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                                                                     EXHIBIT 4.8

                            (KCS ENERGY, INC. LOGO)

                                KCS ENERGY, INC.

                     2005 EMPLOYEE AND DIRECTORS STOCK PLAN

SECTION 1  PURPOSE AND SCOPE OF THE PLAN.

     1.1 Purpose.  The purpose of the Plan is to promote the long-term success
of the Company and the Subsidiaries by providing financial incentives to those
key Employees and Non-Employee Directors who are in a position to make
significant contributions toward such success. The Plan is designed (i) to
attract individuals of outstanding ability to employment with the Company and
the Subsidiaries, (ii) to encourage key Employees and Non-Employee Directors to
acquire a proprietary interest in the Company and thereby align their interests
more closely with the interests of the stockholders of the Company, (iii) to
provide incentives for key Employees to continue employment with the Company and
the Subsidiaries, (iv) to encourage and reward superior performance by key
Employees, and (v) to assist the Company in securing and retaining highly
qualified persons to serve as Non-Employee Directors, in which position they may
contribute to the long-term growth and profitability of the Company, by
affording such persons an opportunity to acquire Common Stock.

     1.2 Definitions.  Unless the context clearly indicates otherwise, the
following terms have the meanings set forth below:

          1.2.1 "Administrator" means the Board or the Committee appointed by
     the Board in accordance with Section 1.4 hereof.

          1.2.2 "Award Date" means, for any Bonus Period, the later to occur of
     (i) March 15 following the end of that Bonus Period or (ii) the date on
     which the Auditors render their opinion on the financial statements of the
     Company for the Company's third fiscal year in that Bonus Period.

          1.2.3 "Award Determination Date" means January 1 of any year while
     this Plan is in effect.

          1.2.4 "Award Distribution Date" means for any Bonus Period, March 15
     following the fourth anniversary of the Award Determination Date for that
     Bonus Period.

          1.2.5 "Auditors" means the independent certified public accountants
     engaged to audit the financial statements of the Company as of the Award
     Date.

          1.2.6 "Board" means the Board of Directors of the Company as
     constituted from time to time.

          1.2.7 "Bonus Stock" means Common Stock awarded pursuant to the Stock
     Bonus.

          1.2.8 "Bonus Period" means the period beginning on an Award
     Determination Date and ending on the day prior to the third anniversary
     thereof.

          1.2.9 "Cause" means the occurrence of any of the following events: (i)
     the commission by Participant of an act of willful misconduct in any
     material respect including, but not limited to, the willful violation of
     any material law, rule, regulation or cease and desist order applicable to
     Participant or the Company (other than a law, rule or regulation relating
     to a minor traffic violation or similar offense), or an act which
     constitutes a breach of a fiduciary duty owed to the Company by Participant
     involving personal profit; (ii) the commission by Participant of an act of
     dishonesty relating to the performance of

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     Participant's duties, habitual unexcused absence from work, willful failure
     to perform duties in any material respect (other than any such failure
     resulting from Participant's incapacity due to physical or mental illness
     or disability), or gross negligence in the performance of duties resulting
     in damage or injury to the Company, its reputation or goodwill (provided,
     however, that in the event of Participant's willful failure to perform
     duties in any material respect, Participant shall be provided with written
     notice of such event and shall be provided with a reasonable opportunity,
     and in no event more than thirty (30) days, to cure such failure to perform
     his duties); or (iii) any felony conviction of Participant or any
     conviction involving dishonesty, fraud or breach of trust (other than for a
     minor traffic violation or similar offense), whether or not in the line of
     duty.

          1.2.10 "Change in Control" means the first to occur of any of the
     following events which occurs at any time after the Effective Date: (i) Any
     "person" (as the term is used in Sections 13(d) and 14(d) of the Exchange
     Act, other than a trustee or other fiduciary holding securities under an
     executive benefit plan of the Company or any of its Subsidiaries, becomes
     the beneficial owner (as defined in Rule 13d-3 under the Exchange Act),
     directly or indirectly, of securities of the Company representing more than
     25% of the combined voting power of the Company's then outstanding
     securities; (ii) individuals who are members of the Board on the date of
     this Agreement (the "Incumbent Board") cease for any reason to constitute
     at least a majority of the Board, provided that any person becoming a
     director subsequent to the date of this Agreement in replacement for a
     director who has died or become disabled and whose election was approved by
     a vote of at least a majority of the directors comprising the Incumbent
     Board, or whose nomination for election by the Company's stockholders was
     approved by a nominating committee serving under an Incumbent Board, shall
     be considered a member of the Incumbent Board; (iii) a merger or
     consolidation of the Company with any other corporation or other business
     entity, other than a merger or consolidation which would result in the
     combined voting power of the Company's securities outstanding immediately
     prior thereto continuing to represent (either by remaining outstanding or
     by being converted into voting securities of the surviving entity) at least
     51% of the combined voting power of the securities of the Company or such
     surviving entity outstanding immediately after such merger or
     consolidation; or (iv) a sale or disposition by the Company of all or
     substantially all of the Company's assets.

          1.2.11 "Code" means the Internal Revenue Code of 1986, as amended.

          1.2.12 "Committee" means a committee of one or more members of the
     Board appointed by the Board to administer the Plan in accordance with
     Section 1.4.4.

          1.2.13 "Common Stock" means the common stock of the Company, $0.01 par
     value.

          1.2.14 "Company" means KCS Energy, Inc., a Delaware corporation.

          1.2.15 "Continuous Service" means that the Participant's service with
     the Company or a Subsidiary, whether as an Employee or director, is not
     interrupted or terminated. The Participant's Continuous Service shall not
     be deemed to have terminated merely because of a change in the capacity in
     which the Participant renders service to the Company or a Subsidiary as an
     Employee or director or a change in the entity for which the Participant
     renders such service, provided that there is no interruption or termination
     of the Participant's Continuous Service. For example, a change in status
     from an Employee of the Company to an Employee of a Subsidiary or a
     director will not constitute an interruption of Continuous Service. The
     Administrator or the chief executive officer of the Company, in that
     party's sole discretion, may determine whether Continuous Service shall be
     considered interrupted in the case of any leave of absence approved by that
     party, including sick leave, military leave or any other personal leave.

          1.2.16 "Covered Employee" means the chief executive officer and the
     four (4) other highest compensated officers of the Company for whom total
     compensation is required to be reported to shareholders under the Exchange
     Act, as determined for purposes of Section 162(m) of the Code.

          1.2.17 "Effective Date" means the date specified in Section 8.10
     hereof upon which the Board's adoption of the Plan is effective.

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          1.2.18 "Election Period" means the period beginning on the third
     business day following the date on which the Company files its quarterly or
     annual financial statements with the Securities and Exchange Commission,
     and ending on the twelfth business day following such filing date.

          1.2.19 "Employees" includes any employee of the Company or a
     Subsidiary and shall include any director who is also an employee.

          1.2.20 "Exchange Act" means the Securities Exchange Act of 1934, as
     amended. References to any provision of the Exchange Act or rule thereunder
     will be deemed to include successor provisions thereto and rules
     thereunder.

          1.2.21 "Fair Market Value" means, as of any date, the value of the
     Common Stock as determined in good faith by the Administrator as follows:
     (i) if the Common Stock is admitted to quotation on the National
     Association of Securities Dealers Automated Quotation System ("Nasdaq"),
     the Fair Market Value on any given date shall not be less than the average
     of the highest bid and lowest asked prices of the Common Stock reported for
     such date or, if no bid and asked prices were reported for such date, for
     the last day preceding such date for which such prices were reported; (ii)
     if the Common Stock is admitted to trading on a national securities
     exchange or the Nasdaq National Market or Nasdaq Small Cap Market, the Fair
     Market Value on any date shall not be less than the closing price reported
     for the Common Stock on such exchange or system for such date or, if no
     sales were reported for such date, for the last date preceding the date for
     such a sale was reported; or (iii) in the absence of an established market
     for the Common Stock, the Fair Market Value determined in good faith by the
     Administrator and such determination shall be conclusive and binding on all
     persons.

          1.2.22 "409A Award" means a grant or an award that is considered
     "nonqualified deferred compensation" within the meaning of Section 409A of
     the Code and Section 7 of this Plan.

          1.2.23 "Grant Date", as used with respect to a grant of a particular
     Option, Stock Appreciation Right or share of Restricted Stock, means the
     date as of which such Option, Stock Appreciation Right or share of
     Restricted Stock is granted pursuant to the Plan.

          1.2.24 "Incentive Stock Option" means an option that qualifies as an
     "incentive stock option" as described in Section 422 of the Code.

          1.2.25 "Non-Employee Director" means a member of the Board who is a
     "non-employee director" within the meaning of Rule 16b-3 under the Exchange
     Act.

          1.2.26 "Option" means an option, granted pursuant to Section 2, to
     purchase shares of Common Stock and which shall be designated as either an
     Incentive Stock Option or a Supplemental Stock Option.

          1.2.27 "Option Period" means the period beginning on the Grant Date
     and ending the day prior to the tenth anniversary of the Grant Date, or
     such shorter period specified by the Administrator in the Option agreement.

          1.2.28 "Outside Director" means a member of the Board who is an
     "outside director" within the meaning of Section 162(m) of the Code and
     Treasury Regulations sec. 1.162-27(e)(3).

          1.2.29 "Participant" means a person to whom a grant of Options,
     Retainer Stock, SARs, Restricted Stock or a Stock Bonus is awarded pursuant
     to the Plan or, if applicable, such other person who holds an outstanding
     grant.

