PHOENIX COMPANIES INC/DE
STOCK INCENTIVE PLAN
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>2
<FILENAME>ex102.htm
<DESCRIPTION>STOCK INCENTIVE PLAN
<TEXT>
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<HTML><HEAD><TITLE>THE PHOENIX COMPANIES, INC</TITLE>
<META content="Phoenix User" name=author>
<META content=05/05/2008 name=date>
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<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px"
align=right><B>EXHIBIT 10.2</B></P>
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<P style="FONT-SIZE: 18px; MARGIN: 0px; LINE-HEIGHT: 21px" align=center><B>THE
PHOENIX COMPANIES, INC.</B></P>
<P style="FONT-SIZE: 18px; MARGIN: 0px; LINE-HEIGHT: 21px" align=center><B>STOCK
INCENTIVE PLAN</B></P>
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<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>As
amended and restated as of January 1, 2009</P>
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<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center><B>THE
PHOENIX COMPANIES, INC.</B></P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center><B>STOCK
INCENTIVE PLAN</B></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>ARTICLE
I.</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>PURPOSE
</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">The
purpose of the The Phoenix Companies, Inc. &nbsp;Stock Incentive Plan as it may
be amended from time to time (the &#147;Plan&#148;) is to foster and promote the long-term
financial success of the Company and materially increase shareholder value
by:</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">(a)
&nbsp;motivating superior performance by means of performance-related
incentives,</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(b)
&nbsp;encouraging and providing for the acquisition of an ownership interest in
the Company by the Company's and its Subsidiaries&#146; employees and Agents, and
</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(c)
&nbsp;enabling the Company to attract and retain the services of an outstanding
management team upon whose judgment, interest, and special effort the successful
conduct of its operations is largely dependent.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>ARTICLE
II.</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px"
align=center>DEFINITIONS</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">2.1
<B><I>Definitions.</I> </B>&nbsp;Whenever used herein, the following terms shall
have the</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">respective meanings
set forth below:</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -24px; LINE-HEIGHT: 18px">(a)</P>
<P
style="PADDING-LEFT: 72px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">&#147;Act&#148;
means the Securities Exchange Act of 1934, as amended.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">(b)
&#147;Agent&#148; means an &#147;insurance agent&#148; as defined in Section 2101of the New</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">York
Insurance Law and who also is treated by the Company as a &#147;statutory employee&#148;
as defined under applicable provisions of the Code.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">(c)
&#147;Approved Retirement&#148; means termination of a Participant's employment (i)</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">on
or after the normal retirement date or (ii) with the Committee&#146;s approval, on
or</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">after
any early retirement date established under any retirement plan maintained by
the Company or a Subsidiary and in which the Participant participates; provided
that in each case, the Committee may require, as a condition to a Participant&#146;s
retirement being an &#147;Approved Retirement&#148; for purpose of the Plan, that the
Participant enter into a general release of claims, non-solicitation and/or
non-competition agreement in form and substance satisfactory to the Company.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">(d)
&#147;Board&#148; means the Board of Directors of the Company.</P>
<P style="MARGIN: 0px"><BR><BR></P>
<P
style="FONT-SIZE: 12px; MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>2</B></FONT></P><BR>
<P></P>
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<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 78px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -30px; LINE-HEIGHT: 18px"><FONT
face="Times New Roman">(e)</FONT></P>
<P
style="PADDING-LEFT: 78px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">&#147;Cause&#148;
means</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -48px; LINE-HEIGHT: 18px">(i)</P>
<P
style="PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">The
willful failure by the Participant to perform substantially his duties as an
Employee of the Company (other than due to physical or mental illness) after
reasonable notice to the Participant of such failure.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -48px; LINE-HEIGHT: 18px">(ii)</P>
<P
style="PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">The
Participant&#146;s engaging in serious misconduct that is injurious to the Company or
any Subsidiary in any way, including, but not limited to, by the way of damage
to their respective reputations or standings in their respective industries.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -48px; LINE-HEIGHT: 18px">(iii)</P>
<P
style="PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">The
Participant&#146;s having been convicted of, or having entered a plea of nolo
contendere to, a crime that constitutes a felony or;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -48px; LINE-HEIGHT: 18px">(iv)</P>
<P
style="PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">The
