Document:

Exhibit
4.2

    

    WARRANT
TO PURCHASE COMMON STOCK

    

    OF

    

    STEELCLOUD,
INC.

    

    This is to Certify That, FOR VALUE
RECEIVED, _____, or assigns thereof (“Holder”), is entitled
to purchase, subject to the provisions of this Warrant, from SteelCloud, Inc., a
Virginia corporation (“Company”), _____
fully paid, validly issued and non-assessable shares of Common Stock of the
Company (“Common
Stock”) at a price equal to $ _____ per share (“Exercise Price”) at
any time or from time to time from the date hereof until  _____ (the
“Exercise
Period”), subject to adjustment as set forth herein.  The
number of shares of Common Stock to be received upon the exercise of this
Warrant and the price to be paid for each share of Common Stock may be adjusted
from time to time as hereinafter set forth.  The shares of Common
Stock deliverable upon such exercise, and as adjusted from time to time, are
hereinafter sometimes referred to as “Warrant
Shares”.

    

    (a)           EXERCISE
OF WARRANT; CANCELLATION OF WARRANT.

    

    This
Warrant may be exercised in whole and in part at any time or from time to time
during the Exercise Period, provided, however, that (i) if such day is a day on
which banking institutions in the State of Virginia are authorized by law to
close, then on the next succeeding day which shall not be such a day, and (ii)
in the event of any merger, consolidation or sale of substantially all the
assets of the Company as an entirety, resulting in any distribution to the
Company’s stockholders, prior to the last day of the Exercise Period, the Holder
shall have the right to exercise this Warrant commencing at such time through
the last day of the Exercise Period into the kind and amount of shares of stock
and other securities and property (including cash) receivable by a holder of the
number of shares of Common Stock into which this Warrant might have been
exercisable immediately prior thereto.  This Warrant may be exercised
by presentation and surrender hereof to the Company at its principal office, or
at the office of its stock transfer agent, if any, with the Purchase Form
annexed hereto duly executed and accompanied by payment of the Exercise Price
for the number of Warrant Shares specified in such form.  As soon as
practicable after each such exercise of the Warrants, but not later than even
(7) days from the date of such exercise, the Company shall issue and deliver to
the Holder a certificate or certificate for the Warrant Shares issuable upon
such exercise, registered in the name of the Holder or its
designee.  If this Warrant should be exercised in part only, the
Company shall, upon surrender of this Warrant for cancellation, execute and
deliver a new Warrant evidencing the rights of the Holder thereof to purchase
the balance of the Warrant Shares purchasable thereunder.  Upon
receipt by the Company of this Warrant at its office, or by the stock transfer
agent of the Company at its office, in proper form for exercise, the Holder
shall be deemed to be the holder of record of the shares of Common Stock
issuable upon such exercise, notwithstanding that the stock transfer books of
the Company shall then be closed or that certificates representing such shares
of Common Stock shall not then be physically delivered to the
Holder.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    (b)           RESERVATION
OF SHARES.  The Company shall at all times reserve for issuance and/or
delivery upon exercise of this Warrant such number of shares of its Common Stock
as shall be required for issuance and delivery upon exercise of the
Warrants.

    

    (c)           FRACTIONAL
SHARES.  No fractional shares or script representing fractional shares
shall be issued upon the exercise of this Warrant.  With respect to
any fraction of a share called for upon any exercise hereof, the Company shall
pay the Holder an amount in cash equal to such fraction multiplied by the
current market value of one share.

    

    (d)           EXCHANGE,
TRANSFER, ASSIGNMENT OR LOSS OF WARRANT.  This Warrant is
exchangeable, without expense, at the option of the Holder, upon presentation
and surrender hereof to the Company or at the office of its stock transfer
agent, if any, for other Warrants of different denominations entitling the
holder thereof to purchase in the aggregate the same number of shares of Common
Stock purchasable hereunder.  Upon surrender of this Warrant to the
Company at its principal office or at the office of its stock transfer agent, if
any, with the Assignment Form annexed hereto duly executed and funds sufficient
to pay any transfer tax, the Company shall, without charge, execute and deliver
a new Warrant in the name of the assignee named in such instrument of assignment
and this Warrant shall promptly be canceled.  This Warrant may be
divided or combined with other arrants which carry the same rights upon
presentation hereof at the principal office of the Company or at the office of
its stock transfer agent, together with a written notice specifying the names
and denominations in which new Warrants are to be issued and signed by the
Holder hereof.  The term “Warrant” as used
herein includes any Warrants into which this Warrant might be divided or
exchanged.  Upon receipt by the Company of evidence satisfactory to it
of the loss, theft, destruction or mutilation of this Warrant, and (in the case
of loss, theft or destruction) of reasonably satisfactory indemnification, and
upon surrender and cancellation of this Warrant, if mutilated, the Company will
execute and deliver a new Warrant of like tenor and date.  Any such
new Warrant executed and delivered shall constitute an additional contractual
obligation on the part of the Company, whether or not this Warrant so lost,
stolen, destroyed, or mutilated shall be at any time enforceable by
anyone.

    

    (e)           RIGHTS
OF THE HOLDER.  The Holder shall not, by virtue hereof, be entitled to
any rights of a shareholder in the Company, either at law or equity, and the
rights of the Holder are limited to those expressed in the Warrant and are not
enforceable against the Company except to the extent set forth
herein.

    

    (f)           ANTI-DILUTION
PROVISIONS.  Subject to the provisions of Section (a) hereof the
Exercise Price in effect at any time and the number and kind of securities
purchasable upon the exercise of the Warrants shall be subject to adjustment
from time to time upon the happening of certain events as follows:

    

    (1)           In
case the Company shall (i) declare a dividend or make a distribution on its
outstanding shares of Common Stock in shares of Common Stock, (ii) subdivide or
reclassify its outstanding shares of Common Stock into a greater number of
shares, or (iii) combine or reclassify its outstanding shares of Common Stock
into a smaller number of shares, the Exercise Price in effect at the time of the
record date for such dividend or distribution or of the effective date of such
subdivision, combination or reclassification shall be adjusted so that it shall
equal the price determined by multiplying the Exercise Price by a fraction, the
denominator of which shall be the number of shares of Common Stock outstanding
after giving effect to such action, and the numerator of which shall be the
number of shares of Common Stock outstanding immediately prior to such
action.  Such adjustment shall be made successively whenever any event
listed above shall occur.

     

    
      
         

      

      
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    (2)           Whenever
the Exercise Price payable upon exercise of each Warrant is adjusted pursuant to
Subsection (1) above, the number of Shares purchasable upon exercise of this
Warrant shall simultaneously be adjusted by multiplying the number of Shares
initially issuable upon exercise of this Warrant by the Exercise Price in effect
on the date hereof and dividing the product so obtained by the Exercise Price,
as adjusted.

    

    (3)           All
calculations under this Section (f) shall be made to the nearest cent or to the
nearest one-hundredth of a share, as the case may be.  Anything in
this Section (f) to the contrary notwithstanding, the Company shall be entitled,
but shall not be required, to make such changes in the Exercise Price, in
addition to those required by this Section (f), as it shall determine, in its
sole discretion, to be advisable in order that any dividend or distribution in
shares of Common Stock, or any subdivision, reclassification or combination of
Common Stock, hereafter made by the Company shall not result in any Federal
Income tax liability to the holders of Common Stock or securities convertible
into Common Stock (including Warrants).

    

    (4)           Irrespective
of any adjustments in the Exercise Price or the number or kind of shares
purchasable upon exercise of this Warrant, Warrants theretofore or thereafter
issued may continue to express the same price and number and kind of shares as
are stated in the similar Warrants initially issuable pursuant to this
Agreement.

    

    (g)           OFFICER’S
CERTIFICATE.  Whenever the Exercise Price shall be adjusted as
required by the provisions of the foregoing Section, the Company shall forthwith
file in the custody of its Secretary or an Assistant Secretary at its principal
office and with its stock transfer agent, if any, an officer’s certificate
showing the adjusted Exercise Price determined as herein provided, setting forth
in reasonable detail the facts requiring such adjustment, including a statement
of the number of additional shares of Common Stock, if any, and such other facts
as shall be necessary to show the reason for and the manner of computing such
adjustment.  Each such officer’s certificate shall be made available
at all reasonable times for inspection by the Holder or any holder of a Warrant
executed and delivered pursuant to Section (a) and the Company shall, forthwith
after each such adjustment, mail a copy by certified mail of such certificate to
the Holder or any such holder.

