Document:

Exhibit 10.28

 

FOURTH AMENDMENT TO MANAGEMENT SERVICES AGREEMENT

 

THIS
FOURTH AMENDMENT TO MANAGEMENT SERVICES AGREEMENT, hereinafter called “Fourth
Amendment”, is made and entered into this 12th of February, 2007 by and between
Rite Aid Corporation, a Delaware corporation, hereinafter called “Company” and
Leonard Green & Partners, L.P. , hereinafter called “LGP”.

 

RECITALS:

 

WHEREAS,
the Company and LGP entered into a Management Services Agreement on January 1,
2003 as amended on January 13, 2004, January 31, 2005 and January 13,
2006 to provide Services to the Company (as amended, the “Management Agreement”);
and

 

WHEREAS,
Capitalized terms used herein and not defined herein are defined in the
Management Agreement; and

 

WHEREAS,
the Company and LGP desire to amend the terms of the Management Agreement as  set
forth herein.

 

NOW,
THEREFORE, in consideration of the mutual promises set forth herein, and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

 

1.       Recitals. The recitals
set forth above are incorporated herein. All defined terms used in the
Management Agreement shall have the same meaning when used in this Fourth
Amendment, except as expressly set forth herein to the contrary.

 

2.       Term. The term of
the Management Agreement shall be  extended on a
month-to-month basis commencing January 1, 2007, terminable by either
party at any time on written notice to the other party.

 

3.       Compensation. The General
Services Fee shall remain at Twenty-Five Thousand Dollars ($25,000.00) per
month, which shall be payable monthly in arrears and pro-rated for partial or
fractional periods; provided, however, in the event that either Messrs. Sokoloff
or Danhakl cease to serve as a director on the Company’s Board of Directors,
then the monthly fee shall be reduced to Twelve Thousand Five Hundred Dollars
($12,500.00); provided further, however, in the event that both Messrs. Sokoloff
and Danhakl cease to serve as directors on the Company’s Board of Directors,
then the monthly fee shall be reduced to zero ($00.00).

 

FOURTH AMENDMENT TO
AGREEMENT

 

1

 

4.       Effect of Amendment.
Except as expressly modified in this Fourth Amendment, the Management Agreement
shall remain unmodified and in full force and effect.

 

IN WITNESS WHEREOF, the parties have executed
this Fourth Amendment as of the date first set forth above.

 

	
  COMPANY:

  	
  LGP:

  
	
   

  	
   

  
	
  Rite Aid Corporation

  	
  Leonard Green &
  Partners, L.P.

  
	
   

  	
   

  
	
   

  	
  By: LGP Management, Inc.

  
	
  By:

  	
  /s/ Robert B. Sari

  	
   

  	
   

  
	
   

  	
  Robert B. Sari

  	
   

  
	
   

  	
  EVP & General
  Counsel

  	
  By:

  	
  /s/ Jonathan Sokoloff

  	
   

  
	
   

  	
   

  	
  Jonathan Sokoloff

  
	
   

  	
   

  
						

 

FOURTH
AMENDMENT TO AGREEMENT

 

2ex4p1.htm

    
      

    

    Exhibit
4.1

     

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    FUTUREFUEL
CORP.

    2007
OMNIBUS INCENTIVE PLAN

     

    The following is the 2007 Omnibus
Incentive Plan (“Plan”) of
FutureFuel Corp., a Delaware corporation (the “Company”),
as adopted by the Company’s Board of Directors on May 29, 2007 and approved
by the Company’s shareholder on June 26, 2007 (the “Effective
Date”).

     

    1. Purposes of this Plan.
The
purpose of this Plan is to:

     

    
      	 	(i)	
              encourage ownership
      in the Company by key personnel whose long-term employment with or
      engagement by the Company or its Subsidiaries is considered essential to
      the Company’s continued progress and, thereby, encourage recipients to act
      in the shareholders’ interests and share in the Company’s
      success;

            
	 	 	 
	 	(ii)	to encourage such
      Persons to remain in the employ of the Company or its Subsidiaries;
      and
	 	 	 
	 	(iii)	to provide
      incentives to Persons who are not employees of the Company to promote the
      success of the Company.

    

     

    2. Definitions. For
purposes of this Plan, in addition to terms defined elsewhere herein, the
following capitalized terms have the following meanings.

     

    “Administrator”
means the Board, the Committee or such delegates as are administering this Plan
in accordance with Section 6.1.

     

    “Administrator
Verification Date” means the date that the Administrator verifies
achievement of the Annual Cash Flow Target and Cumulative Cash Flow Target, as
applicable.  The Administrator Verification Date must occur within ten
business days after the Administrator receives the Company’s audited financial
statements for the applicable calendar year.

     

    “Affiliate”
means: (i) any Person which, directly or indirectly, is in control of, is
controlled by or is under common control with the party for whom an affiliate is
being determined; or (ii) any Person who is a director or officer (or
comparable position) of any Person described in clause (i) above or of the
party for whom an affiliate is being determined.  For purposes hereof,
control of a Person means the power, direct or indirect, to: (a) vote 10%
or more of the securities having ordinary voting power for the election of
directors (or comparable positions) of such Person; or (b) direct or cause
the direction of the management and policies of such Person, whether by contract
or otherwise and either alone or in conjunction with others.

     

    “Annual Cash
Flow” means, for any calendar year, an amount equal to the Consolidated
Cash Flow for such calendar year and as appropriately adjusted by the
Administrator in its reasonable discretion for any acquisitions and divestitures
occurring after the Effective Date.

     

    “Annual Cash Flow
Target” means numbers to be approved by the Board for calendar years
2007, 2008, 2009 and 2010; provided, however, that the Annual Cash Flow Target
may be appropriately adjusted by the Administrator in its reasonable discretion
for any acquisitions and divestitures included in the calculation of Annual Cash
Flow.

     

    “Annual
Performance Vested Option” means an Option subject to the vesting
schedule provided in Section 11.1.

     

    “Applicable
Laws” means the requirements relating to the administration of stock
option plans under U.S. federal and state laws, any stock exchange or quotation
system on which the Company has listed or submitted for quotation the Common
Stock to the extent provided under the terms of the Company’s agreement with
such exchange or quotation system and, with respect to Awards subject to the
laws of any foreign jurisdiction where Awards are, or will be, granted under
this Plan, the laws of such foreign jurisdiction.

     

    “Award”
means a Stock Award, Option or Stock Appreciation Right granted in accordance
with the terms of this Plan.

     

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    “Award
Agreement” means a Stock Award Agreement, Option Agreement or Stock
Appreciation Right Agreement which may be in written or electronic format, in
such form and with such terms as may be specified by the Administrator,
evidencing the terms and conditions of an individual Award.  Each
Award Agreement is subject to, and must be consistent with, the terms and
conditions of this Plan.

     

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

     

    “Cause”
means, in the absence of any employment agreement between a Participant and the
Employer otherwise defining “cause”: (i) fraud or embezzlement on the part
of the Participant in the course of his employment or service;
(ii) personal dishonesty or acts of gross negligence or gross misconduct
which, in each case, is demonstrably and materially injurious to the Company or
to any of its Affiliates; (iii) a Participant’s intentional engagement in
conduct that is materially injurious to the Company or to any of its Affiliates;
(iv) a Participant’s conviction by a court of competent jurisdiction of, or
pleading guilty or no contest to a felony or any other criminal charge (other
than minor traffic violations) which could reasonably be expected to have a
material adverse impact on the reputation or business of the Company or any of
its Affiliates; (v) public or consistent drunkenness by a Participant or
his illegal use of narcotics which is, or could reasonably be expected to
become, materially injurious to the reputation or business of the Company or any
of its Affiliates or which impairs, or could reasonably be expected to impair,
the performance of the Participant’s duties to the Company or to any of its
Affiliates; or (vi) willful failure by a Participant to follow the lawful
directions of a superior officer or the Board, unless such failure did not occur
in bad faith and is cured promptly after written notice of such failure is given
to the Participant by such superior officer or the Board.  In the
event there is an employment agreement between a Participant and the Employer
defining “cause”, “Cause” has
the meaning provided in such employment agreement as to such
Participant.

     

    “Change in
Control” means any of the following, unless the Board provides
otherwise:

     

    (i) a
transaction (or series of transactions occurring within a 60-day period or
pursuant to a plan approved by the Board or by shareholders of the Company)
occurs that has the result that shareholders of the Company immediately before
such transaction cease to own directly or indirectly at least 51% of the voting
stock of the Company or of any entity that results from the participation of the
Company in a reorganization, consolidation, merger, liquidation or any other
form of corporate transaction;

     

    
      (ii) the sale or other
disposition of all or substantially all of the assets of the Company (determined
on a consolidated basis), but excluding any such sale or disposition after
which: (a) the shareholders of the Company immediately prior to such
transaction continue to own at least 51% of the voting stock of the entities
that acquired 50% or more in value of the assets of the Company so sold or
conveyed; and (b) the acquiring entity agrees to assume the obligations of
the Company under this Plan;

       

      
        (iii) the acquisition of
beneficial ownership of a controlling interest in (including power to vote) the
outstanding shares of Common Stock by any Person (including a “group” as defined
by or under Section 13(d)(3) of the Exchange Act, but excluding any Person or
group which consists of or is controlled by Paul A. Novelly or his
Affiliates);

         

        (iv) the occurrence of a merger, consolidation
or other reorganization of the Company under the terms of which the surviving
entity does not assume the obligations of the Company under this Plan;

         

        (v) the dissolution or liquidation of the
Company;

         

        (vi) a contested election of Directors as a
result of which or in connection with which the Persons who were Directors
before such election or their nominees cease to constitute a majority of the
Board; or

         

        (vii) any other event specified by the Board,
regardless of whether at the time an Award is granted or thereafter.

