STEIN MART INC
MANAGEMENT INCENTIVE COMPENSATION PLAN
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<DESCRIPTION>MANAGEMENT INCENTIVE COMPENSATION PLAN
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.1 </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>STEIN MART, INC. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>MANAGEMENT INCENTIVE COMPENSATION PLAN </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>(<U>As Amended June&nbsp;6, 2006</U>) </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman"
SIZE="2">SECTION 1. <I>Purpose. </I>The purpose of the Stein Mart Inc. Management Incentive Compensation Plan (the &#147;<B>Plan&#148;</B>) is to attract, retain and motivate highly qualified individuals who are key employees of Stein Mart, Inc.
(&#147;<B>Stein Mart</B>&#148;) and its subsidiaries (together called the &#147;<B>Company</B>&#148;); to attract and retain the most qualified employees; to obtain the best possible performance from each Participant; to further underscore the
importance of achieving particular business objectives established for Stein Mart; and to include in Participants&#146; compensation package a bonus component that is tied directly to the achievement of those objectives. Such bonus component is
intended to qualify as performance-based compensation under Section&nbsp;162(m) of the Internal Revenue Code of 1986, as amended from time to time (the &#147;<B>Code</B>&#148;), and the Plan shall be interpreted accordingly. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">SECTION 2. <I>Definitions. </I>For the purposes of the Plan, the following terms shall have the following meanings: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Awards</I>&#148; shall mean the incentive awards made pursuant to the Plan. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Board of Directors</I>&#148; shall mean the Board of Directors of the Company. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Code</I>&#148; shall have the meaning set forth in Section&nbsp;1. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Committee</I>&#148; shall mean the Compensation Committee of the Board of Directors. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Company</I>&#148; shall have the meaning set forth in Section&nbsp;1. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Covered Person</I>&#148; shall have the meaning set forth in Section&nbsp;12(f). </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Eligible Employee</I>&#148; shall mean an Employee who is a key member of management of the Company, as determined by the Committee. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Employee</I>&#148; shall mean an individual who is on the active payroll of the Company at any time during the period for which an Award is
made under the Plan. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Establishment Period</I>&#148; shall have the meaning set forth in Section&nbsp;5. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Participant</I>&#148; shall mean an Eligible Employee who is selected by the Committee to participate in the Plan. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Performance Goals</I>&#148; shall mean the goals for the performance of the Company or a division of the Company set by the Committee from time
to time in connection with the grant of Performance Shares. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Performance Period</I>&#148; shall mean a full fiscal year of the
Company unless, to the extent consistent with Section&nbsp;162(m) of the Code, otherwise determined by the Committee. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Performance
Shares&#148;</I> shall mean shares of the Company&#146;s common stock which shall be earned and issued only if and to the extent certain prospective Performance Goals as provided herein or as set forth in the Award for such shares are met during the
Performance Period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Plan</I>&#148; shall have the meaning set forth in Section&nbsp;1. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">&#147;<I>Stein Mart</I>&#148; shall have the meaning set forth in Section&nbsp;1. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">SECTION 3. <I>Effective Date; Term. </I>The Plan is effective as of February&nbsp;1, 2006, subject to approval by the Company&#146;s stockholders at the
Company&#146;s 2006 Annual Meeting of Stockholders, and, subject to Section&nbsp;9, shall remain in effect until such time as it shall be terminated or modified by the Board of Directors. The Plan supersedes all previous bonus plans for
Participants. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">SECTION 4. <I>Maximum Awards. </I>Awards payable with respect to any fiscal year of the Company to any Participant shall not
exceed $2,000,000. Moreover, the aggregate of all Long-Term Incentive Compensation grants made in options and Performance Shares) made annually shall be limited to no more than 2.2% of all outstanding shares of the Company&#146;s common stock.
