Document:

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                                                                   EXHIBIT 10.31

[FAIRCHILD SEMICONDUCTOR LETTERHEAD]

June 5, 2001                                                        Attachment B

Hans Wildenberg
2709 Hillview Green Lane
Austin, TX 78703

                           RE: RESTRICTED STOCK GRANT

Dear Hans:

This letter sets forth an agreement between you and Fairchild Semiconductor
International, Inc., a Delaware corporation (the "Company"), regarding the
Company's grant to you of certain shares of restricted stock in connection with
your employment as Executive Vice President, Worldwide Sales and Marketing, of
the Company's wholly owned subsidiary, Fairchild Semiconductor Corporation.

1. SHARES GRANTED

In partial consideration for your decision to accept employment with Fairchild
Semiconductor Corporation, the Company shall issue and grant to you, on the date
you begin employment, at no cost to you but subject to the vesting and
forfeiture provisions, transfer restrictions and other terms and conditions
described in this letter, 20,000 shares of the Company's Class A Common Stock
(the "Restricted Shares"), which shares shall be duly authorized, validly issued
and non-assessable.

2. VESTING AND FORFEITURE PROVISIONS

Your Restricted Shares shall vest (becoming "Vested Shares") on the following
Vesting Dates in the following respective amounts:

<TABLE>
<CAPTION>
Vesting Date          Number of Shares to Vest      Total Number of Vested Shares
------------          ------------------------      -----------------------------
<S>                   <C>                           <C>
November 1, 2002               6,000                            6,000
November 1, 2003              10,000                           16,000
November 1, 2004               4,000                           20,000
</TABLE>

"Unvested Shares" means any Restricted Shares that are not Vested Shares.

In the event your employment with Fairchild Semiconductor Corporation is
terminated for any reason other than your death or your Permanent Disability (as
defined below) (including without

<PAGE>

limitation as a result of your voluntary resignation or termination by the
Company with or without cause), any and all right, title and interest that you
or any Permitted Transferee (as defined below) may have to or in any Unvested
Shares shall be automatically and immediately forfeited as of the date of such
termination and all such forfeited shares shall revert to the Company treasury
as of such date without any action by you or the Company. "Permanent Disability"
shall mean a permanent and total incapacity to perform services substantially
similar to those provided to the Company or any of its subsidiaries immediately
prior to the date of such disability. Upon such event of forfeiture, you (or any
Permitted Transferee(s)) shall surrender to the Company for cancellation stock
certificates representing at least the number of Unvested Shares at the time of
forfeiture, provided that the Company shall promptly thereafter issue new stock
certificates representing any Vested Shares represented by such surrendered
certificates as of such termination date. In the event your employment with
Fairchild Semiconductor Corporation is terminated as a result of your death or
your Permanent Disability, then all Unvested Shares as of the date of such
termination shall automatically become Vested Shares as of such date.

Vested Shares shall not be subject to the foregoing forfeiture provisions.

3. TRANSFER RESTRICTIONS

You shall not, without the prior written consent of the Company, Transfer (as
defined below) any Unvested Shares except to a Permitted Transferee (as defined
below).

      "Transfer" includes the making of any sale, exchange, assignment,
      hypothecation, gift, security interest, pledge or other encumbrance, or
      any agreement to do any of the foregoing, any voting trust or other
      agreement or arrangement with respect to the transfer of voting rights or
      any other beneficial interest in any of the Unvested Shares, the creation
      of any other claim thereto or any other transfer or disposition
      whatsoever, whether voluntary or involuntary, affecting the right, title,
      interest or possession in or to the Unvested Shares.

      "Permitted Transferee" means your spouse, children or grandchildren (in
      each case, natural or adopted), any trust for the sole benefit of such
      persons, any charitable trust of which you are the grantor, or any
      corporation, limited liability company or partnership in which you, your
      spouse and/or your children or grandchildren (in each case, natural or
      adopted) directly and beneficially own all the equity interests, provided
      that no person or entity shall be a Permitted Transferee unless such
      person or entity enters into an agreement with the Company binding such
      person or entity to the same extent as you are bound hereby.

