock appreciation right shall become
      exercisable with respect to a number of whole shares as close as possible to
1⁄3
of the shares subject to such option or stock appreciation right on each of
      the
      first three anniversaries of the date of grant.

     

    (iii)           End
      of Exercise Period.  Unless the applicable award certificate
      otherwise provides, once an installment becomes exercisable, it shall remain
      exercisable until the earlier of (A) the tenth anniversary of the date of grant
      of the award or (B) the expiration, cancellation or termination of the
      award.

     

    (iv)           Timing
      and Extent of Exercise.  Unless the applicable award certificate
      otherwise provides, (A) an option or stock appreciation right may be exercised
      from time to time as to all or part of the shares as to which such award is
      then
      exercisable and (B) a stock appreciation right granted in connection with an
      option may be exercised at any time when, and to the same extent that, the
      related option may be exercised.

     

    (v)           Termination
      of Employment -- Generally.  Except as otherwise provided below, a
      grantee who incurs a termination of employment may exercise any outstanding
      option or stock appreciation right on the following terms and conditions: (A)
      exercise may be made only to the extent that the grantee was entitled to
      exercise the award on the termination of employment date; and (B) exercise
      must
      occur within three months after termination of employment but in no event after
      the original expiration date of the award.

     

    (vi)           Dismissal
      for Cause.  If a grantee incurs a termination of employment as the
      result of a dismissal for cause, all options and stock appreciation rights
      not
      theretofore exercised shall terminate upon the commencement of business on
      the
      date of the grantee’s termination of employment.

     

    (vii)           Disability.  If
      a grantee incurs a termination of employment by reason of a disability (as
      defined below), then any outstanding option or stock appreciation right shall
      be
      exercisable on the following terms and conditions: (A) exercise may be made
      only
      to the extent that the grantee was entitled to exercise the award on the
      termination of employment date; and (B) exercise must occur by the earlier
      of (I) the first anniversary of the grantee’s termination of employment, or (II)
      the original expiration date of the award.  For this purpose
“disability” shall mean: (x) except in connection with an incentive stock
      option, any physical or mental condition that would qualify a grantee for a
      disability benefit under the long-term disability plan maintained by the Company
      or, if there is no such plan, a physical or mental condition that prevents
      the
      grantee from performing the

     

     

     

     

    
      
         

      

      
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    essential
      functions of the grantee’s position (with or without reasonable accommodation)
      for a period of six consecutive months and (y) in connection with an incentive
      stock option, a disability described in section 422(c)(6) of the
      Code.  The existence of a disability shall be determined by the
      Committee in its sole discretion.

     

    (viii)                      Death.

     

    (A)           Termination
      of Employment as a Result of Grantee’s Death.  If a grantee incurs
      a termination of employment as the result of death, then any outstanding option
      or stock appreciation right shall be exercisable on the following terms and
      conditions: (I) exercise may be made only to the extent that the grantee was
      entitled to exercise the award on the date of death; and (II) exercise must
      occur by the earlier of (1) the first anniversary of the grantee’s termination
      of employment, or (2) the original expiration date of the award.

     

    (B)           Death
      Subsequent to a Termination of Employment.  If a grantee dies
      subsequent to incurring a termination of employment but prior to the expiration
      of the exercise period with respect to a stock option or a stock appreciation
      right, then the award shall remain exercisable until the earlier to occur of
      (I)
      the first anniversary of the grantee’s date of death or (II) the original
      expiration date of the award.

     

    (C)           Restrictions
      on Exercise Following Death.  Any such exercise of an award
      following a grantee’s death shall be made only by the grantee’s executor or
      administrator or other duly appointed representative reasonably acceptable
      to
      the Committee, unless the grantee’s will specifically disposes of such award, in
      which case such exercise shall be made only by the recipient of such specific
      disposition.  If a grantee’s personal representative or the recipient
      of a specific disposition under the grantee’s will shall be entitled to exercise
      any award pursuant to the preceding sentence, such representative or recipient
      shall be bound by all the terms and conditions of the Plan and the applicable
      award certificate which would have applied to the grantee.

     

    (ix)           Special
      Rules for Incentive Stock Options.  No option that remains
      exercisable for more than three months following a grantee’s termination of
      employment for any reason other than death (including death within three months
      after the termination of employment or within one year after a termination
      due
      to disability) or disability, or for more than one year following a grantee’s
      termination of employment as the result of disability, may be treated as an
      incentive stock option.

