AFFILIATED COMPUTER SERVICES,
INC.
1997 STOCK INCENTIVE PLAN
FOR EMPLOYEES IN FRANCE
The Board of
Directors (the “Board”) of Affiliated Computer
Services, Inc. (the “Company”) has adopted the
Affiliated Computer Services, Inc. 1997 Stock Incentive Plan (the
“U.S. Plan”) for the benefit of certain employees of
the Company, its parent subsidiaries and affiliate companies,
including its French subsidiary(ies) (the “ French
Entity”) of which the Company holds directly or indirectly at
least 10% of the share capital.
Section 4(b)(vi)
of the U.S. Plan generally permits the committee designated by the
Board to administer the U.S. Plan (the “Committee”) to
establish sub-plans, construe and interpret the U.S. Plan and any
benefits granted, to change the terms and conditions of the Options
and to make all others determinations which deemed necessary or
desirable by the Committee to comply with the applicable local laws
and to facilitate compliance with the tax, securities, foreign
exchange, probate or other applicable provisions of the laws in
other countries (including France). The Committee has determined
that it is desirable to establish a sub-plan for the purposes of
permitting the options to qualify for favorable local tax and
social security treatment in France (the “Optionee”).
The Committee, therefore, intends to establish a sub-plan of the
U.S. Plan for the purpose of granting options which intend to
qualify for the favorable tax and social security treatment in
France applicable to options granted under the Sections L.
225-177 to L. 225-186 of the French Commercial Code, as amended, to
qualifying employees who are resident in France for French tax
purposes and/or subject to the French social security contributions
regime. The terms of the U.S. Plan, as set out in Appendix 1
hereto, shall, subject to the modifications in the following rules,
constitute the Affiliated Computer Services, Inc. 1997 Stock
Incentive Plan for Employees in France (the “French
Sub-Plan”).
Under the French
Sub-Plan, the eligible employees may be granted Options only as
defined in Section 2 hereunder. The Company shall not be
permitted to grant Stock Purchase Rights, Stock Appreciation
Rights, Restricted Stock, Deferred Stock or Dividend Equivalents
under the French Sub-Plan.
Capitalized terms
not otherwise defined herein shall have the same meanings as set
forth in the U.S. Plan. The terms set out below will have the
following meanings:
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(a)
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The
term “Option” shall have the following
meaning:
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(1)
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Purchase Stock Options that are
rights to acquire Shares repurchased by the Company prior to the
vesting of the options; or
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(2)
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Subscription Stock Options that are
rights to subscribe for newly issued Shares;
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1997 Stock Incentive Plan for Employees in France — Page 1 of
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(b)
The term “Closed Period” shall mean the specific
periods as set forth by Section L. 225-177 of the French
Commercial Code, as amended, during which French qualifying options
cannot be granted, so long as such Closed Periods are applicable to
Options, as described in Section 8 below;
(c)
Notwithstanding any provisions in the U.S. Plan to the contrary,
the term “Date of Grant” shall be the date on which the
Committee both (i) designates the Optionee and
(ii) specifies the terms and conditions of the Option
including the number of Shares and the method for determining the
Exercise Price. In no event shall the Date of Grant be during a
Closed Period, as long as said Closed Periods and any subsequent
Closed Periods applicable to Options, as described in
Section 8 below;
(d)
The term “Disability” is defined in categories 2 and 3
under Section L. 341-4 of the French Social Security Code and
subject to the fulfillment of related conditions.
3.
Entitlement to Participate .
(a)
Subject to Section 3(b) below, any individual who, on the Date of
Grant, and to the extend required under French law, is either
employed under the terms and conditions of an employment contract
(“ contrat de travail ”) by a French Entity or
who is a corporate officer of the French Entity, shall be eligible
to receive Options under the French Sub-Plan, provided that he or
she also satisfies the eligibility conditions of Section 5 of
the U.S. Plan.
