{"id":38455,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/2006-stock-incentive-plan-time-warner.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"2006-stock-incentive-plan-time-warner","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/compensation\/2006-stock-incentive-plan-time-warner.html","title":{"rendered":"2006 Stock Incentive Plan &#8211; Time Warner"},"content":{"rendered":"<p><strong>TIME WARNER INC.<\/strong><strong>2006 STOCK INCENTIVE PLAN<\/strong><\/p>\n<p>1. <strong>Purpose of the Plan<\/strong>                     The purpose of the Plan is<br \/>\nto aid the Company and its Affiliates in recruiting and retaining employees,<br \/>\ndirectors and advisors and to motivate such employees, directors and advisors to<br \/>\nexert their best efforts on behalf of the Company and its Affiliates by<br \/>\nproviding incentives through the granting of Awards. The Company expects that it<br \/>\nwill benefit from the added interest which such employees, directors and<br \/>\nadvisors will have in the welfare of the Company as a result of their<br \/>\nproprietary interest in the Company&#8217;s success. 2. <strong>Definitions<\/strong><br \/>\n                    The following capitalized terms used in the Plan have the respective<br \/>\nmeanings set forth in this Section:<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"3%\">\n<p>(a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Act<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means The Securities Exchange Act of 1934, as amended, or any successor<br \/>\nthereto.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"3%\">\n<p>(b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Affiliate<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means any entity that is consolidated with the Company for financial<br \/>\nreporting purposes or any other entity designated by the Board in which the<br \/>\nCompany or an Affiliate has a direct or indirect equity interest of at least<br \/>\ntwenty percent (20%), measured by reference to vote or value.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"3%\">\n<p>(c)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Award<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means an Option, Stock Appreciation Right, Restricted Stock or Other<br \/>\nStock-Based Award granted pursuant to the Plan.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"3%\">\n<p>(d)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Board<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means the Board of Directors of the Company.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"3%\">\n<p>(e)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Change in Control<\/strong><\/u><strong>&#8221;<br \/>\n<\/strong><\/p>\n<p>means the occurrence of any of the following events:<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>                    (i)  any &#8220;Person&#8221; within the meaning of Section  13(d)(3) or 14(d)(2)<br \/>\nof the Act (other than the Company or any company owned, directly or indirectly,<br \/>\nby the shareholders of the Company in substantially the same proportions as<br \/>\ntheir ownership of stock of the Company) becomes the &#8220;Beneficial Owner&#8221; within<br \/>\nthe meaning of Rule  13d-3 promulgated under the Act of 30% or more of the<br \/>\ncombined voting power of the then outstanding securities of the Company entitled<br \/>\nto vote generally in the election of directors; <u>excluding<\/u>,<br \/>\n<u>however<\/u>, any circumstance in which such beneficial ownership resulted<br \/>\nfrom any acquisition by an employee benefit plan (or related trust) sponsored or<br \/>\nmaintained by the Company or by any<\/p>\n<hr>\n<\/p>\n<p>  2 corporation controlling, controlled by, or under common control with, the<br \/>\nCompany;                     (ii)  a change in the composition of the Board since the<br \/>\nEffective Date, such that the individuals who, as of such date, constituted the<br \/>\nBoard (the &#8220;<u><strong>Incumbent Board<\/strong><\/u>&#8220;) cease for any reason to<br \/>\nconstitute at least a majority of such Board; <u>provided that<\/u> any<br \/>\nindividual who becomes a director of the Company subsequent to the Effective<br \/>\nDate whose election, or nomination for election by the Company&#8217;s stockholders,<br \/>\nwas approved by the vote of at least a majority of the directors then comprising<br \/>\nthe Incumbent Board shall be deemed a member of the Incumbent Board; and<br \/>\n<u>provided further<\/u>, that any individual who was initially elected as a<br \/>\ndirector of the Company as a result of an actual or threatened election contest,<br \/>\nas such terms are used in Rule  14a-12 of Regulation  14A promulgated under the<br \/>\nAct, or any other actual or threatened solicitation of proxies or consents by or<br \/>\non behalf of any person or Entity other than the Board shall not be deemed a<br \/>\nmember of the Incumbent Board;                     (iii)  a reorganization,<br \/>\nrecapitalization, merger or consolidation (a &#8220;<u><strong>Corporate<br \/>\nTransaction<\/strong><\/u>&#8220;) involving the Company, unless securities representing<br \/>\n60% or more of the combined voting power of the then outstanding voting<br \/>\nsecurities entitled to vote generally in the election of directors of the<br \/>\nCompany or the corporation resulting from such Corporate Transaction (or the<br \/>\nparent of such corporation) are held subsequent to such transaction by the<br \/>\nperson or persons who were the beneficial holders of the outstanding voting<br \/>\nsecurities entitled to vote generally in the election of directors of the<br \/>\nCompany immediately prior to such Corporate Transaction, in substantially the<br \/>\nsame proportions as their ownership immediately prior to such Corporate<br \/>\nTransaction; or                     (iv)  the sale, transfer or other disposition of all or<br \/>\nsubstantially all of the assets of the Company.<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(f)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Code<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means The Internal Revenue Code of 1986, as amended, or any successor<br \/>\nthereto.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(g)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Committee<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means the Compensation and Human Development Committee of the Board or its<br \/>\nsuccessor, or such other committee of the Board to which the Board has delegated<br \/>\npower to act under or pursuant to the provisions of the Plan or a subcommittee<br \/>\nof the Compensation and Human Development Committee (or such other committee)<br \/>\nestablished by the Compensation and Human Development Committee or such other<br \/>\ncommittee.