         

      

    

    “Committee”
means: (i) a committee of Directors appointed by the Board to administer
this Plan; or (ii) if no such committee is appointed, the compensation
committee of the Board.  Notwithstanding the provisions included in
Section 6,
for periods during which Section 16 of the Exchange Act is applicable to
any Participant, each

     

    
      
         

      

      
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    member of
the Committee must be a Person who qualifies as a disinterested Person pursuant
to the provisions of Rule 16b-3(c)(2)(i) promulgated under the Exchange
Act.

     

    “Common
Stock” means the common stock of the Company.

     

    “Consolidated Cash
Flow” means, as to the applicable calendar, the Company’s consolidated
net income plus depreciation and plus amortization for such calendar year, as
determined by reference to the Company’s audited consolidated financial
statements prepared in accordance with United States generally accepted
accounting principles.

     

    “Consultant”
means any Person engaged by the Company or by any Subsidiary to render services
to such entity as an advisor or consultant.

     

    “Cumulative Cash
Flow” means, for any calendar year, the sum of the Annual Cash Flow for
each calendar year prior to and including such calendar year, commencing with
2007.

     

    “Cumulative Cash
Flow Target” means numbers to be approved by the Board for calendar years
2007, 2008, 2009 and 2010; provided, however, that the Cumulative Cash Flow
Target may be appropriately adjusted by the Administrator in its reasonable
discretion for any acquisitions and divestitures included in the calculation of
Annual Cash Flow.

     

    “Cumulative
Performance Vested Option” means an Option subject to the vesting
schedule provided in Section 11.2.

     

    “Director”
means a member of the Board.

     

    “Disability”
means, in the absence of any employment agreement between a Participant and the
Employer otherwise defining such term, the permanent and total disability of a
Person within the meaning of Code §22(e)(3).  In the event there is an
employment agreement between a Participant and the Employer defining such term,
“Disability”
has the meaning provided in such employment agreement as to such
Participant.

     

    “Employee”
means a regular, active employee of the Company or of any Subsidiary, including
an Officer or a Director.  The chairman of the Board also qualifies as
an “Employee.”  Within
the limitations of Applicable Law, the Administrator has the discretion to
determine the effect upon an Award and upon an individual’s status as an
Employee in the case of: (i) any individual who is classified by the
Company or its Subsidiary as leased from or otherwise employed by a third party
or as intermittent or temporary, even if any such classification is changed
retroactively as a result of an audit, litigation or otherwise; (ii) any
leave of absence approved by the Company or a Subsidiary; (iii) any
transfer between locations of employment with the Company or a Subsidiary or
between the Company and any Subsidiary or between any Subsidiaries;
(iv) any change in the Participant’s status from an employee to a
Consultant or Director; and (v) at the request of the Company or a
Subsidiary, an employee becomes employed by any partnership, joint venture or
corporation not meeting the requirements of a Subsidiary but in which the
Company or a Subsidiary is a partner, joint venturer or shareholder, as
applicable.

     

    “Employer”
means the Company and any Subsidiary which employs the Participant or for whom
the Participant performs services.  For purposes of this Plan, with
respect to any provision relating to a Participant’s Termination of Employment,
the transfer of such Participant’s employment or service, as applicable, from
one Employer to another Employer does not constitute a Termination of Employment
with the first Employer and following such transfer the subsequent Employer is
deemed the Employer for purposes of this Plan.

     

    “Exchange
Act” means the United States Securities Exchange Act of
1934.

     

    “Expiration
Date” means the date upon which the term of an Award expires hereunder;
provided however that, for all Annual Performance Vested Options and Cumulative
Performance Vested Options, the Expiration Date is subject to Section 11.

     

    “Fair Market
Value” as to a share of Common Stock means on any date: (i) if the
Common Stock is listed on a national securities exchange (including the
Alternative Investment Market of the London Stock Exchange plc), the mean
between the highest and lowest quoted sales prices for such Common Stock as of
such date (or if no sales

     

    
      
         

      

      
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    were
reported on such date, the average on the last preceding day on which a sale was
made); (ii) if the Common Stock is not listed on any national securities
exchange but is listed on the NASDAQ National Market System, the average between
the high bid price and low ask price reported on the date prior to such date or,
if there is no such sale on that date, then on the last preceding date on which
such a sale was reported; and (iii) if the Common Stock is not listed on
any national securities exchange or on the NASDAQ National Market System, the
amount determined by the Administrator in good faith to be the fair market value
per share of Common Stock on a fully diluted basis (with the aid of an
independent appraisal).

     

    “Good
Reason” means, in the absence of any employment agreement between a
Participant and the Employer otherwise defining such term: (i) the
reduction of a Participant’s base salary or bonus opportunity, other than an
across the board reduction in base salary or bonus opportunity applicable to all
middle and senior management of the Company; or (ii) the material breach by
the Company of the provisions of this Plan or of any employment or similar
agreement with the Participant.  In the event there is an employment
agreement between a Participant and the Employer defining good reason, “Good
Reason” has the meaning provided in such employment agreement as to such
Participant.  For purposes of this Plan, no Termination of Employment
by a Participant will be considered for Good Reason unless the Participant has
provided the Company 30 days’ written notice setting forth in reasonable
specificity the event that constitutes Good Reason, within 60 days of the
occurrence of such event, and during such 30-day notice period, the Company
failed to cure the event or events in question.

     

    “Grant
Date” means the date upon which an Award is granted to a Participant
pursuant to this Plan.

     

    “Incentive Stock
Option” means an Option intended to qualify as an incentive stock option
within the meaning of Code §422 and the Treasury Regulations promulgated
thereunder.

     

    “Nonqualified
Stock Option” means an Option not intended to qualify as an Incentive
Stock Option.

     

    “Officer”
means a Person who is an officer of the Company within the meaning of
Section 16 of the Exchange Act and the rules and regulations promulgated
thereunder.

     

    “Option”
means a right granted under Section 10
to purchase a number of shares of Common Stock or Stock Units at such exercise
price, at such times and on such other terms and conditions as are specified in
the agreement or other documents evidencing the Award (the “Option
Agreement”), and specifically includes Incentive Stock Options,
Nonqualified Stock Options, Annual Performance Vested Options and Cumulative
Performance Vested Options.

     

    “Participant”
means any Person to whom an Award has been granted under this Plan or to whom an
Award has been assigned or transferred as permitted hereunder.

     

    “Person”
means any natural person, corporation, limited partnership, general partnership,
joint venture, association, company, trust, joint stock company, bank, trust
company, land trust, vehicle trust, business trust, real estate investment
trust, estate, limited liability company, limited liability partnership, limited
liability limited partnership or other organization irrespective of whether it
is a legal entity, and any governmental authority.

     

    “Prime
Rate” means the highest rate published from time to time as the “Prime
Rate” in The Wall Street
Journal.

     

    “Pro Rata
Fraction” means, with respect to any Qualifying Terminated Participant, a
fraction the numerator of which equals the number of whole years elapsed from
the later to occur of the Effective Date or the date such Qualifying Terminated
Participant received a grant of Options hereunder through the date of such
Qualifying Terminated Participant’s Termination of Employment and the
denominator of which equals four.

     

    “Qualifying
Performance Criteria” means any one or more of the following performance
criteria, either individually, alternatively or in any combination, applied to
either the Company as a whole or to a business unit, Subsidiary or business
segment, either individually, alternatively or in any combination, and measured
either annually or cumulatively over a period of years, on an absolute basis or
relative to a pre-established target, to previous years’ results or to a
designated comparison group, in each case as specified by the Administrator in
the Award: (i) cash flow; (ii) earnings (including gross margin,
earnings before interest and taxes, earnings before taxes,

     

    
      
         

      

      
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    and net
earnings); (iii) earnings per share; (iv) growth in earnings or
earnings per share; (v) stock price; (vi) return on equity or average
shareholders’ equity; (vii) total shareholder return; (viii) return on
capital; (ix) return on assets or net assets; (x) return on
investment; (xi) revenue; (xii) income or net income;
(xiii) operating income or net operating income; (xiv) operating
profit or net operating profit; (xv) operating margin; (xvi) return on
operating revenue; (xvii) market share; (xviii) overhead or other
expense reduction; (xix) growth in shareholder value relative to the moving
average of the S&P 500 Index or a peer group index; (xx) strategic plan
development and implementation; and (xxi) any other similar
criteria.  The Administrator may appropriately adjust any evaluation
of performance under a Qualifying Performance Criteria to exclude any of the
following events that occurs during a performance period: (a) asset
write-downs; (b) litigation or claim judgments or settlements; (c) the
effect of changes in tax law, accounting principles or other such laws or
provisions affecting reported results; (d) accruals for reorganization and
restructuring programs; and (e) any extraordinary non-recurring items as
described in Accounting Principles Board Opinion No. 30 or in management’s
discussion and analysis of financial condition and results of operations
appearing in the Company’s annual report to shareholders for the applicable
year.

     

    “Qualifying
Terminated Participant” mean a Participant: (i) whose employment
with an Employer has been terminated by reason of such Participant’s death,
Disability, by the Employer without Cause or by the Participant with Good
Reason; and (ii) who has been employed with the Employer, the Company or
any other Affiliate of the Company for more than 24 months prior to the date of
such Termination of Employment; and (iii) who became a Participant more
than 12 months prior to the date of such Termination of Employment (it being
understood that no Participant will be deemed to have been a Participant prior
to the Effective Date).

     

    “Repurchase
Price” means: (i) on or following a Participant’s Termination of
Employment other than by the Employer for Cause, an amount equal to the Fair
Market Value of the shares of Common Stock on the date of repurchase; or
(ii) on or following a Participant’s Termination of Employment by the
Employer for Cause, the lesser of: (a) the original purchase price paid for
such shares of Common Stock; and (b) the Fair Market Value of the shares of
Common Stock on the date of repurchase.