Vested Shares shall not be subject to the foregoing restrictions on Transfer,
although they shall be subject to Transfer restrictions under applicable
securities or other laws.
<PAGE>

4. TAX GROSS-UP

General. You will have certain tax obligations relating to the first 10,000
Restricted Shares (the "83(b) Shares") on the date you begin employment, and
certain additional tax obligations relating to the remaining 10,000 Restricted
Shares (the "Ordinary Income Shares") on the last two Vesting Dates, as further
explained below. The Company will pay some, but not all, of these tax
obligations, as further explained below.

Tax Gross-Up With Respect to 83(b) Shares. By making the Section 83(b) election
discussed in section 5 below with respect to the 83(b) Shares, you will have
ordinary income in the 2001 tax year equal to the market value of those shares
on the date you receive them (i.e., the date you begin employment). The Company
shall pay, directly to applicable tax authorities, an amount equal to any United
States federal and/or state income, Social Security, unemployment or Medicare
taxes (and any other U.S. federal or state taxes ordinarily imposed on wages or
income) that result from income recognized by you upon your receipt of the 83(b)
Shares.

No Tax Gross-Up With Respect to Ordinary Income Shares. You agree that your
Section 83(b) election discussed in section 5 below will not cover the Ordinary
Income Shares. Accordingly, you will have ordinary income with respect to those
shares on the Vesting Dates on which you receive those shares. The amount of
ordinary income will equal the fair market value of the Ordinary Income Shares
received on each applicable Vesting Date. In other words, you will have ordinary
income on November 1, 2003 equal to the fair market value of 6,000 shares on
that date, and ordinary income on November 1, 2004 equal to the fair market
value of 4,000 shares on that date. The Company will not reimburse you for any
taxes you have to pay as a result of such income.

      Agreement to Sell Shares. In addition, to satisfy the Company's tax
      withholding obligations relating to your receipt of Ordinary Income
      Shares, you agree to sell, promptly following November 1, 2003 and
      November 1, 2004, and in no event later than the date such obligations are
      due to be remitted to applicable tax authorities, a sufficient number of
      Vested Shares received on those dates to satisfy such withholding
      obligations, and not to use the proceeds of any sale of such Vested Shares
      until such withholding obligations have been satisfied. Alternatively, you
      may pay the Company in cash an amount sufficient to satisfy such
      withholding obligations.

IMPORTANT: YOU MAY HAVE ADDITIONAL TAX CONSEQUENCES, BASED ON YOUR PERSONAL
CIRCUMSTANCES, AS A RESULT OF YOUR RECEIPT OF RESTRICTED SHARES THAT ARE UNKNOWN
TO, OR NOT DETERMINABLE BY, THE COMPANY. YOU ARE STRONGLY URGED TO CONSULT YOUR
PERSONAL TAX ADVISOR TO DETERMINE ANY SUCH CONSEQUENCES RESULTING FROM THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.
<PAGE>

5. FILING OF SECTION 83(B) ELECTION

You shall timely file an appropriate form of Section 83(b) Election with respect
to the 83(b) Shares with the Internal Revenue Service Center with which you file
your federal tax return and provide a copy to the Company, all within 30 days
after you receive those shares. YOU ACKNOWLEDGE AND AGREE THAT SUCH SECTION
83(B) ELECTION MUST BE FILED BY YOU WITH THE I.R.S. BY SUCH 30-DAY DEADLINE AND
THAT NO EXTENSION OF THE DEADLINE IS AVAILABLE BY LAW. Failing to file the
Section 83(b) Election by the deadline could result in adverse tax consequences
to you, including without limitation the recognition of additional income in the
tax years when the 83(b) Shares vest, and the Company assumes no liability or
obligation for any such adverse tax consequences. In addition, a copy of the
election must be included with your federal tax return for the 2001 tax year. A
suggested form of Section 83(b) Election is attached.