(b)
Notwithstanding any provisions in the U.S. Plan to the contrary,
Options may not be granted under the French Sub-Plan to employees
or corporate officers owning more than ten percent (10%) of the
Company’s share capital and who otherwise satisfy the
eligibility conditions of Section 5 of the U.S.
Plan.
(c)
Options may not be issued to corporate executives of the French
Entity, other than managing directors (Président du Conseil
d’Administration, Directeur Général, Directeur
Général Délégué, Membre du Directoire,
Gérant de sociétés par actions), unless they are
employed by the French Entity, as defined by French law.
4.
Conditions of the Option/Purchase Price .
(a)
Notwithstanding any provisions in the U.S. Plan to the contrary,
the terms and conditions of the Options shall not be modified after
the Date of Grant with retroactive effect except as provided in
Section 6 hereunder or as otherwise keeping with French
law.
(b)
The method for determining the Exercise Price payable per Share
pursuant to Options issued hereunder shall be fixed by the
Committee on the Date of Grant, but in no event shall the Exercise
Price per Share be less than the greatest of:
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(1)
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With respect to Purchase Stock
Options over Shares: the higher of either 80% of the average
quotation price of such Shares during the 20 days of quotation
immediately preceding the Date of Grant or 80% of the average
purchase price paid for such Shares by the Company;
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1997 Stock Incentive Plan for Employees in France — Page 2 of
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(2)
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With respect to Subscription Stock
Options over Shares: 80% of the average quotation price of such
Shares during the 20 quotation days immediately preceding the Date
of Grant; and
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(3)
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The
Exercise Price authorized by the U.S. Plan.
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5.
Exercise of an Option .
(a)
Notwithstanding any provisions in the U.S. Plan to the contrary,
upon exercise of an Option, the full Exercise Price and any
required tax and/or social charges to be withheld by the French
Entity or the Company on behalf of the Optionee must be paid either
in cash, by check or by wire transfer, exclusive of any other
method of payment. Under a cashless exercise program, if authorized
by the Company, the Optionee may also give irrevocable instructions
to a stockbroker to properly deliver the Exercise Price to the
Company. Notwithstanding any provisions in the U.S. Plan to the
contrary, no delivery of prior owned Shares having a fair market
value on the date of delivery equal to the aggregate Exercise Price
of the Shares may be used as consideration for exercising an
Option.
(b)
At the time an Option is granted, the Committee shall fix the
period within which the Option vests and may be exercised and shall
determine any conditions that must be satisfied before the Option
may be exercised. Specifically, the Committee may provide for a
restriction period measured from the Grant Date for the vesting or
exercise of the Option or for the sale of Shares acquired pursuant
to the exercise of an Option, designed to obtain the favorable tax
and social security treatment pursuant to Section 163 bis C of
the French Tax Code. Nevertheless, the restriction on the sale of
the Shares cannot exceed three (3) years as from the exercise
of the Options. Such restriction period on the vesting or exercise
of Options or the sale of Shares shall be set forth in the Stock
Option Agreement.
(c)
Notwithstanding any provisions in the U.S. Plan to the contrary, if
an Optionee’s employment by the French Entity terminates by
reason of his or her death, his or her outstanding Options shall
thereafter be immediately exercisable under the conditions set
forth by Section 9 of this French Sub-Plan. Any Options which
remain unexercised shall expire six months following the date of
the Optionee’s death.
(d)
Notwithstanding any provisions in the U.S. Plan to the contrary, if
an Optionee’s employment by the French Entity terminates by
reason of Disability (as defined in this French Sub-Plan), his or
her Options may be exercised as provided in the Stock Option
Agreement.
(e)
The Shares acquired upon exercise of the Option will be recorded in
an account in the name of the shareholder with a broker or in such
other manner as the Company may otherwise determined in order to
ensure compliance with applicable law.
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6.
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Change in Control / Change in
Capitalization / Adjustments / Assumptions /
Substitutions .