     

    “Repurchase Right
Exercise Period” means, with respect to shares of Common Stock acquired
upon the exercise of any Option or pursuant to a Stock Award or Stock
Appreciation Right: (i) in the case of shares acquired prior to the date of
a Participant’s Termination of Employment, the period commencing on the date of
such termination and ending on the seven-month anniversary of such termination;
and (ii) in the case of shares acquired on or following the date of a
Participant’s Termination of Employment, the period commencing on the date of
such acquisition and ending on the seven-month anniversary of the date of such
acquisition; provided however that the Repurchase Price Exercise Period expires
on the Repurchase Right Lapse Date.

     

    “Repurchase Right
Lapse Date” means the ten year anniversary of the Effective
Date.

     

    “Securities
Act” means the Securities Act of 1933.

     

    “Stock”
means shares of capital stock (including common and preferred stock) or other
equity interests (regardless of how designated) of or in a corporation or
comparable entity (including a partnership, joint venture or limited liability
company), whether voting or nonvoting, or general or limited.

     

    “Stock
Appreciation Right” means a right to receive the appreciation in value of
shares of Common Stock over the price set in the Stock Appreciation Right
Agreement.

     

    “Stock
Award” means an Award of shares of Common Stock or Stock Units made under
Section 13,
the grant, issuance, retention, vesting or transferability of which is subject
during specified periods of time to such conditions (including continued
employment or performance conditions) and terms as are expressed in the
agreement or other documents evidencing the Award (the “Stock Award
Agreement”).

     

    “Stock
Unit” means a bookkeeping entry representing an amount equivalent to the
Fair Market Value of one share of Common Stock, payable in cash, property or
shares of Common Stock.  Stock Units represent an unfunded and
unsecured obligation of the Company, except as otherwise provided for by the
Administrator.

     

    
      
         

      

      
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    “Subsidiary”
means any Person in an unbroken chain of companies beginning with the Company,
provided each Person in the unbroken chain owns, at the time of determination,
stock possessing 50% or more of the total combined voting power of all classes
of Stock in one of the other Persons in such chain.

     

    “Termination of
Employment” means ceasing to be an Employee, Consultant or
Director.  However, for Incentive Stock Option purposes, Termination
of Employment will occur when the Participant ceases to be an employee (as
determined in accordance with Code §3401(c) and the Treasury Regulations
promulgated thereunder) of the Company or one of its
Subsidiaries.  The Administrator will determine whether any corporate
transaction, such as a sale or spin-off of a division or business unit, or a
joint venture, will result in a Termination of Employment.

     

    “Treasury
Regulation” means those regulations promulgated by the U.S. Department of
the Treasury pursuant to authority of the Code or any other revenue law of the
United States of America.

     

    3. Types of Awards. This Plan
is intended to permit the issuance of Options as well as Cash Awards, Stock
Awards and Stock Appreciation Rights.

     

    4. Intent as to Nonqualified
Stock Options. The
Nonqualified Stock Options issued under this Plan are not intended to be
considered “nonqualified deferred compensation” within the meaning of §409A of
the Internal Revenue Code of 1986 (the “Code”).  It
is also intended that: (i) the receipt, transfer or exercise of the
Nonqualified Stock Options will be subject to taxation pursuant to Code §83 and
Treasury Regulation §1.83-7; and (ii) no Nonqualified Stock Option will
include any feature for the deferral of compensation, other than the deferral of
recognition of income until the later of exercise or disposition of the
Nonqualified Stock Option under Treasury Regulation §1.83-7, or the time
the Common Stock acquired pursuant to the exercise of the Nonqualified Stock
Option first becomes substantially vested (within the meaning of Treasury
Regulation §1.83-3(b)).

     

    5. Stock Subject to this
Plan.

     

    5.1. Aggregate Limits. Subject
to the provisions of Section 17.1, the aggregate number of shares of Common
Stock subject to Awards granted under this Plan is 10% of the shares of Common
Stock issued and outstanding from time to time.  The shares of Common
Stock subject to this Plan may be either shares of Common Stock reacquired by
the Company, including shares of Common Stock purchased in the open market, or
authorized but unissued shares of Common Stock.

     

    5.2. Code §162(m) and Code §422 Limits. Subject
to the provisions of Section 17.1, the aggregate number of shares of Common
Stock that may be subject to all Incentive Stock Options granted under this Plan
is 10% of the shares of Common Stock issued and outstanding from time to
time.  Notwithstanding anything to the contrary in this Plan, the
limitations set forth in this Section 5.2 are subject to adjustment under
Section 17.1 only to the extent that such adjustment will not affect the
status of any Award intended to qualify as performance based compensation under
Code §162(m) or the ability to grant or the qualification of Incentive Stock
Options under this Plan.

     

    5.3. Stock Award Limitation. Subject
to the provisions of Section 17.1, the aggregate number of shares of Common
Stock that may be granted subject to Stock Awards made under this Plan is 10% of
the shares of Common Stock issued and outstanding from time to
time.

     

    5.4. No Discounted Options. No shares
of Common Stock underlying Nonqualified Stock Options may have an exercise price
of less than Fair Market Value on the Grant Date.

     

    5.5. Share Counting Rules. The
Administrator may adopt reasonable counting procedures to ensure appropriate
counting, avoid double counting (as for example in the case of tandem or
substitute Awards) and make adjustments if the number of shares of Common Stock
actually delivered differs from the number of shares of Common Stock previously
counted in connection with an Award.  To the extent that an Award
expires or is canceled, forfeited, settled in cash or otherwise terminated or
concluded without a delivery to the Participant of the full number of shares of
Common Stock to which the Award related, the undelivered shares of Common Stock
will again be available for Awards.  Shares of Common Stock issued in
accordance with Section 14.4 in settlement of a Stock Appreciation Right
count against authorized shares, but only to the extent of the shares of Common
Stock

     

    
      
         

      

      
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    issued,
not to the extent of the number of underlying Stock Appreciation
Rights.  Shares of Common Stock withheld in payment of the exercise
price or taxes relating to an Award and shares of Common Stock equal to the
number surrendered in payment of any exercise price or taxes relating to an
Award will be deemed to constitute shares of Common Stock not delivered to the
Participant and will again be available for Awards under this
Plan.  Where shares of Common Stock are withheld or surrendered more
than ten years after the date of the most recent shareholder approval of this
Plan or any other transaction occurs that would result in shares of Common Stock
becoming available under this Section 5.5, such shares will not become
available if and to the extent that it would constitute a material revision of
this Plan subject to shareholder approval under then applicable rules of the
national securities exchange on which the Common Stock is listed or under then
Applicable Law.

     

    6. Administration of this
Plan.

     

    6.1. Procedure.

     

    6.1.1                      Administration.
This Plan
is administered by the Administrator.

     

    6.1.2                      Code
Section 162. To the
extent that the Administrator determines it to be desirable to qualify Awards
granted hereunder as “performance-based compensation” within the meaning of Code
§162(m), Awards to “covered employees” within the meaning of Code §162(m) or
Employees that the Administrator determines may be “covered employees” in the
future must be made by an Administrator comprised of two or more “outside
directors” within the meaning of Code §162(m).

     

    6.1.3                      Rule
16b-3. To the
extent desirable to qualify transactions hereunder as exempt under Rule 16b-3
promulgated under the Exchange Act (“Rule
16b-3”), Awards to Officers and Directors must be made by the entire
Board or by two or more “non-employee directors” within the meaning of Rule
16b-3.

     

    6.1.4                      Other
Administration.  The
Administrator may appoint agents to assist it in administering this
Plan.  Except to the extent prohibited by Applicable Law, the
Administrator may delegate to one or more individuals the day-to-day
administration of this Plan and any of the functions assigned to it in this
Plan.  Such delegation may be revoked at any
time.  Notwithstanding the foregoing or any other provision of this
Plan to the contrary, any Award granted under this Plan to any Person who is not
an Employee must be expressly approved by the Committee or the
Board.

     

    6.1.5                      Code
§409A. The
Administrator must take into account compliance with, and use commercially
reasonable efforts to comply with, Code §409A in connection with any grant of an
Award under this Plan to the extent applicable, and all other acts or omissions
taken or not taken in connection with this Plan.  In the event that
the intent set forth above in Section 4
is frustrated for whatever reason, the Administrator will act in good faith to
achieve such intent to the extent reasonably practicable, and take reasonable
actions to alleviate the application, or any financial adverse effect on the
Participants, of Code §409A to the Awards granted under or subject to this Plan
and the exercise of those Awards.  Notwithstanding anything contained
herein to the contrary, if at the time of a Participant’s Termination of
Employment, the Participant is a “specified employee” as defined in Code §409A
and the Treasury Regulations and guidance thereunder in effect at the time of
such termination and any of the payments or benefits provided hereunder may
constitute “deferred compensation” under Code §409A, then, and only to the
extent required by such provisions, the date of such payments or benefits
otherwise provided will be delayed for a period of up to six months following
the date of Termination of Employment.  Notwithstanding anything to
the contrary in this Plan, any amendment to this Plan adopted for the purpose of
preventing the application of Code §409A or complying with Code §409A may be
retroactive to the extent permitted by §409A and may be made by the Company
without the consent of the Participants.