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">SECTION 5. <I>Eligibility.</I> </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) <I>Establishment Period</I>. Within the first 90 days of the applicable Performance Period (or, if shorter, within the maximum period allowed under
Section&nbsp;162(m) of the Code) (the &#147;<B>Establishment Period</B>&#148;), the Committee shall select those Eligible Employees who shall participate in the Plan for such Performance Period. In determining those Eligible Employees who are
selected to participate in the Plan, the Committee shall give consideration to the contribution made by the Employee to the achievement of Stein Mart&#146;s established objectives and such other matters as it shall deem relevant. The Committee shall
have the authority at any time prior to the payment of Awards for the applicable Performance Period to remove Participants from the Plan for that Performance Period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">(b) <I>Employment</I>. To be eligible to receive an Award, the Eligible Employee must be employed through the last day of the Performance Period. Notwithstanding the foregoing, in the discretion of the Committee,
Awards may be made to Eligible Employees who have retired or whose employment has terminated after the beginning of the Performance Period for which an Award is made, or to the designee or estate of an Eligible Employee who died prior to the date on
which Stein Mart makes payments with respect to Awards for the applicable Performance Period, but not unless and until the Committee has certified attainment of the relevant performance goals in accordance with Section&nbsp;7(b). </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">SECTION 6. <I>Awards.</I> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) <I>Terms</I>.
Subject to the terms of the Plan, the Committee shall have the authority to determine the terms of any Award. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) <I>Committee Actions in
Establishment Period</I>. Within the Establishment Period, the Committee shall establish in writing (i)&nbsp;the length of the Performance Period, (ii)&nbsp;the Eligible Employees who shall participate in the applicable Performance Period, and
(iii)&nbsp;the performance goal(s) for Awards granted for that Performance Period. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(c) <I>Performance Goals</I>. </FONT></P> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="8%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">i.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><I>General</I>. The performance goal(s) that may be selected by the Committee shall be based upon one or more of the following criteria: revenue, net cash provided by operations,
return on assets, return on equity, operating income, gross or operating margins, net income before or after taxes, total earnings, net operating profit, basic or diluted earnings per share (EPS), total shareholder return (TSR), relative (versus an
index or peer group) TSR, or stock price. The foregoing criteria may, as determined by the Committee, relate to the Company, one or more of its subsidiaries, affiliates, divisions or operational units, or any combination of the foregoing, and may be
applied on an absolute basis and/or be relative to one or more peer companies or indices or any combination thereof. To the extent required under Section&nbsp;162(m) of the Code, within the Establishment Period, the Committee shall define, in
writing and in an objective fashion, the manner of calculating the performance criteria it selects to use for the applicable Performance Period in order to determine whether the applicable performance goal(s) have been attained.
</FONT></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">ii.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><I>Initial Goals. </I>Unless and until modified by the Committee, under the Long-Term Compensation component of the Management Compensation Plan, the Performance Shares would be
earned (and issued) only if the aggregate EPS goals as established in a plan for a three year rolling period are achieved. 50% of the Performance Shares will be earned if the aggregate three year EPS equals the Threshold (85% of plan), 100% of the
Performance Shares will be earned if the aggregate three year EPS equals the Target (100% of plan), and 150% of the Performance Shares will be earned if the aggregate three year EPS equals Superior (115% of plan). The Stock Option component of
Long-Term Compensation would continue to be subject to the vesting requirements of five years, with 1/3 vesting in each of the third, fourth and fifth years, </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">iii.</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><I>Special Adjustment for Top Executives.</I> In addition to the Performance Goals set by the Committee, the number of Performance Shares which shall be retained by the top five
executive officers of the Company shall increase or decrease the aggregate value of the Long-Term Compensation Performance Share awards by 20% in either direction based on how the Total Shareholder Return for the Company over a three year rolling
period compares to the Total Shareholder Return achieved by the Company&#146;s peer group as calculated in the Dow Jones U.S. Apparel Retail Index. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(d) <I>Modifications</I>. The Committee is authorized at any time during the Establishment Period, or any
time thereafter (but only to the extent the exercise of such authority after the Establishment Period would not cause the applicable Awards to fail to qualify as &#147;qualified performance-based compensation&#148; under Section&nbsp;162(m) of the