          1.2.30 "Performance-Based Stock Options" means Options granted if the
     Employee or the Company meets certain financial or other performance
     measurement targets or Performance Criteria.

          1.2.31 "Performance Criteria" means the criteria that the
     Administrator selects for purposes of establishing the Performance Goal or
     Performance Goals for an Employee for a Performance Period. The Performance
     Criteria that will be used to establish Performance Goals, include but are
     not limited to the following: net earnings (either before or after
     interest, taxes, depreciation and amortization), sales or

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     revenue, operating earnings, operating cash flow, return on net assets,
     return on stockholders' equity, return on assets, return on capital,
     stockholder returns, gross or net profit margin, earnings per share, price
     per share of Stock, market share and other Company performance factors, any
     of which may be measured either in absolute terms or as compared to any
     incremental increase or as compared to results of a peer group. The
     Administrator shall, within the time prescribed by Section 162(m) of the
     Code, define in an objective fashion the manner of calculating the
     Performance Criteria it selects to use for such Performance Period for such
     an Employee.

          1.2.32 "Performance Goals" means, for a Performance Period, the goals
     established in writing by the Administrator for the Performance Period
     based upon the Performance Criteria. Depending on the Performance Criteria
     used to establish such Performance Goals, the Performance Goals may be
     expressed in terms of overall Company performance or the performance of a
     division, business unit, or an individual. The Administrator, in its
     discretion, may, within the time prescribed by Section 162(m) of the Code,
     adjust or modify the calculation of Performance Goals for such Performance
     Period in order to prevent the dilution or enlargement of the rights of
     Participants (i) in the event of, or in anticipation of, any unusual or
     extraordinary corporate item, transaction, event, or development, or (ii)
     in recognition of, or in anticipation of, any other unusual or nonrecurring
     events affecting the Company, or the financial statements of the Company,
     or in response to, or in anticipation of, changes in applicable laws,
     regulations, accounting principles, or business conditions.

          1.2.33 "Performance Share Bonus" means a Stock Bonus awarded under
     Section 6 of the Plan under which, upon the satisfaction of predetermined
     individual or Company performance goals or objectives, shares of Common
     Stock are awarded to a Stock Bonus Designee.

          1.2.34 "Plan" means the 2005 Employees and Directors Stock Plan as set
     forth herein, as it may be amended from time to time.

          1.2.35 "Retainer" means the annual fee payable to a Non-Employee
     Director of the Corporation for service on the Board which is fixed from
     time to time by the Board, excluding (i) any annual fee payable for service
     on any Committee of the Board or for service as Chairman of any Committee
     of the Board, (ii) meeting fees payable for the attendance at meetings of
     the Board or its Committees for the relevant year, and (iii) any Options
     such Non-Employee Director is eligible to receive or is granted under this
     Plan.

          1.2.36 "Retainer Stock" means any Common Stock issuable pursuant to
     Section 3 hereof.

          1.2.37 "Retirement" means the Participant's termination of employment
     with the Company or a Subsidiary, on or after the Participant's
     sixty-second birthday, with the intention of not seeking any gainful
     activity in the future for reasons other than physical or mental
     disability.

          1.2.38 "Restricted Stock" means any restricted Common Stock granted by
     the Administrator pursuant to Section 5.

          1.2.39 "Stock Appreciation Right" or "SAR" means the right, granted by
     the Administrator pursuant to Section 4 hereof, to receive payment equal to
     the net increase, if any, in the Fair Market Value of a share of Common
     Stock from the Grant Date of such right to the date such right is
     exercised.

          1.2.40 "Stock Bonus" means the bonus awarded by the Administrator
     pursuant to Section 6.

          1.2.41 "Stock Bonus Designee" means any key Employee of the Company
     and/or any Subsidiary designated to receive a Stock Bonus pursuant to
     Section 6.

          1.2.42 "Subsidiaries" means any and all corporations with respect to
     which fifty percent (50%) or more of the total combined voting power of all
     classes of capital stock is owned either by (i) the Company or (ii) one or
     more other corporations qualifying as a Subsidiary under clause (i).

          1.2.43 "Supplemental Stock Option" means any Option granted under this
     Plan, other than an Incentive Stock Option.

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          1.2.44 "Total and Permanent Disability", as applied to a Participant,
     means that the Participant has established to the satisfaction of the
     Administrator that the Participant is unable to engage in any substantial
     gainful activity by reason of any medically determinable physical or mental
     impairment which can be expected to result in death or which has lasted or
     can be expected to last for a continuous period of not less than 12 months
     (all within the meaning of Section 22(e)(3) of the Code).

     1.3 Aggregate Limitation.

          1.3.1 The aggregate number of shares of Common Stock with respect to
     which Options (including, without limitation, Incentive Stock Options),
     Retainer Stock, SARs, Restricted Stock or Stock Bonuses may be granted or
     awarded under the Plan shall not exceed 5,708,779 shares of Common Stock,
     subject to adjustment in accordance with Section 8.1 hereof, but reduced by
     1,708,779, the total number of shares underlying options and awards granted
     and outstanding on the Effective Date ("Prior Outstanding Awards") under
     the terms of the KCS Energy, Inc. 2001 Employee and Directors Stock Plan
     (the "2001 Plan"). If, prior to the termination of the Plan, a Prior
     Outstanding Award shall expire, be forfeited or terminate for any reason
     without having been exercised in full, the shares subject to such expired,
     forfeited or terminated rights shall again be available for purposes of
     this Plan. If Prior Outstanding Awards expire, are forfeited or terminate
     for any reason without having been exercised in full, the number of shares
     of Common Stock which may be issued upon the exercise of Awards under the
     Plan shall be increased by the number of shares of Common Stock underlying
     such expired, forfeited or terminated Prior Outstanding Awards. In no
     event, however, will the maximum aggregate amount of Common Stock which may
     be issued upon exercise of all grants and awards under the Plan, including
     Incentive Stock Options and Prior Outstanding Awards that terminate and
     become available under this Plan, exceed 5,708,779 shares of Common Stock,
     subject to adjustment in accordance with Section 8.1 hereof.

          1.3.2 Any shares of Common Stock to be delivered by the Company upon
     the exercise of Options and SARs, as Retainer Stock, or upon the lapse of
     restrictions applicable to Restricted Stock or Bonus Stock, shall be issued
     from authorized but unissued shares of Common Stock or from Common Stock
     held by the Company as treasury stock, at the discretion of the Board.

          1.3.3 In the event that any grant or award of Options, SARs,
     Restricted Stock or Stock Bonuses hereunder lapses or otherwise terminates
     prior to being fully exercised or is otherwise forfeited, any share of
     Common Stock allocable to the unexercised or forfeited portion of such
     grant may again be made subject to a grant of Options, Retainer Stock,
     SARs, Restricted Stock or Stock Bonuses.

          1.3.4 Subject to the provisions of Section 8.1 relating to adjustments
     upon changes in the shares of Common Stock, no Employee shall be eligible
     to be granted Options or SARs covering more than One Million (1,000,000)
     shares of Common Stock during any calendar year. This Section 1.3.4 shall
     not apply prior to the first date upon which any security of the Company is
     listed (or approved for listing) upon notice of issuance on any securities
     exchange or designated (or approved for designation) upon notice of
     issuance as a national market security on an interdealer quotation system
     ("Listing Date") and, following the Listing Date, this Section 1.3.4 shall
     not apply until (a) the earliest of: (i) the first material modification of
     the Plan (including any increase in the number of shares of Common Stock
     reserved for issuance under the Plan in accordance with Section 1.3.1);
     (ii) the issuance of all of the shares of Common Stock reserved for
     issuance under the Plan; (iii) the expiration of the Plan; or (iv) the
     first meeting of shareholders at which Directors are to be elected that
     occurs after the close of the third calendar year following the calendar
     year in which occurred the first registration of an equity security under
     Section 12 of the Exchange Act; or (b) such other date required by Section
     162(m) of the Code and the rules and regulations promulgated thereunder.

     1.4 Administration of the Plan.

          1.4.1 The Plan shall be administered by the Board unless and until the
     Board delegates administration to the Committee (the group that administers
     the Plan is referred to as the "Administrator").

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          1.4.2 The Administrator shall have the power and authority to select
     and grant to Participants, grants of Options, SARs, Restricted Stock, and
     awards of Bonus Stock pursuant to the terms of the Plan. In particular, the
     Administrator shall have the authority:

             1.4.2.1 To determine the identity of key Employees of the Company
        and the Subsidiaries to whom, and the times at which, Options, SARs,
        Restricted Stock, and Bonus Stock shall be granted or awarded and the
        number of shares of Common Stock to be subject to each such Option, SAR,
        Restricted Stock, and Bonus Stock grant or award, taking into account
        the nature of the services rendered by the particular Employee, the
        Employee's potential contribution to the long-term success of the
        Company and the Subsidiaries and such other factors as the Administrator
        in its discretion shall deem relevant;

             1.4.2.2 to exercise discretion to construe and interpret the Plan
        and apply its provisions;

             1.4.2.3 to promulgate, amend and rescind rules and regulations
        relating to the administration of the Plan;

             1.4.2.4 to authorize any person to execute, on behalf of the
        Company, any instrument required to carry out the purposes of the Plan;

             1.4.2.5 to prescribe the terms, conditions and provisions of the
        agreements for the grant of Options, SARs, Restricted Stock, and the
        award of Stock Bonuses (which need not be identical), including, without
        limitation, the exercise price and medium of payment, vesting provisions
        and to specify the provisions of any agreement relating to such grant;

             1.4.2.6 to determine whether each Option is to be an Incentive
        Stock Option or a Supplemental Stock Option;

             1.4.2.7 to make all other determinations necessary or advisable in
        order to administer the Plan;

             1.4.2.8 to determine the time or times when each Option or SAR, or
        part of either thereof, may be exercised, within the limits stated in
        the Plan; and

             1.4.2.9 subject to Section 5.1, to determine the term of the
        Restricted Period (as defined in Section 5.1) and any other conditions
        applicable to Restricted Stock and Bonus Stock.