    

    (h)           NOTICES
TO WARRANT HOLDERS.  So long as this Warrant shall be outstanding, (i)
if the Company shall pay any dividend or make any distributions upon the Common
Stock or (ii) if the Company shall offer to the holders of Common Stock for
subscription or purchase by them any share of any class or any other rights or
(iii) if any capital reorganization of the Company, reclassification of the
capital stock of the Company, consolidation or merger of the Company with or
into another corporation, sale, lease or transfer of all or substantially all of
the property and assets of the Company to another corporation, or voluntary or
involuntary dissolution, liquidation or winding up of the Company shall cause to
be mailed by certified mail to the Holder, at least fifteen (15) days prior the
date specified in (x) or (y) below, as the case may be, a notice containing a
brief description of the proposed action and stating the date on which (x) a
record is to be taken for the purpose of such dividend, distribution or rights,
or (y) such reclassification, reorganization, consolidation, merger, conveyance,
lease, dissolution, liquidation or winding up is to take place and the date, if
any is to be fixed, as of which the holders of  Common Stock or other
securities shall receive cash or other property deliverable upon
reclassification, reorganization, consolidation, merger, conveyance,
dissolution, liquidation or winding up.

     

    
      
         

      

      
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    (i)           RECLASSIFICATION,
REORGANIZATION OR MERGER.  In case of any reclassification, capital
reorganization or other change of outstanding shares of Common Stock of the
Company, or in case of any consolidation or merger of the Company with or into
another corporation (other than a merger with a subsidiary in which merger the
Company is the continuing corporation and which does not result in any
reclassification, capital organization or other change of outstanding shares of
Common Stock of the class issuable upon exercise of this Warrant) or in case of
any sale, lease or conveyance to another corporation at the property of the
Company as an entirety, the Company shall, as a condition precedent to such
transaction, cause effective provisions to be made so that the Holder shall have
the right thereafter by exercising this Warrant at any time prior to the
expiration of the Warrant, to purchase the kind and amount of shares of stock
and other securities and property receivable upon such reclassification, capital
reorganization and other change, consolidation, merger, sale or conveyance by a
holder of the number of shares of Common Stock which might have been purchased
upon exercise of this Warrant immediately prior to such reclassification,
change, consolidation, merger, sale or conveyance.  Any such provision
shall include provision for adjustments which shall be as nearly equivalent as
may be practicable to the adjustments provided for in this
Warrant.  The foregoing provisions of this Section (i) shall similarly
apply to successive reclassifications, capital reorganizations and changes or
shares of Common Stock and to successive consolidations, mergers, sales or
conveyances.  In the event that in connection with any such capital
reorganization or reclassification, consolidation, merger, sale or conveyance,
additional shares of Common Stock shall be issued in exchange, conversion,
substitution or payment, in whole or in part, for a security of the Company
other than Common Stock, any such issue shall be treated as an issue of Common
Stock covered by the provisions of Subsection (1) of Section (f)
hereof.

    

    (j)           REGISTRATION
UNDER THE SECURITIES ACT OF 1933.  The Warrant Shares have been
registered under the Securities Act of 1933, as amended, on a Registration
Statement on Form S-1 and exercise of this Warrant into Warrant Shares shall be
subject to such Registration Statement being effective at the time of
exercise.

    

    

    Dated:

     

    
      
        
          
            	
                     

                  	      
                    STEELCLOUD,
      INC.

                  
	 
      	 
      
	 
      	
                    By:
      ______________________________

                  
	 
      	
                    Name:

                  
	 
      	
                    Title:

                  

          

        

      

    

     

    
      
         

      

      
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    PURCHASE
FORM

    

    Dated
___________

    

    The undersigned hereby irrevocably
elects to exercise the within Warrant to the extent of purchasing ______________
shares of Common Stock and hereby makes payment of ___________________ in
payment of the actual exercise price thereof.

    

    

    ASSIGNMENT
FORM

    

    FOR VALUE
RECEIVED, ___________________hereby sells, assigns and transfers
unto

    

    Name________________________________

    (Please
typewrite or print in block letters)

    

    Address______________________________

    

    the right
to purchase Common Stock represented by this Warrant to the extent of
__________shares
as to which such right is exercisable and does hereby irrevocably constitute and
appoint _________________ Attorney, to transfer the same on the books of the
Company with full power of substitution in the premises.

    

    Date_____________________

    

    Signature_____________________________

     

    
      
         

      

      
        5NIVS
INTELLIMEDIA TECHNOLOGY GROUP, INC.

    

    2009
OMNIBUS INCENTIVE PLAN

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    NIVS
INTELLIMEDIA TECHNOLOGY GROUP, INC.

    2009
OMNIBUS INCENTIVE PLAN

    

    

    ARTICLE
I

    

    PURPOSE
AND ADOPTION OF THE PLAN

    

    1.01.      Purpose.  The
purpose of the NIVS IntelliMedia Technology Group, Inc. 2009 Omnibus Incentive
Plan (as amended from time to time, the "Plan") is to assist in attracting and
retaining highly competent employees, directors and consultants to act as an
incentive in motivating selected employees, directors and consultants of the
Company and its
Subsidiaries to achieve long-term corporate objectives and to enable stock-based
and cash-based incentive awards to qualify as performance-based compensation for
purposes of the tax deduction limitations under Section 162(m) of the
Code.

    

    1.02.      Adoption and
Term.  The Plan has been approved by the Board to be effective
as of April 29, 2009, subject to the approval of the stockholders of the
Company, which occurred on June 23, 2009.  The Plan shall remain in
effect until the tenth anniversary of the Effective Date, or until terminated by
action of the Board, whichever occurs sooner.

    

    

    ARTICLE
II

    

    DEFINITIONS

    

    For the
purpose of this Plan, capitalized terms shall have the following
meanings:

    

    2.01.      Affiliate means an
entity in which, directly or indirectly through one or more intermediaries, the
Company has at least a fifty percent (50%) ownership interest or, where
permissible under Section 409A of the Code, at least a twenty percent (20%)
ownership interest; provided, however, for purposes of any
grant of an Incentive Stock Option, “Affiliate” means a corporation which, for
purposes of Section 424 of the Code, is a parent or subsidiary of the Company,
directly or indirectly.

    

    2.02.      Award means any one
or a combination of Non-Qualified Stock Options or Incentive Stock Options
described in Article VI, Stock Appreciation Rights described in Article VI,
Restricted Shares and Restricted Stock Units described in Article VII,
Performance Awards described in Article VIII, other stock-based Awards described
in Article IX, short-term cash incentive Awards described in Article X or any
other Award made under the terms of the Plan.

    

    2.03.      Award Agreement means
a written agreement between the Company and a Participant or a written
acknowledgment from the Company to a Participant specifically setting forth the
terms and conditions of an Award granted under the Plan.

     

    
      
         

      

      
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    2.04.      Award Period means,
with respect to an Award, the period of time, if any, set forth in the Award
Agreement during which specified target performance goals must be achieved or
other conditions set forth in the Award Agreement must be
satisfied.

    

    2.05.       Beneficiary means an
individual, trust or estate who or which, by a written designation of the
Participant filed with the Company, or if no such written designation is filed,
by operation of law, succeeds to the rights and obligations of the Participant
under the Plan and the Award Agreement upon the Participant's
death.