     

    (x)           Committee
      Discretion.  The Committee, in its sole discretion, in the
      applicable award certificate, may waive or modify the application of one or
      more
      of the provisions of Sections 2.2(e)(v) through and including (viii)
      hereof.

     

     

     

    
      
         

      

      
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    (f)           Incentive
      Stock Options: $100,000 Limitation.  To the extent that the
      aggregate Fair Market Value (determined as of the time the option is granted)
      of
      the stock with respect to which incentive stock options are first exercisable
      by
      any employee during any calendar year shall exceed $100,000, or such higher
      amount as may be permitted from time to time under section 422 of the Code,
      such
      options shall be treated as non-qualified stock options.

     

    (g)           Incentive
      Stock Options: 10% Owners.  Notwithstanding the foregoing
      provisions of this Section 2.2, an incentive stock option may not be granted
      under the Plan to an individual who, at the time the option is granted, owns
      stock possessing more than 10% of the total combined voting power of all classes
      of stock of his or her employer or of its parent or subsidiary (as such
      ownership may be determined for purposes of section 422(b)(6) of the Code)
      unless (i) at the time such incentive stock option is granted the option
      exercise price is at least 110% of the Fair Market Value of the shares subject
      thereto and (ii) the incentive stock option by its terms is not exercisable
      after the expiration of 5 years from the date it is granted.

     

    2.3           Exercise
      of Options and Stock Appreciation Rights

     

    Subject
      to the other provisions of this Article II, each option or stock appreciation
      right granted under the Plan shall be exercisable as follows:

     

    (a)           Notice
      of Exercise.  An option or stock appreciation right shall be
      exercised by the filing of a written notice with the Company or the Company’s
      designated exchange agent (the “exchange agent”), on such form and in such
      manner as the Committee shall prescribe.

     

    (b)           Payment
      of Exercise Price.  Any written notice of exercise of an option
      shall be accompanied by payment for the shares being purchased.  Such
      payment shall be made: (i) by certified or official bank check (or the
      equivalent thereof acceptable to the Company or its exchange agent) for the
      full
      option exercise price; or (ii) with the consent of the Committee, by delivery
      of
      shares of Common Stock owned by the grantee (whether acquired by option exercise
      or otherwise, provided that if such shares were acquired pursuant to the
      exercise of a stock option, they were acquired at least six months prior to
      the
      option exercise date or such other period as the Committee may from time to
      time
      determine in its sole discretion) having a Fair Market Value (determined as
      of
      the exercise date) equal to all or part of the option exercise price and a
      certified or official bank check (or the equivalent thereof acceptable to the
      Company or its exchange agent) for any remaining portion of the full option
      exercise price; or (iii) at the sole discretion of the Committee and to the
      extent permitted by law, by such other provision, consistent with the terms
      of
      the Plan, as the Committee may from time to time prescribe.

     

    (c)           Delivery
      of Certificates Upon Exercise.  Promptly after receiving payment
      of the full option exercise price, or after receiving notice of the exercise
      of
      a stock appreciation right, the Company or its exchange agent shall deliver
      to
      the grantee or to such other person as may then have the right to exercise
      the
      award, certificate or certificates for the shares of Common Stock for which
      the
      award has been exercised.  If the method of payment employed upon
      option exercise so requires, and if applicable law permits, a grantee may direct
      the Company, or its exchange agent, as the case may be, to deliver the stock
      certificate(s) to the grantee’s stockbroker.

     

     

     

    
      
         

      

      
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    (d)           No
      Stockholder Rights.  No grantee of an option or stock appreciation
      right (or other person having the right to exercise such award) shall have
      any
      of the rights of a stockholder of the Company with respect to shares subject
      to
      such award until the issuance of a stock certificate to such person for such
      shares.  Except as otherwise provided in Section 1.5(d) hereof, no
      adjustment shall be made for dividends, distributions or other rights (whether
      ordinary or extraordinary, and whether in cash, securities or other property)
      for which the record date is prior to the date such stock certificate is
      issued.