breach by the Participant of any written covenant or agreement with the Company
or any Subsidiary not to disclose or misuse any information pertaining to, or
misuse any property of, the Company or any Subsidiary or not to compete or
interfere with the Company or any Subsidiary.</P>
<P
style="MARGIN-TOP: 16px; PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN-BOTTOM: 0px; LINE-HEIGHT: 18px">(f)
&#147;Change of Control&#148; shall be deemed to have occurred upon the first occurrence
of any of the following events:</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -48px; LINE-HEIGHT: 18px">(i)</P>
<P
style="PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">the
occurrence of such a change in control of the direction and administration of
the Company&#146;s business as would be required to be reported in response to Item
6(e) of Schedule 14A of Regulation 14A promulgated under the Securities Exchange
Act of 1934, as amended (the &#147;Exchange Act&#148;), as in effect on the date hereof
and any successor provision of the regulations under the Exchange Act, if the
Company were required at the time of such occurrence to report under such
provisions (whether or not the Company is subject to the reporting provisions of
Section 12 of the Exchange Act and to such reporting requirement); or</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -48px; LINE-HEIGHT: 18px">(ii)
</P>
<P
style="PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">if
the individuals who, at the beginning of the period commencing two (2) years
earlier, constituted the Company&#146;s Board of Directors cease for any reason to
constitute at least a majority of the Company&#146;s Board of Directors; provided,
however that any person who is a Continuing Director (as hereinafter defined)
for this purpose shall be deemed to have been a member of the Board of Directors
on the first day of such two (2) year period; or</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -48px; LINE-HEIGHT: 18px">(iii)
</P>
<P
style="PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">the
Company or Board of Directors shall approve a sale of all or substantially all
of the assets of the Company and such transaction shall have been consummated;
or</P>
<P style="MARGIN: 0px"><BR><BR></P>
<P
style="FONT-SIZE: 12px; MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>3</B></FONT></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -48px; LINE-HEIGHT: 18px"><FONT
face="Times New Roman">(iv) </FONT></P>
<P
style="PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">if
25%<B> </B>or more of the combined voting power of the Company&#146;s securities are
acquired by an individual or entity other than the Company, any Subsidiary or
any employee benefit plan sponsored by the Company or a Subsidiary, or</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -48px; LINE-HEIGHT: 18px">(v)
</P>
<P
style="PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">at
any date after the date hereof, the Company is voluntarily or involuntarily
dissolved or liquidated or otherwise ceases business operation; or</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -48px; LINE-HEIGHT: 18px">(vi)
</P>
<P
style="PADDING-LEFT: 126px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">the
Company&#146;s Board of Directors shall approve any merger, consolidation or like
business combination or reorganization of the Company as the case may be, such
transaction shall have been consummated and a majority of the individuals who
constituted directors of the Company on the day the Board of Directors approved
such transaction cease for any reason, at any time within two (2) years after
the consummation of such transaction, to constitute a majority of such Board of
Directors or, board of directors of any successor company resulting from such
merger, consolidation, or like business combination or reorganization. </P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(g)
&#147;Change of Control Price&#148; means the highest price per share of Common Stock
offered in conjunction with any transaction resulting in a Change of Control (as
determined in good faith by the Committee if any part of the offered price is
payable other than in cash) or, in the case of a Change of Control occurring
solely by reason of a change in the composition of the Board, the highest Fair
Market Value of the Common Stock on any of the 30 trading days immediately
preceding the date on which a Change of Control occurs.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(h)
&#147;Code&#148; means the Internal Revenue Code of 1986, as amended.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(i)
&#147;Committee&#148; means the Compensation Committee of the Board or such other
Committee of the Board as the Board shall designate from time to time, which
Committee shall consist of two or more members, each of whom shall be a
&#147;Non-Employee Director&#148; within the meaning of Rule 16b-3 (or any successor rule
thereto), as promulgated under the Act, and an &#147;outside director&#148; within the
meaning of section 162(m) of the Code and the Treasury Regulations promulgated
thereunder.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(j)
&#147;Common Stock&#148; means the common stock of the Company, par value </P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">$0.01
per share.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(k)
&#147;Company&#148; means The Phoenix Companies, Inc., a Delaware corporation, and any
successor thereto.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(l)
&nbsp;&#147;Continuing Directors&#148; mean (i) the directors of the Company in office on
the date hereof (ii) any successor to any such directors, and (iii) any
additional directors, who (A) after the date hereof were nominated or selected
