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INDEPENDENCE CONTRACT DRILLING, INC. 2019 OMNIBUS INCENTIVE PLAN (Effective
February 27, 2019)

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INDEPENDENCE CONTRACT DRILLING, INC. 2019 OMNIBUS INCENTIVE PLAN ARTICLE I
ESTABLISHMENT, PURPOSE AND DURATION
................................................ 1 1.1 Establishment
....................................................................................................................
1 1.2 Purpose of the Plan
............................................................................................................
1 1.3 Duration of Plan
................................................................................................................
1 ARTICLE II DEFINITIONS
..........................................................................................................
1 ARTICLE III ELIGIBILITY
..........................................................................................................
6 ARTICLE IV GENERAL PROVISIONS RELATING TO AWARDS
......................................... 6 4.1 Authority to Grant Awards
................................................................................................
6 4.2 Shares That Count Against Limit
......................................................................................
7 4.3 Non-Transferability
...........................................................................................................
7 4.4 Requirements of Law
........................................................................................................
7 4.5 Changes in the Company’s Capital Structure
.................................................................... 8 4.6
Election Under Section 83(b) of the Code
...................................................................... 10 4.7
Forfeiture for Cause
.........................................................................................................
10 4.8 Forfeiture Events
.............................................................................................................
11 4.9 Recoupment in Restatement Situations
........................................................................... 11
4.10 Award Agreements
..........................................................................................................
11 4.11 Amendments of Award Agreements
...............................................................................
11 4.12 Rights as Stockholder
......................................................................................................
12 4.13 Issuance of Shares of Stock
.............................................................................................
12 4.14 Restrictions on Stock Received
.......................................................................................
12 4.15 Section 409A
...................................................................................................................
12 4.16 Date of Grant
...................................................................................................................
12 4.17 Source of Shares Deliverable Under Awards
.................................................................. 12 4.18
Minimum Vesting Requirements
....................................................................................
13 ARTICLE V OPTIONS
................................................................................................................
13 5.1 Authority to Grant Options
..............................................................................................
13 5.2 Type of Options Available
..............................................................................................
13 5.3 Option Agreement
...........................................................................................................
13 5.4 Option Price
.....................................................................................................................
13 5.5 Duration of Option
..........................................................................................................
14 5.6 Amount Exercisable
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14 -i- Error! Unknown document property name.

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5.7 Exercise of Option
...........................................................................................................
14 5.8 Transferability-Incentive Stock Options
......................................................................... 15 5.9
No Rights as Stockholder
................................................................................................
15 5.10 $100,000 Limitation on ISOs
..........................................................................................
15 5.11 Separation from Service
..................................................................................................
16 ARTICLE VI STOCK APPRECIATION RIGHTS
..................................................................... 16 6.1
Authority to Grant SAR Awards
.....................................................................................
16 6.2 Type of Stock Appreciation Rights Available
................................................................ 16 6.3 General
Terms
.................................................................................................................
16 6.4 SAR Agreement
..............................................................................................................
16 6.5 Term of SAR
...................................................................................................................
17 6.6 Exercise of Freestanding SARs
.......................................................................................
17 6.7 Exercise of Tandem SARs
..............................................................................................
17 6.8 Payment of SAR Amount
................................................................................................
17 6.9 Separation from Service
..................................................................................................
18 6.10 No Rights as Stockholder
................................................................................................
18 6.11 Restrictions on Stock Received
.......................................................................................
18 ARTICLE VII RESTRICTED STOCK AWARDS
..................................................................... 18 7.1
Restricted Stock Awards
.................................................................................................
18 7.2 Restricted Stock Award Agreement
................................................................................
18 7.3 Holder’s Rights as Stockholder
.......................................................................................
18 ARTICLE VIII RESTRICTED STOCK UNIT
AWARDS.......................................................... 19 8.1
Authority to Grant RSU Awards
.....................................................................................
19 8.2 RSU Award
.....................................................................................................................
19 8.3 RSU Award Agreement
...................................................................................................
19 8.4 Dividend Equivalents
......................................................................................................
19 8.5 Form of Payment Under RSU Award
............................................................................. 19
8.6 Time of Payment Under RSU Award
..............................................................................
19 8.7 Holder’s Rights as Stockholder
.......................................................................................
20 ARTICLE IX PERFORMANCE STOCK AWARDS AND PERFORMANCE UNIT AWARDS
........................................................................................................................
20 9.1 Authority to Grant Performance Stock Awards and Performance Unit Awards
............ 20 9.2 Performance Goals
..........................................................................................................
20 9.3 Written Agreement
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21 9.4 Form of Payment Under Performance Unit Award
......................................................... 21 ii