    

    2.06.       Board means the Board
of Directors of the Company.

    

    2.07.      Change in Control
means, and shall be deemed to have occurred upon the occurrence of, any one of
the following events:

    

    (a)           The
acquisition in one or more transactions, other than from the Company, by any
individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2)
of the Exchange Act), other than the Company, an Affiliate or any employee
benefit plan (or related trust) sponsored or maintained by the Company or an
Affiliate, of beneficial ownership (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of a number of Company Voting Securities in excess of
25% of the Company Voting Securities unless such acquisition has been approved
by the Board;

    

    (b)           Any
election has occurred of persons to the Board that causes two-thirds of the
Board to consist of persons other than (i) persons who were members of the Board
on the effective date of the Plan and (ii) persons who were nominated for
elections as members of the Board at a time when two-thirds of the Board
consisted of persons who were members of the Board on the effective date of the
Plan, provided, however, that any person nominated for election by a Board at
least two-thirds of whom constituted persons described in clauses (i) and/or
(ii) or by persons who were themselves nominated by such Board shall, for this
purpose, be deemed to have been nominated by a Board composed of persons
described in clause (i);

    

                          (c)           The
consummation (i.e.
closing) of a reorganization, merger or consolidation involving the Company,
unless, following such reorganization, merger or consolidation, all or
substantially all of the individuals and entities who were the respective
beneficial owners of the Outstanding Common Stock and Company Voting Securities
immediately prior to such reorganization, merger or consolidation, following
such reorganization, merger or consolidation beneficially own, directly or
indirectly, more than 75% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors or trustees,
as the case may be, of the entity resulting from such reorganization, merger or
consolidation in substantially the same proportion as their ownership of the
Outstanding Common Stock and Company Voting Securities immediately prior to such
reorganization, merger or consolidation, as the case may be;

    

                          (d)           The
consummation (i.e.
closing) of a sale or other disposition of all or substantially all the assets
of the Company, unless, following such sale or disposition, all or substantially
all of the individuals and entities who were the respective beneficial owners of
the Outstanding Common Stock and Company Voting Securities immediately prior to
such sale or disposition, following such sale or disposition beneficially own,
directly or indirectly, more than 75% of, respectively, the then outstanding
shares of common stock and the combined voting power of the then outstanding
voting securities entitled to vote generally in the election of directors or
trustees, as the case may be, of the entity purchasing such assets in
substantially the same proportion as their ownership of the Outstanding Common
Stock and Company Voting Securities immediately prior to such sale or
disposition, as the case may be; or

     

    
      
         

      

      
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    (e)           a
complete liquidation or dissolution of the Company.

    

    2.08.      Code means the
Internal Revenue Code of 1986, as amended. References to a section of the Code
shall include that section and any comparable section or sections of any future
legislation that amends, supplements or supersedes said section.

    

    2.09.      Committee means the
Compensation Committee of the Board.

    

    2.10.      Common Stock means
the common stock of the Company, par value $0.0001 per share.

    

    2.11.       Company means NIVS
IntelliMedia Technology Group, Inc., a Delaware corporation, and its
successors.

    

    2.12.      Company Voting
Securities means the combined voting power of all outstanding voting
securities of the Company entitled to vote generally in the election of
directors to the Board.

    

    2.13.      Date of Grant means
the date designated by the Committee as the date as of which it grants an Award,
which shall not be earlier than the date on which the Committee approves the
granting of such Award.

    

    2.14.      Dividend Equivalent
Account means a bookkeeping account in accordance with under Section
11.17 and related to an Award that is credited with the amount of any cash
dividends or stock distributions that would be payable with respect to the
shares of Common Stock subject to such Awards had such shares been outstanding
shares of Common Stock.

    

    2.15       Exchange Act means
the Securities Exchange Act of 1934, as amended.

    

    2.16.      Exercise Price means,
with respect to a Stock Appreciation Right, the amount established by the
Committee in the Award Agreement which is to be subtracted from the Fair Market
Value on the date of exercise in order to determine the amount of the payment to
be made to the Participant, as further described in Section
6.02(b).

    

    2.17.      Fair Market Value
means, as of any applicable date:  (i) if the Common Stock is listed
on a national securities exchange or is authorized for quotation on the Nasdaq
National Market System (“NMS”), the closing sales price of the Common Stock on
the exchange or NMS, as the case may be, on that date, or, if no sale of the
Common Stock occurred on that date, on the next preceding date on which there
was a reported sale; or (ii) if none of the above apply, the closing bid price
as reported by the Nasdaq SmallCap Market on that date, or if no price was
reported for that date, on the next preceding date for which a price was
reported; or (iii) if none of the above apply, the last reported bid price
published in the “pink sheets” or displayed on the National Association of
Securities Dealers, Inc. (“NASD”), Electronic Bulletin Board, as the case may
be; or (iv) if none of the above apply, the fair market value of the Common
Stock as determined under procedures established by the Committee.

     

    
      
         

      

      
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    2.18.      Incentive Stock
Option means a stock option within the meaning of Section 422 of the
Code.

    

    2.19.      Merger means any
merger, reorganization, consolidation, exchange, transfer of assets or other
transaction having similar effect involving the Company.

    

    2.20.      Non-Qualified Stock
Option means a stock option which is not an Incentive Stock
Option.

    

    2.21       Non-Vested Share
means shares of the Company Common Stock issued to a Participant in respect of
the non-vested portion of an Option in the event of the early exercise of such
Participant’s Options pursuant to such Participant’s Award Agreement, as
permitted in Section 6.06 below.

    

    2.22.      Options means all
Non-Qualified Stock Options and Incentive Stock Options granted at any time
under the Plan.

    

    2.23.      Outstanding Common
Stock means, at any time, the issued and outstanding shares of Common
Stock.

    

    2.24.      Participant means a
person designated to receive an Award under the Plan in accordance with Section
5.01.

    

    2.25.      Performance Awards
means Awards granted in accordance with Article VIII.

    

    2.26.      Performance Goals
means net sales, units sold or growth in units sold, return on stockholders'
equity, customer satisfaction or retention, return on investment or working
capital, operating income, economic value added (the amount, if any, by which
net operating income after tax exceeds a reference cost of capital), EBITDA (as
net income (loss) before net interest expense, provision (benefit) for income
taxes, and depreciation and amortization), expense targets, net income, earnings
per share, share price, reductions in inventory, inventory turns, on-time
delivery performance, operating efficiency, productivity ratios, market share or
change in market share, any one of which may be measured with respect to the
Company or any one or more of its Subsidiaries and divisions and either in
absolute terms or as compared to another company or companies, and quantifiable,
objective measures of individual performance relevant to the particular
individual's job responsibilities.

     

    
      
         

      

      
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    2.27.      Plan has the meaning
given to such term in Section 1.01.

    

    2.28.      Purchase Price, with
respect to Options, shall have the meaning set forth in Section
6.01(b).

    

    2.29.      Restricted Shares
means Common Stock subject to restrictions imposed in connection with Awards
granted under Article VII.

    

    2.30.      Restricted Stock
Unit means
a unit representing the right to receive Common Stock or the value thereof in
the future subject to restrictions imposed in connection with Awards granted
under Article VII.

    

    2.31.      Rule 16b-3 means Rule
16b-3 promulgated by the Securities and Exchange Commission under Section 16 of
the Exchange Act, as the same may be amended from time to time, and any
successor rule.

    

    2.32.      Stock Appreciation
Rights means awards granted in accordance with Article VI.

    

    2.33       Termination of
Service means the voluntary or involuntary termination of a Participant’s
service as an employee, director or consultant with the Company or an Affiliate
for any reason, including death, disability, retirement or as the result of the
divestiture of the Participant's employer or any similar transaction in which
the Participant's employer ceases to be the Company or one of its
Subsidiaries.  Whether entering military or other government service
shall constitute Termination of Service, or whether and when a Termination of
Service shall occur as a result of disability, shall be determined in each case
by the Committee in its sole discretion.

    

    

    ARTICLE
III

    

    ADMINISTRATION

    

    3.01.      Committee.

    

    (a)           Duties and
Authority.  The Plan shall be administered by the Committee and
the Committee shall have exclusive and final authority in each determination,
interpretation or other action affecting the Plan and its
Participants.  The Committee shall have the sole discretionary
authority to interpret the Plan, to establish and modify administrative rules
for the Plan, to impose such conditions and restrictions on Awards as it
determines appropriate, and to make all factual determinations with respect to
and take such steps in connection with the Plan and Awards granted hereunder as
it may deem necessary or advisable.  The Committee shall not, however,
have or exercise any discretion that would disqualify amounts payable under
Article X as performance-based compensation for purposes of Section 162(m) of
the Code.  The Committee may delegate such of its powers and authority
under the Plan as it deems appropriate to a subcommittee of the Committee or
designated officers or employees of the Company.  In addition, the
full Board may exercise any of the powers and authority of the Committee under
the Plan. In the event of such delegation of authority or exercise of authority
by the Board, references in the Plan to the Committee shall be deemed to refer,
as appropriate, to the delegate of the Committee or the
Board.  Actions taken by the Committee or any subcommittee thereof,
and any delegation by the Committee to designated officers or employees, under
this Section 3.01 shall comply with Section 16(b) of the Exchange Act, the
performance-based provisions of Section 162(m) of the Code, and the regulations
promulgated under each of such statutory provisions, or the respective
successors to such statutory provisions or regulations, as in effect from time
to time, to the extent applicable.