             1.4.2.10 to amend any outstanding grants and awards for the purpose
        of modifying the time or manner of vesting, the exercise price, or other
        terms or conditions of any outstanding grant. If any such amendment
        impairs a Participant's rights or increases a Participant's obligations
        under his or her award, such amendment shall also be subject to the
        Participant's consent (provided, however, a cancellation of a grant or
        award where the Participant receives a payment equal in value to the
        Fair Market Value of the vested grant or award or, in the case of vested
        Options, the difference between the Fair Market Value of the Common
        Stock subject to the vested Option and the exercise price, shall not be
        an impairment of the Participant's rights that requires consent);

             1.4.2.11 to determine the duration and purpose of leaves of
        absences which may be granted to a Participant without constituting a
        termination of Continuous Service for purposes of the Plan;

             1.4.2.12 to make decisions with respect to outstanding grants and
        awards that may become necessary upon a Change in Control or an event
        that triggers equitable adjustments under Section 8.1; and

             1.4.2.13 to make any and all other determinations which it
        determines to be necessary or advisable for administration of the Plan.

          1.4.3 All decisions of the Administrator upon questions of
     administration or interpretation of the Plan or any grant or award under
     the Plan shall be conclusive and binding on the Company and the
     Participants.

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          1.4.4 The Board may delegate administration of the Plan to a Committee
     or Committees of one (1) or more members of the Board.

             1.4.4.1 The term "COMMITTEE" shall apply to the person or persons
        to whom authority for administration of the Plan has been delegated. If
        administration is delegated to a Committee, the Committee shall have, in
        connection with the administration of the Plan, the powers theretofore
        possessed by the Board, including the power to delegate to a
        subcommittee any of the administrative powers the Committee is
        authorized to exercise (and references in this Plan to the Board or the
        Administrator shall thereafter be to the Committee or subcommittee),
        subject, however, to such resolutions, not inconsistent with the
        provisions of the Plan, as may be adopted from time to time by the
        Board. The Board may abolish the Committee at any time and revest in the
        Board the administration of the Plan. The members of the Committee shall
        be appointed by and to serve at the pleasure of the Board. From time to
        time, the Board may increase or decrease the size of the Committee, add
        additional members to, remove members (with or without Cause) from,
        appoint new members in substitution therefor, and fill vacancies,
        however caused, in the Committee. The Committee shall act pursuant to a
        vote of the majority of its members or, in the case of a committee
        comprised of only two members, the unanimous consent of its members,
        whether present or not, or by the written consent of the majority of its
        members and minutes shall be kept of all of its meetings and copies
        thereof shall be provided to the Board. Subject to the limitations
        prescribed by the Plan and the Board, the Committee may establish and
        follow such rules and regulations for the conduct of its business as it
        may determine to be advisable.

             1.4.4.2 At such time as the Common Stock is publicly traded, in the
        discretion of the Board, a Committee may consist solely of two or more
        Non-Employee Directors who are also Outside Directors. The Board shall
        have discretion to determine whether or not it intends to comply with
        the exemption requirements of Rule 16b-3 of the Exchange Act and/or
        Section 162(m) of the Code. However, if the Board intends to satisfy
        such exemption requirements, with respect to awards to any Covered
        Employee and with respect to any insider subject to Section 16 of the
        Exchange Act, the Committee shall be a compensation committee of the
        Board that at all times consists solely of two or more Non-Employee
        Directors who are also Outside Directors. Within the scope of such
        authority, the Board or the Committee may (i) delegate to a committee of
        one or more members of the Board who are not Outside Directors the
        authority to grant awards to eligible persons who are either (A) not
        then Covered Employees and are not expected to be Covered Employees at
        the time of recognition of income resulting from such award or (B) not
        persons with respect to whom the Company wishes to comply with Section
        162(m) of the Code or (ii) delegate to a committee of one or more
        members of the Board who are not Non-Employee Directors the authority to
        grant awards to eligible persons who are not then subject to Section 16
        of the Exchange Act.

          1.4.5 Indemnification  In addition to such other rights of
     indemnification as they may have as Directors or members of the Committee,
     and to the extent allowed by applicable law, the Administrator and each of
     the Administrator's consultants shall be indemnified by the Company against
     the reasonable expenses, including attorney's fees, actually incurred in
     connection with any action, suit or proceeding or in connection with any
     appeal therein, to which the Administrator or any of its consultants may be
     party by reason of any action taken or failure to act under or in
     connection with the Plan or any option granted under the Plan, and against
     all amounts paid by the Administrator or any of its consultants in
     settlement thereof (provided that the settlement has been approved by the
     Company, which approval shall not be unreasonably withheld) or paid by the
     Administrator or any of its consultants in satisfaction of a judgment in
     any such action, suit or proceeding, except in relation to matters as to
     which it shall be adjudged in such action, suit or proceeding that such
     Administrator or any of its consultants did not act in good faith and in a
     manner which such person reasonably believed to be in the best interests of
     the Company, and in the case of a criminal proceeding, had no reason to
     believe that the conduct complained of was unlawful; provided, however,
     that within 60 days after institution of any such action, suit or
     proceeding, such Administrator or any of its consultants shall, in writing,
     offer the Company the opportunity at its own expense to handle and defend
     such action, suit or proceeding.

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     1.5 Eligibility for Awards.

          1.5.1 Employees.  The Administrator shall designate from time to time
     the key Employees of the Company and the Subsidiaries who, based on their
     current and potential contribution to the success of the Company, are to be
     granted Options, SARs, Restricted Stock, and awards of Bonus Stock. Except
     as provided in Section 1.5.2, in no event may a member of the Committee or
     any Non-Employee Director of the Company be granted an Option, SAR,
     Restricted Stock or a Stock Bonus award.

          1.5.2 Non-Employee Directors.  Each director of the Company who, on
     any date on which an Option or Retainer Stock is granted pursuant to
     Section 2.1.2 or Section 3, is not an Employee of the Company or a
     Subsidiary, will be eligible to receive Options or Retainer Stock so
     granted under the Plan; provided, however, that no Incentive Stock Option
     may be issued to such Non-Employee Director; and provided, further that no
     director who was appointed or nominated pursuant to the terms of any debt
     instrument, preferred stock, underwriting agreement, or other contract
     entered into by the Company will be eligible to participate in the Plan.

SECTION 2  STOCK OPTIONS.

     2.1 Grant of Options.

          2.1.1 Employee Options.  The Administrator may from time to time,
     subject to the provisions of the Plan, grant to key Employees of the
     Company and the Subsidiaries Options to purchase shares of Common Stock
     allotted in accordance with Sections 1.3 and 1.4 hereof. The Administrator
     may designate what portion, if any, of an Option is an Incentive Stock
     Option. Any portion of an Option that is not designated as an Incentive
     Stock Option shall be a Supplemental Stock Option and shall satisfy the
     requirements of Section 2.2 hereof, but shall not be subject to the
     requirements of Section 2.3 hereof. Incentive Stock Options may be granted
     only to Employees.

          2.1.2 Non-Employee Director Options.  A Supplemental Stock Option may
     be granted each year during the term of the Plan, at the close of business
     on the date on which the annual meeting of shareholders of the Company is
     held, to each Non-Employee Director who is then eligible for such grant
     under Section 1.5.2 hereof. The number of shares of Common Stock subject to
     the Supplemental Stock Option will be determined by the Administrator.

     2.2 Option Requirements.  Each Option shall be in such form and shall
contain such terms and conditions as the Administrator shall deem appropriate.
All Options shall be separately designated Incentive Stock Options or
Supplemental Stock Options at the time of grant, and, if certificates are
issued, a separate certificate or certificates will be issued for shares of
Common Stock purchased on exercise of each type of Option. Notwithstanding the
foregoing, the Company shall have no liability to any Participant or any other
person if an Option designated as an Incentive Stock Option fails to qualify as
such at any time. The provisions of separate Options need not be identical, but
each Option shall include (through incorporation of provisions hereof by
reference in the Option or otherwise) the substance of each of the following
provisions:

          2.2.1 An Option shall be evidenced by a written instrument specifying
     the number of shares of Common Stock that may be purchased upon its
     exercise and containing such terms and conditions consistent with the Plan
     as the Administrator shall determine.

          2.2.2 No Option shall be granted on or after the tenth anniversary of
     the effective date of the Plan.

          2.2.3 An Option shall not be exercisable after the expiration of the
     Option Period.

          2.2.4 The Administrator may provide, in the instrument evidencing an
     Option granted to an Employee, for the lapse of the Option, prior to the
     expiration of the Option Period, upon the occurrence of any event specified
     by the Administrator.

          2.2.5 An Option price per share of Common Stock shall not be less than
     the Fair Market Value of a share of Common Stock on the Grant Date.
     Notwithstanding the foregoing, an Option may be granted with an exercise
     price lower than that set forth in the preceding sentence if such Option is
     granted

                                       8
<PAGE>

     pursuant to an assumption or substitution for another option in a manner
     satisfying the corporate reorganization provisions of Section 424(a) of the
     Code.