     

    6.2.
Powers of the Administrator. Subject
to the provisions of this Plan, the Administrator has the authority, in its
discretion:

     

    
      (i) to select the
Employees, Consultants or Directors to whom Awards are to be granted
hereunder;

       

      
        (ii) to determine the
number of shares of Common Stock to be covered by each Award granted
hereunder;

      

    

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      (iii) to determine the
type of Award to be granted to the selected Participants

       

      
        (iv) to approve forms of
Award Agreements for use under this Plan

         

        
          (v) to determine the terms
and conditions, not inconsistent with the terms of this Plan, of any Award
granted hereunder; such terms and conditions include the exercise or purchase
price, the time or times when an Award may be exercised (which may or may not be
based on Qualifying Performance Criteria), the vesting schedule, any vesting or
exercisability acceleration or waiver of forfeiture restrictions, acceptable
forms of consideration, term and any restriction or limitation regarding any
Award or the shares of Common Stock relating thereto, based in each case on such
factors as the Administrator, in its sole discretion, determines and may be
established at the time an Award is granted or thereafter;

           

          (vi) to correct administrative errors;

           

          (vii) to construe and interpret the terms of
this Plan and Awards granted pursuant to this Plan;

           

          
            (viii) to adopt rules and
procedures relating to the operation and administration of this Plan to
accommodate the specific requirements of local laws and procedures; without
limiting the generality of the foregoing, the Administrator is specifically
authorized to: (a) adopt the rules and procedures regarding the conversion
of local currency, withholding procedures and handling of stock certificates
which vary with local requirements; and (b) adopt sub-plans and Plan
addenda as the Administrator deems desirable to accommodate foreign laws,
regulations and practice;

             

            
              (ix) to prescribe, amend
and rescind rules and regulations relating to this Plan, including rules and
regulations relating to sub-plans and Plan addenda;

               

              
                (x) to modify or amend
each Award, including the acceleration of vesting or exercisability, provided,
however, that any such amendment is subject to Section 18
and may not impair any outstanding Award unless agreed to in writing by the
Participant;

                 

                (xi) to allow Participants to
satisfy withholding tax amounts by electing to have the Company withhold from
the shares of Common Stock to be issued upon exercise of a Nonqualified Stock
Option or vesting of a Stock Award that number of shares of Common Stock having
a Fair Market Value equal to the amount required to be withheld; the Fair Market
Value of the shares of Common Stock to be withheld is to be determined on such
date that the Administrator determines or, in the absence of provision
otherwise, on the date that the amount of tax to be withheld is to be
determined; all elections by a Participant to have shares of Common Stock
withheld for this purpose are to be made in such form and under such conditions
as the Administrator provides;

                 

                
                  (xii) to authorize
conversion or substitution under this Plan of any or all stock options, stock
appreciation rights or other stock awards held by employees or service providers
of an entity acquired by the Company (the “Conversion
Awards”); any conversion or substitution is effective as of the close of
the merger or acquisition; the Conversion Awards may be Nonqualified Stock
Options or Incentive Stock Options as determined by the Administrator with
respect to options granted by the acquired entity; provided, however, that with
respect to the conversion of stock appreciation rights in the acquired entity,
the Conversion Awards will be Nonqualified Stock Options; unless otherwise
determined by the Administrator at the time of conversion or substitution, all
Conversion Awards have the same terms and conditions as Awards generally granted
by the Company under this Plan;

                   

                  
                    (xiii) to authorize any
Person to execute on behalf of the Company any instrument required to effect the
grant of an Award previously granted by the Administrator;

                     

                    
                      (xiv) to impose such
restrictions, conditions or limitations as it determines appropriate as to the
timing and manner of any resales by a Participant or other subsequent transfers
by the Participant of any shares of Common Stock issued as a result of or under
an Award, including: (a) restrictions under an insider trading policy; and
(b) restrictions as to the use of a specified brokerage firm for such
resales or other transfers;

                       

                      
                        (xv) to provide, either at
the time an Award is granted or by subsequent action, that an Award contains as
a term thereof a right, either in tandem with the other rights under the Award
or as an alternative
thereto,

                      

                    

                  

                

              

            

          

        

      

    

     

     

    
    

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

    
       

      
        of the
Participant to receive, without payment to the Company, a number of shares of
Common Stock, cash or a combination thereof, the amount of which is determined
by reference to the value of the Award; and

      

    

     

    (xvi) to make all other
determinations deemed necessary or advisable for administering this Plan and any
Award granted hereunder.

    6.3.
Effect of the Administrator’s Decision. All
decisions, determinations and interpretations by the Administrator regarding
this Plan, any rules and regulations under this Plan and the terms and
conditions of any Award granted hereunder, are final and binding on all
Participants.  The Administrator may consider such factors as it deems
relevant, in its sole and absolute discretion, to making such decisions,
determinations and interpretations including the recommendations or advice of
any Officer or other employee of the Company and such attorneys, consultants and
accountants as it may select.

     

    7. Eligibility.  Awards
may be granted only to Employees, Consultants or Directors.

     

    8. Term of this
Plan.  This
Plan became effective upon the Effective Date and continues in effect for a term
of ten years thereafter unless amended and extended by the Company or unless
terminated earlier under Section 18.

     

    9. Term of an Award.  The
term of each Award will be determined by the Administrator and stated in the
Award Agreement.  In the case of an Option, the Expiration Date will
be ten years from the Grant Date or such shorter term as may be provided in the
Award Agreement; provided that the term may be ten and one-half years in the
case of Options granted to Employees in certain jurisdictions outside the United
States as determined by the Administrator.

     

    10. Options in
General.  The
Administrator may grant an Option or provide for the grant of an Option, either
from time to time in the discretion of the Administrator or automatically upon
the occurrence of specified events, including the achievement of performance
goals and the satisfaction of an event or condition within the control of the
Participant or within the control of others.

     

    10.1.
Option Agreement.  Each
Option Agreement must contain provisions regarding: (i) the number of
shares of Common Stock that may be issued upon exercise of the Option;
(ii) the type of Option; (iii) the exercise price of the shares and
the means of payment for the shares; (iv) the Expiration Date of the
Option; (v) such terms and conditions on the vesting or exercisability of
an Option as may be determined from time to time by the Administrator;
(vi) restrictions on the transfer of the Option and forfeiture provisions;
and (vii) such further terms and conditions as may be determined from time
to time by the Administrator; in each case not inconsistent with this
Plan.

     

    10.2.
Exercise Price.  The
per share exercise price for the shares of Common Stock to be issued pursuant to
the exercise of an Option is to be determined by the Administrator, subject to
the terms hereof.

     

    10.2.1
Incentive Stock Options.  In
the case of an Incentive Stock Option, the per share exercise price may not be
less than 100% of the Fair Market Value per share on the Grant
Date.

     

    10.2.2
Nonqualified Stock Options. In
the case of a Nonqualified Stock Option, the per share exercise price may not be
less than 100% of the Fair Market Value per share of Common Stock on the Grant
Date.

     

    10.2.3
Conversion Awards.  At
the Administrator’s discretion, Conversion Awards may be granted in substitution
or conversion of options of an acquired entity, with a per share exercise price
of less than 100% of the Fair Market Value per share of Common Stock on the date
of such substitution or conversion.

     

    10.3
No Option Repricings.  Other
than in connection with a change in the Company’s capitalization (as described
in Section 17.1), the exercise price of an Option may not be
reduced.

     

    10.4
Vesting Period and Exercise Dates.  Options
granted under this Plan vest or are exercisable at such time and in such
installments during the period prior to the Option’s Expiration Date as
determined by the Administrator consistent with the terms hereof; provided,
however, that Options designated as Annual Performance

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    Vested
Options or Cumulative Performance Vested Options in an Option Agreement vest as
set forth below.  Consistent with the terms hereof, the Administrator
has the right to make the timing of the ability to exercise any Option granted
under this Plan subject to continued employment, the passage of time or such
performance requirements as may deemed appropriate by the
Administrator.  At any time after the grant of an Option, consistent
with the terms hereof the Administrator may reduce or eliminate any restrictions
surrounding any Participant’s right to exercise all or part of the
Option.  Unless otherwise specifically determined by the Administrator
or otherwise set forth herein, the vesting of an Option occurs only while the
Participant is employed or rendering services to the Employer, and all vesting
ceases upon a Participant’s Termination of Employment for any
reason.

     

    10.5.
Exercise of Option.  Any
Option granted is exercisable according to the terms of this Plan and at such
times and under such conditions as determined by the Administrator and set forth
in the respective Award Agreement.  Unless the Administrator or this
Plan provides otherwise: (i) no Option may be exercised during any leave of
absence other than an approved personal or medical leave with an employment
guarantee upon return, and (ii) an Option continues to vest during any
authorized leave of absence and such Option may be exercised to the extent
vested and exercisable upon the Participant’s return to active employment
status.  An Option will be deemed exercised when the Company receives:
(a) written or electronic notice of exercise (in accordance with the Award
Agreement) from the Person entitled to exercise the Option; (b) full
payment for the shares of Common Stock with respect to which the related Option
is exercised; and (c) with respect to Nonqualified Stock Options, payment
of all applicable withholding taxes.  Shares of Common Stock issued
upon exercise of an Option will be issued in the name of the Participant or, if
requested by the Participant, in the name of the Participant and his
spouse.  Unless provided otherwise by the Administrator or pursuant to
this Plan, until the shares of Common Stock are issued (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company), no right to vote or receive dividends or any other rights
as a shareholder exist with respect to the shares of Common Stock subject to an
Option, notwithstanding the exercise of the Option.  The Company will
issue (or cause to be issued) such shares of Common Stock as administratively
practicable after the Option is exercised.  Except as otherwise set
forth herein, an Option may not be exercised for a fraction of a
share.  As a condition to the exercise of an Option, the Company may
require the Person exercising the Option to represent and warrant at the time of
exercise that the shares are being purchased only for investment and without any
present intention to sell or distribute the acquired shares if, in the opinion
of counsel to the Company, such a representation is required by the provisions
of the Securities Act or other Applicable Law.