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Adjustments of the
Options issued hereunder shall be made to preclude the dilution or
enlargement of benefits under the Option only in the event of the
transactions by the Company listed under Section L. 225-181 of
the French Commercial Code, as amended, and in case of a
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1997 Stock Incentive Plan for Employees in France — Page 3 of
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repurchase of
Shares by the Company at the price higher than the stock quotation
price in the open market, and according to the provisions of
Section L. 228-99 of the French Commercial Code, as amended,
as well as according to specific decrees.
In the event of an
adjustment, assumption or substitution as set forth in Sections
10(a) and 17 of the U.S. Plan, adjustments to the terms and
conditions of the French-qualified Options or underlying Shares of
Common Stock may be made only in accordance with the U.S. Plan and
pursuant to applicable French legal and tax rules. Nevertheless,
the Board, at its discretion, may determine to make adjustments in
the case of a transaction for which adjustments are not authorized
under French law, in which case the French-qualified Options may no
longer qualify as French-qualified Options.
Assumption or
substitution of the Options in case of a corporate transaction as
defined under Sections 10(a) and 17 of the U.S. Plan as well as an
acceleration of the vesting and exercisability of the Options or
other mechanism implemented upon such corporate transactions to
compensate the Optionees may result in the Options being no longer
eligible to the French favorable tax and social security
regime.
If the Options no
longer qualify as French-qualified Options, the Committee may, in
its sole discretion, determine to lift, shorten or terminate
certain restrictions applicable to the vesting or exercisability of
the Options or to the sale of the Shares underlying the Options
which have been imposed under this French Sub-Plan or in the Stock
Option Agreement delivered to the Optionee in order to achieve the
favorable tax and social security treatment for French-qualified
Options.
7.
Disqualification of Options.
In the event
changes are made to the terms and conditions of the Options due to
any requirements under the applicable laws of incorporation of the
Company, or by decision of the Company’s shareholders, the
Committee, the Options may no longer qualify as respectively
French-qualified Options.
If the Options no
longer qualify as French-qualified Options, the Committee may, in
its sole discretion, determine to lift, shorten or terminate
certain restrictions applicable to the vesting or exercisability of
the Options or to the sale of the Shares underlying the Options
which have been imposed under this French Sub-Plan or in the Stock
Option Agreement delivered to the Optionee in order to achieve the
favorable tax and social security treatment for French-qualified
Options.
Notwithstanding
any provisions in the U.S. Plan to the contrary and because Shares
of the Company are traded on a regulated market, Options shall not
be granted to Optionees during the Closed Periods defined by
Section L. 225-177 of the French Commercial Code, as amended,
so long as such Closed Periods are applicable to the Options. The
term Closed Period means
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(i)
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ten
quotation days preceding and following the disclosure to the public
of the consolidated financial statements or the annual statements
of the Company; or
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1997 Stock Incentive Plan for Employees in France — Page 4 of
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(ii)
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the
period as from the date the corporate management entities (involved
in the governance of the company, such as the Board, Committee and
supervisory directorate) of the Company know of information which
could, in the case it would be disclosed to the public,
significantly impact the quotation of the Shares of the Company,
until ten quotation days after the day such information is
disclosed to the public.
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If the Date of
Grant to non-French employees and corporate officers were to occur
during an applicable Closed Period, the Date of Grant for French
Optionees shall be the first date following the expiration of the
Closed Period or any subsequent Closed Periods which would not be a
prohibited Date of Grant under the U.S. Plan rules, as determined
by the Board, the Committee or a duly empowered person.
In the event of
the death of an Optionee, all Options shall become immediately
vested and exercisable. The Optionee’s heirs may exercise the
Options within six (6) months following the death, but any
outstanding Option which remains unexercised shall expire six
(6) months following the date of the Optionee’s Death.
The six (6) -month exercise period will apply without regard to the
term of the Option, as set forth in Section 10
below.