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(h)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Company<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means Time Warner Inc., a Delaware corporation.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<\/p>\n<p align=\"right\">3<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(i)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Effective Date<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means the date the Board approved the Plan (March  23, 2006).<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(j)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Employment<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means (i)  a Participant&#8217;s employment if the Participant is an employee of the<br \/>\nCompany or any of its Affiliates and (ii) a Participant&#8217;s services as a<br \/>\nnon-employee director, if the Participant is a non-employee member of the Board<br \/>\nor the board of directors of an Affiliate; <u>provided<\/u>, <u>however<\/u> that<br \/>\nunless otherwise determined by the Committee, a change in a Participant&#8217;s status<br \/>\nfrom employee to non-employee (other than a director of the Company or an<br \/>\nAffiliate) shall constitute a termination of employment hereunder.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(k)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Fair Market Value<\/strong><\/u><strong>&#8221;<br \/>\n<\/strong><\/p>\n<p>means, on a given date, (i)  if there should be a public market for the Shares<br \/>\non such date, (x)  prior to October  1, 2008, the average of the high and low<br \/>\nprices of the Shares on the New York Stock Exchange, or, if the Shares are not<br \/>\nlisted or admitted on any national securities exchange, the average of the per<br \/>\nShare closing bid price and per Share closing asked price on such date as quoted<br \/>\non the National Association of Securities Dealers Automated Quotation System (or<br \/>\nsuch market in which such prices are regularly quoted) (the &#8220;NASDAQ&#8221;), or, if no<br \/>\nsale of Shares shall have been reported on the New York Stock Exchange or quoted<br \/>\non the NASDAQ on such date, then the immediately preceding date on which sales<br \/>\nof the Shares have been so reported or quoted shall be used, and (y)  on and<br \/>\nafter October  1, 2008, the closing sale price of the Shares on the New York<br \/>\nStock Exchange Composite Tape, or, if the Shares are not listed or admitted on<br \/>\nany national securities exchange, the average of the per Share closing bid price<br \/>\nand per Share closing asked price on such date as quoted on the National<br \/>\nAssociation of Securities Dealers Automated Quotation System (or such market in<br \/>\nwhich such prices are regularly quoted) (the &#8220;NASDAQ&#8221;), or, if no sale of Shares<br \/>\nshall have been reported on the New York Stock Exchange Composite Tape or quoted<br \/>\non the NASDAQ on such date, then the immediately preceding date on which sales<br \/>\nof the Shares have been so reported or quoted shall be used, and (ii)  if there<br \/>\nshould not be a public market for the Shares on such date, the Fair Market Value<br \/>\nshall be the value established by the Committee in good faith.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(l)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>ISO<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means an Option that is also an incentive stock option granted pursuant to<br \/>\nSection  6(d).<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(m)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Option<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means a stock option granted pursuant to Section  6.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(n)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;<u><strong>Option Price<\/strong><\/u>&#8221; means the price for which a Share can<br \/>\nbe purchased upon exercise of an Option, as determined pursuant to Section  6(a).\n<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(o)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Other Stock-Based Awards<\/strong><\/u><strong>&#8221;<br \/>\n<\/strong><\/p>\n<p>means awards granted pursuant to Section  9.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<\/p>\n<p align=\"right\">4<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(p)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Participant<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means an employee, prospective employee, director or advisor of the Company<br \/>\nor an Affiliate who is selected by the Committee to participate in the Plan.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(q)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Performance-Based Awards<\/strong><\/u><strong>&#8221;<br \/>\n<\/strong><\/p>\n<p>means certain Other Stock-Based Awards granted pursuant to Section  9(b).<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(r)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Plan<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means the Time Warner Inc. 2006 Stock Incentive Plan, as amended from time to<br \/>\ntime.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(s)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Restricted Stock<\/strong><\/u><strong>&#8221;<br \/>\n<\/strong><\/p>\n<p>means any Share granted under Section  8.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(t)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Shares<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means shares of common stock of the Company, $.01 par value per share.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(u)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Stock Appreciation Right<\/strong><\/u><strong>&#8221;<br \/>\n<\/strong><\/p>\n<p>means a stock appreciation right granted pursuant to Section  7.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(v)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><strong>&#8220;<\/strong><u><strong>Subsidiary<\/strong><\/u><strong>&#8221; <\/strong><\/p>\n<p>means a subsidiary corporation, as defined in Section 424(f) of the Code (or<br \/>\nany successor section thereto), of the Company.