Document:

c50359_ex4-7.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 4.7

GLOBAL PREFERENCE SHARE CERTIFICATE

UNLESS THIS GLOBAL PREFERENCE SHARE CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR THE BANK OF NEW YORK, AS TRANSFER AGENT AND
REGISTRAR, OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY GLOBAL PREFERENCE SHARE CERTIFICATE ISSUED IN EXCHANGE FOR THIS CERTIFICATE OR ANY PORTION HEREOF IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

SECURITY CAPITAL ASSURANCE LTD

			
	
Certificate No.: R-[ ] 
		
CUSIP: 
		
[                    ] 
	
	 

		
ISIN:  
		[                    ]

	

Fixed/Floating Series A Perpetual Non-Cumulative Preference Shares

Security Capital Assurance Ltd, a Bermuda limited company with corporate address at A.S. Cooper Building, 26 Reid Street, 4th Floor, Hamilton HM11, Bermuda (the
“Company”) hereby certifies that Cede & Co., as nominee of The Depository Trust Company, is the registered holder of [          ] ([                    ]) Fixed/Floating Series A Perpetual Non-Cumulative
Preference Shares of the Company, par value $0.01 per share and liquidation preference of US$1,000 per share (the “Preference Shares”). The specific rights, preferences,
limitations and other terms of the Preference Shares represented hereby are set forth in, and subject to, the provisions of the resolutions of an authorized subcommittee of the board of directors of the Company and the certificate of Claude LeBlanc,
each dated as of March 29, 2007 (together, the “Subcommittee Resolutions”). Capitalized terms used herein but not defined shall have the respective meanings given them in the
Subcommittee Resolutions. This Certificate is not valid unless countersigned by the Transfer Agent and Registrar. 

-2-

THIS GLOBAL PREFERENCE SHARE CERTIFICATE IS ISSUED BY the Company on this [          ] day of [                         ], 200[   ]. 

	 	 	SECURITY CAPITAL ASSURANCE LTD 
	 	 	 
	 	 	 
	 	By:	 
	 	 	
    
	 	 	Name:
	 	 	Title:

-3-

	 	COUNTERSIGNED AND REGISTERED 

BY THE BANK OF NEW YORK, AS

TRANSFER AGENT AND REGISTRAR 
	 	 
	By:	 
	 	
    
	 	Authorized Officer

 

 

ASSIGNMENT FORM

For value received the undersigned hereby sells, assigns and transfers unto:

Please insert social security or other identifying number of assignee:

Please print or type name and address, including zip code, of assignee:

__________ Preference Shares and does hereby irrevocably constitute and appoint ___________ as Attorney to transfer the Preference Shares on the books of the Company with full power of substitution in the premises.

						
	
Date: 
		 
		 	
Your Signature: 
		 
		 

	
	 

		 
		 	 

		 
		
(Sign exactly as your name 
	
	 

		 
		 	 

		 
		
appears on the Global Preference 
	
	 

		 
		 	 

		 
		
Share Certificate) 
	

-2-

The issuance on the Closing Date is [] Preference Shares. The following exchanges of apart of this Global Preference Share Certificate have been made:

									
	 

		 
		 

		 
		 

		 
		
Number of shares 
		 
		 

	
	 

		 
		
Amount of decrease 
		 
		
Amount of increase in 
		 
		
represented by this 
		 
		 

	
	 

		 
		
in number of shares 
		 
		
number of shares rep- 
		 
		
Global Preference 
		 
		 

	
	
Date 
		 
		
represented by this 
		 
		
resented by this 
		 
		
Share Certificate 
		 
		
Signature of 
	
	
of 
		 
		
Global Preference 
		 
		
Global Preference 
		 
		
following such de- 
		 
		
authorized offi- 
	
	
Exchange 
		 
		
Share Certificate 
		 
		
Share Certificate 
		 
		
crease or increase 
		 
		
cer of Registrar 
	

-3-EXHIBIT 4.1

This Certifies That

Is The Owner Of

FULLY PAID AND NON-ASSESSABLE COMMON SHARES, $.001 PAR VALUE OF

transferable on the books of this Corporation in person or by attorney upon surrender of this Certificate duly
endorsed or assigned. This Certificate and the shares represented hereby
are subject to the laws of the State of
Delaware, and to the Certificate of Incorporation and Bylaws of the Corporation, as now or hereafter amended.
This Certificate is not valid until countersigned by the Transfer Agent.

     In Witness Whereof, the Corporation has caused this Certificate to
be signed by the facsimile signatures of
its duly authorized officers and to be sealed with the facsimile seal of the Corporation.

SEE REVERSE FOR

CERTAIN DEFINITIONS

CUSIP 77487R100

Rodman & Renshaw Capital Group, Inc.

INCORPORATED UNDER THE LAWS OF THE STATE OF DELAWARE

AUTHORIZED:100,000,000 COMMON SHARES, $1.001 PAR VALUE

AUTHORIZED:1,000,000 PREFERRED SHARES, $.001 PAR VALUE

2900

Dated:

Jennifer Clarke

SECRETARY

Edward Rubin

PRESIDENT

Rodman & Renshaw Capital Group, Inc.

Corporate Stock Transfer, Inc.

Transfer Fee: As Required

          The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full according
to applicable laws or regulations:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
TEN COM

	
—  

	
as tenants in common

	
 

	
UNIF GIFT MIN ACT -

	
______________________

	
Custodian for

	
_________________

	
 

	
 

	
 

	
 

	
 

	
(Cust.)

	
 

	
(Minor)

	
TEN ENT

	
—  

	
as tenants by the entireties

	
 

	
 

	
under Uniform Gifts to Minors

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
JT TEN

	
—  

	
as joint tenants with right of survivorship and not
  as tenants in common

	
 

	
 

	
Act of ______________________________________________

	
 

	
 

	
 

	
 

	
 

	
(State)

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

Additional abbreviations may also be used though not in
the above list.

	
 

	
For
  value received__________________________________________hereby sell, assign
  and transfer unto

PLEASE
INSERT SOCIAL SECURITY OR OTHER

IDENTIFYING NUMBER OF ASSIGNEE

	
 

Please print or type name and address of assignee

	
 

	
__________________________________________________________________________________________

	
__________________________________________________________________________________________

	
__________________________________________________________________________________________

	
____________________________________________________________________________________Shares

	
 

	
of the Common Stock
  represented by the within Certificate and do hereby irrevocably constitute
  and appoint

	
__________________________________________________________________________________________

	
__________________________________________________________________________________________

	
Attorney to transfer the
  said stock on the books of the within-named Corporation, with full power of
  substitution

	
in the premises. 

	
 

	
Dated __________________20_________________

	
 

	
 

	
SIGNATURE GUARANTEED:

	
X________________________________________________ 

	
 

	
 

	
 

	
X________________________________________________ 

THE SIGNATURE TO THIS
ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THIS
CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY
CHANGE WHATSOEVER. THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR
INSTITUTION (Banks, Stockbrokers, Savings and Loan Associations and Credit
Unions) WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM.EXHIBIT 10.1

EXHIBIT B

RODMAN & RENSHAW CAPITAL GROUP, INC.

2007 STOCK AND INCENTIVE PLAN

I.

PURPOSES

          1.1
Purposes. The purposes of this 2007 Stock And Incentive Plan (as the
same may be amended from time to time, the “Plan”) are (i) to advance the
interest of Rodman & Renshaw Capital Group, Inc., a Delaware corporation
(the “Company”), and its Subsidiaries (as defined below) and shareholders by
strengthening the ability of the Company and its Subsidiaries to attract and
retain salaried employees of experience and ability and (ii) to furnish an
additional incentive to such persons to expend their best efforts on behalf of
the Company or any such Subsidiary. 

          1.2
Types of Awards. The Plan provides for the granting of the following types of
Awards:

	
 

	
 

	
 

	
 

	
(a)

	
Incentive Options (as
 defined below);

	
 

	
 

	
 

	
 

	
(b)

	
Nonstatutory Options (as
 defined below);

	
 

	
 

	
 

	
 

	
(c)

	
Performance Units (as
 defined below};

	
 

	
 

	
 

	
 

	
(d)

	
Restricted Stock Awards
 (as defined below); and 

	
 

	
 

	
 

	
 

	
(e)

	
Stock Appreciation Rights
 (as defined below).

          1.3
Effectiveness. The Plan shall be effective on the date it is adopted by
the board of directors of the Company (the “Effective Date”). No Award under
the Plan shall be effective unless and until the Plan has been approved by the
shareholders of the Company and, if such approval is not obtained, any Awards
previously given shall automatically be void. Further, the status of any Award
granted hereunder as an Incentive Option shall be subject to such approval by
the shareholders of the Company taking place within twelve (12) months after
the Effective Date. 

II.

CERTAIN DEFINITIONS

          In
addition to any terms defined elsewhere in the Plan, the following capitalized
terms shall have the following respective meanings as used in the Plan: 

          2.1
“Arbitration Notice” has the meaning given to that term in Section 10.19. 

          2.2
“Available Shares” has the meaning given to that term in Section 3.2. 

          2.3
“Award” means the grant of any form of Option, Performance Unit, Restricted
Stock Award, or Stock Appreciation Right under the Plan, whether granted
singly, in combination, or in tandem, to a Holder pursuant to such terms,
conditions and limitations as the Committee may establish from time to time in
order to fulfill the objectives of the Plan.

          2.4
“Award Agreement” means the written document or agreement evidencing the grant
of an Award by the Company to a Holder and any additional terms, conditions or
limitations with respect to such grant. 

          2.5
“Board of Directors” means the board of directors of the Company. 

          2.6
“Business Day” means any day other than a Saturday, a Sunday, or a day on which
banking institutions in the State of New York are authorized or obligated by
law or executive order to close. 

          2.7
“Change in Control” means: 

                    (a)
Any “person” (solely for purposes of this Section 2.7, defined as such
term is used in Sections 13(d)(3) and 14(d)(2) of the Exchange Act), other than
a “person” who together with all members of such “person’s” family as of the
Effective Date was the beneficial owner, directly or indirectly, of more than
fifty percent (50%) of the Company’s Stock, or more than one person acting as a
group (as defined in paragraph (c) below) is or becomes the beneficial owner,
directly or indirectly, of securities of the Company representing more than
fifty percent (50%) of the combined voting power of the Company’s outstanding
stock; 

                    (b)
There is a change in the composition of the Board of Directors over a
period of twelve (12) consecutive months or less such that a majority of the
members of the Board of Directors (rounded up to the nearest whole number)
cease to be individuals who either (x) have been members of the Board of
Directors continuously since the beginning of such period or (y) have been
elected or nominated for election as members of the Board of Directors during
such period by a majority of the members of the Board of Directors described in
clause (x) who were still in office at the time such election or nomination was
approved by the Board of Directors; or 

                    (c)
The sale of all or substantially all of the assets of the Company.
Notwithstanding anything to the contrary contained herein, no Change in Control
shall be considered to occur where there is a transfer of assets to an entity
controlled by the shareholders of the transferring corporation immediately
after the transfer. 

                          For
purposes of this definition of Change in Control, persons will be considered to
be acting as a group if they are owners of a corporation that enters into a
merger, consolidation, purchase or acquisition of assets, or similar business
transaction with the Company. It is intended that the Change in Control events
described in this definition meet the requirements for a “Change in Control
Event” as described in Section 1.409A-3(i)(5) of the Treasury Regulations
promulgated under Section 409A, and the term “Change in Control” shall be
interpreted and applied for all purposes of this Plan in a manner consistent
with such intent. 

          2.8
“Code” means the Internal Revenue Code of 1986, as amended. 

          2.9
“Committee” means the committee appointed by the Board of Directors pursuant to
Article IV to administer the Plan. 

          2.10
“Company” has the meaning given to that term in Section 1.1. 

          2.11
“Covered Event” means (a) the commission by a Holder of a criminal or other act
that causes or probably will cause substantial economic damage to the Company
or a Subsidiary or substantial injury to the business reputation of the Company
or a Subsidiary; (b) the commission by a Holder of an act of fraud in the
performance of such Holder’s duties on behalf of the Company or a Subsidiary;
(c) the continuing failure of a Holder to perform the duties of such Holder to
the Company or a Subsidiary (other than such failure resulting from the
Holder’s incapacity due to physical or mental illness) after written notice
thereof (specifying the particulars thereof in reasonable detail) and a
reasonable opportunity to be heard and cure such failure are given to the
Holder by the 

2

Company; (d) failure of a
Holder to maintain any license or registration required to be maintained by the
rules and regulations of the National Association of Securities Dealers, Inc.,
the Securities and Exchange Commission, or any other U.S. Federal or state
regulatory agency having jurisdiction over the business conduct of the Holder
as an employee of the Company or a Subsidiary; or (e) the order of a court of
competent jurisdiction requiring the termination of the Holder’s employment. 

          2.12
“Date of Grant” has the meaning given to that term in Section 5.4 or (with
respect to Reload Options) Section 6.9. 

          2.13
“Designated Beneficiary” has the meaning given to that term in Section 10.6. 

          2.14
“Disability” has the meaning given it in the employment agreement between the
Company or a Subsidiary and the Holder; provided, however, that if the Holder
has no such employment agreement or such term is not defined in the employment
agreement, “Disability” shall mean that (1) the Committee has determined that
the Holder has a permanent physical or mental impairment of sufficient severity
as to prevent the Holder from performing duties for the Company or Subsidiary,
as applicable, and (2) the Committee or the Company or the relevant Subsidiary
has provided written notice to the Holder that the Holder’s employment is
terminated due to a permanent “Disability” pursuant to this Section.
Notwithstanding the preceding sentence, with respect to any Award constituting
a deferral of compensation subject to the requirements of Section 409A,
“Disability” shall mean that a Holder is “disabled” within the meaning of
Section 409A(a)(2)(C). The Committee may establish any process or procedure it
deems appropriate for determining whether a Holder has a “Disability.” 

          2.15
“Dispute” has the meaning given to that term in Section 11.19. 

          2.16
“Effective Date” has the meaning given to that term in Section 1.3. 

          2.17
“Eligible Individuals” means directors, officers, employees and agents of, and
other providers of services to, the Company or any of its Subsidiaries. 

          2.18
“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

          2.19
“Exercise Notice” has the meaning given to that term in Section 6.5 (with
respect to Options) or Section 7.4 (with respect to Stock Appreciation Rights).

          2.20
“Exercise Price” has the meaning given to that term in Section 6.4. 