The term of the
Options granted under this French Sub-Plan will be nine years and
six months (9-1/2). This term can only be extended in the event of
the death of the Optionee, and in no event will the term exceed ten
years.
Notwithstanding
any provision on the contrary in the U.S. Plan, the Option is not
transferable, except by will or by the laws of descent and
distribution, and is exercisable during the life of the Optionee
life only by the Optionee.
The Buy-Out
provisions as described in Section 9(f) of the U.S. Plan is not
applicable to Optionees.
It is intended
that Options granted under the French Plan shall qualify for the
favorable tax and social security charges treatment applicable to
Options granted under Sections
L. 225-177 to
L. 225-186 of the French Commercial Code, as amended, and in
accordance with the relevant provisions set forth by French tax law
and the French tax administration, but no undertaking is made to
maintain such status. The terms of the French Sub-Plan shall be
interpreted accordingly and in accordance with the relevant
provisions set forth by French tax and social security laws, as
well as the French tax and social security administrations and
the
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1997 Stock Incentive Plan for Employees in France — Page 5 of
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relevant
guidelines released by the French tax and social insurance
authorities and subject to the fulfilment of legal, tax and
reporting obligations.
In the event of
any conflict between the provisions of this French Sub-Plan and the
U.S. Plan, the provisions of the French Sub-Plan shall control for
any grants made to Optionees.
The adoption of
this French Sub-Plan shall not confer upon the Optionees any
employment rights and shall not be construed as part of the
Optionees’ employment contracts, if any.
Subject to the
terms of the U.S. Plan, the Committee reserves the right to amend
or terminate this French Sub-Plan at any time. Such amendments
would only apply to future grants and would not be
retroactive.
The French
Sub-Plan was adopted by the Company effective December 8, 2006
and actions of the Company were ratified by the Compensation
Committee of the Company’s Board of Directors on December 9,
2006.
Affiliated
Computer Services, Inc.
1997 Stock Incentive Plan for Employees in France — Page 6 of
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AFFILIATED COMPUTER SERVICES,
INC.
1997 STOCK INCENTIVE PLAN
AFFILIATED COMPUTER SERVICES,
INC.
1997 STOCK INCENTIVE PLAN
1.
Purposes of the Plan. The purposes of this Plan are to
attract and retain the best available personnel for positions of
substantial responsibility, to provide additional incentive to
Employees, Non-Employee Directors and Consultants of the Company
and its Subsidiaries and to promote the success of the
Company’s business. Options granted under the Plan may be
incentive stock options (as defined under Section 422 of the
Code) or non-statutory stock options, as determined by the
Administrator at the time of grant of an option. Stock purchase
rights, stock appreciation rights, deferred stock, dividend
equivalents and restricted stock may also be granted under the
Plan. It is intended that certain Performance Based Grants made to
“covered employees” (as defined in Code
Section 162(m)(3)) will qualify as performance based
compensation under Code Section 162(m)(4)(C), and the
pertinent provisions of the Plan shall be interpreted
accordingly.
2.
Definitions. As used herein, the following definitions shall
apply:
(a)
“Administrator” means the Board or any of its
Committees appointed pursuant to Section 4 of the Plan, acting
pursuant to Section 4(a) of the Plan at the time in
question.
(b)
“Board” means the Board of Directors of the
Company.
(c)
“Code” means the Internal Revenue Code of 1986,
as amended.
(d)
“Committee” means a committee or committees
appointed by the Board of Directors in accordance with paragraph
(a) of Section 4 of the Plan.
(e)
“Common Stock” means the Class A Common
Stock of the Company, provided that if the Company’s
certificate of incorporation is amended after the date hereof to
reclassify any shares of the Company’s stock, “Common
Stock” shall include any shares reclassified as Class A
Common Stock or any other class of common stock of the
Company.
(f)
“Company” means Affiliated Computer Services,
Inc., a Delaware corporation.