          2.2.6 An Option shall not be transferable other than by will or the
     laws of descent and distribution (or to a designated beneficiary in the
     event of a Participant's death) and, an Option shall be exercisable during
     the Participant's lifetime only by the Participant or his or her guardian
     or legal representative, provided that such transfer or exercise complies
     with the requirements for exemption from Section 16(b) of the Exchange Act
     and, with respect to an Incentive Stock Option, the requirements of Section
     422(b)(5) of the Code.

          2.2.7 The Option may, but need not, vest and therefore become
     exercisable in periodic installments that may, but need not, be equal. The
     Option may be subject to such other terms and conditions on the time or
     times when it may be exercised (which may be based on performance or other
     criteria) as the Administrator may deem appropriate. The vesting provisions
     of individual Options may vary. No Option may be exercised for a fraction
     of a share of Common Stock. The Administrator in its discretion may provide
     for an acceleration of vesting and exercisability in the terms of any
     Option agreement in the event a Change in Control occurs or in the event of
     a Participant's Retirement.

          2.2.8 Lapse of Options.

             2.2.8.1 Termination of Continuous Service.  Unless otherwise
        provided in an Option agreement or in an employment agreement the terms
        of which have been approved by the Administrator, in the event a
        Participant's Continuous Service terminates (other than upon the
        Participant's death, Total and Permanent Disability or termination for
        Cause), the Participant may exercise his or her Option (to the extent
        that the Participant was entitled to exercise such Option as of the date
        of termination) but only within such period of time ending on the
        earlier of (a) the date three (3) months following the termination of
        the Participant's Continuous Service, or (b) the expiration of the term
        of the Option as set forth in the Option agreement. If, after
        termination of Continuous Service, the Participant does not exercise his
        or her Option within the time specified in the Option agreement, the
        Option shall terminate. Outstanding Options that are not exercisable at
        the time a Participant's Continuous Service terminates for any reason
        other than Cause (including upon the Participant's death or Total and
        Permanent Disability) shall be forfeited and expire at the close of
        business on the date of such termination.

             2.2.8.2 Death.  Unless otherwise provided in an Option agreement,
        in the event a Participant's Continuous Service terminates as a result
        of the Participant's death or if the Participant dies within three (3)
        months following the date of termination of Continuous Service, then the
        Option may be exercised (to the extent the Participant was entitled to
        exercise such Option as of the date of death) by the Participant's
        estate, by a person who acquired the right to exercise the Option by
        bequest or inheritance or by a person designated to exercise the Option
        upon the Participant's death, but only within the period ending on the
        earlier of (a) the date twelve (12) months following the date of death
        or (b) the expiration of the term of such Option as set forth in the
        Option agreement. If, after death, the Option is not exercised within
        the time specified herein, the Option shall terminate.

             2.2.8.3 Total and Permanent Disability.  Unless otherwise provided
        in an Option agreement, in the event that a Participant's Continuous
        Service terminates as a result of the Participant's Disability, the
        Participant may exercise his or her Option (to the extent that the
        Participant was entitled to exercise such Option as of the date of
        termination), but only within such period of time ending on the earlier
        of (a) the date twelve (12) months following such termination or (b) the
        expiration of the term of the Option as set forth in the Option
        agreement. If, after termination of Continuous Service, the Participant
        does not exercise his or her Option within the time specified herein,
        the Option shall terminate.

             2.2.8.4 Termination for Cause.  Unless otherwise provided in an
        Option agreement, in the event that a Participant's Continuous Service
        terminates as a result of the Participant's termination

                                       9
<PAGE>

        by the Company for Cause, all outstanding Options granted to such
        Participant shall expire as of the commencement of business on the date
        of such termination of Continuous Service.

             2.2.8.5 Extension of Termination Date.  If, after termination of
        Continuous Service, the Participant does not exercise his or her Option
        within the time specified in the Option agreement, the Option shall
        terminate. Outstanding Options that are not exercisable at the time a
        Participant's Continuous Service terminates for any reason other than
        Cause (including upon the Participant's death or Total and Permanent
        Disability) shall be forfeited and expire at the close of business on
        the date of such termination. An Option agreement may also provide that
        if the exercise of the Option following the termination of the
        Participant's Continuous Service (other than upon the Participant's
        death or Total and Permanent Disability) would be prohibited at any time
        solely because the exercise of the option or issuance of shares of
        Common Stock would violate the registration requirements under the
        Securities Act or any other state or federal securities law requirement,
        then the Option shall terminate on the earlier of (a) the expiration of
        the Option Period or (b) the expiration of a period after termination of
        the Participant's Continuous Service that is three (3) months after the
        end of the period during which the exercise of the Option would be in
        violation of such registration or other securities law requirements.

          2.2.9 A person electing to exercise an Option shall give written
     notice, in such form as the Administrator may require, of such election to
     the Company and shall tender to the Company the full purchase price of the
     shares of Common Stock for which the election is made. The purchase price
     of Common Stock acquired pursuant to an Option shall be paid, to the extent
     permitted by applicable statutes and regulations, either (i) in cash or by
     certified or bank check at the time the Option is exercised or (ii) in the
     discretion of the Administrator, upon such terms as the Administrator shall
     approve, the exercise price may be paid: (1) by delivery to the Company of
     other Common Stock, duly endorsed for transfer to the Company, with a Fair
     Market Value on the date of delivery equal to the exercise price (or
     portion thereof) due for the number of shares being acquired, or by means
     of attestation whereby the Participant identifies for delivery specific
     shares of Common Stock that have been held for more than six (6) months (or
     such longer or shorter period of time required to avoid a charge to
     earnings for financial accounting purposes) that have a Fair Market Value
     on the date of attestation equal to the exercise price (or portion thereof)
     and receives a number of shares of Common Stock equal to the difference
     between the number of shares thereby purchased and the number of identified
     attestation shares of Common Stock (a "Stock For Stock Exchange"); (2)
     during any period for which the Common Stock is publicly traded (i.e., the
     Common Stock is listed on any established stock exchange or a national
     market system, including without limitation the Nasdaq National Market, or
     if the Common Stock is quoted on the Nasdaq System (but not on the Nasdaq
     National Market) or any similar system whereby the Common Stock is
     regularly quoted by a recognized securities dealer but closing sale prices
     are not reported), by a copy of instructions to a broker directing such
     broker to sell the Common Stock for which such Option is exercised, and to
     remit to the Company the aggregate Exercise Price of such Options (a
     "Cashless Exercise"); (3) in any other form of legal consideration that may
     be acceptable to the Administrator, including without limitation with a
     full-recourse promissory note. However, if there is a stated par value of
     the shares and applicable law requires, the par value of the shares, if
     newly issued, shall be paid in cash or cash equivalents. The shares shall
     be pledged as security for payment of the principal amount of the
     promissory note and interest thereon. The interest rate payable under the
     terms of the promissory note shall not be less than the minimum rate (if
     any) required to avoid the imputation of additional interest under the
     Code. Subject to the foregoing, the Administrator (in its sole discretion)
     shall specify the term, interest rate, amortization requirements (if any)
     and other provisions of such note. Unless the Administrator determines
     otherwise, shares of Common Stock having a Fair Market Value at least equal
     to the principal amount of the loan shall be pledged by the holder to the
     Company as security for payment of the unpaid balance of the loan and such
     pledge shall be evidenced by a pledge agreement, the terms of which shall
     be determined by the Administrator, in its discretion; provided, however,
     that each loan shall comply with all applicable laws, regulations and rules
     of the Board of Governors of the Federal Reserve System and any other
     governmental agency having jurisdiction. Unless otherwise specifically
     provided in the Option, the purchase price of Common Stock

                                       10
<PAGE>

     acquired pursuant to an Option that is paid by delivery (or attestation) to
     the Company of other Common Stock acquired, directly or indirectly from the
     Company, shall be paid only by shares of the Common Stock of the Company
     that have been held for more than six (6) months (or such longer or shorter
     period of time required to avoid a charge to earnings for financial
     accounting purposes). Notwithstanding the foregoing, during any period for
     which the Common Stock is publicly traded (i.e., the Common Stock is listed
     on any established stock exchange or a national market system, including
     without limitation the Nasdaq National Market, or if the Common Stock is
     quoted on the Nasdaq System (but not on the Nasdaq National Market) or any
     similar system whereby the Common Stock is regularly quoted by a recognized
     securities dealer but closing sale prices are not reported), a Cashless
     Exercise, exercise with a promissory note or other transaction by a
     Director or executive officer that involves or may involve a direct or
     indirect extension of credit or arrangement of an extension of credit by
     the Company, or a Subsidiary in violation of section 402(a) of the
     Sarbanes-Oxley Act (codified as Section 13(k) of the Securities Exchange
     Act of 1934, 15 U.S.C. sec. 78m(k)) shall be prohibited with respect to any
     grant under this Plan.

          2.2.10 As soon as practicable after the receipt of such written notice
     and full payment, the Company will deliver to the Participant or another
     person exercising the Option as permitted under Section 2.2.6 one or more
     certificates for the requisite number of shares of Common Stock.

          2.2.11 A Participant to whom Common Stock is issued pursuant to this
     Section 2 will have all the rights of a holder of Common Stock, including
     the right to receive dividends paid on such Common Stock and the right to
     vote such Common Stock at meetings of shareholders of the Company from and
     after the date of such issuance.

          2.2.12 The exercise or lapse of any number of tandem SARs shall cause
     a corresponding reduction in the number of shares of Common Stock then
     available for purchase by exercise of the related Option.

