<SEC-DOCUMENT>0001206774-12-003645.txt : 20120821
<SEC-HEADER>0001206774-12-003645.hdr.sgml : 20120821
<ACCEPTANCE-DATETIME>20120821140620
ACCESSION NUMBER:		0001206774-12-003645
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20120815
ITEM INFORMATION:		Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20120821
DATE AS OF CHANGE:		20120821

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			QUANTUM CORP /DE/
		CENTRAL INDEX KEY:			0000709283
		STANDARD INDUSTRIAL CLASSIFICATION:	COMPUTER STORAGE DEVICES [3572]
		IRS NUMBER:				942665054
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-13449
		FILM NUMBER:		121047411

	BUSINESS ADDRESS:	
		STREET 1:		1650 TECHNOLOGY DRIVE
		STREET 2:		SUITE 700
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95110
		BUSINESS PHONE:		408 944 4000

	MAIL ADDRESS:	
		STREET 1:		1650 TECHNOLOGY DRIVE
		STREET 2:		SUITE 700
		CITY:			SAN JOSE
		STATE:			CA
		ZIP:			95110
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>quantum_8k.htm
<DESCRIPTION>CURRENT REPORT
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<P align=center><B><FONT face="Times New Roman" size=2>UNITED STATES<BR></FONT></B><B><FONT face="Times New Roman" size=2>SECURITIES AND EXCHANGE COMMISSION</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Washington, DC
20549<BR>_______________</FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>FORM 8-K</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>CURRENT
REPORT<BR>_______________</FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934</FONT></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Date of Report (Date of earliest
event reported): August 15, 2012</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>QUANTUM
CORPORATION<BR></FONT></B><FONT face="Times New Roman" size=2>(Exact name of registrant as
specified in its charter) </FONT></P>
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    <TD noWrap style="text-align: center" width="33%"><B><FONT face="Times New Roman" size=2>Delaware</FONT></B></TD>
    <TD noWrap style="text-align: center" width="33%"><B><FONT face="Times New Roman" size=2>1-13449</FONT></B></TD>
    <TD noWrap style="text-align: center" width="33%"><B><FONT face="Times New Roman" size=2>94-2665054</FONT></B></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap style="text-align: center" width="33%"><FONT face="Times New Roman" size=2>(State or other jurisdiction of
      incorporation)</FONT></TD>
    <TD noWrap style="text-align: center" width="33%"><FONT face="Times New Roman" size=2>(Commission File</FONT></TD>
    <TD noWrap style="text-align: center" width="33%"><FONT face="Times New Roman" size=2>(IRS Employer
  Identification</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="33%"></TD>
    <TD noWrap style="text-align: center" width="33%"><FONT face="Times New Roman" size=2>Number)</FONT></TD>
    <TD noWrap style="text-align: center" width="33%"><FONT face="Times New Roman" size=2>No.)</FONT></TD></TR></TABLE><BR>
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    <TD noWrap style="text-align: center" width="33%"><B><FONT face="Times New Roman" size=2>1650 Technology Drive,
      Suite 800, San Jose,</FONT></B></TD>
    <TD noWrap style="text-align: center" width="33%"><B><FONT face="Times New Roman" size=2>95110</FONT></B></TD>
    <TD noWrap style="text-align: center" width="33%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap style="text-align: center" width="33%"><B><FONT face="Times New Roman" size=2>CA</FONT></B></TD>
    <TD noWrap align=left width="33%"></TD>
    <TD noWrap align=left width="33%">&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap style="text-align: center" width="33%"><FONT face="Times New Roman" size=2>(Address of principal executive
      offices)</FONT></TD>
    <TD noWrap style="text-align: center" width="33%"><FONT face="Times New Roman" size=2>(Zip Code)</FONT></TD>
    <TD noWrap style="text-align: center" width="33%">&nbsp;</TD></TR></TABLE><BR>
<P align=center><B><FONT face="Times New Roman" size=2>408-944-4000<BR></FONT></B><FONT face="Times New Roman" size=2>(Registrant&#146;s telephone number, including area code)
</FONT></P>
<P align=center><B><FONT face="Times New Roman" size=2>Not Applicable<BR></FONT></B><FONT face="Times New Roman" size=2>(Former name or former address, if changed since last report)
</FONT></P>
<P align=left><B><FONT face="Times New Roman" size=2>Check the appropriate box below if the
Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
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    <TD vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>[&nbsp;&nbsp; ]</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD vAlign=top align=left width="97%"><FONT face="Times New Roman" size=2>Written communications pursuant to
      Rule 425 under the Securities Act (17 CFR 230.425)</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="97%">&nbsp;&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>[&nbsp; &nbsp;]</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="97%"><FONT face="Times New Roman" size=2>Soliciting material pursuant to Rule
      14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD></TR>
  <TR>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="97%">&nbsp;&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>[&nbsp; &nbsp;]</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="97%"><FONT face="Times New Roman" size=2>Pre-commencement communications
      pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top noWrap align=left width="1%">&nbsp;</TD>
    <TD vAlign=top align=left width="97%"><FONT face="Times New Roman" size=2>&nbsp;&nbsp; </FONT></TD></TR>
  <TR vAlign=bottom>
    <TD vAlign=top noWrap align=left width="1%"><FONT face="Times New Roman" size=2>[&nbsp; &nbsp;]</FONT></TD>
    <TD vAlign=top noWrap align=left width="1%"></TD>
    <TD vAlign=top align=left width="97%"><FONT face="Times New Roman" size=2>Pre-commencement communications
      pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</FONT></TD></TR></TABLE><BR>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=left><B><FONT face="Times New Roman" size=2>ITEM 5.02 Departure of Directors or
Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers.</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=left><U><FONT face="Times New Roman" size=2>Approval of Plans at Annual
Meeting</FONT></U><FONT face="Times New Roman" size=2> </FONT></P>
<P align=left><FONT face="Times New Roman" size=2>At the annual meeting of stockholders (the
&#147;Annual Meeting&#148;) of Quantum Corporation (the &#147;Company&#148;) held on August 15,
2012, the stockholders of the Company voted on and approved the following: an
amended and restated 1993 Long-Term Incentive Plan, renamed as the 2012
Long-Term Incentive Plan (the &#147;Plan&#148;); an amended and restated Employee Stock
Purchase Plan (the &#147;ESPP&#148;); and an amended and restated Executive Officer
Incentive Plan (the &#147;Incentive Plan&#148;).</FONT></P>
<P align=left><FONT face="Times New Roman" size=2>The terms and conditions of the Plan, the
ESPP and the Incentive Plan are described in the Company&#146;s definitive proxy
statement, filed with the Securities and Exchange Commission on June 28, 2012.
The Plan, the ESPP and the Incentive Plan are filed as Exhibit 10.1, Exhibit
10.2 and Exhibit 10.3 hereto, respectively, and are each incorporated by
reference herein. </FONT></P>
<P align=left><B><FONT face="Times New Roman" size=2>Item 9.01 Financial Statements and
Exhibits.</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
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    <TD noWrap align=left width="1%"><FONT face="Times New Roman" size=2>(c)</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"><FONT><B><FONT face="Times New Roman" size=2>Exhibits</FONT></B></FONT></TD>
    <TD noWrap align=left width="1%"><FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"><FONT size=+0><B><FONT face="Times New Roman" size=2>Description</FONT></B></FONT></TD>
    <TD noWrap align=left width="90%">&nbsp;</TD></TR>
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    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>10.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Quantum Corporation 2012 Long-Term Incentive
    Plan</FONT></TD></TR>
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    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="3%"><FONT face="Times New Roman" size=2>10.2</FONT></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="93%" colSpan=2><FONT face="Times New Roman" size=2>Quantum Corporation
      Employee Stock Purchase Plan</FONT></TD></TR>
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    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>10.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="93%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Quantum Corporation Executive Officer Incentive
      Plan</FONT></TD></TR></TABLE><BR>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><B><FONT face="Times New Roman" size=2>SIGNATURE</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=left><FONT face="Times New Roman" size=2>Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P>
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    <TD noWrap align=left width="100%" colSpan=3><FONT face="Times New Roman" size=2>QUANTUM CORPORATION</FONT></TD></TR>
  <TR>
    <TD width="1%"></TD>
    <TD width="99%" colSpan=2>&nbsp; </TD></TR>
  <TR>
    <TD width="1%"></TD>
    <TD width="99%" colSpan=2>&nbsp; </TD></TR>
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    <TD noWrap align=left width="1%"><FONT size=2 face="Times New Roman">By:&nbsp; </FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="50%"><FONT face="Times New Roman" size=2>/s/
      </FONT><I><FONT face="Times New Roman" size=2>Shawn D. Hall</FONT></I></TD>
    <TD noWrap align=left width="49%">&nbsp;</TD></TR>
  <TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="99%" colSpan=2>&nbsp; </TD></TR>
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    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="99%" colSpan=2><FONT face="Times New Roman" size=2>Shawn D. Hall</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="99%" colSpan=2><FONT face="Times New Roman" size=2>Senior Vice President,
      General</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="99%" colSpan=2><FONT face="Times New Roman" size=2>Counsel and
      Secretary</FONT></TD></TR></TABLE></DIV><BR>
<P align=left><FONT face="Times New Roman" size=2>Dated:&nbsp;&nbsp;&nbsp; August 21, 2012
</FONT></P>
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<P align=center><B><FONT face="Times New Roman" size=2>EXHIBIT INDEX</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
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    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%"><FONT><B><FONT face="Times New Roman" size=2>Exhibits</FONT></B></FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="3%">
      <P><FONT size=+0><B><FONT face="Times New Roman" size=2>Description</FONT></B></FONT></P></TD>
    <TD noWrap align=left width="93%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>10.1</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Quantum Corporation 2012 Long-Term Incentive
    Plan</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="3%"><FONT face="Times New Roman" size=2>10.2</FONT></TD>
    <TD noWrap align=left width="1%">&nbsp;</TD>
    <TD noWrap align=left width="96%" colSpan=2><FONT face="Times New Roman" size=2>Quantum Corporation
      Employee Stock Purchase Plan</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="3%" bgColor=#c0c0c0><FONT face="Times New Roman" size=2>10.3</FONT></TD>
    <TD noWrap align=left width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=left width="96%" bgColor=#c0c0c0 colSpan=2><FONT face="Times New Roman" size=2>Quantum Corporation Executive Officer Incentive
      Plan</FONT></TD></TR></TABLE><BR>
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<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>exhibit10_1.htm
<DESCRIPTION>QUANTUM CORPORATION 2012 LONG-TERM INCENTIVE PLAN
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<P STYLE="text-align: right"><B><FONT face="Times New Roman" size=2>EXHIBIT 10.1</FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>QUANTUM CORPORATION </FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>2012 LONG-TERM INCENTIVE PLAN
</FONT></B></P>
<P align=center><FONT face="Times New Roman" size=2>(August 15, 2012 Amendment and
Restatement) </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>1.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Background and Purposes of
the Plan</FONT></U><FONT face="Times New Roman" size=2>. This amended and restated Plan is
effective as of August 15, 2012, subject to approval by an affirmative vote of
the holders of a majority of Shares that are present in person or by proxy and
entitled to vote at the 2012 Annual Meeting of Stockholders of the Company. The
Plan was formerly known as the 1993 Long-Term Incentive Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The purposes of this Plan are:</FONT></P>

<UL style="FONT-SIZE: 10pt; TEXT-ALIGN: justify"><LI><FONT face="Times New Roman" size=2>to attract and retain the best available
  Employees, Directors and Consultants</FONT> <FONT face="Times New Roman" size=2>for
  positions of substantial responsibility,<BR>&nbsp;</FONT>
  </LI>

<LI><FONT face="Times New Roman" size=2>to provide incentive to Employees, Directors and
  Consultants, and<BR>&nbsp;</FONT>
  </LI>


<LI><FONT face="Times New Roman" size=2>to promote the success of the Company&#146;s
  business.</FONT> </LI></UL>


<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Plan permits the grant of Incentive Stock Options, Nonstatutory Stock
Options, Restricted Stock, Restricted Stock Units, Stock Appreciation Rights,
Performance Units and Performance Shares. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Definitions</FONT></U><FONT face="Times New Roman" size=2>. As used herein, the
following definitions will apply: </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Administrator</FONT></U><FONT face="Times New Roman" size=2>&#148; means the Board or any of its Committees as will be
administering the Plan, in accordance with Section 4 of the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Applicable Laws</FONT></U><FONT face="Times New Roman" size=2>&#148; means the requirements relating to the administration of
equity-based awards under U.S. state corporate laws, U.S. federal and state
securities laws, the Code, any stock exchange or quotation system on which the
Common Stock is listed or quoted and the applicable laws of any foreign country
or jurisdiction where Awards are, or will be, granted under the Plan.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Award</FONT></U><FONT face="Times New Roman" size=2>&#148; means, individually or collectively, a grant under the Plan of Options,
Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance
Units or Performance Shares. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(d)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Award Agreement</FONT></U><FONT face="Times New Roman" size=2>&#148; means the written or electronic agreement setting forth the
terms and provisions applicable to each Award granted under the Plan. The Award
Agreement is subject to the terms and conditions of the Plan. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>1</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>(e)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Award Transfer Program</FONT></U><FONT face="Times New Roman" size=2>&#148; means any program instituted by the Administrator that would
permit Participants the opportunity to transfer for value any outstanding Awards
to a financial institution or other person or entity approved by the
Administrator. A transfer for &#147;value&#148; shall not be deemed to occur under this
Plan where an Award is transferred by a Participant not for consideration and
for bona fide estate planning purposes to a trust or other entity approved by
the Administrator and for the benefit of the Participant&#146;s family. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(f)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Board</FONT></U><FONT face="Times New Roman" size=2>&#148; means the Board of Directors of the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(g)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Change in Control</FONT></U><FONT face="Times New Roman" size=2>&#148; means the occurrence of any of the following events:
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>A
change in the ownership of the Company</FONT><I><FONT face="Times New Roman" size=2>
</FONT></I><FONT face="Times New Roman" size=2>that occurs on the date that any one person,
or more than one person acting as a group (&#147;</FONT><U><FONT face="Times New Roman" size=2>Person</FONT></U><FONT face="Times New Roman" size=2>&#148;), acquires ownership of the
stock of the Company that, together with the stock held by such Person,
constitutes more than fifty percent (50%) of the total voting power of the stock
of the Company; provided, however, that for purposes of this subsection, the
acquisition of additional stock by any one Person, who is considered to own more
than fifty percent (50%) of the total voting power of the stock of the Company
at the time of the acquisition of the additional stock will not be considered a
Change in Control; or</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>A
change in the effective control of the Company which occurs on the date that a
majority of members of the Board is replaced during any twelve (12) month period
by Directors whose appointment or election is not endorsed by a majority of the
members of the Board prior to the date of the appointment or election. For
purposes of this clause (ii), if any Person is considered to be in effective
control of the Company, the acquisition of additional control of the Company by
the same Person will not be considered a Change in Control; or </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>A
change in the ownership of a substantial portion of the Company&#146;s assets which
occurs on the date that any Person acquires (or has acquired during the twelve
(12) month period ending on the date of the most recent acquisition by such
person or persons) assets from the Company that have a total gross fair market
value equal to or more than fifty percent (50%) of the total gross fair market
value of all of the assets of the Company immediately prior to such acquisition
or acquisitions; provided, however, that for purposes of this subsection (iii),
the following will not constitute a change in the ownership of a substantial
portion of the Company&#146;s assets: (A) a transfer to an entity that is controlled
by the Company&#146;s stockholders immediately after the transfer, or (B) a transfer
of assets by the Company to: (1) a stockholder of the Company (immediately
before the asset transfer) in exchange for or with respect to the Company&#146;s
stock, (2) an entity, fifty percent (50%) or more of the total value or voting
power of which is owned, directly or indirectly, by the Company, (3) a Person,
that owns, directly or indirectly, fifty percent (50%) or more of the total
value or voting power of all the outstanding stock of the Company, or (4) an
entity, at least fifty percent (50%) of the total value or voting power of which
is owned, directly or indirectly, by a Person described in this subsection
(iii)(B)(3). For purposes of this subsection (iii), gross fair market value
means the value of the assets of the Company, or the value of the assets being
disposed of, determined without regard to any liabilities associated with such
assets. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>For purposes of this definition, persons will be considered to be acting
as a group if they are owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock, or similar business transaction
with the Company. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>2</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>Notwithstanding the foregoing, a transaction will not be deemed a Change
in Control unless the transaction qualifies as a change in control event within
the meaning of Section 409A. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Further and for the avoidance of doubt, a transaction will not constitute
a Change in Control if: (i) its sole purpose is to change the state of the
Company&#146;s incorporation, or (ii) its sole purpose is to create a holding company
that will be owned in substantially the same proportions by the persons who held
the Company&#146;s securities immediately before such transaction. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(h)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Code</FONT></U><FONT face="Times New Roman" size=2>&#148; means the Internal Revenue Code of 1986, as amended. Reference to a