          2.21
“Fair Market Value” means a per share value defined as follows, for a
particular day: 

                    (a)
Subject to Paragraph 2.21(d), if shares of Stock of the same class are
listed on any national securities exchange at the date of determination of Fair
Market Value, then the closing price of one share on that exchange (or, if more
than one exchange, the exchange determined by the Committee to be used for such
purpose) on the date in question or, if such day is not a Business Day or no
such closing price is reported for that day, on the last Business Day for which
such a closing price is reported before the date in question, in any case as
reported in the principal consolidated transaction reporting system with
respect to securities listed or admitted to unlisted trading privileges on that
exchange; or 

                    (b)
Subject to Paragraph 2.21(d), if shares of Stock of the same class are
not listed as provided in Paragraph 2.21(a) and if bid and asked prices for
shares of Stock of the same class in the over-the-counter market are reported
by the OTC Bulletin Board of the National Association of Securities Dealers,
Inc. at the date of determination of Fair Market Value, then the mean between
the high bid and low asked prices on the date in question or, if such day is
not a Business Day or no such prices are reported that day, on the last
Business Day for which such prices are reported before the date in question; or

3

                    (c)
If shares of Stock of the same class are not listed as provided in
Paragraph 2.21(a) and bid and asked prices therefor are not reported by the OTC
Bulletin Board as provided in Paragraph 2.21(b) at the date of determination of
Fair Market Value, then the value determined by the Committee; or 

                    (d)
If shares of Stock of the same class are listed as provided in Paragraph
2.21(a) or bid and asked prices therefor are reported by the OTC Bulletin Board
as provided in Paragraph 2.21(b) at the date of determination of Fair Market
Value, but the volume of trading is so low that the Committee determines that
such prices are not indicative of the fair value of the Stock, then the value
determined by the Committee. 

          2.22
“Holder” means an Eligible Individual to whom an Award has been granted. 

          2.23
“Incentive Option” means an incentive stock option as defined under Section 422
of the Code.

          2.24
“Linked Stock Appreciation Right” has the meaning given to that term in Section
7.1.

          2.25
“Maximum Shares” has the meaning given to that term in Section 3.1. 

          2.26
“NASDAQ” means the National Association of Securities Dealers, Inc. Automated
Quotations National Market System. 

          2.27
“Non-Employee Director” means a person who is a “Non-Employee Director” as that
term is used in Rule 16b-3. 

          2.28
“Non-Linked Stock Appreciation Right” has the meaning given to that term in
Section 7.1. 

          2.29
“Nonstatutory Option” means a stock option that (i) does not satisfy the
requirements for an incentive stock option under Section 422 of the Code; (ii)
that is designated at the Date of Grant or in the applicable Option Agreement
to be an option other than an Incentive Option; or (iii) is modified in
accordance with Paragraph 11.2(b) to be an option other than an Incentive
Option. 

          2.30
“Normal Retirement” means the termination of the Holder’s employment with the
Company and its Subsidiaries on account of retirement at any time on or after
the date on which the Holder attains age sixty-five (65) (but for purposes of
clarification excludes any termination of employment as a result of a Covered
Event). 

          2.31
“Option” means either an Incentive Option or a Nonstatutory Option, or both.

          2.32
“Option Agreement” means an Award Agreement for an Option. 

          2.33
“Outside Director” means an “outside director” as that term is used in Section
162(m). 

          2.34
“Performance Period” means a period over which performance is measured for the
purpose of determining the payment value of Performance Units. 

          2.35
“Performance Unit” means a unit representing a contingent right to receive a
specified amount of cash or shares of Stock at the end of a Performance Period.

          2.36
“Person” means any individual, partnership, joint venture, corporation, trust,
unincorporated organization, association, limited liability company, joint
stock company, government or any department or agency thereof, or any other
form of association or entity. 

          2.37
“Plan” has the meaning given to that term in Section 1.1. 

4

          2.38
“Reload Option” has the meaning given to that term in Section 6.9. 

          2.39
“Restricted Stock Award” means the grant or purchase, on the terms, conditions
and limitations that the Committee determines or on the terms, conditions and
limitations of Article IX, of Stock that is nontransferable and subject to
substantial risk of forfeiture until specific conditions are met; provided,
however, that this term shall not apply to shares of Stock issued or
transferred in connection with the exercise or settlement of an Option,
Performance Unit or a Stock Appreciation Right whether or not such shares of
Stock are nontransferable or subject to substantial risk of forfeiture when
issued or transferred. 

          2.40
“Rule 16b-3” means Rule 16b-3 under Section 16(b) of the Exchange Act. 

          2.41
“SAR Exercise Price” means the price specified in the Award Agreement related
to a Non-Linked Stock Appreciation Right as the exercise price per share of
Stock for that Non-Linked Stock Appreciation Right. 

          2.42
“Section 162(m)” means Section 162(m) of the Code. 

          2.43
“Section 409A” means Section 409A of the Code. 

          2.44
“Securities Act” means the Securities Act of 1933, as amended. 

          2.45
“Stock Appreciation Right” means either a Linked Stock Appreciation Right or a
Non-Linked Stock Appreciation Right. 

          2.46
“Stock” means the Company’s authorized common stock, par value $0.001 per
share, or any other securities, property or assets that are substituted for the
Stock as provided in Section 10.1. 

          2.47
“Subsidiary” means an entity, as may from time to time be designated by the
Committee, that is (i) a subsidiary corporation, or is treated as, or as part
of, a subsidiary corporation of the Company (within the meaning of Section 424
of the Code), or (ii) any other entity that the Company controls, directly or
indirectly. For purposes of this definition, “control” means the power to
direct the management and policies of such entity, whether through the
ownership of Voting Securities, by contract or otherwise. 

          2.48
“Ten Percent Shareholder” shall have the meaning given to that term in Section
5.2. 

          2.49
“Voting Securities” means any securities that at the applicable time are
entitled to vote generally in the election of directors, in the admission of
general partners, or in the selection of any other similar governing body. 

III.

SHARES OF STOCK SUBJECT TO THE PLAN

          3.1
Maximum Shares. Subject to the provisions of Section 3.6 and Section
11.1, the aggregate number of shares of Stock that may be issued or transferred
pursuant to Awards under the Plan (the “Maximum Shares”) shall be five million
two hundred fifty thousand (5,250,000); provided, however, that,
notwithstanding anything to the contrary contained herein, (a) the total number
of shares of stock that can be issued or transferred pursuant to Restricted Stock
Awards and Performance Units shall not exceed five million (5,000,000) Shares,
and (b) the total number of shares of stock that can be issued or transferred
through Incentive Options shall not exceed five million (5,000,000) shares. 

5

          3.2
Available Shares. Except as otherwise provided in Section 3.3, at any
time, the number of shares of Stock that may then be made subject to issuance
or transfer pursuant to new Awards under the Plan (the “Available Shares”)
shall be equal to (a) the number of Maximum Shares minus (b) the sum of (1) the
number of shares of Stock subject to issuance or transfer upon exercise or
settlement of then outstanding Awards (provided that shares of Stock subject to
issuance or transfer upon exercise or settlement of then outstanding Linked
Stock Appreciation Rights shall only be counted once, and not for both the
Option and related Linked Stock Appreciation Right and provided further that
Awards that may but need not be settled in Stock shall be charged against the
number of Maximum Shares in such amounts and at such times as the Committee
shall determine from time to time) and (2) the number of shares of Stock that
have been issued or transferred upon exercise or settlement of Awards.  

          3.3
Restoration of Unused Shares. If Stock subject to any Award is not
issued or transferred, or ceases to be issuable or transferable, for any
reason, including the termination, forfeiture, expiration unexercised, exchange
for other Awards or settlement in cash in lieu of Stock, of an Award, the
shares of Stock that were subject to that Award shall no longer be charged
against the number of Maximum Shares in calculating the number of Available
Shares under Section 3.2 and shall again be included in Available Shares. 

          3.4
Description of Shares. The shares of Stock to be delivered under the
Plan shall be made available from (a) authorized but unissued shares of Stock,
(b) Stock held in the treasury of the Company, or (c) previously issued shares
of Stock reacquired by the Company, including shares purchased on the open
market, in each situation as the Board of Directors or the Committee may
determine from time to time. All shares of Stock issued or transferred as
provided in the Plan shall be fully paid and non-assessable to the extent
permitted by law. 

          3.5
Listing, Registration, etc. of Shares. If at any time the Board of
Directors shall determine in its discretion that the listing, registration or
qualification of the shares of Stock covered by the Plan upon any national
securities exchange or other trading system or under any state or federal law,
or the consent or approval of any governmental or regulatory body, is necessary
or desirable as a condition of, or in connection with, the issuance or transfer
of shares of Stock under the Plan, no shares of Stock shall be issued or
transferred under the Plan unless and until such listing, registration,
qualification, consent or approval shall have been effected or obtained, or
otherwise provided for, free of any conditions not acceptable to the Board of
Directors. Nothing in the Plan shall require the Company to list, register or
qualify any securities, to obtain any such consent or approval, or to maintain
any such listing, registration, qualification, consent or approval. 

          3.6
Reduction in Outstanding Shares of Stock. Nothing in this Article III
shall impair the right of the Company to reduce the number of outstanding
shares of Stock pursuant to repurchases, redemptions, or otherwise; provided,
however, that no reduction in the number of outstanding shares of Stock shall
(a) impair the validity of any outstanding Award, whether or not that Award is
fully exercisable or fully vested, or (b) impair the status of any shares of
Stock previously issued or transferred pursuant to an Award or thereafter
issued or transferred pursuant to a then-outstanding Award as duly authorized,
validly issued, fully paid, and nonassessable shares. 

IV.

ADMINISTRATION OF THE PLAN

          4.1
Committee. The Board of Directors shall designate the Committee to
administer the Plan, each member of which shall at all times be (a) a
Non-Employee Director and (b) an Outside Director. The number of individuals
that shall constitute the Committee shall be determined from time to time by
the Board of Directors, but shall be no fewer than two (2) individuals. 

          4.2
Duration, Removal, Etc. The members of the Committee shall serve at the
pleasure of the Board of Directors, which shall have the power, at any time and
from time to time, to remove members from or add members to the Committee.
Removal from the Committee may be with or without cause. Any individual serving
as 

6

a member of the Committee
shall have the right to resign from membership on the Committee by written
notice to the Board of Directors. The Board of Directors, and not the remaining
members of the Committee, shall have the power and authority to fill vacancies
on the Committee, however caused. The Board of Directors shall promptly fill
any vacancy that causes the number of members of the Committee to be below two
(2) or any other number that Rule 16b-3 or Section 162(m) may require from time
to time. 

          4.3
Meetings and Actions of Committee. The Board of Directors shall
designate the chairman of the Committee. If the Board of Directors fails to
designate a Committee chairman, the members of the Committee shall elect one of
the Committee members as chairman, who shall act as chairman until the director
ceases to be a member of the Committee or until the Board of Directors
designates a new chairman. The Committee shall hold its meetings at such times
and places as the chairman of the Committee may determine. At all meetings of
the Committee, a quorum for the transaction of business shall be required, and
a quorum shall be deemed present if at least a majority of the members of the
Committee are present. At any meeting of the Committee, each member shall have
one vote. All decisions and determinations of the Committee shall be made by
the majority vote or majority decision of all of its members present at a
meeting at which a quorum is present; provided, however, that any decision or
determination reduced to writing and signed by all of the members of the
Committee shall be as fully effective as if it had been made at a meeting that
was duly called and held. The Committee may make any rules and regulations for
the conduct of its business that are not inconsistent with the provisions of
the Plan, the Certificate of Incorporation and the Bylaws of the Company (in
each case as amended from time to time), Rule 16b-3 and Section 162(m), to the
extent applicable, as the Committee may deem advisable. 

          4.4
Committee’s Powers. Subject to the express provisions of the Plan, any
applicable Award Agreement, Rule 16b-3 and Section 162(m), to the extent
applicable, the Committee shall have the authority (a) to adopt, amend, and
rescind administrative, interpretive and other rules and regulations relating
to the Plan; (b) to determine the Eligible Individuals to whom, and the time or
times at which, Awards shall be granted; (c) to determine the number of shares
of Stock that shall be the subject of each Award; (d) to determine the terms
and provisions of each Award Agreement and any amendments thereto, including
provisions defining or otherwise relating to (i) the term and the period or
periods and extent of exercisability of the Options, Stock Appreciation Rights
and Restricted Stock Awards, (ii) the extent to which the transferability of
shares of Stock issued or transferred pursuant to any Award is restricted,
(iii) the effect of termination of employment on the Award, and (iv) except as
provided in Section 10.5, the effect of leaves of absence and the effect of
transfers of an Eligible Individual’s employment from the Company to a
Subsidiary or from a Subsidiary to the Company (consistent with any applicable
regulations of the Internal Revenue Service and any other requirements of
applicable law with respect to the same); (e) to construe the respective Award
Agreements, the Plan, and any rules or regulations with respect thereto; (f) to
make determinations of the Fair Market Value of the Stock pursuant to the Plan;
(g) to amend any Award Agreement or waive any provision, condition or
limitation thereof; (h) to delegate its duties under the Plan to such agents as
it may appoint from time to time, provided that the Committee may not delegate
its duties with respect to making Awards to Eligible Individuals; (i) to take
or refrain from taking such other actions as are described in the Plan as
within the purview of the Committee; and (j) to make all other determinations,
perform all other acts, and exercise all other powers and authority necessary
or advisable for administering the Plan, including the delegation of those
ministerial acts and responsibilities as the Committee deems appropriate.
Subject to Rule 16b-3 and Section 162(m), to the extent applicable, the
Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan, in any Award, or in any Award Agreement in the
manner and to the extent it deems necessary or desirable to carry the Plan into
effect. Any determinations and other actions of the Committee with respect to
any of the matters referred to in this Section 4.4 or elsewhere in the Plan or in
any Award Agreement need not be consistent, even among Eligible Individuals who
are similarly situated and/or who have previously received similar or other
Awards, except as may be specifically provided to the contrary in the Plan or
in the applicable Award Agreement. The determinations and other actions of the
Committee with respect to any of the matters referred to in this Section 4.4 or
elsewhere in the Plan or in any Award Agreement shall, except as may be
specifically provided to the contrary in the Plan or in the applicable Award
Agreement, be made in the sole discretion of the Committee (subject to
modification or rescission by the Board of Directors, if consistent with Rule
16b-3 and Section 162(m), to the extent applicable) and shall be final, binding
and conclusive. 

7

          4.5
Counsel, Consultants and Agents. The Committee may employ such legal
counsel, consultants and agents as it may deem desirable for the administration
of the Plan and may rely upon any opinion received from any such counsel or
consultants and any computation received from any such consultants or agents.
Expenses incurred by the Committee in the engagement of any such counsel,
consultants or agents shall be paid by the Company. 