     2.3 Incentive Stock Option Requirements.  An Option designated by the
Administrator as an Incentive Stock Option is intended to qualify as an
"incentive stock option" within the meaning of Section 422(b) of the Code and
shall satisfy, in addition to the conditions of Section 2.2 hereof, the
conditions set forth in this Section 2.3.

          2.3.1 An Incentive Stock Option shall not be granted to an individual
     who, on the date of grant, owns stock (taking into account the attribution
     rules of 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
     (or its subsidiaries, as defined in Section 424(f) of the Code) unless the
     Option price is equal to at least one hundred ten percent (110%) of the
     Fair Market Value of a share of Common Stock on the Grant Date, and the
     option is not exercisable after five (5) years from the Grant Date.

          2.3.2 To the extent that the aggregate Fair Market Value (determined
     at the time of grant) of Common Stock with respect to which Incentive Stock
     Options are exercisable for the first time by any Participant during any
     calendar year (under all plans of the Company and its Subsidiaries) exceeds
     one hundred thousand dollars ($100,000), the Options or portions thereof
     which exceed such limit (according to the order in which they were granted)
     shall be treated as Supplemental Stock Options.

          2.3.3 Each instrument evidencing grant of an Incentive Stock Option
     shall require the Participant to notify the Company of any disposition (as
     defined in Section 424 of the Code) of all or any portion of shares of
     Common Stock acquired upon exercise of an Incentive Stock Option within two
     (2) years from the Grant Date of such Incentive Stock Option or within one
     (1) year after the issuance of the shares of Common Stock acquired upon
     exercise of such Incentive Stock Option within ten (10) days of such
     disposition. Any such notice shall advise the Company in writing as to the
     occurrence of the sale and the price realized upon the sale of such shares
     of Common Stock.

     2.4 Performance-Based Stock Option Requirements.  The Administrator may
condition the grant of an Option on the attainment of any Performance Goals
established by the Administrator. The determination as to the satisfaction of
any Performance Goals shall be made by the Administrator. If the Administrator

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<PAGE>

determines that an Employee has attained the Performance Goals specified in the
conditional grant, the Administrator will award the Employee Options in
accordance with the provisions of this Section 2.

     2.5 Additional Requirements Under Section 409A.  Each Option agreement
shall include a provision whereby, notwithstanding any provision of the Plan or
the Option agreement to the contrary, the Option shall satisfy the additional
conditions applicable to nonqualified deferred compensation under section 409A
of the Code, in accordance with Section 7 hereof, in the event any Option under
this Plan is granted with an exercise price less than Fair Market Value of the
Common Stock subject to the Option on the date the Option is granted (regardless
of whether or not such exercise price is intentionally or unintentionally priced
at less than Fair Market Value, or is materially modified at a time when the
Fair Market Value exceeds the exercise price), or is otherwise determined to
constitute "nonqualified deferred compensation" within the meaning of Section
409A of the Code.

SECTION 3  RETAINER STOCK.  During the term of this Plan, a percentage of the
Retainer may be payable in Common Stock in lieu of cash, to the extent and
subject to the terms and conditions set forth below.

          3.1 Annual Stock Payment.  The number of shares of Common Stock to be
     issued pursuant to this Section 3 will be equal to (i) the percentage of
     the Retainer determined by the Board for the relevant year divided by (ii)
     the Fair Market Value per share of Common Stock. No fractional shares will
     be issued; instead, the Fair Market Value of such fractional shares shall
     be paid in cash to the director. As promptly as practicable after the
     number of shares to be issued under this Section 3 is determined, the
     Company will deliver to the director one or more certificates representing
     shares of Common Stock issued to such director pursuant to this Section 3,
     registered in the name of the director (or, if requested by the director,
     in joint names of the director and his or her spouse). No payment will be
     required from the director upon the issuance or delivery of any Common
     Stock pursuant to this Section 3, except (if applicable) as provided in
     Section 8.6. Retainer Stock shall be issued and the remaining cash Retainer
     amount shall be paid not later than (i) the date that is 2 1/2 months after
     the end of the director's taxable year for which the Retainer was earned
     and the director has a legally binding right to such amounts; or (ii) the
     date that is 2 1/2 months after the end of the Company's taxable year for
     which the Retainer was earned and the director has a legally binding right
     to such amounts, whichever is later.

          3.2 Rights of Director.  A director to whom Common Stock is issued
     pursuant to this Section 3 will have all the rights of a holder of Common
     Stock, including the right to receive dividends paid on such Common Stock
     and the right to vote such Common Stock at meetings of shareholders of the
     Company from and after the date of such issuance.

SECTION 4  STOCK APPRECIATION RIGHTS.

     4.1 Grant of Rights.

          4.1.1 The Administrator may grant a Stock Appreciation Right either as
     a stand alone right or, provided the requirements of Section 4.1.2 are
     satisfied, in tandem with all or any part of the shares of Common Stock
     that may be purchased by the exercise of an Option.

          4.1.2 A Stock Appreciation Right may only be granted if the Stock
     Appreciation Right: (a) does not provide for the deferral of compensation
     within the meaning of Section 409A of the Code; or (b) satisfies the
     requirements of Section 4.3 and Section 7 hereof. A Stock Appreciation
     Right does not provide for a deferral of compensation if: (i) the floor for
     determining the appreciation component of the Stock Appreciation Right that
     will be paid to the Participant (i.e., the amount used to determine the
     appreciation in excess of the value of the Common Stock that the holder is
     entitled to receive upon exercise (hereinafter, the "SAR exercise price"))
     may never be less than the Fair Market Value of the underlying Common Stock
     on the date the right is granted, (ii) the Common Stock subject to the
     right is traded on an established securities market, (iii) only such traded
     Common Stock may be delivered in settlement of the right upon exercise, and
     (iv) the right does not include any feature for the deferral of
     compensation other than the deferral of recognition of income until the
     exercise of the right.

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<PAGE>

          4.1.3 Upon exercise of a Stock Appreciation Right (which exercise
     shall, unless the Administrator otherwise consents, be made only during an
     Election Period), the Company shall pay the amount, if any, by which the
     Fair Market Value of a share of Common Stock on the date of exercise
     exceeds the SAR exercise price. A Stock Appreciation Right shall not be
     exercisable if the Fair Market Value of a share of Common Stock on the
     Grant Date exceeds the Fair Market Value of such share of Common Stock on
     the date of exercise.

          4.1.4 Payment with respect to the exercise of a Stock Appreciation
     Right shall be made in shares of Common Stock, valued at Fair Market Value
     on the date of exercise.

     4.2 Rights Requirements.

          4.2.1 Stock Appreciation Rights shall be evidenced by a written
     instrument containing such terms and conditions consistent with the Plan as
     the Administrator shall determine.

          4.2.2 Stock Appreciation Rights granted in relation to an Option shall
     be exercisable only to the extent the Option is exercisable. However, no
     Stock Appreciation Rights may be granted in tandem with an Option unless
     the Administrator determines that the requirements of Section 4.1.2(a) are
     satisfied.

          4.2.3 A person electing to exercise Stock Appreciation Rights shall
     give written notice, in such form as the Administrator may require, of such
     election to the Company.

          4.2.4 The exercise or lapse of an Option to purchase any number of
     shares of Common Stock shall cause an equivalent reduction in the number of
     tandem Stock Appreciation Rights.

          4.2.5 Stock Appreciation Rights shall not be transferable other than
     by will or the laws of descent and distribution and, during the
     Participant's lifetime, the Stock Appreciation Rights shall be exercisable
     only by the Participant; except that the Administrator may permit:

             4.2.5.1 exercise, during the Participant's lifetime, by the
        Participant's guardian or legal representative; and

             4.2.5.2 transfer, upon the Participant's death, to beneficiaries
        designated by the Participant in a manner authorized by the
        Administrator;

        provided that the Administrator determines that such exercise or such
        transfer complies with requirements for exemption from Section 16(b) of
        the Exchange Act and, with respect to a Stock Appreciation Right granted
        in tandem with an Incentive Stock Option, the requirements of Section
        422(b)(5) of the Code.

     4.3 Additional Requirements under Section 409A.  A Stock Appreciation Right
that is not intended to or fails to satisfy the requirements of Section 4.1.2(a)
shall satisfy the requirements of this Section 4.3 and the additional conditions
applicable to nonqualified deferred compensation under section 409A of the Code,
in accordance with Section 7 hereof. The requirements herein shall apply in the
event any Stock Appreciation Right under this Plan is granted with an SAR
exercise price less than Fair Market Value of the Common Stock underlying the
award on the date the Stock Appreciation Right is granted (regardless of whether
or not such SAR exercise price is intentionally or unintentionally priced at
less than Fair Market Value, or is materially modified at a time when the Fair
Market Value exceeds the SAR exercise price), provides that it is settled in
cash, or is otherwise determined to constitute "nonqualified deferred
compensation" within the meaning of Section 409A of the Code. Any such Stock
Appreciation Right may provide that it is exercisable at any time permitted
under the governing written instrument, but such exercise shall be limited to
fixing the measurement of the amount, if any, by which the Fair Market Value of
a share of Common Stock on the date of exercise exceeds the SAR exercise price
(the "SAR Amount"). However, once the Stock Appreciation Right is exercised, the
SAR Amount may only be paid on the fixed time or payment schedule specified in
the governing written instrument or in Section 7.1.1 hereof.

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<PAGE>

SECTION 5  RESTRICTED STOCK.