specific section of the Code or regulation thereunder shall include such section
or regulation, any valid regulation promulgated under such section, and any
comparable provision of any future legislation or regulation amending,
supplementing or superseding such section or regulation. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Committee</FONT></U><FONT face="Times New Roman" size=2>&#148; means a committee of Directors or of other individuals satisfying
Applicable Laws appointed by the Board, or a duly authorized committee of the
Board, in accordance with Section 4 hereof. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(j)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Common Stock</FONT></U><FONT face="Times New Roman" size=2>&#148; means the common stock of the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(k)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Company</FONT></U><FONT face="Times New Roman" size=2>&#148; means Quantum Corporation, a Delaware corporation, or any successor
thereto. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(l)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Consultant</FONT></U><FONT face="Times New Roman" size=2>&#148; means any natural person, including an advisor, engaged by the Company
or a Parent or Subsidiary to render services to such entity in a capacity other
than as an Employee or Director. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(m)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Determination Date</FONT></U><FONT face="Times New Roman" size=2>&#148; means the latest possible date that will not jeopardize the
qualification of an Award granted under the Plan as &#147;performance-based
compensation&#148; under Section 162(m) of the Code. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(n)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Director</FONT></U><FONT face="Times New Roman" size=2>&#148; means a member of the Board. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(o)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Disability</FONT></U><FONT face="Times New Roman" size=2>&#148; means total and permanent disability as defined in Section 22(e)(3) of
the Code, provided that in the case of Awards other than Incentive Stock
Options, the Administrator in its discretion may determine whether a permanent
and total disability exists in accordance with uniform and non-discriminatory
standards adopted by the Administrator from time to time.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(p)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Employee</FONT></U><FONT face="Times New Roman" size=2>&#148; means any person, including Officers and Directors, employed by the
Company or any Parent or Subsidiary of the Company. Neither service as a
Director nor payment of a director&#146;s fee by the Company will be sufficient to
constitute &#147;employment&#148; by the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(q)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Exchange Act</FONT></U><FONT face="Times New Roman" size=2>&#148; means the Securities Exchange Act of 1934, as amended.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(r)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Exchange Program</FONT></U><FONT face="Times New Roman" size=2>&#148; means a program under which (i) outstanding awards are
surrendered or cancelled in exchange for awards of the same type (which may have
higher or </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>3</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<P align=justify><FONT face="Times New Roman" size=2>lower exercise prices and different
terms), awards of a different type, and/or cash, (ii) Participants would have
the opportunity to participate in an Award Transfer Program, and/or (iii) the
exercise price of an outstanding Award is reduced. The Administrator will
determine the terms and conditions of any Exchange Program in its sole
discretion. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Times New Roman" size=2>(s)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Fair Market Value</FONT></U><FONT face="Times New Roman" size=2>&#148; means, as of any date, the value of Common Stock determined
as follows: </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>If the Common Stock is listed
on any established stock exchange or a national market system, including without
limitation the New York Stock Exchange, the NASDAQ Global Select Market, the
NASDAQ Global Market or the NASDAQ Capital Market of The NASDAQ Stock Market,
its Fair Market Value will be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system on
the day of determination, as reported in </FONT><I><FONT face="Times New Roman" size=2>The
Wall Street Journal</FONT></I><FONT face="Times New Roman" size=2> or such other source as
the Administrator deems reliable; </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>If the Common Stock is
regularly quoted by a recognized securities dealer but selling prices are not
reported, the Fair Market Value of a Share will be the mean between the high bid
and low asked prices for the Common Stock on the day of determination (or, if no
bids and asks were reported on that date, as applicable, on the last trading
date such bids and asks were reported), as reported in </FONT><I><FONT face="Times New Roman" size=2>The Wall Street Journal</FONT></I><FONT face="Times New Roman" size=2> or
such other source as the Administrator deems reliable; or </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(iii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>In the absence of an
established market for the Common Stock, the Fair Market Value will be
determined in good faith by the Administrator. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(t)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Fiscal Year</FONT></U><FONT face="Times New Roman" size=2>&#148; means the fiscal year of
the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(u)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Incentive Stock Option</FONT></U><FONT face="Times New Roman" size=2>&#148; means an
Option that by its terms qualifies and is otherwise intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(v)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Nonstatutory Stock Option</FONT></U><FONT face="Times New Roman" size=2>&#148; means an
Option that by its terms does not qualify or is not intended to qualify as an
Incentive Stock Option. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(w)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Officer</FONT></U><FONT face="Times New Roman" size=2>&#148; 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. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(x)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Option</FONT></U><FONT face="Times New Roman" size=2>&#148; means a stock option granted
pursuant to the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(y)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Outside Director</FONT></U><FONT face="Times New Roman" size=2>&#148; means a Director who
is not an Employee or Consultant. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(z)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Parent</FONT></U><FONT face="Times New Roman" size=2>&#148; means a &#147;parent corporation,&#148;
whether now or hereafter existing, as defined in Section 424(e) of the Code.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(aa)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Participant</FONT></U><FONT face="Times New Roman" size=2>&#148; means the holder of an
outstanding Award. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>4</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(bb)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Performance-Based Award</FONT></U><FONT face="Times New Roman" size=2>&#148; means any
Award that is subject to the terms and conditions set forth in Section 10 of the
Plan. All Performance-Based Awards are intended to qualify as qualified
performance-based compensation under Section 162(m) of the Code. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(cc)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Performance Goals</FONT></U><FONT face="Times New Roman" size=2>&#148; means the goal(s)
(or combined goal(s)) determined by the Administrator (in its discretion) to be
applicable to a Participant with respect to an Award. As determined by the
Administrator, the Performance Goals applicable to an Award may provide for a
targeted level or levels of achievement using one or more of the following
measures: (a) cash flow, (b) customer satisfaction, (c) earnings per share, (d)
expense control, (e) margin, (f) market share, (g) operating profit, (h) product
development and/or quality, (i) profit, (j) return on capital, (k) return on
equity, (l) revenue and (m) total shareholder return. Any Performance Goal used
may be measured (1) in absolute terms, (2) in combination with another
Performance Goal or Goals (for example, but not by way of limitation, as a ratio
or matrix), (3) in relative terms (including, but not limited to, as compared to
results for other periods of time, against financial metrics, and/or against
another company, companies or an index or indices), (4) on a per-share or
per-capita basis, (5) against the performance of the Company as a whole or a
specific business unit(s), business segment(s) or product(s) of the Company,
and/or (6) on a pre-tax or after-tax basis. Prior to the Determination Date, the
Committee, in its discretion, will determine whether any significant element(s)
or item(s) will be included in or excluded from the calculation of any
Performance Goal with respect to any Participants (for example, but not by way
of limitation, the effect of mergers and acquisitions). As determined in the
discretion of the Committee prior to the Determination Date, achievement of
Performance Goals for a particular Award may be calculated in accordance with
the Company&#146;s financial statements, prepared in accordance with generally
accepted accounting principles, or as adjusted for certain costs, expenses,
gains and losses to provide non-GAAP measures of operating results. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(dd)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Performance
Period</FONT></U><FONT face="Times New Roman" size=2>&#148; means any Fiscal Year (or period of
four (4) consecutive fiscal quarters) or such longer period as determined by the
Administrator in its sole discretion during which the performance objectives
must be met. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(ee)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Performance Share</FONT></U><FONT face="Times New Roman" size=2>&#148; means an Award
denominated in Shares which may be earned in whole or in part upon attainment of
performance goals or other vesting criteria as the Administrator may determine
pursuant to Section 10 of the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(ff)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Performance Unit</FONT></U><FONT face="Times New Roman" size=2>&#148; means an Award which
may be earned in whole or in part upon attainment of performance goals or other
vesting criteria as the Administrator may determine and which may be settled for
cash, Shares or other securities or a combination of the foregoing pursuant to
Section 10 of the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(gg)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Period of Restriction</FONT></U><FONT face="Times New Roman" size=2>&#148; means the
period during which Restricted Stock Units, Performance Shares, Performance
Units and/or the transfer of Shares of Restricted Stock are subject to
restrictions and therefore, the Shares are subject to a substantial risk of
forfeiture. Such restrictions may be based on the passage of time, continued
service, the achievement of target levels of performance, the achievement of
Performance Goals, or the occurrence of other events as determined by the
Administrator. Notwithstanding any contrary provision of the Plan (but subject
to the following sentence), the Period of Restriction for such an Award shall
expire in full no earlier than (a) the third (3rd) annual anniversary of the
grant date if the vesting period expires solely as the </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>5</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>result of continued employment or
service, and (b) the first (1st) annual anniversary of the grant date if
expiration of the vesting period is conditioned on achievement of performance
objectives and does not expire solely as the result of continued employment or
service. The preceding minimum vesting periods shall not apply with respect to
Awards to Directors, or to an Award if determined by the Administrator (in its
discretion): (a) due to death, Disability, Retirement, or major capital change,
or (b) with respect to Awards other than Options and SARs covering, in the
aggregate, no more than five percent (5%) of the shares reserved for issuance
under the Plan.&nbsp;</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(hh)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Plan</FONT></U><FONT face="Times New Roman" size=2>&#148; means this 2012 Long-Term
Incentive Plan. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Restricted Stock</FONT></U><FONT face="Times New Roman" size=2>&#148; means Shares issued pursuant to a Restricted Stock award
under Section 7 of the Plan, or issued pursuant to the early exercise of an
Option. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(jj)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Restricted Stock Unit</FONT></U><FONT face="Times New Roman" size=2>&#148; means a bookkeeping entry representing an amount equal to
the Fair Market Value of one Share, granted pursuant to Section 8 of the Plan.
Each Restricted Stock Unit represents an unfunded and unsecured obligation of
the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(kk)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Rule 16b-3</FONT></U><FONT face="Times New Roman" size=2>&#148; means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as
in effect when discretion is being exercised with respect to the Plan.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ll)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Section 16(b)</FONT></U><FONT face="Times New Roman" size=2>&#148; means Section 16(b) of the Exchange Act. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(mm)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Section 409A</FONT></U><FONT face="Times New Roman" size=2>&#148; means Section 409A of the Code, and any proposed, temporary
or final Treasury Regulations and Internal Revenue Service guidance thereunder,
as each may be amended from time to time. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(nn)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Service Provider</FONT></U><FONT face="Times New Roman" size=2>&#148; means an Employee, Director or Consultant. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(oo)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Share</FONT></U><FONT face="Times New Roman" size=2>&#148; means a share of the Common Stock, as adjusted in accordance with
Section 13 of the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(pp)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Stock Appreciation
Right</FONT></U><FONT face="Times New Roman" size=2>&#148; or &#147;</FONT><U><FONT face="Times New Roman" size=2>SAR</FONT></U><FONT face="Times New Roman" size=2>&#148; means an Award, granted alone or
in connection with an Option, that pursuant to Section 9 of the Plan is
designated as a Stock Appreciation Right. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(qq)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><U><FONT face="Times New Roman" size=2>Subsidiary</FONT></U><FONT face="Times New Roman" size=2>&#148; means a &#147;subsidiary corporation or company,&#148; whether now or hereafter
existing, as defined in Section 424(f) of the Code. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>3.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Stock
Subject to the Plan</FONT></U><FONT face="Times New Roman" size=2>.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Stock Subject to the Plan</FONT></U><FONT face="Times New Roman" size=2>. Subject to
the provisions of Section 13 of the Plan, the maximum aggregate number of Shares
that may be issued under the Plan shall equal the sum of (a) 13,200,000, (b) any
Shares (not to exceed 2,500,000) that remain available to be issued under the
Company&#146;s 1993 Long-Term Incentive Plan or the Company&#146;s Nonemployee Director
Equity Incentive Plan as of August 14, 2012, (c) any Shares (not to exceed
5,000,000) that, after August 14, 2012, otherwise would have been returned to
the Company&#146;s 1993 Long-Term Incentive Plan or the Company&#146;s Nonemployee
Director Equity Incentive Plan on account of the expiration, cancellation,
repurchase or forfeiture of awards granted under the Company&#146;s 1993 Long-Term
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>6</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>Incentive Plan or Nonemployee Director
Equity Incentive Plan, and (d) any shares (not to exceed 5,000,000 used to pay
the exercise price or purchase of an award or to satisfy the tax withholding
obligations related to an award granted under the Company&#146;s 1993 Long-Term
Incentive Plan or the Company&#146;s Nonemployee Director Equity Incentive Plan on or
before August 14, 2012 that otherwise would have been returned to the Company&#146;s
1993 Long-Term Incentive Plan or the Company&#146;s Nonemployee Director Equity
Incentive Plan after August 14, 2012. The Shares may be authorized, but
unissued, or reacquired Common Stock.&nbsp;</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Lapsed Awards</FONT></U><FONT face="Times New Roman" size=2>. If an Award expires or
becomes unexercisable without having been exercised in full, is surrendered
pursuant to an Exchange Program, or, with respect to Restricted Stock,
Restricted Stock Units, Performance Units or Performance Shares, is forfeited to
or repurchased by the Company due to failure to vest, the unpurchased Shares (or
for Awards other than Options or Stock Appreciation Rights the forfeited or
repurchased Shares), which were subject thereto will become available for future
grant or sale under the Plan (unless the Plan has terminated). Upon exercise of
a Stock Appreciation Right settled in Shares, the gross number of Shares covered
by the portion of the Award so exercised, whether or not actually issued
pursuant to such exercise will cease to be available under the Plan. Shares that
have actually been issued under the Plan under any Award will not be returned to
the Plan and will not become available for future distribution under the Plan;
provided, however, that if Shares issued pursuant to Awards of Restricted Stock,
Restricted Stock Units, Performance Shares or Performance Units are repurchased
by the Company or are forfeited to the Company, such Shares will become
available for future grant under the Plan. Shares used to pay the exercise price
or purchase of an Award or to satisfy the tax withholding obligations related to
an Award will become available for future grant or sale under the Plan. To the
extent an Award under the Plan is paid out in cash rather than Shares, such cash
payment will not result in reducing the number of Shares available for issuance
under the Plan. Notwithstanding anything in the Plan or any Award Agreement to
the contrary, Shares actually issued pursuant to Awards transferred under any
Award Transfer Program will not be again available for grant under the Plan.
Notwithstanding the foregoing and, subject to adjustment as provided in Section
13 of the Plan, the maximum number of Shares that may be issued upon the
exercise of Incentive Stock Options will equal the aggregate Share number stated
in Section 3(a) of the Plan, plus, to the extent allowable under Section 422 of
the Code and the Treasury Regulations promulgated thereunder, any Shares that
become available for issuance under the Plan pursuant to this Section
3(b).</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Share Reserve</FONT></U><FONT face="Times New Roman" size=2>. The Company, during the
term of this Plan, will at all times reserve and keep available such number of
Shares as will be sufficient to satisfy the requirements of the Plan.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>4.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Administration of the Plan</FONT></U><FONT face="Times New Roman" size=2>.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Procedure</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Multiple Administrative Bodies</FONT></U><FONT face="Times New Roman" size=2>.