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>3. <strong>Shares Subject to the Plan<\/strong>                     The total number of<br \/>\nShares which may be issued under the Plan is 72,213,882, of which no more than<br \/>\n30% may be issued in the form of Restricted Stock or Other Stock-Based Awards<br \/>\npayable in Shares. The maximum aggregate number of Shares with respect to which<br \/>\nAwards may be granted during a calendar year, net of any Shares which are<br \/>\nsubject to Awards (or portions thereof) which, during such year, terminate or<br \/>\nlapse without payment of consideration, shall be equal to 1.5% of the number of<br \/>\nShares outstanding on December  31 of the preceding calendar year. The maximum<br \/>\nnumber of Shares with respect to which Awards may be granted during a calendar<br \/>\nyear to any Participant shall be 962,850; <u>provided that<\/u> the maximum<br \/>\nnumber of Shares that may be awarded in the form of Restricted Stock or Other<br \/>\nStock-Based Awards payable in Shares during any calendar year to any Participant<br \/>\nshall be 288,855. The number of Shares available for issuance under the Plan<br \/>\nshall be reduced by the full number of Shares covered by Awards granted under<br \/>\nthe Plan (including, without limitation, the full number of Shares covered by<br \/>\nany Stock Appreciation Right, regardless of whether any such Stock Appreciation<br \/>\nRight or other Award covering Shares under the Plan is ultimately settled in<br \/>\ncash or by delivery of Shares); <u>provided, however<\/u>, that the number of<br \/>\nShares covered by Awards (or portions thereof) that are forfeited or that<br \/>\notherwise terminate or lapse without the payment of consideration in respect<br \/>\nthereof shall again become available for issuance under the Plan; and<br \/>\n<u>provided further<\/u> that any Shares that are forfeited after the actual<br \/>\nissuance of such Shares to a Participant under the Plan shall not become<br \/>\navailable for re-issuance under the Plan. 4. <strong>Administration<\/strong>\n<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>The Plan shall be administered by the Committee, which may delegate its<br \/>\nduties and powers in whole or in part to any subcommittee thereof consisting<br \/>\nsolely of at least two individuals who are intended to qualify as<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<\/p>\n<p align=\"right\">5<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>&#8220;independent directors&#8221; within the meaning of the New York Stock Exchange<br \/>\nlisted company rules, &#8220;Non-Employee Directors&#8221; within the meaning of Rule 16b-3<br \/>\nunder the Act (or any successor rule thereto) and, to the extent required by<br \/>\nSection 162(m) of the Code (or any successor section thereto), &#8220;outside<br \/>\ndirectors&#8221; within the meaning thereof. In addition, the Committee may delegate<br \/>\nthe authority to grant Awards under the Plan to any employee or group of<br \/>\nemployees of the Company or an Affiliate; <u>provided that<\/u> such grants are<br \/>\nconsistent with guidelines established by the Committee from time to time.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>The Committee shall have the full power and authority to make, and establish<br \/>\nthe terms and conditions of, any Award to any person eligible to be a<br \/>\nParticipant, consistent with the provisions of the Plan and to waive any such<br \/>\nterms and conditions at any time (including, without limitation, accelerating or<br \/>\nwaiving any vesting conditions). Awards may, in the discretion of the Committee,<br \/>\nbe made under the Plan in assumption of, or in substitution for, outstanding<br \/>\nawards previously granted by the Company or its affiliates or a company acquired<br \/>\nby the Company or with which the Company combines. The number of Shares<br \/>\nunderlying such substitute awards shall be counted against the aggregate number<br \/>\nof Shares available for Awards under the Plan.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(c)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>The Committee is authorized to interpret the Plan, to establish, amend and<br \/>\nrescind any rules and regulations relating to the Plan, and to make any other<br \/>\ndeterminations that it deems necessary or desirable for the administration of<br \/>\nthe Plan, and may delegate such authority, as it deems appropriate. The<br \/>\nCommittee may correct any defect or supply any omission or reconcile any<br \/>\ninconsistency in the Plan in the manner and to the extent the Committee deems<br \/>\nnecessary or desirable. Any decision of the Committee in the interpretation and<br \/>\nadministration of the Plan, as described herein, shall lie within its sole and<br \/>\nabsolute discretion and shall be final, conclusive and binding on all parties<br \/>\nconcerned (including, but not limited to, Participants and their beneficiaries<br \/>\nor successors).<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(d)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>The Committee shall require payment of any amount it may determine to be<br \/>\nnecessary to withhold for federal, state, local or other taxes as a result of<br \/>\nthe exercise, grant or vesting of an Award. Unless the Committee specifies<br \/>\notherwise, the Participant may elect to pay a portion or all of such withholding<br \/>\ntaxes by (a)  delivery of Shares or (b)  having Shares withheld by the Company<br \/>\nwith a Fair Market Value equal to the minimum statutory withholding rate from<br \/>\nany Shares that would have otherwise been received by the Participant.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>5. <strong>Limitations<\/strong><\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>No Award may be granted under the Plan after the fifth anniversary of the<br \/>\nmeeting of shareholders of the Company at which the Plan is approved,<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<\/p>\n<p align=\"right\">6<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>but Awards granted prior to such fifth anniversary may extend beyond that<br \/>\ndate.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>No Option or Stock Appreciation Right, once granted hereunder, may be<br \/>\nrepriced.