     5.1 Grant of Restricted Stock.  The Administrator may from time to time,
subject to the provisions of the Plan, grant Restricted Stock to key Employees
of the Company and the Subsidiaries. At the time an award of Restricted Stock is
made, the Administrator shall establish a period of time (the "Restricted
Period") applicable to such award, which shall not be less than three (3) years,
nor more than five (5) years unless the award is accompanied by performance
standards. In the latter event, the Restricted Period shall not be less than one
(1) year, nor more than five (5) years. Subject to the foregoing limitation,
each award of Restricted Stock may have a different Restricted Period.
Notwithstanding the foregoing or anything in Section 5.2 to the contrary, all
restrictions shall lapse or terminate with respect to all Restricted Stock upon
death or Total and Permanent Disability or Retirement of the Participant.

     5.2 Restricted Stock Requirements.  Upon the grant of an award of
Restricted Stock, a stock certificate representing the number of shares of
Common Stock equal to the number of shares of Restricted Stock granted to a
Participant shall be registered in the Participant's name but shall be held by
the Company for the Participant's account. The Participant shall generally have
the rights and privileges of a stockholder as to such Restricted Stock,
including the right to vote such Restricted Stock, except that the following
restrictions shall apply: (i) the Participant shall not be entitled to delivery
of the certificate until the expiration or termination of the Restricted Period
and the satisfaction of any other conditions prescribed by the Administrator;
(ii) none of the Restricted Stock may be sold, transferred, assigned, pledged,
or otherwise encumbered or disposed of during the Restricted Period and until
the satisfaction of any other conditions prescribed by the Administrator; and
(iii) unless otherwise determined by the Administrator, all of the Restricted
Stock shall be forfeited and all the rights of the Participant to such
Restricted Stock shall terminate without further obligation on the part of the
Company unless the Participant has remained a regular full-time employee of the
Company, the Subsidiaries or any combination thereof until the expiration or
termination of the Restricted Period and the satisfaction of any other
conditions prescribed by the Administrator applicable to such Restricted Stock.
At the discretion of the Administrator, cash and stock dividends with respect to
the Restricted Stock may be either currently paid or withheld by the Company for
the Participant's account, and interest may be paid on the amount of cash
dividends withheld at a rate and subject to such terms as determined by the
Administrator. Cash or stock dividends so withheld by the Administrator shall
not be subject to forfeiture. Upon the forfeiture of any Restricted Stock, such
forfeited Restricted Stock shall be transferred to the Company without further
action by the Participant. The Participant shall have the same rights and
privileges, and be subject to the same restrictions, with respect to any shares
received pursuant to Section 6.1.

     5.3 Lapse of Restrictions.  Upon the expiration or termination of the
Restricted Period and the satisfaction of any other conditions prescribed by the
Administrator, the restrictions applicable to the Restricted Stock shall lapse
and a stock certificate for the number of shares of Common Stock with respect to
which the restrictions have lapsed shall be delivered, free of any restrictions
except those that may be imposed by law, to the Participant or the Participant's
beneficiary or estate, as the case may be. The Company shall not be required to
deliver any fractional share of Common Stock but will pay, in lieu thereof, the
Fair Market Value of such fractional share in cash to the Participant or the
Participant's beneficiary or estate, as the case may be. No payment will be
required from the Participant upon the issuance or delivery of any Common Stock
pursuant to this Section 5.3, except as provided in Section 8.6. The Common
Stock certificate shall be issued and delivered not later than (i) the date that
is 2 1/2 months after the end of the Participant's taxable year for which the
Restriction Period ends and the Participant has a legally binding right to such
amounts; or (ii) the date that is 2 1/2 months after the end of the Company's
taxable year for which the Restriction Period ends and the Participant has a
legally binding right to such amounts, whichever is later.

SECTION 6  STOCK BONUS.

     6.1 Designation of Eligible Employees; Manner of Payment.  The
Administrator may, prior to or during any Bonus Period, designate the Stock
Bonus Designees eligible to receive a Stock Bonus for such Bonus Period. All
Stock Bonuses shall be paid in Bonus Stock.

                                       14
<PAGE>

     6.2 Amount of Stock Bonus.  The number of shares of Bonus Stock which a
Stock Bonus Designee shall be eligible to receive for a Bonus Period equals (i)
a portion (as determined by the Administrator) of the Stock Bonus Designee's
annual base salary on the Award Determination Date for that Bonus Period
(exclusive of any bonuses, cash or non-cash consideration paid under benefit
plans, perquisites or other non-salary compensation), divided by (ii) the Fair
Market Value of Common Stock on the Award Determination Date for that Bonus
Period. The Company shall not issue fractional shares of Bonus Stock, but will
pay in cash, in lieu thereof, such Fair Market Value on the Award Distribution
Date for that Bonus Period (if the Stock Bonus Designee continues to be employed
by the Company or the Subsidiaries on such date).

     6.3 Award of Stock Bonus.  A Stock Bonus Designee eligible to receive Bonus
Stock for a Bonus Period shall be awarded Bonus Stock on the Award Date for that
Bonus Period only if:

          6.3.1 The Stock Bonus Designee shall remain a regular full-time
     employee of the Company or the Subsidiaries through such Award Date; and

          6.3.2 The Stock Bonus Designee's employer attains the financial goals
     established for that entity during such Bonus Period, as established by the
     Administrator, and the Stock Bonus Designee meets any Performance Goals
     established by the Administrator. The determination as to the satisfaction
     of such financial goals shall be made by the Administrator on the Award
     Date for that Bonus Period, provided that the Administrator shall be
     entitled to submit any questions regarding satisfaction of such financial
     goals to the Auditors, and the Administrator shall be entitled to
     conclusively rely upon any decision made by the Auditors regarding such
     questions. In the event that a Stock Bonus Designee's employment during the
     Bonus Period shall be transferred among the Company and its Subsidiaries,
     the Administrator may make adjustments to the amount of the Stock Bonus
     and/or set new or different performance standards for the Stock Bonus
     Designee's new employer, upon written notification to the Stock Bonus
     Designee. The determination as to the satisfaction of any Performance Goals
     shall be made by the Administrator.

     6.4 Restrictions.  The Bonus Stock issued pursuant to Section 6.3 shall be
held and shall be subject to the restrictions imposed on Restricted Stock
pursuant to Section 5.2.

     6.5 Lapse of Restrictions.  Upon the expiration or termination of the
Restricted Period set forth in Section 6.4 with respect to Bonus Stock and the
satisfaction of any other conditions prescribed by the Administrator, or upon
the death or Total and Permanent Disability or Retirement of a Stock Bonus
Designee after an award of Bonus Stock, the restrictions applicable to the Bonus
Stock shall lapse and a stock certificate for the number of shares of Common
Stock with respect to which the restrictions have lapsed shall be delivered,
free of any restrictions except those that may be imposed by law, to the Stock
Bonus Designee or the Stock Bonus Designee's beneficiary or estate, as the case
may be. No payment will be required from the Stock Bonus Designee upon the
issuance or delivery of any Common Stock pursuant to this Section 6.5, except as
provided in Section 8.6. The Common Stock certificate shall be issued and
delivered not later than (i) the date that is 2 1/2 months after the end of the
Participant's taxable year for which the Restriction Period ends and the
Participant has a legally binding right to such amounts; or (ii) the date that
is 2 1/2 months after the end of the Company's taxable year for which the
Restriction Period ends and the Participant has a legally binding right to such
amounts, whichever is later.

SECTION 7  ADDITIONAL CONDITIONS APPLICABLE TO NONQUALIFIED DEFERRED
COMPENSATION UNDER SECTION 409A OF THE CODE.  In the event any grant or award
under this Plan is granted with an exercise price less than Fair Market Value of
the Common Stock subject to the grant or award on the Grant Date (regardless of
whether or not such exercise price is intentionally or unintentionally priced at
less than Fair Market Value, or such grant is materially modified and deemed a
new grant at a time when the Fair Market Value exceeds the exercise price), or
is otherwise determined to constitute "nonqualified deferred compensation"
within the

                                       15
<PAGE>

meaning of Section 409A of the Code (a "409A AWARD"), the following additional
conditions shall apply and shall supersede any contrary provisions of this Plan
or the terms of any 409A Award agreement.

     7.1 Exercise and Distribution.  No 409A Award shall be exercisable or
distributable earlier than upon one of the following:

          7.1.1 Specified Time.  A specified time or a fixed schedule set forth
     in the written instrument evidencing the 409A Award, but not later than
     after the expiration of ten (10) years from the Award Date or Grant Date.
     If the written grant instrument does not specify a fixed time or schedule,
     such time shall be the date that is the fifth anniversary of the Award Date
     or Grant Date.

          7.1.2 Separation from Service.  Separation from service (within the
     meaning of Section 409A of the Code) by the 409A Award recipient; provided
     however, if the 409A Award recipient is a "key employee" (as defined in
     Section 416(i) of the Code without regard to paragraph (5) thereof) and any
     of the Company's stock is publicly traded on an established securities
     market or otherwise, exercise or distribution under this Section 7.1.2 may
     not be made before the date which is six months after the date of
     separation from service.

          7.1.3 Death.  The date of death of the 409A Award recipient.

          7.1.4 Disability.  The date the 409A Award recipient becomes disabled
     (within the meaning of Section 7.4.2 hereof).

          7.1.5 Unforeseeable Emergency.  The occurrence of an unforeseeable
     emergency (within the meaning of Section 7.4.3 hereof), but only if the net
     value (after payment of the exercise price) of the number of shares of
     Common Stock that become issuable does not exceed the amounts necessary to
     satisfy such emergency plus amounts necessary to pay taxes reasonably
     anticipated as a result of the exercise, after taking into account the
     extent to which the emergency is or may be relieved through reimbursement
     or compensation by insurance or otherwise or by liquidation of the
     participant's other assets (to the extent such liquidation would not itself
     cause severe financial hardship).