by a majority of the Continuing Directors in office at the time of their
nomination or selection (other than any such </P>
<P style="MARGIN: 0px"><BR><BR></P>
<P
style="FONT-SIZE: 12px; MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>4</B></FONT></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 18px"><FONT
face="Times New Roman">nomination or selection of an individual as a director of
the Company or any successor to the Company who were so nominated or selected in
connection with the settlement of a threatened or actual proxy contest, a
proposed or consummated merger, consolidation or like business combination or
reorganization of the Company.</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(m)
&#147;Demutualization&#148; means the demutualization of Phoenix Home Life Mutual</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">Insurance
Company pursuant to a plan of reorganization approved by the New York State
Superintendent of Insurance under Section 7312 of the New York Insurance
Law.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(n)
&#147;Directors Plan&#148; means the Company's Directors Stock Plan, as the same may be
amended from time to time.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(o)
&#147;Disability&#148; has the meaning given in the Company's long-term disability
insurance policy or program as in effect from time to time.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(p)
&#147;Employee&#148; means any officer or other employee of the Company,</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">Phoenix
Life Insurance Company or any Subsidiary (as determined by the Committee in its
sole discretion); provided, however, that with respect to Incentive Stock
Options, "Employee" means any person who is considered an employee of the
Company or any Subsidiary for purposes of Treasury Regulation Section
1.421-7(h).</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(q)
&#147;Fair Market Value&#148; means, on any date, the closing prices of the Common Stock
as reported in the principal consolidated transaction reporting system for the
New York Stock Exchange (or on such other recognized quotation system on which
the trading prices of the Common Stock are quoted at the relevant time) on such
date. &nbsp;In the event that there are no Common Stock transactions reported on
such tape (or such other system) on such date, Fair Market Value shall mean the
closing price on the immediately preceding date on which Common Stock
transactions were so reported.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">&nbsp;(r)
&#147;Family Member&#148; means, as to a Participant, any (i) child, stepchild,</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">grandchild,
parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law,
son-in-law, daughter-in-law, brother-in-law, or sister-in-law (including
adoptive relationships), of such Participant, (ii) trust for the exclusive
benefit of any of such persons and (iii) other entity owned solely by such
persons.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(s)
&#147;Initial Public Offering&#148; means the first day as of which sales of Common Stock
are made to the public pursuant to the first underwritten public offering of the
Common Stock.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(t)
&#147;Option&#148; means the right to purchase Common Stock at a stated price for a
specified period of time. &nbsp;For purposes of the Plan, an Option may be
either (i) an &#147;Incentive Stock Option&#148; (ISO) within the meaning of Section 422
of the Code or (ii) an option which is not an Incentive Stock Option (a
"Nonstatutory Stock Option"(NSO).</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(u)
&#147;Participant&#148; means any Employee or Agent designated by the Committee to
participate in the Plan.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P>
<P style="MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>5</B></FONT></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 18px"><FONT
face="Times New Roman">(v) &#147;Subsidiary&#148; means any corporation or partnership in
which the Company owns, directly or indirectly, 50% or more of the total
combined voting power of all classes of stock of such corporation or of the
capital interest or profits interest of such partnership.</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">2.2
<B><I>Gender and Number. &nbsp;</I></B>&nbsp;Except when otherwise indicated by
the context, words in the masculine gender used in the Plan shall include the
feminine gender, the singular shall include the plural, and the plural shall
include the singular.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>ARTICLE
III.</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px"
align=center>ELIGIBILITY AND PARTICIPATION</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">Participants
in the Plan shall be those Employees or Agents selected by the Committee to be
granted Options pursuant to Article VI.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>ARTICLE
IV.</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>POWERS
OF THE COMMITTEE</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">4.1
<B><I>Power to Grant. &nbsp;</I></B>&nbsp;The Committee shall determine the
Participants to whom Options shall be granted and the terms and conditions of
any and all such Options. &nbsp;&nbsp;The Committee may establish different
terms and conditions for different Participants and for the same Participant for
each Option such Participant may receive, whether or not granted at different
times. &nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">4.2
<B><I>Certain Rules Relating to Grants.</I></B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="MARGIN-TOP: 0px; PADDING-LEFT: 72px; FONT-SIZE: 16px; MARGIN-BOTTOM: -18px; TEXT-INDENT: -24px; LINE-HEIGHT: 18px">(a)</P>