V.

ELIGIBILITY AND PARTICIPATION; CERTAIN AWARD
TERMS

          5.1
Eligible Individuals. Awards may be granted pursuant to the Plan only to
persons who are Eligible Individuals at the time of the grant thereof (and,
with respect to Incentive Options, satisfy the requirements of Section 5.2).
Notwithstanding the preceding sentence, except as indicated by Section
1.409A-1(b)(5)(iii)(E) and except as may otherwise be provided in guidance
issued by the IRS under Section 409A, a person shall not be awarded an Option,
Performance Unit or Stock Appreciation Right pursuant to the Plan if the
Subsidiary by which such person is employed (or to which such person provides
services) would not be considered part of the same “single employer” as the
Company under Sections 414(b) and 414(c) of the Code. 

          5.2
Limitation for Incentive Options. Notwithstanding any provision
contained in the Plan to the contrary, (a) a person shall not be eligible to
receive an Incentive Option unless the person is an Eligible Individual
employed by the Company or any Subsidiary of the Company that is a subsidiary
corporation, or is treated as, or as part of, a subsidiary corporation of the
Company (within the meaning of Section 424 of the Code) at the time of the
grant thereof, and (b) a person shall not be eligible to receive an Incentive
Option if, immediately before the time the Option is granted, that person owns
(within the meaning of Sections 422 and 424 of the Code) stock possessing more
than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or a Subsidiary of the Company that is a subsidiary
corporation, or is treated as, or as part of, a subsidiary corporation of the
Company (within the meaning of Section 424 of the Code) (a “Ten Percent
Shareholder”). Nevertheless, clause (b) of the foregoing sentence of this
Section 5.2 shall not apply if, at the time the Incentive Option is granted,
the Exercise Price of the Incentive Option is at least one hundred and ten
percent (110%) of the Fair Market Value per share of Stock and the Incentive
Option is not, by its terms, exercisable after the expiration of five (5) years
from the Date of Grant. 

          5.3
Grant of Awards. Subject to the express provisions of the Plan, the
Committee shall determine which Eligible Individuals shall be granted Awards
from time to time. In making grants, the Committee may take into consideration
the contribution the potential Holder has made or may make to the success of
the Company or its Subsidiaries and such other considerations as the Committee
may from time to time determine. The Committee shall also determine the number
(or the method of determining the number) of shares of Stock, or amounts (or
method of determining the amounts) of cash or other property or assets, subject
to each of the Awards. 

          5.4
Date of Grant. The date on which the Award covered by an Award Agreement
is granted (the “Date of Grant”) shall be the date specified by the Committee
as the effective date or date of grant of an Award. Except as otherwise
determined by the Committee, in no event shall a Holder gain any rights with
respect to an Award in addition to those specified by the Committee in its
grant, regardless of the time that may pass between the grant of the Award and
the actual execution or delivery of the Award Agreement by the Company and (if
required in the Award Agreement) the Holder. The Committee may invalidate an
Award at any time before the Award Agreement is executed by the Holder (if such
execution is required) or is delivered to the Holder (if such execution is not
required), and any such invalidated Award shall be treated as never having been
granted. 

          5.5
Award Agreements. Each Award granted under the Plan shall be evidenced
by an Award Agreement that is executed by the Company and, if required in the
Award Agreement, by the Eligible Individual to whom the Award is granted, and
that includes such terms, conditions and limitations that the Committee shall
deem necessary or desirable. More than one Award may be granted under the Plan
to the same Eligible Individual and be 

8

outstanding
concurrently (provided, however, that the grant of certain rights in tandem
with an Incentive Option may result in the Incentive Option being treated as a
Nonstatutory Option). 

          5.6
No Right to Award. The adoption of the Plan shall not be deemed to give
any person a right to be granted an Award. 

          5.7
Limitation on Individual Awards. No Eligible Individual shall, in one
calendar year, be granted Awards (i) of Options or Stock Appreciation Rights
(or both) to which more than two million (2,000,000) shares of Stock are
subject or (ii) of Performance Units or Restricted Stock Awards (or both) to
which more than two million (2,000,000) shares of Stock are subject, in each
case without regard to any vesting limitations with respect to such grant. 

          5.8
Payment of Taxes. The Committee may require a Holder to pay to the
Company (or, if the Holder is an employee of a Subsidiary of the Company, to
such Subsidiary), with respect to an Option or Stock Appreciation Right, at the
time of the exercise of such Option or Stock Appreciation Right, and with
respect to a Performance Unit or Restricted Stock Award, at such time or times
as may be designated by the Committee at such time or times as may be
designated by the Committee, the amount that the Committee deems necessary to
satisfy the Company’s or such Subsidiary’s current or future obligation to
withhold federal, state or local income or other taxes associated with the
exercise, grant or payment with respect to the relevant Award. Upon the
exercise of an Option or Stock Appreciation Right requiring tax withholding
(or, with respect to a Stock Award prior to such time or times as such payment
is due from the Holder to the Company or such Subsidiary), the Holder may (a)
request that the Company withhold from the shares of Stock to be issued or
transferred to the Holder, or the amount of cash to be paid to the Holder, the
number of shares (based upon the shares’ Fair Market Value per share as of the
day before the date of withholding) or the amount of cash necessary to satisfy
the Company’s or such Subsidiary’s obligation to withhold taxes, the
determination as to such obligation to be based on the shares’ Fair Market
Value per share as of the day before the date of exercise (with respect to an
Option or Stock Appreciation Right) or as of the date on which tax withholding
is to be made (with respect to Performance Units or Restricted Stock Awards);
(b) request that the Holder be allowed to deliver to the Company sufficient
shares of Stock (based upon the shares’ Fair Market Value per share as of the
day before the date of such delivery) to satisfy the Company’s or such
Subsidiary’s tax withholding obligations; or (c) deliver sufficient cash to the
Company to satisfy the Company’s or such Subsidiary’s tax withholding
obligations. Holders who wish to proceed under clause (a) or (b) above must
make their request to do so at such time and in such manner that the Committee
prescribes from time to time, and such transaction shall be effected in
accordance with such procedures as the Committee may establish from time to
time. Notwithstanding the foregoing, however, the Committee may, at its sole
option, deny any Holder’s request to proceed under clause (a) or (b) above or
may impose any conditions it deems appropriate on such action, including the
escrow of shares of Stock or cash. In the event the Committee subsequently
determines that the cash amount or the aggregate Fair Market Value (as
determined above) of any shares of Stock withheld or tendered as payment of any
tax withholding obligation is insufficient to discharge that tax withholding
obligation, then the Holder shall pay to the Company, immediately upon the
Committee’s request, the amount of that deficiency. The Company may also, if
the Committee so elects, retain any cash and any certificates evidencing shares
of Stock to which such Holder is entitled upon the exercise of the Option or
Stock Appreciation Right or in connection with a Restricted Stock Award as
security for the payment of any tax withholding obligation until satisfied, and
the Company shall have all rights of a secured creditor under the Uniform
Commercial Code with respect to the same. Each Holder acknowledges that the
delivery to the Company of Stock acquired by such Holder upon exercise of an
Incentive Option may constitute a disqualifying disposition of such Stock for
purposes of the Code. 

          5.9
Forfeiture and Restrictions on Transfer; Other Conditions. Without
limitation of any other provisions of the Plan or any power of the Board of
Directors or the Committee hereunder, any Award Agreement may contain or
otherwise provide for, in addition to any terms, conditions or limitations
required or permitted by other provisions of the Plan, such other terms, conditions
or limitations as the Committee may deem advisable or proper from time to time
provided any such additional term, condition or limitation is not inconsistent
with the terms of the Plan, including (i) restrictions on the transferability
of the Award; (ii) restrictions or the removal of restrictions upon the
exercise of an Award; (iii) restrictions or the removal of restrictions on the
retention or transfer 

9

of any shares
of Stock acquired pursuant to an Award or otherwise; (iv) options and rights of
first refusal in favor of the Company and one or more stockholders of the
Company; (v) requirements that the Holder render substantial services to the
Company or one or more of its Subsidiaries for a specified period of time; (vi)
restrictions on disclosure and use of certain information regarding the Company
or other Persons; (vii) restrictions on solicitation of employees and other
Persons; (viii) restrictions on competition; and (ix) other terms, conditions
or limitations; all of which as the Committee may deem proper or advisable from
time to time. 

VI.

TERMS AND CONDITIONS OF OPTIONS

          All
Options granted under the Plan shall comply with, and the related Option
Agreements shall be subject to, the terms, conditions and limitations set forth
in this Article VI (to the extent each such term, condition or limitation
applies to the form of Option and provided that, if any such term, condition or
limitation is left to the discretion of the Committee, the Committee determines
to apply it to such Option) and also to the terms, conditions and limitations
set forth in Article XI (to the extent each such term, condition or limitation
applies to the form of Option and provided that, if any such term, condition or
limitation is left to the discretion of the Committee, the Committee determines
to apply it to such Option); provided, however, that the Committee may
authorize an Option Agreement that expressly contains or is subject to terms,
conditions and limitations that differ from any of the terms, conditions and
limitations of Article XI. The Committee may also authorize an Option Agreement
that contains or is subject to any or all of the terms, conditions and
limitations of Article X (to the extent each such term, condition or limitation
applies to the form of Option and provided that, if any such term, condition or
limitation is left to the discretion of the Committee, the Committee determines
to apply it to such Option) or similar terms, conditions and limitations;
nevertheless, no term, condition or limitation of Article X (or any similar
term, condition or limitation) shall apply to an Option Agreement unless the
Option Agreement expressly states that such term, condition or limitation
applies. 

          6.1
Number of Shares; Type of Award. Each Option Agreement shall state the
total number of shares of Stock to which it relates. Each Option Agreement
shall identify the Option evidenced thereby as an Incentive Option or
Nonstatutory Option, as the case may be, and no Option Agreement shall cover
both an Incentive Option and a Nonstatutory Option. 

          6.2
Vesting. Each Award shall vest ratably over five (5) years commencing
from the Date of Grant, unless the Option Agreement states (i) any time,
periods or other conditions in or pursuant to which the right to exercise the
Option or a portion thereof shall vest and (ii) the number (or method of
determining the number) of shares of Stock with respect to each such vesting. 

          6.3
Expiration. Nonstatutory Options and Incentive Options may be exercised
during the term determined by the Committee and set forth in the Option
Agreement; provided that no Incentive Option shall be exercised after the
expiration of a period of ten (10) years (or, with respect to a Ten Percent
Shareholder, five (5) years) commencing on the Date of Grant of the Incentive
Option. 

          6.4
Exercise Price. Each Option Agreement shall state the exercise price per
share of Stock (the “Exercise Price”), which shall not be less than the
greatest of (a) the par value per share of the Stock, (b) one hundred percent
(100%) of the Fair Market Value per share of the Stock on the Date of Grant of
the Option, or (c) in the case of an Incentive Option granted to a Ten Percent
Shareholder, one hundred ten percent (110%) of the Fair Market Value per share
of the Stock on the Date of Grant of the Option. 

          6.5
Method of Exercise. Each Option shall be exercisable only by notice of
exercise (the “Exercise Notice”) in the manner (including the time period)
specified by the Committee from time to time (which need not comply with
Section 13.14 if expressly so provided by the Committee) to the Secretary of
the Company at the chief executive office of the Company (or to such other
person and location as may be designated from time to time by the 

10

Committee)
during the term of the Option, which notice shall (a) state the number of
shares of Stock with respect to which the Option is being exercised, (b) be
signed or otherwise given by the Holder of the Option or by another Person
authorized to exercise the Option pursuant to Section 11.6 or 11.7 (to the
extent that each is applicable to the Option) or pursuant to the relevant
Option Agreement, (c) be accompanied by the aggregate Exercise Price for all
shares of Stock for which the Option is exercised in accordance with Section
6.7, and (d) include such other information, instruments, and documents as may
be required to satisfy any other condition under the Plan or the relevant
Option Agreement or as may be reasonably imposed by the Committee. The Option
shall not be deemed to have been exercised unless all of the requirements of
the preceding provisions of this Section 6.5 have been satisfied. 

          6.6
Incentive Option Exercises and Disqualifying Dispositions. Except as
provided in Paragraph 11.6(b) or Section 11.7 (to the extent that each is
applicable to the Option), during the Holder’s lifetime, only the Holder may
exercise an Incentive Option. The Holder of an Incentive Option shall
immediately notify the Company in writing of any disposition of any Stock
acquired pursuant to the Incentive Option that would disqualify the Incentive
Option from being treated as an incentive stock option under Section 422 of the
Code (including any disposition of Stock upon exercise of an Award requiring
exercise, or in connection with the payment of taxes with respect to an Award,
if the same would constitute such a disqualifying disposition). The notice
shall state the number of shares disposed of, the dates of acquisition and
disposition of the shares, and the consideration received in connection with
each disposition. 

          6.7
Medium and Time of Payment. The Exercise Price of an Option shall be
payable in full upon the exercise of the Option (a) in cash, by cashier’s
check, by wire transfer or by other means as may be acceptable to the Committee
from time to time, (b) with the Committee’s prior consent (which consent, with
respect to an Incentive Option, must be evidenced in the relevant Option
Agreement as of the Date of Grant), and to the extent permitted by applicable
law, with shares of Stock that would otherwise be issued or transferred to the
Holder upon the exercise of the Option or with shares of Stock already owned by
the Holder (but in all events excluding any shares that are to be or were
issued or transferred pursuant to a Restricted Stock Award with respect to
which the restrictions have not yet expired or been removed or that otherwise
are or will be subject to restrictions on transferability or a substantial risk
of forfeiture) and having an aggregate Fair Market Value at least equal to the
aggregate Exercise Price payable in connection with such exercise, and pursuant
to such procedures (including constructive delivery of such shares of Stock) as
the Committee may establish from time to time for such purpose, (c) with the
Committee’s prior consent (which consent, with respect to an Incentive Option,
must be evidenced in the relevant Option Agreement as of the Date of Grant),
and to the extent permitted by applicable law, in such other forms, under such
other terms, and by such other means (including those specified in Section 6.8)
as may be acceptable to the Committee from time to time, and pursuant to such
procedures as the Committee may establish from time to time for such purpose,
or (d) with the Committee’s prior consent (which consent, with respect to an
Incentive Option, must be evidenced in the relevant Option Agreement as of the
Date of Grant), by any combination of clauses (a), (b) and (c). Unless
otherwise provided in the relevant Option Agreement, any portion of the
Exercise Price that is paid with shares of Stock that the Holder acquired from
the Company, directly or indirectly, shall be paid only with shares of Stock
that the Holder has owned for more than six (6) months (or such longer or
shorter period of time, if any, as may be required to avoid payment with such
shares resulting in a charge to earnings for financial accounting purposes). If
the Committee elects to accept shares of Stock in payment of all or any portion
of the aggregate Exercise Price, then (for purposes of payment of the aggregate
Exercise Price) unless otherwise provided in the relevant Option Agreement
those shares of Stock shall be deemed to have a cash value equal to their
aggregate Fair Market Value determined as of the day before the date of the
delivery of the Exercise Notice. Each Holder acknowledges that the delivery to
the Company of Stock acquired by such Holder upon exercise of an Incentive
Option may constitute a disqualifying disposition of such Stock for purposes of
the Code. 