     

    
      
         

      

      
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    (b)           Indemnification.  Each
person who is or shall have been a member of the Board or the Committee, or an
officer or employee of the Company to whom authority was delegated in accordance
with the Plan shall be indemnified and held harmless by the Company against and
from any loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by such individual in connection with or resulting from any
claim, action, suit, or proceeding to which he or she may be a party or in which
he or she may be involved by reason of any action taken or failure to act under
the Plan and against and from any and all amounts paid by him or her in
settlement thereof, with the Company’s approval, or paid by him or her in
satisfaction of any judgment in any such action, suit, or proceeding against him
or her, provided he or she shall give the Company an opportunity, at its own
expense, to handle and defend the same before he or she undertakes to handle and
defend it on his or her own behalf; provided, however, that the foregoing
indemnification shall not apply to any loss, cost, liability, or expense that is
a result of his or her own willful misconduct.  The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to
which such persons may be entitled under the Company’s Certificate of
Incorporation or Bylaws, conferred in a separate agreement with the Company, as
a matter of law, or otherwise, or any power that the Company may have to
indemnify them or hold them harmless.

    

    

    ARTICLE
IV

    

    SHARES

    

    4.01.       Number of Shares
Issuable.  The total number of shares initially authorized to
be issued under the Plan shall be Four Million (4,000,000) shares of Common
Stock.  The foregoing share limit shall be subject to adjustment in
accordance with Section 11.07.  The shares to be offered under the
Plan shall be authorized and unissued Common Stock, or issued Common Stock that
shall have been reacquired by the Company.

    

    4.02.       Shares Subject to Terminated
Awards.  Common Stock covered by any unexercised portions of
terminated or forfeited Options (including canceled Options) granted under
Article VI, Restricted Stock or Restricted Stock Units forfeited as provided in
Article VII, other stock-based Awards terminated or forfeited as provided under
the Plan, and Common Stock subject to any Awards that are otherwise surrendered
by the Participant may again be subject to new Awards under the
Plan.  Shares of Common Stock surrendered to or withheld by the
Company in payment or satisfaction of the Purchase Price of an Option or tax
withholding obligation with respect to an Award shall be available for the grant
of new Awards under the Plan.  In the event of the exercise of Stock
Appreciation Rights, whether or not granted in tandem with Options, only the
number of shares of Common Stock actually issued in payment of such Stock
Appreciation Rights shall be charged against the number of shares of Common
Stock available for the grant of Awards hereunder.

     

    
      
         

      

      
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    ARTICLE
V

    

    PARTICIPATION

    

    5.01.      Eligible
Participants.  Participants in the Plan shall be such
employees, directors and consultants of the Company and its Subsidiaries as the
Committee, in its sole discretion, may designate from time to
time.  The Committee's designation of a Participant in any year shall
not require the Committee to designate such person to receive Awards or grants
in any other year.  The designation of a Participant to receive Awards
or grants under one portion of the Plan does not require the Committee to
include such Participant under other portions of the Plan.  The
Committee shall consider such factors as it deems pertinent in selecting
Participants and in determining the type and amount of their respective
Awards.  Subject to adjustment in accordance with Section 11.07, in
any calendar year, no Participant shall be granted Awards in respect of more
than 1.0 million shares of Common Stock (whether through grants of Options or
Stock Appreciation Rights or other Awards of Common Stock or rights with respect
thereto) or cash-based Awards for more than $1 million.

    

    ARTICLE
VI

    

    STOCK
OPTIONS AND STOCK APPRECIATION RIGHTS

    

    6.01.      Option
Awards.

    

                          (a)           Grant of
Options.  The Committee may grant, to such Participants as the
Committee may select, Options entitling the Participant to purchase shares of
Common Stock from the Company in such number, at such price, and on such terms
and subject to such conditions, not inconsistent with the terms of this Plan, as
may be established by the Committee.  The terms of any Option granted
under this Plan shall be set forth in an Award Agreement.

    

    (b)           Purchase Price of
Options.  Subject to the requirements applicable to Incentive
Stock Options under Section 6.01(d), the Purchase Price of each share of Common
Stock which may be purchased upon exercise of any Option granted under the Plan
shall be determined by the Committee; provided, however, that in no event shall
the Purchase Price be less than the Fair Market Value on the Date of
Grant.

    

    (c)           Designation of
Options.  The Committee shall designate, at the time of the
grant of each Option, the Option as an Incentive Stock Option or a Non-Qualified
Stock Option; provided,
however, that an Option may be designated as an Incentive Stock Option
only if the applicable Participant is an employee of the Company on the Date of
Grant.

     

    
      
         

      

      
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    (d)           Special Incentive Stock
Option Rules.  No Participant may be granted Incentive Stock
Options under the Incentive Plan (or any other plans of the Company) that would
result in Incentive Stock Options to purchase shares of Common Stock with an
aggregate Fair Market Value (measured on the Date of Grant) of more than
$100,000 first becoming exercisable by the Participant in any one calendar
year.  Notwithstanding any other provision of the Incentive Plan to
the contrary, the Exercise Price of each Incentive Stock Option shall be equal
to or greater than the Fair Market Value of the Common Stock subject to the
Incentive Stock Option as of the Date of Grant of the Incentive Stock Option;
provided, however, that no Incentive
Stock Option shall be granted to any person who, at the time the Option is
granted, owns stock (including stock owned by application of the constructive
ownership rules in Section 424(d) of the Code) possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company,
unless at the time the Incentive Stock Option is granted the price of the Option
is at least one hundred ten percent (110%) of the Fair Market Value of the
Common Stock subject to the Incentive Stock Option and the Incentive Stock
Option by its terms is not exercisable for more than five years from the Date of
Grant.

    

    (e)           Rights As a
Stockholder.  A Participant or a transferee of an Option
pursuant to Section 11.04 shall have no rights as a stockholder with respect to
Common Stock covered by an Option until the Participant or transferee shall have
become the holder of record of any such shares, and no adjustment shall be made
for dividends in cash or other property or distributions or other rights with
respect to any such Common Stock for which the record date is prior to the date
on which the Participant or a transferee of the Option shall have become the
holder of record of any such shares covered by the Option; provided, however,
that Participants are entitled to share adjustments to reflect capital changes
under Section 11.07.

    

    6.02.      Stock Appreciation
Rights.

    

    (a)           Stock Appreciation Right
Awards.  The Committee is authorized to grant to any
Participant one or more Stock Appreciation Rights.  Such Stock
Appreciation Rights may be granted either independent of or in tandem with
Options granted to the same Participant. Stock Appreciation Rights granted in
tandem with Options may be granted simultaneously with, or, in the case of
Non-Qualified Stock Options, subsequent to, the grant to such Participant of the
related Option; provided however, that: (i) any Option covering any share of
Common Stock shall expire and not be exercisable upon the exercise of any Stock
Appreciation Right with respect to the same share, (ii) any Stock Appreciation
Right covering any share of Common Stock shall expire and not be exercisable
upon the exercise of any related Option with respect to the same share, and
(iii) an Option and Stock Appreciation Right covering the same share of Common
Stock may not be exercised simultaneously.  Upon exercise of a Stock
Appreciation Right with respect to a share of Common Stock, the Participant
shall be entitled to receive an amount equal to the excess, if any, of (A) the
Fair Market Value of a share of Common Stock on the date of exercise over (B)
the Exercise Price of such Stock Appreciation Right established in the Award
Agreement, which amount shall be payable as provided in Section
6.02(c).

    

    (b)           Exercise Price. The
Exercise Price established under any Stock Appreciation Right granted under this
Plan shall be determined by the Committee, but in the case of Stock Appreciation
Rights granted in tandem with Options shall not be less than the Purchase Price
of the related Option; provided, however, that in no event shall the Exercise
Price be less than the Fair Market Value on the Date of Grant.  Upon
exercise of Stock Appreciation Rights granted in tandem with options, the number
of shares subject to exercise under any related Option shall automatically be
reduced by the number of shares of Common Stock represented by the Option or
portion thereof which are surrendered as a result of the exercise of such Stock
Appreciation Rights.