Different Committees with respect to different groups of Service Providers may
administer the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Section 162(m)</FONT></U><FONT face="Times New Roman" size=2>. To the extent that the
Administrator determines it to be desirable to qualify Awards granted hereunder
as &#147;performance-based compensation&#148; within the </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>7</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>meaning of Section 162(m) of the Code,
the Plan will be administered by a Committee of two (2) or more &#147;outside
directors&#148; within the meaning of Section 162(m) of the Code.&nbsp;</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="Times New Roman" size=2>(iii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Rule 16b-3</FONT></U><FONT face="Times New Roman" size=2>. To the extent
desirable to qualify transactions hereunder as exempt under Rule 16b-3, the
transactions contemplated hereunder will be structured to satisfy the
requirements for exemption under Rule 16b-3. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iv)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Other Administration</FONT></U><FONT face="Times New Roman" size=2>. Other than as
provided above, the Plan will be administered by (A) the Board or (B) a
Committee, which committee will be constituted to satisfy Applicable
Laws.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(v)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Delegation of Authority for Day-to-Day Administration</FONT></U><FONT face="Times New Roman" size=2>. Except to the extent prohibited by Applicable Law, the
Administrator may delegate to one or more individuals the day-to-day
administration of the Plan and any of the functions assigned to it in this Plan.
Such delegation may be revoked at any time. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Powers of the Administrator</FONT></U><FONT face="Times New Roman" size=2>. Subject
to the provisions of the Plan, and in the case of a Committee, subject to the
specific duties delegated by the Board to such Committee, the Administrator will
have the authority, in its discretion: </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
determine the Fair Market Value; </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
select the Service Providers to whom Awards may be granted hereunder;
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
determine the number of Shares to be covered by each Award granted hereunder;
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iv)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
approve forms of Award Agreements for use under the Plan; </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(v)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
determine the terms and conditions, not inconsistent with the terms of the Plan,
of any Award granted hereunder. Such terms and conditions include, but are not
limited to, the exercise price, the time or times when Awards may be exercised
(which may be based on performance criteria), any vesting acceleration or waiver
of forfeiture restrictions, and any restriction, limitation or requirement
regarding any Award or the Shares covered thereby (for example, but not by way
of limitation, any holding period or ownership requirement), based in each case
on such factors as the Administrator (in its discretion) shall determine;
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(vi)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
determine the terms and conditions of any Exchange Program and/or Award Transfer
Program and with the consent of the Company&#146;s stockholders, to institute an
Exchange Program and/or Award Transfer Program (provided that the Administrator
may not implement an Exchange Program and/or Award Transfer Program without
first receiving the consent of the Company&#146;s stockholders); </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(vii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
construe and interpret the terms of the Plan and Awards granted pursuant to the
Plan;</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>8</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(viii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
prescribe, amend and rescind rules and regulations relating to the Plan,
including rules and regulations relating to sub-plans established for the
purpose of satisfying or facilitating compliance with applicable foreign laws
and/or for qualifying for favorable tax treatment under applicable foreign laws;
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ix)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
modify or amend each Award (subject to Section 18 of the Plan), including but
not limited to the discretionary authority to extend the post-termination
exercisability period of Awards and to extend the maximum term of an Option
(subject to Section 6(b) of the Plan regarding Incentive Stock Options);
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(x)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
allow Participants to satisfy withholding tax obligations in such manner as
prescribed in Section 14 of the Plan; </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xi)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>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 pursuant
to such procedures as the Administrator may determine; </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
allow a Participant, in compliance with all Applicable Laws including, but not
limited to, Section 409A, to defer the receipt of the payment of cash or the
delivery of Shares that would otherwise be due to such Participant under an
Award; and </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xiii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
determine whether Awards will be settled in Shares, cash or in any combination
thereof; </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xiv)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>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 issued as a result of or under an
Award, including without limitation, (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;</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xv)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
require that the Participant&#146;s rights, payments and benefits with respect to an
Award (including amounts received upon the settlement or exercise of an Award)
shall be subject to reduction, cancellation, forfeiture or recoupment upon the
occurrence of certain specified events, in addition to any otherwise applicable
vesting or performance conditions of an Award, as may be specified in an Award
Agreement at the time of the Award, or later if (A) Applicable Laws require the
Company to adopt a policy requiring such reduction, cancellation, forfeiture or
recoupment, or (B) pursuant to an amendment of an outstanding Award; and
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(xvi)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>to
make all other determinations deemed necessary or advisable for administering
the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Effect of Administrator&#146;s Decision</FONT></U><FONT face="Times New Roman" size=2>.
The Administrator&#146;s decisions, determinations and interpretations will be final
and binding on all Participants and any other holders of Awards and shall be
given the maximum deference permitted by law. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>5.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Eligibility</FONT></U><FONT face="Times New Roman" size=2>. Nonstatutory Stock
Options, Stock Appreciation Rights, Restricted Stock, </FONT><FONT face="Times New Roman" size=2>Restricted Stock Units, Performance Shares and Performance Units may be
granted to Service Providers. Incentive Stock Options may be granted only to
Employees. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>9</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>6.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Stock
Options</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Limitations</FONT></U><FONT face="Times New Roman" size=2>.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>Each
Option will be designated in the Award Agreement as either an Incentive Stock
Option or a Nonstatutory Stock Option. However, notwithstanding such
designation, to the extent that the aggregate Fair Market Value of the Shares
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 Parent or Subsidiary) exceeds one hundred thousand dollars ($100,000), such
Options will be treated as Nonstatutory Stock Options. For purposes of this
Section 6(a), Incentive Stock Options will be taken into account in the order in
which they were granted. The Fair Market Value of the Shares will be determined
as of the time the Option with respect to such Shares is granted. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>The
Administrator will have complete discretion to determine the number of Shares
subject to an Option granted to any Participant, provided that, subject to the
provisions of Section 13, during any Fiscal Year, the number of Shares covered
by Options granted to any one Service Provider will not exceed more than two
million five hundred thousand (2,500,000) Shares; provided, however, that in
connection with his or her initial service, a Service Provider may be granted
Options covering up to an additional two million five hundred thousand
(2,500,000) Shares in the Fiscal Year in which his or her service as a Service
Provider first commences. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Term
of Option</FONT></U><FONT face="Times New Roman" size=2>. The term of each Option will be
stated in the Award Agreement; provided, however, that the term will be no more
than seven (7) years from the date of grant hereof. In the case of an Incentive
Stock Option, the term will be ten (10) years from the date of grant or such
shorter term as may be provided in the Award Agreement. Moreover, in the case of
an Incentive Stock Option granted to a Participant who, at the time the
Incentive Stock Option is granted, owns stock representing more than ten percent
(10%) of the total combined voting power of all classes of stock of the Company
or any Parent or Subsidiary, the term of the Incentive Stock Option will be five
(5) years from the date of grant or such shorter term as may be provided in the
Award Agreement. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Option Exercise Price and Consideration</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Exercise Price</FONT></U><FONT face="Times New Roman" size=2>. The per share exercise
price for the Shares to be issued pursuant to exercise of an Option will be
determined by the Administrator, subject to the following: </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(1)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>In the
case of an Incentive Stock Option </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(A) granted to an Employee who, at the time the Incentive Stock Option is
granted, owns stock representing more than ten percent (10%) of the voting power
of all classes of stock of the Company or any Parent or Subsidiary, the per
Share exercise price will be no less than one hundred ten percent (110%) of the
Fair Market Value per Share on the date of grant. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>10</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(B) granted to any Employee other than an Employee described in paragraph
(A) immediately above, the per Share exercise price will be no less than one
hundred percent (100%) of the Fair Market Value per Share on the date of grant.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(2)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>In the
case of a Nonstatutory Stock Option, the per Share exercise price will be no
less than one hundred percent (100%) of the Fair Market Value per Share on the
date of grant. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(3)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>Notwithstanding the foregoing, Options may be granted with a per Share
exercise price of less than one hundred percent (100%) of the Fair Market Value
per Share on the date of grant pursuant to a transaction described in, and in a
manner consistent with, Section 424(a) of the Code. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Waiting Period and Exercise Dates</FONT></U><FONT face="Times New Roman" size=2>. At
the time an Option is granted, the Administrator will fix the period within
which the Option may be exercised and will determine any conditions that must be
satisfied before the Option may be exercised. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Form of Consideration</FONT></U><FONT face="Times New Roman" size=2>. The
Administrator will determine the acceptable form of consideration for exercising
an Option, including the method of payment. In the case of an Incentive Stock
Option, the Administrator will determine the acceptable form of consideration at
the time of grant. Such consideration may consist entirely of, without
limitation: (1) cash; (2) check; (3) promissory note, to the extent permitted by
Applicable Laws, (4) other Shares, provided that such Shares have a Fair Market
Value on the date of surrender equal to the aggregate exercise price of the
Shares as to which such Option will be exercised and provided that accepting
such Shares will not result in any adverse accounting consequences to the
Company, as the Administrator determines in its sole discretion; (5)
consideration received by the Company under a cashless exercise program (whether
through a broker, net exercise program or otherwise) implemented by the Company
in connection with the Plan; (6) by reduction in the amount of any Company
liability to the Participant, (7) by net exercise; (8) such other consideration
and method of payment for the issuance of Shares to the extent permitted by
Applicable Laws; or (9) any combination of the foregoing methods of payment.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(d)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Exercise of Option</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Procedure for Exercise; Rights as a Stockholder</FONT></U><FONT face="Times New Roman" size=2>. Any Option granted hereunder will be exercisable according
to the terms of the Plan and at such times and under such conditions as
determined by the Administrator and set forth in the Award Agreement. An Option
may not be exercised for a fraction of a Share. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>An Option will be deemed exercised when the Company receives: (i) a
notice of exercise (in such form as the Administrator may specify from time to
time) from the person entitled to exercise the Option, and (ii) full payment for
the Shares with respect to which the Option is exercised (together with
applicable withholding taxes). Full payment may consist of any consideration and
method of payment authorized by the Administrator and permitted by the Award
Agreement and the Plan. Shares 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 or her spouse. Until the Shares are issued (as
evidenced by the appropriate entry on the books of the Company or of </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>11</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a
stockholder will exist with respect to the Shares subject to an Option,
notwithstanding the exercise of the Option. The Company will issue (or cause to
be issued) such Shares promptly after the Option is exercised. No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the Shares are issued, except as provided in Section 13 of the
Plan.&nbsp;</FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT face="Times New Roman" size=2>Exercising an Option in any manner will decrease the
number of Shares thereafter available, both for purposes of the Plan and for
sale under the Option, by the number of Shares as to which the Option is
exercised. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Termination of Relationship as a Service Provider</FONT></U><FONT face="Times New Roman" size=2>. If a Participant ceases to be a Service Provider, other than
upon the Participant&#146;s termination as the result of the Participant&#146;s death or
Disability, the Participant may exercise his or her Option within such period of
time as is specified in the Award Agreement (but in no event later than the
expiration of the term of such Option as set forth in the Award Agreement). In
the absence of a specified time in the Award Agreement, the Option will remain
exercisable for three (3) months following the Participant&#146;s termination. Unless
otherwise provided by the Administrator, if on the date of termination the
Participant is not vested as to his or her entire Option, the Shares covered by
the unvested portion of the Option will be forfeited and revert to the Plan. If
after termination the Participant does not exercise his or her Option within the
time specified by the Award Agreement, this Plan or the Administrator, the
Option will terminate, and the Shares covered by such Option will revert to the
Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Disability of Participant</FONT></U><FONT face="Times New Roman" size=2>. If a
Participant ceases to be a Service Provider as a result of the Participant&#146;s
Disability, the Participant may exercise his or her Option within such period of
time as is specified in the Award Agreement (but in no event later than the
expiration of the term of such Option as set forth in the Award Agreement). In
the absence of a specified time in the Award Agreement, the Option will remain
exercisable for twelve (12) months following the Participant&#146;s termination.
Unless otherwise provided by the Administrator, if on the date of termination
the Participant is not vested as to his or her entire Option, the Shares covered
by the unvested portion of the Option will be forfeited and revert to the Plan.
If after termination the Participant does not exercise his or her Option within
the time specified herein, the Option will terminate, and the Shares covered by
such Option will revert to the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(iv)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Death of Participant</FONT></U><FONT face="Times New Roman" size=2>. If a Participant
dies while a Service Provider, the Option may be exercised following the
Participant&#146;s death within such period of time as is specified in the Award
Agreement (but in no event may the option be exercised later than the expiration
of the term of such Option as set forth in the Award Agreement), by the
Participant&#146;s designated beneficiary, provided such designation has been
permitted by the Administrator and provided a beneficiary has been designated
prior to Participant&#146;s death in a form acceptable to the Administrator. If a
beneficiary designation has not been permitted by the Administrator or if no
beneficiary has been designated by the Participant, then such Option may be
exercised by the personal representative of the Participant&#146;s estate or by the
person(s) to whom the Option is transferred pursuant to the Participant&#146;s will
or in accordance with the laws of descent and distribution. In the absence of a
specified time in the Award Agreement, the Option will remain exercisable for
twelve (12) months following Participant&#146;s death. Unless otherwise provided by
the Administrator, if at the time of death Participant is not vested as to his
or her entire Option, the </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>12</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>Shares covered by the unvested portion
of the Option will be forfeited and immediately revert to the Plan. If the
Option is not so exercised within the time specified herein, the Option will
terminate, and the Shares covered by such Option will revert to the
Plan.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>7.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Restricted Stock</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Grant of Restricted Stock</FONT></U><FONT face="Times New Roman" size=2>. Subject to
the terms and provisions of the Plan, the Administrator, at any time and from
time to time, may grant Shares of Restricted Stock to Service Providers in such
amounts as the Administrator, in its sole discretion, will determine; provided,
that, subject to the provisions of Section 13 of the Plan, during any Fiscal
Year, the number of Shares of Restricted Stock granted to any one Service
Provider will not exceed more than one million (1,000,000) Shares; provided,
however, that in connection with his or her initial service, a Service Provider
may be granted an additional one million (1,000,000) Shares of Restricted Stock
in the Fiscal Year in which his or her service as a Service Provider first
commences.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Restricted Stock Agreement</FONT></U><FONT face="Times New Roman" size=2>. Each Award
of Restricted Stock will be evidenced by an Award Agreement that will specify
the Period of Restriction, the number of Shares granted, and such other terms
and conditions as the Administrator, in its sole discretion, will determine.
Unless the Administrator determines otherwise, the Company as escrow agent will
hold Shares of Restricted Stock until the restrictions on such Shares have
lapsed. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Transferability</FONT></U><FONT face="Times New Roman" size=2>. Except as provided in
this Section 7 or the Award Agreement, Shares of Restricted Stock may not be
sold, transferred, pledged, assigned, or otherwise alienated or hypothecated
until the end of the applicable Period of Restriction. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(d)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Other Restrictions</FONT></U><FONT face="Times New Roman" size=2>. The Administrator,
in its sole discretion, may impose such other restrictions on Shares of
Restricted Stock as it may deem advisable or appropriate. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>General Restrictions</FONT></U><FONT face="Times New Roman" size=2>. The
Administrator may set restrictions based upon continued employment or service,
the achievement of specific performance objectives (Company-wide, departmental,
divisional, business unit, or individual), applicable federal or state
securities laws, or any other basis determined by the Administrator in its
discretion. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Section 162(m) Performance Restrictions</FONT></U><FONT face="Times New Roman" size=2>. For purposes of qualifying grants of Restricted Stock as
&#147;performance-based compensation&#148; under Section 162(m) of the Code, the
Administrator, in its discretion, may set restrictions based upon the
achievement of Performance Goals. The Performance Goals shall be set by the
Administrator on or before the Determination Date. In granting Restricted Stock
which is intended to qualify under Section 162(m) of the Code, the Administrator
shall follow any procedures determined by it from time to time to be necessary
or appropriate to ensure qualification of the Restricted Stock under Section
162(m) of the Code (e.g., in determining the Performance Goals and certifying in
writing whether the applicable Performance Goals have been achieved after the
completion of the applicable Performance Period). </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(e)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Removal of Restrictions</FONT></U><FONT face="Times New Roman" size=2>. Except as
otherwise provided in this Section 7, Shares of Restricted Stock covered by each
Restricted Stock grant made under the Plan will be released from escrow as soon
as practicable after the last day of the Period of Restriction or at such other
time as the Administrator may determine. The Administrator, in its discretion,
may accelerate the time at which any restrictions will lapse or be
removed.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>13</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>(f)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Voting Rights</FONT></U><FONT face="Times New Roman" size=2>. During the Period of
Restriction, Service Providers holding Shares of Restricted Stock granted
hereunder may exercise full voting rights with respect to those Shares, unless
the Administrator determines otherwise. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(g)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Dividends and Other Distributions</FONT></U><FONT face="Times New Roman" size=2>.