<P
style="PADDING-LEFT: 72px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">Maximum
Individual Grants. &nbsp;During any consecutive five-year period, no individual
Participant may be granted Options to acquire more than 5% of the total shares
available under the Plan.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(b)
&nbsp;Repricing or Substitution of Options. &nbsp;&nbsp;The Committee shall not
have the right to </P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">reprice
outstanding Options or to grant new Options under the Plan in substitution for
&nbsp;&nbsp;&nbsp;</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">or
upon the cancellation of Options previously granted.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">4.3
<B><I>Administration.</I></B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(a)
Rules, Interpretations and Determinations. &nbsp;&nbsp;The Plan shall be
administered by the Committee. &nbsp;The Committee shall have full authority to
interpret and administer the Plan, to adopt,<B> </B>amend, and rescind rules
relating to the Plan, to provide for conditions deemed necessary or advisable to
protect the interests of the Company, to construe the respective option
agreements and to make all other determinations necessary or advisable for the
administration and interpretation of the Plan in order to carry out its
provisions and purposes. &nbsp;&nbsp;Determinations, interpretations, or other
actions made or taken by the Committee shall be final, binding, and conclusive
for all purposes and upon all persons. &nbsp;&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(b)
Agents and Expenses. &nbsp;&nbsp;The Committee may appoint agents (who may be
officers or employees of the Company) to assist in the administration of the
Plan and may grant authority to such persons to execute agreements or other
documents on its behalf. &nbsp;&nbsp;The Committee may employ such legal
counsel, consultants and agents as it may deem </P>
<P style="MARGIN: 0px"><BR><BR></P>
<P
style="FONT-SIZE: 12px; MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>6</B></FONT></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 18px"><FONT
face="Times New Roman">desirable for the administration of the Plan and may rely
upon any opinion received from any such counsel or consultant and any
computation received from any such consultant or agent. &nbsp;&nbsp;All expenses
incurred in the administration of the Plan, including, without limitation, for
the engagement of any counsel, consultant or agent, shall be paid by the
Company.</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">4.4
<B><I>Delegation of Authority. &nbsp;</I></B>&nbsp;The Committee may delegate
its duties, powers and authorities under the Plan to the Company&#146;s Chief
Executive Officer with respect to individuals who are below the position of
Senior Vice President (or analogous title), pursuant to such conditions or
limitations as the Committee may establish; provided that only the Committee or
the Board may select, and grant Options to, Participants who are subject to
Section 16 of the Act.&nbsp;Notwithstanding the foregoing, in no event shall the
Chief Executive Officer grant (i) Options which, in the aggregate, represent
more than 1.5% of the total number of shares authorized for issuance under the
Plan or (ii) to any single Participant in any twelve-month period more than 5%
of the total number of shares that the Chief Executive Officer is authorized to
grant. &nbsp;The Chief Executive Officer shall report periodically to the
Committee regarding the nature and scope of the Options granted pursuant to the
authority granted to him or her under this Section 4.4.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>ARTICLE
V.</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>STOCK
SUBJECT TO PLAN</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">5.1
<B><I>Number.</I></B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(a)
Subject to the provisions of Section 5.3 hereof, with respect to any person who
on April 17, 2000 was, or at any time thereafter became or becomes, an officer,
director, employee or Agent of the Company and/or any of its Subsidiaries other
than Phoenix Investment Partners, Ltd. &nbsp;(&#147;PXP&#148;)(including, without
limitation, any such officer, director, employee or Agent who on April 17, 2000
was also, or at any time thereafter also became or becomes an officer, director
or employee of PXP), the aggregate number of shares of Common Stock that are or
may be subject to Options under the Plan, when added to the aggregate number of
shares of Common Stock that are or may be subject to options or other grants
under the Directors Plan, shall not exceed 5% of the total number of shares of
Common Stock outstanding immediately after the Initial Public Offering.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(b)
Subject to the provisions of Section 5.3 hereof, with respect to any officer or
employee of PXP (excluding any such person included in paragraph (a) of this
Section 5.1), the aggregate number of shares of Common Stock issuable under the
Plan shall not exceed 1% of the total number of Shares outstanding immediately
after the Initial Public Offering. &nbsp;&nbsp;For the avoidance of doubt, no
non-employee director of PXP may receive any shares of Common Stock or options
under the Plan or the Directors Plan as a consequence of his or her position as
a non-employee director of PXP.</P>
<P style="MARGIN: 0px"><BR><BR></P>
<P
style="FONT-SIZE: 12px; MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>7</B></FONT></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px"><FONT
face="Times New Roman">(c) Without limitation of paragraphs (a) and (b) of this