     

    
      
         

      

      
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    (c)           Payment of Incremental
Value.  Any payment which may become due from the Company by
reason of a Participant's exercise of a Stock Appreciation Right may be paid to
the Participant as determined by the Committee (i) all in cash, (ii) all in
Common Stock, or (iii) in any combination of cash and Common
Stock.  In the event that all or a portion of the payment is made in
Common Stock, the number of shares of Common Stock delivered in satisfaction of
such payment shall be determined by dividing the amount of such payment or
portion thereof by the Fair Market Value on the Exercise Date.  No
fractional share of Common Stock shall be issued to make any payment in respect
of Stock Appreciation Rights; if any fractional share would be issuable, the
combination of cash and Common Stock payable to the Participant shall be
adjusted as directed by the Committee to avoid the issuance of any fractional
share.

     

    6.03.      Terms of Stock Options and
Stock Appreciation Rights.

    

    (a)           Conditions on
Exercise.  An Award Agreement with respect to Options or Stock
Appreciation Rights may contain such waiting periods, exercise dates and
restrictions on exercise (including, but not limited to, periodic installments)
as may be determined by the Committee at the time of grant.  In the
event the Committee grants an Option or Stock Appreciation Right that would be
subject to Section 409A of the Code, the Committee may include such additional
terms, conditions and restrictions on the exercise of such Option or Stock
Appreciation Right as the Committee deems necessary or advisable in order to
comply with the requirements of Section 409A of the Code.

    

    (b)           Duration of Options and
Stock Appreciation Rights.  Options and Stock Appreciation
Rights shall terminate upon the first to occur of the following
events:

    

    (i)           Expiration
of the Option or Stock Appreciation Right as provided in the Award Agreement;
or

    

    (ii)           Termination
of the Award in the event of a Participant's disability, Retirement, death or
other Termination of Service as provided in the Award Agreement; or

    

    (iii)           In
the case of an Incentive Stock Option, ten years from the Date of Grant (five
years in certain cases, as described in Section 6.01(d)); or

    

    (iv)           Solely
in the case of a Stock Appreciation Right granted in tandem with an Option, upon
the expiration of the related Option.

     

    
      
         

      

      
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    (c)           Acceleration or Extension of
Exercise Time.  The Committee, in its sole discretion, shall
have the right (but shall not be obligated), exercisable on or at any time after
the Date of Grant, to permit the exercise of an Option or Stock Appreciation
Right (i) prior to the time such Option or Stock Appreciation Right would become
exercisable under the terms of the Award Agreement, (ii) after the termination
of the Option or Stock Appreciation Right under the terms of the Award
Agreement, or (iii) after the expiration of the Option or Stock Appreciation
Right.

    

    6.04.       Exercise
Procedures.  Each Option and Stock Appreciation Right granted
under the Plan shall be exercised under such procedures and by such methods as
the Board may establish or approve from time to time.  The Purchase
Price of shares purchased upon exercise of an Option granted under the Plan
shall be paid in full in cash by the Participant pursuant to the Award
Agreement; provided, however, that the Committee may (but shall not be required
to) permit payment to be made (a) by delivery to the Company of shares of Common
Stock held by the Participant, (b) by a “net exercise” method under which the
Company reduces the number of shares of Common Stock issued upon exercise by the
largest whole number of shares with a Fair Market Value that does not exceed the
aggregate Exercise Price, or (c) such other consideration as the Committee deems
appropriate and in compliance with applicable law (including payment under an
arrangement constituting a brokerage transaction as permitted under the
provisions of Regulation T applicable to cashless exercises promulgated by the
Federal Reserve Board, unless prohibited by Section 402 of the Sarbanes-Oxley
Act of 2002).  In the event that any Common Stock shall be transferred
to the Company to satisfy all or any part of the Purchase Price, the part of the
Purchase Price deemed to have been satisfied by such transfer of Common Stock
shall be equal to the product derived by multiplying the Fair Market Value as of
the date of exercise times the number of shares of Common Stock transferred to
the Company.  The Participant may not transfer to the Company in
satisfaction of the Purchase Price any fractional share of Common
Stock.  Any part of the Purchase Price paid in cash upon the exercise
of any Option shall be added to the general funds of the Company and may be used
for any proper corporate purpose.  Unless the Committee shall
otherwise determine, any Common Stock transferred to the Company as payment of
all or part of the Purchase Price upon the exercise of any Option shall be held
as treasury shares.

    

               
6.05.      Change in
Control.  Unless otherwise provided by the Committee in the
applicable Award Agreement, in the event of a Change in Control, no accelerated
vesting of any Options or Stock Appreciation Rights outstanding on the date of
such Change in Control shall occur.

    

    6.06       Early
Exercise.  An Option may, but need not, include a provision by
which the Participant may elect to exercise the Option in whole or in part prior
to the date the Option is fully vested.  The provision may be included
in the Award Agreement at the time of grant of the Option or may be added to the
Award Agreement by amendment at a later time.  In the event of an
early exercise of an Option, any shares of Common Stock received shall be
subject to a special repurchase right in favor of the Company with terms
established by the Board.  The Board shall determine the time and/or
the event that causes the repurchase right to terminate and fully vest the
Common Stock in the Participant.  Alternatively, in the sole
discretion of the Board, one or more Participants may be granted stock purchase
rights allowing them to purchase shares of Common Stock outright, subject to
conditions and restrictions as the Board may determine.

     

    
      
         

      

      
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    ARTICLE
VII

    

    RESTRICTED
SHARES AND RESTRICTED STOCK UNITS

    

    7.01.      Award of Restricted Stock
and Restricted Stock Units. The
Committee may grant to any Participant an Award of Restricted Shares consisting
of a specified number of shares of Common Stock issued to the Participant
subject to such terms, conditions and forfeiture and transfer restrictions,
whether based on performance standards, periods of service, retention by the
Participant of ownership of specified shares of Common Stock or other criteria,
as the Committee shall establish.  The Committee may also grant
Restricted Stock Units representing the right to receive shares of Common Stock
in the future subject to such terms, conditions and restrictions, whether based
on performance standards, periods of service, retention by the Participant of
ownership of specified shares of Common Stock or other criteria, as the
Committee shall establish.  With respect to performance-based Awards
of Restricted Shares or Restricted Stock Units intended to qualify as
"performance-based" compensation for purposes of Section 162(m) of the Code,
performance targets will consist of specified levels of one or more of the
Performance Goals.  The terms of any Restricted Share and Restricted
Stock Unit Awards granted under this Plan shall be set forth in an Award
Agreement which shall contain provisions determined by the Committee and not
inconsistent with this Plan.

    

    7.02       Restricted
Shares.

    

    (a)           Issuance of Restricted
Shares.  As soon as practicable after the Date of Grant of a
Restricted Share Award by the Committee, the Company shall cause to be
transferred on the books of the Company, or its agent, Common Stock, registered
on behalf of the Participant, evidencing the Restricted Shares covered by the
Award, but subject to forfeiture to the Company as of the Date of Grant if an
Award Agreement with respect to the Restricted Shares covered by the Award is
not duly executed by the Participant and timely returned to the
Company.  All Common Stock covered by Awards under this Article VII
shall be subject to the restrictions, terms and conditions contained in the Plan
and the Award Agreement entered into by the Participant.  Until the
lapse or release of all restrictions applicable to an Award of Restricted
Shares, the share certificates representing such Restricted Shares may be held
in custody by the Company, its designee, or, if the certificates bear a
restrictive legend, by the Participant.  Upon the lapse or release of
all restrictions with respect to an Award as described in Section 7.02(d), one
or more share certificates, registered in the name of the Participant, for an
appropriate number of shares as provided in Section 7.02(d), free of any
restrictions set forth in the Plan and the Award Agreement shall be delivered to
the Participant.

    

    (b)           Stockholder
Rights.  Beginning on the Date of Grant of the Restricted Share
Award and subject to execution of the Award Agreement as provided in Section
7.02(a), the Participant shall become a stockholder of the Company with respect
to all shares subject to the Award Agreement and shall have all of the rights of
a stockholder, including, but not limited to, the right to vote such shares and
the right to receive dividends; provided, however, that any Common Stock
distributed as a dividend or otherwise with respect to any Restricted Shares as
to which the restrictions have not yet lapsed, shall be subject to the same
restrictions as such Restricted Shares and held or restricted as provided in
Section 7.02(a).