     

    2.4           Compensation
      in Lieu of Exercise of an Option

     

    Upon
      written application of the grantee of an option, the Committee in its sole
      discretion may determine to substitute, for the exercise of such option,
      compensation to the grantee not in excess of the difference between the option
      exercise price and the Fair Market Value of the shares covered by such written
      application on the date of such application.  Such compensation shall
      be in shares of Common Stock, and the payment thereof may be subject to
      conditions, all as the Committee shall determine in its sole
      discretion.  In the event compensation is substituted pursuant to this
      Section 2.4 for the exercise, in whole or in part, of an option, the number
      of
      shares subject to the option shall be reduced by the number of shares for which
      such compensation is substituted.

     

    2.5           Transferability
      of Options and Stock Appreciation Rights

     

    Except
      as
      otherwise provided in an applicable award certificate evidencing an option
      or
      stock appreciation right, during the lifetime of a grantee, each option or
      stock
      appreciation right granted to a grantee shall be exercisable only by the grantee
      and no option or stock appreciation right shall be assignable or transferable
      otherwise than by will or by the laws of descent and
      distribution.  The Committee may, in any applicable award certificate
      evidencing an option (other than an incentive stock option to the extent
      inconsistent with the requirements of section 422 of the Code applicable to
      incentive stock options), permit a grantee to transfer all or some of the
      options to (A) the grantee’s spouse, children or grandchildren (“immediate
      family members”), (B) a trust or trusts for the exclusive benefit of such
      immediate family members, or (C) other parties approved by the Committee in
      its
      sole discretion.  Following any such transfer, any transferred options
      shall continue to be subject to the same terms and conditions as were applicable
      immediately prior to the transfer.

     

    2.6           Grant
      of Restricted Stock

     

    (a)           Restricted
      Stock Grants.  The Committee may grant restricted shares of Common
      Stock to such key persons, in such amounts, and subject to such vesting and
      forfeiture provisions and other terms and conditions as the Committee shall
      determine in its sole discretion, subject to the provisions of the
      Plan.  Restricted stock awards may be made independently of or in
      connection with any other award under the Plan.  A grantee of a
      restricted stock award shall have no rights with respect to such award unless
      such grantee accepts the award within such period as the Committee shall specify
      by accepting delivery of an award certificate in such form as the Committee
      shall determine in its sole discretion and, in the event the restricted shares
      are newly issued by the Company, makes payment to the Company or its exchange
      agent in an amount at least equal to the par value of the shares as required
      by
      the Committee and in

     

     

     

     

    
      
         

      

      
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    accordance
      with the General Corporation Law of the State of Delaware (the “Delaware
      Corporation Law”).

     

    (b)           Issuance
      of Stock Certificate(s).  Promptly after a grantee accepts a
      restricted stock award, the Company or its exchange agent shall issue to the
      grantee a stock certificate or stock certificates for the shares of Common
      Stock
      covered by the award or shall establish an account evidencing ownership of
      the
      stock in uncertificated form.  Upon the issuance of such stock
      certificate(s) or establishment of such account, the grantee shall have the
      rights of a stockholder with respect to the restricted stock, subject to: (i)
      the nontransferability restrictions and forfeiture provision described in
      Sections 2.6(d) and (e) hereof; (ii) in the Committee’s sole discretion, a
      requirement that any dividends paid on such shares shall be held in escrow
      until
      all restrictions on such shares have lapsed; and (iii) any other restrictions
      and conditions determined by the Committee in its sole discretion and contained
      in the applicable award certificate.

     

    (c)           Custody
      of Stock Certificate(s).  Unless the Committee shall otherwise
      determine in its sole discretion, any stock certificates issued evidencing
      shares of restricted stock shall remain in the possession of the Company until
      such shares are free of any restrictions specified in the applicable award
      certificate.  The Committee may direct that such stock certificate(s)
      bear a legend setting forth the applicable restrictions on
      transferability.

     

    (d)           Nontransferability.  Shares
      of restricted stock may not be sold, assigned, transferred, pledged or otherwise
      encumbered or disposed of except as otherwise specifically provided in the
      Plan
      or the applicable award certificate.  The Committee at the time of
      grant shall specify the date or dates (which may depend upon or be related
      to a
      period of continued employment with the Company, the attainment of performance
      goals or other conditions or a combination of such conditions) on which the
      nontransferability of the restricted stock shall lapse.

     

    (e)           Forfeiture
      Upon Termination of Employment.  Except as may otherwise be
      provided by the Committee in its sole discretion at any time prior to a
      grantee’s termination of employment, a grantee’s termination of employment for
      any reason (including death) shall cause the immediate forfeiture of all shares
      of restricted stock that have not yet vested as of the date of such termination
      of employment.  Unless the Board or the Committee determines otherwise
      in its sole discretion, all dividends paid on such shares also shall be
      forfeited, whether by termination of any escrow arrangement under which such
      dividends are held, by the grantee’s repayment of dividends received directly,
      or otherwise.