     

    10.6.
Form of Consideration.  Consistent with the terms hereof,
the Administrator will determine the acceptable form of consideration for
exercising an Option, including the method of payment, either through the terms
of the Option Agreement or at the time of exercise of an
Option.  Acceptable forms of consideration include: (i) cash;
(ii) check or wire transfer (denominated in U.S. Dollars);
(iii) subject to any conditions or limitations established by the
Administrator, other shares of Common Stock which (a) in the case of shares
of Common Stock, have been owned by the Participant for more than six months on
the date of surrender and (b) have a Fair Market Value on the date of
surrender equal to or greater than the aggregate exercise price of the shares as
to which such Option has been exercised; (iv) such other consideration and
method of payment for the issuance of shares to the extent permitted by
Applicable Law; or (v) any combination of the foregoing methods of
payment.  Anything herein to the contrary notwithstanding, the Company
may not directly or indirectly extend or maintain credit, or arrange for the
extension of credit, in the form of a personal loan to or for any Director or
executive Officer through this Plan in violation of Section 402 of the
Sarbanes-Oxley Act of 2002 (“Section 402 of
SOX”) and to the extent that any form of payment would, in the opinion of
the Company’s counsel, result in a violation of Section 402 of SOX, such form of
payment is not available.

     

    10.7.
Transferability of Options.  An
Option is not transferable except by will or by the laws of descent and
distribution and is exercisable during the lifetime of the Participant only by
the Participant.  Notwithstanding the foregoing, Options are
transferable to the extent provided in the Option Agreement or otherwise
permitted hereunder.

     

    10.8.
Effect of Termination of Employment.

     

    10.8.1
Generally.  Unless
otherwise provided for by the Administrator, upon a Participant’s Termination of
Employment other than as a result of circumstances otherwise described in this
Section 10.8: (i) all vesting with respect to the Options ceases;
(ii) subject to Section 10.8.7 in the case of a Qualifying
Terminated

     

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    Participant,
any unvested Options expire as of the date of such termination; and
(iii) subject to Section 10.8.7 in the case of a Qualifying Terminated
Participant, any vested Options remain exercisable until the earlier of the
Expiration Date or the date that is 90 days after the date of such Termination
of Employment.

     

    10.8.2
For Cause.  If
prior to the Expiration Date, a Participant’s employment or service, as
applicable, with the Employer is terminated by the Employer for Cause, all
Options (whether or not vested) immediately expire as of the date of such
Termination of Employment.

     

    10.8.3
Disability or Retirement of Participant.  If
prior to the Expiration Date, a Participant’s employment or service, as
applicable, with the Employer terminates by reason of such Participant’s death
or Disability, unless otherwise provided for by the Administrator: (i) all
vesting with respect to the Options ceases; (ii) subject to
Section 10.8.7 in the case of a Qualifying Terminated Participant, any
unvested Options expire as of the date of such termination; and
(iii) subject to Section 10.8.7 in the case of a Qualifying Terminated
Participant, any vested Options expire on the earlier of the Expiration Date or
the date that is 12 months after the date of such termination due to death or
Disability of the Participant.

     

    10.8.4
Voluntary Severance Incentive Program.  Upon
a Participant’s Termination of Employment as a result of participation in a
voluntary severance incentive program specifically declared by the Company and
approved by the Board, unless provided otherwise pursuant to the terms of such
voluntary severance incentive program, all outstanding Options granted to such
Participant immediately become fully vested and exercisable and the Participant
may exercise such Option until the earlier of three months following the
Participant’s Termination of Employment (or such other period of time as
provided for by the Administrator), or the Expiration Date of such
Option.  If, after Participant’s Termination of Employment, the
Participant does not exercise his Option within the time specified, the Option
(to the extent not exercised) automatically terminates.

     

    10.8.5
Divestiture.  If
a Participant will cease to be an Employee, Consultant or Director because of a
divestiture by the Company, prior to such Termination of Employment, the
Administrator may, in its sole discretion, make some or all of the outstanding
Options granted to the Participant become fully vested and exercisable and
provide that such Options remain exercisable for a period of time to be
determined by the Administrator but not later than the 15th day of
the third month following the date at which the Option would have otherwise
expired.  The determination of whether a divestiture will occur will
be made by the Administrator in its sole discretion.  If, after the
close of the divestiture, the Participant does not exercise the Option within
the time specified therein, such Option (to the extent not exercised)
automatically terminates.

     

    10.8.6
Work Force Restructuring or Similar Program.  If
a Participant will cease to be an Employee or Consultant because of a work force
restructuring or similar program, prior to such Termination of Employment, the
Administrator may, in its sole discretion, make some or all of the outstanding
Options granted to the Participant become fully vested and exercisable and
provide that such Options remain exercisable for a period of time to be
determined by the Administrator but not later than the 15th day of
the third month following the date at which the Option would have otherwise
expired.  The determination of whether a work force restructuring will
occur will be made by the Administrator in its sole discretion.  If,
after Participant’s Termination of Employment, the Participant does not exercise
his Option within the time specified therein, such Option (to the extent not
exercised) automatically terminates.

     

    10.8.7
Qualifying Terminated Participant.  If
a Participant is a Qualifying Terminated Participant, such Participant’s
unvested Cumulative Performance Vested Options remain outstanding until the
earlier of the Expiration Date or the date that is 12 months after the date of
such Termination of Employment.  To the extent that the Cumulative
Performance Vested Options would have vested pursuant to Section 11.2
within such 12-month period (had no such Termination of Employment occurred),
such Qualifying Terminated Participant vests in a number of Cumulative
Performance Vested Options equal to the number of Cumulative Performance Options
that would have vested pursuant to Section 11.2 (had no such Termination of
Employment occurred) multiplied by the Pro Rata Fraction.  Cumulative
Performance Vested Options that vest in accordance with the prior sentence
remain exercisable until the earlier of the Expiration Date or the date that is
90 days after Administrator Verification Date for fiscal year 2010 in the case
of vesting as a result of Section 11.2.  All unvested Cumulative
Vested Performance Options that do not otherwise vest in accordance with this
Section 10.8.7 expire on the 12-month anniversary of such Qualifying
Terminated Participant’s Termination of Employment.

     

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    11.
Performance Vested Options.  The
following vesting provisions apply to all Options designated as Annual
Performance Vested Options or Cumulative Performance Vested Options in a
Participant’s Option Agreement.

     

    11.1.
Annual Performance Vested Options.  For
each calendar year of the Company beginning with calendar year 2007 and ending
with calendar year 2010, provided that the Company has achieved an Annual Cash
Flow equal to, or in excess of, the Annual Cash Flow Target for such calendar
year, 25% of the Annual Performance Vested Options granted to a Participant vest
and become exercisable as of the Administrator Verification Date for such
calendar year.  If Annual Cash Flow for a calendar year is less than
the Annual Cash Flow Target for such calendar year (a “Missed
Year”), but in any subsequent fiscal year, the Cumulative Cash Flow for
such subsequent calendar year is equal to, or in excess of, the Cumulative Cash
Flow Target for such subsequent calendar year, all Annual Performance Vested
Options in respect of each prior Missed Year vest and become exercisable as of
the Administrator Verification Date for such subsequent calendar
year.

     

    11.2.
Cumulative Performance Vested Options.  A
Participant’s Cumulative Performance Vested Options vest and become exercisable
on the Administrator Verification Date for calendar year 2010 based upon the
level of achievement of Cumulative Cash Flow Target such that for each whole
percentage that the Cumulative Cash Flow for calendar year 2010 is in excess of
90% of the Cumulative Cash Flow Target for calendar year 2010, 10% of such
Cumulative Performance Vested Options vests and becomes exercisable (e.g., at
95% target achievement, 50% of the Cumulative Performance Vested Options will
vest).

     

    11.3.
Expiration of Unvested Options.  Subject
to Section 10.8.7, Annual Performance Vested Options and Cumulative
Performance Vested Options which have not vested on or prior to the
Administrator Verification Date for calendar year 2010 expire as of such date
and are of no further force or effect.

     

    12. Incentive Stock Option
Limitations/Terms.

     

    12.1.
Eligibility.  Only
employees (as determined in accordance with Code §3401(c) and the Treasury
Regulations promulgated thereunder) of the Company or any of its Subsidiaries
may be granted Incentive Stock Options.

     

    12.2.
$100,000 Limitation.  Notwithstanding
the designation “Incentive Stock Option” in an Option Agreement, if and to the
extent that the aggregate Fair Market Value of the shares of Common Stock with
respect to which Incentive Stock Options are exercisable for the first time by
the Participant during any calendar year (under all plans of the Company and any
of its Subsidiaries) exceeds $100,000, such Options will be treated as
Nonqualified Stock Options.  For purposes of this Section 12.2,
Incentive Stock Options are to be taken into account in the order in which they
were granted.  The Fair Market Value of the shares of Common Stock is
determined as of the Grant Date.

     

    12.3.
Leave of Absence.  For
purposes of Incentive Stock Options, no leave of absence may exceed 90 days
unless reemployment upon expiration of such leave is guaranteed by statute or
contract.  If reemployment upon expiration of a leave of absence
approved by the Company or a Subsidiary is not so guaranteed, a Participant’s
employment with the Company will be deemed terminated on the 91st day of
such leave for Incentive Stock Option purposes and any Incentive Stock Option
granted to the Participant ceases to be treated as an Incentive Stock Option and
terminates upon the expiration of the three-month period following the date the
employment relationship is deemed terminated.

     

    12.4.
Transferability.  The
Option Agreement must provide that an Incentive Stock Option cannot be
transferable by the Participant otherwise than by will or the laws of descent
and distribution and, during the lifetime of such Participant, may not be
exercisable by any other Person.  If the terms of an Incentive Stock
Option are amended to permit transferability, the Option will be treated for tax
purposes as a Nonqualified Stock Option.