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9.5 Time of Payment Under Performance Unit Award
......................................................... 21 9.6 Holder’s Rights
as Stockholder With Respect to a Performance Stock Award .............. 21 9.7
Holder’s Rights as Stockholder With Respect to a Performance Unit Award
................ 21 9.8 Dividend Equivalents
......................................................................................................
21 ARTICLE X ANNUAL CASH INCENTIVE AWARDS
........................................................... 21 10.1 Authority to
Grant Annual Cash Incentive Awards
........................................................ 21 10.2 Written
Agreement
..........................................................................................................
22 10.3 Form of Payment Under Annual Cash Incentive Award
................................................ 22 10.4 Time of Payment Under
Annual Cash Incentive Award ................................................. 22
ARTICLE XI OTHER STOCK-BASED AWARDS
................................................................... 22 11.1
Authority to Grant Other Stock-Based Awards
.............................................................. 22 11.2 Value of
Other Stock-Based Award
................................................................................
22 11.3 Written Agreement
..........................................................................................................
22 11.4 Payment of Other Stock-Based Award
........................................................................... 22
11.5 Separation from Service
..................................................................................................
23 11.6 Time of Payment of Other Stock-Based Award
.............................................................. 23 ARTICLE XII
CASH-BASED AWARDS
...................................................................................
23 12.1 Authority to Grant Cash-Based Awards
.......................................................................... 23
12.2 Value of Cash-Based Award
...........................................................................................
23 12.3 Written Agreement
..........................................................................................................
23 12.4 Payment of Cash-Based Award
.......................................................................................
23 12.5 Time of Payment of Cash-Based Award
......................................................................... 23
12.6 Separation from Service
..................................................................................................
23 ARTICLE XIII SUBSTITUTE AWARDS
..................................................................................
24 ARTICLE XIV ADMINISTRATION
..........................................................................................
24 14.1 Awards
.............................................................................................................................
24 14.2 Authority of the Committee
............................................................................................
24 14.3 Decisions Binding
...........................................................................................................
26 14.4 No Liability
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26 ARTICLE XV AMENDMENT OR TERMINATION OF PLAN
............................................... 26 15.1 Amendment, Modification,
Suspension, and Termination .............................................. 26
15.2 Awards Previously Granted
.............................................................................................
26 ARTICLE XVI MISCELLANEOUS
...........................................................................................
27 16.1 Unfunded Plan/No Establishment of a Trust Fund
......................................................... 27 iii

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16.2 No Employment Obligation
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27 16.3 Tax Withholding
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27 16.4 No Rights to Awards
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28 16.5 No Guarantee of Tax Consequences
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28 16.6 Gender and Number
........................................................................................................
28 16.7 Severability
......................................................................................................................
28 16.8 Headings
..........................................................................................................................
29 16.9 Other Compensation Plans
..............................................................................................
29 16.10 Retirement and Welfare Plans
.........................................................................................
29 16.11 Other Awards
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29 16.12 Law Limitations/Governmental Approvals
..................................................................... 29 16.13
Delivery of Title
..............................................................................................................
29 16.14 Inability to Obtain Authority
...........................................................................................
29 16.15 Investment Representations
.............................................................................................
29 16.16 Persons Residing Outside of the United States
............................................................... 29 16.17
Arbitration of Disputes
....................................................................................................
30 16.18 No Fractional Shares
.......................................................................................................
30 16.19 Governing Law
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30 iv

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INDEPENDENCE CONTRACT DRILLING, INC. 2019 OMNIBUS INCENTIVE PLAN (Effective
February 27, 2019) ARTICLE I ESTABLISHMENT, PURPOSE AND DURATION 1.1
Establishment . The Company hereby establishes an incentive compensation plan,
to be known as the “ Independence Contract Drilling, Inc. 2019 Omnibus Incentive
Plan ”, as set forth in this document. The Plan permits the grant of Incentive
Stock Options, Nonqualified Stock Options, SARs, Restricted Stock, RSUs,
Performance Stock Awards, Performance Unit Awards, Annual Cash Incentive Awards,
Other Stock-Based Awards and Cash-Based Awards. The Plan is effective as of
February 27, 2019 (the “Effective Date ”), provided that the Company’s
stockholders approve the adoption of the Plan within 12 months after the date of
adoption of the Plan by the Board. 1.2 Purpose of the Plan . The Plan is
intended to advance the interests of the Company, its Affiliates and its
stockholders by providing those persons who have substantial responsibility for
the management and growth of the Company and its Affiliates with additional
performance incentives and an opportunity to obtain or increase their
proprietary interest in the Company, thereby encouraging them to continue in
their employment or affiliation with the Company or its Affiliates. 1.3 Duration
of Plan . The Plan shall continue indefinitely until it is terminated pursuant
to Section 16.1. No Award may be granted under the Plan on or after the tenth
anniversary of the Effective Date. The applicable provisions of the Plan will
continue in effect with respect to an Award granted under the Plan for as long
as such Award remains outstanding. Notwithstanding the foregoing, no Incentive
Stock Option may be granted under the Plan on or after the date that is ten
years from the earlier of (a) adoption of the Plan by the Board and (b) the
Effective Date. ARTICLE II DEFINITIONS Each word and phrase defined in this
Article shall have the meaning set out below throughout the Plan, unless the
context in which any such word or phrase appears reasonably requires a broader,
narrower or different meaning. “Affiliate ” means any corporation, partnership,
limited liability company or association, trust or other entity or organization
which, directly or indirectly, controls, is controlled by, or is under common
control with, the Company. For purposes of the preceding sentence, “control”
(including, with correlative meanings, the terms “controlled by” and “under
common control with”), as used with respect to any entity or organization, shall
mean the possession, directly or indirectly, of the power (a) to vote more than
fifty percent (50%) of the securities having ordinary voting power for the
election of directors or comparable individuals of the controlled entity or
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organization, or (b) to direct or cause the direction of the management and
policies of the controlled entity or organization, whether through the ownership
of voting securities or by contract or otherwise; provided, however, that with
respect to Incentive Stock Options, the term “Affiliate” means only a Parent
Corporation of the Company or a Subsidiary Corporation of the Company or of any
such parent corporation (as such terms are defined in Sections 424(e) and (f) of
the Code and determined in accordance with Section 421 of the Code); and
provided further, that with respect to grants of Nonqualified Options or SARs,
the term “Affiliate” means only a corporation or other entity in a chain of
corporations and/or other entities in which the Company has a “controlling
interest” within the meaning of Treasury Regulation Section 1.414(c)-2(b)(2)(i),
but using the threshold of 50% ownership wherever 80% appears. “Annual Cash
Incentive Award ” means an Award granted pursuant to Article X to an individual
who is then an Employee. “Authorized Shares ” shall have the meaning ascribed to
that term in Section 4.1(a). “Award ” means, individually or collectively, a
grant under the Plan of an Incentive Stock Option, a Nonqualified Stock Option,
a SAR, Restricted Stock, a RSU, a Performance Stock Award, a Performance Unit
Award, an Annual Cash Incentive Award, an Other Stock-Based Award or a
Cash-Based Award, in each case subject to the terms and provisions of the Plan.
“Award Agreement ” means a written or electronic agreement that sets forth the
terms and conditions applicable to an Award granted under the Plan. “Beneficial
Owner ” shall have the meaning ascribed to such term in Rule 13d-3 of the
General Rules and Regulations under the Exchange Act. “Board ” means the board
of directors of the Company. “Cash-Based Award ” means an Award granted pursuant
to Article XII. “Code ” means the United States Internal Revenue Code of 1986,
as amended, and the rules, regulations and administrative guidance promulgated
thereunder.“Committee ” means (a) in the case of an Award granted to an Outside
Director, the Board, and (b) in the case of any other Award granted under the
Plan, the Compensation Committee of the Board, or a subcommittee thereof, or
such other committee designated by the Board, in each case, consisting of two or
more members of the Board, each of whom is intended to be (i) a “Non-Employee
Director” within the meaning of Rule 16b-3 under the Exchange Act for Awards
that are intended to be exempt under Rule 16b- 3 under the Exchange Act and (ii)
“independent” within the meaning of the rules of the New York Stock Exchange or,
if the Stock is not listed on the New York Stock Exchange, within the meaning of
the rules of the principal stock exchange on which the Stock is then traded.
“Company ” means Independence Contract Drilling, Inc., a Delaware corporation,
or any successor (by reincorporation, merger or otherwise). “Corporate Change ”
shall have the meaning ascribed to that term in Section 4.5(b). 2