          6.8
Payment with Sale Proceeds. The Committee may (but shall not be required
to) approve from time to time (which approval, with respect to an Incentive
Option, must be evidenced in the relevant Option Agreement as of the Date of
Grant) arrangements with a brokerage firm (provided that such arrangements
comply with applicable law, including Regulation T of the Board of Governors of
the Federal Reserve System), under which that brokerage firm, on behalf of the
Holder, shall pay to the Company the aggregate Exercise Price of the Option 

11

being
exercised (either as a loan to the Holder or from the proceeds of the sale of
Stock issued or transferred pursuant to that exercise of the Option), and the
Company shall cause the shares with respect to which the Option was so
exercised to be delivered to the brokerage firm. Such transactions shall be
effected in accordance with such procedures (which may include payment of the
exercise price by, or delivery of Stock to, such brokerage firm) as the
Committee may establish from time to time. 

          6.9
Reload Provisions. The Committee may cause one or more Option Agreements
to contain provisions pursuant to which a Holder who pays all or a portion of
the Exercise Price of an Option, or the tax required to be withheld pursuant to
the exercise of an Option, by surrendering (or having withheld) shares of Stock
shall automatically be granted an Option for the purchase of the number of
shares of Stock equal to the number of shares so surrendered (or withheld) (a
“Reload Option”). With respect to an Incentive Option, no Holder shall be
entitled to a Reload Option unless the Holder’s Option Agreement, as of the
Date of Grant, provides for the Reload Option. The Date of Grant of the Reload
Option shall be the date on which the Holder surrenders (or the Company
withholds) the shares of Stock in respect of which the Reload Option is
granted. The Reload Option shall have an Exercise Price equal to the Fair
Market Value per share of Stock on the Date of Grant of the Reload Option and
shall have a term that is no longer than the remaining term of the underlying
Option. If a Reload Option relates to shares surrendered or withheld in
connection with the exercise of an Incentive Option, then for purposes of the
Plan such Reload Option shall be considered an Incentive Option provided that
such Reload Option otherwise satisfies the requirements for an incentive stock
option under Section 422 of the Code; otherwise, a Reload Option shall be
treated as a Nonstatutory Option for purposes of the Plan. Option Agreements
containing provisions for Reload Options may contain such terms, conditions and
limitations with respect to such Reload Options as the Committee may determine
(which may include vesting provisions, limitations on the number of shares
subject to Reload Options or the number of times Reload Options shall be
granted, or prohibitions on the grant of Reload Options with respect to Options
exercised following acceleration of vesting or following or in anticipation of
a Change in Control). Separate Option Agreements may from time to time be
granted by the Company to existing Holders of Nonstatutory Options or Incentive
Options to provide the same benefit to such Holders as the Reload Options
described in the foregoing provisions of this Section 6.9, but any such stand
alone Options shall not be deemed to be Reload Options for purposes of the
Plan. 

          6.10
Limitation on Aggregate Value of Shares That May Become First Exercisable
During Any Calendar Year Under an Incentive Option. With respect to any
Incentive Option granted under the Plan, the aggregate Fair Market Value of
shares of Stock subject to an incentive stock option that first becomes
exercisable by a Holder in any calendar year (under all plans of the Company,
its Subsidiaries that are subsidiary corporations, or are treated as, or as
part of, a subsidiary corporation of the Company (within the meaning of Section
424 of the Code) or any predecessor corporation) may not (with respect to that
Holder) exceed $100,000, or such other amount as may be prescribed under
Section 422 of the Code. As used in the previous sentence, Fair Market Value
shall be determined as of the date the Incentive Option is granted, and the
limitation shall be applied by taking into account Incentive Options in the
order in which they were granted. For purposes of this Section 6.10,
“predecessor corporation” means (a) a corporation that was a party to a
transaction described in Section 424(a) of the Code (or which would be so
described if a substitution or assumption under that section had been effected)
with the Company, (b) a corporation which, at the time the new incentive stock
option (within the meaning of Section 422 of the Code) is granted, is a related
corporation of the Company, or (c) a predecessor corporation of any such
corporations. Failure to comply with this Section 6.10 (including any such
failure resulting from accelerated vesting of an Incentive Option) shall not
impair the enforceability or exercisability of any Incentive Option, but shall
cause the Incentive Option to be treated as a Nonstatutory Option for federal
tax purposes to the extent that it exceeds the $100,000 limitation described in
this Section 6.10. 

          6.11
No Fractional Shares. The Company shall not in any case be required to
sell, issue, transfer or deliver any fractional shares with respect to any
Option. In lieu of the issuance or transfer of any fractional share of Stock,
the Company shall pay to the Holder an amount in cash equal to the same
fraction (as the fractional share) of the Fair Market Value of a share of Stock
determined as of the date of the applicable Exercise Notice. 

12

          6.12
Other Provisions Regarding Incentive Options. With respect to any Option
that is designated in the governing Option Agreement as an Incentive Option,
(i) if any of the terms, conditions or limitations of the Plan or the relevant
Option Agreement conflict with the requirements of Sections 421, 422 and 424 of
the Code, as applicable, then those conflicting terms, conditions and
limitations shall be deemed inoperative to the extent they so conflict with
such requirements, and (ii) if the Plan or such Option Agreement does not
contain any provision required to be included herein or therein under Sections
421, 422 and 424 of the Code, as applicable, that provision shall be deemed to
be incorporated herein or therein with the same force and effect as if that
provision had been set out at length herein or therein, in each case unless the
Committee determines to treat such Option (in whole or in part) as a
Nonstatutory Option. Notwithstanding the foregoing, however, (i) to the extent
that any Option that was intended to qualify as an Incentive Option
nevertheless cannot so qualify, that Option (to that extent) shall be deemed a
Nonstatutory Option for all purposes of the Plan, and (ii) in no event shall
this Section 6.12 operate to overcome the terms under which such Option vests
(including any accelerated vesting, to the extent applicable). 

VII.

PERFORMANCE UNITS

          All
Performance Units granted under the Plan shall comply with, and the related
Award Agreements shall be subject to, the terms, conditions and limitations set
forth in this Article VII (to the extent each such term, condition or
limitation applies to the form of Performance Unit and provided that, if any
such term, condition or limitation is left to the discretion of the Committee,
the Committee determines to apply it to such Performance Unit) and also to the terms,
conditions and limitations set forth in Article XI (to the extent each such
term, condition or limitation applies to the form of Performance Unit and
provided that, if any such term, condition or limitation is left to the
discretion of the Committee, the Committee determines to apply it to such
Performance Unit); provided, however, that the Committee may authorize an Award
Agreement governing a Performance Unit that expressly contains or is subject to
terms, conditions and limitations that differ from the terms, conditions and
limitations set forth in Article XI. The Committee may also authorize an Award
Agreement governing a Performance Unit that contains or is subject to any or
all of the terms, conditions and limitations of Article X (to the extent each
such term, condition or limitation applies to the form of Performance Unit and
provided that, if any such term, condition or limitation is left to the
discretion of the Committee, the Committee determines to apply it to such
Performance Unit) or similar terms, conditions and limitations; nevertheless,
no term or provision of Article X (or any similar term, condition or
limitation) shall apply to an Award Agreement governing a Performance Unit
unless such Award Agreement expressly states that such term, condition or
limitation applies. 

          7.1
Number of Units. Each Award Agreement governing a Performance Unit shall
state the total number of Performance Units to be awarded under that Award
Agreement. 

          7.2
Performance Period; Vesting. Each Award Agreement governing a
Performance Unit shall state (i) the beginning and ending dates of the relevant
Performance Period(s), (ii) any time, periods or other conditions in or
pursuant to which the right to receive the Performance Unit or a portion thereof
shall vest and (iii) the number of Performance Units (or portions thereof) with
respect to each such vesting. 

          7.3
Multiple Grants. The Committee may make grants of Performance Units in
such a manner that two or more Performance Periods (which need not be the same
period or of the same duration) are in progress simultaneously. At or before
the beginning of each Performance Period, the Committee shall establish the
contingent value of each Performance Unit for that Performance Period, which may
vary depending on the degree to which performance objectives established by the
Committee are met 

          7.4
Performance Standards. At or before the beginning of each Performance
Period, the Committee shall (i) establish for that Performance Period such
specific performance objectives as the Committee believes are relevant to the
Company’s overall business objectives, (ii) determine the minimum and maximum
value of a 

13

Performance
Unit (which may be equal to the Fair Market Value per share of Stock as of a
specified date) and the value of a Performance Unit based on the degree to
which performance objectives are achieved, exceeded or not achieved, (iii)
determine a minimum performance level below which Performance Units will be
assigned a value of zero, and a maximum performance level above which the value
of Performance Units will not increase, and (iv) notify each Holder of a
Performance Unit for that Performance Period in writing of the established
performance objectives and minimum, target, and maximum Performance Unit value
for that Performance Period.

          7.5
Modification of Standards. If the Committee determines that the
established performance measures or objectives are no longer suitable to the
Company’s objectives because of a change in the Company’s business, operations,
corporate structure, capital structure, or other conditions the Committee deems
to be material, the Committee may modify the performance measures and
objectives as it considers appropriate and equitable, provided that, with
respect to any award of a Performance Unit to a Holder who is a “covered
employee” as defined in Section 162(m), this Section 7.5 shall not be
interpreted to authorize the adjustment of performance measures or objectives
in a manner proscribed by Treas. Reg. §1.162-27(e)(2)(iii) or any successor
provision. 

          7.6
Payment for Units. The basis for payment of Performance Units for a
given Performance Period shall be the achievement of those performance
objectives determined by the Committee at the beginning of the Performance
Period (subject to modification pursuant to Section 7.5). If minimum
performance is not achieved or exceeded for a Performance Period, no payment
shall be made and all contingent rights shall cease. If minimum performance is
achieved or exceeded, the value of a Performance Unit shall be based on the
degree (as determined by the Committee) to which actual performance exceeded
the pre-established (or modified) minimum performance standards. Unless
otherwise provided in the relevant Award Agreement, the amount of payment shall
be determined by multiplying the number of Performance Units granted at the
beginning of the Performance Period that have vested by the final Performance
Unit value. Payments shall be made in whole shares of Stock valued at Fair
Market Value on the last day of the applicable Performance Period or, if so
determined by the Committee, solely in cash or a combination of cash and Stock.
If the Committee decides to make full payment in shares of Stock and the amount
payable results in a fractional share, payment for the fractional share shall
be made in cash. In the event that shares of Stock that are subject to
substantial risk of forfeiture are awarded in satisfaction of Performance
Units, such shares may be registered in the name of the Holder and deposited,
together with a stock power endorsed in blank, with the Company. Except as may
be otherwise provided in the relevant Award Agreement, any payments with
respect to Performance Units may be made in a lump sum or in installments, as
the Committee may determine, and any lump sum payments shall be made as soon as
practicable following the end of the relevant Performance Period(s). 

          7.7
Compliance with Section 409A. Each Performance Unit shall comply with
the requirements of subsection (a) of Section 409A, if applicable, and be
operated in accordance with such requirements.

VIII.

STOCK APPRECIATION RIGHTS

          All
Stock Appreciation Rights granted under the Plan shall comply with, and the
related Award Agreements shall be subject to, the terms, conditions and
limitations set forth in this Article VIII (to the extent each such term,
condition or limitation applies to the form of Stock Appreciation Right and
provided that, if any such term, condition or limitation is left to the
discretion of the Committee, the Committee determines to apply it to such Stock
Appreciation Right) and also to the terms, conditions or limitations set forth
in Article XI (to the extent each such term, condition or limitation applies to
the form of Stock Appreciation Right and provided that, if any such term,
condition or limitation is left to the discretion of the Committee, the
Committee determines to apply it to such Stock Appreciation Right); provided,
however, that the Committee may authorize an Award Agreement governing a Stock
Appreciation Right that expressly contains or is subject to terms, conditions
and limitations that differ from any of the terms, conditions and limitations
set forth in Article XI. The Committee may also authorize an Award Agreement
governing a Stock Appreciation Right that contains or is subject to any or all
of the terms, conditions and limitations of Article X (to the extent each such
term, condition or limitation applies to the form of Stock 

14

Appreciation
Right and provided that, if any such term, condition or limitation is left to
the discretion of the Committee, the Committee determines to apply it to such
Stock Appreciation Right)or
similar terms, conditions and limitations; nevertheless, no term, condition or
limitation of Article X (or any similar term, condition or limitation) shall
apply to an Award Agreement governing a Stock Appreciation Right unless such
Award Agreement expressly states that such term, condition or limitation applies.

          8.1
Type of Award. A Stock Appreciation Right may be granted to an Eligible
Individual (a) in connection with an Option, either at the time of grant or at
any time during the term of the Option (a “Linked Stock Appreciation Right”),
or (b) without relation to an Option (a “Non-Linked Stock Appreciation Right”).
Each Award Agreement relating to a Stock Appreciation Right shall identify the
Stock Appreciation Rights evidenced thereby as Linked Stock Appreciation Rights
or Non-Linked Stock Appreciation Rights, as the case may be, and no Award
Agreement with respect to Stock Appreciation Rights shall cover both Linked
Stock Appreciation Rights and Non-Linked Stock Appreciation Rights. 

          8.2
Linked Stock Appreciation Rights. A Linked Stock Appreciation Right
shall entitle the Holder, upon exercise, to surrender the related Option or any
portion thereof, to the extent unexercised, and to receive payment of an amount
computed pursuant to Paragraph 8.2(b). That Option shall then cease to be exercisable
to the extent surrendered. No Linked Stock Appreciation Right shall be issued
if the Committee determines that such issuance may cause the Linked Stock
Appreciation Right, the related Option, or both to constitute or to include a
deferral of compensation subject to Section 409A. A Linked Stock Appreciation
Right shall relate to the same number of shares of Stock as the Option to which
it relates, and shall be subject to the terms of the Option Agreement for the
related Option, but shall also be subject to the following additional
provisions.