During the Period of Restriction, Service Providers holding Shares of Restricted
Stock will be entitled to receive all dividends and other distributions paid
with respect to such Shares, unless the Administrator provides otherwise. If any
such dividends or distributions are paid in Shares, the Shares will be subject
to the same restrictions on transferability and forfeitability as the Shares of
Restricted Stock with respect to which they were paid. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(h)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Return of Restricted Stock to Company</FONT></U><FONT face="Times New Roman" size=2>.
On the date set forth in the Award Agreement, the Restricted Stock for which
restrictions have not lapsed will revert to the Company and, subject to Section
3, again will become available for grant under the Plan. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>8.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Restricted Stock
Units</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Grant</FONT></U><FONT face="Times New Roman" size=2>. Subject to the terms and
provisions of the Plan, the Administrator, at any time and from time to time,
may grant Restricted Stock Units to Service Providers in such amounts as the
Administrator, in its sole discretion, will determine; provided, that subject to
the provisions of Section 13 of the Plan, during any Fiscal Year, the number of
Restricted Stock Units granted to any one Service Provider will not exceed more
than one million (1,000,000); provided, however, that in connection with his or
her initial service, a Service Provider may be granted an additional one million
(1,000,000) Restricted Stock Units in the Fiscal Year in which his or her
service as a Service Provider first commences. After the Administrator
determines that it will grant Restricted Stock Units under the Plan, it will
advise the Participant in an Award Agreement of the terms, conditions, and
restrictions related to the grant, including the number of Restricted Stock
Units.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Vesting Criteria and Other Terms</FONT></U><FONT face="Times New Roman" size=2>. The
Administrator will set vesting criteria in its discretion, which, depending on
the extent to which the criteria are met, will determine the number of
Restricted Stock Units that will be paid out to the Participant.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>General Restrictions</FONT></U><FONT face="Times New Roman" size=2>. The
Administrator may set vesting criteria based upon continued employment or
service, the achievement of specific performance objectives (Company-wide,
departmental, divisional, business unit, or individual goals (including, but not
limited to, continued employment or service), applicable federal or state
securities laws or any other basis determined by the Administrator in its
discretion.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Section 162(m) Performance Restrictions</FONT></U><FONT face="Times New Roman" size=2>. For purposes of qualifying grants of Restricted Stock Units as
&#147;performance-based compensation&#148; under Section 162(m) of the Code, the
Administrator, in its discretion, may set restrictions based upon the
achievement of Performance Goals. The Performance Goals shall be set by the
Administrator on or before the Determination Date. In granting Restricted Stock
Units that are intended to qualify under Section 162(m) of the Code, the
Administrator shall follow any procedures determined by it from time to time to
be necessary or appropriate to ensure qualification of the Restricted Stock
Units under Section 162(m) of the Code (e.g., in determining the Performance
Goals and certifying in </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>14</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>writing whether the applicable
Performance Goals have been achieved after the completion of the applicable
Performance Period). </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Earning Restricted Stock Units</FONT></U><FONT face="Times New Roman" size=2>. Upon
meeting the applicable vesting criteria, the Participant will be entitled to
receive a payout as determined by the Administrator. Notwithstanding the
foregoing, at any time after the grant of Restricted Stock Units, the
Administrator, in its sole discretion, may reduce or waive any vesting criteria
that must be met to receive a payout. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(d)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Form
and Timing of Payment</FONT></U><FONT face="Times New Roman" size=2>. Payment of earned
Restricted Stock Units will be made as soon as practicable after the date(s)
determined by the Administrator and set forth in the Award Agreement; provided,
however, that the timing of payment shall in all cases comply with Section 409A
to the extent applicable to the Award. The Administrator, in its sole
discretion, may only settle earned Restricted Stock Units in cash, Shares, or a
combination of both. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(e)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Cancellation</FONT></U><FONT face="Times New Roman" size=2>. On the date set forth in
the Award Agreement, all unearned Restricted Stock Units will be forfeited to
the Company and, subject to Section 3 of the Plan, again will become available
for grant under the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>9.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Stock Appreciation Rights</FONT></U><FONT face="Times New Roman" size=2>.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Grant of Stock Appreciation Rights</FONT></U><FONT face="Times New Roman" size=2>.
Subject to the terms and conditions of the Plan, a Stock Appreciation Right may
be granted to Service Providers at any time and from time to time as will be
determined by the Administrator, in its sole discretion.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Number of Shares</FONT></U><FONT face="Times New Roman" size=2>. The Administrator
will have complete discretion to determine the number of Stock Appreciation
Rights granted to any Service Provider, provided that, subject to the provisions
of Section 13 of the Plan, during any Fiscal Year, the number of Shares covered
by Stock Appreciation Rights granted to any one Service Provider will not exceed
more than two million five hundred thousand (2,500,000) Shares; provided,
however, that in connection with his or her initial service, a Service Provider
may be granted SARs covering up to an additional two million five hundred
thousand (2,500,000) Shares in the Fiscal Year in which his or her service as a
Service Provider first commences. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Exercise Price and Other Terms</FONT></U><FONT face="Times New Roman" size=2>. The
per share exercise price for the Shares to be issued pursuant to exercise of a
Stock Appreciation Right will be determined by the Administrator and will be no
less than one hundred percent (100%) of the Fair Market Value per Share on the
date of grant. Otherwise, the Administrator, subject to the provisions of the
Plan, will have complete discretion to determine the terms and conditions of
Stock Appreciation Rights granted under the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(d)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Stock Appreciation Right Agreement</FONT></U><FONT face="Times New Roman" size=2>.
Each Stock Appreciation Right grant will be evidenced by an Award Agreement that
will specify the exercise price, the term of the Stock Appreciation Right, the
conditions of exercise, and such other terms and conditions as the
Administrator, in its sole discretion, will determine. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(e)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Expiration of Stock Appreciation Rights</FONT></U><FONT face="Times New Roman" size=2>. A Stock Appreciation Right granted under the Plan will expire upon the
date determined by the Administrator, in its sole discretion, and </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>15</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>set forth in the Award Agreement.
Notwithstanding the foregoing, the rules of Section 6(b) of the Plan relating to
the maximum term and Section 6(d) of the Plan relating to exercise also will
apply to Stock Appreciation Rights. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(f)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Payment of Stock Appreciation Right Amount</FONT></U><FONT face="Times New Roman" size=2>. Upon exercise of a Stock Appreciation Right, a Participant will be
entitled to receive payment from the Company in an amount determined by
multiplying: </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>The
difference between the Fair Market Value of a Share on the date of exercise over
the exercise price; times </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>The
number of Shares with respect to which the Stock Appreciation Right is
exercised. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>At the discretion of the Administrator, the payment upon Stock
Appreciation Right exercise may be in cash, in Shares of equivalent value, or in
some combination thereof. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>10.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Performance Units and Performance Shares</FONT></U><FONT face="Times New Roman" size=2>.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Grant of Performance Units/Shares</FONT></U><FONT face="Times New Roman" size=2>.
Subject to the terms and conditions of the Plan, Performance Units and
Performance Shares may be granted to Service Providers at any time and from time
to time, as will be determined by the Administrator, in its sole discretion. The
Administrator will have complete discretion in determining the number of
Performance Units and Performance Shares granted to each Participant; provided,
that subject to the provisions of Section 13 of the Plan, during any Fiscal
Year, (a) the number of Performance Shares granted to any one Service Provider
will not exceed more than one million (1,000,000); provided, however, that in
connection with his or her initial service, a Service Provider may be granted an
additional one million (1,000,000) Performance Shares in the Fiscal Year in
which his or her service as a Service Provider first commences, and (b) no
Service Provider will receive Performance Units having an initial value greater
than ten million dollars ($10,000,000); provided, however, that in connection
with his or her initial service, a Service Provider may be granted additional
Performance Units in the Fiscal Year in which his or her service as a Service
Provider first commences having an initial value no greater than ten million
dollars ($10,000,000). </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Value of Performance Units/Shares</FONT></U><FONT face="Times New Roman" size=2>.
Each Performance Unit will have an initial value that is established by the
Administrator on or before the date of grant. Each Performance Share will have
an initial value equal to the Fair Market Value of a Share on the date of grant.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Performance Objectives and Other Terms</FONT></U><FONT face="Times New Roman" size=2>. The Administrator will set performance objectives or other vesting
provisions (including, without limitation, continued status as a Service
Provider) in its discretion which, depending on the extent to which they are
met, will determine the number or value of Performance Units/Shares that will be
paid out to the Service Providers. The time period during which the performance
objectives or other vesting provisions must be met will be called the
&#147;Performance Period.&#148; Each Award of Performance Units/Shares will be evidenced
by an Award Agreement that will specify the Performance Period, and such other
terms and conditions as the Administrator, in its sole discretion, will
determine.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>16</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(i)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>General Restrictions</FONT></U><FONT face="Times New Roman" size=2>. The
Administrator may set vesting criteria based upon continued employment or
service, the achievement of specific performance objectives (Company-wide,
departmental, divisional, business unit, or individual goals (including, but not
limited to, continued employment or service), applicable federal or state
securities laws or any other basis determined by the Administrator in its
discretion.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>(ii)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Section 162(m) Performance Restrictions</FONT></U><FONT face="Times New Roman" size=2>. For purposes of qualifying grants of Performance Shares and/or
Performance Units as &#147;performance-based compensation&#148; under Section 162(m) of
the Code, the Administrator, in its discretion, may set restrictions based upon
the achievement of Performance Goals. The Performance Goals shall be set by the
Administrator on or before the Determination Date. In granting Performance
Shares and/or Performance Units that are intended to qualify under Section
162(m) of the Code, the Administrator shall follow any procedures determined by
it from time to time to be necessary or appropriate to ensure qualification of
the Performance Shares and/or Performance Units under Section 162(m) of the Code
(e.g., in determining the Performance Goals and certifying in writing whether
the applicable Performance Goals have been achieved after the completion of the
applicable Performance Period). </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(d)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Earning of Performance
Units/Shares</FONT></U><FONT face="Times New Roman" size=2>. After the applicable
Performance Period has ended, the holder of Performance Units/Shares will be
entitled to receive a payout of the number of Performance Units/Shares earned by
the Participant over the Performance Period, to be determined as a function of
the extent to which the corresponding performance objectives or other vesting
provisions have been achieved. After the grant of a Performance Unit/Share, the
Administrator, in its sole discretion, may reduce or waive any performance
objectives or other vesting provisions for such Performance Unit/Share.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(e)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Form and Timing of Payment
of Performance Units/Shares</FONT></U><FONT face="Times New Roman" size=2>. Payment of
earned Performance Units/Shares will be made as soon as practicable after the
expiration of the applicable Performance Period or as otherwise determined by
the Administrator; provided, however, that the timing of payment shall in all
cases comply with Section 409A to the extent applicable to the Award. The
Administrator, in its sole discretion, may pay earned Performance Units/Shares
in the form of cash, in Shares (which have an aggregate Fair Market Value equal
to the value of the earned Performance Units/Shares at the close of the
applicable Performance Period) or in a combination thereof. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(f)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Cancellation of Performance
Units/Shares</FONT></U><FONT face="Times New Roman" size=2>. On the date set forth in the
Award Agreement, all unearned or unvested Performance Units/Shares will be
forfeited to the Company, and, subject to Section 3 of the Plan, again will be
available for grant under the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>11.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Leaves of Absence/Transfer Between
Locations</FONT></U><FONT face="Times New Roman" size=2>. If determined by the Administrator
(in its discretion and on a case-by-case basis) or as otherwise required by
Applicable Law, vesting of Awards granted hereunder will be suspended during any
unpaid leave of absence, such that vesting shall cease on the first day of any
unpaid leave of absence and shall only recommence upon return to active service.
A Participant will not cease to be an Employee in the case of (i) any leave of
absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, or any Subsidiary. For purposes of
Incentive Stock Options, no such leave may exceed three (3) months, unless
reemployment upon expiration of such leave is guaranteed by </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>17</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>statute or contract. If reemployment
upon expiration of a leave of absence approved by the Company is not so
guaranteed, then six (6) months following the first (1<SUP>st</SUP>) day of such
leave any Incentive Stock Option held by the Participant will cease to be
treated as an Incentive Stock Option and will be treated for tax purposes as a
Nonstatutory Stock Option. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>12.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Transferability of Awards</FONT></U><FONT face="Times New Roman" size=2>. Unless determined otherwise by the Administrator, an Award
may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in
any manner other than by will or by the laws of descent or distribution and may
be exercised, during the lifetime of the Participant, only by the Participant.
If the Administrator makes an Award transferable, such Award will contain such
additional terms and conditions as the Administrator deems appropriate.