     

    2.7           Grant
      of Restricted Stock Units

     

    (a)           Restricted
      Stock Unit Grants. The Committee may grant restricted stock units to such
      key persons, in such amounts and subject to such terms and conditions as the
      Committee shall determine in its sole discretion, subject to the provisions
      of
      the Plan.  Restricted stock units may be awarded independently of or
      in connection with any other award under the Plan.  A grantee of a
      restricted stock unit award shall have no rights with respect to such award
      unless such grantee accepts the award within such period as the Committee shall
      specify by accepting delivery of an award certificate in such form as the
      Committee shall determine in its

     

     

     

    
      
         

      

      
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    sole
      discretion.  A grant of a restricted stock unit entitles the grantee
      to receive a share of Common Stock on the date that such restricted stock unit
      vests.

     

    (b)           Vesting.  Restricted
      stock units may not be sold, assigned, transferred, pledged or otherwise
      encumbered or disposed of except as otherwise specifically provided in the
      Plan
      or the applicable award certificate.  The Committee at the time of
      grant shall specify the date or dates (which may depend upon or be related
      to a
      period of continued employment with the Company, the attainment of performance
      goals or other conditions or a combination of such conditions) on which the
      restricted stock units shall vest.

     

    (c)           Consequence
      of Termination of Employment.  Except as may otherwise be provided
      by the Committee in its sole discretion at any time prior to a grantee’s
      termination of employment, a grantee’s termination of employment for any reason
      (including death) shall cause the immediate forfeiture of all restricted stock
      units that have not yet vested as of the date of such termination of
      employment.

     

    2.8           Grant
      of Unrestricted Stock

     

    The
      Committee may grant (or sell at a purchase price at least equal to par value)
      shares of Common Stock free of restrictions under the Plan, to such key persons
      and in such amounts and subject to such forfeiture provisions as the Committee
      shall determine in its sole discretion.  Shares may be thus granted or
      sold in respect of past services or other valid consideration.

     

    2.9           Grant
      of Performance Shares

     

    (a)           Performance
      Share Grants.  The Committee may grant performance share awards to
      such key persons, and in such amounts and subject to such vesting and forfeiture
      provisions and other terms and conditions, as the Committee shall determine
      in
      its sole discretion, subject to the provisions of the Plan.  Such an
      award shall entitle the grantee to acquire shares of Common Stock, or to be
      paid
      the value thereof in cash, as the Committee shall determine in its sole
      discretion, if specified performance goals are met.  Performance
      shares may be awarded independently of, or in connection with, any other award
      under the Plan.  A grantee shall have no rights with respect to a
      performance share award unless such grantee accepts the award by accepting
      delivery of an award certificate at such time and in such form as the Committee
      shall determine in its sole discretion.

     

    (b)           Stockholder
      Rights.  The grantee of a performance share award will have the
      rights of a stockholder only as to shares for which a stock certificate has
      been
      issued pursuant to the award or for which an account has been established
      evidencing ownership of the stock in uncertificated form and not with respect
      to
      any other shares subject to the award.

     

    (c)           Consequence
      of Termination of Employment.  Except as may otherwise be provided
      by the Committee in its sole discretion, at any time prior to a grantee’s
      termination of employment, the rights of a grantee of a performance share award
      shall automatically terminate upon the grantee’s termination of employment for
      any reason (including death).

     

    (d)           Payment
      of Award.  The grantee of a performance share award shall receive
      the shares of Common Stock or cash payment subject to such award as soon
      as

     

     

     

     

    
      
         

      

      
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    practicable
      following the satisfaction of the applicable performance goals, but in no event
      later than 2-1/2 months after the year in which the performance goals are
      satisfied.

     

    (e)           Tandem
      Grants; Effect on Exercise.  Except as otherwise specified by the
      Committee in its sole discretion, (i) a performance share award granted in
      tandem with an option may be exercised only while the option is exercisable,
      (ii) the exercise of a performance share award granted in tandem with any other
      award shall reduce the number of shares subject to such other award in the
      manner specified in the applicable award certificate, and (iii) the exercise
      of
      any award granted in tandem with a performance share award shall reduce the
      number of shares subject to the performance share award in the manner specified
      in the applicable award certificate.