6. REPRESENTATIONS AND WARRANTIES MADE BY YOU

By signing where indicated below, you represent and warrant to the Company that:

      (a)   you are receiving the Restricted Shares not with a view to
            distribution thereof that would violate the U.S. Securities Act of
            1933, as amended (the "Securities Act"), or the applicable
            securities laws of any state, and that you will not distribute any
            Restricted Shares in violation of the Securities Act or any such
            state laws;

      (b)   you understand that the Restricted Shares have not been registered
            under the Securities Act or the securities laws of any state, and
            that the Restricted Shares must be held indefinitely unless
            subsequently registered under the Securities Act and any applicable
            state securities laws or unless an exemption (such as that currently
            provided by Rule 144 under the Securities Act) from such
            registration is available;

      (c)   you understand that the exemption from registration provided by Rule
            144 under the Securities Act will not be available to you until one
            year has elapsed after you receive the Restricted Shares;

      (d)   you understand and acknowledge that the Restricted Shares are
            subject to a substantial risk of forfeiture as provided in Section 2
            above; and

      (e)   you understand and acknowledge (i) that the value of the Restricted
            Shares is subject to various risks and uncertainties facing the
            Company, as described in the Company's filings with the Securities
            and Exchange Commission, (ii) that you are familiar with and
            understand such risks and (iii) that the value of the Restricted
            Shares may decline.

<PAGE>

7. LEGENDS

All stock certificates representing Restricted Shares will bear the following
legend in addition to any other legend required under applicable law:

            THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
            OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS
            OF ANY STATE AND MAY NOT BE TRANSFERRED WITHOUT REGISTRATION UNDER
            THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS OR AN OPINION
            OF COUNSEL, SATISFACTORY TO THE COMPANY, THAT SUCH REGISTRATION IS
            NOT REQUIRED.

In addition, all stock certificates representing Unvested Shares will bear the
following legend:

            THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE ALSO SUBJECT FOR
            A PERIOD OF TIME TO RESTRICTIONS ON TRANSFER, AND PROVISIONS THAT
            REQUIRE SUCH SHARES TO BE FORFEITED TO THE COMPANY UNDER CERTAIN
            CIRCUMSTANCES, UNDER THE TERMS OF A RESTRICTED STOCK AGREEMENT, A
            COPY OF WHICH AGREEMENT IS ON FILE AT THE PRINCIPAL OFFICES OF THE
            COMPANY, AND THE TRANSFER OR OTHER DISPOSITION OF SUCH SECURITIES IS
            PERMITTED ONLY UPON PROOF OF COMPLIANCE WITH THE TERMS OF SUCH
            AGREEMENT. ANY PURPORTED TRANSFER NOT IN COMPLIANCE WITH THE TERMS
            OF SUCH AGREEMENT SHALL BE VOID AND OF NO EFFECT WITH RESPECT TO THE
            SECURITIES REPRESENTED HEREBY OR THE ISSUER THEREOF.

8. NOTATION

The Company reserves the right to enter or cause to be entered a notation on the
appropriate transfer records of the Company with respect to the restrictions on
Transfer referred to in this Agreement.

9. NO EFFECT ON EMPLOYMENT

Nothing herein contained shall confer on you any right to remain in the employ
of Fairchild Semiconductor Corporation or any of its affiliates.

Please indicate your agreement to the terms hereof by signing a copy of this
letter where indicated below and returning such copy, as signed, to the
undersigned officer of the Company.
<PAGE>

Yours very truly,

FAIRCHILD SEMICONDUCTOR
INTERNATIONAL, INC.

By:  /s/ Daniel E. Boxer
     ----------------------------
     Daniel E. Boxer
     Executive Vice President

ACKNOWLEDGED AND AGREED:

/s/ Hans Wildenberg
----------------------------
Hans Wildenberg
<PAGE>

 [DRAFT ONLY; PLEASE CONSULT YOUR PERSONAL TAX ADVISOR BEFORE FILING THIS FORM]

                             Section 83(b) Election

              TO BE FILED WITHIN 30 DAYS AFTER THE DATE OF TRANSFER

Internal Revenue Service Center

_______________________,________

                     ELECTION TO INCLUDE IN GROSS INCOME IN
                    YEAR OF TRANSFER OF PROPERTY PURSUANT TO
                   SECTION 83(b) OF THE INTERNAL REVENUE CODE

            The undersigned hereby makes an election pursuant to Section 83(b)
of the Internal Revenue Code of 1986, as amended, to include in my gross income
for the 2001 taxable year the fair market value of the property described below.
In this regard, the undersigned supplies the following information in accordance
with Treas. Reg. Section 1.83-2(e).