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“Dividend Equivalent ” means a payment equivalent in amount to dividends paid
with respect to the Stock to the Company’s stockholders. “Effective Date ” shall
have the meaning ascribed to that term in Section 1.1. “Employee” means (a) a
person employed by the Company or any Affiliate as a common law employee and (b)
a person who has agreed to become a common law employee of the Company or any
Affiliate and is expected to become such within six (6) months after the date of
grant of the Award. “Exchange Act ” means the Securities Exchange Act of 1934,
as amended, or any successor act. “Fair Market Value ” of the Stock as of any
particular date means, (a) if the Stock is traded on a stock exchange, (i) and
if the Stock is traded on that date, the closing sale price of the Stock on that
date; or (ii) and if the Stock is not traded on that date, the closing sale
price of the Stock on the last trading date immediately preceding that date; as
reported on the principal securities exchange on which the Stock is traded; or
(b) if the Stock is traded in the over-the-counter market, (i) and if the Stock
is traded on that date, the average between the high bid and low asked price on
that date; or (ii) and if the Stock is not traded on that date, the average
between the high bid and low asked price on the last trading date immediately
preceding that date; as reported in such over-the-counter market; provided ,
however, that if the Stock is not so traded, the Committee may provide for
another method or means for determining such fair market value, which method or
means shall comply with the requirements of a reasonable valuation method as
described under Section 409A. “Fiscal Year ” means the calendar year.
“Freestanding SAR ” means a SAR that is granted independently of any Options, as
described in Article VI. “Government Agencies ” shall have the meaning ascribed
to that term in Section 4.7. “Holder ” means a person who has been granted an
Award or any person who is entitled to receive shares of Stock or cash under an
Award. 3

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“Incentive Stock Option ” or “ ISO ” means an option to purchase Stock granted
pursuant to Article V that is designated as an incentive stock option and that
satisfies the requirements of section 422 of the Code. “Nonqualified Stock
Option ” or “ NQSO ” means a “nonqualified stock option” to purchase Stock
granted pursuant to Article V that is not an Incentive Stock Option. “Option ”
means an Incentive Stock Option or a Nonqualified Stock Option. “Option Price ”
shall have the meaning ascribed to that term in Section 5.4. “Other Stock-Based
Award ” means an equity-based or equity-related Award not otherwise described by
the terms and provisions of the Plan that is granted pursuant to Article XI.
“Outside Director ” means a director of the Company who is not an Employee.
“Parent Corporation ” means any corporation (other than the Company) in an
unbroken chain of corporations ending with the Company if, at the time of the
action or transaction, each of the corporations other than the Company owns
stock possessing 50 percent or more of the total combined voting power of all
classes of stock in one of the other corporations in the chain. “Performance
Goals ” means one or more of the criteria described in Section 9.2 on which the
performance goals applicable to an Award may be based. “Performance Period ”
means any period designated by the Committee during which (a) the Performance
Goals applicable to an Award shall be measured and (b) the conditions to vesting
applicable to an Award shall remain in effect. “Performance Stock Award ” means
an Award designated as a performance stock award granted to a Holder pursuant to
Article IX. “Performance Unit Award ” means an Award designated as a performance
unit award granted to a Holder pursuant to Article IX. “Period of Restriction ”
means any period designated by the Committee during which (a) the Stock subject
to a Restricted Stock Award may not be sold, transferred, assigned, pledged,
hypothecated or otherwise encumbered or disposed of, except as provided in this
Plan or the Award Agreement relating to such award, or (b) the conditions to
vesting applicable to any other Award shall remain in effect. “Permissible under
Section 409A ” means with respect to a particular action (such as, the grant,
payment, vesting, settlement or deferral of an amount or award under the Plan)
that such action is intended to avoid the compensation at issue from being
subject to the additional tax or interest applicable under Section 409A and
related penalties. “Plan ” means the Independence Contract Drilling, Inc. 2019
Omnibus Incentive Plan, as set forth in this document as it may be amended from
time to time. 4