Code), in its sole and absolute discretion, to adjust or modify the calculation of performance goal(s) for the applicable Performance Period to the extent permitted under Section&nbsp;162(m) of the Code (i)&nbsp;in the event of, or in anticipation
of, any unusual or extraordinary corporate item, transaction, event or development affecting the Company, or any of its subsidiaries, affiliates, divisions or operating units (to the extent applicable to such performance goal(s)) or (ii)&nbsp;in
recognition of, or in anticipation of, any other unusual or nonrecurring events affecting the Company or any of its subsidiaries, affiliates, divisions or operating units (to the extent applicable to such performance goal(s)), or the financial
statements of the Company or any of its subsidiaries, affiliates, divisions or operating units (to the extent applicable to such performance goal(s)), or of changes in applicable rules, rulings, regulations or other requirements of any governmental
body or securities exchange, accounting principles, law or business conditions. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">SECTION 7. <I>Payment of Awards.</I> </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) <I>Form of Payment</I>. Awards under the plan for a Performance Period may be made in cash or in a combination of restricted shares, Performance
Shares and options as the Committee shall determine. Unless the Committee determines otherwise, awards under the Company&#146;s Long-Term Incentive Compensation Plan shall be made 60% in Performance Shares and 40% in Options. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) <I>Time of Payment</I>. Cash Awards payable under the Plan for a Performance Period shall be paid in cash to Participants as soon as administratively
possible following completion of the performance goal certifications required by Section&nbsp;7(b), unless the Committee shall determine that any Award or any portion thereof shall be deferred. In no event may a Participant receive any payment
(i)&nbsp;in respect of an Award unless and until, and only to the extent that, the performance goal(s) for the applicable Performance Period are achieved and certified by the Committee in accordance with Section&nbsp;7(b) and (ii)&nbsp;of any Award
in excess of the limitation set forth in Section&nbsp;4. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(c) <I>Goal Achievement Determination</I>. Following the completion of the
applicable Performance Period, the Committee shall meet to review and certify in writing whether, and to what extent, the performance goal(s) for the Performance Period have been achieved. If the applicable performance goal(s) have been achieved,
the Committee shall then determine the actual size of each Participant&#146;s Award for the Performance Period. In determining the actual size of an individual Award for a Performance Period, the Committee may, in its sole judgment, reduce or
eliminate the Award otherwise payable to the Participant for the Performance Period, based on the level of performance achieved and certified. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman"
SIZE="2">SECTION 8. <I>Administration and Interpretation.</I> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) <I>Committee Administers</I>. The Committee shall have full authority to
administer the Plan. The Committee shall have full power to construe and interpret the Plan, establish and amend rules and regulations for its administration, correct any defect, supply any omission and reconcile any inconsistency in the Plan and
any Award, and perform all other acts relating to the Plan, including the delegation of administrative responsibilities, that it believes reasonable and proper and in conformity with the purposes of the Plan and the requirements of
Section&nbsp;162(m) of the Code. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) <I>Committee Determinations</I>. The Committee has sole responsibility for selecting Eligible
Employees and Participants, establishing performance goals, setting Performance Periods, setting target/maximum Award amounts, certifying whether performance goals have been attained and determining actual Award amounts. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(c) <I>Committee Decision Conclusive</I>. Any decision made, or action taken, by the Committee arising out of or in connection with the interpretation
and/or administration of the Plan shall be final, conclusive and binding on all persons affected thereby. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(d) <I>Limitations</I>. In no
event shall any discretionary authority granted to the Committee by the Plan be used to (i)&nbsp;provide payment in respect of any Award if the performance goal(s) for the applicable Performance Period have not been attained and certified by the
Committee, (ii)&nbsp;increase an Award for any Participant following the Establishment Period, (iii)&nbsp;increase an Award above the maximum amount payable under Section&nbsp;4 of the Plan, or (iv)&nbsp;be exercised in a manner which is
inconsistent with Section&nbsp;162(m) of the Code. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">SECTION 9. <I>Amendment/Termination. </I>The Committee shall have the right to amend
the Plan from time to time or to repeal it entirely or to direct the discontinuance of Awards either temporarily or permanently; <I>provided</I>, <I>however</I>, that no amendment of the Plan that changes (i)&nbsp;the persons eligible to receive
Awards under the Plan, (ii)&nbsp;the criteria that may be used to set performance goals under the Plan, as set forth in Section&nbsp;6(b), or (iii)&nbsp;the maximum Award payable to an Eligible Employee, as set forth in Section&nbsp;4, shall be