Notwithstanding anything to the contrary in the Plan, in no event will the
Administrator have the right to determine and implement the terms and conditions
of any Award Transfer Program without stockholder approval. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>13.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Adjustments; Dissolution or Liquidation;
Merger or Change in Control</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Adjustments</FONT></U><FONT face="Times New Roman" size=2>. In the event that any dividend or other distribution
(whether in the form of cash, Shares, other securities, or other property),
recapitalization, stock split, reverse stock split, reorganization, merger,
consolidation, split-up, spin-off, combination, repurchase, or exchange of
Shares or other securities of the Company, or other change in the corporate
structure of the Company affecting the Shares occurs, the Administrator, in
order to prevent diminution or enlargement of the benefits or potential benefits
intended to be made available under the Plan, will adjust the number and class
of Shares that may be delivered under the Plan and/or the number, class, and
price of Shares covered by each outstanding Award, the numerical Share limits in
Section 3 of the Plan and the per person numerical Share limits in Sections
6(a), 7(a), 8(a), 9(b) and 10(a) of the Plan. Notwithstanding the preceding, the
number of Shares subject to any Award always shall be a whole number.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Dissolution or
Liquidation</FONT></U><FONT face="Times New Roman" size=2>. 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. To the extent it has not been previously exercised (with respect to
an Option or SAR) or vested (with respect to an Award other than an Option or
SAR), an Award will terminate immediately prior to the consummation of such
proposed action. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Change in
Control</FONT></U><FONT face="Times New Roman" size=2>. In the event of a merger of the
Company with or into another corporation or other entity or a Change in Control,
each outstanding Award will be treated as the Administrator determines,
including, without limitation, that each Award be assumed or an equivalent
option or right substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation. The Administrator will not be required
to treat all Awards similarly in the transaction. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In the
event that the successor corporation does not assume or substitute for the
Award, the Participant will fully vest in and have the right to exercise all of
his or her outstanding Options and Stock Appreciation Rights, including Shares
as to which such Awards would not otherwise be vested or exercisable, all
restrictions on Restricted Stock and Restricted Stock Units will lapse, and,
with respect to Awards with performance-based vesting, all performance goals or
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>18</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>other vesting criteria will be deemed
achieved at one hundred percent (100%) of target levels and all other terms and
conditions met. In addition, if an Option or Stock Appreciation Right is not
assumed or substituted in the event of a Change in Control, the Administrator
will notify the Participant in writing or electronically that the Option or
Stock Appreciation Right will be exercisable for a period of time determined by
the Administrator in its sole discretion, and the Option or Stock Appreciation
Right will terminate upon the expiration of such period. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>For
the purposes of this subsection (c), an Award will be considered assumed if,
following the Change in Control, the Award confers the right to purchase or
receive, for each Share subject to the Award immediately prior to the Change in
Control, the consideration (whether stock, cash, or other securities or
property) received in the Change in Control by holders of Common Stock for each
Share held on the effective date of the transaction (and if holders were offered
a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding Shares); provided, however, that if such
consideration received in the Change in Control is not solely common stock of
the successor corporation or its Parent, the Administrator may, with the consent
of the successor corporation, provide for the consideration to be received upon
the exercise of an Option or Stock Appreciation Right or upon the payout of a
Restricted Stock Unit, Performance Unit or Performance Share, for each Share
subject to such Award, to be solely common stock of the successor corporation or
its Parent equal in fair market value to the per share consideration received by
holders of Common Stock in the Change in Control. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notwithstanding
anything in this Section 13(c) to the contrary, an Award that vests, is earned
or paid-out upon the satisfaction of one or more performance goals will not be
considered assumed if the Company or its successor modifies any of such
performance goals without the Participant&#146;s consent; provided, however, a
modification to such performance goals only to reflect the successor
corporation&#146;s post-Change in Control corporate structure will not be deemed to
invalidate an otherwise valid Award assumption.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(d)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Outside Director
Awards</FONT></U><FONT face="Times New Roman" size=2>. With respect to Awards granted to an
Outside Director that are assumed or substituted for, if on the date of or
following such assumption or substitution the Participant&#146;s status as a Director
or a director of the successor corporation, as applicable, is terminated other
than upon a voluntary resignation by the Participant (unless such resignation is
at the request of the acquirer), then the Participant will fully vest in and
have the right to exercise Options and/or Stock Appreciation Rights as to all of
the Shares underlying such Award, including those Shares which would not
otherwise be vested or exercisable, all restrictions on Restricted Stock and
Restricted Stock Units will lapse, and, with respect to Awards with
performance-based vesting, all performance goals or other vesting criteria will
be deemed achieved at one hundred percent (100%) of target levels and all other
terms and conditions met. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>14.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Tax</FONT></U><FONT face="Times New Roman" size=2>.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Withholding
Requirements</FONT></U><FONT face="Times New Roman" size=2>. Prior to the delivery of any
Shares or cash pursuant to an Award (or exercise thereof) or such earlier time
as any tax withholding obligations are due, the Company will have the power and
the right to deduct or withhold, or require a Participant to remit to the
Company, an amount sufficient to satisfy federal, state, local, foreign or other
taxes (including the Participant&#146;s FICA obligation) required to be withheld with
respect to such Award (or exercise thereof).</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>19</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Withholding
Arrangements</FONT></U><FONT face="Times New Roman" size=2>. The Administrator, in its sole
discretion and pursuant to such procedures as it may specify from time to time,
may permit a Participant to satisfy such tax withholding obligation, in whole or
in part by (without limitation) (a) paying cash, (b) electing to have the
Company withhold otherwise deliverable cash or Shares having a Fair Market Value
equal to the minimum statutory amount required to be withheld or such other
amount as will not result in any adverse accounting consequences to the Company,
as the Administrator determines in its sole discretion, or (c) delivering to the
Company already-owned Shares having a Fair Market Value equal to the minimum
statutory amount required to be withheld or such other amount as will not result
in any adverse accounting consequences to the Company, as the Administrator
determines in its sole discretion. The Fair Market Value of the Shares to be
withheld or delivered will be determined as of the date that the taxes are
required to be withheld. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Compliance With Section
409A</FONT></U><FONT face="Times New Roman" size=2>. Awards will be designed and operated in
such a manner that they are either exempt from the application of, or comply
with, the requirements of Section 409A such that the grant, payment, settlement
or deferral will not be subject to the additional tax or interest applicable
under Section 409A, except as otherwise determined in the sole discretion of the
Administrator. Each payment or benefit under this Plan and under each Award
Agreement is intended to constitute a separate payment for purposes of Section
1.409A-2(b)(2) of the Treasury Regulations. The Plan, each Award and each Award
Agreement under the Plan is intended to be exempt from or otherwise meet the
requirements of Section 409A and will be construed and interpreted, including
but not limited with respect to ambiguities and/or ambiguous terms, in
accordance with such intent, except as otherwise specifically determined in the
sole discretion of the Administrator. To the extent that an Award or payment, or
the settlement or deferral thereof, is subject to Section 409A the Award will be
granted, paid, settled or deferred in a manner that will meet the requirements
of Section 409A, such that the grant, payment, settlement or deferral will not
be subject to the additional tax or interest applicable under Section 409A.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>15.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>No Effect on Employment or
Service</FONT></U><FONT face="Times New Roman" size=2>. Neither the Plan nor any Award will
confer upon a Participant any right with respect to continuing the Participant&#146;s
relationship as a Service Provider with the Company, nor will they interfere in
any way with the Participant&#146;s right or the Company&#146;s right to terminate such
relationship at any time, with or without cause, to the extent permitted by
Applicable Laws. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>16.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Date of Grant</FONT></U><FONT face="Times New Roman" size=2>. The date of grant of an Award will be, for all purposes, the date on
which the Administrator makes the determination granting such Award, or such
other later date as is determined by the Administrator. Notice of the
determination will be provided to each Participant within a reasonable time
after the date of such grant. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>17.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Term of Plan</FONT></U><FONT face="Times New Roman" size=2>. Subject to Section 23</FONT><B><FONT face="Times New Roman" size=2>
</FONT></B><FONT face="Times New Roman" size=2>of the Plan, the Plan will become effective
upon its approval by the Company&#146;s stockholders. It will continue in effect for
a term of ten (10) years from the date of the initial Board action to adopt the
Plan unless terminated earlier under Section 18</FONT><B><FONT face="Times New Roman" size=2> </FONT></B><FONT face="Times New Roman" size=2>of the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>18.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Amendment and Termination of the
Plan</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Amendment and
Termination</FONT></U><FONT face="Times New Roman" size=2>. The Administrator may at any
time amend, alter, suspend or terminate the Plan.</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>20</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Stockholder
Approval</FONT></U><FONT face="Times New Roman" size=2>. The Company will obtain stockholder
approval of any Plan amendment to the extent necessary and desirable to comply
with Applicable Laws.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(c)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Effect of Amendment or
Termination</FONT></U><FONT face="Times New Roman" size=2>. No amendment, alteration,
suspension or termination of the Plan will impair the rights of any Participant,
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 the Plan will not affect the Administrator&#146;s ability to
exercise the powers granted to it hereunder with respect to Awards granted under
the Plan prior to the date of such termination. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>19.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Compliance with Applicable
Laws</FONT></U><FONT face="Times New Roman" size=2>. The terms of the Plan are subject to
Applicable Laws and shall be interpreted in such a manner as to comply with
Applicable Laws.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>20.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Conditions Upon Issuance of
Shares</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(a)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Legal
Compliance</FONT></U><FONT face="Times New Roman" size=2>. The granting of Awards and the
issuance and delivery of Shares under the Plan shall be subject to all
Applicable Laws, rule and regulations, and to such approvals by any governmental
agencies or national securities exchanges as may be required. Shares will not be
issued pursuant to the exercise or vesting of an Award and the Company may not
permit the exercise or vesting of an Award unless the exercise or vesting of
such Award and the issuance and delivery of such Shares will comply with
Applicable Laws, rules and regulations and will be further subject to the
approval of counsel for the Company with respect to such compliance.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(b)</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Investment
Representations</FONT></U><FONT face="Times New Roman" size=2>. As a condition to the
exercise of an Award, the Company may require the person exercising such Award
to represent and warrant at the time of any such exercise that the Shares are
being purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>21.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Inability to Obtain Authority</FONT></U><FONT face="Times New Roman" size=2>. The inability of the Company to obtain authority from any
regulatory body having jurisdiction or to complete or comply with the
requirements of any registration or other qualification of the Awards and/or
Shares under any state, federal or foreign law or under the rules and
regulations of the Securities and Exchange Commission, the stock exchange on
which Shares of the same class are then listed, or any other governmental or
regulatory body, which authority, registration, qualification or rule compliance
is deemed by the Company&#146;s counsel to be necessary or advisable for the grant,
exercise or vesting of Awards or the issuance and sale of any Shares hereunder,
will relieve the Company of any liability in respect of the failure to grant
Awards, to allow exercise or vesting of Awards or to issue or sell such Shares
as to which such requisite authority, registration, qualification or rule
compliance will not have been obtained. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>22.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Forfeiture Events</FONT></U><FONT face="Times New Roman" size=2>. The Administrator may specify in an Award Agreement that the
Participant&#146;s rights, payments, and benefits with respect to an Award shall be
subject to reduction, cancellation, forfeiture, or recoupment upon the
occurrence of certain specified events, in addition to any otherwise applicable
vesting or performance conditions of an Award. Such events may include, but
shall not be limited to, fraud, breach of a fiduciary duty, restatement of
financial statements as a result of fraud or willful errors or omissions,
termination of employment for cause, violation of material Company and/or
Subsidiary policies, breach of non-competition, confidentiality, or other
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>21</FONT></P>
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<P align=justify><FONT face="Times New Roman" size=2>restrictive covenants that may apply to
the Participant, or other conduct by the Participant that is detrimental to the
business or reputation of the Company and/or its Subsidiaries. The Administrator
may also require the application of this Section with respect to any Award
previously granted to a Participant even without any specified terms being
included in any applicable Award Agreement to the extent required under
Applicable Laws. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>23.</FONT><FONT face="Times New Roman" size=2>
</FONT><U><FONT face="Times New Roman" size=2>Stockholder Approval</FONT></U><FONT face="Times New Roman" size=2>. The Plan will be subject to approval by the stockholders of
the Company within twelve (12) months after the date the Plan is adopted by the
Board. Such stockholder approval will be obtained in the manner and to the
degree required under Applicable Laws. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>22</FONT></P>
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<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>exhibit10_2.htm
<DESCRIPTION>QUANTUM CORPORATION EMPLOYEE STOCK PURCHASE PLAN
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<P STYLE="text-align: right"><B><FONT face="Times New Roman" size=2>EXHIBIT 10.2</FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>QUANTUM CORPORATION </FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>EMPLOYEE STOCK PURCHASE PLAN
</FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>(As Amended and Restated August 15,
2012) </FONT></B></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The following constitute the
provisions of the Employee Stock Purchase Plan (herein called the &#147;Plan&#148;) of
Quantum Corporation (herein called the &#147;Company&#148;). </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>1. </FONT><U><FONT face="Times New Roman" size=2>Purpose</FONT></U><FONT face="Times New Roman" size=2>. The purpose of the Plan is to
provide Employees of the Company and its Designated Subsidiaries with an
opportunity to purchase Common Stock of the Company through accumulated payroll
deductions or other contributions. It is the intention of the Company to have
the Plan qualify as an &#147;Employee Stock Purchase Plan&#148; under Section 423 of the
Code, although the Company makes no undertaking or representation to maintain
such qualification. The provisions of the Plan shall, accordingly, be construed
so as to extend and limit participation in a manner consistent with the
requirements of that section of the Code. In addition, this Plan document
authorizes the purchase of Common Stock under a Non-423(b) Component, pursuant
to rules, procedures or sub-plans adopted by the Board or a committee appointed
by the Board and designed to achieve tax, securities law or other
objectives.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>2. </FONT><U><FONT face="Times New Roman" size=2>Definitions</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(a)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Board</FONT></U><FONT face="Times New Roman" size=2>&#148;
shall mean the Board of Directors of the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(b)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Code</FONT></U><FONT face="Times New Roman" size=2>&#148;
shall mean the Internal Revenue Code of 1986, as amended. Any reference to a
section of the Code herein will be a reference to any successor or amended
section of the Code. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(c)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Code Section 423(b) Plan</FONT></U><FONT face="Times New Roman" size=2>&#148; shall mean an employee stock purchase plan which is designed
to meet the requirements set forth in Section 423(b) of the Code, as amended.
The provisions of the Code Section 423(b) Plan should be construed, administered
and enforced in accordance with Section 423(b) of the Code. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(d)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Common Stock</FONT></U><FONT face="Times New Roman" size=2>&#148; shall mean the common stock of the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(e)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Company</FONT></U><FONT face="Times New Roman" size=2>&#148;
shall mean Quantum Corporation, a Delaware corporation. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(f)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Compensation</FONT></U><FONT face="Times New Roman" size=2>&#148; shall mean all regular straight time earnings, payments for overtime,
shift premium, incentive compensation, incentive payments, bonuses and
commissions (except to the extent that the exclusion of any such items for all
participants is specifically directed by the Board or a committee appointed by
the Board).</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>1</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<P align=justify><FONT face="Times New Roman" size=2>The Board or a committee appointed by
the Board shall have the power and discretion to (i) change the definition of
Compensation for future Offering Periods, and (ii) determine what constitutes
Compensation for Employees outside of the United States. </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>(g) &#147;</FONT><U><FONT face="Times New Roman" size=2>Continuous Status as an
Employee</FONT></U><FONT face="Times New Roman" size=2>&#148; shall mean the absence of any
interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of: (i) a leave of
absence agreed to in writing by the Company, provided that such leave is for a
period of not more than 90 days or re-employment upon the expiration of such
leave is guaranteed by contract or statute; or (ii) notification by the Company
of termination under a reduction-in-force. Termination in the case of a
reduction-in-force shall be considered to have occurred at the end of the
employee&#146;s continuation period. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(h)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Designated Subsidiaries</FONT></U><FONT face="Times New Roman" size=2>&#148; shall mean the Subsidiaries which have been designated by
the Board or a committee appointed by the Board from time to time in its sole
discretion as eligible to participate in the Plan.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(i)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Employee</FONT></U><FONT face="Times New Roman" size=2>&#148;
means any person, including an officer, who is employed by the Company or one of
its Designated Subsidiaries. The Board or a committee appointed by the Board, in
its discretion, from time to time may, prior to an Enrollment Date for all
options to be granted on such Enrollment Date, determine (on a uniform and
nondiscriminatory basis) that the definition of Employee will or will not
include an individual if he or she: (i) has not completed at least two (2) years
of service since his or her last hire date (or such lesser period of time as may
be determined by the Board or a committee appointed by the Board in its
discretion), (ii) customarily works not more than twenty (20) hours per week or
not more than five (5) months per calendar year (or such lesser period of time
as may be determined by the Board or a committee appointed by the Board in its
discretion), or (iii) is a highly compensated employee under Section 414(q) of
the Code.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(j)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Enrollment Date</FONT></U><FONT face="Times New Roman" size=2>&#148; shall mean the first Trading Day on or after every February 6 and
August 6 of each year. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(k)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Exercise Date</FONT></U><FONT face="Times New Roman" size=2>&#148; shall mean the date approximately six months after the Enrollment Date
of an Offering Period and shall be one Trading Day prior to an Enrollment Date
of the immediately following Offering Period.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(l)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Fair Market Value</FONT></U><FONT face="Times New Roman" size=2>&#148; means, as of any date, the closing sales price of the Common Stock (or
the closing bid, if no sales were reported) as quoted on the stock exchange with
the greatest volume of trading in Common Stock on the last market trading day
prior to the date of determination, as reported in </FONT><I><FONT face="Times New Roman" size=2>The Wall Street Journal</FONT></I><FONT face="Times New Roman" size=2> or such other
source as the Board or a committee appointed by the Board deems reliable.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(m)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Non-423(b) Component</FONT></U><FONT face="Times New Roman" size=2>&#148; means the grant of an option under the Plan which is not
intended to meet the requirements set forth in Section 423(b) of the Code, as
amended. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>2</FONT></P>
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<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(n)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Offering Period</FONT></U><FONT face="Times New Roman" size=2>&#148; shall mean a period commencing on an Enrollment Date and ending on the
Exercise Date, approximately six (6) months later, or as otherwise set forth in
Section 4 hereof. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(o)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Parent</FONT></U><FONT face="Times New Roman" size=2>&#148;
means a &#147;parent corporation,&#148; whether now or hereafter existing, as defined in
Section 424(e) of the Code. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(p)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Plan</FONT></U><FONT face="Times New Roman" size=2>&#148;
shall mean this Employee Stock Purchase Plan, which includes a Code Section
423(b) Plan and a Non-423(b) Component. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(q)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Purchase Price</FONT></U><FONT face="Times New Roman" size=2>&#148; shall have the meaning as set forth in Section 7(b). </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(r)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Subsidiary</FONT></U><FONT face="Times New Roman" size=2>&#148; shall mean a corporation, domestic or foreign, of which not less than
50% of the voting shares are held by the Company or a Subsidiary, whether or not
such corporation now exists or is hereafter organized or acquired by the Company
or a Subsidiary. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(s)
&#147;</FONT><U><FONT face="Times New Roman" size=2>Trading Day</FONT></U><FONT face="Times New Roman" size=2>&#148; shall mean a day on which the New York Stock Exchange is open for
trading. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>3. </FONT><U><FONT face="Times New Roman" size=2>Eligibility</FONT></U><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a) Any
Employee (as defined in Section 2) who shall be employed by the Company or one
of its Designated Subsidiaries on the date his or her participation in the Plan
is effective shall be eligible to participate in the Plan, unless the Company,
in its discretion, decides that such participation would infringe any U.S. or
foreign law, rules or regulations. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b) Any
provisions of the Plan to the contrary notwithstanding, no Employee shall be
granted an option under the Plan (i) if, immediately, after the grant, such
Employee (or any other person whose stock would be attributed to such Employee
pursuant to Section 424(d) of the Code) would own shares and/or hold outstanding
options to purchase stock possessing five percent (5%) or more of the total
combined voting power or value of all classes of stock of the Company or of any
Subsidiary, or (ii) which permits his or her rights to purchase shares under all
employee stock purchase plans (as defined in Section 423 of the Code) of the
Company and its Subsidiaries to accrue at a rate which exceeds Twenty-Five
Thousand Dollars (US$25,000) of the fair market value of the shares (determined
at the time such option is granted) for each calendar year in which such option
is outstanding at any time. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(c) No
employee of the Company or a Designated Subsidiary shall be eligible to
participate in the Non-423(b) Component of the Plan if he or she is an officer
or director of the Company subject to the requirements of Section 16 of the U.S.
