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This excerpt taken from the FL 8-K filed Jun 5, 2007. Exercise. A tandem SAR shall be exercisable at such time or times and only to the extent that the related Option
is exercisable, and will not be Transferable except to the extent the related Option may be Transferable. A tandem SAR granted in connection with an Incentive Stock Option shall be exercisable only if the Fair Market Value of a share of Stock on the
date of exercise exceeds the purchase price specified in the related Incentive Stock Option. Upon the exercise of a tandem SAR, the related Option or part thereof to which such SAR relates, shall be deemed to have been exercised for the purpose of
the limitations set forth in Section 5(a) of the Plan on the number of shares of Stock to be issued under the Plan.
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