          7.1.6 Change in Control Event.  The occurrence of a Change in Control
     Event (within the meaning of Section 7.4.1 hereof), including the Company's
     discretionary exercise of the right to accelerate vesting of such grant
     upon a Change in Control Event or to terminate the Plan or any 409A Award
     granted hereunder within 12 months of the Change in Control Event.

     7.2 Term.  Notwithstanding anything to the contrary in this Plan or the
terms of any 409A Award agreement, the term of any 409A Award shall expire and
such award shall no longer be exercisable on the date that is the later of: (a)
2 1/2 months after the end of the Company's taxable year in which the 409A Award
first becomes exercisable or distributable pursuant to Section 7 hereof and is
not subject to a substantial risk of forfeiture; or (b) 2 1/2 months after the
end of the 409A Award recipient's taxable year in which the 409A Award first
becomes exercisable or distributable pursuant to Section 7 hereof and is not
subject to a substantial risk of forfeiture, but not later than the earlier of
(i) the expiration of ten (10) years from the date the 409A Award was granted,
or (ii) the term specified in the 409A Award agreement.

     7.3 No Acceleration.  A 409A Award may not be accelerated or exercised
prior to the time specified in Section 7 hereof, except in the case of one of
the following events:

          7.3.1 Domestic Relations Order.  The 409A Award may permit the
     acceleration of the exercise or distribution time or schedule to an
     individual other than the Participant as may be necessary to comply with
     the terms of a domestic relations order (as defined in Section 414(p)(1)(B)
     of the Code).

          7.3.2 Conflicts of Interest.  The 409A Award may permit the
     acceleration of the exercise or distribution time or schedule as may be
     necessary to comply with the terms of a certificate of divestiture (as
     defined in Section 1043(b)(2) of the Code).

          7.3.3 Change in Control Event.  The Administrator may exercise the
     discretionary right to accelerate the vesting of such 409A Award upon a
     Change in Control Event or to terminate the Plan or any 409A Award granted
     thereunder within 12 months of the Change in Control Event and cancel the

                                       16
<PAGE>

     409A Award for compensation. In addition, the Administrator may exercise
     the discretionary right to accelerate the vesting of such 409A Award
     provided that the such acceleration does not change the time or schedule of
     payment of such Award and otherwise satisfies the requirements of this
     Section 7 and the requirements of Section 409A of the Code.

     7.4 Definitions.  Solely for purposes of this Section 7 and not for other
purposes of the Plan, the following terms shall be defined as set forth below:

          7.4.1 "Change in Control Event" means the occurrence of a change in
     the ownership of the Company, a change in effective control of the Company,
     or a change in the ownership of a substantial portion of the assets of the
     Company (as defined in IRS Notice 2005-1, Q&A-11, Q&A-12, Q&A-13 and
     Q&A-14).

          7.4.2 "Disabled" means a Participant (i) is unable to engage in any
     substantial gainful activity by reason of any medically determinable
     physical or mental impairment which can be expected to result in death or
     can be expected to last for a continuous period of not less than 12 months,
     or (ii) is, by reason of any medically determinable physical or mental
     impairment which can be expected to result in death or can be expected to
     last for a continuous period of not less than 12 months, receiving income
     replacement benefits for a period of not less than three months under an
     accident and health plan covering Employees.

          7.4.3 "Unforeseeable Emergency" means a severe financial hardship to
     the Participant resulting from an illness or accident of the Participant,
     the Participant's spouse, or a dependent (as defined in Section 152(a) of
     the Code) of the Participant, loss of the Participant's property due to
     casualty, or similar extraordinary and unforeseeable circumstances arising
     as a result of events beyond the control of the Participant.

SECTION 8  GENERAL PROVISIONS.

     8.1 Adjustment Provisions.

          8.1.1 If any recapitalization, reclassification, spinoff, combination,
     repurchase, stock split or reverse split or consolidation of Common Stock
     is effected;

             8.1.1.1 the outstanding shares of Common Stock are exchanged, in
        connection with a merger or consolidation of the Company or a sale by
        the Company of all or a part of its assets for a different number or
        class of shares of stock or other securities of the Company or for
        shares of the stock or other securities of any other corporation;

             8.1.1.2 new, different or additional shares or other securities of
        the Company or of another corporation are received by the holders of
        Common Stock; or

             8.1.1.3 any distribution is made to the holders of the Common Stock
        other than a cash dividend; then the Administrator shall make
        appropriate adjustments to:

                8.1.1.3.1. the number and class of shares or other securities
           that may be issued or transferred pursuant to Section 3 hereof or
           pursuant to outstanding Options, SARs, awards of Restricted Stock or
           awards of Bonus Stock;

                8.1.1.3.2. the number and class of shares or other securities
           available for issuance under the Plan; and

                8.1.1.3.3. the purchase price to be paid per share under
           outstanding Options, the number of shares to be issued pursuant to
           Section 3, or the amount to be paid by the Company upon an exercise
           of an SAR under Section 4.1.3.

          8.1.2 Upon the dissolution or liquidation of the Company, the Plan
     shall terminate, and all previously granted awards shall lapse on the date
     of such dissolution or liquidation.

          8.1.3 In the event of a Change in Control, dissolution or liquidation
     of the Company, or any corporate separation or division, including, but not
     limited to, a split-up, a split-off or a spin-off, or a sale

                                       17
<PAGE>

     of substantially all of the assets of the Company; a merger or
     consolidation in which the Company is not the surviving entity; or a
     reverse merger in which the Company is the surviving entity, but the shares
     of Common Stock outstanding immediately preceding the merger are converted
     by virtue of the merger into other property, whether in the form of
     securities, cash or otherwise, then, the Company, to the extent permitted
     by applicable law, but otherwise in the sole discretion of the
     Administrator may provide for: (i) the continuation of outstanding grants
     by the Company (if the Company is the surviving entity); (ii) the
     assumption of the Plan and such outstanding grants by the surviving entity
     or its parent; (iii) the substitution by the surviving entity or its parent
     of grants with substantially the same terms (including an award to acquire
     the same consideration paid to the shareholders in the transaction
     described in this Section 8.1.3) for such outstanding grants and, if
     appropriate, subject to the equitable adjustment provisions of Section
     8.1.1 hereof; (iv) the cancellation of such outstanding grants in
     consideration for a payment equal in value to the Fair Market Value of
     vested grants, or in the case of an Option, the difference between the Fair
     Market Value and the exercise price for all shares of Common Stock subject
     to exercise (i.e., to the extent vested) under any outstanding Option; or
     (v) the cancellation of such outstanding grants without payment of any
     consideration. If such Options, SARs, Restricted Stock or Bonus Stock would
     be canceled without consideration the grants shall become fully exercisable
     and all forfeiture restrictions on such Stock shall lapse. The Participant
     shall have the right, exercisable during the later of the ten-day period
     ending on the fifth day prior to such merger or consolidation or ten days
     after the Administrator provides the grant holder a notice of cancellation,
     to exercise such grants in whole or in part without regard to any
     installment exercise provisions in the grant agreement. In addition, the
     Administrator, in its discretion, may provide for acceleration of unvested
     awards in connection with any of the alternatives described above.

          8.1.4 Adjustments under Section 8.1.1 shall be made at the sole
     discretion of the Administrator, and its decision shall be binding and
     conclusive, subject to any legally required approval of any other person or
     entity.

          8.1.5 Except as provided in Section 8.1.1, the issuance by the Company
     of shares of stock of any class, or securities convertible into shares of
     stock of any class, shall not affect the Options, Retainer Stock, SARs,
     Restricted Stock or Bonus Stock.

     8.2 Additional Conditions.  Any shares of Common Stock issued or
transferred under any provision of the Plan may be issued or transferred subject
to such conditions, in addition to those specifically provided in the Plan, as
the Administrator or the Board may impose.

     8.3 No Right to Employment or Directorship.  Nothing in the Plan or in any
instrument executed pursuant hereto shall confer upon any Employee or director
any right to continue in the employ of the Company or the Subsidiaries, or to
serve as a director of the Company, or shall affect the right of the Company or
the Subsidiaries to terminate the employment of any Employee, with or without
Cause.

     8.4 Legal Restrictions.  The Company will not be obligated to issue shares
of Common Stock or make any payment pursuant to the Plan if counsel to the
Company determines that such issuance or payment would violate any law or
regulation of any governmental authority or any agreement between the Company
and any national securities exchange or automated quotation system upon which
the Common Stock is then listed or quoted. In connection with any stock issuance
or transfer, the person acquiring the shares shall, if requested by the Company,
give assurances and take any actions satisfactory to counsel to the Company
regarding such matters as the Company may deem desirable to assure compliance
with all legal requirements. The Company shall in no event be obligated to take
any action in order to cause the exercise of any Option or SAR.

     8.5 No Rights as Shareholders.  Except as provided herein with respect to
Retainer Stock, Restricted Stock and Bonus Stock, no Participant or Stock Bonus
Designee, and no beneficiary or other person claiming through a Participant or
Stock Bonus Designee, shall have any interest in any shares of Common Stock
allocated for the purposes of the Plan or subject to any Option or SAR until
such shares of Common Stock shall have been transferred to the Participant or
such person. Furthermore, the existence of the Options, SARs, Restricted Stock
or Bonus Stock shall not affect the right or power of the Company or its
shareholders to (i) make adjustments, recapitalizations, reorganizations or
other changes in the Company's capital

                                       18
<PAGE>

structure or its business; (ii) issue any bonds, debentures, preferred or prior
preference stocks affecting the Common Stock of the Company or the rights
thereof; (iii) dissolve or liquidate the Company, or effectuate a sale or
transfer of all or any part of its assets or business; or (iv) take any other
corporate action, whether of a similar character or otherwise.