     

    
      
         

      

      
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    (c)           Restriction on
Transferability.  None of the Restricted Shares may be assigned
or transferred (other than by will or the laws of descent and distribution, or
to an inter vivos trust with respect to which the Participant is treated as the
owner under Sections 671 through 677 of the Code, except to the extent that
Section 16 of the Exchange Act limits a Participant's right to make such
transfers), pledged or sold prior to lapse of the restrictions applicable
thereto.

    

    (d)           Delivery of Shares Upon
Vesting.  Upon expiration or earlier termination of the
forfeiture period without a forfeiture and the satisfaction of or release from
any other conditions prescribed by the Committee, or at such earlier time as
provided under the provisions of Section 7.04, the restrictions applicable to
the Restricted Shares shall lapse.  As promptly as administratively
feasible thereafter, subject to the requirements of Section 11.05, the Company
shall deliver to the Participant or, in case of the Participant's death, to the
Participant's Beneficiary, one or more share certificates for the appropriate
number of shares of Common Stock, free of all such restrictions, except for any
restrictions that may be imposed by law.

    

    (e)           Forfeiture of Restricted
Shares.  Subject to Sections 7.02(f) and 7.04, all Restricted
Shares shall be forfeited and returned to the Company and all rights of the
Participant with respect to such Restricted Shares shall terminate unless the
Participant continues in the service of the Company or an Affiliate as an
employee until the expiration of the forfeiture period for such Restricted
Shares and satisfies any and all other conditions set forth in the Award
Agreement.  The Committee shall determine the forfeiture period (which
may, but need not, lapse in installments) and any other terms and conditions
applicable with respect to any Restricted Share Award.

    

    (f)           Waiver of Forfeiture
Period.  Notwithstanding anything contained in this Article VII
to the contrary, the Committee may, in its sole discretion, waive the forfeiture
period and any other conditions set forth in any Award Agreement under
appropriate circumstances (including the death, disability or Retirement of the
Participant or a material change in circumstances arising after the date of an
Award) and subject to such terms and conditions (including forfeiture of a
proportionate number of the Restricted Shares) as the Committee shall deem
appropriate.

    

    7.03.      Restricted Stock
Units. 

    

    (a)           Settlement of Restricted
Stock Units.  Payments shall be made to Participants with
respect to their Restricted Stock Units as soon as practicable after the
Committee has determined that the terms and conditions applicable to such Award
have been satisfied or at a later date if distribution has been
deferred.  Payments to Participants with respect to Restricted Stock
Units shall be made in the form of Common Stock, or cash or a combination of
both, as the Committee may determine.  The amount of any cash to be
paid in lieu of Common Stock shall be determined on the basis of the Fair Market
Value of the Common Stock on the date any such payment is
processed.  As to shares of Common Stock which constitute all or any
part of such payment, the Committee may impose such restrictions concerning
their transferability and/or their forfeiture as may be provided in the
applicable Award Agreement or as the Committee may otherwise determine, provided
such determination is made on or before the date certificates for such shares
are first delivered to the applicable Participant.

     

    
      
         

      

      
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    (b)           Shareholder
Rights.  Until the lapse or release of all restrictions
applicable to an Award of Restricted Stock Units, no shares of Common Stock
shall be issued in respect of such Awards and no Participant shall have any
rights as a shareholder of the Company with respect to the shares of Common
Stock covered by such Award of Restricted Stock Units.

    

    (c)           Waiver of Forfeiture
Period.  Notwithstanding anything contained in this Section
7.03 to the contrary, the Committee may, in its sole discretion, waive the
forfeiture period and any other conditions set forth in any Award Agreement
under appropriate circumstances (including the death, disability or retirement
of the Participant or a material change in circumstances arising after the date
of an Award) and subject to such terms and conditions (including forfeiture of a
proportionate number of shares issuable upon settlement of the Restricted Stock
Units constituting an Award) as the Committee shall deem
appropriate.

    

    (d)           Deferral of
Payment.  If approved by the Committee and set forth in the
applicable Award Agreement, a Participant may elect to defer the amount payable
with respect to the Participant’s Restricted Stock Units in accordance with such
terms as may be established by the Committee, subject to the requirements of
Section 409A of the Code.

    

    7.04        Change in
Control.  Unless otherwise provided by the Committee in the
applicable Award Agreement, no acceleration of the termination of any of the
restrictions applicable to Restricted Shares and Restricted Stock Unit Awards
shall occur in the event of a Change in Control.

    

    

    ARTICLE
VIII

    

    PERFORMANCE
AWARDS

    

    8.01.       Performance
Awards.

    

    (a)           Award Periods and
Calculations of Potential Incentive Amounts.  The Committee may
grant Performance Awards to Participants.  A Performance Award shall
consist of the right to receive a payment (measured by the Fair Market Value of
a specified number of shares of Common Stock, increases in such Fair Market
Value during the Award Period and/or a fixed cash amount) contingent upon the
extent to which certain predetermined performance targets have been met during
an Award Period.  The Award Period shall be two or more fiscal or
calendar years as determined by the Committee.  The Committee, in its
discretion and under such terms as it deems appropriate, may permit newly
eligible Participants, such as those who are promoted or newly hired, to receive
Performance Awards after an Award Period has commenced.

     

    
      
         

      

      
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    (b)           Performance
Targets.  Subject to Section 11.18, the performance targets
applicable to a Performance Award may include such goals related to the
performance of the Company or, where relevant, any one or more of its
Subsidiaries or divisions and/or the performance of a Participant as may be
established by the Committee in its discretion.  In the case of
Performance Awards to "covered employees" (as defined in Section 162(m) of the
Code), the targets will be limited to specified levels of one or more of the
Performance Goals.  The performance targets established by the
Committee may vary for different Award Periods and need not be the same for each
Participant receiving a Performance Award in an Award Period.

    

    (c)           Earning Performance
Awards.  The Committee, at or as soon as practicable after the
Date of Grant, shall prescribe a formula to determine the percentage of the
Performance Award to be earned based upon the degree of attainment of the
applicable performance targets.

    

    (d)           Payment of Earned
Performance Awards.  Subject to the requirements of Section
11.05, payments of earned Performance Awards shall be made in cash or Common
Stock, or a combination of cash and Common Stock, in the discretion of the
Committee.  The Committee, in its sole discretion, may define, and set
forth in the applicable Award Agreement, such terms and conditions with respect
to the payment of earned Performance Awards as it may deem
desirable.

    

    8.02.      Termination of
Service.  In the event of a Participant’s Termination of
Service during an Award Period, the Participant’s Performance Awards shall be
forfeited except as may otherwise be provided in the applicable Award
Agreement.

    

    8.03.      Change in
Control.  Unless otherwise provided by the Committee in the
applicable Award Agreement, in the event of a Change in Control, no accelerated
vesting of any Performance Awards outstanding on the date of such Change in
Control shall occur.

    

    ARTICLE
IX

    

    OTHER
STOCK-BASED AWARDS

    

    9.01.      Grant of Other Stock-Based
Awards.  Other stock-based awards, consisting of stock purchase
rights (with or without loans to Participants by the Company containing such
terms as the Committee shall determine), Awards of Common Stock, or Awards
valued in whole or in part by reference to, or otherwise based on, Common Stock,
may be granted either alone or in addition to or in conjunction with other
Awards under the Plan. Subject to the provisions of the Plan, the Committee
shall have sole and complete authority to determine the persons to whom and the
time or times at which such Awards shall be made, the number of shares of Common
Stock to be granted pursuant to such Awards, and all other conditions of the
Awards.  Any such Award shall be confirmed by an Award Agreement
executed by the Committee and the Participant, which Award Agreement shall
contain such provisions as the Committee determines to be necessary or
appropriate to carry out the intent of this Plan with respect to such
Award.