(g)
“Consultant” means a member of any advisory
board of the Company or any Parent or Subsidiary and any person,
including an advisor, who is engaged by the Company or any Parent
or Subsidiary to render services and is compensated for such
services; provided that the term Consultant shall not include
directors who are paid only a director’s fee by the Company,
except if such director is a member of any advisory board of the
Company or any Parent or Subsidiary.
(h)
“Continuous Status as an Employee” means the
absence of any interruption or termination of the employment
relationship by the Company or any Subsidiary. Continuous Status as
an Employee shall not be considered interrupted in the case of:
(i) sick leave; (ii) military leave; (iii) any other
leave of absence approved by the Board, unless reemployment upon
the expiration of such leave is guaranteed by contract or statute,
or unless provided otherwise pursuant to Company policy adopted
from time to time; or (iv) in the case of transfers between
locations of the Company or between the Company, its Subsidiaries
or its successor.
(i)
“Deferred Stock” means a grant of Shares to be
issued at a deferred date pursuant to Section 15(a)
below.
Affiliated
Computer Services, Inc.
1997 Stock Incentive Plan — Page 1 of 15
(j)
“Dividend Equivalent” means a grant of rights
described in Section 15(b) below.
(k)
“Employee” means any person, including officers
and directors, employed by the Company or any Parent or Subsidiary
of the Company. The payment of a director’s fee by the
Company shall not be sufficient to constitute
“employment” by the Company.
(l)
“Exchange Act” means the Securities Exchange Act
of 1934, as amended.
(m) “Fair
Market Value” means, as of any date, the value of Common
Stock determined as follows:
(i) If the Common
Stock is listed on any established stock exchange or a national
market system including, without limitation, the New York Stock
Exchange (“NYSE”) its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales
were reported, as quoted on such system or exchange for the last
market trading day prior to the time of determination) as reported
in the Wall Street Journal or such other source as the
Administrator deems reliable;
(ii) If the Common
Stock is quoted on the NASDAQ System (but not on the National
Market System thereof) or regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean between the high and low asked
prices for the Common Stock; or
(iii) In the
absence of an established market for the Common Stock, the Fair
Market Value thereof shall be determined in good faith by the
Administrator based upon the book value of the Company (or such
other valuation method as is deemed appropriate by the
Administrator).
(n)
“Incentive Stock Option” means an Option
intended to qualify as an incentive stock option within the meaning
of Section 422 of the Code.
(o)
“Non-Employee Director” means a director of the
Company who is not an Employee.
(p)
“Nonstatutory Stock Option” means an Option not
intended to qualify as an Incentive Stock Option.
(q)
“Option” means a stock option granted pursuant
to the Plan.
(r)
“Optioned Stock” means the Common Stock subject
to an Option.
(s)
“Optionee” means an Employee or Consultant who
receives an Option.
(t)
“Parent” means, for purposes of issuance of
Incentive Stock Options under the Plan, a “parent
corporation,” whether now or hereafter existing, as defined
in Section 425(e) of the Code.
(u)
“Performance Based Grant” means an Option or
Stock Appreciation Right granted to a “covered
employee” (as defined in Code Section 162(m)(3)) that
the Administrator designates as a “Performance Based
Grant.” Provided, that nothing in the Plan shall be construed
to prevent the
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Computer Services, Inc.
1997 Stock Incentive Plan — Page 2 of 15
issuance of
Options or other rights to such “covered employees”
that are not Performance Based Grants if the Administrator so
elects.
(v)
“Plan” means this 1997 Stock Plan, as
amended.
(w)
“Restricted Stock” means shares of Common Stock
acquired pursuant to a grant of Stock Purchase Rights under
Section 12 of the Plan or a Restricted Stock Grant pursuant to
Section 14 of the Plan.
(x)
“Severance Agreement” means a severance
agreement or arrangement between the Company and any executive
officer of the Company.