     

    12.5.
Exercise Price.  The
per share exercise price of an Incentive Stock Option will be determined by the
Administrator in accordance with Section 10.2.1.

     

     

    
      
         

      

      
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    12.6.
Other Terms.  Option
Agreements evidencing Incentive Stock Options will contain such other terms and
conditions as may be necessary to qualify, to the extent determined desirable by
the Administrator, with the applicable provisions of Code §422.

    13. Stock
Awards.

     

    13.1.
Stock Award Agreement.  Each
Stock Award Agreement will contain provisions regarding: (i) the number of
shares of Common Stock subject to such Stock Award or a formula for determining
such number of shares; (ii) the purchase price of the shares of Common
Stock, if any, and the means of payment for the shares; (iii) the
performance criteria, if any, and the level of achievement versus these criteria
that determines the number of shares of Common Stock granted, issued, retainable
or vested; (iv) such terms and conditions on the grant, issuance, vesting
or forfeiture of the shares of Common Stock as may be determined from time to
time by the Administrator; (v) restrictions on the transferability of the
Stock Award; and (vi) such further terms and conditions as may be
determined from time to time by the Administrator; in each case not inconsistent
with this Plan.

     

    13.2.
Restrictions and Performance Criteria.  The
grant, issuance, retention or vesting of each Stock Award may be subject to such
performance criteria and level of achievement versus these criteria as the
Administrator determines, which criteria may be based on Qualifying Performance
Criteria, personal performance evaluations or completion of service by the
Participant.  Notwithstanding anything to the contrary herein, the
performance criteria for any Stock Award that is intended to satisfy the
requirements for “performance-based compensation” under Code §162(m) will be
established by the Administrator based on one or more Qualifying Performance
Criteria selected by the Administrator and specified in writing not later than
90 days after the commencement of the period of service to which the performance
goals relate, provided that the outcome is substantially uncertain at that
time.

     

    13.3.
Forfeiture.  Unless
otherwise provided for by the Administrator, upon the Participant’s Termination
of Employment (other than as provided below in Sections 13.4, 13.5 and
13.6), the unvested portions of the Stock Award and the shares of Common Stock
subject thereto are forfeited.

     

    13.4.
Disability or Retirement of Participant.  Unless
otherwise provided for by the Administrator, if a Participant’s Termination of
Employment is due to the Participant’s Disability or retirement due to age in
accordance with the Company’s policies, all outstanding Stock Awards granted to
such Participant will continue to vest, provided the following conditions are
met.

     

    13.4.1
No Services. The
Participant may not render services for any Person or engage directly or
indirectly in any business which, in the opinion of the Administrator, competes
with, or is in conflict with the interest of, the Company.  The
Participant is free, however, to purchase as an investment or otherwise Stock or
other securities of such Persons as long as they are public reporting companies
listed upon a recognized securities exchange or traded over-the-counter, and as
long as such investment does not represent a greater than 2% interest in the
particular Person.  For the purposes of this Section, a Person which
is engaged in the business of producing, leasing or selling products or
providing services of the type now or at any time hereafter made or provided by
the Company or any of its Subsidiaries will be deemed to compete with the
Company.

     

    13.4.2
No Use of Confidential Information.  The
Participant may not, without prior written authorization from the Company, use
in other than the business of the Company or any of its Subsidiaries, any
confidential information or material relating to the business of the Company or
its Subsidiaries, either during or after employment with the Company or any of
its Subsidiaries.

     

    13.4.3
Inventions, Etc.  The
Participant must disclose promptly and assign to the Company or one of its
Subsidiaries, as appropriate, all right, title and interest in any invention or
idea, patentable or not, made or conceived by the Participant during employment
by the Employer relating in any manner to the actual or anticipated business,
research or development work of the Company or any of its Subsidiaries and must
do anything reasonably necessary to enable the Company or one of its
Subsidiaries, as appropriate, to secure a patent where appropriate in the United
States and in foreign countries.

     

    13.5.
Death of Participant.  Unless
otherwise provided for by the Administrator in the Stock Award Agreement, if a
Participant’s Termination of Employment is due to his death, a portion of each
outstanding Stock

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    Award
granted to such Participant immediately vests and all forfeiture provisions and
repurchase rights lapse as to a prorated number of shares of Common Stock
determined by dividing the number of whole months since the Grant Date by the
number of whole months between the Grant Date and the date that the Stock Award
would have fully vested (as provided for in the Stock Award
Agreement).  The vested portion of the Stock Award will be delivered
to the beneficiary designated by the Participant, the executor or administrator
of the Participant’s estate or, if none, by the Persons entitled to receive the
vested Stock Award under the Participant’s will or the laws of descent or
distribution.

     

    13.6.
Voluntary Severance Incentive Program.  Upon
a Participant’s Termination of Employment as a result of participation in a
voluntary severance incentive program specifically declared by the Company and
approved by the Board, then unless provided otherwise pursuant to the terms of
such voluntary severance incentive program, a portion of each outstanding Stock
Award granted to such Participant immediately vests and all forfeiture
provisions and repurchase rights lapse as to a prorated number of shares of
Common Stock determined by dividing the number of whole months since the Grant
Date by the number of whole months between the Grant Date and the date that the
Stock Award would have fully vested (as provided for in the Stock Award
Agreement).

     

    13.7.
Divestiture.  If
a Participant will cease to be an Employee, Consultant or Director because of a
divestiture by the Company, prior to such Termination of Employment, the
Administrator may, in its sole discretion, accelerate the vesting of a portion
of any outstanding Stock Award granted to such Participant and provide that all
forfeiture provisions and repurchase rights lapse as to a prorated number of
shares of Common Stock determined by dividing the number of whole months since
the Grant Date by the number of whole months between the Grant Date and the date
that the Stock Award would have fully vested (as provided for in the Stock Award
Agreement).  The determination of whether a divestiture will occur
will be made by the Administrator in its sole discretion.

     

    13.8.
Work Force Restructuring or Similar Program.  If
a Participant will cease to be an Employee or Consultant because of a work force
restructuring by the Company, prior to such Termination of Employment, the
Administrator may, in its sole discretion, accelerate the vesting of a portion
of any outstanding Stock Award granted to such Participant and provide that all
forfeiture provisions and repurchase rights lapse as to a prorated number of
shares of Common Stock determined by dividing the number of whole months since
the Grant Date by the number of whole months between the Grant Date and the date
that the Stock Award would have fully vested (as provided for in the Stock Award
Agreement).  The determination of whether a work force restructuring
will occur will be made by the Administrator in its sole
discretion.

     

    14. Stock Appreciation
Rights.  The
Administrator may grant Stock Appreciation Rights either alone or in conjunction
with other Awards as specified in the Stock Appreciation Right Agreement
evidencing the Award.  Each Award of Stock Appreciation Rights granted
under this Plan will be evidenced by an instrument in such form as the
Administrator prescribes from time to time in accordance with this Plan (the
“Stock
Appreciation Right Agreement”) and will comply with the following terms
and conditions and with such other terms and conditions, including restrictions
upon the Award of Stock Appreciation Rights or the shares of Common Stock
issuable upon exercise thereof, as the Administrator in its discretion
establishes.  All grants of Stock Appreciation Rights must be made at
the Fair Market Value per share on the Grant Date.

     

    14.1.
Number of Shares.  The
Administrator will determine the number of shares of Common Stock to be subject
to each Award of Stock Appreciation Rights.  The number of such shares
subject to an outstanding Award of Stock Appreciation Rights may be reduced on a
share-for-share or other appropriate basis as determined by the Administrator to
the extent that shares under such Award of Stock Appreciation Rights are used to
calculate the cash, shares of Common Stock, other securities or property or
other forms of payment, or any combination thereof, received pursuant to
exercise of an Option attached to such Award of Stock Appreciation Rights, or to
the extent that any other Award granted in conjunction with such Award of Stock
Appreciation Rights is paid.

     

    14.2.
Exercisability.  The
Award of Stock Appreciation Rights will not be exercisable for at least six
months after the date of grant except as may otherwise be provided in the Stock
Appreciation Right Agreement in the event of death, Disability, retirement or
voluntary Termination of Employment of the Participant.

     

    14.3.
Restrictions on Exercise.  The
Award of Stock Appreciation Rights will not be exercisable:

     

     

    
      
         

      

      
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    (i)  unless the Option or other
Award to which the Award of Stock Appreciation Rights is attached (if any) is at
the time exercisable; and

     

    
      (ii) unless the Person
exercising the Award of Stock Appreciation Rights has been at all times during
the period beginning with the date of the grant thereof and ending on the date
of such exercise, employed by or otherwise performing services for the Employer,
except that:

       

      
        (a) in the case of any
Award of Stock Appreciation Rights (other than those attached to an Incentive
Stock Option), if such Person ceases to be employed by or otherwise performing
services for the Employer solely by reason of a period of employment with
another firm or company at the Company’s request or with which the Company is
affiliated or related, the Participant may, during such period of related
employment, exercise the Award of Stock Appreciation Rights as if the
Participant continued direct employment with or performance of services for the
Employer; or

         

        
          (b) the Administrator will
establish, in its discretion, the extent to which a Person may continue to
exercise an Award of Stock Appreciation Rights which has not expired and has not
been fully exercised in the event the Participant terminates employment or the
performance of services by reason of death, Disability, retirement or voluntary
Termination of Employment of the Participant; provided that, in the event of
death, the Administrator may provide the Participant’s executors, heirs or
distributors a minimum period to exercise an Award of Stock Appreciation Rights
with respect to any shares of Common Stock as to which the decedent could have
exercised the Award of Stock Appreciation Rights, or such greater amount as the
Administrator may determine, which period may extend beyond the original
Expiration Date of the underlying Option to a date no later than the 15th day of
the 3rd month
following such date.