     

    
      
         

      

      
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    9.02.      Terms of Other Stock-Based
Awards.  In addition to the terms and conditions specified in
the Award Agreement, Awards made pursuant to this Article IX shall be subject to
the following:

    

    (a)           Any
Common Stock subject to Awards made under this Article IX may not be sold,
assigned, transferred, pledged or otherwise encumbered prior to the date on
which the shares are issued, or, if later, the date on which any applicable
restriction, performance or deferral period lapses; and

    

    (b)           If
specified by the Committee in the Award Agreement, the recipient of an Award
under this Article IX shall be entitled to receive, currently or on a deferred
basis, interest or dividends or dividend equivalents with respect to the Common
Stock or other securities covered by the Award; and

    

    (c)           The
Award Agreement with respect to any Award shall contain provisions dealing with
the disposition of such Award in the event of a Termination of Service prior to
the exercise, payment or other settlement of such Award, whether such
termination occurs because of Retirement, disability, death or other reason,
with such provisions to take account of the specific nature and purpose of the
Award.

    

    

    ARTICLE
X

    

    SHORT-TERM
CASH INCENTIVE AWARDS

    

    10.01.    Eligibility.  Executive
officers of the Company who are from time to time determined by the Committee to
be "covered employees" for purposes of Section 162(m) of the Code will be
eligible to receive short-term cash incentive awards under this Article
X.

    

    10.02.    Awards.

    

    (a)           Performance
Targets.  The Committee shall establish objective performance
targets based on specified levels of one or more of the Performance
Goals.  Such performance targets shall be established by the Committee
on a timely basis to ensure that the targets are considered "preestablished" for
purposes of Section 162(m) of the Code.

    

    (b)           Amounts of
Awards.  In conjunction with the establishment of performance
targets for a fiscal year or such other short-term performance period
established by the Committee, the Committee shall adopt an objective formula (on
the basis of percentages of Participants' salaries, shares in a bonus pool or
otherwise) for computing the respective amounts payable under the Plan to
Participants if and to the extent that the performance targets are
attained.  Such formula shall comply with the requirements applicable
to performance-based compensation plans under Section 162(m) of the Code and, to
the extent based on percentages of a bonus pool, such percentages shall not
exceed 100% in the aggregate.

     

    
      
         

      

      
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    (c)           Payment of
Awards.  Awards will be payable to Participants in cash each
year upon prior written certification by the Committee of attainment of the
specified performance targets for the preceding fiscal year or other applicable
performance period.

    

    (d)           Negative
Discretion.  Notwithstanding the attainment by the Company of
the specified performance targets, the Committee shall have the discretion,
which need not be exercised uniformly among the Participants, to reduce or
eliminate the award that would be otherwise paid.

    

    (e)           Guidelines.  The
Committee may adopt from time to time written policies for its implementation of
this Article X.  Such guidelines shall reflect the intention of the
Company that all payments hereunder qualify as performance-based compensation
under Section 162(m) of the Code.

    

    (f)           Non-Exclusive
Arrangement.  The adoption and operation of this Article X
shall not preclude the Board or the Committee from approving other short-term
incentive compensation arrangements for the benefit of individuals who are
Participants hereunder as the Board or Committee, as the case may be, deems
appropriate and in the best of the Company.

    

    

    ARTICLE
XI

    

    TERMS
APPLICABLE GENERALLY TO AWARDS

    GRANTED
UNDER THE PLAN

    

    11.01.    Plan Provisions Control
Award Terms.  Except as provided in Section 11.16, the terms of
the Plan shall govern all Awards granted under the Plan, and in no event shall
the Committee have the power to grant any Award under the Plan which is contrary
to any of the provisions of the Plan.  In the event any provision of
any Award granted under the Plan shall conflict with any term in the Plan as
constituted on the Date of Grant of such Award, the term in the Plan as
constituted on the Date of Grant of such Award shall control.  Except
as provided in Section 11.03 and Section 11.07, the terms of any Award granted
under the Plan may not be changed after the Date of Grant of such Award so as to
materially decrease the value of the Award without the express written approval
of the holder.

    

    11.02.    Award
Agreement.  No person shall have any rights under any Award
granted under the Plan unless and until the Company and the Participant to whom
such Award shall have been granted shall have executed and delivered an Award
Agreement or received any other Award acknowledgment authorized by the Committee
expressly granting the Award to such person and containing provisions setting
forth the terms of the Award.

    

    11.03.    Modification of Award After
Grant.  No Award granted under the Plan to a Participant may be
modified (unless such modification does not materially decrease the value of the
Award) after the Date of Grant except by express written agreement between the
Company and the Participant, provided that any such change (a) shall not be
inconsistent with the terms of the Plan, and (b) shall be approved by the
Committee.

     

    
      
         

      

      
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    11.04.    Limitation on
Transfer.  Except as provided in Section 7.01(c) in the case of
Restricted Shares, a Participant's rights and interest under the Plan may not be
assigned or transferred other than by will or the laws of descent and
distribution, and during the lifetime of a Participant, only the Participant
personally (or the Participant's personal representative) may exercise rights
under the Plan.  The Participant's Beneficiary may exercise the
Participant's rights to the extent they are exercisable under the Plan following
the death of the Participant. Notwithstanding the foregoing, to the extent
permitted under Section 16(b) of the Exchange Act with respect to Participants
subject to such Section, the Committee may grant Non-Qualified Stock Options
that are transferable, without payment of consideration, to immediate family
members of the Participant or to trusts or partnerships for such family members,
and the Committee may also amend outstanding Non-Qualified Stock Options to
provide for such transferability.

    

    11.05.    Taxes.  The
Company shall be entitled, if the Committee deems it necessary or desirable, to
withhold (or secure payment from the Participant in lieu of withholding) the
amount of any withholding or other tax required by law to be withheld or paid by
the Company with respect to any amount payable and/or shares issuable under such
Participant's Award, or with respect to any income recognized upon a
disqualifying disposition of shares received pursuant to the exercise of an
Incentive Stock Option, and the Company may defer payment or issuance of the
cash or shares upon exercise or vesting of an Award unless indemnified to its
satisfaction against any liability for any such tax. The amount of such
withholding or tax payment shall be determined by the Committee and shall be
payable by the Participant at such time as the Committee determines in
accordance with the following rules:

    

    (a)           The
Participant shall have the right to elect to meet his or her withholding
requirement (i) by having withheld from such Award at the appropriate time that
number of shares of Common Stock, rounded down to the nearest whole share, whose
Fair Market Value is equal to the amount of withholding taxes due, (ii) by
direct payment to the Company in cash of the amount of any taxes required to be
withheld with respect to such Award or (iii) by a combination of shares and
cash.

    

    (b)           In
the case of Participants who are subject to Section 16 of the Exchange Act, the
Committee may impose such limitations and restrictions as it deems necessary or
appropriate with respect to the delivery or withholding of shares of Common
Stock to meet tax withholding obligations.

    

    11.06.    Surrender of Awards;
Authorization of Repricing.  Any Award granted under the Plan
may be surrendered to the Company for cancellation on such terms as the
Committee and the holder approve.  Without requiring shareholder
approval, the Committee may substitute a new Award under this Plan in connection
with the surrender by the Participant of an equity compensation award previously
granted under this Plan or any other plan sponsored by the Company, including
the substitution or grant of (i) an Option or Stock Appreciation Right with a
lower exercise price than the Option or Stock Appreciation Right being
surrendered, (ii) a different type of Award upon the surrender or cancellation
of an Option or Stock Appreciation Right with an exercise price above the Fair
Market Value of the underlying Common Stock on the date of such substitution or
grant, or (iii) any other Award constituting a repricing of an Option or Stock
Appreciation Right.

     

    
      
         

      

      
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    11.07.    Adjustments to Reflect
Capital Changes.

    

    (a)           Recapitalization.  In
the event of any corporate event or transaction (including, but not limited to,
a change in the Common Stock or the capitalization of the Company) such as a
merger, consolidation, reorganization, recapitalization, separation, partial or
complete liquidation, stock dividend, stock split, reverse stock split, split
up, spin-off, or other distribution of stock or property of the Company, a
combination or exchange of Common Stock, dividend in kind, or other like change
in capital structure, number of outstanding shares of Common Stock, distribution
(other than normal cash dividends) to shareholders of the Company, or any
similar corporate event or transaction, the Committee, in order to prevent
dilution or enlargement of Participants’ rights under this Plan, shall make
equitable and appropriate adjustments and substitutions, as applicable, to or of
the number and kind of shares subject to outstanding Awards, the Purchase Price
or Exercise Price for such shares, the number and kind of shares available for
future issuance under the Plan and the maximum number of shares in respect of
which Awards can be made to any Participant in any calendar year, and other
determinations applicable to outstanding Awards.  The Committee shall
have the power and sole discretion to determine the amount of the adjustment to
be made in each case.