                    
(a) A Linked Stock Appreciation Right shall be exercisable only at such
time or times and only to the extent that the related Option is exercisable
(provided, however, that a Linked Stock Appreciation Right shall be exercisable
only if and to the extent that the Fair Market Value per share of Stock that is
subject to the related Option exceeds the Exercise Price for such Option) and
shall not be transferable except to the extent that the related Option is
transferable. Without limitation of the foregoing, to the extent that the
related Option terminates, expires or has been exercised, the Linked Stock
Appreciation Right shall terminate. 

                    (b)
Value of Right. Upon the exercise of a Linked Stock Appreciation Right,
the Holder shall be entitled to receive payment from the Company of an amount
determined by multiplying: 

	
 

	
 

	
 

	
 

	
(1)

	
The
 difference obtained by subtracting the Exercise Price of a share of Stock
 specified in the related Option from the Fair Market Value of a share of
 Stock on the date of exercise of the Linked Stock Appreciation Right, by 

	
 

	
 

	
 

	
 

	
(2)

	
The number
 of shares as to which that Linked Stock Appreciation Right has been
 exercised. 

          8.3
Non-Linked Stock Appreciation Rights. A Non-Linked Stock Appreciation
Right shall be exercisable as determined by the Committee and set forth in the
Award Agreement governing the Non-Linked Stock Appreciation Right, which Award
Agreement shall comply with the following provisions: 

                    (a)
Number of Shares. Each Award Agreement shall state the total number of
shares of Stock to which the Non-Linked Stock Appreciation Right relates. 

                    (b)
Vesting. Each Award shall vest ratably over five (5) years commencing
from the Date of Grant, unless the Award Agreement states (i) any time, periods
or other conditions in or pursuant to which the right to exercise the
Non-Linked Stock Appreciation Right or a portion thereof shall vest and (ii)
the number (or method of determining the number) of shares of Stock with
respect to each such vesting. 

                    (c)
Expiration. Each Award Agreement shall state the date at which the
Non-Linked Stock Appreciation Right shall expire to the extent not previously
exercised. 

15

                    (d)
SAR Exercise Price; Value of Right. Each Award Agreement shall state the
SAR Exercise Price, which SAR Exercise Price shall not be less than one hundred
percent (100%) of the Fair Market Value per share of the Stock on the Date of
Grant of the Non-Linked Stock Appreciation Right. A Non-Linked Stock
Appreciation Right shall entitle the Holder, upon exercise of the Non-Linked
Stock Appreciation Right, to receive payment of an amount determined by
multiplying: 

	
 

	
 

	
 

	
 

	
(1)

	
the
 difference obtained by subtracting the SAR Exercise Price from the Fair
 Market Value of a share of Stock on the date of exercise of the Non-Linked
 Stock Appreciation Right, by 

	
 

	
 

	
 

	
 

	
(2)

	
the number
 of vested rights as to which the Non-Linked Stock Appreciation Right has been
 exercised. 

          8.4
Method of Exercise. Each Stock Appreciation Right shall be exercisable
only by notice of exercise (the “Exercise Notice”) in the manner specified by
the Committee from time to time (which need not comply with Section 13.14 if
expressly so provided by the Committee) to the officer of the Company then
designated as its Secretary at the principal executive offices of the Company
(or to such other person and location as may be designated from time to time by
the Committee) during the term of the Stock Appreciation Right, which notice
shall (a) state the number of shares of Stock with respect to which the Stock
Appreciation Right is being exercised, (b) be signed or otherwise given by the
Holder of the Stock Appreciation Right or by another person authorized to
exercise the Stock Appreciation Right pursuant to the Plan or the relevant
Award Agreement, and (c) include such other information, instruments and
documents as may be required to satisfy any other condition under the Plan or
the relevant Award Agreement. The Stock Appreciation Right shall not be deemed
to have been exercised unless all of the requirements of the preceding
provisions of this Section 8.4 have been satisfied. 

          8.5
Limitations on Rights. Notwithstanding Paragraph 8.2(b) and Paragraph
8.3(d), the Committee may limit the amount payable upon exercise of a Stock
Appreciation Right. Any such limitation must be set forth in the Award
Agreement governing the Holder’s Stock Appreciation Right. 

          8.6
Payment of Rights. Payment of the amount determined under Paragraph
8.2(b) or Paragraph 8.3(d) and Section 8.5 may be made solely in whole shares
of Stock valued at the Fair Market Value per share of Stock on the date of
exercise of the Stock Appreciation Right or, if so determined by the Committee,
solely in cash or a combination of cash and Stock. If the Committee decides to
make full payment in shares of Stock and the amount payable results in a
fractional share, payment for the fractional share shall be made in cash
(subject to the proviso in the preceding sentence). 

IX.

RESTRICTED STOCK AWARDS

          All
Restricted Stock Awards granted under the Plan shall comply with, and the
related Award Agreements shall be subject to, the terms, conditions and limitations
set forth in this Article IX (to the extent each such term, condition or
limitation applies to the form of Restricted Stock Award and provided that, if
any such term, condition or limitation is left to the discretion of the
Committee, the Committee determines to apply it to such Restricted Stock Award)
and also to the terms, conditions and limitations set forth in Article XI (to
the extent applicable to the form of Restricted Stock Award and provided that,
if any such term, condition or limitation is left to the discretion of the
Committee, the Committee determines to apply it to such Restricted Stock
Award); provided, however, that the Committee may authorize an Award Agreement
governing a Restricted Stock Award that expressly contains or is subject to
terms, conditions and limitations that differ from the terms, conditions and
limitations set forth in Article XI. The Committee may also authorize an Award
Agreement governing a Restricted Stock Award that contains or is subject to any
or all of the terms, conditions and limitations of Article X (to the extent
applicable to the form of 

16

Restricted
Stock Award and provided that, if any such term, condition or limitation is
left to the discretion of the Committee, the Committee determines to apply it
to such Restricted Stock Award) or similar terms, conditions and limitations;
nevertheless, no term, condition or limitation of Article X (or any similar
term, condition or limitation) shall apply to an Award Agreement governing a
Restricted Stock Award unless the Award Agreement expressly states that such
term, condition or limitation applies. 

          9.1
Number of Shares; Type of Award. Each Award Agreement governing a
Restricted Stock Award shall state the total number of shares of Stock to which
it relates. 

          9.2
Restrictions Applicable to Restricted Stock Awards. Unless otherwise
provided in the relevant Award Agreement, all shares of Stock granted or sold
pursuant to Restricted Stock Awards made under the Plan shall be subject to the
following terms, conditions and limitations: 

                    (a)
Transferability. The shares may not be sold, transferred or otherwise
alienated or hypothecated until the restrictions are removed or expire. 

                    (b)
Legend. Each certificate representing such shares shall bear a legend
making appropriate reference to the restrictions imposed, including
restrictions imposed by the Securities Act. The text of each legend shall be
determined by the Company. 

                    (c)
Possession. The Committee may (i) authorize issuance of a certificate
for shares associated with a Restricted Stock Award only upon removal or
expiration of the applicable restrictions, (ii) require the Company to retain
physical custody of certificates representing shares issued or transferred
pursuant to Restricted Stock Awards during the restriction period and require
the Holder of the Award to execute stock powers in blank for those certificates
and deliver those stock powers to the Company, (iii) require the Holder to
enter into an escrow agreement providing that the certificates representing
shares issued or transferred pursuant to Restricted Stock Awards shall remain
in the physical custody of an escrow holder until all restrictions are removed
or expire, or (iv) take such other steps as the Committee may determine in
order to enforce such restrictions. 

                    (d)
Expiration or Removal of Restrictions. The restrictions imposed pursuant
to this Section 9.2 on Restricted Stock Awards shall expire as determined by
the Committee and set forth in the applicable Award Agreement. Expiration of
the restrictions may be based on or conditioned on the passage of time,
continuing employment or service as an employee or officer, achievement of
performance objectives, or other events, occurrences or conditions determined
by the Committee. Each Restricted Stock Award may have different restrictions,
including a different restriction period, as determined by the Committee. The
Committee may remove any restriction or reduce any restriction period
applicable to a particular Restricted Stock Award. Upon the expiration or
removal of all restrictions, the Company shall deliver to the Holder of the
Restricted Stock Award, as soon as practicable following the request of such Holder,
a certificate representing the number of shares for which such restrictions
have expired or been removed, free of any restrictive legend relating to the
expired or removed restrictions. 

                    (e)
Rights as Stockholder. Subject to the provisions of this Section 9.2,
the Committee may determine what rights, if any, the Holder shall have with
respect to the Restricted Stock Awards granted or sold, including any right to
vote the related shares or to receive dividends and other distributions paid or
made with respect thereto. 

                    (f)
Other Conditions. The Committee may impose such other terms, conditions
or limitations on any shares granted or sold pursuant to Restricted Stock
Awards made under the Plan as it may deem advisable, including (i) restrictions
under the Securities Act or Exchange Act, (ii) restrictions relating to the
requirements of any securities exchange or quotation system upon which the
shares or shares of the same class are listed or traded, and (iii) restrictions
relating to any state or foreign securities law applicable to the shares. 

17

          9.3
Purchase and Payment. If any shares of Stock are to be sold rather than
granted pursuant to Restricted Stock Awards made under the Plan, then the
relevant Award Agreement shall set forth the price to be paid for such shares
and the method of payment. 

          9.4
Compliance with Section 409A. Each Restricted Stock Award shall comply
with the requirements of subsection (a) of Section 409A, if applicable, and be
operated in accordance with such requirements. 

X.

CHANGE IN CONTROL PROVISIONS

          The
Committee may authorize an Award that contains or is subject to any or all of
the terms, conditions and limitations of this Article X or similar terms, conditions
and limitations; nevertheless, no term, condition or limitation of this Article
X (or any similar term, condition or limitation) shall apply to an Award unless
the related Award Agreement expressly states that such term, condition or
limitation applies. 

          10.1
Changes in Control. Immediately prior to the occurrence of a Change in
Control (or at such other time prior to a Change in Control or proposed Change
in Control as may be determined by the Committee), (a) all outstanding Options
and Stock Appreciation Rights shall immediately become fully vested and
exercisable in full, including that portion of any Options or Stock
Appreciation Rights that pursuant to the terms and provisions of the applicable
Award Agreement had not yet become exercisable; and (b) the expiration of the
restrictions applicable to all outstanding Restricted Stock Awards shall
immediately be accelerated so that the Stock subject to those Awards shall be
owned by the Holders thereof without transfer restrictions or risks of
forfeiture. Nothing in this Section 10.1 shall impose on any Holder any
obligation to exercise any Award immediately before or upon any Change in
Control, nor shall any Holder forfeit the right to exercise any Award during
the remainder of the original term of the Award because of a Change in Control,
except as provided under Article XI (if applicable), under other provisions
governing termination or expiration of the applicable Award, or as provided in
the following sentence. Notwithstanding the foregoing, the Committee may, by
notice to any or all Holders, provide that all or any portion of any
outstanding Option or Stock Appreciation Right (whether vested prior to the
Change in Control or subject to accelerated vesting due to the Change in
Control) that is not exercised within a specified time period (as determined by
the Committee) ending on or before the Change in Control shall terminate upon
the Change in Control (or at such later time as may be determined by the
Committee) and in such event such unexercised Options or Stock Appreciation
Rights shall terminate upon the Change in Control, notwithstanding any
provisions of this Plan that would allow for a later exercise, including
Article XI if applicable.

XI. 

ADDITIONAL PROVISIONS

          The
terms, conditions and limitations of this Article XI shall apply to each Award
(unless, pursuant to the relevant Award Agreement, such term, condition or
limitation is inapplicable or is altered); provided, however, that the
Committee may authorize an Award Agreement that expressly contains terms,
conditions and limitations that differ from the terms, conditions and
limitations set forth in this Article XI. 

          11.1
Adjustment of Awards and Authorized Stock. The terms of an Award and the
Stock authorized for issuance or transfer under the Plan shall be subject to
adjustment from time to time in accordance with the following provisions:

                    (a)
In the event that the Committee shall determine that any dividend or other
distribution (whether in the form of cash, Stock, other securities, or other
property or assets), reclassification, consolidation, Stock split, reverse
Stock split, recapitalization, reorganization, merger, plan of exchange,
split-up, spin off, combination, repurchase, issuance or transfer of securities
or other similar transaction or event affects the shares of Stock such that an
adjustment is determined by the Committee to be appropriate in order to prevent
dilution or enlargement of the benefits or potential benefits made or intended
to be made available under the Plan, then the Committee shall, in such manner
as it may deem equitable, (i) adjust any or all of (w) the number and type of
shares of Stock (or other securities, property or assets) which thereafter may
be made the subject of Awards, (x) the number and type of 

18

shares of
Stock (or other securities, property or assets) subject to outstanding Awards,
(y) the number and type of shares of Stock (or other securities, property or
assets) specified as the Maximum Shares, Available Shares, any limitation per
Eligible Individual (pursuant to Section 5.7 or otherwise) or other
restriction, and (z) the grant, purchase or exercise price of, or amount
payable with respect to, any Award; or (ii) if deemed appropriate by the
Committee, provide for a cash payment to the Holder of an outstanding Award.
Notwithstanding the foregoing, however, with respect to any Awards of Incentive
Options, no such adjustment shall be authorized except to the extent that such
adjustment complies with the rules of Section 424(a) of the Code, and in no
event shall any such adjustment be made that would render any Incentive Option
granted hereunder other than an “incentive stock option” for purposes of
Section 422 of the Code (unless the Committee determines to treat such Option as
a Nonstatutory Option). In addition, notwithstanding the foregoing, with
respect to any Option or Stock Appreciation Right, no adjustment shall be made
that would cause such Option or Stock Appreciation Right to constitute a
deferral of compensation subject to the requirements of Section 409A. 

                    (b)
Whenever outstanding Awards are required to be adjusted as provided in this
Section 11.1, the Committee shall promptly prepare and provide to each Holder a
notice setting forth, in reasonable detail, the event requiring adjustment, the
amount of the adjustment, the method by which such adjustment was calculated,
and the change in price and the number of shares of Stock, other securities,
cash, property or assets purchasable subject to each Award after giving effect
to the adjustments. 

                    (c)
Adjustments under Paragraph 11.1(a) shall be made by the Committee. No
fractional interests shall be issued or transferred under the Plan on account
of any such adjustments. 