        

      

    

    
       

      
      

    

    14.4.
Settlement.  An
Award of Stock Appreciation Rights entitles the holder (or any Person entitled
to act under the provisions of this Plan) to exercise such Award or to surrender
unexercised the Option (or other Award) to which the Stock Appreciation Right is
attached (or any portion of such Option or other Award) to the Company and to
receive from the Company in exchange therefore, without payment to the Company,
that number of shares of Common Stock having an aggregate value equal to (or, in
the discretion of the Administrator, less than) the excess of the Fair Market
Value of one share at the time of such exercise, over the exercise price (or
Option issuance price, as the case may be) per share, times the number of shares
subject to the Award or portion thereof, which is so exercised or surrendered,
as the case may be.  The Administrator is entitled in its discretion
to elect to settle the obligation arising out of the exercise of a Stock
Appreciation Right by the payment of cash or other securities or property, or
other forms of payment, or any combination thereof, as determined by the
Administrator, equal to the aggregate value of the shares of Common Stock it
would otherwise be obligated to deliver.  Any such election by the
Administrator will be made as soon as practicable after the receipt by the
Administrator of written notice of the exercise of the Stock Appreciation
Right.  The value of a share of Common Stock, other securities or
property, or other forms of payment determined by the Administrator for this
purpose, is the fair market value thereof on the last business day next
preceding the date of the election to exercise the Stock Appreciation
Right.

     

    14.5.
Deemed Exercise.  A
Stock Appreciation Right may provide that it will be deemed to have been
exercised at the close of business on the business day preceding the expiration
date of the Stock Appreciation Right or, if applicable, of the related Option
(or other Award), or such other date as specified by the Administrator, if at
such time such Stock Appreciation Right has a positive value.  Such
deemed exercise will be settled or paid in the same manner as a regular exercise
thereof as provided in Section 14.4.

     

    14.6.
Fractional Shares.  No
fractional shares may be delivered under this Section 14 but, in lieu thereof, a cash or other
adjustment may be made as determined by the Administrator in its
discretion.

     

    15. Other Provisions Applicable
to Awards.

     

    15.1.
Non-Transferability of Awards.  Unless
determined otherwise by the Administrator or as otherwise provided herein, an
Award may not be sold, pledged, assigned, hypothecated, transferred or disposed
of in any manner other than by beneficiary designation, will or by the laws of
descent or distribution.  Except as otherwise set forth herein, the
Administrator may make an Award transferable to a Participant’s family member or
any other Person.  If the Administrator makes an Award transferable as
provided herein, either at the time of grant or

    
      
         

      

      
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    thereafter, such Award may contain such
additional terms and conditions as the Administrator deems appropriate, and any
transferee will be deemed to be bound by such terms upon acceptance of such
transfer.

     

    15.2.
Certification.  Prior
to the payment of any compensation under an Award intended to qualify as
“performance-based compensation” under Code §162(m), the Administrator will
certify the extent to which any Qualifying Performance Criteria and any other
material terms under such Award have been satisfied (other than in cases where
such relate solely to the increase in the value of the Common
Stock).

     

    15.3.
Discretionary Adjustments Pursuant to Code §162(m).  Notwithstanding
satisfaction of any completion of any Qualifying Performance Criteria, to the
extent specified at the time of grant of an Award to “covered employees” within
the meaning of Code §162(m), the number of shares of Common Stock, Options or
other benefits granted, issued, retainable or vested under an Award on account
of satisfaction of such Qualifying Performance Criteria may be reduced by the
Administrator on the basis of such further considerations as the Administrator
in its sole discretion determines.

     

    16. Repurchase Rights Upon
Termination of Employment.

     

    16.1.
Company’s Repurchase Rights.  If,
prior to the Repurchase Right Lapse Date, a Participant’s employment or service
with the Employer terminates for any reason, then, at any time prior to the
expiration of the Repurchase Right Exercise Period, the Company has the right to
repurchase the shares of Common Stock received pursuant to Awards granted
hereunder at a per share price equal to the Repurchase Price (the “Repurchase
Right”).

     

    16.2.
Exercise of Repurchase Rights.  Repurchase
Rights are exercisable upon written notice to the Participant indicating the
number of shares of Common Stock to be repurchased and the date on which the
repurchase is to be effected, such date to be not more than 30 days after the
date of such notice.  The certificates representing the shares of
Common Stock to be repurchased are to be delivered to the Company prior to the
close of business on the date specified for the repurchase.

     

    16.3.
Payment of Repurchase Price.  Except
in the case of the exercise of a Repurchase Right by the Company following a
Participant’s Termination of Employment by the Employer for Cause or by such
Participant without Good Reason, the aggregate Repurchase Price must be paid in
a lump sum at the time of repurchase.  If the Company exercises the
Repurchase Right following a Participant’s Termination of Employment by the
Employer for Cause or by such Participant without Good Reason, the Company may
issue a promissory note equal to the aggregate Repurchase Price in lieu of a
cash payment.  Such promissory note must: (i) have a maturity
date that does not exceed three years from the date of such repurchase;
(ii) bear simple interest of not less than the Prime Rate in effect on the
date of such repurchase; and (iii) be payable as to interest in equal
monthly installments during the term of the note and as to principal on the
maturity date.

     

    17. Adjustments upon Changes in
Capitalization, Dissolution, Merger or Asset Sale.

     

    17.1.
Changes in Capitalization.  Subject
to any required action by the shareholders of the Company, the number of shares
of Common Stock covered by each outstanding Award, the price per share subject
to each such outstanding Award and the share limitations set forth in
Section 5
will be proportionately adjusted for any increase or decrease in the number of
issued shares of Common Stock resulting from a stock split, reverse stock split,
stock dividend, combination or reclassification of the Common Stock, or any
other increase or decrease in the number of issued shares of Common Stock
effected without receipt of consideration by the Company; provided, however,
that conversion of any convertible securities of the Company will not be deemed
to have been “effected without receipt of consideration.”  Such
adjustment will be made by the Administrator, whose determination in that
respect is final, binding and conclusive.  Except as expressly
provided herein, no issuance by the Company of shares of Stock of any class, or
securities convertible into shares of Stock of any class, will affect, and no
adjustment by reason thereof will be made with respect to, the number or price
of shares of Common Stock subject to an Award.

     

    17.2.
Dissolution or Liquidation.  In
the event of the proposed dissolution or liquidation of the Company, the
Administrator will notify each Participant as soon as practicable prior to the
effective date of such proposed transaction.  The Administrator in its
discretion may provide for an Award to be fully vested and exercisable until ten
days prior to such transaction.  In addition, the Administrator may
provide that any restrictions on any Award will lapse prior to the transaction,
provided the proposed dissolution or liquidation takes place at
the

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

     

    time and in the manner
contemplated.  To the extent it has not been previously exercised, an
Award terminates immediately prior to the consummation of such proposed
transaction.

     

    17.3.
Change in Control.  In
the event there is a Change in Control of the Company, as determined by the
Board, the Board may, in its discretion: (i) provide for the assumption or
substitution of, or adjustment to, each outstanding Award; (ii) accelerate
the vesting of Awards and terminate any restrictions on Cash Awards or Stock
Awards; and (iii) provide for the cancellation of Awards for a cash payment
to the Participant.

     

    18. Amendment and Termination of
this Plan.

     

    18.1.
Amendment and Termination.  The
Administrator may amend or terminate this Plan or any Award Agreement, but any
such amendment is subject to approval of the shareholders of the Company in the
manner and only to the extent required by Applicable Law.  In
addition, unless approved by the shareholders of the Company, no such amendment
may be made that would: (i) materially increase the maximum number of
shares of Common Stock for which Awards may be granted under this Plan, other
than an increase pursuant to Section 17.1; (ii) reduce the minimum
exercise price for Options granted under this Plan; or (iii) change the
class of Persons eligible to receive Awards under this Plan.

     

    18.2.
Effect of Amendment or Termination.  No
amendment or termination of this Plan impairs the rights of any Award unless
mutually agreed otherwise between the Participant and the Administrator, which
agreement must be in writing and signed by the Participant and the
Company.  Termination of this Plan does not affect the Administrator’s
ability to exercise the powers granted to it hereunder with respect to Awards
granted under this Plan prior to the date of such termination.

     

    18.3.
Effect of this Plan on Other Arrangements.  Neither
the adoption of this Plan by the Board nor the submission of this Plan to the
shareholders of the Company for approval may be construed as creating any
limitations on the power of the Board to adopt such other incentive arrangements
as it may deem desirable, including the granting of restricted stock or stock
options otherwise than under this Plan, and such arrangements may be either
generally applicable or applicable only in specific cases.

     

    19. Arbitration.  Notice
of demand for arbitration under this Plan must be made in writing to the
Administrator within 30 days after the applicable decision by the
Administrator.  The arbitrator will be selected from amongst those
members of the Board who are neither Administrators nor Employees.  If
there are no such members of the Board, the arbitrator will be selected by the
Board.  Such arbitrator must be neutral within the meaning of the
Commercial Rules of Dispute Resolution of the American Arbitration Association;
provided, however, that the arbitration will not be administered by the American
Arbitration Association.  Any challenge to the neutrality of the
arbitrator will be resolved by the arbitrator whose decision is final and
conclusive.  The arbitration will be administered and conducted by the
arbitrator pursuant to the Commercial Rules of Dispute Resolution of the
American Arbitration Association.  The decision of the arbitrator on
the issues presented for arbitration is final and conclusive and may be enforced
in any court of competent jurisdiction.

     

    20. Captions.  Captions
contained in this Plan have been inserted herein only as a matter of convenience
and in no way define, limit, extend or describe the scope of this Plan or the
intent of any provision hereof.