Securities Exchange Act of 1934, as amended (the &#147;Act&#148;). </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>3</FONT></P>
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<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>4. </FONT><U><FONT face="Times New Roman" size=2>Offering Dates</FONT></U><FONT face="Times New Roman" size=2>. The Plan shall be implemented by consecutive Offering
Periods with a new Offering Period commencing on an Enrollment Date, and shall
continue thereafter until terminated in accordance with Section 19 hereof. The
Board or a committee appointed by the Board shall have the power to change the
duration of Offering Periods with respect to future Offering Periods. In no
event shall the duration of an Offering Period exceed nine (9) months.
Notwithstanding the foregoing, no offers hereunder shall be made until
compliance with all applicable securities law has been obtained. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>5. </FONT><U><FONT face="Times New Roman" size=2>Participation</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a) An
eligible Employee may become a participant in the Plan by completing a
subscription agreement authorizing payroll deductions in the form and manner
determined by the Company in its discretion from time to time. The Company, in
its discretion, may decide that an Employee may submit contributions to the Plan
by means other than payroll deductions. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b) Payroll
deductions to the Plan for a participant shall commence on the first payroll
following the Enrollment Date and shall end on the last payroll date in the
Offering Period to which such authorization is applicable, unless sooner
terminated by the participant as provided in Section 10. If participants are
permitted or required to contribute to the Plan by other means, the Company, in
its discretion, will determine the procedure for providing the contributions
prior to the Exercise Date. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>6. </FONT><U><FONT face="Times New Roman" size=2>Payroll
Deductions/Contributions</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a) At the
time a participant files his or her subscription agreement, he or she shall
elect to contribute to the Plan (in the form of payroll deductions or otherwise)
on each payday during the Offering Period at a rate not exceeding ten percent
(10%) of the Compensation which he or she received on such payday, and the
aggregate of such payroll deductions pursuant to the Plan during the Offering
Period shall not exceed ten percent (10%) of his or her aggregate Compensation
during said Offering Period. A participant&#146;s subscription agreement shall remain
in effect for successive Offering Periods unless terminated as provided in
Section 10 hereof.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b) All
contributions made for a participant shall be credited to his or her account
under the Plan.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(c) A
participant may discontinue participation in the Plan as provided in Section 10,
or may change the rate of payroll deductions or other contributions by
submitting written notice to the Company in the form and manner prescribed by
the Board or a committee appointed by the Board (or its designee) authorizing a
change in the participant&#146;s payroll deduction or contribution rate. The change
rate shall be effective (i) in the case of a decrease in rate, with the first
payroll period following the Company&#146;s receipt of the notice of rate change, and
(ii) in the case of an increase in rate at the beginning of the next Offering
Period following the Company&#146;s receipt of the notice of </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>4</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>rate change. If a participant has not
followed the procedures prescribed by the Board or a committee appointed by the
Board (or its designee) to change the rate of payroll deductions or other
contributions, the rate of his or her payroll deductions or other contributions
will continue at the originally elected rate throughout the Offering Period and
future Offering Periods (unless terminated as provided in Section 10). The Board
or a committee appointed by the Board may, in its sole discretion, limit the
nature and/or number of payroll deduction or contribution rate changes that may
be made by participants during any Offering Period.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>7. </FONT><U><FONT face="Times New Roman" size=2>Grant of Option</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a) On the
Enrollment Date of each Offering Period, each eligible Employee participating in
such Offering Period shall be granted an option to purchase on the Exercise Date
during such Offering Period up to a number of shares of the Company&#146;s Common
Stock determined by dividing such Employee&#146;s contributions to the Plan
accumulated during the Offering Period ending on such Exercise Date by the lower
of (i) eighty-five percent (85%) of the Fair Market Value of a share of the
Company&#146;s Common Stock on the Enrollment Date, or (ii) eighty-five (85%) of the
Fair Market Value of a share of the Company&#146;s Common Stock on the Exercise Date;
provided that in no event shall an Employee be permitted to purchase in one
calendar year more than a number of shares determined by dividing US$25,000 by
the Fair Market Value of a share of the Company&#146;s Common Stock (determined at
the time such option is granted), and provided further that such purchase shall
be subject to the limitations set forth in Sections 3(b) and 12 hereof. The
option shall be automatically exercised on the Exercise Date during the Offering
Period, unless the participant has withdrawn pursuant to Section 10, and shall
expire on the last day of the Offering Period.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b) The
purchase price per share of the shares offered in a given offering Period shall
be the lower of: (i) 85% of the Fair Market Value of a share of the Common Stock
of the Company on the Enrollment Date; or (ii) 85% of the Fair Market Value of a
share of the Common Stock of the Company on the Exercise Date (such price, the
&#147;Purchase Price&#148;).</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(c)
Notwithstanding the foregoing, to the extent necessary to comply with Section
423(b)(8) of the Code and Section 3(b) herein, a participant&#146;s contributions may
be decreased to 0% at such time during any Offering Period which is scheduled to
end during the current calendar year that the aggregate of all contributions
accumulated with respect to such Offering Period and any other Offering Period
ending within the same calendar year equal $21,250. Contributions shall
recommence at the rate provided in such participant&#146;s subscription scheduled to
end in the following calendar year, unless terminated by the participant as
provided in Section 10. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(d) If the
Board or a committee appointed by the Board determines, in its sole discretion,
that the exercise of an option or the disposition of Common Stock issued under
the Plan will result in tax liability for which the Company or a Designated
Subsidiary will have an obligation to withhold, the participant must make
adequate </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>5</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>provision for the payment of such
federal, state, local and foreign income, social insurance, employment and any
other applicable taxes. At any time, the Company or the Designated Subsidiary
may, but will not be obligated to, withhold from the participant&#146;s compensation
the amount necessary for the Company or the Designated Subsidiary to meet
applicable withholding obligations, including any withholding required to make
available to the Company or the Designated Subsidiary any tax deductions or
benefits attributable to the sale or early disposition of Common Stock by the
eligible Employee. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>8. </FONT><U><FONT face="Times New Roman" size=2>Exercise of Option</FONT></U><FONT face="Times New Roman" size=2>. The participant&#146;s option for the purchase of shares will be
exercised automatically on each Exercise Date of each Offering Period and the
maximum number of full shares subject to option will be purchased for such
participant at the applicable Purchase Price with the accumulated payroll
deductions or other contributions in his or her account unless prior to such
Exercise Date the participant has withdrawn from the Offering Period as provided
in Section 10 or unless any of the limitations under Sections 3, 7 or 12 would
be exceeded. During a participant&#146;s lifetime, a participant&#146;s option to purchase
shares hereunder is exercisable only by the participant. No fractional shares
shall be purchased; any payroll deductions or other contributions accumulated in
a participant&#146;s account which are not sufficient to purchase a full share, or
which would cause the limitations under Sections 3, 7 or 12 hereof to be
exceeded, shall be returned to the participant after the Exercise Date.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>9. </FONT><U><FONT face="Times New Roman" size=2>Delivery</FONT></U><FONT face="Times New Roman" size=2>. As promptly as practicable after each Exercise Date, the Company shall
arrange the delivery to each participant, as appropriate, the shares of Common
Stock purchased upon exercise of the option. The Company may permit or require
that shares be deposited directly with a broker designated by the Company or to
a designated agent of the Company, and the Company may utilize electronic or
automated methods of share transfer. The Company may require that shares be
retained with such broker or agent for a designated period of time and/or may
establish other procedures to permit tracking of disqualifying dispositions of
such shares. No participant will have any voting, dividend, or other stockholder
rights with respect to shares of Common Stock subject to any option granted
under the Plan until such shares have been purchased and delivered to the
participant as provided in this Section 9. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>10. </FONT><U><FONT face="Times New Roman" size=2>Withdrawal; Termination of
Employment</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a) A
participant may withdraw all but not less than all the contributions credited to
his or her account under the Plan at any time prior to the end of the Offering
Period by giving written notice to the Company in the form and manner prescribed
by the Board or a committee appointed by the Board for such purpose. All of the
participant&#146;s contributions credited to his or her account will be paid to him
or her promptly after receipt of his or her notice of withdrawal and his or her
option for the current Offering Period will be automatically terminated, and no
further contributions for the purchase of shares will be made during the
Offering Period. If a participant withdraws from an Offering Period,
contributions may not resume at the beginning of the succeeding Offering Period
unless the participant delivers to the Company a new subscription agreement.
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>6</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b) Upon
termination of the participant&#146;s employment prior to the end of the Offering
Period for any reason, including retirement or death, the contributions credited
to his or her account will be returned to him or, in the case of his or her
death, to the person or persons entitled thereto under Section 14, and his or
her option will be automatically terminated; provided that if an Employee shall
take a leave of absence approved by the Company in accordance with Section 2(g)
of this Plan during an Offering Period in which the Employee is a participant,
the participant will be deemed to have his or her contributions reduced to 0%
during such leave of absence, but he or she shall continue to be a participant
in the applicable Offering Period and upon his or her return to employment with
the Company shall be eligible to participate fully in any remaining portion of
the applicable Offering Period. If the participant fails to return to employment
with the Company at the end of such authorized leave of absence, or if his or
her employment is otherwise terminated earlier, he or she shall be deemed to
have withdrawn from participation in the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(c) A
participant&#146;s withdrawal from an Offering Period will not have any effect upon
his or her eligibility to participate in any similar plan which may hereafter be
adopted by the Company or in succeeding Offering Periods. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>11. </FONT><U><FONT face="Times New Roman" size=2>Interest</FONT></U><FONT face="Times New Roman" size=2>. No interest shall accrue on the contributions of a participant in the
Plan, unless required by applicable law. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>12. </FONT><U><FONT face="Times New Roman" size=2>Stock</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a) The
maximum number of shares of the Company&#146;s Common Stock which shall be made
available for sale under the Plan shall be 19,734,637, subject to adjustment
upon changes in capitalization of the Company as provided in Section 18. In
addition, in no event shall more than 2,000,000 shares of the Company&#146;s Common
Stock (subject to adjustment upon changes in capitalization of the Company as
provided in Section 18) be made available for sale under the Plan in any one
Offering Period. Furthermore, the Company, in its discretion, may decide to
impose a limit on the number of shares of the Company&#146;s Common Stock that each
participant may purchase during any one Offering Period. If the total number of
shares which would otherwise be subject to options granted pursuant to Section
7(a) hereof at the beginning of an Offering Period exceeds the number of shares
then available under the Plan (after deduction of all shares for which options
have been exercised or are then outstanding) or the 2,000,000 share limit for
any Offering Period, the Company shall make a pro rata allocation of the shares
remaining available for option grant in as uniform a manner as shall be
practicable and as it shall determine to be equitable. In such event, the
Company shall give written notice of such reduction of the number of shares
subject to the option to each Employee affected thereby and shall similarly
reduce the rate of contributions, if necessary. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b) Until
the shares are issued (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), a participant
will only have the rights of an unsecured creditor with respect to such shares,
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>7</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>and no right to vote or receive
dividends or any other rights as a stockholder will exist with respect to such
shares. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(c) Shares
to be delivered to a participant under the Plan will be registered in the name
of the participant or in the name of the participant and his or her spouse, or
as otherwise directed by the participant. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>13. </FONT><U><FONT face="Times New Roman" size=2>Administration</FONT></U><FONT face="Times New Roman" size=2>. The Plan shall be administered by the Board of Directors of
the Company or a committee appointed by the Board. The Board or a committee
appointed by the Board will have full and exclusive discretionary authority to
construe, interpret and apply the terms of the Plan, to designate separate
Offerings under the Plan, to determine eligibility, to adjudicate all disputed
claims filed under the Plan and to establish such procedures that it deems
necessary for the administration of the Plan (including, without limitation, to
adopt such procedures and sub-plans as are necessary or appropriate to permit
the participation in the Plan by employees who are foreign nationals or employed
outside the U.S., the terms of which sub-plans may take precedence over other
provisions of this Plan, with the exception of Section 12(a), but unless
otherwise superseded by the terms of such sub-plan, the provisions of this Plan
shall govern the operation of such sub-plan). Unless otherwise determined by the
Board or a committee appointed by the Board, the Employees eligible to
participate in each sub-plan will participate in a separate Offering. Without
limiting the generality of the foregoing, the Board or a committee appointed by
the Board is specifically authorized (in its discretion) to adopt rules and
procedures regarding eligibility to participate, the form and manner for making
elections under the Plan, the definition of Compensation, handling of
Contributions, making of Contributions to the Plan (including, without
limitation, in forms other than payroll deductions), establishment of bank or
trust accounts to hold Contributions, payment of interest (if any), conversion
of local currency, obligations to pay payroll tax, determination of beneficiary
designation requirements and withholding procedures and handling of stock
certificates that vary with applicable local requirements. The Board or a
committee appointed by the Board also is authorized to determine that, to the
extent permitted by U.S. Treasury Regulation Section 1.423 2(f), the terms of an
option granted under the Plan or an Offering to citizens or residents of a
non-U.S. jurisdiction will be less favorable than the terms of options granted
under the Plan or the same Offering to employees resident solely in the U.S.