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“Prior Plan ” means the Independence Contract Drilling, Inc. Amended and
Restated 2014 Omnibus Incentive Plan and each other equity plan maintained by
the Company under which awards are outstanding as of the effective date of this
Plan. “Restricted Stock ” means shares of restricted Stock issued or granted
under the Plan pursuant to Article VII. “Restricted Stock Award ” means an
authorization by the Committee to issue or transfer Restricted Stock to a
Holder. “RSU ” means a restricted stock unit credited to a Holder’s ledger
account maintained by the Company pursuant to Article VIII. “RSU Award ” means
an Award granted pursuant to Article VIII. “SAR ” means a stock appreciation
right granted under the Plan pursuant to Article VI. “Section 409A ” means
section 409A of the Code or any successor statute. “Separation from Service ”
means, except as otherwise provided in the case of an ISO in the following
sentence of this Section 0, (a) if the Award Agreement is not exempt from the
application of the requirements of Section 409A, the termination of the Award
recipient’s employment or service relationship with the Company and all
Affiliates in a manner that satisfies Section 409A as determined by the
Committee and (b) if the Award Agreement is exempt from the application of the
requirements of Section 409A, the termination of the Award recipient’s
employment or service relationship with the Company and all Affiliates as
determined by the Committee. “ Separation from Service ” means, in the case of
an ISO, the termination of the Employee’s employment relationship with all of
the Company, any Parent Corporation, any Subsidiary Corporation and any parent
or subsidiary corporation (within the meaning of section 422(a)(2) of the Code)
of any such corporation that issues or assumes an ISO in a transaction to which
section 424(a) of the Code applies. “Stock ” means the common stock of the
Company, $0.01 par value per share (or such other par value as may be designated
by act of the Company’s stockholders). “Subsidiary Corporation ” means any
corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company if, at the time of the action or transaction, each of
the corporations other than the last corporation in an unbroken chain owns stock
possessing 50 percent or more of the total combined voting power of all classes
of stock in one of the other corporations in the chain. “Substantial Risk of
Forfeiture ” shall have the meaning ascribed to that term in Section 409A.
“Substitute Award ” means an Award granted under this Plan upon the assumption
of, or in substitution for, outstanding equity awards previously granted by a
company or other entity in connection with a corporate transaction, including a
merger, combination, consolidation or acquisition of property or stock;
provided, however, that in no event shall the term “Substitute 5

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Award” be construed to refer to an Award made in connection with the
cancellation and repricing of an Option or SAR. “Tandem SAR ” means a SAR that
is granted in connection with a related Option pursuant to Article VI herein,
the exercise of which shall require forfeiture of the right to purchase a share
of Stock under the related Option (and when a share of Stock is purchased under
the Option, the Tandem SAR shall similarly be canceled). “Ten Percent
Stockholder ” means an individual, who, at the time the applicable Option is
granted, owns stock possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company or any Parent Corporation or
Subsidiary Corporation. An individual shall be considered as owning the stock
owned, directly or indirectly, by or for his or her brothers and sisters
(whether by the whole or half-blood), spouse, ancestors, and lineal descendants;
and stock owned, directly or indirectly, by or for a corporation, partnership,
estate, or trust, shall be considered as being owned proportionately by or for
its stockholders, partners, or beneficiaries. ARTICLE III ELIGIBILITY Except as
otherwise specified in this Article III, the persons who are eligible to receive
Awards under the Plan are Employees and Outside Directors provided , however,
that (a) only those persons who are, on the dates of grant, Employees of the
Company or any Parent Corporation or Subsidiary Corporation are eligible for
grants of Incentive Stock Options under the Plan, (b) the only persons who are
eligible to receive Annual Cash Incentive Awards under the Plan are Employees
and (c) Outside Directors and Third Party Service Providers are only eligible to
receive NQSOs, SARs, Restricted Stock, RSUs, Performance Stock Awards and
Performance Unit Awards. Awards other than ISOs may also be granted to a person
who is expected to become an Employee within six months as specified in Section
14.2(b) of the Plan. ARTICLE IV GENERAL PROVISIONS RELATING TO AWARDS 4.1
Authority to Grant Awards The Committee may grant Awards to those Employees and
Outside Directors as the Committee shall from time to time determine, under the
terms and conditions of the Plan. Subject only to any applicable limitations set
out in the Plan, the number of shares of Stock or other value to be covered by
any Award to be granted under the Plan shall be as determined by the Committee
in its sole discretion. (a) Subject to adjustment as provided in 4.5, the
aggregate number of shares of Stock with respect to which Awards may be granted
under the Plan is 5,500,000 (the “Authorized Shares ”). At the time this Plan
becomes effective, none of the shares of Stock available for future grant under
the Prior Plans shall be available for grant under such Prior Plans. 6