     

    (f)           Nontransferability.  Performance
      shares may not be sold, assigned, transferred, pledged or otherwise encumbered
      or disposed of except as otherwise specifically provided in the Plan or the
      applicable award certificate.

     

    2.10           Right
      of Recapture

     

    If
      at any
      time after the date on which a grantee has been granted or becomes vested in
      an
      award pursuant to the achievement of performance goals, the Committee determines
      that the earlier determination as to the achievement of the performance goals
      was based on incorrect data and that in fact the performance goals had not
      been
      achieved or had been achieved to a lesser extent than originally determined,
      then (i) any award or portion of an award granted based on such incorrect
      determination shall be forfeited, (ii) any award or portion of an award that
      became vested based on such incorrect determination shall be deemed to be not
      vested, and (iii) any amounts paid to the grantee based on such incorrect
      determination shall be paid by the grantee to the Company upon notice from
      the
      Company.

     

    ARTICLE
      III

    Miscellaneous

     

    3.1           Amendment
      of the Plan; Modification of awards

     

    (a)           Amendment
      of the Plan.  The Board may from time to time suspend,
      discontinue, revise or amend the Plan in any respect whatsoever, except that
      no
      such amendment shall materially impair any rights or materially increase any
      obligations under any award theretofore made under the Plan without the consent
      of the grantee (or, upon the grantee’s death, the person having the right to
      exercise the award).  For purposes of this Section 3.1, any action of
      the Board or the Committee that in any way alters or affects the tax treatment
      of any award or that in the sole discretion of the Board is necessary to prevent
      an award from being subject to tax under Section 409A of the Code shall not
      be
      considered to materially impair any rights of any grantee. The Board shall
      determine, in its sole discretion, whether to submit any amendment of the Plan
      to stockholders for approval; in making such determination it is expected that
      the Board will take into account the requirements of any exchange or
      inter-dealer quotation system on which the Common Stock of the Company is
      listed, the prerequisites for favorable tax treatment to the Company and
      grantees of awards made under the Plan, and such other considerations as the
      Board deems relevant.

     

     

     

    
      
         

      

      
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    (b)           Modification
      of Awards.  The Committee in its sole discretion may cancel any
      award under the Plan.  The Committee in its sole discretion also may
      amend any outstanding award certificate, including, without limitation, by
      amendment which would: (i) accelerate the time or times at which the award
      becomes unrestricted or vested or may be exercised; (ii) waive or amend any
      goals, restrictions or conditions set forth in the award certificate; or (iii)
      waive or amend any applicable provision of the Plan or award certificate with
      respect to the termination of the award upon termination of employment, provided
      however, that no such amendment may lower the exercise price of an outstanding
      option or stock appreciation right.  However, any such cancellation or
      amendment (other than an amendment pursuant to Section 1.5(d) hereof) that
      materially impairs the rights or materially increases the obligations of a
      grantee under an outstanding award shall be made only with the consent of the
      grantee (or, upon the grantee’s death, the person having the right to exercise
      the award).

     

    3.2           Consent
      Requirement

     

    (a)           No
      Plan Action Without Required Consent.  If the Committee shall at
      any time determine that any consent (as hereinafter defined) is necessary or
      desirable as a condition of, or in connection with, the granting of any award
      under the Plan, the issuance or purchase of shares or exercise of other rights
      hereunder, or the taking of any other action hereunder (each such action being
      hereinafter referred to as a “Plan action”), then such Plan action shall not be
      taken or permitted, in whole or in part, unless and until such consent shall
      have been effected or obtained to the full satisfaction of the
      Committee.

     

    (b)           Consent
      Defined.  The term “consent” as used herein with respect to any
      Plan action means (i) any and all listings, registrations or qualifications
      in
      respect thereof upon any securities exchange or under any federal, state or
      local law, rule or regulation; (ii) any and all written agreements and
      representations by the grantee with respect to the disposition of shares, or
      with respect to any other matter, which the Committee shall in its sole
      discretion deem necessary or desirable to comply with the terms of any such
      listing, registration or qualification or to obtain an exemption from the
      requirement that any such listing, qualification or registration be made; and
      (iii) any and all consents, clearances and approvals in respect of a Plan
      action by any governmental or other regulatory bodies.

