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66
be฀reduced฀during฀the฀term฀of฀the฀Right,฀nor฀will฀Rights฀be฀canceled฀in฀exchange฀for฀cash,฀other฀awards,฀or฀
newly issued Rights with an exercise price that is less than the exercise price of the original Rights without
shareholder฀approval฀(i.e.,฀Rights฀will฀not฀be฀“repriced”).
8. Performance Units
8.1฀ The฀Committee฀is฀hereby฀authorized฀to฀grant฀Performance฀Units฀to฀Employees฀and฀Directors.฀
8.2฀ Performance฀Units฀may฀be฀granted฀under฀the฀Plan:฀
฀ (a)฀ in฀connection฀with,฀and฀at฀the฀same฀time฀as,฀the฀grant฀of฀an฀Option฀under฀the฀Plan;฀or฀
฀ (b)฀ independently฀of฀any฀Option฀granted฀under฀the฀Plan.฀
A฀ Performance฀ Unit฀ granted฀ under฀ clause฀ (a)฀ of฀ the฀ preceding฀ sentence฀ is฀ a฀ Related฀ Performance฀ Unit.฀ A฀
Related฀Performance฀Unit฀may,฀in฀the฀Committee’s฀discretion,฀apply฀to฀all฀or฀a฀portion฀of฀the฀shares฀subject฀to฀
the Related Option.
8.3฀ A฀ Performance฀ Unit฀ may฀ be฀ exercised฀ in฀ whole฀ or฀ in฀ part,฀ or฀ automatically฀ may฀ be฀ deemed฀
exercised฀ upon฀ satisfaction฀ of฀ the฀ Performance฀ Goals,฀ as฀ provided฀ in฀ the฀ Agreement,฀ and,฀ subject฀ to฀ the฀
provisions of the Agreement, entitles its Optionee to receive, without any payment to the Company (other
than฀required฀income฀tax฀withholding฀amounts),฀cash,฀Shares฀ or฀a฀combination฀of฀cash฀and฀Shares,฀based฀
upon฀the฀degree฀to฀which฀Performance฀Goals฀established฀by฀the฀Committee฀and฀specified฀in฀the฀Agreement฀
have฀been฀achieved.฀
8.4฀ The฀Performance฀Unit฀Period฀will฀be฀determined฀by฀the฀Committee฀and฀specifically฀set฀forth฀in฀
the฀Agreement,฀provided,฀however฀--
฀ (a)฀ a฀Performance฀Unit฀may฀not฀be฀exercised฀before฀the฀expiration฀of฀six฀months฀from฀the฀
Date฀of฀Grant฀(except฀that฀this฀limitation฀need฀not฀apply฀in฀the฀event฀of฀the฀death฀or฀disability฀of฀the฀Optionee฀
within฀the฀six-month฀period);฀and฀
฀ (b)฀ a฀Performance฀Unit฀will฀expire฀no฀later฀than฀the฀earlier฀of฀(i)฀ten฀years฀from฀the฀Date฀of฀
Grant,฀or฀(ii)฀in฀the฀case฀of฀a฀Related฀Performance฀Unit,฀the฀expiration฀of฀the฀Related฀Option.฀
8.5฀ Each฀ Agreement฀ granting฀ Performance฀ Units฀ will฀ specify฀ the฀ number฀ of฀ Performance฀ Units฀
granted;฀provided,฀however,฀that฀the฀maximum฀number฀of฀Related฀Performance฀Units฀may฀not฀exceed฀the฀
maximum฀number฀of฀Shares฀subject฀to฀the฀Related฀Option.฀
8.6฀ The฀exercise,฀in฀whole฀or฀in฀part,฀of฀Related฀Performance฀Units฀will฀cause฀a฀reduction฀in฀the฀
number฀of฀Shares฀subject฀to฀the฀Related฀Option฀and฀the฀number฀of฀Performance฀Units฀in฀accordance฀with฀the฀
terms฀of฀the฀Agreement.฀Similarly,฀the฀exercise,฀in฀whole฀or฀in฀part,฀of฀a฀Related฀Option,฀will฀cause฀a฀reduction฀
in฀the฀number฀of฀Shares฀subject฀to฀the฀Related฀Performance฀Unit฀equal฀to฀the฀number฀of฀Shares฀with฀respect฀
to which the Related Option is exercised.
8.7฀ Performance฀Units฀granted฀under฀the฀Plan,฀to฀the฀extent฀determined฀by฀the฀Committee,฀will฀
comply฀with฀the฀requirements฀of฀Rule฀16b-3฀under฀the฀Exchange฀Act฀during฀the฀term฀of฀this฀Plan.฀Should฀any฀
additional฀provisions฀be฀necessary฀for฀this฀Article฀8฀to฀comply฀with฀the฀requirements฀of฀Rule฀16b-3฀or฀any฀
other฀applicable฀rule฀or฀regulation,฀the฀Board฀may฀amend฀this฀Plan฀to฀delete,฀add฀to฀or฀modify฀the฀provisions฀
of฀the฀Plan฀accordingly,฀subject฀to฀the฀provisions฀of฀Article฀14,฀if฀applicable.฀The฀Company฀intends฀to฀comply,฀
if฀and฀to฀the฀extent฀applicable,฀with฀the฀requirements฀of฀Rule฀16b-3;฀however,฀the฀Company’s฀failure฀for฀any฀
reason฀whatsoever฀to฀comply฀with฀such฀requirements฀will฀not฀impose฀any฀liability฀on฀the฀Company฀to฀any฀
Optionee or any other party.
8.8฀ To฀ the฀extent฀required฀by฀Rule฀ 16b-3฀ under฀ the฀Exchange฀Act฀ or฀ otherwise฀ provided฀in฀ the฀
Agreement, the Committee will have sole discretion to consent to or disapprove the election of any Optionee
to฀receive฀cash฀in฀full฀or฀partial฀settlement฀of฀a฀Performance฀Unit.฀In฀cases฀where฀an฀election฀of฀settlement฀in฀
cash฀must฀be฀consented฀to฀by฀the฀Committee,฀the฀Committee฀may฀consent฀to,฀or฀disapprove,฀such฀election฀at฀
any฀time฀after฀such฀election,฀or฀within฀such฀period฀for฀taking฀action฀as฀is฀specified฀in฀the฀election,฀and฀failure฀
to฀give฀consent฀will฀be฀disapproval.฀Consent฀may฀be฀given฀in฀whole฀or฀as฀to฀a฀portion฀of฀the฀Performance฀