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(c)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>With respect to any Awards granted to a Participant who is a non-employee<br \/>\nmember of the Board at the time of grant, such Awards shall be made pursuant to<br \/>\nformulas established by the Board in advance of such grant. Any such Awards<br \/>\nshall be made at the time such a Participant first becomes a member of the Board<br \/>\nand, thereafter, on an annual basis at or following the annual meeting of<br \/>\nstockholders. Such formulas may include any one or more of the following: (i)  a<br \/>\nfixed number of Options or Stock Appreciation Rights, (ii) a fixed number of<br \/>\nShares of Restricted Stock or a number of Shares of Restricted Stock determined<br \/>\nby reference to a fixed dollar amount (calculated based on the Fair Market Value<br \/>\nof a Share on the date of grant), and (iii) Other Stock-Based Awards determined<br \/>\neither by reference to a fixed number of Shares or to a fixed dollar amount<br \/>\n(calculated based on the Fair Market Value of a Share on the date of grant).<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>6. <strong>Terms and Conditions of Options<\/strong>                     Options granted<br \/>\nunder the Plan shall be, as determined by the Committee, nonqualified or<br \/>\nincentive stock options for federal income tax purposes, as evidenced by the<br \/>\nrelated Award agreements, and shall be subject to the foregoing and the<br \/>\nfollowing terms and conditions and to such other terms and conditions, not<br \/>\ninconsistent therewith, as the Committee shall determine, and as evidenced by<br \/>\nthe related Award agreement:<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Option Price<\/u><\/p>\n<p>. The Option Price per Share shall be determined by the Committee, but shall<br \/>\nnot be less than 100% of the Fair Market Value of a Share on the date an Option<br \/>\nis granted.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Exercisability<\/u><\/p>\n<p>. Options granted under the Plan shall be exercisable at such time and upon<br \/>\nsuch terms and conditions as may be determined by the Committee, but in no event<br \/>\nshall an Option be exercisable more than ten years after the date it is granted,<br \/>\nexcept as may be provided pursuant to Section  15.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(c)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Exercise of Options<\/u><\/p>\n<p>. Except as otherwise provided in the Plan or in an Award agreement, an<br \/>\nOption may be exercised for all, or from time to time any part, of the Shares<br \/>\nfor which it is then exercisable. For purposes of this Section  6, the exercise<br \/>\ndate of an Option shall be the date a notice of exercise is received by the<br \/>\nCompany, together with provision for payment of the full purchase price in<br \/>\naccordance with this Section  6(c). The purchase price for the Shares as to which<br \/>\nan Option is exercised shall be paid to the Company, as designated by the<br \/>\nCommittee, pursuant to one<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<\/p>\n<p align=\"right\">7<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>or more of the following methods: (i)  in cash or its equivalent (e.g., by<br \/>\ncheck); (ii)  in Shares having a Fair Market Value equal to the aggregate Option<br \/>\nPrice for the Shares being purchased and satisfying such other requirements as<br \/>\nmay be imposed by the Committee; <u>provided that<\/u> such Shares have been held<br \/>\nby the Participant for no less than six months (or such other period as<br \/>\nestablished from time to time by the Committee in order to avoid adverse<br \/>\naccounting treatment applying generally accepted accounting principles);<br \/>\n(iii)  partly in cash and partly in such Shares or (iv)  if there is a public<br \/>\nmarket for the Shares at such time, through the delivery of irrevocable<br \/>\ninstructions to a broker to sell Shares obtained upon the exercise of the Option<br \/>\nand to deliver promptly to the Company an amount out of the proceeds of such<br \/>\nSale equal to the aggregate Option Price for the Shares being purchased. No<br \/>\nParticipant shall have any rights to dividends or other rights of a stockholder<br \/>\nwith respect to Shares subject to an Option until the Shares are issued to the<br \/>\nParticipant.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(d)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>ISOs<\/u><\/p>\n<p>. The Committee may grant Options under the Plan that are intended to be<br \/>\nISOs. Such ISOs shall comply with the requirements of Section  422 of the Code<br \/>\n(or any successor section thereto). No ISO may be granted to any Participant who<br \/>\nat the time of such grant, owns more than ten percent of the total combined<br \/>\nvoting power of all classes of stock of the Company or of any Subsidiary, unless<br \/>\n(i)  the Option Price for such ISO is at least 110% of the Fair Market Value of a<br \/>\nShare on the date the ISO is granted and (ii)  the date on which such ISO<br \/>\nterminates is a date not later than the day preceding the fifth anniversary of<br \/>\nthe date on which the ISO is granted. Any Participant who disposes of Shares<br \/>\nacquired upon the exercise of an ISO either (i)  within two years after the date<br \/>\nof grant of such ISO or (ii)  within one year after the transfer of such Shares<br \/>\nto the Participant, shall notify the Company of such disposition and of the<br \/>\namount realized upon such disposition. All Options granted under the Plan are<br \/>\nintended to be nonqualified stock options, unless the applicable Award agreement<br \/>\nexpressly states that the Option is intended to be an ISO. If an Option is<br \/>\nintended to be an ISO, and if for any reason such Option (or portion thereof)<br \/>\nshall not qualify as an ISO, then, to the extent of such nonqualification, such<br \/>\nOption (or portion thereof) shall be regarded as a nonqualified stock option<br \/>\ngranted under the Plan; <u>provided<\/u> <u>that<\/u> such Option (or portion<br \/>\nthereof) otherwise complies with the Plan&#8217;s requirements relating to<br \/>\nnonqualified stock options. In no event shall any member of the Committee, the<br \/>\nCompany or any of its Affiliates (or their respective employees, officers or<br \/>\ndirectors) have any liability to any Participant (or any other person) due to<br \/>\nthe failure of an Option to qualify for any reason as an ISO.