                  1.    The name, address and taxpayer identification number of
                        the undersigned are:

                               Hans Wildenberg
                               ____________________________
                               ____________________________
                               ____________________________

                               Social Security Number: __________________

                  2.    Description of property with respect to which the
                        election is being made:

                              10,000 shares of Class A Common Stock, par value
                              $.01 per share (the "property"), of Fairchild
                              Semiconductor International, Inc., a Delaware
                              corporation (the "Corporation").

<PAGE>

                  3.    The date on which the property was transferred is
                        ___________, 2001. The taxable year to which this
                        election relates is calendar year 2001.

                  4.    The nature of restrictions to which the property is
                        subject:

                        If before November 1, 2002, the taxpayer terminates
                        employment with a wholly owned subsidiary of the
                        Corporation, the taxpayer will forfeit all right, title
                        and interest in or to all of the property.

                        If on or after November 1, 2002 but before November 1,
                        2003, the taxpayer terminates employment with a wholly
                        owned subsidiary of the Corporation, the taxpayer will
                        forfeit all right, title and interest in or to 4,000
                        shares of the property.

                        In other words, restrictions affecting 6,000 shares will
                        lapse on November 1, 2002 and restrictions affecting the
                        remaining 4,000 shares will lapse on November 1, 2003
                        (assuming taxpayer remains employed on such dates).

                  5.    The fair market value at time of transfer (determined
                        without regard to any restrictions other than
                        restrictions which by their terms will never lapse) of
                        the property with respect to which this election is
                        being made was:

                        $_____________ (or $______ per share of Class A Common
                        Stock).

                  6.    The amount paid by the undersigned for this property
                        was:

                        Nil.

                  7.    A copy of this statement has been furnished to the
                        Corporation.

                                                Very truly yours,

                                                ________________________________
                                                Hans Wildenberg<PAGE>

                                                                    Exhibit 10.6

                      FISHER SCIENTIFIC INTERNATIONAL INC.
                          INCENTIVE COMPENSATION PLAN

           (AS AMENDED AND RESTATED EFFECTIVE AS OF JANUARY 1, 2002)

                                   ARTICLE I.

                                  INTRODUCTION

     SECTION 1.1.  Purposes.  The purposes of the Fisher Scientific
International Inc. Incentive Compensation Plan (the "Plan") are (a) to foster
and promote the long-term financial success of Fisher Scientific International
Inc. (the "Company") and its affiliates and (b) to increase materially
stockholder value by (i) motivating superior performance by employees and
service providers of the Company and (ii) enabling the Company to retain the
services of outstanding employees upon whose judgment, interest and special
effort the successful conduct of its operations is largely dependent.

     SECTION 1.2.  Types of Awards.  Awards granted under this Plan may be
either "Long-Term Performance Awards" granted under the Plan's Long-Term Program
(Article II) or annual bonuses awarded under the Plan's Short-Term Program
(Article III). Such awards shall generally be earned based upon the Company's
financial and operating performance measured against one or more "Incentive
Targets" pre-established by the Compensation Committee of the Company's Board of
Directors (the "Committee"). The Incentive Targets shall include Company-wide
and/or operating unit performance in any of the following areas: (i) earnings
per share, (ii) revenues, (iii) operating cash flow, (iv) operating earnings,
(v) working capital to sales ratio and (vi) return on capital.

     SECTION 1.3.  Effective Date.  As initially adopted, the Plan became
effective as of June 15, 1993 and was initially approved by the Company's
shareholders in 1994. The Plan has been amended and restated, effective as of
January 1, 2002.

                                  ARTICLE II.