Section 5.1, the terms and conditions of equity compensation granted to officers
and employees of PXP under the Plan shall be no more favorable than the terms
and conditions of equity compensation previously granted to officers and
employees of PXP in the year 2000.</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(d)
The shares to be delivered under the Plan may consist, in whole or in part, of
treasury Common Stock or authorized but unissued Common Stock, not reserved for
any other purpose.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">5.2
<B><I>Canceled, Terminated, or Forfeited Options. </I></B>&nbsp;Any shares of
Common</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">Stock subject to an
Option which for any reason is canceled, terminated or otherwise settled without
the issuance of any Common Stock (including, but not limited to, shares</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">tendered to exercise
outstanding Options or shares tendered or withheld for taxes) shall</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">again be available
for Options under the Plan.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">5.3
<B><I>Adjustment in Capitalization. &nbsp;</I></B>&nbsp;In the event of any
Common Stock dividend or Common Stock split, recapitalization (including, but
not limited, to the payment of an extraordinary dividend), merger,
consolidation, combination, spin-off, distribution of assets to stockholders
(other than ordinary cash dividends), exchange of shares, or other similar
corporate change, the aggregate number of shares of Common Stock available for
Options under Section 5.1 or subject to outstanding Options and the respective
exercise prices applicable to outstanding Options shall be appropriately
adjusted by the Committee and the Committee&#146;s determination shall be
conclusive<B>, </B>unless such determination is inconsistent with or contrary to
any determination by the New York State Insurance Department in accordance with
this Plan, in which case the Committee&#146;s determination shall be void as of the
date of the Department&#146;s determination. &nbsp;&nbsp;It is hereby provided that,
prior to any such determination by the New York State Insurance Department, the
Company will be provided with written notice thereof and a reasonable
opportunity to respond to such determination by the Department. &nbsp;&nbsp;It
is hereby further<B> </B>provided, however, that no adjustment shall occur by
reason of the issuance of Common Stock in accordance with the Demutualization
and that any fractional shares resulting from any such adjustment shall be
disregarded.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>ARTICLE
VI.</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>STOCK
OPTIONS</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">6.1
<B><I>Grant of Options. &nbsp;</I></B>&nbsp;Subject to the provisions of Section
4.1, Options may be granted to Participants at such time or times as shall be
determined by the Committee. &nbsp;&nbsp;Options granted under the Plan may be
of two types: &nbsp;(a) Incentive Stock Options and (b) Nonstatutory Stock
Options. &nbsp;Except as otherwise provided herein, the Committee shall have
complete discretion in determining the number of Options, if any, to be granted
to a Participant. &nbsp;Each Option shall be evidenced by an Option agreement
that shall specify the type of Option granted, the exercise price, the duration
of the Option, the number of shares of Common Stock to which the Option
pertains, and such other terms and conditions as the Committee shall determine
which are not inconsistent with the provisions of the Plan.
&nbsp;Notwithstanding the foregoing, any Options granted </P>
<P style="MARGIN: 0px"><BR><BR></P>
<P
style="FONT-SIZE: 12px; MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>8</B></FONT></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="FONT-SIZE: 16px; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 18px"><FONT
face="Times New Roman">to a Participant who is an Agent shall comply with the
provisions of Section 4228 of the New York Insurance Law and any regulations
thereunder. &nbsp;&nbsp;</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">6.2
<B><I>Option Price. &nbsp;</I></B>&nbsp;Nonstatutory Stock Options and Incentive
Stock Options granted pursuant to the Plan shall have an exercise price no less
than the Fair Market Value of a share of Common Stock on the date the Option is
granted. &nbsp;&nbsp;</P>
<P style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 8px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">6.3
<B><I>Exercise of Options. &nbsp;</I></B>&nbsp;One third of each Nonstatutory
Stock Option or Incentive Stock Option granted pursuant to the Plan shall become
exercisable on each of the first three (3) anniversaries of the date such Option
is granted; provided that the Committee may at the time of grant establish
longer periods of service for Options to become exercisable and may establish
performance-based criteria for exercisability. &nbsp;Subject to the provisions
of Article VII, once any portion of any Option has become exercisable it shall
remain exercisable for its full term. &nbsp;The Committee shall determine the
term of each Nonstatutory Stock Option or Incentive Stock Option granted, but in
no event shall any such Option be exercisable for more than ten (10) years after
the date on which it is granted.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">6.4
<B><I>Payment. &nbsp;</I></B>&nbsp;The Committee shall establish procedures
governing the exercise of Options. &nbsp;&nbsp;No shares shall be delivered
pursuant to any exercise of an Option unless arrangements satisfactory to the
Committee have been made to assure full payment of the Option price therefor.