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(e)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Attestation<\/u><\/p>\n<p>. Wherever in this Plan or any agreement evidencing an Award a Participant is<br \/>\npermitted to pay the exercise price of an Option or taxes relating to the<br \/>\nexercise of an Option by delivering Shares, the Participant may, subject to<br \/>\nprocedures satisfactory to the Committee, satisfy such<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<\/p>\n<p align=\"right\">8<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>delivery requirement by presenting proof of beneficial ownership of such<br \/>\nShares, in which case the Company shall treat the Option as exercised without<br \/>\nfurther payment and\/or shall withhold such number of Shares from the Shares<br \/>\nacquired by the exercise of the Option, as appropriate.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>7. <strong>Terms and Conditions of Stock Appreciation Rights<\/strong><\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Grants<\/u><\/p>\n<p>. The Committee may grant (i)  a Stock Appreciation Right independent of an<br \/>\nOption or (ii)  a Stock Appreciation Right in connection with an Option, or a<br \/>\nportion thereof. A Stock Appreciation Right granted pursuant to clause (ii)  of<br \/>\nthe preceding sentence (A)  may be granted at the time the related Option is<br \/>\ngranted or at any time prior to the exercise or cancellation of the related<br \/>\nOption, (B)  shall cover the same number of Shares covered by an Option (or such<br \/>\nlesser number of Shares as the Committee may determine) and (C)  shall be subject<br \/>\nto the same terms and conditions as such Option except for such additional<br \/>\nlimitations as are contemplated by this Section  7 (or such additional<br \/>\nlimitations as may be included in an Award agreement).<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Terms<\/u><\/p>\n<p>. The exercise price per Share of a Stock Appreciation Right shall be an<br \/>\namount determined by the Committee but in no event shall such amount be less<br \/>\nthan the Fair Market Value of a Share on the date the Stock Appreciation Right<br \/>\nis granted; <u>provided<\/u>, <u>however<\/u>, that notwithstanding the foregoing<br \/>\nin the case of a Stock Appreciation Right granted in conjunction with an Option,<br \/>\nor a portion thereof, the exercise price may not be less than the Option Price<br \/>\nof the related Option. Each Stock Appreciation Right granted independent of an<br \/>\nOption shall entitle a Participant upon exercise to an amount equal to (i)  the<br \/>\nexcess of (A)  the Fair Market Value on the exercise date of one Share over<br \/>\n(B)  the exercise price per Share, times (ii)  the number of Shares covered by the<br \/>\nStock Appreciation Right. Each Stock Appreciation Right granted in conjunction<br \/>\nwith an Option, or a portion thereof, shall entitle a Participant to surrender<br \/>\nto the Company the unexercised Option, or any portion thereof, and to receive<br \/>\nfrom the Company in exchange therefor an amount equal to (i)  the excess of<br \/>\n(A)  the Fair Market Value on the exercise date of one Share over (B)  the Option<br \/>\nPrice per Share, times (ii)  the number of Shares covered by the Option, or<br \/>\nportion thereof, which is surrendered. Payment shall be made in Shares or in<br \/>\ncash, or partly in Shares and partly in cash (any such Shares valued at such<br \/>\nFair Market Value), all as shall be determined by the Committee. Stock<br \/>\nAppreciation Rights may be exercised from time to time upon actual receipt by<br \/>\nthe Company of written notice of exercise stating the number of Shares with<br \/>\nrespect to which the Stock Appreciation Right is being exercised. The date a<br \/>\nnotice of exercise is received by the Company shall be the exercise date. No<br \/>\nfractional Shares will be issued in payment for Stock Appreciation Rights, but<br \/>\ninstead cash will be paid for a fraction or, if the Committee should so<br \/>\ndetermine, the number of Shares will be rounded downward to the next<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<\/p>\n<p align=\"right\">9<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>whole Share. No Participant shall have any rights to dividends or other<br \/>\nrights of a stockholder with respect to Shares covered by Stock Appreciation<br \/>\nRights until the Shares are issued to the Participant.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(c)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Limitations<\/u><\/p>\n<p>. The Committee may impose, in its discretion, such conditions upon the<br \/>\nexercisability of Stock Appreciation Rights as it may deem fit, but in no event<br \/>\nshall a Stock Appreciation Right be exercisable more than ten years after the<br \/>\ndate it is granted, except as may be provided pursuant to Section  15.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>8. <strong>Restricted Stock<\/strong><\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Grant<\/u><\/p>\n<p>. Subject to the provisions of the Plan, the Committee shall determine the<br \/>\nnumber of Shares of Restricted Stock to be granted to each Participant, the<br \/>\nduration of the period during which, and the conditions, if any, under which,<br \/>\nthe Restricted Stock may be forfeited to the Company, and the other terms and<br \/>\nconditions of such Awards; <u>provided that<\/u> not less than 95% of the Shares<br \/>\nof Restricted Stock shall remain subject to forfeiture for at least three years<br \/>\nafter the date of grant, subject to earlier termination of such potential for<br \/>\nforfeiture in whole or in part in the event of a Change in Control or the death,<br \/>\ndisability or other termination of the Participant&#8217;s employment.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Transfer Restrictions<\/u><\/p>\n<p>. Shares of Restricted Stock may not be sold, assigned, transferred, pledged<br \/>\nor otherwise encumbered, except as provided in the Plan or the applicable Award<br \/>\nagreement. Certificates, or other evidence of ownership, issued in respect of<br \/>\nShares of Restricted Stock shall be registered in the name of the Participant<br \/>\nand deposited by such Participant, together with a stock power endorsed in<br \/>\nblank, with the Company. After the lapse of the restrictions applicable to such<br \/>\nShares of Restricted Stock, the Company shall deliver such certificates, or<br \/>\nother evidence of ownership, to the Participant or the Participant&#8217;s legal<br \/>\nrepresentative.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(c)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Dividends<\/u><\/p>\n<p>. Dividends paid on any Shares of Restricted Stock may be paid directly to<br \/>\nthe Participant, withheld by the Company subject to vesting of the Restricted<br \/>\nShares pursuant to the terms of the applicable Award agreement, or may be<br \/>\nreinvested in additional Shares of Restricted Stock, as determined by the<br \/>\nCommittee in its sole discretion.