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(b) Subject to adjustment as provided in 4.5, the aggregate number of shares of
Stock with respect to which ISOs may be granted under the Plan is equal to the
Authorized Shares. (c) The aggregate value of the cash compensation and the
grant date fair value of shares of Stock that may be awarded or granted under
this Plan during any fiscal year of the Company to any Outside Director shall
not exceed $350,000; provided, in connection with an appointment of an Outside
Director to the Board, when accounting for initial awards under this Plan
issuable to such Outside Director, such annual aggregate value shall not exceed
$450,000 rather than the foregoing limit. 4.2 Shares That Count Against Limit .
To the extent that shares of Stock subject to an outstanding Award granted under
the Plan, other than Substitute Awards, are not issued or delivered by reason of
(a) the expiration, termination, cancellation or forfeiture of such Award
(excluding shares subject to an option cancelled upon settlement in shares of a
related Tandem SAR or shares subject to a Tandem SAR cancelled upon exercise of
a related option) or (b) the settlement of such Award in cash, then such shares
of Stock shall again be available under this Plan. Notwithstanding anything
herein to the contrary, (i) shares repurchased by the Company on the open market
with the proceeds of an Option exercise and (ii) shares delivered to or withheld
by the Company to pay the purchase price or the withholding taxes related to an
outstanding award shall not again be available under this Plan. The maximum
number of shares of Stock available for issuance under the Plan shall not be
reduced to reflect any dividends or Dividend Equivalents that are reinvested
into additional shares of Stock or credited as additional Restricted Stock,
Restricted Stock Units, Performance Shares, or other Stock-Based Awards. 4.3
Non-Transferability . Except as specified in the applicable Award Agreements or
in domestic relations court orders, an Award shall not be transferable by the
Holder other than by will or under the laws of descent and distribution, and
shall be exercisable, during the Holder’s lifetime, only by him or her. Any
attempted assignment of an Award in violation of this Section shall be null and
void. In the discretion of the Committee, any attempt to transfer an Award other
than under the terms of the Plan and the applicable Award Agreement may
terminate the Award. 4.4 Requirements of Law . The Company shall not be required
to sell or issue any shares of Stock under any Award if issuing those shares of
Stock would constitute or result in a violation by the Holder or the Company of
any provision of any law, statute or regulation of any governmental authority.
Specifically, in connection with any applicable statute or regulation relating
to the registration of securities, upon exercise of any Option or pursuant to
any other Award, the Company shall not be required to issue any shares of Stock
unless the Committee has received evidence satisfactory to it to the effect that
the Holder will not transfer the shares of Stock except in accordance with
applicable law, including receipt of an opinion of counsel satisfactory to the
Company to the effect that any proposed transfer complies with applicable law.
The determination by the Committee on this matter shall be final, binding and
conclusive. The Company may, but shall in no event be obligated to, register any
shares of Stock covered by the Plan pursuant to applicable securities laws of
any country or any political subdivision. In the event the shares of Stock
issuable on exercise of 7

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an Option or pursuant to any other Award are not registered, the Company may
imprint on the certificate evidencing the shares of Stock any legend that
counsel for the Company considers necessary or advisable to comply with
applicable law, or, should the shares of Stock be represented by book or
electronic entry rather than a certificate, the Company may take such steps to
restrict transfer of the shares of Stock as counsel for the Company considers
necessary or advisable to comply with applicable law. The Company shall not be
obligated to take any other affirmative action in order to cause or enable the
exercise of an Option or any other Award, or the issuance of shares of Stock
pursuant thereto, to comply with any law or regulation of any governmental
authority. 4.5 Changes in the Company’s Capital Structure . (a) The existence of
outstanding Awards shall not affect in any way the right or power of the Company
or its stockholders to make or authorize any or all adjustments,
recapitalizations, reorganizations or other changes in the Company’s capital
structure or its business, any merger or consolidation of the Company, any issue
of bonds, debentures, preferred or prior preference shares ahead of or affecting
the Stock or Stock rights, the dissolution or liquidation of the Company, any
sale or transfer of all or any part of its assets or business or any other
corporate act or proceeding, whether of a similar character or otherwise. (b) In
the event of any equity restructuring (within the meaning of Financial
Accounting Standards Board Accounting Standards Codification Topic 718,
Compensation—Stock Compensation or any successor or replacement accounting
standard) that causes the per share value of shares of Stock to change, such as
a stock dividend, stock split, spinoff, rights offering or recapitalization
through an extraordinary cash dividend, the number and class of securities
available under this Plan, the terms of each outstanding Option and SAR
(including the number and class of securities subject to each outstanding option
or SAR and the purchase price or base price per share) and the terms of each
other Award (including the number and class of securities subject thereto),
shall be appropriately adjusted by the Committee, such adjustments to be made in
the case of outstanding Options and SARs in accordance with Section 409A of the
Code. In the event of any other change in corporate capitalization, including a
merger, consolidation, reorganization, or partial or complete liquidation of the
Company, such equitable adjustments described in the foregoing sentence may be
made as determined to be appropriate and equitable by the Committee to prevent
dilution or enlargement of rights of participants. In either case, the decision
of the Committee regarding any such adjustment shall be final, binding and
conclusive. (c) If while unexercised Awards remain outstanding under the Plan
(i) the Company shall not be the surviving entity in any merger, consolidation
or other reorganization (or survives only as a subsidiary of an entity other
than an entity that was wholly-owned by the Company immediately prior to such
merger, consolidation or other reorganization), (ii) the Company sells, leases
or exchanges or agrees to sell, lease or exchange all or substantially all of
its assets to any other person or entity (other than an entity wholly-owned by
the Company), (iii) the Company is to be dissolved and liquidated, (iv) any
person or entity, including a “group” as contemplated by section 13(d)(3) of the
8