&nbsp;Without limiting the generality of the foregoing, payment of the Option
price may be made (a) in cash or its equivalent, (b) by exchanging shares of
Common Stock owned by the optionee which are not the subject of any pledge or
other security interest, (c) through an arrangement with a broker approved by
the Company whereby payment of the exercise price is accomplished with the
proceeds of the sale of Common Stock or (d) by any combination of the foregoing;
provided that the combined value of all cash and cash equivalents paid and the
Fair Market Value of any such Common Stock so tendered to the Company, valued as
of the date of such tender, is at least equal to such Option price. &nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">6.5
<B><I>Incentive Stock Options. &nbsp;</I></B>&nbsp;Notwithstanding anything in
the Plan to the contrary, no Option that is intended to be an Incentive Stock
Option may be granted after the tenth anniversary of the effective date of the
Plan and no term of this Plan relating to Incentive Stock Options shall be
interpreted, amended or altered, nor shall any discretion or authority granted
under the Plan be exercised, so as to disqualify the Plan under Section 422 of
the Code, or, without the consent of any Participant affected thereby, to
disqualify any Incentive Stock Option under such Section 422.</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>ARTICLE
VII.</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px"
align=center>TERMINATION OF EMPLOYMENT</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 42px; LINE-HEIGHT: 18px">7.1
<B><I>Termination of Employment Due to Death. &nbsp;</I></B>&nbsp;In the event a
Participant&#146;s employment terminates by reason of death, any Options granted to
such Participant shall become immediately exercisable in full and may be
exercised by the Participant&#146;s designated beneficiary, and if none is named, in
accordance with Section 10.2, at any time prior to the expiration of the term of
the Options or within five (5) years (or such shorter period as the Committee
shall determine at the time of grant) following the Participant&#146;s death,
whichever period is shorter.</P>
<P style="MARGIN: 0px"><BR><BR></P>
<P
style="FONT-SIZE: 12px; MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>9</B></FONT></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P style="PAGE-BREAK-BEFORE: always; MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px"><FONT
face="Times New Roman">7.2 </FONT><B><I>Termination of Employment Due to
Disability or Approved Retirement. &nbsp;</I></B>&nbsp;In the event a
Participant&#146;s employment terminates by reason of Disability or Approved
Retirement, any Options granted to such Participant which are then outstanding
shall continue to become exercisable in accordance with Section 6.3
notwithstanding such termination of employment and may be exercised by the
Participant or the Participant&#146;s designated beneficiary, and if none is named,
in accordance with Section 10.2, at any time prior to the expiration date of the
term of the Options or within five (5) years (or such shorter period as the
Committee shall determine at the time of grant) following the Participant's
termination of employment, whichever period is shorter.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">7.3
<B><I>Certain Divestitures, etc. &nbsp;</I></B>&nbsp;In the event that a
Participant&#146;s employment is terminated in connection with a sale, divestiture,
spin-off or other similar transaction involving a Subsidiary, division or
business segment or unit, the Committee may provide at the time of grant or
otherwise that all or any portion of any Options granted to such Participant
which are then outstanding shall become exercisable in accordance with Section
6.3 notwithstanding such termination of employment and may be exercised by the
Participant or the Participant&#146;s designated beneficiary, and if none is named,
in accordance with Section 10.2, at any time prior to the expiration date of the
term of the Options or within three (3) years (or such shorter period as the
Committee shall determine at or following the time of grant) following the
Participant&#146;s termination of employment, whichever period is shorter.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">7.4
<B><I>Termination of Employment for Cause. &nbsp;</I></B>&nbsp;In the event a
Participant&#146;s employment is terminated for Cause, any Options granted to such
Participant that are then not yet exercised shall be forfeited.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">7.5
<B><I>Termination of Employment for Any Other Reason. &nbsp;</I></B>
&nbsp;Unless otherwise determined by the Committee at or following the time of
grant, in the event the employment of the Participant shall terminate for any
reason other than one described in Section 7.1, 7.2, 7.3 or 7.4, any Options
granted to such Participant which are exercisable at the date of the
Participant&#146;s termination of employment may be exercised at any time prior to
the expiration of the term of the Options or the thirtieth day following the
Participant&#146;s termination of employment, whichever period is shorter, and any
Options that are not exercisable at the time of termination of employment shall
be forfeited.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>ARTICLE
VIII.</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>CHANGE
OF CONTROL</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">8.1
<B><I>Accelerated Vesting and Payment. &nbsp;</I></B>&nbsp;Subject to the
provisions of Section 8.2, in the event of a Change of Control each Option shall
be fully exercisable regardless of the exercise schedule otherwise applicable to
such Option and, in connection with such a Change of Control, the Committee may,
in its discretion, provide that each Option shall, upon the occurrence of such
Change of Control, be canceled in exchange for a payment in an amount equal to
the excess, if any, of the Change of Control Price over the exercise price for
such Option.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P>
<P
style="FONT-SIZE: 12px; MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>10</B></FONT></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="FONT-SIZE: 16px; PAGE-BREAK-BEFORE: always; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px"><FONT
face="Times New Roman">8.2 </FONT><B><I>Alternative Awards.