Every finding, decision, interpretation and determination made by the Board or a
committee appointed by the Board will, to the full extent permitted by law, be
final and binding upon all parties. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>14. </FONT><U><FONT face="Times New Roman" size=2>Designation of
Beneficiary</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a) Unless
otherwise determined by the Company, a participant may file a written
designation of a beneficiary who is to receive any shares and cash, if any, from
the participant&#146;s account under the Plan in the event of such participant&#146;s
death subsequent to the end of the Offering Period but prior to delivery to him
of such shares and cash. In addition, unless otherwise determined by the
Company, a participant may file a written designation of a beneficiary who is to
receive any cash from the participant&#146;s </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>8</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>account under the Plan in the event of
such participant&#146;s death prior to the end of the Offering Period. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b) Unless
otherwise determined by the Company, such designation of beneficiary may be
changed by the participant at any time by written notice to the Company in the
form and manner prescribed by the Board or a committee appointed by the Board
for such purpose. In the event of the death of a participant and in the absence
of a beneficiary validly designated under the Plan who is living at the time of
such participant&#146;s death, the Company shall deliver such shares and/or cash to
the executor or administrator of the estate of the participant, or if no such
executor or administrator has been appointed (to the knowledge of the Company),
the Company, in its discretion, may deliver such shares and/or cash to the
spouse or to any one or more dependents or relatives of the participant, or if
no spouse, dependent or relative is known to the Company, then to such other
person as the Company may designate or determine to be the appropriate
recipients of the shares and/or cash under applicable law. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(c) All
beneficiary designations will be in such form and manner as the Board or a
committee appointed by the Board may prescribe from time to time. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>15. </FONT><U><FONT face="Times New Roman" size=2>Transferability</FONT></U><FONT face="Times New Roman" size=2>. Neither contributions credited to a participant&#146;s account
nor any rights with regard to the exercise of an option or to receive shares
under the Plan may be assigned, transferred, pledged or otherwise disposed of in
any way (other than by will, the laws of descent and distribution or as provided
in Section 14 hereof) by the participant. Any such attempt at assignment,
transfer, pledge or other disposition shall be without effect, except that the
Company may treat such act as an election to withdraw funds in accordance with
Section 10. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>16. </FONT><U><FONT face="Times New Roman" size=2>Use of Funds</FONT></U><FONT face="Times New Roman" size=2>. All contributions received or held by the Company under the
Plan may be used by the Company for any corporate purpose, and the Company shall
not be obligated to segregate such contributions, unless required by applicable
law. Until shares of Common Stock are issued, participants will only have the
rights of an unsecured creditor with respect to such shares. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>17. </FONT><U><FONT face="Times New Roman" size=2>Reports</FONT></U><FONT face="Times New Roman" size=2>. Individual accounts will be maintained for each participant in the
Plan. Statements of account will be given to participating Employees at least
annually as promptly as practically feasible following an Exercise Date, which
statements will set forth the amounts of contributions, the per share Purchase
Price, the number of shares purchased and the remaining cash balance, if any.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>18. </FONT><U><FONT face="Times New Roman" size=2>Adjustments Upon Changes in
Capitalization</FONT></U><FONT face="Times New Roman" size=2>. In the event that any
dividend or other distribution (whether in the form of cash, shares of Common
Stock, other securities, or other property), recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off,
combination, repurchase, or exchange of shares of Common Stock or other
securities of the Company, or other change in the corporate structure of the
Company that affects the shares of Common Stock, then the Board or a committee
appointed by the Board shall, in such manner as it may deem </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>9</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>equitable, adjust the number and class
of shares of Common Stock (or other securities, property or cash) that may be
delivered under the Plan, and the number, class, and price of shares of Common
Stock subject to any option under the Plan which has not yet been exercised, as
determined by the Board or a committee appointed by the Board (in its sole
discretion) to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the
Plan.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>19. </FONT><U><FONT face="Times New Roman" size=2>Amendment or
Termination</FONT></U><FONT face="Times New Roman" size=2>. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a) The
Board of Directors of the Company may at any time and for any reason terminate
or amend the Plan. Except as provided in Section 18 hereof, no such termination
can affect options previously granted, provided that an Offering Period may be
terminated by the Board of Directors or a committee appointed by the Board on an
Exercise Date if the Board or its committee, as applicable, determines that the
termination of the Offering Period or the Plan is in the best interests of the
Company and its shareholders. Except as provided in Section 18 and this Section
19 hereof, no amendment may make any change in any option theretofore granted
which adversely affects the rights of any participant. To the extent necessary
to comply with Section 423 of the Code (or any successor rule or provision or
any other applicable law, regulation or stock exchange rule), the Company shall
obtain shareholder approval in such a manner and to such a degree as required.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b) Without
shareholder consent and without regard to whether any participant rights may be
considered to have been &#147;adversely affected,&#148; the Board (or its committee) shall
be entitled to change the Offering Periods, limit the frequency and/or number of
changes in the amount withheld during an Offering Period, establish the exchange
ratio applicable to amounts withheld in a currency other than U.S. dollars,
permit payroll withholding or contributing to the Plan in excess of the amount
designated by a participant in order to adjust for delays or mistakes in the
Company&#146;s processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant&#146;s Compensation, and establish such other limitations or procedures
as the Board (or its committee) determines in its sole discretion advisable
which are consistent with the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Such modifications or amendments shall not require stockholder approval
or the consent of any Plan participants. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>20. </FONT><U><FONT face="Times New Roman" size=2>Notices</FONT></U><FONT face="Times New Roman" size=2>. All notices or other communications by a participant to the Company
under or in connection with the Plan shall be deemed to have been duly given
when received in the form specified by the Company at the location, or by the
person, designated by the Company for the receipt thereof. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>21. </FONT><U><FONT face="Times New Roman" size=2>Stockholder
Approval</FONT></U><FONT face="Times New Roman" size=2>. If required by Section 19, any
amendment to the Plan shall be subject to approval by the stockholders of the
Company within twelve </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>10</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>months before or after the date such
amendment is adopted. If such stockholder approval is obtained at a duly held
stockholders&#146; meeting, it may be obtained by the affirmative vote of the holders
of a majority of the outstanding shares of the Company present or represented
and entitled to vote thereon, which approval shall be: </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(a)
solicited substantially in accordance with Section 14(a) of the Act and the
rules and regulations promulgated thereunder, or (2) solicited after the Company
has furnished in writing to the holders entitled to vote substantially the same
information concerning the Plan as that which would be required by the rules and
regulations in effect under Section 14(a) of the Act at the time such
information is furnished; and </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>(b)
obtained at or prior to the first annual meeting of stockholders held subsequent
to the later of (i) the first registration of Common Stock under Section 12 of
the Act, or (ii) the acquisition of an equity security for which exemption is
claimed. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT>In the case
of approval by written consent, it must be obtained in accordance with
applicable state law. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>22. </FONT><U><FONT face="Times New Roman" size=2>Conditions Upon Issuance of
Shares</FONT></U><FONT face="Times New Roman" size=2>. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the U.S.
Securities Act of 1933, as amended, the Act, the rules and regulations
promulgated thereunder, and the requirements of any stock exchange upon which
the shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance.</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>As a condition to the exercise of an option, the Company may require the
person exercising such option to represent and warrant at the time of any such
exercise that the shares are being purchased only for investment and without any
present intention to sell or distribute such shares if, in the opinion of
counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>23. </FONT><U><FONT face="Times New Roman" size=2>Dissolution or
Liquidation</FONT></U><FONT face="Times New Roman" size=2>. In the event of the proposed
dissolution or liquidation of the Company, the Offering Period then in progress
shall be shortened by setting a new Exercise Date (the &#147;New Exercise Date&#148;), and
shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board or a
committee appointed by the Board. The New Exercise Date shall be before the date
of the Company&#146;s proposed dissolution or liquidation. The Board or a committee
appointed by the Board shall notify each participant in writing, at least ten
(10) business days prior to the New Exercise Date, that the Exercise Date for
the participant&#146;s option has been changed to the New Exercise Date and that the
participant&#146;s option shall be exercised automatically on the New Exercise Date,
unless prior to such date the participant has withdrawn from the Offering Period
as provided in Section 10 hereof. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>11</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>

<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>24.
</FONT><U><FONT face="Times New Roman" size=2>Merger or Asset Sale</FONT></U><FONT face="Times New Roman" size=2>. In the event of a merger of the Company with or into another
corporation or the sale of substantially all of the assets of the Company, each
outstanding option shall be assumed or an equivalent option substituted by the
successor corporation or a Parent or Subsidiary of the successor corporation. In
the event that the successor corporation refuses to assume or substitute for the
option, the Offering Period then in progress shall be shortened by setting a New
Exercise Date and such Offering Period shall end on the New Exercise Date. The
New Exercise Date shall be before the date of the Company&#146;s proposed merger or
asset sale. The Board or a committee appointed by the Board shall notify each
participant in writing, at least ten (10) business days prior to the New
Exercise Date, that the Exercise Date for the participant&#146;s option has been
changed to the New Exercise Date and that the participant&#146;s option shall be
exercised automatically on the New Exercise Date, unless prior to such date the
participant has withdrawn from the Offering Period as provided in Section 10
hereof. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>25. </FONT><U><FONT face="Times New Roman" size=2>Code Section 409A</FONT></U><FONT face="Times New Roman" size=2>. The Code Section 423(b) Plan is exempt from the application
of Section 409A of the Code. The Non-423(b) Component is intended to be exempt
from Section 409A of the Code under the short-term deferral exception and any
ambiguities shall be construed and interpreted in accordance with such intent.
In the case of a participant who would otherwise be subject to Section 409A of
the Code, to the extent an option to purchase shares of Common Stock or the
payment, settlement or deferral thereof is subject to Section 409A of the Code,
the option to purchase shares of Common Stock shall be granted, paid, exercised,
settled or deferred in a manner that will comply with Section 409A of the Code,
including the final regulations and other guidance issued with respect thereto,
except as otherwise determined by the Board or a committee appointed by the
Board. Notwithstanding the foregoing, the Company shall have no liability to a
participant or any other party if the option to purchase Common Stock under the
Plan that is intended to be exempt from or compliant with Section 409A of the
Code is not so exempt or compliant or for any action taken by the Board or a
committee appointed by the Board with respect thereto. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>26. </FONT><U><FONT face="Times New Roman" size=2>Governing Law</FONT></U><FONT face="Times New Roman" size=2>. Except to the extent that provisions of this Plan are
governed by applicable provisions of the Code or any other substantive provision
of federal law, this Plan shall be construed in accordance with, and shall be
governed by, the substantive laws of the State of California without regard to
any provisions of California law relating to the conflict of laws. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>12</FONT></P>
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<FILENAME>exhibit10_3.htm
<DESCRIPTION>QUANTUM CORPORATION EXECUTIVE OFFICER INCENTIVE PLAN
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<BR>
<P STYLE="text-align: right"><B><FONT face="Times New Roman" size=2>EXHIBIT 10.3</FONT></B></P>
<P align=center><B><FONT face="Times New Roman" size=2>QUANTUM CORPORATION</FONT></B><FONT face="Times New Roman" size=2><BR></FONT><B><FONT face="Times New Roman" size=2>EXECUTIVE OFFICER
INCENTIVE PLAN</FONT></B><FONT face="Times New Roman" size=2> <BR></FONT><B><FONT face="Times New Roman" size=2>(April 1, 2012 Restatement)</FONT></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>SECTION 1.</FONT><FONT face="Times New Roman" size=2> <BR></FONT><B><FONT face="Times New Roman" size=2>BACKGROUND AND
PURPOSE</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify>&nbsp;&nbsp;&nbsp;&nbsp; <FONT face="Times New Roman" size=2>1.1</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Effective Date</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Plan, which was adopted by the Company effective as of April 1, 2001,
is hereby amended and restated effective as of April 1, 2012 subject to
ratification by an affirmative vote of the holders of a majority of the Shares
that are present in person or by proxy and entitled to vote at the 2012 Annual
Meeting of Stockholders of the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>1.2</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Purpose of the Plan</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Plan is intended to increase stockholder value and the success of the
Company by motivating key executives (1) to perform to the best of their
abilities, and (2) to achieve the Company&#146;s objectives. The Plan&#146;s goals are to
be achieved by providing participants with the opportunity to earn with
incentive awards for the achievement of goals relating to the performance of the
Company. The Plan is intended to permit the payment of awards that qualify as
performance-based compensation under Section 162(m) of the Code. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>SECTION 2.</FONT><FONT face="Times New Roman" size=2><BR></FONT><B><FONT face="Times New Roman" size=2>DEFINITIONS</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The following words and phrases shall have the following meanings unless
a different meaning is plainly required by the context: </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.1</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>1934 Act</FONT></B><FONT face="Times New Roman" size=2>&#148; means the Securities Exchange Act of 1934, as amended. Reference to a
specific section of the 1934 Act or regulation thereunder shall include such
section or regulation, any valid regulation promulgated under such section, and
any comparable provision of any future legislation or regulation amending,
supplementing or superseding such section or regulation. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.2</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Actual Award</FONT></B><FONT face="Times New Roman" size=2>&#148; means as to any Performance Period, the actual award (if
any) payable to a Participant for the Performance Period. Each Actual Award is
determined by the Payout Formula for the Performance Period, subject to the
Committee&#146;s authority under Section 3.6 to reduce or eliminate the award
otherwise determined by the Payout Formula. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.3</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Affiliate</FONT></B><FONT face="Times New Roman" size=2>&#148; means any corporation or other entity (including, but not limited to,
partnerships and joint ventures) controlled by the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.4</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Board</FONT></B><FONT face="Times New Roman" size=2>&#148; means the Board of Directors of the Company. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>1</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.5</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Code</FONT></B><FONT face="Times New Roman" size=2>&#148; means the Internal Revenue Code of 1986, as amended. Reference to a
specific section of the Code or regulation thereunder shall include such section
or regulation, any valid regulation promulgated thereunder, and any comparable
provision of any future legislation or regulation amending, supplementing or
superseding such section or regulation. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.6</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Committee</FONT></B><FONT face="Times New Roman" size=2>&#148; means the committee appointed by the Board (pursuant to Section 5.1) to
administer the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.7</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Company</FONT></B><FONT face="Times New Roman" size=2>&#148; means Quantum Corporation, a Delaware corporation, or any successor
thereto. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.8</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Determination Date</FONT></B><FONT face="Times New Roman" size=2>&#148; means the latest possible date that will not jeopardize a
Target Award or Actual Award&#146;s qualification as performance-based compensation
under Section 162(m) of the Code. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.9</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Employee</FONT></B><FONT face="Times New Roman" size=2>&#148; means any employee of the Company or of an Affiliate, whether such
employee is so employed at the time the Plan is adopted or becomes so employed
subsequent to the adoption of the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.10</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Fiscal Quarter</FONT></B><FONT face="Times New Roman" size=2>&#148; means a fiscal quarter of the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.11</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Fiscal Year</FONT></B><FONT face="Times New Roman" size=2>&#148; means the fiscal year of the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.12</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Participant</FONT></B><FONT face="Times New Roman" size=2>&#148; means as to any Performance Period, an Employee who has been selected
by the Committee for participation in the Plan for that Performance Period.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.13</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Payout Formula</FONT></B><FONT face="Times New Roman" size=2>&#148; means as to any Performance Period, the formula or payout
matrix established by the Committee pursuant to Section 3.4 in order to
determine the Actual Awards (if any) to be paid to Participants. The formula or
matrix may differ from Participant to Participant. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.14</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Performance Goals</FONT></B><FONT face="Times New Roman" size=2>&#148; means the goal(s) (or combined goal(s)) determined by the
Committee (in its discretion) to be applicable to a Participant for a Target
Award for a Performance Period. As determined by the Committee, the Performance
Goals for any Target Award applicable to a Participant may provide for a
targeted level or levels of achievement using one or more of the following
measures: (a) cash flow, (b) customer satisfaction, (c) earnings per share, (d)
expense control, (e) margin, (f) market share, (g) operating profit, (h) product
development and/or quality, (i) profit, (j) return on capital, (k) return on
equity, (l) revenue and (m) total shareholder return. Performance Goals may
differ from Participant to Participant, Performance Period to Performance Period
and from award to award. Any Performance Goal used may be measured (1) in
absolute terms, (2) in combination with another Performance Goal or Goals (for
example, but not by way of limitation, as a ratio or matrix), (3) in relative
terms (including, but not limited to, as compared to results for other periods
of time, against financial metrics and/or against another company, companies or
an index or indices), (4) on a per-share or per-capita basis, (5) against the
performance of the Company as a whole or a specific business unit(s), business
segment(s) or product(s) of the Company, and/or (6) on a pre-tax or after-tax
basis. Prior to the Determination Date, the Committee, in its discretion, will
determine whether any significant element(s) or item(s) will be included in or
</FONT></P>
<P align=center><FONT face="Times New Roman" size=2>2</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>excluded from the calculation of any
Performance Goal with respect to any Participants (for example, but not by way
of limitation, the effect of mergers and acquisitions). As determined in the
discretion of the Committee prior to the Determination Date, achievement of
Performance Goals for any particular Target Award may be calculated in
accordance with the Company&#146;s financial statements, prepared in accordance with
generally accepted accounting principles, or as adjusted for certain costs,
expenses, gains and losses to provide non-GAAP measures of operating results.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.15</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Performance Period</FONT></B><FONT face="Times New Roman" size=2>&#148; means any Fiscal Year (or period of four (4) consecutive
Fiscal Quarters) or such other period longer than a Fiscal Year but not longer
than three Fiscal Years (or period of twelve (12) consecutive Fiscal Quarters),
as determined by the Committee in its sole discretion. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.16</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Plan</FONT></B><FONT face="Times New Roman" size=2>&#148; means the Quantum Corporation Executive Officer Incentive Plan, as set
forth in this instrument and as hereafter amended from time to time. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.17</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Shares</FONT></B><FONT face="Times New Roman" size=2>&#148; means shares of the Company&#146;s common stock. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>2.18</FONT><FONT face="Times New Roman" size=2> </FONT><FONT face="Times New Roman" size=2>&#147;</FONT><B><FONT face="Times New Roman" size=2>Target Award</FONT></B><FONT face="Times New Roman" size=2>&#148; means the target award payable under the Plan to a
Participant for the Performance Period as determined by the Committee in
accordance with Section 3.3. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>SECTION 3.</FONT><FONT face="Times New Roman" size=2> <BR></FONT><B><FONT face="Times New Roman" size=2>SELECTION OF PARTICIPANTS AND
DETERMINATION OF AWARDS</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>3.1</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Selection of Participants</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Committee, in its sole discretion, shall select the Employees of the
Company who shall be Participants for any Performance Period. The Committee, in
its sole discretion, also may designate as Participants one or more individuals
(by name or position) who are expected to become Employees during a Performance
Period. Participation in the Plan is in the sole discretion of the Committee,
and shall be determined on a Performance Period by Performance Period basis.