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Exchange Act, acquires or gains ownership or control (including, without
limitation, the power to vote) of more than 50% of the outstanding shares of the
Company’s voting stock (based upon voting power entitled to vote generally in
the election of Directors), or (v) as a result of or in connection with a
contested election of directors of the Company, the persons who were directors
of the Company before such election shall cease to constitute a majority of the
Board (each such event is referred to herein as a “ Corporate Change ”), then,
except as otherwise provided in an Award Agreement or another agreement between
the Holder and the Company ( provided that such exceptions shall not apply in
the case of a reincorporation merger), or as a result of the Committee’s
effectuation of one or more of the alternatives described below, there shall be
no acceleration of the time at which any Award then outstanding may be
exercised, and (x) no sooner than effective as of the consummation by the
Company of such merger, consolidation, combination, reorganization, sale, lease,
or exchange of assets or dissolution and liquidation or such election of
directors and (y) no later than thirty (30) days after a Corporate Change of the
type described in clause (iv), the Committee, acting in its sole and absolute
discretion without the consent or approval of any Holder, shall act to effect
one or more of the following alternatives, which may vary among individual
Holders and which may vary among Awards held by any individual Holder ( provided
that, with respect to a reincorporation merger in which Holders of the Company’s
ordinary shares will receive one ordinary share of the successor corporation for
each ordinary share of the Company, none of such alternatives shall apply and,
without Committee action, each Award shall automatically convert into a similar
award of the successor corporation exercisable for the same number of ordinary
shares of the successor as the Award was exercisable for ordinary shares of
Stock of the Company): (i) require that (A) some or all outstanding Options and
SARs shall become exercisable in full or in part, either immediately or upon a
subsequent termination of employment, (B) the Period of Restriction applicable
to some or all outstanding Awards shall lapse in full or in part, either
immediately or upon a subsequent termination of employment, (C) the Performance
Period applicable to some or all outstanding awards shall lapse in full or in
part, and (D) the Performance Goals applicable to some or all outstanding Awards
shall be deemed to be satisfied at the target, maximum or any other level; (ii)
require that shares of capital stock of the corporation resulting from or
succeeding to the business of the Company pursuant to such Corporate Change, or
a parent corporation thereof, be substituted for some or all of the shares of
Stock subject to an outstanding Award, with an appropriate and equitable
adjustment to such award as determined by the Board in accordance with Section
4.5(b); and/or (iii) require outstanding Awards, in whole or in part, to be
surrendered to the Company by the Holder, and to be immediately cancelled by the
Company, and to provide for the holder to receive (A) a cash payment in an
amount equal to (x) in the case of an Option or an SAR, the aggregate number of
shares of Stock then subject to the portion of such Option or SAR surrendered,
whether or not vested or exercisable, multiplied by the excess, if any, of the
Fair Market Value of a share of Stock as of the date of the Corporate Change,
over the purchase price or 9

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base price per share of Stock subject to such Option or SAR, (y) in the case of
an Award denominated in shares of Stock, the number of shares of Stock then
subject to the portion of such award surrendered to the extent the Performance
Goals applicable to such award have been satisfied or are deemed satisfied
pursuant to Section 4.5(c)(i), whether or not vested, multiplied by the Fair
Market Value of a share of Stock as of the date of the Corporate Change, and (z)
in the case of an Award denominated in cash, the value of the Award then subject
to the portion of such Award surrendered to the extent the Performance Goals
applicable to such award have been satisfied or are deemed satisfied pursuant to
Section 4.5(c)(i); (B) shares of capital stock of the corporation resulting from
or succeeding to the business of the Company pursuant to such Corporate Change,
or a parent corporation thereof, having a fair market value not less than the
amount determined under clause (A) above; or (C) a combination of the payment of
cash pursuant to clause (A) above and the issuance of shares pursuant to clause
(B) above. 4.6 Election Under Section 83(b) of the Code . No Holder shall
exercise the election permitted under section 83(b) of the Code with respect to
any Award without the prior written approval of the General Counsel or the Chief
Financial Officer of the Company. Any Holder who makes an election under section
83(b) of the Code with respect to any Award without the prior written approval
of the General Counsel or the Chief Financial Officer of the Company may, in the
discretion of the Committee, forfeit any or all Awards granted to him or her
under the Plan. 4.7 Forfeiture for Cause . Notwithstanding any other provision
of the Plan or an Award Agreement, if the Committee finds by a majority vote
that a Holder, before or after his Separation from Service, (a) committed fraud,
embezzlement, theft, felony or act of dishonesty in the course of his employment
by the Company or an Affiliate which conduct damaged the Company of an
Affiliate, (b) disclosed trade trade secrets of the Company or an Affiliate or
(c) violated the terms of any non-competition, non-disclosure or similar
agreement with respect to the Company or any Affiliate to which the Holder is a
party, then as of the date the Committee makes its finding, some or all Awards
awarded to the Holder (including vested Awards that have been exercised, vested
Awards that have not been exercised and Awards that have not yet vested), as
determined by the Committee in its sole discretion, and all net proceeds
realized with respect to any such Awards, will be forfeited to the Company on
such terms as determined by the Committee. The findings and decision of the
Committee with respect to such matter, including those regarding the acts of the
Holder and the damage done to the Company, will be final for all purposes. No
decision of the Committee, however, will affect the finality of the discharge of
the individual by the Company or an Affiliate or severance of the individual’s
affiliation with the Company and all Affiliates. Nothing contained in this
Section 4.7 or elsewhere in the Plan is intended to limit a Holder’s ability to
(i) report possible violations of law or regulation to, or file a charge or
complaint with, the Securities and Exchange Commission, the Equal Employment
Opportunity Commission, the National Labor Relations Board, the Occupational
Safety and Health Administration, the Department of Justice, the Congress, any
Inspector General, or any other federal, state or local governmental agency or
commission (“ Government Agencies ”), (ii) communicate with any Government
Agencies or otherwise participate in any investigation or proceeding that may be
conducted by any Government Agency, including providing documents or other
information, 10