&nbsp;</I></B>&nbsp;Notwithstanding Section 8.1, no cancellation, acceleration
of exercisability, vesting, cash settlement or other payment shall occur with
respect to any Option if the Committee reasonably determines in good faith prior
to the occurrence of a Change of Control that such Option shall be honored or
assumed, or new rights substituted therefor (such honored, assumed or
substituted award hereinafter called an &#147;Alternative Award&#148;), by a Participant&#146;s
employer (or the parent or an affiliate of such employer) immediately following
the Change of Control; provided that any such Alternative Award must:</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(a)
be based on stock which is traded on an established securities market, or that
the Committee reasonably believes will be so traded within 60 days after the
Change of Control;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(b)
provide such Participant with rights and entitlements substantially equivalent
to or better than the rights, terms and conditions applicable under such Option,
including, but not limited to, an identical or better exercise or vesting
schedule and identical or better timing and methods of payment;</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(c)
have substantially equivalent economic value to such Option (determined at the
time of the Change of Control); and</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">(d)
have terms and conditions which provide that in the event that the Participant's
employment is involuntarily terminated or constructively terminated, any
conditions on a Participant's rights under, or any restrictions on transfer or
exercisability applicable to, each such Alternative Award shall be waived or
shall lapse, as the case may be.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">For
this purpose, a constructive termination shall mean a termination of employment
by a</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">Participant following
a material reduction in the Participant's base salary or a Participant&#146;s
incentive compensation opportunity or a material reduction in the Participant&#146;s
responsibilities, in either case without the Participant&#146;s written consent.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>ARTICLE
IX.</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px"
align=center>AMENDMENT, MODIFICATION, AND TERMINATION OF PLAN</P>
<P style="MARGIN: 0px" align=center><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">The
Board at any time may terminate the Plan, and from time to time may amend or
modify the Plan; provided, however, that any amendment which would (a) increase
the number of shares available for issuance under the Plan, (b) lower the
minimum exercise price at which an Option may be granted or (c) extend the
maximum term for Options granted hereunder shall be subject to the approval of
the Company&#146;s shareholders. &nbsp;&nbsp;No amendment, modification, or
termination of the Plan shall in any manner adversely affect any Option
theretofore granted under the Plan, without the consent of the Participant.</P>
<P style="MARGIN: 0px"><BR></P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px" align=center>ARTICLE
X.</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px"
align=center>MISCELLANEOUS PROVISIONS</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">10.1
<B><I>Transferability of Options. &nbsp;</I></B>&nbsp;No Options granted under
the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by </P>
<P style="MARGIN: 0px"><BR><BR></P>
<P
style="FONT-SIZE: 12px; MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>11</B></FONT></P>
<P style="MARGIN: 0px" align=center><BR></P>
<P style="MARGIN: 0px"><BR></P>
<HR style="MARGIN-TOP: 9px; MARGIN-BOTTOM: 9px" noShade SIZE=1>
<P
style="FONT-SIZE: 16px; PAGE-BREAK-BEFORE: always; MARGIN: 0px; LINE-HEIGHT: 18px"><FONT
face="Times New Roman">the laws of descent and distribution; provided that the
Committee may, in the Option agreement or otherwise, permit transfers of
Nonstatutory Stock Options by gift or a domestic relations order to Family
Members.</FONT></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">10.2
<B><I>Beneficiary Designation. &nbsp;</I></B>&nbsp;Each Participant under the
Plan may from time to time name any beneficiary or beneficiaries (who may be
named contingently or successively) to whom any benefit under the Plan is to be
paid or by whom any right under the Plan is to be exercised in case of his
death. &nbsp;&nbsp;Each designation will revoke all prior designations by the
same Participant, shall be in a form prescribed by the Committee, and will be
effective only when received by the Committee in writing during his lifetime.