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(d)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Performance-Based Grants<\/u><\/p>\n<p>. Notwithstanding anything to the contrary herein, certain Shares of<br \/>\nRestricted Stock granted under this Section  8 may, at the discretion of the<br \/>\nCommittee, be granted in a manner which is intended to be deductible by the<br \/>\nCompany under Section 162(m) of the Code (or any successor section thereto). The<br \/>\nrestrictions applicable to such Restricted Stock shall lapse based wholly or<br \/>\npartially on the attainment of written performance goals approved by the<br \/>\nCommittee for a<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<\/p>\n<p align=\"right\">10<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>performance period established by the Committee (i)  while the outcome for<br \/>\nthat performance period is substantially uncertain and (ii)  no more than 90  days<br \/>\nafter the commencement of the performance period to which the performance goal<br \/>\nrelates or, if less, the number of days which is equal to 25  percent of the<br \/>\nrelevant performance period. The performance goals, which must be objective,<br \/>\nshall be based upon one or more of the criteria set forth in Section 9(b) below.<br \/>\nThe Committee shall determine in its discretion whether, with respect to a<br \/>\nperformance period, the applicable performance goals have been met with respect<br \/>\nto a given Participant and, if they have, shall so certify prior to the release<br \/>\nof the restrictions on the Shares.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<\/p>\n<p align=\"right\">11<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<\/table>\n<p>9. <strong>Other Stock-Based Awards<\/strong><\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Generally<\/u><\/p>\n<p>. The Committee, in its sole discretion, may grant or sell Awards of Shares<br \/>\nand Awards that are valued in whole or in part by reference to, or are otherwise<br \/>\nbased on the Fair Market Value of, Shares (&#8220;Other Stock-Based Awards&#8221;). Such<br \/>\nOther Stock-Based Awards shall be in such form, and dependent on such<br \/>\nconditions, as the Committee shall determine, including, without limitation, the<br \/>\nright to receive, or vest with respect to, one or more Shares (or the equivalent<br \/>\ncash value of such Shares) upon the completion of a specified period of service,<br \/>\nthe occurrence of an event and\/or the attainment of performance objectives.<br \/>\nOther Stock-Based Awards may be granted alone or in addition to any other Awards<br \/>\ngranted under the Plan. Subject to the provisions of the Plan, the Committee<br \/>\nshall determine the number of Shares to be awarded to a Participant under (or<br \/>\notherwise related to) such Other Stock-Based Awards; whether such Other<br \/>\nStock-Based Awards shall be settled in cash, Shares or a combination of cash and<br \/>\nShares; and all other terms and conditions of such Awards (including, without<br \/>\nlimitation, the vesting provisions thereof and provisions ensuring that all<br \/>\nShares so awarded and issued shall be fully paid and non-assessable). The<br \/>\nmaximum amount of Other Stock-Based Awards that may be granted during a calendar<br \/>\nyear to any Participant shall be: (x)  with respect to Other Stock-Based Awards<br \/>\nthat are denominated or payable in Shares, 288,855 Shares and (y)  with respect<br \/>\nto Other Stock-Based Awards that are not denominated or payable in Shares,<br \/>\n$10  million. Notwithstanding any other provision, with respect to (i)  Other<br \/>\nStock-Based Awards settled in Shares that are subject to time-based vesting, not<br \/>\nless than 95% of such Other Stock Based Awards payable in Shares shall vest and<br \/>\nbecome payable at least three years after the date of grant, subject to earlier<br \/>\nvesting in whole or in part in the event of a Change in Control or the death,<br \/>\ndisability or other termination of the Participant&#8217;s employment, and (ii)  Other<br \/>\nStock-Based Awards settled in Shares that are subject to vesting upon the<br \/>\nattainment of performance objectives, the minimum performance period shall be<br \/>\none year.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Performance-Based Awards<\/u><\/p>\n<p>. Notwithstanding anything to the contrary herein, certain Other Stock-Based<br \/>\nAwards granted under this Section  9 may be granted in a manner which is intended<br \/>\nto be deductible by the Company under Section 162(m) of the Code (or any<br \/>\nsuccessor section thereto) (&#8220;Performance-Based Awards&#8221;). A Participant&#8217;s<br \/>\nPerformance-Based Award shall be determined based on the attainment of written<br \/>\nperformance goals approved by the Committee for a performance period of not less<br \/>\nthan one year established by the Committee (i)  while the outcome for that<br \/>\nperformance period is substantially uncertain and (ii)  no more than 90  days<br \/>\nafter the commencement of the performance period to which the performance goal<br \/>\nrelates or, if less, the number of days which is equal to 25  percent of the<br \/>\nrelevant performance period. The performance goals, which must be objective,<br \/>\nshall be based upon one or more of the<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<\/p>\n<p align=\"right\">12<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>following criteria: (i)  operating income before depreciation and<br \/>\namortization; (ii)  operating income; (iii)  earnings per Share; (iv)  return on<br \/>\nshareholders&#8217; equity; (v)  revenues or sales; (vi)  free cash flow; (vii) return<br \/>\non invested capital and (viii)  total shareholder return. The foregoing criteria<br \/>\nmay relate to the Company, one or more of its Affiliates or one or more of its<br \/>\nor their divisions or units, or any combination of the foregoing, and may be<br \/>\napplied on an absolute basis and\/or be relative to one or more peer group<br \/>\ncompanies or indices, or any combination thereof, all as the Committee shall<br \/>\ndetermine. In addition, to the degree consistent with Section 162(m) of the Code<br \/>\n(or any successor section thereto), the performance goals may be calculated<br \/>\nwithout regard to extraordinary items. The Committee shall determine whether,<br \/>\nwith respect to a performance period, the applicable performance goals have been<br \/>\nmet with