     

    3.3           Nonassignability

     

    Except
      as
      expressly provided herein or by the terms of an award certificate: (a) no award
      or right granted to any person under the Plan or under any award certificate
      shall be assignable or transferable other than by will or by the laws of descent
      and distribution; and (b) all rights granted under the Plan or any award
      certificate shall be exercisable during the life of the grantee only by the
      grantee or the grantee’s legal representative.

     

    3.4           Requirement
      of Notification of Election Under Section 83(b) of the
      Code

     

    If
      any
      grantee shall, in connection with the acquisition of shares of Common Stock
      under the Plan, make the election permitted under section 83(b) of the Code
      (i.e., an election to include in gross income in the year of transfer the
      amounts specified in section 83(b)), such grantee shall notify the Company
      of
      such election within 10 days of filing notice of the election with
      the

     

     

     

     

    
      
         

      

      
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    Internal
      Revenue Service, in addition to any filing and notification required pursuant
      to
      regulations issued under the authority of Code section 83(b).

     

    3.5           Requirement
      of Notification Upon Disqualifying Disposition Under Section 421(b) of the
      Code

     

    Each
      grantee of an incentive stock option shall notify the Company of any disposition
      of shares of Common Stock issued pursuant to the exercise of such option under
      the circumstances described in section 421(b) of the Code (relating to certain
      disqualifying dispositions), within 10 days of such disposition.

     

    3.6           Withholding
      Taxes

     

    (a)           With
      Respect to Cash Payments.  Whenever cash is to be paid pursuant to
      an award under the Plan, the Company shall be entitled to deduct therefrom
      an
      amount sufficient in its opinion to satisfy all federal, state and other
      governmental tax withholding requirements related to such payment.

     

    (b)           With
      Respect to Delivery of Common Stock.  Whenever shares of Common
      Stock are to be delivered pursuant to an award under the Plan, the Company
      shall
      be entitled to require as a condition of delivery that the grantee remit to
      the
      Company an amount sufficient in the opinion of the Company to satisfy all
      federal, state and other governmental tax withholding requirements related
      thereto.  With the approval of the Committee, which the Committee
      shall have sole discretion whether or not to give, the grantee may satisfy
      the
      foregoing condition by electing to have the Company withhold from delivery
      shares having a value equal to the amount of tax to be withheld.  Such
      shares shall be valued at their Fair Market Value as of the date on which the
      amount of tax to be withheld is determined.  Fractional share amounts
      shall be settled in cash.  Such a withholding election may be made
      with respect to all or any portion of the shares to be delivered pursuant to
      an
      award.

     

    3.7           Limitations
      Imposed by Section 162(m)

     

    Notwithstanding
      any other provision of the Plan, if and to the extent that the Committee
      reasonably determines the Company’s federal tax deduction in respect of an award
      may be limited as a result of section 162(m) of the Code, the Committee in
      its
      sole discretion may take the following actions:

     

    (i)           With
      respect to options or stock appreciation rights, the Committee may delay the
      exercise or payment, as the case may be, in respect of such options or stock
      appreciation rights until the earlier to occur of (A) 30 days following the
      grantee’s termination of employment, but in any event during the same calendar
      year as such termination of employment; and (B) the date, as reasonably
      determined by the Company, that the Company’s federal tax deduction in respect
      of the award will not be limited by reason of said section 162(m), or such
      other
      date as may be specified under final regulations promulgated pursuant to section
      409A of the Code.  In the event that a grantee exercises an option or
      stock appreciation right at a time when the grantee is a 162(m) covered
      employee, and the Committee determines to delay the exercise or payment, as
      the
      case may be, in

     

     

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

     

     

    respect
      of any such award, the Committee shall credit cash or, in the case of an amount
      payable in Common Stock, the Fair Market Value of the Common Stock as of the
      date of such exercise, payable to the grantee to a book account.  The
      grantee shall have no rights in respect of such book account and the amount
      credited thereto shall not be transferable by the grantee other than by will
      or
      the laws of descent and distribution.  The Committee may in its sole
      discretion credit additional amounts to such book account as it may determine
      in
      its sole discretion.  Any book account created hereunder shall
      represent only an unfunded, unsecured promise by the Company to pay the amount
      credited thereto to the grantee in the future.