&nbsp;&nbsp;In the absence of any such effective designation, benefits remaining
unpaid or unexercised<B> </B>at the Participant's death shall be paid to or
exercised by (i) the Participant&#146;s surviving spouse or domestic partner, (ii) if
there is no surviving spouse or domestic partner, the Participant&#146;s children
(including stepchildren and adopted children) per stirpes, or (iii) if there is
no surviving spouse or domestic partner and/or children per stirpes, the
Participant&#146;s estate.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">10.3
<B><I>No Guarantee of Employment or Participation. &nbsp;</I></B> &nbsp;Nothing
in the Plan shall interfere with or limit in any way the right of the Company or
any Subsidiary to terminate any Participant's employment or service at any time,
nor confer upon any Participant any right to continue in the employ of the
Company or any Subsidiary or any other affiliate of the Company.&nbsp;No
Employee shall have a right to be selected as a Participant, or, having been so
selected, to receive any future Options.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">10.4
<B><I>Tax Withholding. &nbsp;</I></B>&nbsp;The Company shall have the power to
withhold, or require a Participant to remit to the Company, an amount sufficient
to satisfy Federal, state, and local withholding tax requirements on any Option
under the Plan, and the Company may defer issuance of Common Stock until such
requirements are satisfied. &nbsp;&nbsp;The Committee may, in its discretion,
permit a Participant to elect, subject to such conditions as the Committee shall
impose, (a) to have shares of Common Stock otherwise issuable under the Plan
withheld by the Company or (b) to deliver to the Company previously acquired
shares of Common Stock having a Fair Market Value sufficient to satisfy such
withholding tax obligation associated with the transaction.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">10.5
<B><I>Indemnification. &nbsp;</I></B>&nbsp;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 any loss, cost, liability, or expense that may
be imposed upon or reasonably incurred by him in connection with or resulting
from any claim, action, suit, or proceeding to which he may be made a party or
in which he may be involved by reason of any action taken or failure to act
under the Plan (in the absence of bad faith) and against and from any and all
amounts paid by him in settlement thereof, with the Company's approval, or paid
by him in satisfaction of any judgment in any such action, suit, or proceeding
against him; provided that he or she shall give the Company an opportunity, at
its own expense, to handle and defend the same before he undertakes to handle
and defend it on his own behalf. &nbsp;The foregoing right of indemnification
shall not be exclusive and shall be independent of any other rights of
indemnification to which such person may be entitled under the Company&#146;s
Certificate of Incorporation or By-Laws, by contract, as a matter of law, or
otherwise.</P>
<P style="MARGIN: 0px"><BR><BR></P>
<P
style="FONT-SIZE: 12px; MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>12</B></FONT></P>
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<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px"><FONT
face="Times New Roman">10.6 </FONT><B><I>Requirements of Law. &nbsp;</I>
</B>&nbsp;The granting of Options and the issuance of shares of Common Stock
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.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">10.7
<B><I>Term of Plan. &nbsp;</I></B>&nbsp;The Plan shall continue in effect,
unless sooner terminated pursuant to Article IX, until no more shares of Common
Stock<B> </B>are available for issuance under the Plan.</P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">10.8
<B><I>Governing Law. &nbsp;</I></B>&nbsp;The Plan, and all agreements hereunder,
shall be construed in accordance with and governed by the laws of the State of
New York<B>. &nbsp;</B></P>
<P style="MARGIN: 0px"><BR></P>
<P
style="FONT-SIZE: 16px; MARGIN: 0px; TEXT-INDENT: 48px; LINE-HEIGHT: 18px">10.9
<B><I>No Impact on Benefits. &nbsp;</I></B>&nbsp;Except as may otherwise be
specifically stated under any employee benefit plan, policy or program, Options
shall not be treated as compensation for purposes of calculating an Employee's
right under any such plan, policy or program.</P>
<P
style="PADDING-LEFT: 48px; FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px"><BR>10.10
<B><I>No Constraint on Corporate Action. &nbsp;</I></B>&nbsp;Nothing in this
Plan shall be construed (a) to</P>
<P style="FONT-SIZE: 16px; MARGIN: 0px; LINE-HEIGHT: 18px">limit, impair or
otherwise affect the Company&#146;s right or power to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer
all or any part of its business or assets or (b) except as provided in Article
IX, to limit the right or power of the Company or any of its Subsidiaries to
take any action which such entity deems to be necessary or appropriate.
&nbsp;</P>
<P style="MARGIN: 0px"><BR></P>
<P style="MARGIN: 0px"><BR><BR></P>
<P
style="FONT-SIZE: 12px; MARGIN: 0px; LINE-HEIGHT: 14px; FONT-FAMILY: Courier New"
align=center><FONT face="Courier New"><B>13</B></FONT></P>
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