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without notice to the Company, or (iii) under applicable United States federal
law to (x) disclose in confidence trade secrets to federal, state, and local
government officials, or to an attorney, for the sole purpose of reporting or
investigating a suspected violation of law or (y) disclose trade secrets in a
document filed in a lawsuit or other proceeding, but only if the filing is made
under seal and protected from public disclosure. 4.8 Forfeiture Events . The
Committee may specify in an Award Agreement that the Holder’s rights, payments,
and benefits with respect to an Award shall be subject to reduction,
cancellation, forfeiture, or recoupment upon the occurrence of certain specified
events, in addition to any otherwise applicable vesting or performance
conditions of an Award. Such events may include, but shall not be limited to,
Separation from Service for cause, Separation from Service for any other reason,
violation of material policies of the Company and its Affiliates, breach of
noncompetition, confidentiality, or other restrictive covenants that may apply
to the Holder, or other conduct by the Holder that is detrimental to the
business or reputation of the Company and its Affiliates. 4.9 Recoupment in
Restatement Situations . Without limiting the applicability of Section 4.7 or
Section 4.8, if the Company is required to prepare an accounting restatement due
to the material noncompliance of the Company with any financial reporting
requirement under applicable securities laws, the current or former Holder who
was a current or former executive officer of the Company or an Affiliate shall
forfeit and must repay to the Company any compensation awarded under the Plan to
the extent specified in any of the Company’s recoupment policies established or
amended (now or in the future) in compliance with the rules and standards of the
Securities and Exchange Commission under or in connection with Section 10D of
the Exchange Act. In addition, without limiting the applicability of Section 4.7
or Section 4.8, any Award granted pursuant to the Plan, and any Stock or
property issued or cash paid pursuant to such an Award, shall be subject to any
recoupment, forfeiture or clawback policy that may be adopted by the Board of
the Company from time to time and to any requirement of applicable law,
regulation or listing standard that requires the Company to recoup, forfeit or
claw back compensation paid pursuant to such an Award. 4.10 Award Agreements .
Each Award shall be embodied in an Award Agreement that shall be subject to the
terms and conditions of the Plan. The Award Agreement shall be signed by an
executive officer of the Company, other than the Holder, on behalf of the
Company, and may be signed by the Holder to the extent required by the
Committee. The Award Agreement may specify the effect of a change in control of
the Company or a Separation from Service of the Holder on the Award. The Award
Agreement may contain any other provisions that the Committee in its discretion
shall deem advisable which are not inconsistent with the terms and provisions of
the Plan. 4.11 Amendments of Award Agreements . The terms of any outstanding
Award under the Plan may be amended from time to time by the Committee in its
discretion in any manner that it deems appropriate and that is consistent with
the terms of the Plan or necessary to implement the requirements of the Plan.
However, no such amendment shall adversely affect in a material manner any right
of a Holder without his or her written consent. Except as specified in Section
Error! Reference source not found. , the Committee may not 11

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directly or indirectly lower the exercise price of a previously granted Option
or the grant price of a previously granted SAR. 4.12 Rights as Stockholder . A
Holder shall not have any rights as a stockholder with respect to Stock covered
by an Option, a SAR, an RSU, a Performance Unit, or an Other Stock-Based Award
payable in Stock until the date, if any, such Stock is issued by the Company;
and, except as otherwise provided in Section 4.5 or an Award Agreement, no
adjustment for dividends, or otherwise, shall be made if the record date
therefor is prior to the date of issuance of such Stock. 4.13 Issuance of Shares
of Stock . Shares of Stock, when issued, may be represented by a certificate or
by book or electronic entry. 4.14 Restrictions on Stock Received . The Committee
may impose such conditions and restrictions on any shares of Stock issued
pursuant to an Award as it may deem advisable or desirable. These restrictions
may include, but shall not be limited to, a requirement that the Holder hold the
shares of Stock for a specified period of time. 4.15 Section 409A . Awards shall
be designed, granted and administered in such a manner that they are intended to
either be exempt from the application of, or comply with, the requirements of
Section 409A. The Company makes no representations that the Plan, the
administration of the Plan, any Award Agreement or the amounts hereunder comply
with, or are exempt from, Section 409A and the Company undertakes no obligation
to ensure such compliance or exemption. The Plan and each Award Agreement under
the Plan that is intended to comply the requirements of Section 409A shall be
construed and interpreted in accordance with such intent. Notwithstanding any
other provision of the Plan, if Holder is a “specified employee” (within the
meaning of Section 409A), and the Company determines that a payment or vesting
under an Award is not Permissible under Section 409A, then no payment shall be
made or vesting shall occur under the Award due to a “separation from service”
(within the meaning of Section 409A of the Code) for any reason before the
earlier of the date (i) that is six (6) months after the date on which the
Holder incurs such separation from service or (ii) of the Holder’s death. 4.16
Date of Grant . The date on which an Option or SAR is granted shall be the date
the Company completes the corporate action constituting an offer of Stock for
sale to a Holder under the terms and conditions of the Option or SAR; provided
that such corporate action shall not be considered complete until the date on
which the maximum number of shares that can be purchased under the Option or SAR
and the minimum Option Price or grant price are fixed or determinable. If the
corporate action contemplates an immediate offer of Stock for sale to a class of
individuals, then the date of the granting of an Option or SAR is the time or
date of that corporate action, if the offer is to be made immediately. If the
corporate action contemplates a particular date on which the offer is to be
made, then the date of grant is the contemplated date of the offer. 4.17 Source
of Shares Deliverable Under Awards . Any shares of Stock delivered pursuant to
an Award may consist, in whole or in part, of authorized and unissued shares of
Stock or of treasury shares of Stock. 12