    

    (b)           Merger.  In
the event that the Company is a party to a Merger, outstanding Awards shall be
subject to the agreement of merger or reorganization.  Such agreement
may provide, without limitation, for the continuation of outstanding Awards by
the Company (if the Company is a surviving corporation), for their assumption by
the surviving corporation or its parent or subsidiary, for the substitution by
the surviving corporation or its parent or subsidiary of its own awards for such
Awards, for accelerated vesting and accelerated expiration, or for settlement in
cash or cash equivalents.

    

    (c)           Options to Purchase Shares
or Stock of Acquired Companies.  After any Merger in which the
Company or an Affiliate shall be a surviving corporation, the Committee may
grant substituted options under the provisions of the Plan, pursuant to Section
424 of the Code, replacing old options granted under a plan of another party to
the Merger whose shares or stock subject to the old options may no longer be
issued following the Merger.  The foregoing adjustments and manner of
application of the foregoing provisions shall be determined by the Committee in
its sole discretion.  Any such adjustments may provide for the
elimination of any fractional shares which might otherwise become subject to any
Options.

    

    11.08.    No Right to Continued
Service.  No person shall have any claim of right to be granted
an Award under this Plan. Neither the Plan nor any action taken hereunder shall
be construed as giving any Participant any right to be retained in the service
of the Company or any of its Subsidiaries.

     

    
      
         

      

      
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    11.09.    Awards Not Includable for
Benefit Purposes.  Payments received by a Participant pursuant
to the provisions of the Plan shall not be included in the determination of
benefits under any pension, group insurance or other benefit plan applicable to
the Participant which is maintained by the Company or any of its Subsidiaries,
except as may be provided under the terms of such plans or determined by the
Board.

    

    11.10.    Governing
Law.  All determinations made and actions taken pursuant to the
Plan shall be governed by the laws of Delaware and construed in
accordance therewith.

    

    11.11.    No Strict
Construction.  No rule of strict construction shall be implied
against the Company, the Committee, or any other person in the interpretation of
any of the terms of the Plan, any Award granted under the Plan or any rule or
procedure established by the Committee.

    

    11.12.    Compliance with Rule
16b-3.  It is intended that, unless the Committee determines
otherwise, Awards under the Plan be eligible for exemption under Rule
16b-3.  The Board is authorized to amend the Plan and to make any such
modifications to Award Agreements to comply with Rule 16b-3, as it may be
amended from time to time, and to make any other such amendments or
modifications as it deems necessary or appropriate to better accomplish the
purposes of the Plan in light of any amendments made to Rule 16b-3.

    

    11.13.    Captions.  The
captions (i.e., all Section headings) used in the Plan are for convenience only,
do not constitute a part of the Plan, and shall not be deemed to limit,
characterize or affect in any way any provisions of the Plan, and all provisions
of the Plan shall be construed as if no captions have been used in the
Plan.

    

    11.14.    Severability.  Whenever
possible, each provision in the Plan and every Award at any time granted under
the Plan shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of the Plan or any Award at any time
granted under the Plan shall be held to be prohibited by or invalid under
applicable law, then (a) such provision shall be deemed amended to accomplish
the objectives of the provision as originally written to the fullest extent
permitted by law and (b) all other provisions of the Plan and every other Award
at any time granted under the Plan shall remain in full force and
effect.

    

    11.15.    Amendment and
Termination.

    

    (a)           Amendment.  The
Board shall have complete power and authority to amend the Plan at any time;
provided, however, that the Board shall not, without the requisite affirmative
approval of stockholders of the Company, make any amendment which requires
stockholder approval under the Code or under any other applicable law or rule of
any stock exchange which lists Common Stock or Company Voting
Securities.  No termination or amendment of the Plan may, without the
consent of the Participant to whom any Award shall theretofore have been granted
under the Plan, adversely affect the right of such individual under such
Award.

    

    (b)           Termination.  The
Board shall have the right and the power to terminate the Plan at any time. No
Award shall be granted under the Plan after the termination of the Plan, but the
termination of the Plan shall not have any other effect and any Award
outstanding at the time of the termination of the Plan may be exercised after
termination of the Plan at any time prior to the expiration date of such Award
to the same extent such Award would have been exercisable had the Plan not
terminated.

     

    
      
         

      

      
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    11.16.    Foreign Qualified
Awards.  Awards under the Plan may be granted to such employees
of the Company and its Subsidiaries who are residing in foreign jurisdictions as
the Committee in its sole discretion may determine from time to time. The
Committee may adopt such supplements to the Plan as may be necessary or
appropriate to comply with the applicable laws of such foreign jurisdictions and
to afford Participants favorable treatment under such laws; provided, however,
that no Award shall be granted under any such supplement with terms or
conditions inconsistent with the provision set forth in the Plan.

    

    11.17.    Dividend
Equivalents.  For any Award granted under the Plan, the
Committee shall have the discretion, upon the Date of Grant or thereafter, to
establish a Dividend Equivalent Account with respect to the Award, and the
applicable Award Agreement or an amendment thereto shall confirm such
establishment.  If a Dividend Equivalent Account is established, the
following terms shall apply:

    

    (a)           Terms and
Conditions.  Dividend Equivalent Accounts shall be subject to
such terms and conditions as the Committee shall determine and as shall be set
forth in the applicable Award Agreement.  Such terms and conditions
may include, without limitation, for the Participant’s Account to be credited as
of the record date of each cash dividend on the Common Stock with an amount
equal to the cash dividends which would be paid with respect to the number of
shares of Common Stock then covered by the related Award if such shares of
Common Stock had been owned of record by the Participant on such record
date.

    

    (b)           Unfunded
Obligation.  Dividend Equivalent Accounts shall be established
and maintained only on the books and records of the Company and no assets or
funds of the Company shall be set aside, placed in trust, removed from the
claims of the Company's general creditors, or otherwise made available until
such amounts are actually payable as provided hereunder.

    

    11.18     Adjustment of Performance
Goals and Targets.  Notwithstanding any provision of the Plan
to the contrary, the Committee shall have the authority to adjust any
Performance Goal, performance target or other performance-based criteria
established with respect to any Award under the Plan if circumstances occur
(including, but not limited to, unusual or nonrecurring events, changes in tax
laws or accounting principles or practices or changed business or economic
conditions) that cause any such Performance Goal, performance target or
performance-based criteria to be inappropriate in the judgment of the Committee;
provided, that with respect to any Award that is intended to qualify for the
"performance-based compensation" exception under Section 162(m) of the Code and
the regulations thereunder, any adjustment by the Committee shall be consistent
with the requirements of Section 162(m) and the regulations
thereunder.

     

    
      
         

      

      
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    11.19     Legality of
Issuance.  Notwithstanding any provision of this Plan or any
applicable Award Agreement to the contrary, the Committee shall have the sole
discretion to impose such conditions, restrictions and limitations (including
suspending exercises of Options or Stock Appreciation Rights and the tolling of
any applicable exercise period during such suspension) on the issuance of Common
Stock with respect to any Award unless and until the Committee determines that
such issuance complies with (i) any applicable registration requirements under
the Securities Act of 1933 or the Committee has determined that an exemption
therefrom is available, (ii) any applicable listing requirement of any stock
exchange on which the Common Stock is listed, (iii) any applicable Company
policy or administrative rules, and (iv) any other applicable provision of
state, federal or foreign law, including foreign securities laws where
applicable.

    

    11.20     Restrictions on
Transfer.  Regardless of whether the offering and sale of
Common Stock under the Plan have been registered under the Securities Act of
1933 or have been registered or qualified under the securities laws of any
state, the Company may impose restrictions upon the sale, pledge, or other
transfer of such Common Stock (including the placement of appropriate legends on
stock certificates) if, in the judgment of the Company and its counsel, such
restrictions are necessary or desirable to achieve compliance with the
provisions of the Securities Act of 1933, the securities laws of any state, the
United States or any other applicable foreign law.

    

    11.21     Further
Assurances.  As a condition to receipt of any Award under the
Plan, a Participant shall agree, upon demand of the Company, to do all acts and
execute, deliver and perform all additional documents, instruments and
agreements which may be reasonably required by the Company, to implement the
provisions and purposes of the Plan.

     

    
      
         

      

      
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