respect to a given Participant and, if they have, shall so certify and<br \/>\nascertain the amount of the applicable Performance-Based Award. No<br \/>\nPerformance-Based Awards will be paid for such performance period until such<br \/>\ncertification is made by the Committee. The amount of the Performance-Based<br \/>\nAward actually paid to a given Participant may be less than the amount<br \/>\ndetermined by the applicable performance goal formula, at the discretion of the<br \/>\nCommittee. The amount of the Performance-Based Award determined by the Committee<br \/>\nfor a performance period shall be paid to the Participant at such time as<br \/>\ndetermined by the Committee in its sole discretion after the end of such<br \/>\nperformance period; <u>provided<\/u>, <u>however<\/u>, that a Participant may, if<br \/>\nand to the extent permitted by the Committee and consistent with the provisions<br \/>\nof Section 162(m) of the Code and Section  19 below, elect to defer payment of a<br \/>\nPerformance-Based Award.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>10. <strong>Adjustments Upon Certain Events<\/strong><br \/>\n                    Notwithstanding any other provisions in the Plan to the contrary, the<br \/>\nfollowing provisions shall apply to all Awards granted under the Plan:<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"4%\"><\/td>\n<td width=\"3%\">\n<p>(a)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Generally<\/u><\/p>\n<p>. In the event of any change in the outstanding Shares (including, without<br \/>\nlimitation, the value thereof) after the Effective Date by reason of any Share<br \/>\ndividend or split, reorganization, recapitalization, merger, consolidation,<br \/>\nspin-off, combination, combination or transaction or exchange of Shares or other<br \/>\ncorporate exchange, or any distribution to shareholders of Shares other than<br \/>\nregular cash dividends or any transaction similar to the foregoing, the<br \/>\nCommittee in its sole discretion and without liability to any person shall make<br \/>\nsuch substitution or adjustment, if any, as it deems to be equitable (subject to<br \/>\nSection  19), as to (i)  the number or kind of Shares or other securities issued<br \/>\nor reserved for issuance pursuant to the Plan or pursuant to outstanding Awards,<br \/>\n(ii)  the maximum number of Shares for which Awards (including limits established<br \/>\nfor Restricted Stock or Other Stock-Based Awards) may be granted during a<br \/>\ncalendar<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<hr>\n<\/p>\n<p align=\"right\">13<\/p>\n<table style=\"font-size: 10pt\" width=\"100%\" cellpadding=\"0\" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\"><\/td>\n<td width=\"1%\"><\/td>\n<td>\n<p>year to any Participant, (iii)  the Option Price or exercise price of any<br \/>\nStock Appreciation Right and\/or (iv)  any other affected terms of such Awards.\n<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<\/tr>\n<tr>\n<td width=\"5%\"><\/td>\n<td width=\"3%\">\n<p>(b)<\/p>\n<\/td>\n<td width=\"1%\"><\/td>\n<td><u>Change in Control<\/u><\/p>\n<p>. In the event of a Change in Control after the Effective Date, the Committee<br \/>\nmay (subject to Section  19), but shall not be obligated to, (A)  accelerate, vest<br \/>\nor cause the restrictions to lapse with respect to, all or any portion of an<br \/>\nAward, (B)  cancel Awards for fair value (as determined in the sole discretion of<br \/>\nthe Committee) which, in the case of Options and Stock Appreciation Rights, may<br \/>\nequal the excess, if any, of value of the consideration to be paid in the Change<br \/>\nin Control transaction to holders of the same number of Shares subject to such<br \/>\nOptions or Stock Appreciation Rights (or, if no consideration is paid in any<br \/>\nsuch transaction, the Fair Market Value of the Shares subject to such Options or<br \/>\nStock Appreciation Rights) over the aggregate exercise price of such Options or<br \/>\nStock Appreciation Rights, (C)  provide for the issuance of substitute Awards<br \/>\nthat will substantially preserve the otherwise applicable terms of any affected<br \/>\nAwards previously granted hereunder as determined by the Committee in its sole<br \/>\ndiscretion or (D)  provide that for a period of at least 30  days prior to the<br \/>\nChange in Control, such Options shall be exercisable as to all shares subject<br \/>\nthereto and that upon the occurrence of the Change in Control, such Options<br \/>\nshall terminate and be of no further force and effect.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>11. <strong>No Right to Employment or Awards<\/strong>                     The granting<br \/>\nof an Award under the Plan shall impose no obligation on the Company or any<br \/>\nAffiliate to continue the Employment of a Participant and shall not lessen or<br \/>\naffect the Company&#8217;s or Subsidiary&#8217;s right to terminate the Employment of such<br \/>\nParticipant. No Participant or other person shall have any claim to be granted<br \/>\nany Award, and there is no obligation for uniformity of treatment of<br \/>\nParticipants, or holders of Awards. The terms and conditions of Awards and the<br \/>\nCommittee&#8217;s determinations and interpretations with respect thereto need not be<br \/>\nthe same with respect to each Participant (whether or not such Participants are<br \/>\nsimilarly situated). 12. <strong>Successors and Assigns<\/strong>                     The<br \/>\nPlan shall be binding on all successors and assigns of the Company and a<br \/>\nParticipant, including without limitation, the estate of such Participant and<br \/>\nthe executor, administrator or trustee of such estate, or any receiver or<br \/>\ntrustee in bankruptcy or representative of the Participant&#8217;s creditors. 13.<br \/>\n<strong>Nontransferability of Awards<\/strong>                     Unless otherwise<br \/>\ndetermined by the Committee (and subject to the limitation that in no<br \/>\ncircumstances may an Award may be transferred by the Participant for<br \/>\nconsideration or value), an Award shall not be transferable or assignable by the<br \/>\nParticipant otherwise than by will<\/p>\n<hr>\n<\/p>\n<p align=\"right\">14<\/p>\n<p>or by the laws of descent and distribution. An Award exercisable after the<br \/>\ndeath of a Participant may be exercised by the legatees, personal<br \/>\nrepresentatives or distributees of the Participant. 