Accordingly, an Employee who is a Participant for a given Performance Period in
no way is guaranteed or assured of being selected for participation in any
subsequent Performance Period. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>3.2</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Determination of Performance Goals</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Committee, in its sole discretion, shall establish the Performance
Goals for each Participant for the Performance Period. Such Performance Goals
shall be set forth in writing. The Performance Goals may differ from Participant
to Participant and from award to award. The Committee shall also determine and
set forth in writing whether any significant elements shall be included in or
excluded from the calculation of any Performance Goal with respect to any
Participants, including (a) restructurings, discontinued operations,
extraordinary items, and other unusual or non-recurring charges, (b) an event
either not directly related to the operations of the Company or not within the
reasonable control of the Company&#146;s management, or (c) the cumulative effects of
tax or accounting changes in accordance with U.S. generally accepted accounting
principles. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>3</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>3.3</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Determination of Target Awards</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Committee, in its sole discretion, shall establish a Target Award for
each Participant. Each Participant&#146;s Target Award shall be determined by the
Committee in its sole discretion, and each Target Award shall be set forth in
writing. The Target Award may be denominated by reference to a formula, a
percentage of base salary, or a fixed dollar amount. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>3.4</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Determination of Payout Formula or Formulae</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Committee, in its sole discretion, shall establish a Payout Formula
or Formulae for purposes of determining the Actual Award (if any) payable to
each Participant. Each Payout Formula shall (a) be in writing, (b) be based on a
comparison of actual performance to the Performance Goals, (c) provide for the
payment of a Participant&#146;s Target Award if the Performance Goals for the
Performance Period are achieved at the predetermined level, and (d) provide for
the payment of an Actual Award greater than or less than the Participant&#146;s
Target Award, depending upon the extent to which actual performance exceeds or
falls below the Performance Goals. Notwithstanding the preceding, no
Participant&#146;s Actual Award(s) under the Plan may, for any period of three (3)
consecutive Fiscal Years, exceed $15,000,000. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>3.5</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Date for Determinations</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Committee shall make all determinations under Section 3.1 through 3.4
on or before the latest possible date that will not jeopardize a Target Award or
Actual Award&#146;s qualification as performance-based compensation under Section
162(m) of the Code. For Fiscal Year Performance Periods, such date is expected
to be the earlier of (i) 90 days after the commencement of each Performance
Period or (ii) the expiration of 25% of the Performance Period. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>3.6</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Determination of Actual Awards</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>After the end of each Performance Period, the Committee shall certify in
writing (for example, in its meeting minutes) the extent to which the
Performance Goals applicable to each Participant for the Performance Period were
achieved or exceeded, as determined by the Committee. The Actual Award for each
Participant shall be determined by applying the Payout Formula to the level of
actual performance which has been certified by the Committee. Notwithstanding
any contrary provision of the Plan, the Committee, in its sole discretion, may
(a) eliminate or reduce the Actual Award payable to any Participant below that
which otherwise would be payable under the Payout Formula, and (b) determine
what Actual Award, if any, will be paid in the event of a Termination of Service
prior to the end of the Performance Period. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>SECTION 4.</FONT><FONT face="Times New Roman" size=2> <BR></FONT><B><FONT face="Times New Roman" size=2>PAYMENT OF AWARDS</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>4.1</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Right to Receive Payment</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Each Actual Award that may become payable under the Plan shall be paid
solely from the general assets of the Company. Nothing in this Plan shall be
construed to create a trust or to </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>4</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>establish or evidence any Participant&#146;s
claim of any right other than as an unsecured general creditor with respect to
any payment to which he or she may be entitled. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>4.2</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Timing of Payment</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Payment of each Actual Award shall be made as soon as practicable, but no
later than two and one-half months after the end of the Performance Period
during which the Actual Award was earned. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>4.3</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Form of Payment</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Each Actual Award shall be paid in cash (or its equivalent) or Shares in
a single lump sum, except as otherwise determined by the Committee, in its sole
discretion. To the extent an Actual Award, in whole or in part, is payable in
Shares, such Shares shall be granted under the Company&#146;s 2012 Long-Term
Incentive Plan or such other shareholder approved plan of the Company providing
for payment of Shares as the Committee may determine. If (a) an Actual Award is
paid in Shares or (b) a Target Award denominated in Shares is paid in cash, the
number of Shares to be determined shall be determined by dividing the cash
amount otherwise payable by the closing per share selling price for Shares as
quoted on the New York Stock Exchange on the date payment of the Actual Award is
to be made. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>4.4</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Payment in the Event of Death</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>If a Participant dies prior to the payment of an Actual Award earned by
him or her prior to death for a prior Performance Period, the Award shall be
paid to administrator or representative of his or her estate, except as provided
in Section 6.6. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>SECTION 5.</FONT><FONT face="Times New Roman" size=2><BR></FONT><B><FONT face="Times New Roman" size=2>ADMINISTRATION</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>5.1</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Committee is the Administrator</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Plan shall be administered by the Committee. The Committee shall
consist of not less than two (2) members of the Board. The members of the
Committee shall be appointed from time to time by, and serve at the pleasure of,
the Board. Each member of the Committee shall qualify as an &#147;outside director&#148;
under Section 162(m) of the Code. If it is later determined that one or more
members of the Committee do not so qualify, actions taken by the Committee prior
to such determination shall be valid despite such failure to qualify. Unless
otherwise determined by the Board, the Plan shall be administered by the
Compensation Committee of the Board. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>5.2</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Committee Authority</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>It shall be the duty of the Committee to administer the Plan in
accordance with the Plan&#146;s provisions. The Committee shall have all powers and
discretion necessary or appropriate to administer the Plan and to control its
operation, including, but not limited to, the power to (a) determine which
Employees shall be granted awards, (b) prescribe the terms and conditions of
awards, (c) interpret the Plan and the awards, (d) adopt such procedures and
subplans as are </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>5</FONT></P>
<HR align=center width="100%" noShade size="2">

<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2>necessary or appropriate to permit
participation in the Plan by Employees who are foreign nationals or employed
outside of the United States, (e) adopt rules for the administration,
interpretation and application of the Plan as are consistent therewith, and (f)
interpret, amend or revoke any such rules. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>5.3</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Decisions Binding</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>All interpretations, determinations and decisions made by the Committee,
the Board, and any delegate of the Committee pursuant to the provisions of the
Plan shall be final, conclusive, and binding on all persons, and shall be given
the maximum deference permitted by law. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>5.4</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Delegation by the Committee</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Committee, in its sole discretion and on such terms and conditions as
it may provide, may delegate all or part of its authority and powers under the
Plan to one or more directors and/or officers of the Company; provided, however,
that the Committee may delegate its authority and powers only to the extent
consistent with applicable laws (including the provisions of Section 162(m) of
the Code to the extent applicable) and the rules and regulations of the
principal securities market on which the Company&#146;s securities are listed or
qualified for trading. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>SECTION 6.</FONT><FONT face="Times New Roman" size=2><BR></FONT><B><FONT face="Times New Roman" size=2>GENERAL PROVISIONS</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>6.1</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Tax Withholding</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Company (or an Affiliate) shall withhold all applicable taxes from
any Actual Award, including any federal, state, local and other taxes
(including, but not limited to, the Participant&#146;s FICA and SDI obligations).
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>6.2</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>No Effect on Employment or Service</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Nothing in the Plan shall interfere with or limit in any way the right of
the Company to terminate any Participant&#146;s employment or service at any time,
with or without cause. For purposes of the Plan, transfer of employment of a
Participant between the Company and any one of its Affiliates (or between
Affiliates) shall not be deemed a termination of employment or service.
Employment with the Company and its Affiliates is on an at-will basis only. The
Company and its Affiliates expressly reserve the right, which may be exercised
at any time and without regard to when during a Performance Period such exercise
occurs, to terminate any individual&#146;s employment or service with or without
cause, and to treat him or her without regard to the effect which such treatment
might have upon him or her as a Participant. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>6.3</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Participation</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>No Employee shall have the right to be selected to receive an award under
this Plan, or, having been so selected, to be selected to receive a future
award. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>6</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>6.4</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Indemnification</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Each person who is or shall have been a member of the Committee, or of
the Board, shall be indemnified and held harmless by the Company against and
from (a) any loss, cost, liability, or expense that may be imposed upon or
reasonably incurred by him or her in connection with or resulting from any
claim, action, suit, or proceeding to which he or she may be a party or in which
he or she may be involved by reason of any action taken or failure to act under
the Plan or any award, and (b) from any and all amounts paid by him or her in
settlement thereof, with the Company&#146;s approval, or paid by him or her in
satisfaction of any judgment in any such claim, action, suit, or proceeding
against him or her, provided he or she shall give the Company an opportunity, at
its own expense, to handle and defend the same before he or she undertakes to
handle and defend it on his or her own behalf. The foregoing right of
indemnification shall not be exclusive of any other rights of indemnification to
which such persons may be entitled under the Company&#146;s Certificate of
Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under
any power that the Company may have to indemnify them or hold them harmless.
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>6.5</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Successors</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>All obligations of the Company under the Plan, with respect to awards
granted hereunder, shall be binding on any successor to the Company, whether the
existence of such successor is the result of a direct or indirect purchase,
merger, consolidation, or otherwise, of all or substantially all of the business
or assets of the Company. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>6.6</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Beneficiary Designations</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>a.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Designation</FONT></U><FONT face="Times New Roman" size=2>. Each Participant may,
pursuant to such uniform and nondiscriminatory procedures as the Committee may
specify from time to time, designate one or more beneficiaries to receive any
Actual Award payable to the Participant at the time of his or her death.
Notwithstanding any contrary provision of this Section 6.6 shall be operative
only after (and for so long as) the Committee determines (on a uniform and
nondiscriminatory basis) to permit the designation of beneficiaries. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>b.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Changes</FONT></U><FONT face="Times New Roman" size=2>. A Participant may designate
different beneficiaries (or may revoke a prior beneficiary designation) at any
time by delivering a new designation (or revocation of a prior designation) in
like manner. Any designation or revocation shall be effective only if it is
received by the Committee. However, when so received, the designation or
revocation shall be effective as of the date the designation or revocation is
executed (whether or not the Participant still is living), but without prejudice
to the Committee on account of any payment made before the change is recorded.
The last effective designation received by the Committee shall supersede all
prior designations. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>c.</FONT><FONT face="Times New Roman" size=2> </FONT><U><FONT face="Times New Roman" size=2>Failed Designation</FONT></U><FONT face="Times New Roman" size=2>. If the Committee
does not make this Section 6.6 operative or if Participant dies without having
effectively designated a beneficiary, the Participant&#146;s Account shall be payable
to the general beneficiary shown on the records of the Employer. If no
beneficiary survives the Participant, the Participant&#146;s Account shall be payable
to his or her estate. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>7</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>6.7</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Nontransferability of Awards</FONT></U></B><FONT face="Times New Roman" size=2>
</FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>No award granted under the Plan may be sold, transferred, pledged,
assigned, or otherwise alienated or hypothecated, other than by will, by the
laws of descent and distribution, or to the limited extent provided in Section
6.6. All rights with respect to an award granted to a Participant shall be
available during his or her lifetime only to the Participant. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>6.8</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Deferrals</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Committee, in its sole discretion, may permit a Participant to defer
receipt of the payment of cash or Shares that would otherwise be delivered to a
Participant under the Plan. Any such deferral elections shall be subject to such
rules and procedures as shall be determined by the Committee in its sole
discretion and shall be under a plan or arrangement consistent with the
requirements of Section 409A of the Code. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>6.9</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Section 409A</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>It is intended that all bonuses payable under this Plan will be exempt
from the requirements of Section 409A pursuant to the &#147;short-term deferral&#148;
exemption or, in the alternative, will comply with the requirements of Section
409A so that none of the payments and benefits to be provided under this Plan
will be subject to the additional tax imposed under Section 409A, and any
ambiguities or ambiguous terms herein shall be interpreted to so comply or be
exempt. Each payment and benefit payable under this Plan is intended to
constitute a separate payment for purposes of Section 1.409A-2(b)(2) of the
Treasury Regulations. The Company may, in good faith and without the consent of
any Participant, make any amendments to this Plan and take such reasonable
actions which it deems necessary, appropriate or desirable to avoid imposition
of any additional tax or income recognition under Section 409A prior to actual
payment to the Participant </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>SECTION 7.</FONT><FONT face="Times New Roman" size=2> <BR></FONT><B><FONT face="Times New Roman" size=2>AMENDMENT, TERMINATION AND
DURATION</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>7.1</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Amendment, Suspension or Termination</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Board or the Committee, each in its sole discretion, may amend or
terminate the Plan, or any part thereof, at any time and for any reason. The
amendment, suspension or termination of the Plan shall not, without the consent
of the Participant, alter or impair any rights or obligations under any Target
Award theretofore granted to such Participant. No award may be granted during
any period of suspension or after termination of the Plan. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>7.2</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Duration of the Plan</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Plan shall commence on the date specified herein, and subject to
Section 7.1 (regarding the Board&#146;s or the Committee&#146;s right to amend or
terminate the Plan), shall remain in effect thereafter. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>8</FONT></P>
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<DIV style="PAGE-BREAK-BEFORE: always"></DIV><BR>
<P align=center><FONT face="Times New Roman" size=2>SECTION 8.</FONT><FONT face="Times New Roman" size=2><BR></FONT><B><FONT face="Times New Roman" size=2>LEGAL CONSTRUCTION</FONT></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>8.1</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Gender and Number</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Except where otherwise indicated by the context, any masculine term used
herein also shall include the feminine; the plural shall include the singular
and the singular shall include the plural. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>8.2</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Severability</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>In the event any provision of the Plan shall be held illegal or invalid
for any reason, the illegality or invalidity shall not affect the remaining
parts of the Plan, and the Plan shall be construed and enforced as if the
illegal or invalid provision had not been included. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>8.3</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Requirements of Law</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The granting of awards under the Plan shall be subject to all applicable
laws, rules and regulations, and to such approvals by any governmental agencies
or national securities exchanges as may be required. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>8.4</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Governing Law</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>The Plan and all awards shall be construed in accordance with and
governed by the laws of the State of California, but without regard to its
conflict of law provisions. </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>8.5</FONT><FONT face="Times New Roman" size=2> </FONT><B><U><FONT face="Times New Roman" size=2>Captions</FONT></U></B><FONT face="Times New Roman" size=2> </FONT></P>
<P align=justify><FONT face="Times New Roman" size=2><FONT size=3 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Captions are provided herein for convenience only, and shall not serve as
a basis for interpretation or construction of the Plan. </FONT></P>
<P align=center><FONT face="Times New Roman" size=2>9</FONT></P>
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