                    (d)
The existence of the Plan and any Awards granted hereunder shall not affect in
any way the right or power of the Company or its shareholders to make or
authorize any and all adjustments, recapitalizations, reorganizations or other
changes in the Company’s capital structure or business, or any merger or
consolidation of the Company, or any issue of bonds, debentures, preferred or
prior preference stock or other securities ahead of or affecting the Company’s
common stock or the rights thereof, or the dissolution or liquidation of the
Company or any sale, exchange or transfer of all or any part of its assets or
business, or any other corporate act or proceedings, whether of a character
similar to that described in Paragraph 11.1(a) or this Paragraph 11.1(d) or
otherwise. Except as may be expressly provided in this Section 11.1, the
Company’s issuance or transfer of securities of any class, for money, services,
other property or assets, or otherwise, upon direct sales, upon the exercise of
rights or warrants to subscribe therefor, upon conversion of shares or
obligations of the Company convertible into shares, or otherwise, shall not
affect, and no adjustment by reason thereof shall be made with respect to, the
number, price or other attributes of Stock subject to the Plan or to Awards
granted hereunder. 

          11.2
Termination of Employment Other than for Death, Disability or Normal
Retirement. Subject to Section 11.20, if a Holder’s employment is
terminated for any reason other than that Holder’s death, Disability or Normal
Retirement, then the following provisions shall apply to all Awards held by
that Holder: 

                    (a)
If such termination was by the Company or a Subsidiary, as applicable, as a
result of a Covered Event, then the following provisions shall apply to all
Awards held by that Holder: 

	
 

	
 

	
 

	
 

	
(1)

	
That
 portion, if any, of all Options or Stock Appreciation Rights held by that
 Holder that have not been exercised as of the time of the termination of
 employment shall be null and void as of the time of the termination of
 employment; and 

	
 

	
 

	
 

	
 

	
(2)

	
That
 portion, if any, of any Restricted Stock Awards held by that Holder with
 respect to which the restrictions have not expired or been removed (by
 acceleration or otherwise) as of the time of the termination of employment
 shall be forfeited as of the time of the termination of employment; and 

19

                    (b)
If such termination was (i) by the Company or a Subsidiary, as applicable, but
not as a result of a Covered Event or (ii) by the Holder, then the following
provisions shall apply to all Awards held by that Holder: 

	
 

	
 

	
 

	
 

	
 

	
(1)

	
That
 portion, if any, of all Options or Stock Appreciation Rights held by that
 Holder that are not yet exercisable (by acceleration or otherwise) as of the
 time of the termination of employment shall be null and void as of the time
 of the termination of employment; 

	
 

	
 

	
 

	
 

	
(2)

	
That
 portion, if any, of all Options or Stock Appreciation Rights held by that
 Holder that are exercisable (by acceleration or otherwise) but have not been
 exercised as of the time of the termination of employment shall be
 exercisable by that Holder until the earlier of: 

	
 

	
 

	
 

	
 

	
 

	
(A)

	
the
 termination of the Option or Stock Appreciation Right; or 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
(i) three
 (3) months after the date of the termination of employment in the case of
 termination by the Company or a Subsidiary but not as a result of a Covered
 Event; and (ii) thirty (30) days after the date of the termination of
 employment in the case of termination by the Holder; provided, however, that
 if the termination was by the Company but not as a result of a Covered Event
 and the Holder dies within the three (3) month period described in clause (i)
 of this subparagraph or if the termination was by the Holder and the Holder
 dies with the thirty (30) day period described in clause (ii) of this
 subparagraph, then such three (3) month period or such thirty (30) day
 period, as applicable, shall automatically be extended to one (1) year after
 the date of the termination of employment; 

	
 

	
 

	
 

	
 

	
 

	
 

	
(and any
 portion of any Option or Stock Appreciation Right not exercised prior to the
 expiration of the relevant period shall be null and void); 

	
 

	
 

	
 

	
 

	
(3)

	
That
 portion, if any, of any Performance Units held by that Holder that have not been
 fully earned (by acceleration or otherwise) at the time of the termination of
 employment shall be forfeited as of the time of termination of employment;
 and 

	
 

	
 

	
 

	
 

	
 

	
(4)

	
That
 portion, if any, of any Restricted Stock Awards held by that Holder with
 respect to which the restrictions have not expired or been removed (by
 acceleration or otherwise) as of the time of the termination of employment
 shall be forfeited as of the time of the termination of employment. 

          11.3
Termination of Employment for Death or Disability. Subject to Sections
11.20, if a Holder’s employment is terminated by reason of the death or
Disability of such Holder, then the following provisions shall apply to all
Awards held by that Holder: 

                    (a)
That portion, if any, of all Options or Stock
Appreciation Rights held by that Holder that are not yet exercisable (by
acceleration or otherwise) as of the time of the termination of employment
shall be null and void as of the time of the termination of employment; 

                    (b)
That portion, if any, of all Options or Stock Appreciation Rights held by that
Holder that are exercisable (by acceleration or otherwise) but have not been
exercised as of the time of the termination of employment shall be exercisable
by that Holder or that Holder’s Designated Beneficiary, guardian, legal
representatives, legatees or distributees until the earlier of: 

20

	
 

	
 

	
 

	
 

	
(1)

	
the
 termination of the Option or Stock Appreciation Right; or 

	
 

	
 

	
 

	
 

	
(2)

	
one (1) year
 after the date of the termination of employment; 

(and any
portion of any Option or Stock Appreciation Right not exercised prior to
expiration of the relevant period shall be null and void); 

                    (c)
That portion, if any, of any Performance Units held by that Holder that have
not been fully earned (by acceleration or otherwise) at the time of the
termination of employment shall be forfeited as of the time of termination of
employment, unless the Committee, taking into consideration the performance of
such Holder and the performance of the Company over the relevant Performance
Period (or, in the discretion of the Committee, that portion of the relevant
Performance Period which has been completed at the time of the termination of
employment), specifically authorizes the payment to such Holder (or such
Holder’s Designated Beneficiary, guardian, legal representatives, legatees,
heirs or distributees) of all or portion of the amount which would have been
paid to such Holder had such Holder continued as an employee through the end of
the Performance Period (any such payment to be made in such a time and manner
as would have occurred if the Holder’s employment had not terminated before the
expiration of the Performance Period, unless otherwise determined by the
Committee); 

                    (d)
That portion, if any, of any Restricted Stock Awards held by that Holder with
respect to which the restrictions have not expired or been removed (by
acceleration or otherwise) as of the time of the termination of employment
shall be forfeited as of the time of the termination of employment; provided,
however, that, (i) subject to clause (ii) below, upon the time of the
termination of employment, such restrictions shall be deemed removed with
respect to such number of shares of Stock subject to each such Restricted Stock
Award as is equal to the product of (x) a fraction, the numerator of which is
the number of completed months elapsed from the Date of Grant through the time
of the termination of employment and the denominator of which is the number of
months in the original restriction period for the relevant Restricted Stock
Award and (y) the number of shares of Stock subject to the relevant Restricted
Stock Award; and (ii) clause (i) above shall not apply if such restrictions,
pursuant to the relevant Award Agreement, were to expire on a monthly or daily
basis. 

                    (e)
If a Holder’s employment is terminated due to a physical or mental impairment
or condition of any degree of severity or permanence, but the Committee does
not inform the Holder in writing that the Holder’s employment is terminated due
to “Disability” for the purposes of this Section, such Holder’s employment is
not terminated due to “Disability” for the purposes of this Section. 

          11.4
Termination of Employment for Normal Retirement. Subject to Section
11.20, if a Holder’s employment is terminated by reason of the Holder’s Normal
Retirement, then the following provisions shall apply to all Awards held by
that Holder: 

                    (a)
That portion, if any, of all Options or Stock Appreciation Rights held by that
Holder that are not yet exercisable (by acceleration or otherwise) as of the
time of the termination of employment shall be null and void as of the time of
the termination of employment; 

                    (b)
That portion, if any, of all Options or Stock Appreciation Rights held by that
Holder that are exercisable (by acceleration or otherwise) but have not been
exercised as of the time of the termination of employment shall be exercisable
by that Holder until the earlier of: 

	
 

	
 

	
 

	
 

	
(1)

	
the
 termination of the term of the Option or Stock Appreciation Right; or 

	
 

	
 

	
 

	
 

	
(2)

	
three (3)
 months after the date of the termination of employment; provided, however,
 that if that Holder dies within such three (3) month period, then such three
 (3) month period shall automatically be extended to one (1) year after the
 date of the termination of employment; 

21

(and any
portion of any Option or Stock Appreciation Right not exercised prior to the
expiration of the relevant period shall be null and void); 

                    (c)
That portion, if any, of any Performance Units held by that Holder that have
not been fully earned (by acceleration or otherwise) at the time of the
termination of employment shall be forfeited as of the time of termination of
employment, unless the Committee, taking into consideration the performance of
such Holder and the performance of the Company over the relevant Performance
Period (or, in the discretion of the Committee, that portion of the Performance
Period which has been completed at the time of the termination of employment),
specifically authorizes the payment to such Holder of all or portion of the
amount which would have been paid to such Holder had such Holder continued as
an employee through the end of the Performance Period (any such payment to be
made in such a time and manner as would have occurred if the Holder’s
employment had not terminated before the expiration of the Performance Period,
unless otherwise determined by the Committee); and 

                    (d)
That portion, if any, of any Restricted Stock Awards held by that Holder with
respect to which the restrictions have not expired or been removed (by
acceleration or otherwise) as of the time of the termination of employment
shall continue until they expire or are removed; provided, however, that any
restrictions that require forfeiture of the Restricted Stock Award solely based
on termination of employment shall be deemed removed as of the time of the
termination of employment. 

          11.5
Cause of Termination; Employment Relationship. For purposes of this
Article XI, the Committee shall have the authority to determine whether any
Eligible Individual’s employment with the Company or any Subsidiary, as
applicable, terminated as a result of death, Disability, Normal Retirement, a
Covered Event, or any other cause or reason. For purposes of Incentive Options,
an employment relationship shall be deemed to exist between a Holder and the
Company or a Subsidiary that is a subsidiary corporation, or is treated as, or
as part of, a subsidiary corporation of the Company (within the meaning of
Section 424 of the Code) while the Holder is on military leave, sick leave or
other bona fide leave of absence (such as temporary employment by the
government) if the period of such leave does not exceed ninety (90) days, or, if
longer, so long as the Holder’s right to re-employment with the Company or
Subsidiary that is a subsidiary corporation, or is treated as, or as part of, a
subsidiary corporation of the Company (within the meaning of Section 424 of the
Code) is guaranteed either by statute or by contract. Where the period of leave
exceeds ninety (90) days and where the Holder’s right to re-employment is not
guaranteed by statute or by contract, termination of employment shall be deemed
to have occurred on the ninety-first (91st) day of such leave. 

          11.6
Exercise Following Death or Disability.

                    (a)
All Options or Stock Appreciation Rights that remain subject to exercise
following the death of the Holder may be exercised by the Holder’s beneficiary
as designated by the Holder on such forms and in accordance with such
procedures as may be required or authorized by the Committee from time to time
(a “Designated Beneficiary”) or, in the absence of an authorized designation,
by the legatee or legatees of such Options or Stock Appreciation Rights under
the Holder’s last will, or by such Holder’s legal representatives, heirs or
distributees. If an Option or Stock Appreciation Right shall be exercised by
any Person referenced above (other than a Designated Beneficiary), notice of
exercise shall be accompanied by a certified copy of letters testamentary or
equivalent proof of the right of such Person to exercise such Option or Stock
Appreciation Right. 

                    (b)
All Options or Stock Appreciation Rights that remain subject to exercise following
the Disability of the Holder may be exercised by the Holder or by the Holder’s
guardian or legal representative that meets the requirements of Section 11.7 on
such forms and in accordance with such procedures as may be required or
authorized by the Committee from time to time (which may include proof of the
status of such guardian or legal representative). 

          11.7
Transferability of Awards. No Option, Performance Unit, Restricted Stock
Award or Stock Appreciation Right shall be transferable or subject to pledge,
encumbrance or any other disposition in any manner, whether by operation of law
or otherwise, other than (to the extent such a transfer is not prohibited by
Paragraph 9.2(a) or other provisions of this Plan or the relevant Award
Agreement) by (i) will or the laws of descent and 

22

distribution
or (ii) with respect to all Awards other than Incentive Options (and with the
approval of the Committee), by a domestic relations order. Any Award requiring
exercise shall be exercisable during a Holder’s lifetime only by that Holder or
by that Holder’s guardian or legal representative; provided, however, that,
under applicable state law, the guardian or legal representative is a mere
custodian of the Holder’s property or assets, standing in a fiduciary
relationship to the Holder and subject to court supervision. Notwithstanding
anything in this Section 11.7 to the contrary, however, the Committee may
determine to grant a Nonstatutory Option that is transferable by a Holder (but
not by a Holder’s transferee) to any member of the Holder’s immediate family,
to a trust established for the exclusive benefit of one or members of the
Holder’s immediate family, to a partnership or other entity of which the only
partners or interest holders are members of the Holder’s immediate family, and
to a charitable organization, or to any of the foregoing; provided, however,
that (i) the Holder receives no consideration for the transfer, (ii) the Holder
gives the Committee at least fifteen (15) days prior written notice of any
proposed transfer, and (iii) the Holder and transferee shall comply with such
other requirements as the Committee may require from time to time to assure
compliance with applicable laws, including federal, state and foreign
securities laws. Following any transfer permitted by the preceding sentence, a
transferred Nonstatutory Option shall continue to be subject to the same terms,
conditions and limitations that were applicable immediately prior to its
transfer and shall be exercisable by the transferee only to the extent and for
the periods that it would have been exercisable by the Holder. The Committee
may amend an outstanding Nonstatutory Option to provide that the Nonstatutory
Option shall be transferable in the manner described in the two immediately
preceding sentences. As used in this Section 11.7, the term “immediate family”
shall mean any child, step-child, grandchild, parent, step-parent, grandparent,
spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, and shall include relationships arising from
legal adoption. A beneficiary designation authorized pursuant to any provision
of the Plan or relevant Award Agreement shall not be deemed a transfer or
encumbrance for purposes of this Section 11.7. 

          11.8
Delivery of Certificates of Stock. Subject to Section 11.9 and upon
receipt by the Company of any tax withholding as may be required, the Company
shall promptly deliver one or more certificates representing the number of
shares of Stock as to which vested Awards payable in Stock have been properly
exercised or are otherwise payable (and, with respect to Restricted Stock
Awards, with respect to which restrictions have expired or been removed).If a Holder is entitled to receive
certificates representing Stock received for more than one form of Award under
the Plan, separate Stock certificates may be delivered with respect to each
such Award; further, separate Stock certificates may be delivered with respect
to shares of Stock issued or transferred upon exercise of Incentive Options and
Nonstatutory Options respectively. 