                               LONG TERM PROGRAM

     SECTION 2.1.  Eligibility.  The Committee in its sole discretion shall
select those key employees and service providers of the Company and its
affiliates to receive Long-Term Performance Awards under this Plan. Each
Long-Term Performance Award shall relate to performance of the Company over more
than one calendar year (the "Performance Period"), as determined by the
Committee. An employee or service provider may be selected to receive Long-Term
Performance Awards in respect of more than one Performance Period. Unless
otherwise determined by the Committee, any non-employee service provider of the
Company who receives a Long-Term Performance Award shall be considered to
provide service for the Company (and solely for purposes of determining such
person's rights under the Plan that are related to the termination of services,
shall be deemed to be an employee of or employed by the Company) for so long as
such person shall continue to provide services to the Company or its affiliates.
Participants who receive a Long-Term Performance Award are herein referred to as
"Long-Term Participants."

     SECTION 2.2.  Grant of Long-Term Performance Awards.  Prior to the
beginning of the first year in a Performance Period (or such later date selected
by the Committee consistent with the requirements of Section 162(m) of the
Code), the Committee shall grant a Long-Term Performance Award to person
designated by the Committee as a Long-Term Participant in respect of such
Performance Period. At the time of grant of each Long-Term Performance Award (or
such later time selected by the Committee), the Committee shall determine the
target amount(s) and maximum amount(s) that may be earned in respect of such
Long-Term Performance Award or portion thereof. If an individual becomes a
Long-Term Participant after the beginning of a Performance Period, the Committee
shall determine whether, and on what terms and conditions, such participant
shall be
<PAGE>

entitled to a Long-Term Performance Award for such Performance Period. A
Long-Term Performance Award shall be evidenced by such documentation deemed
appropriate by the Committee. Such documentation may contain terms and
conditions relating to the award, including, without limitation, the target
amount and/or maximum amount that may be earned pursuant to the Long-Term
Performance Award or any portion thereof, the Incentive Targets and Incentive
Formulas (as described below) applicable in respect of such award, and such
other terms and conditions, not inconsistent with this Plan, as the Committee
may in its sole discretion determine.

     SECTION 2.3.  Incentive Target and Incentive Formula.  Prior to the
beginning of each year in each Performance Period (or such later date selected
by the Committee consistent with the requirements of Section 162(m) of the
Code), the Committee shall determine the Incentive Target and the Incentive
Formula applicable to the portion of the Long-Term Performance Award allocated
by the Committee for such year (a "Performance Segment"). The "Incentive
Formula" shall specify the formula for determining the percentages of the
Performance Segment that may be earned if actual performance is less than, equal
to or greater than the applicable Incentive Target. Notwithstanding the
generality of the foregoing, in no event shall any employee who is a "Covered
Employee" (within the meaning of Section 162(m) of Internal Revenue Code of
1986, as amended, or any successor statute thereto (the "Code")) for the
relevant fiscal year of the Company be entitled to receive an amount in respect
of any one Performance Segment in excess of the lesser of (a) $2,000,000 and (b)
200% of such Covered Employee's annual base salary at the date that the
Long-Term Performance Award is granted. The Committee may, at any time and from
time to time, adjust the Incentive Target and/or Incentive Formula applicable to
a Performance Segment; provided that no such adjustment shall be made in the
case of a Long-Term Performance Award granted to a Covered Employee for the
relevant fiscal year of the Company, unless such adjustment can be made without
causing the Long-Term Performance Award to cease to qualify as other performance
based compensation under Section 162(m) of the Code. Following the end of each
year in a Performance Period, the Committee shall determine the amount of the
Performance Segment earned by a Participant for such year (the "Earned
Performance Segment") calculated in accordance with the Incentive Formula
applicable to such year.

     SECTION 2.4.  Vesting of Long-Term Performance Award.  A Participant shall
have no rights with regard to any portion of a Long-Term Performance Award until
such time as such portion of the Long-Term Performance Award becomes an Earned
Performance Segment and such Earned Performance Segment becomes vested. Each
Earned Performance Segment shall, subject to the Long-Term Participant's
continuous employment with the Company through the applicable Payment Date(s)
(as defined below), vest and become payable in cumulative installments as
follows: (a) 25% shall become vested and payable as soon as practicable after
the completion of the audit by the Company's independent public accountants of
the Company's financial statements for the Performance Segment (the "First
Payment Date"), (b) 25% shall become vested and payable as of the first
anniversary of the First Payment Date (the "Second Payment Date") and (c) 50%
shall become vested and payable as of the second anniversary of the First
Payment Date (the "Third Payment Date" and, together with the First Payment Date
and the Second Payment Date, the "Payment Dates").