14. <strong>Amendments or<br \/>\nTermination<\/strong>                     The Board or the Committee may amend, alter or<br \/>\ndiscontinue the Plan, but no amendment, alteration or discontinuation shall be<br \/>\nmade, (a)  without the approval of the shareholders of the Company, if such<br \/>\naction would (except as is provided in Section  10 of the Plan), increase the<br \/>\ntotal number of Shares reserved for the purposes of the Plan or increase the<br \/>\nmaximum number of Shares of Restricted Stock or Other Stock-Based Awards that<br \/>\nmay be awarded hereunder, or the maximum number of Shares for which Awards may<br \/>\nbe granted to any Participant, (b)  without the consent of a Participant, if such<br \/>\naction would diminish any of the rights of the Participant under any Award<br \/>\ntheretofore granted to such Participant under the Plan or (c)  to Section  5(b),<br \/>\nrelating to repricing of Options or Stock Appreciation Rights, to permit such<br \/>\nrepricing; <u>provided<\/u>, <u>however<\/u>, that the Committee may amend the<br \/>\nPlan in such manner as it deems necessary to permit the granting of Awards<br \/>\nmeeting the requirements of the Code or other applicable laws.                     Without<br \/>\nlimiting the generality of the foregoing, to the extent applicable,<br \/>\nnotwithstanding anything herein to the contrary, this Plan and Awards issued<br \/>\nhereunder shall be interpreted in accordance with Section  409A of the Code and<br \/>\nDepartment of Treasury regulations and other interpretative guidance issued<br \/>\nthereunder, including without limitation any such regulations or other guidance<br \/>\nthat may be issued after the Effective Date. Notwithstanding any provision of<br \/>\nthe Plan to the contrary, in the event that the Committee determines that any<br \/>\namounts payable hereunder will be taxable to a Participant under Section  409A of<br \/>\nthe Code and related Department of Treasury guidance, prior to payment to such<br \/>\nParticipant of such amount, the Company may (a)  adopt such amendments to the<br \/>\nPlan and Awards and appropriate policies and procedures, including amendments<br \/>\nand policies with retroactive effect, that the Committee determines necessary or<br \/>\nappropriate to preserve the intended tax treatment of the benefits provided by<br \/>\nthe Plan and Awards hereunder and\/or (b)  take such other actions as the<br \/>\nCommittee determines necessary or appropriate to avoid the imposition of an<br \/>\nadditional tax under Section  409A of the Code. 15. <strong>International<br \/>\nParticipants<\/strong>                     With respect to Participants who reside or work<br \/>\noutside the United States of America and who are not (and who are not expected<br \/>\nto be) &#8220;covered employees&#8221; within the meaning of Section 162(m) of the Code, the<br \/>\nCommittee may, in its sole discretion, amend the terms of the Plan or Awards<br \/>\nwith respect to such Participants in order to conform such terms with the<br \/>\nrequirements of local law or to obtain more favorable tax or other treatment for<br \/>\na Participant, the Company or an Affiliate. 16. <strong>Other Benefit<br \/>\nPlans<\/strong>                     All Awards shall constitute a special incentive payment<br \/>\nto the Participant and shall not be taken into account in computing the amount<br \/>\nof salary or compensation of the Participant for the purpose of determining any<br \/>\nbenefits under any pension, retirement, profit-<\/p>\n<hr>\n<\/p>\n<p align=\"right\">15<\/p>\n<p>sharing, bonus, life insurance or other benefit plan of the Company or under<br \/>\nany agreement between the Company and the Participant, unless such plan or<br \/>\nagreement specifically provides otherwise. 17. <strong>Choice of Law<\/strong><br \/>\n                    The Plan shall be governed by and construed in accordance with the<br \/>\nlaws of the State of New York without regard to conflicts of laws, and except as<br \/>\notherwise provided in the pertinent Award agreement, any and all disputes<br \/>\nbetween a Participant and the Company or any Affiliate relating to an Award<br \/>\nshall be brought only in a state or federal court of competent jurisdiction<br \/>\nsitting in Manhattan, New York. 18. <strong>Effectiveness of the Plan<\/strong><br \/>\n                    The Plan shall be effective as of the Effective Date, subject to the<br \/>\napproval of the shareholders of the Company. 19. <strong>Section  409A<\/strong><br \/>\n                    Notwithstanding other provisions of the Plan or any Award agreements<br \/>\nthereunder, no Award shall be granted, deferred, accelerated, extended, paid out<br \/>\nor modified under this Plan in a manner that would result in the imposition of<br \/>\nan additional tax under Section  409A of the Code upon a Participant. In the<br \/>\nevent that it is reasonably determined by the Committee that, as a result of<br \/>\nSection  409A of the Code, payments in respect of any Award under the Plan may<br \/>\nnot be made at the time contemplated by the terms of the Plan or the relevant<br \/>\nAward agreement, as the case may be, without causing the Participant holding<br \/>\nsuch Award to be subject to taxation under Section  409A of the Code, the Company<br \/>\nwill make such payment on the first day that would not result in the Participant<br \/>\nincurring any tax liability under Section  409A of the Code; which, if the<br \/>\nParticipant is a &#8220;specified employee&#8221; within the meaning of the Section  409A,<br \/>\nshall be the first day following the six-month period beginning on the date of<br \/>\nParticipant&#8217;s termination of Employment. The Company shall use commercially<br \/>\nreasonable efforts to implement the provisions of this Section  19 in good faith;<br \/>\nprovided that neither the Company, the Committee nor any of the Company&#8217;s<br \/>\nemployees, directors or representatives shall have any liability to Participants<br \/>\nwith respect to this Section 19.<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[6713],"corporate_contracts_industries":[9510],"corporate_contracts_types":[9539,9546],"class_list":["post-38455","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-aol-time-warner-inc","corporate_contracts_industries-technology__programming","corporate_contracts_types-compensation","corporate_contracts_types-compensation__incentive"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/38455","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=38455"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=38455"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=38455"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=38455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}