          11.9
Certain Conditions. Nothing herein or in any Award Agreement shall
require the Company to permit any exercise of, or issue or transfer any shares
with respect to, any Award if (i) the Holder has failed to satisfy any term,
condition or limitation of the Plan or the relevant Award Agreement or (ii)
that issuance or transfer would, in the opinion of counsel for the Company,
constitute a violation of the Securities Act, any other applicable law or
regulation (including state and foreign securities laws and regulations), or
any rule of any applicable securities exchange or securities association. At
the time of any grant or exercise of an Option or Stock Appreciation Right, at
the time of any grant or vesting of a Restricted Stock Award, and at the time
of any grant or settlement of any other Award, the Company may, as a condition
precedent to such grant or exercise of that Option or Stock Appreciation Right,
or grant or vesting of the Restricted Stock Award,require from the Holder of the Award (or in the event of the
Holder’s death or Disability, the Holder’s Designated Beneficiary, guardian,
legal representatives, heirs, legatees, or distributees) such written
representations, if any, concerning the Holder’s or such Persons’ intentions
with regard to the retention or disposition of the shares of Stock being
acquired pursuant to the Award and such written covenants and agreements, if
any, as to the manner of disposal of such shares as, in the opinion of counsel
to the Company, may be necessary or appropriate to ensure that any disposition
by that Holder or such other Person will not involve a violation of the
Securities Act, any other applicable law or regulation (including state and
foreign securities laws and regulations), or any rule of any applicable
securities exchange or securities association. The Company may also endorse
such legend or legends upon certificates for any shares of Stock issued or
transferred pursuant to the Plan, and may issue such “stop transfer”
instructions to its transfer agent in respect of such shares, as the Committee
determines from time to time to be necessary or appropriate to (i) prevent a
violation of, or perfect an exemption from, the registration requirements of
the Securities Act or any other applicable state or foreign securities law,
(ii) implement the provisions of the Plan and any relevant Award Agreement, or
(iii) permit 

23

the Company to
determine the occurrence of any disposition of shares of Stock issued or
transferred upon exercise of an Incentive Option that would disqualify the
Incentive Option from the incentive option tax treatment afforded by Section
422 of the Code. 

          11.10
Certain Directors and Officers. If any of the terms, conditions or
limitations of the Plan or any Award Agreement would preclude any award to an
Eligible Individual who is subject to Section 16(b) of the Exchange Act from
qualifying for the exemptions from Section 16(b) of the Exchange Act provided
by Rule 16b-3, then those conflicting terms, conditions or limitations shall be
deemed inoperative to the extent necessary to allow such qualification (unless
the Board of Directors has expressly determined that the Plan, or the Committee
has expressly determined that the Award, should not comply with Rule 16b-3). In
addition, all Award Agreements for Eligible Individuals who are subject to
Section 16(b) of the Exchange Act shall be deemed to include such additional
terms, conditions and limitations as may be required in order for the related
Award to qualify for the exemptions from Section 16(b) of the Exchange Act
provided by Rule 16b-3 (unless the Committee has expressly determined that any
such Award should not comply with the requirements of Rule 16b-3). 

          11.11
Securities Act Legend. The Committee may require that certificates for
some or all shares of Stock issued or transferred pursuant to the Plan have a
legend similar to the following, or statements of other applicable
restrictions, endorsed thereon: 

	
   

  	
   

  	
   

  
	
   

  	
  THE SHARES
  OF STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
  SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THE SHARES
  MAY NOT BE OFFERED FOR SALE, SOLD, PLEDGED, TRANSFERRED, OR OTHERWISE
  DISPOSED OF UNTIL THE HOLDER HEREOF PROVIDES EVIDENCE SATISFACTORY TO THE
  ISSUER (WHICH, IN THE DISCRETION OF THE ISSUER, MAY INCLUDE AN OPINION OF
  COUNSEL SATISFACTORY TO THE ISSUER) THAT SUCH OFFER, SALE, PLEDGE, TRANSFER,
  OR OTHER DISPOSITION WILL NOT VIOLATE APPLICABLE FEDERAL OR STATE LAWS. 

  	
   

  

This legend
shall not be required for shares of Stock issued or transferred pursuant to an
effective registration statement under the Securities Act. 

          11.12
Legend for Restrictions on Transfer. Each certificate representing
shares of Stock issued or transferred to a Holder pursuant to an Award granted
under the Plan shall, if such shares are subject to any transfer restriction,
including a right of first refusal, provided for under the Plan or the relevant
Award Agreement, bear a legend that complies with applicable law with respect
to such transfer restriction, such as: 

	
   

  	
   

  	
   

  
	
   

  	
  THE SHARES
  OF STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON
  TRANSFERABILITY IMPOSED BY THE RODMAN & RENSHAW CAPITAL GROUP, INC. 2007
  STOCK AND INCENTIVE PLAN AS ADOPTED BY RODMAN & RENSHAW CAPITAL GROUP,
  INC. (THE “COMPANY”) ON  ________________,
  ___ AND AN AWARD AGREEMENT THEREUNDER BETWEEN THE COMPANY AND ___________ DATED ______________, _____,
  AND MAY NOT BE TRANSFERRED, SOLD, OR OTHERWISE DISPOSED OF EXCEPT AS THEREIN
  PROVIDED. THE COMPANY WILL FURNISH A COPY OF SUCH INSTRUMENT AND AGREEMENT TO
  THE RECORD HOLDER OF THIS CERTIFICATE WITHOUT CHARGE ON REQUEST TO THE
  COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS OR REGISTERED OFFICE. 

  	
   

  

          11.13
Rights as a Stockholder; Dividends. Except as may be specifically
provided to the contrary by the Committee pursuant to Paragraph 9.2(e) with
respect to a particular Restricted Stock Award, a Holder shall have no right as
a stockholder with respect to any shares of Stock covered by the Holder’s Award
until a certificate representing those shares is issued in the Holder’s name
and subject to any further restrictions imposed in accordance with the Plan.
Except as may be expressly determined by the Committee from time to time with
respect 

24

to one or more
Awards, and subject to such terms, conditions and limitations as the Committee
may establish with respect to the same, no adjustment shall be made for
dividends (whether ordinary or extraordinary, whether in cash or other property
or assets) or distributions or other rights for which the record date is before
the date that the certificate is issued and any such restrictions have expired
or been removed. 

          11.14
No Interest. Neither the value of any shares of Stock, nor any cash or
other property or assets, issued, transferred or delivered with respect to any
Award under the Plan shall bear any interest, even if not issued, transferred
or delivered when required by the Plan, except as may be otherwise provided in
the applicable Award Agreement or as may be required pursuant to rules and
procedures established by the Committee from time to time for the crediting of
such interest. 

          11.15
Furnishing of Information. Each Holder shall furnish to the Company all
information requested by the Company that the Committee deems necessary or
appropriate in order to allow the Company to administer the Plan and any Awards
or to enable it to comply with any reporting or other requirement imposed upon
the Company by or under any applicable law or regulation. 

          11.16
No Obligation to Exercise. No grant of any Award shall impose any
obligation upon the Holder or any other Person to exercise the same or any part
thereof. 

          11.17
Remedies. The Company shall be entitled to recover from a Holder the
Company’s damages, costs and expenses, including reasonable attorneys’ fees,
incurred in connection with the enforcement of any of the terms, conditions or
limitations of the Plan or any Award Agreement, whether by an action to enforce
specific performance, for damages for breach, or otherwise. 

          11.18
Certain Information Confidential. As partial consideration for the
granting of each Award hereunder, each Holder agrees with the Company that such
Holder shall keep confidential all information and knowledge that such Holder
may have relating to the manner, extent and amount of the Holder’s (or any
other Holder’s) participation in the Plan; provided, however, that the Holder
may disclose such information or knowledge to the Holder’s spouse or to the
Holder’s tax or financial advisors, provided such disclosure is made pursuant
to similar terms and conditions (but without any further rights of
distribution). The foregoing obligations of confidentiality shall not apply to
the extent that the Company specifically consents in writing to further
disclosure or to the extent that the information or knowledge becomes generally
and readily available to the public without breach by the Holder or any other
Person of any contractual, fiduciary or other duty owed to the Company or any
of its affiliates. In addition, the foregoing obligations of confidentiality
shall not prohibit a Holder from disclosing such information or knowledge to
the extent such Holder is required to do so by government or judicial order,
provided that such Holder gives the Company prompt written notice of such order
and a reasonable opportunity to limit such disclosure and reasonable assistance
in contesting or limiting any such disclosure. 

          11.19
Dispute Resolution. 

                    (a)
Any claim, demand, cause of action, dispute or controversy arising out of or
relating to the Plan, any Award Agreement, any Award, the parties’ performance
with respect to any thereof, or any alleged breach of any thereof (each a “Dispute”),
shall be settled by binding arbitration in accordance with the then current
rules of the American Arbitration Association by a single arbitrator agreed
upon by the parties, or, if the parties cannot agree upon a single arbitrator,
by three (3) independent and impartial arbitrators of whom each party shall
appoint one, and those appointed arbitrators shall select a third arbitrator,
who shall be the presiding arbitrator. Judgment upon any award rendered by the
arbitrator(s) may be entered by any court having jurisdiction thereof. 

                    (b)
Either party may commence arbitration proceedings by giving notice (the “Arbitration
Notice”) to the other party demanding that the Dispute be arbitrated,
specifying in reasonable detail the nature of the Dispute and the amount, if
any, to be submitted to arbitration. The arbitration hearing shall take place
in any city on which the parties agree, or failing such agreement within ten
(10) days after the date the Arbitration Notice is given, 

25

in New York,
New York. The arbitration hearing shall be continuous subject to weekends,
holidays or other days to be mutually agreed. 

                    (c)
The arbitrator(s) shall render their award no later than thirty (30) days after
the conclusion of the hearing. The arbitrator(s) shall base their awards on the
terms of the Plan and the relevant Award Agreements and shall follow the law
and judicial precedents which a United States Judicial District Judge sitting
in New York, New York would apply in the event the Dispute was litigated in
such court. The parties expressly agree that this Section shall confer no power
or authority upon the arbitrator(s) to render any judgment or award that is
erroneous in its application of substantive law and expressly agree that no such
erroneous judgment or award shall be eligible for confirmation. The
arbitrator(s) shall render their award in writing and, unless both parties
agree otherwise, shall include the findings of fact and conclusions of law upon
which their award is based. Nothing in this Section shall preclude the parties
from contractually agreeing to maximum and/or minimum levels of damages
applicable to any such award, whether or not such agreement is disclosed to the
arbitrator(s) and any award shall be subject to such agreement. The
arbitrator(s) shall apply the substantive laws of the State of New York,
without regard to principles of conflicts of laws. 

                    (d)
Unless otherwise agreed, and unless otherwise determined by the arbitrators,
each party shall bear its own costs and expenses, including attorneys’ fees, in
connection with the arbitration, including the fees and expenses of the
arbitrator appointed by them, except that the expenses and fees of the third
arbitrator (or of the single arbitrator if only one arbitrator is used),
expenses for hearing facilities, and other expenses of the arbitration itself
shall be shared equally between the parties. 

                    (e)
The existence and results of any arbitration under this Section shall be
treated as confidential under Section 11.18 of the Plan. 

                    (f)
Notwithstanding the foregoing provisions of this Section, and whether or not an
arbitration proceeding has been initiated, any party shall be entitled to seek,
and all courts having jurisdiction are authorized to issue and enforce in any
lawful manner, (i) such temporary restraining orders, preliminary injunctions
and other interim measures of relief as may be necessary to prevent harm to the
Company’s, any of its Subsidiaries’ or such party’s interest or as otherwise
may be appropriate pending the conclusion of the arbitration proceedings
pursuant to this Section, and (ii) such judgments for permanent and equitable
relief as may be necessary to prevent harm to the Company’s, any Subsidiaries’
or such party’s interest or as otherwise may be appropriate following the
issuance of arbitration awards pursuant to this Section. 

          11.20
Compliance with Section 409A. No provision of this Article XI shall be
interpreted to require a payment or other transfer with respect to an Award at
a time or in a manner that would violate any requirement of subsection (a) of
Section 409A; and the Committee may defer or otherwise change the terms of payment
with respect to any Award, as otherwise set forth in this Article X or any
related Award Agreement, if and to the extent necessary to comply with the
requirements of Section 409A (if applicable). With respect to any Award
constituting a deferral of compensation to which Section 409A applies and that
is made to a “specified employee” of the Company or its Subsidiaries as defined
in Section 409A(a)(2)(B)(i) of the Code, no payment resulting from a separation
from service of such employee shall be made with respect to the Award before
the date which is 6 months after the date of separation from service (or, if
earlier, the date of death of the employee). 

XII.

DURATION AND AMENDMENT OF PLAN AND AWARD
AGREEMENTS

          12.1
Duration. No Awards may be granted hereunder after the date that is ten
(10) years after the Effective Date; provided, however, that Awards granted
prior to the expiration of such period may extend beyond the expiration of such
period, in accordance with the terms of the Plan (including all rights of the
Company and the Committee hereunder) and the relevant Award. 

26

          12.2
Amendment, etc. 

                    (a)
The Board of Directors may, at any time and from time to time, insofar as is
permitted by law, suspend or terminate the Plan, in whole or in part, but
without the consent of such Holder no such action shall adversely affect in any
significant respect the rights, or increase any obligations, of any Holder with
respect to any Award previously granted to such Holder hereunder. The Board of
Directors may also, at any time and from time to time, insofar as is permitted
by law, amend or modify the Plan in any respect whatsoever including (i) for
purposes of making the Plan comply with Section 16(b) of the Exchange Act and
the exemptions from that Section, the Code (including Section 409A and Section
422 of the Code), or the Employee Retirement Income Security Act of 1974, as
amended, (ii) for purposes of meeting or addressing any changes in any legal
requirements applicable to the Company or the Plan or (iii) for any other
purpose permitted by law. Notwithstanding the foregoing, (i) any amendment or
modification of the Plan is subject to any other applicable restrictions on
such amendment or modification set forth in the Plan, (ii) without the consent
of such Holder no such amendment or modification shall adversely affect any
rights, or increase any obligations, of any Holder under any Award previously
granted to such Holder hereunder and (iii) without the consent of the holders
of a majority of the shares of Stock represented and voting on such amendment
or modification at a shareholders’ meeting duly called and held, no amendment
or modification to the Plan may be made that would (a) increase the aggregate
number of shares of Stock that may be issued or transferred under the Plan or
increase the aggregate number of shares of Stock subject to Awards that may be
granted to any Eligible Individual in one calendar year pursuant to Section 5.7
(except for acceleration of vesting or other adjustments pursuant to Sections
10.1 or 11.1 of the Plan, to the extent each is applicable), or (b) modify the
requirements regarding eligibility for participation in the Plan; provided,
however, that such amendments or modifications may be made without the consent
of stockholders of the Company if (x) necessary to permit Incentive Options
granted under the Plan to qualify as incentive stock options within the meaning
of Section 422 of the Code, or (y) necessary to comply with changes that occur
in law or in other legal requirements (including Rule 16b-3, Section 162(m),
Section 409A, and the Employee Retirement Income Security Act of 1974, as
amended). 