     SECTION 2.5.  Accelerated Vesting.  Notwithstanding anything in Section 2.4
to the contrary, the Committee may, in its sole discretion, accelerate the time
or times at which any portion of a Long-Term Performance Award becomes an Earned
Performance Segment (irrespective of the applicable Incentive Target and
Incentive Formula) and the time or times at which each Earned Performance
Segment shall vest (irrespective of a Participant's continued employment or
provision of services); provided that no such acceleration shall apply in the
case of a Long-Term Performance Award granted to a Covered Employee for the
relevant fiscal year of the Company unless such acceleration would not cause the
Long-Term Performance Award to cease to qualify as other performance based
compensation under Section 162(m) of the Code. Moreover, if a participant's
employment terminates due to the participant's death or Total Disability (as
defined herein), any portion of such participant's Earned Performance Segments
that have not previously vested shall vest immediately. For purposes of this
Plan, "Total Disability" shall mean the permanent inability of an employee, as a
result of accident or sickness, to perform any and every duty pertaining to such
employee's occupation or employment for which the employee is suited by reason
of the employee's previous training, education and experience.

     SECTION 2.6.  Plan Termination.  Unless otherwise determined by the
Committee, if the Committee elects to terminate the Plan pursuant to Section
6.1, any Earned Performance Segment that has not previously vested
<PAGE>

shall vest on the applicable Payment Date provided the Participant remains in
the continuous employment of the Company on such Payment Date. If the Plan is
terminated, the Committee shall determine the extent to which any unearned
portion of outstanding Long-Term Performance Awards shall (i) continue to be
earned and vested in accordance with the terms of the Plan prior to such
termination, (ii) be automatically cancelled without providing for any
subsequent payment therefore or (iii) continue to be earned and vested based
upon such terms and conditions as the Committee may determine, provided that in
the case of a Long-Term Performance Award granted to a Covered Employee for the
relevant fiscal year of the Company, such terms and conditions may not be more
favorable to the Covered Employee than those previously in effect, unless such
favorable adjustment to such terms and conditions would not cause the Long-Term
Performance Award to cease to qualify as other performance based compensation
under Section 162(m) of the Code.

     SECTION 2.7.  Forfeiture of Performance Award.  Except as otherwise
provided in Sections 2.5 or 2.6, if a Long-Term Participant is not an employee
on an applicable Payment Date, the Long-Term Participant shall forfeit all
rights with respect to any portion of any Long-Term Performance Award that has
not yet become an Earned Performance Segment and any unvested Earned Performance
Segment. Notwithstanding the foregoing, except in the case of a Long-Term
Performance Award granted to a Covered Employee for the relevant fiscal year of
the Company, if the Long-Term Participant's employment is terminated for other
than "Cause" (as defined herein) the Committee may, in its discretion, determine
that all or a portion of any Long-Term Performance Award held by such Long-Term
Participant shall have been earned and vested, and shall have not been
forfeited. If a Long-Term Participant's employment is terminated for Cause, the
Long-Term Participant shall forfeit all rights with respect to any Performance
Award. For purpose of this Plan, "Cause" means (a) the participant's failure
substantially to perform his or her duties as an employee of the Company or (b)
the participant's engaging in misconduct that is injurious to the Company.

                                  ARTICLE III.

                               SHORT-TERM PROGRAM

     SECTION 3.1.  Eligibility.  For each fiscal year of the Company, those
employees who are Covered Employees for such fiscal year may be selected by the
Committee to participate in this Short-Term Program.

     SECTION 3.2.  Establishment of Incentive Targets and Incentive Formula.
Prior to the beginning of each fiscal year of the Company (or such later date
selected by the Committee consistent with the requirements of Section 162(m) of
the Code), the Committee shall establish the Incentive Targets upon which, and
the Incentive Formula pursuant to which, annual bonuses shall be payable, if at
all, under this Short-Term Program to a Covered Employee with respect to such
fiscal year's performance. The "Incentive Formula" shall specify the formula for
determining the annual bonus that may be earned if actual performance is less
than, equal to or greater than the applicable Incentive Target.