(y)
“Share” means a share of the Common Stock, as
adjusted in accordance with Section 17 of the Plan.
(z)
“Stock Appreciation Right” means an award of a
right to benefit from the appreciation of Common Stock granted
pursuant to Section 13 of the Plan.
(aa)
“Subsidiary” means, for purposes of issuance of
Incentive Stock Options under the Plan, a “subsidiary
corporation”, whether now or hereafter existing, as defined
in Section 425(f) of the Code.
3. Stock
Subject to the Plan. The maximum aggregate number of Shares
which may be optioned, sold, granted, or otherwise issued under the
Plan shall initially be 3,675,000, which amount may, at the
discretion of the Board, be increased from time to time to a number
such that the sum of (a) the number of shares of Common Stock
covered by then outstanding options granted pursuant to the
Company’s 1988 Stock Option Plan and held by current
employees and consultants, as defined in such plan, (b) the
number of shares of Common Stock covered by their outstanding
options granted pursuant to this Plan and held by current
Employees, Consultants and Non-Employee Directors, and (c) the
number of shares of Common Stock available for issuance pursuant to
options to be granted pursuant to this Plan equals 12.8% of the
total number of Shares of Common Stock of the Company and shares of
any other class of common stock of the Company outstanding from
time to time; provided however, subject to adjustment under
Section 17 of the Plan, the number of Shares which may be
optioned, sold, granted, or otherwise issued under the Plan shall
never be less than 3,675,000. The Shares may be authorized, but
unissued, or reacquired Common Stock. Notwithstanding the
foregoing, subject to adjustment under Section 17 of the Plan,
no more than 3,675,000 Shares will be available for the granting of
Incentive Stock Options under the Plan.
If an Option
should expire or become unexercisable for any reason without having
been exercised in full, or other rights to Shares granted under the
Plan should lapse or be forfeited, the unpurchased, unissued or
forfeited Shares which were subject thereto shall, unless the Plan
shall have been terminated, become available for future grant under
the Plan.
4.
Administration of the Plan.
(i)
Administration with Respect to Directors and Officers. With
respect to grants of Options, Stock Purchase Rights and other
rights and awards hereunder to Employees who are also officers or
directors of the Company, the Plan shall be administered by
(A) the Board if the Board may administer the Plan in
compliance with Rule 16b-3 promulgated under the Exchange Act
or any successor thereto (“Rule 16b-3”)
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1997 Stock Incentive Plan — Page 3 of 15
with respect to
a plan intended to qualify thereunder as a discretionary plan, or
(B) a Committee designated by the Board to administer the
Plan, which Committee shall be constituted in such a manner as to
permit the Plan to comply with Rule 16b-3 with respect to a plan
intended to qualify thereunder as a discretionary plan. With
respect to grants to Non-Employee Directors under the Plan, the
Plan shall be administered by the Board in accordance with
Rule 16b-3, provided that no Non-Employee Director shall vote
on any decision affecting his individual benefits under the Plan.
Once appointed, such Committee shall continue to serve in its
designated capacity until otherwise directed by the Board.
Notwithstanding the foregoing, with respect to Performance Based
Grants to any “covered employee” (as defined in Code
Section 162(m)), the Plan shall be administered by a Committee
of the Board comprised solely of two or more outside directors (as
defined in Code Section 162(m)(4)(C)). From time to time the
Board may increase the size of the Committee and appoint additional
members thereof, remove members (with or without cause) and appoint
new members in substitution therefor, fill vacancies, however
caused, and remove all members of the Committee and thereafter
directly administer the Plan, all to the extent permitted by
Rule 16b-3 with respect to a plan intended to qualify
thereunder as a discretionary plan.
(ii) Multiple
Administrative Bodies. If permitted by Rule 16b-3, the
Plan may be administered by different bodies with respect to
directors, non-director officers and Employees who are neither
directors nor officers.
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