effective before approval by shareholders in a manner that complies with the requirements of Section&nbsp;162(m) of the Code. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">SECTION 10. Special<I> Awards and Other Plans.</I> </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) <I>Other Incentives</I>. Nothing contained in the Plan shall prohibit Stein Mart from establishing other special awards or incentive compensation
plans providing for the payment of incentive compensation to Employees (including Eligible Employees). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) <I>Other Plans</I>. Payments or
benefits provided to an Eligible Employee under any stock, deferred compensation, savings, retirement or other employee benefit plan are governed solely by the terms of such plan. </FONT></P> <P
STYLE="margin-top:18px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">SECTION 11. <I>Rights of Eligible Employees.</I> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">(a) <I>No Right to Continued Employment</I>. Neither the Plan, nor the adoption or operation of the Plan, nor any documents describing or referring to the Plan (or any part hereof) shall confer upon any Employee any right to continue in the
employ of Stein Mart. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(b) <I>No Interest in Assets of Company</I>. No individual to whom an Award has been made or any other party shall
have any interest in any asset of Stein Mart until such amount has been paid. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(c) <I>Rights Not Assignable</I>. No right or interest of
any Participant in the Plan shall be assignable or transferable, or subject to any claims of any creditor or subject to any lien. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px; text-indent:2%"><FONT FACE="Times New Roman" SIZE="2">SECTION
12. <I>Miscellaneous.</I> </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(a) <I>Expenses</I>. All expenses and costs incurred in connection with the operation of the Plan shall be borne
by Stein Mart, and no part thereof (other than the amounts of Awards under the Plan) shall be charged against the maximum limitation of Section&nbsp;4. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">(b) <I>Withholding</I>. All Awards are subject to withholding, where applicable, for Federal, state, local and foreign taxes. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">(c) <I>Savings Clause</I>. Any provision of the Plan that is held to be invalid, illegal or unenforceable (whether in whole or in part) shall be deemed modified to the extent, but only to the extent, of such
invalidity, illegality or unenforceability and the remaining provisions of the Plan shall not be affected thereby. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(d) <I>Applicable
Law</I>. The Plan and the rights and obligations of the parties to the Plan shall be governed by, and construed and interpreted in accordance with, the laws of the State of Florida (without regard to principles of conflicts of law). </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(e) <I>Successors</I>. All obligations of the Company under the Plan with respect to Awards granted hereunder shall be binding on any successor to the
Company, including any purchaser of all or substantially all the assets of the Company. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">(f) <I>Limitations on Liability; Indemnity</I>. No
member of the Board of Directors, the Committee or any employee of the Company (each such person, a &#147;<B>Covered Person</B>&#148;) shall be liable for any action taken or omitted to be taken or any determination made in good faith with respect
to the Plan or any Award hereunder. Each Covered Person shall be indemnified and held harmless by the Company against and from (i)&nbsp;any loss, cost, liability or expense (including attorneys&#146; fees) that may be imposed upon or incurred by
such Covered Person in connection with or resulting from any action, suit or proceeding to which such Covered Person may be a party or in which such Covered Person may be involved by reason of any action taken or omitted to be taken under the Plan
or any Award Agreement and (ii)&nbsp;any and all amounts paid by such Covered Person, with the Company&#146;s approval, in settlement thereof, or paid by such Covered Person in satisfaction of any judgment in any such action, suit or proceeding
against such Covered Person; provided that the Company shall have the right, at its own expense, to assume and defend any such action, suit or proceeding and, once the Company gives notice of its intent to assume the defense, the Company shall have
sole control over such defense with counsel of the Company&#146;s choice. The foregoing right of indemnification shall not be available to a Covered Person to the extent that a court of competent jurisdiction in a final judgment or other final
adjudication, in either case not subject to further appeal, determines that the acts or omissions of such Covered Person giving rise to the indemnification claim resulted from such Covered Person&#146;s bad faith, fraud or willful criminal act or
omission or that such right of indemnification is otherwise prohibited by law. The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which Covered Persons may be entitled under the Company&#146;s
Restated Certificate of Incorporation or Restated Bylaws, as a matter of law, or otherwise, or any other power that the Company may have to indemnify such persons or hold them harmless. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
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