     SECTION 3.3.  Maximum Amount Payable.  The maximum amount payable as an
annual bonus under the Plan to each Covered Employee with respect to each fiscal
year shall be established by the Committee at the time at which the Incentive
Targets are established under Section 3.2, provided that in no event shall such
amount exceed the lesser of (i) $2,000,000 and (ii) 200% of the base salary of
such Covered Employee as in effect at the date the Incentive Targets are
established.

     SECTION 3.4.  Payment of Awards.  If following the end of a fiscal year the
Committee determines that the relevant Incentive Targets for such fiscal year
have been satisfied, in whole or in part, the Committee shall authorize the
payment to each of the Covered Employees of the amount specified for such
Covered Employee pursuant to Section 3.2 (or such lesser amount as the
Committee, in its sole discretion, shall determine to be appropriate).
<PAGE>

                                  ARTICLE IV.

                     LIMITATIONS ON AND DEFERRAL OF PAYMENT

     SECTION 4.1.  Election to Defer.  The Committee may permit a participant in
either the Long-Term Program or the Short-Term Program (a "Participant") may
designate that payment of all or a portion of any annual bonus payable under
Article III or any amount determined by the Committee to be payable in
connection with a vested Earned Performance Segment, whether payable as of the
First Payment Date, Second Payment Date or Third Payment Date, be deferred (a)
until a specified date, (b) until the termination of his or her employment, or
(c) with the consent of the Committee, until such other time or times designated
by the Participant pursuant to payment options determined by the Committee (such
deferred amount, a "Deferred Award"). The Participant shall make such election
by furnishing written notice to the Committee, no later than the last day of the
year prior to the year in which the amount to be deferred would otherwise have
been paid, specifying the deferral period and the period (not exceeding five
years) over which payments shall be made after such deferral; provided, however,
that any deferral of any amount payable with respect to any portion of an Earned
Performance Award shall not be effective if the Participant is not an Employee
on the applicable Payment Date.

     SECTION 4.2.  Interest on Deferred Amounts.  Each Deferred Award shall be
credited with interest additions, based on the average interest rate on ten-year
U.S. Treasury Notes as reported by the Federal Reserve Board on a weekly average
basis and published in The Wall Street Journal. Interest additions, unless
otherwise determined by the Committee, will be credited quarterly in arrears
based on the unweighted arithmetical average of such Treasury Note rates
published on the last day of each week in such calendar quarter.

     SECTION 4.3.  Payment.  The Deferred Awards due each Participant, together
with interest thereon, shall be paid to such Participant (or, in the event of
his or her death, to his or her designated beneficiary or, if none, to his or
her estate) in a lump sum on the date, or in installments on the dates,
specified in his or her election. If payments are made in installments, the
amount of each installment shall be determined as of the day on which an
installment becomes due by dividing the aggregate value of his or her Deferred
Award including accrued interest by the number of installments remaining to be
paid, including the installment then due.

     SECTION 4.4.  Acceleration of Distributions Due to Hardship.  A Participant
who believes he or she is suffering from hardship may apply to the Committee for
payment of the Deferred Award to alleviate such hardship. Upon receipt of the
Participant's application, the Committee may direct distribution to the
Participant of such portion of his or her Deferred Award as the Committee may
determine is required to alleviate such hardship. "Hardship" shall mean a need
for financial assistance in meeting emergencies that would cause great hardship
to such Participant or members of his or her immediate family.

     SECTION 4.5.  Other Deferrals.  Notwithstanding anything in the Plan to the
contrary, the Committee may defer any payment to be made hereunder to the extent
such payment would not (in the discretion of the Committee) be deductible
compensation paid by the Company for federal income tax purposes within the
meaning of Section 162 (including Section 162(m)) of the Code. In the case of
the deferral of any amount pursuant to this Section 4.5, the Committee shall
provide for the payment of interest on such amount in accordance with Section
4.2. In addition, the Committee may withhold any payment to be made hereunder
that, when added to all other payments made to a Participant, would result (in
the discretion of the Committee) in payments that are "excess parachute
payments" within the meaning of Section 280G of the Code or any law having
similar effect.