                    (b)
Subject to the terms, conditions and limitations of the Plan, Rule 16b-3, to
the extent it is applicable, and any consent required by the last three
sentences of this Paragraph 11.2(b),the
Committee may (a) modify, amend, extend or renew outstanding Awards granted
under the Plan, and (b) accept the surrender of Awards requiring exercise that
may be outstanding under the Plan (to the extent not previously exercised) and
authorize the granting of new Awards in substitution for such outstanding
Awards (or portion thereof) so surrendered. Without the consent of the Holder,
the Committee may not modify or amend the terms of an Incentive Option at any
time to include provisions that have the effect of changing the Incentive
Option to a Nonstatutory Option; provided, however, that the consent of the
Holder is not required to the extent that the acceleration of the vesting of an
Incentive Option (whether under Section 9.1 or otherwise) causes the Incentive
Option to be treated as a Nonstatutory Option, for federal tax purposes, to the
extent that it exceeds the $100,000 limitation described in Section 6.10. Without
the consent of the Holder and of the holders of a majority of the shares of
Stock represented and voting on such modification or amendment at a
shareholders’ meeting duly called and held, the Committee may not modify or
amend any outstanding Option so as to specify a higher or lower exercise price
or accept the surrender of outstanding Incentive Options and authorize the
granting of new Options in substitution therefor specifying a higher or lower
exercise price, or take any other action to “reprice” any option if the effect of
such repricing would be to increase or decrease the exercise price applicable
to such Option. In addition, no modification or amendment of an Award shall,
without the consent of the Holder, adversely affect any rights of the Holder or
increase the obligations of the Holder under such Award except, with respect to
Incentive Options, as may be necessary to satisfy the requirements of Section
422 of the Code. 

27

XIII.

GENERAL

          13.1
Application of Funds. The proceeds received by the Company from the sale
of shares of Stock pursuant to Awards shall be used for general corporate
purposes or any other purpose permitted by law. 

          13.2
Right of the Company and Subsidiaries to Terminate Employment. Nothing
contained in the Plan, or in any Award Agreement, shall confer upon any Holder
any right to continue in the employ of the Company or any Subsidiary, or
interfere in any way with the rights of the Company or any Subsidiary to
terminate any such employment relationship at any time. 

          13.3
No Liability for Good Faith Determinations. Neither the Board of
Directors nor the Committee nor any member of either shall be liable for any
act, omission, or determination taken or made in good faith with respect to the
Plan or any Award granted under the Plan, and members of the Board of Directors
and the Committee shall be entitled to indemnification and reimbursement by the
Company in respect of any claim, loss, damage, or expense (including attorneys’
fees, the costs of settling any suit, provided such settlement is approved by
independent legal counsel selected by the Company, and amounts paid in
satisfaction of a judgment, except a judgment based on a finding of bad faith)
arising therefrom to the full extent permitted by law and under any directors
and officers liability or similar insurance coverage that may from time to time
be in effect. This right to indemnification shall be in addition to, and not a
limitation on, any other indemnification rights any member of the Board of
Directors or the Committee may have. 

          13.4
Other Benefits. Participation in the Plan shall not preclude any Holder
from eligibility in (or entitle any Holder to participate in) any other stock
or stock option plan of the Company or any Subsidiary or any old age benefit,
insurance, pension, profit sharing, retirement, bonus, or other extra
compensation plan that the Company or any Subsidiary has adopted or may, at any
time, adopt for the benefit of its employees or other Persons. Neither the
adoption of the Plan by the Board of Directors nor the submission of the Plan
to the stockholders of the Company for approval shall be construed as creating
any limitations on the power of the Board of Directors to adopt such other incentive
arrangements as it may deem desirable, including, without limitation, the
granting of stock options and the awarding of securities and cash otherwise
than under the Plan, and such arrangements may be either generally applicable
or applicable only in specific cases. 

          13.5
Exclusion From Pension and Profit-Sharing Compensation. By acceptance of
an Award (whether in Stock or cash), as applicable, each Holder shall be deemed
to have agreed that the Award is special incentive compensation that will not
be taken into account in any manner as salary, compensation or bonus in
determining the amount of any payment under any pension, retirement or other
employee benefit plan of the Company or any Subsidiary except as may otherwise
be specifically provided in such plan. In addition, each beneficiary of a
deceased Holder shall be deemed to have agreed that no Award to such Holder
shall affect the amount of any life insurance coverage, if any, provided by the
Company or a Subsidiary on the life of the Holder that is payable to the
beneficiary under any life insurance plan covering employees of the Company or
any Subsidiary. 

          13.6
Execution of Receipts and Releases. Any payment of cash or other
property or assets or any issuance or transfer of shares of Stock to the
Holder, or to the Holder’s Designated Beneficiary, guardian, legal
representatives, heirs, legatees, distributees or permitted assigns, in
accordance with the provisions hereof, shall, to the extent thereof, be in full
satisfaction of all claims of such Persons hereunder. The Committee may require
any Holder, Designated Beneficiary, guardian, legal representative, heir,
legatee, distributee or assignee, as a condition precedent to such payment, to
execute a release and receipt therefor in such form as the Committee shall
determine. 

          13.7
Unfunded Plan. Insofar as it provides for Awards of cash, Stock or other
property or assets, the Plan shall be unfunded. Although bookkeeping accounts
may be established with respect to Holders who are entitled to cash, Stock,
other property or assets or rights thereto under the Plan, any such accounts
shall be used merely as a bookkeeping convenience. The Company shall not be
required to segregate any assets that may at any time be represented by cash,
Stock, other property or assets or rights thereto, nor shall the Plan be
construed as providing for such segregation, nor shall the Company nor the
Board of Directors nor the Committee be deemed to be a trustee of any cash,
Stock, other property or assets or rights thereto to be granted under the Plan.
Any liability of the Company to any Holder with respect to a grant of cash,
Stock, other property or assets or rights thereto under 

28

the Plan shall
be based solely upon any contractual obligations that may be created by the
Plan and any Award Agreement; no such obligation of the Company shall be deemed
to be secured by any pledge or other encumbrance on any property or assets of
the Company. Neither the Company nor the Board of Directors nor the Committee
shall be required to give any security or bond for the performance of any
obligation that may be created by the Plan. 

          13.8
No Guarantee of Interests. Neither the Company, the Board of Directors
nor the Committee guarantees the Stock of the Company from loss or
depreciation. 

          13.9
Payment of Expenses. Subject to Section 11.17, all expenses incident to
the administration, termination or protection of the Plan, including legal and
accounting fees and any issue taxes with respect to the issuance of shares of
Stock pursuant to the Plan, shall be paid by the Company or its Subsidiaries. 

          13.10
Company Records. The records of the Company or its Subsidiaries
regarding any Holder’s period of employment, termination of employment and the
reason therefor, leaves of absence, re-employment, and other matters shall be
conclusive for all purposes hereunder, unless determined by the Committee to be
incorrect. 

          13.11
No Liability of Company. The Company assumes no obligation or
responsibility to the Holder or the Holder’s Designated Beneficiary, guardian,
legal representatives, heirs, legatees, distributees or assignees for any act
of, or failure to act on the part of, the Committee. 

          13.12
Company Action. Any action required of the Company shall be by resolution of
its Board of Directors or by a duly authorized officer of the Company or by
another Person authorized to act by resolution of the Board of Directors. 

          13.13
Severability. Whenever possible, each provision of the Plan and each
Award Agreement shall be interpreted in such a manner as to be effective and
valid under applicable law, but if any provision of the Plan or any Award
Agreement, or the application thereof to any Person or under any circumstances,
is invalid or unenforceable to any extent under applicable law, then such
provision shall be deemed severed from the Plan or such Award Agreement with
respect to such Person or circumstance, without invalidating the remainder of
the Plan or such Award Agreement or the application of such provision to other
Persons or circumstances, and a new provision shall be deemed substituted in
lieu of the provision so severed which new provision shall, to the extent
possible, accomplish the intent of the parties as evidenced by the provision so
severed. 

          13.14
Notices. Except as may be expressly provided in the Plan or the relevant
Award Agreement, whenever any notice is required or permitted to be given under
the Plan or such Award Agreement, such notice must be in writing and delivered
(including delivery by private courier or facsimile transmittal) or sent by
mail (which if to the Company must be certified or registered, return receipt
requested) postage and other charges prepaid, addressed to the Person for whom
the communication is intended (which for the Company shall be the address of
the Company’s chief executive office from
time to time, or such other address as may be established from time to time by
the Committee, and which for any Holder shall be the address for such Holder
set forth in the relevant Award Agreement or such other address as shall have
been furnished by notice by such Holder to the Company). Any such notice shall
be deemed to be given on the date received or (if mailed in the manner set
forth herein) three (3) Business Days after the date of mailing. Any person
entitled to notice hereunder may waive such notice. 

          13.15
No Waiver. No waiver of any provision of the Plan or any Award Agreement
shall be effective unless made in writing and signed by the party to be charged
with the waiver. Failure of any party at any time to require any other party’s
performance of any obligation under the Plan or Award Agreement shall not
affect the right to require performance of that obligation. Any waiver by any
party of any breach of any provision of the Plan or any Award Agreement shall
not be construed as a waiver of any continuing or succeeding breach of such
provision, or as a waiver or modification of the provision itself. 

29

          13.16
Successors. Subject to the restrictions contained herein, the Plan shall
be binding upon the Holder, the Holder’s Designated Beneficiaries, guardian, legal
representatives, heirs, legatees, distributees and permitted assigns, and upon
the Company, its successors and assigns. 

          13.17
Further Assurances. Each Holder shall execute and deliver such
documents, and take or cause to be taken such other actions, as may be
reasonably requested by the Committee in order to implement the terms of the
Plan and any Award Agreement with respect to that Holder. 

          13.18
Governing Law. EXCEPT AS MAY BE OTHERWISE PROVIDED IN A PARTICULAR AWARD
AGREEMENT, TO THE EXTENT NOT GOVERNED BY FEDERAL LAW, THIS PLAN AND EACH AWARD
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW OF SUCH
STATE; PROVIDED, HOWEVER, THAT ISSUES REGARDING THE INTERNAL AFFAIRS OF THE
COMPANY SHALL BE GOVERNED BY THE LAW OF THE COMPANY’S JURISDICTION OF
ORGANIZATION. 

          13.19
Jurisdiction and Venue. EXCEPT AS MAY BE OTHERWISE PROVIDED IN A
PARTICULAR AWARD AGREEMENT AND SUBJECT TO SECTION 10.19, EACH HOLDER HEREBY
SUBMITS TO THE JURISDICTION OF ALL FEDERAL AND STATE COURTS OF NEW YORK AND
HEREBY AGREES THAT ANY SUCH COURT SHALL BE A PROPER FORUM FOR THE DETERMINATION
OF ANY DISPUTE ARISING UNDER THE PLAN OR ANY AWARD AGREEMENT WITH RESPECT TO
SUCH HOLDER. 

          13.20
Interpretation. When a reference is made in the Plan or any Award
Agreement to Schedules, Exhibits or Addenda, such reference shall be to a
schedule, exhibit or addendum to this Plan or the relevant Award Agreement
unless otherwise indicated. Each instance in the Plan or any Award Agreement of
the words “include,” “includes,” and “including” shall be deemed to be followed
by the words “without limitation.” As used in the Plan or any Award Agreement,
the term “days” means calendar days, not business days, unless otherwise
specified. Unless otherwise specified, the words “herein,” “hereof,” and “hereunder”
and other words of similar import refer to the Plan or relevant Award Agreement
as a whole and not to any particular article, section, paragraph, subparagraph,
schedule, exhibit, addendum or other subdivision. Similarly, unless otherwise
specified, the words “therein,” “thereof” and “thereunder” and other words of
similar import refer to a particular agreement or other instrument as a whole
and not to any particular article, section, paragraph, subparagraph, schedule,
exhibit, addendum or other subdivision. Unless otherwise specified, any
reference to a statute includes and refers to the statute itself, as well as to
any rules and regulations made and duly promulgated pursuant thereto, and all
amendments made thereto and in force currently from time to time and any
statutes, rules or regulations thereafter duly made, enacted and/or
promulgated, as may be appropriate, and/or any other governmental actions
thereafter duly taken from time to time having the effect of supplementing or
superseding such statute, rules, and/or regulations. The language in all parts
of the Plan and each Award Agreement shall be in all cases construed simply,
fairly, equitably, and reasonably, according to its plain meaning and not
strictly for or against one or more of the parties. Any table of contents or
headings contained in the Plan or any Award Agreement are for reference
purposes only and shall not be construed to affect the meaning or
interpretation of the Plan or any Award Agreement. When required by the
context, (i) whenever the singular number is used in the Plan or any Award
Agreement, the same shall include the plural, and the plural shall include the
singular; and (ii) the masculine gender shall include the feminine and neuter
genders and vice versa. 

          13.21
No Representations. NEITHER THE COMPANY, ANY OF ITS SUBSIDIARIES OR
OTHER AFFILIATES, THE BOARD OF DIRECTORS OR THE COMMITTEE, OR ANY MEMBER OF
EITHER THEREOF MAKES ANY REPRESENTATIONS OR WARRANTIES WHATSOEVER REGARDING THE
LEGAL, TAX OR ACCOUNTING CONSEQUENCES OF ANY ASPECT OF THE PLAN OR ANY AWARDS,
INCLUDING ANY REPRESENTATION OR WARRANTY THAT ANY OPTION SHALL BE TREATED AS AN
INCENTIVE STOCK OPTION UNDER THE CODE. BY ACCEPTING ANY AWARD, EACH HOLDER
ACKNOWLEDGES THAT SUCH HOLDER HAS CONSULTED WITH SUCH ADVISORS AS THE HOLDER
HAS DEEMED APPROPRIATE WITH RESPECT TO ANY OF SUCH MATTERS. 

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  Adopted as
  of the Effective Date.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RODMAN &
  RENSHAW CAPITAL GROUP, INC.,

  	
   

  
	
   

  	
  a Delaware
  corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  

  	
   

  
	
   

  	
   

  	
  (Print Name)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  

  	
   

  
	
   

  	
   

  	
  (Print Title)

  	
   

  

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