     8.6 Withholding Taxes.

          8.6.1 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.

          8.6.2 Whenever shares of Common Stock are to be delivered or an award
     is considered wages pursuant to the Plan, the Company shall be entitled to
     require as a condition of delivery that the Participant or Stock Bonus
     Designee 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.

          8.6.3 To the extent provided by the terms of any written instrument
     evidencing a grant under this Plan and subject to the discretion of the
     Administrator, the Participant may satisfy any federal, state or local tax
     withholding obligation relating to the exercise of or acquisition of Common
     Stock under any grant by any of the following means (in addition to the
     Company's right to withhold from any compensation paid to the Participant
     by the Company) or by a combination of such means: (a) tendering a cash
     payment; (b) authorizing the Company to withhold shares of Common Stock
     from the shares of Common Stock otherwise issuable to the Participant as a
     result of the exercise or acquisition of Common Stock under the award,
     provided, however, that no shares of Common Stock are withheld with a value
     exceeding the minimum amount of tax required to be withheld by law; (c)
     delivering to the Company previously owned and unencumbered shares of
     Common Stock of the Company or (d) by execution of a recourse promissory
     note.

     8.7 Choice of Law.  The validity, interpretation and administration of the
Plan and of any rules, regulations, determinations or decisions made thereunder,
and the rights of any and all persons having or claiming to have any interest
therein or thereunder, shall be determined exclusively in accordance with the
laws of the State of Delaware. Without limiting the generality of the foregoing,
the period within which any action in connection with the Plan must be commenced
shall be governed by the laws of the State of Delaware without regard to the
place where the act or omission complained of took place, the residence of any
party to such action or the place where the action may be brought.

     8.8 Changes to the Plan and Awards.

          8.8.1 Changes to the Plan.  The Board at any time, and from time to
     time, may amend or terminate the Plan. However, except as provided in
     Section 8.1 relating to adjustments upon changes in Common Stock, no
     amendment shall be effective unless approved by the shareholders of the
     Company to the extent shareholder approval is necessary to satisfy any
     applicable law or any Nasdaq or securities exchange listing requirements.
     At the time of such amendment, the Board shall determine, upon advice from
     counsel, whether such amendment will be contingent on shareholder approval.
     It is expressly contemplated that the Board may amend the Plan in any
     respect the Board deems necessary or advisable to provide eligible
     Employees with the maximum benefits provided or to be provided under the
     provisions of the Code and the regulations promulgated thereunder relating
     to Incentive Stock Options or to the nonqualified deferred compensation
     provisions of Section 409A of the Code and/or to bring the Plan and/or
     awards granted under it into compliance therewith. Rights under any award
     granted before amendment of the Plan shall not be impaired by any amendment
     of the Plan unless (a) the Company requests the consent of the Participant
     and (b) the Participant consents in writing. However, a cancellation of an
     award where the Participant receives a payment equal in value to the Fair
     Market Value of the vested award or, in the case of vested Options, the
     difference between the Fair Market Value and the exercise price, shall not
     be an impairment of the Participant's rights that requires consent.

                                       19
<PAGE>

          8.8.2 Changes to Outstanding Awards.  Except as limited under Section
     8.8.1, the Board may amend, alter, suspend, discontinue, or terminate any
     grant or award theretofore granted hereunder and any agreement relating
     thereto, provided, however, that, without the consent of the affected
     Participant, no such amendment, alteration, suspension, discontinuation, or
     termination may impair the rights of such Participant under or with respect
     to any award theretofore granted or paid to him or her or any agreement
     relating thereto. However, a cancellation of an award where the Participant
     receives a payment equal in value to the Fair Market Value of the vested
     award or, in the case of vested Options, the difference between the Fair
     Market Value and the exercise price, shall not be an impairment of the
     Participant's rights that requires consent.

          8.8.3 Shareholder Approval.  The Board may, in its sole discretion,
     submit any other amendment to the Plan for shareholder approval, including,
     but not limited to, amendments to the Plan intended to satisfy the
     requirements of Section 162(m) of the Code and the regulations thereunder
     regarding the exclusion of performance-based compensation from the limit on
     corporate deductibility of compensation paid to certain executive officers.

     8.9 Compliance with Rule 16b-3.  It is the intent of the Company that this
Plan comply in all respects with applicable provisions of Rule 16b-3 in
connection with any award to a person who is subject to Section 16 of the
Exchange Act. Accordingly, if any provision of this Plan or any agreement
relating to an award does not comply with the requirements of Rule 16b-3 as then
applicable to any such person, such provision will be construed or deemed
amended to the extent necessary to conform to such requirements with respect to
such person. In addition, the Board shall have no authority to make any
amendment, alteration, suspension, discontinuation, or termination of the Plan
or any agreement hereunder or take other action if such authority would cause a
Participant's transactions under the Plan to not be exempt under Rule 16b-3.

     8.10 Effective Date and Duration of Plan.  The Plan will be effective March
31, 2005. The Plan will remain in effect until the earlier of (i) March 31,
2015, but no later than the day before the 10th anniversary of the effective
date, (ii) termination of the Plan pursuant to Section 8.8.1, or (iii) such time
as no Common Stock remains available for issuance under the Plan and the Company
has no further rights or obligations under the Plan with respect to awards
granted or paid under the Plan. No award shall be granted pursuant to the Plan
after such date, but awards theretofore granted may extend beyond that date. The
adoption of the Plan is subject to approval of the Company's stockholders, which
approval must be obtained within 12 months after its adoption by the Board. If
the Company's stockholders fail to approve the Plan within 12 months after its
adoption by the Board, any grants, awards or sales of Common Stock that have
already occurred shall be rescinded, and no additional grants, awards or sales
shall be made thereafter under the Plan.

     8.11 Execution.  To evidence the adoption of the Plan by the Board, the
Company has caused its authorized officer to execute the Plan as of March 31,
2005.

                                          KCS ENERGY, INC.

                                          By: /s/ J.T. Leary
                                             -----------------------------------
                                             Joseph T. Leary
                                             Vice President and Chief Financial
                                             Officer

                                       20exv10w3

 

EXHIBIT 10.3

SECOND AMENDMENT

TO

RIGHTS AGREEMENT

     This Second Amendment to Rights Agreement, made effective as of the 9th day of June, 2005,
amends that certain Rights Agreement dated as of March 13, 2002 between Noble Corporation, a Cayman
Islands exempted company limited by shares (the “Company”), and UMB Bank, N.A., as Rights Agent
(the “Rights Agent”), as amended by First Amendment to Rights Agreement dated as of March 12, 2003
(as so amended, the “Rights Agreement”).

     WHEREAS, Section 27 of the Rights Agreement provides in part that prior to the “Distribution
Date” (as defined in the Rights Agreement), and subject to the last sentence of Section 27, the
Board of Directors of the Company and the Rights Agent may amend any provision of the Rights
Agreement in any manner; and

     WHEREAS, on June 9, 2005, the Board of Directors of the Company approved amendments of the
Rights Agreement to extend the “Final Expiration Date” (as defined in the Rights Agreement) from
July 10, 2005 to July 10, 2015, and to increase the “Purchase Price” (as defined in the Rights
Agreement) with respect to each “Right” (as defined in the Rights Agreement) from US$120.00 to
US$220.00;

     NOW THEREFORE, the Rights Agreement is hereby amended as follows:

     1. The definition of “Purchase Price” contained in Section 1 of the Rights Agreement is
hereby amended to read in its entirety as follows:

     “‘Purchase Price’ with respect to each Right shall mean US$220.00, as such
amount may from time to time be adjusted as provided herein, and shall be payable in lawful
money of the United States of America. All references herein to the Purchase Price shall
mean the Purchase Price as in effect at the time in question.”

     2. Section 7(a) of the Rights Agreement is hereby amended in its entirety to
read as follows:

     “(a) Subject to Section 7(e) hereof and except as otherwise provided herein (including
Section 24 hereof), each Right shall entitle the registered holder thereof, upon exercise
thereof as provided herein, to purchase for the Purchase Price, at any time after the
Distribution Date and at or prior to the earliest of (i) the close of business on July 10,
2015 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as
provided in Section 23 hereof (the “Redemption Date”) and (iii) the time at which such
Rights are exchanged as provided in Section 24 hereof, one one-hundredth of a Preferred
Share, subject to adjustment from time to time as provided in Section 11 or Section 13
hereof.”

5

 

     The remainder of the Rights Agreement shall be unaffected by this Amendment and remain in full
force and effect.

     IN WITNESS WHEREOF, the Company and the Rights Agent have duly executed this Second Amendment
to Rights Agreement effective as of the date first above written.

	 	 	 	 	 
	 	The “Company”

NOBLE CORPORATION

 	 
	 	By:  	/s/ Mark A. Jackson
 	 
	 	 	Name:  	Mark A. Jackson 	 
	 	 	Title:  	Senior Vice President, Chief
Operating Officer and Chief Financial
Officer 	 
	 
	 	The “Rights Agent”

UMB BANK, N.A.

 	 
	 	By:  	/s/ K. Scott Mathews
 	 
	 	 	Name:  	K. Scott Mathews 	 
	 	 	Title:  	Vice President and Manager of
Corporate Trust Administration 	 
	 

6

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