     

    21. Construction.  Unless
the context of this Plan clearly requires otherwise: (i) references to the
plural include the singular and vice versa; (ii) references to any Person
include such Person’s successors and assigns but, if applicable, only if such
successors and assigns are permitted by this Plan; (iii) references to one
gender include all genders; (iv) “including” is not limiting; (v) “or”
has the inclusive meaning represented by the phrase “or”; (vi) the words
“hereof”, “herein”, “hereby”, “hereunder” and similar terms in this Plan refer
to this Plan as a whole and not to any particular provision of this Plan;
(vii) section references are to this Plan unless otherwise specified;
(viii) reference to any agreement (including this Plan), document or
instrument means such agreement, document or instrument as amended or modified
and in effect from time to time in accordance with the terms thereof and, if
applicable, the terms hereof; and (ix) specific or general references to
any Applicable Law mean such Applicable Law as amended, modified, codified or
reenacted, in whole or in part, and in effect from time to
time.  Incentive Stock Options issued under this Plan are intended to
qualify as incentive stock options described in Code §422.  All
provisions of this Plan with respect to Incentive Stock Options are to be
construed in conformity with this intention.

     

     

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

     

    22. Designation of
Beneficiary.  A
Participant may file a written designation of a beneficiary who is to receive
the Participant’s rights pursuant to a Participant’s Award or the Participant
may include his Awards in an omnibus beneficiary
designation for all benefits under this Plan.  To the extent that a
Participant has completed a designation of beneficiary while employed with an
Employer, such beneficiary designation remains in effect with respect to any
Award hereunder until changed by the Participant to the extent enforceable under
Applicable Law.  Such designation of beneficiary may be changed by the
Participant at any time by written notice to the Administrator.  In
the event of the death of a Participant and in the absence of a beneficiary
validly designated under this Plan who is living at the time of such
Participant’s death, the Company will allow the executor or administrator of the
estate of the Participant to exercise the Award or, if no such executor or
administrator has been appointed (to the knowledge of the Company), the Company,
in its discretion, may allow the spouse or one or more dependents or relatives
of the Participant to exercise the Award to the extent permissible under
Applicable Law.

     

    23. Determinations.  All
questions arising under this Plan or under any Award are to be decided by the
Administrator in its total and absolute discretion.  In the event the
Participant believes that a decision by the Administrator with respect to such
Person was arbitrary or capricious, the Participant may request arbitration with
respect to such decision in accordance with Section 19.  The
review by the arbitrator will be limited to determining whether the
Administrator’s decision was arbitrary or capricious.  This
arbitration is the sole and exclusive review permitted of the Administrator’s
decision, and the Participant will as a condition to the receipt of an Award be
deemed to explicitly waive any right to judicial review.

     

    24. Governing Law.  This
Plan and the rights and obligations of the parties hereunder are to be governed
by and construed and interpreted in accordance with the laws of the State of
Delaware applicable to contracts made and to be performed wholly within
Delaware, without regard to choice or conflict of laws rules.

     

    25. Inability to Obtain
Authority.  To
the extent the Company is unable to or the Administrator deems it infeasible to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company’s counsel to be necessary to the lawful issuance and
sale of any shares of Common Stock hereunder, the Company is relieved of any
liability with respect to the failure to issue or sell such shares of Common
Stock as to which such requisite authority has not been obtained.

     

    26. Invalidity.  In
the event that any provision of this Plan or any Award granted under this Plan
is declared to be illegal, invalid or otherwise unenforceable by a court of
competent jurisdiction, such provision will be reformed, if possible, to the
extent necessary to render it legal, valid and enforceable, or otherwise
deleted, and the remainder of the terms of this Plan or Award will not be
affected except to the extent necessary to reform or delete such illegal,
invalid or unenforceable provision.

     

    27. Legal
Compliance.  Shares
of Common Stock will not be issued pursuant to the exercise of an Award unless
the exercise of such Award and the issuance and delivery of such shares comply
with all Applicable Laws and is subject to the approval of counsel for the
Company with respect to such compliance.  Notwithstanding any terms or
conditions of any Award to the contrary, the Company is under no obligation to
offer to sell or to sell, and is prohibited from offering to sell or selling,
any shares of Common Stock pursuant to an Award unless such shares have been
properly registered for sale pursuant to the Securities Act with the United
States Securities and Exchange Commission or unless the Company has received an
opinion of counsel, satisfactory to the Company, that such shares may be offered
or sold without such registration pursuant to an available exemption therefrom
and the terms and conditions of such exemption have been complied with in
full.  The Company is under no obligation to register for sale or
resale under the Securities Act any of the shares of Common Stock to be offered
or sold under this Plan or any shares of Common Stock issued upon exercise of
Awards.  If the shares of Common Stock offered for sale or sold under
this Plan are offered or sold pursuant to an exemption from registration under
the Securities Act, the Company may restrict the transfer of such shares and may
legend the stock certificates representing such shares in such manner as it
deems advisable to ensure the availability of any such exemption.

     

    28. Limitation on
Liability.  The
Company and any Affiliate which is in existence or hereafter comes into
existence is not be liable to a Participant, an Employee or any other Person as
to: (i) the non-issuance or sale of shares of Common Stock as to which the
Company has been unable to obtain from any regulatory body having jurisdiction
the authority deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of such shares hereunder; and (ii) any tax consequence
expected, but not realized, by any Participant, Employee or other

     

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    Person due to the receipt, exercise or
settlement of any Award granted hereunder.  No Administrator is
personally liable by reason of any contract or other instrument executed by such
Administrator or on his behalf in his capacity as
Administrator nor for any mistake of judgment made in good faith.  The
Company will indemnify and hold harmless each Administrator and each other
Employee, Officer or Director to whom any duty or power relating to the
administration or interpretation of this Plan may be allocated or delegated,
against any cost or expense (including reasonable attorneys fees and expenses)
or liability (including any sum paid in settlement of a claim) arising out of
any act or omission to act in connection with this Plan unless arising out of
such Person’s own fraud or willful bad faith; provided, however, that approval
of the Board is required for the payment of any amount in settlement of a claim
against any such Person.  The foregoing right of indemnification is
not exclusive of any other rights of indemnification to which such Person may be
entitled under the Company’s certificate of incorporation or bylaws, as a matter
of Applicable Law or otherwise, or any power that the Company may have to
indemnify them or hold them harmless.

     

    29. No Right to Awards or to
Employment.  No
Person has any claim or right to be granted an Award and the grant of any Award
may not be construed as giving a Participant the right to continue in the employ
of the Company or its Affiliates.  Further, the Company and its
Affiliates expressly reserve the right, at any time, to dismiss any Employee or
Participant at any time without liability or any claim under this Plan, except
as provided herein or in any Award Agreement entered into
hereunder.

     

    30. Notice.  Any
written notice to the Company required by any provisions of this Plan must be
addressed to the Secretary of the Company and is effective when
received.

     

    31. Reliance on
Reports.  Each
Administrator is fully justified in relying, acting or failing to act, and is
not liable for having so relied, acted or failed to act in good faith, upon any
report made by the independent public accountant of the Company and its
Affiliates and upon any other information furnished in connection with this Plan
by any Person other than such Administrator.

     

    32. Reservation of
Shares.  The
Company, during the term of this Plan, will at all times reserve and keep
available such number of shares of Common Stock as is sufficient to satisfy the
requirements of this Plan.

     

    33. Rights and Privileges as a
Shareholder.  Except
as otherwise specifically provided in this Plan, no Person is entitled to the
rights and privileges of stock ownership in respect of shares of Common Stock
which are subject to Awards hereunder until such shares have been issued to that
Person (as evidenced by the appropriate entry on the books of the Company or of
a duly authorized transfer agent of the Company).  Unless otherwise
provided by the Administrator, a Participant holding Stock Units will be
entitled to receive dividend payments as if he was an actual
shareholder.

     

    34. Successors.  The
terms of this Plan and any Award inure to the benefit of and are binding upon
the Company and Participants and their respective permitted heirs,
beneficiaries, successors and assigns.

     

    35. Unfunded Plan.  Insofar
as it provides for Awards, this Plan is unfunded.  Although
bookkeeping accounts may be established with respect to Participants who are
granted Awards under this Plan, any such accounts will be used merely as a
bookkeeping convenience.  The Company is not required to segregate any
assets which may at any time be represented by Awards, this Plan may not be
construed as providing for such segregation, and neither the Company nor the
Administrator will be deemed to be a trustee of stock or cash to be awarded
under this Plan.  Any liability of the Company to any Participant with
respect to an Award will be based solely upon any contractual obligations which
may be created by this Plan.  No such obligation of the Company will
be deemed to be secured by any pledge or other encumbrance on any property of
the Company.  Neither the Company nor the Administrator is required to
give any security or bond for the performance of any obligation which may be
created by this Plan.

     

    36. Use of Proceeds.  The
proceeds from the sale of Common Stock pursuant to this Plan may be used for
general corporate purposes.

     

    37. Withholding
Obligations.  As
a condition to the exercise of any Award, the Administrator may require that a
Participant satisfy, through a cash payment by the Participant or, in the
discretion of the Administrator, through deduction or withholding from any
payment of any kind otherwise due to the Participant, or through
such

    
      
         

      

      
        19

        
          

        

      

      
         

      

    

    
other arrangements as are satisfactory to
the Participant, the minimum amount of all federal, state and local income and
other taxes of any kind required or permitted to be withheld in connection with
such exercise.  The Administrator in its discretion may permit shares
of Common Stock to be used to satisfy tax withholding requirements and such
shares will be valued at their Fair Market Value as of the settlement date of
the Award.  However, the aggregate Fair Market Value of the number of
shares of Common Stock that may be used to satisfy tax withholding requirements
may not exceed the minimum statutory required withholding amount with respect to
such Award.

     

     

     

     

     

     

    20

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