     

    (ii)           With
      respect to restricted stock, the Committee may in its sole discretion require
      the grantee to surrender to the Committee any award certificates with respect
      to
      such awards, in order to cancel the awards of such restricted
      stock.  In exchange for such cancellation, the Committee shall credit
      to a book account a cash amount equal to the Fair Market Value of the shares
      of
      Common Stock subject to such awards as of the date of such
      cancellation.  The amount credited to the book account shall be paid
      to the grantee on the earlier to occur of (A) 30 days following the grantee’s
      termination of employment, but in any event during the same calendar year as
      such termination of employment; and (B) the date, as reasonably determined
      by
      the Company, that the Company’s federal tax deduction in respect of the award
      will not be limited by reason of said section 162(m), or such other date as
      may
      be specified under final regulations promulgated pursuant to section 409A of
      the
      Code.  The grantee shall have no rights in respect of such book
      account and the amount credited thereto shall not be transferable by the grantee
      other than by will or the laws of descent and distribution.  The
      Committee may credit additional amounts to such book account as it may determine
      in its sole discretion.  Any book account created hereunder shall
      represent only an unfunded, unsecured promise by the Company to pay the amount
      credited thereto to the grantee in the future.

     

    3.8           Right
      of Discharge Reserved

     

    Nothing
      in the Plan or in any award certificate shall confer upon any grantee the right
      to continue employment with the Company or affect any right which the Company
      may have to terminate such employment.

     

    3.9           Nature
      of Payments

     

    (a)           Consideration
      for Services Performed.  Any and all grants of awards and
      issuances of shares of Common Stock under the Plan shall be in consideration
      of
      services performed for the Company by the grantee.

     

    (b)           Not
      Taken into Account for Benefits.  All such grants and issuances
      shall constitute a special incentive payment to the grantee and shall not be
      taken into account in computing the amount of salary or compensation of the
      grantee for the purpose of determining any benefits under any pension,
      retirement, profit-sharing, bonus, life insurance or other benefit

     

     

     

     

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

     

     

     

    plan
      of
      the Company or under any agreement between the Company and the grantee, unless
      such plan or agreement specifically otherwise provides.

     

    3.10           Non-Uniform
      Determinations

     

    The
      Committee’s determinations under the Plan need not be uniform and may be made by
      it selectively among persons who receive, or who are eligible to receive, awards
      under the Plan (whether or not such persons are similarly
      situated).  Without limiting the generality of the foregoing, the
      Committee shall be entitled, among other things, to make non-uniform and
      selective determinations, and to enter into non-uniform and selective award
      certificates, as to (a) the persons to receive awards under the Plan, (b) the
      terms and provisions of awards under the Plan, and (c) the treatment of leaves
      of absence pursuant to Section 1.6(c) hereof.

     

    3.11           Other
      Payments or Awards

     

    Nothing
      contained in the Plan shall be deemed in any way to limit or restrict the
      Company from making any award or payment to any person under any other plan,
      arrangement or understanding, whether now existing or hereafter in
      effect.

     

    3.12           Headings

     

    Any
      section, subsection, paragraph or other subdivision headings contained herein
      are for the purpose of convenience only and are not intended to expand, limit
      or
      otherwise define the contents, meaning or interpretation of any
      thereof.

     

    3.13           Effective
      Date and Term of Plan

     

    (a)           Adoption.  The
      Plan was adopted by the Board on June 14, 2007.

     

    (b)           Termination
      of Plan.  Unless sooner terminated by the Board, the provisions of
      the Plan with respect to the grant of any award pursuant to which shares of
      Common Stock will be granted shall terminate on the first anniversary of the
      adoption of the Plan by the Board, and no such awards shall thereafter be made
      under the Plan.  All awards made under the Plan prior to its
      termination shall remain in effect until such awards have been satisfied or
      terminated in accordance with the terms and provisions of the Plan and the
      applicable award certificates.

     

    3.14           Restriction
      on Issuance of Stock Pursuant to Awards

     

    The
      Company shall not permit any shares of Common Stock to be issued pursuant to
      awards granted under the Plan unless such shares of Common Stock are fully
      paid
      and non-assessable, within the meaning of Section 152 of the Delaware
      Corporation Law, except as otherwise permitted by Section 153(c) of the Delaware
      Corporation Law.

     

    3.15           Governing
      Law

     

    Except
      to
      the extent preempted by any applicable federal law, the Plan will be construed
      and administered in accordance with the laws of the State of Delaware, without
      giving effect to principles of conflict of laws.

     

     

     

     

    20

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