                                   ARTICLE V.

                              PLAN ADMINISTRATION

     SECTION 5.1.  Powers of the Committee.  The Committee shall administer the
Plan. The Committee shall have the responsibility of (a) construing and
interpreting the Plan (and any instrument or agreement entered into under the
Plan) and (b) establishing and amending such rules and regulations and making
any other determination and taking any other action that it may deem necessary
or desirable for the proper administration of the Plan. Any decision or action
taken or to be taken by the Committee, arising out of or in connection with the
construction, administration, interpretation and effect of the Plan and of its
rules and regulations, shall, to the greatest extent permitted by applicable
law, be within its sole and absolute discretion (except as otherwise
specifically provided

<PAGE>

herein) and shall be conclusive and binding upon the Company and its affiliates,
all Participants and any person claiming under or through any Participant. With
respect to individual Participants who are not Covered Employees, the Committee
may delegate its authority to administer the Plan to another committee
consisting of one or more members of the board of directors of the Company.
Neither the Committee nor any member thereof nor the Company shall be liable for
any action or determination made in good faith with respect to the Plan or the
rights of any Participant under the Plan.

     SECTION 5.2.  Action Taken in Good Faith.  The members of the Committee and
the Company and its officers, directors and employees shall be entitled to rely
upon all certificates and reports made by any accountant, and upon all opinions
given by any legal counsel, and the members of the Committee, the Company and
its officers, directors and employees shall be fully protected in respect of any
action taken or suffered by them in good faith in reliance upon any such
certificates, reports, opinions or other advice of any accountant or legal
counsel, and all action so taken or suffered shall be conclusive upon each of
them and upon all Participants and their beneficiaries.

     SECTION 5.3.  Indemnification.  In addition to all other rights of
indemnification that may exist, the Company shall indemnify the Committee, its
designees, each of their respective members, and officers and employees of the
Company who assist in the administration and operation of the Plan for any
liability, joint and/or several, arising out of or connected with their duties
hereunder, except such liability as may arise from their gross negligence or
willful misconduct.

     SECTION 5.4.  Expenses of Administration.  The Company shall pay all
expenses of administration of the Plan, including, without limitation, all
expenses incurred by the Committee, accounting and legal fees and expenses, and
any other expenses related to the administration of the Plan.

                                  ARTICLE VI.

                                 MISCELLANEOUS

     SECTION 6.1.  Termination and Amendment.  Except as expressly provided
herein, the Committee may terminate or amend the Plan in any respect at any
time.

     SECTION 6.2.  No Limitation to Corporate Action.  Nothing in this Plan
shall preclude the Committee or the Board, as each or either shall deem
necessary or appropriate, from authorizing the payment to the Covered Employees
of compensation outside the parameters of the Plan, including, without
limitation, base salaries, awards under any other plan of the Company and/or its
affiliates (whether or not approved by shareholders), any other bonuses (whether
or not based on the attainment of performance objectives) and retention or other
special payments.

     SECTION 6.3.  Tax Withholding.  The Company shall have the power to
withhold, or require a Participant to remit to the Company, an amount sufficient
to satisfy Federal, state and local withholding tax requirements on any award
under the Plan, and the Company may defer the payment of any such award until
such requirements are satisfied.

     SECTION 6.4.  Inalienability of Interests.  The Participant's interests
under the Plan shall not be subject to alienation, assignment, garnishment,
execution or levy of any kind, and any attempt to cause any benefits to be so
subjected shall not be recognized. This Plan is an unfunded Plan and
participants in the Plan shall have the status of unsecured creditors of the
Company with respect to the Plan.

     SECTION 6.5.  Limited Effect.  Neither the establishment of the Plan nor
participation in the Plan shall give a Participant the right to remain in the
employ of the Company. The adoption of the Plan shall have no effect on awards
made or to be made or compensation paid as to be paid pursuant to other plans,
programs, or arrangements covering employees of the Company, its subsidiaries or
parent, or any predecessors or successors thereto.

     SECTION 6.6.  Governing Law.  All questions pertaining to the construction,
validity and effect of the Plan, or to the rights of any person under the Plan,
shall be determined in accordance with the laws of the State of Delaware.

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