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4.18 Minimum Vesting Requirements . No Award granted under the Plan shall become
exercisable or vested prior to the one-year anniversary of the date of grant;
provided, however, that, such restriction shall not apply to Awards granted
under this Plan with respect to the number of shares of Stock which, in the
aggregate, does not exceed five percent (5%) of the total number of shares
initially available for Awards under this Plan. This Section 4.18 shall not
restrict the right of the Committee to provide in an Award Agreement or
otherwise for the acceleration or continuation of the vesting or exercisability
of an Award upon or after a Change in Control, a Separation from Service or
otherwise including, without limitation, as a result of a termination without
cause, due to retirement or constructive termination. ARTICLE V OPTIONS 5.1
Authority to Grant Options . Subject to the terms and provisions of the Plan,
the Committee, at any time, and from time to time, may grant Options under the
Plan to eligible persons under Article III in such number and upon such terms as
the Committee shall determine; provided that ISOs may be granted only to
eligible Employees of the Company or of any Parent Corporation or Subsidiary
Corporation (as permitted by section 422 of the Code and the regulations
thereunder). 5.2 Type of Options Available . Options granted under the Plan may
be NQSOs or ISOs. 5.3 Option Agreement . Each Option grant under the Plan shall
be evidenced by an Award Agreement that shall specify (a) whether the Option is
intended to be an ISO or an NQSO, (b) the Option Price, (c) the duration of the
Option, (d) the number of shares of Stock to which the Option pertains, (e) the
exercise restrictions, if any, applicable to the Option and (f) such other
provisions as the Committee shall determine that are not inconsistent with the
terms and provisions of the Plan. Notwithstanding the designation of an Option
as an ISO in the applicable Award Agreement for such Option, to the extent the
limitations of Section 5.10 of the Plan are exceeded with respect to the Option
or the Option does not otherwise qualify as an ISO, the portion of the Option in
excess of the limitation or which does not otherwise qualify as an ISO shall be
treated as a NQSO. An Option granted under the Plan may not be granted with any
Dividend Equivalents rights. 5.4 Option Price . Except with respect to
Substitute Awards, the price at which shares of Stock may be purchased under an
Option (the “ Option Price ”) shall not be less than one hundred percent (100%)
of the Fair Market Value of the shares of Stock on the date the Option is
granted; provided , however , if the Option is an ISO granted to a Ten Percent
Stockholder, the Option Price must not be less than one hundred ten percent
(110%) of the Fair Market Value of the shares of Stock on the date the ISO is
granted. Subject to the limitations set forth in the preceding sentences of this
Section 5.4, the Committee shall determine the Option Price for each grant of an
Option under the Plan. Notwithstanding the foregoing, in the case of an Option
that is a Substitute Award, the purchase price per share of the shares subject
to such Option may be less than one hundred percent 13

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(100%) of the Fair Market Value per share on the date of grant, provided, that
the excess of: (a) the aggregate Fair Market Value (as of the date such
Substitute Award is granted) of the shares subject to the Substitute Award, over
(b) the aggregate purchase price thereof does not exceed the excess of: (i) the
aggregate fair market value (as of the time immediately preceding the
transaction giving rise to the Substitute Award, such fair market value to be
determined by the Committee) of the shares of the predecessor company or other
entity that were subject to the grant assumed or substituted for by the Company,
over (ii) the aggregate purchase price of such shares. 5.5 Duration of Option .
An Option shall not be exercisable after the earlier of (a) the general term of
the Option specified in the applicable Award Agreement (which shall not exceed
ten years, and, in the case of a Ten Percent Stockholder, no ISO shall be
exercisable later than the fifth (5th) anniversary of the date of its grant) or
(b) the period of time specified in the applicable Award Agreement that follows
the Holder’s Separation from Service. 5.6 Amount Exercisable . Each Option may
be exercised at the time, in the manner and subject to the conditions the
Committee specifies in the Award Agreement in its sole discretion. 5.7 Exercise
of Option . (a) General Method of Exercise . Subject to the terms and provisions
of the Plan and the applicable Award Agreement, Options may be exercised in
whole or in part from time to time by the delivery of written notice in the
manner designated by the Committee stating (i) that the Holder wishes to
exercise such Option on the date such notice is so delivered, (ii) the number of
shares of Stock with respect to which the Option is to be exercised and (iii)
the address to which a stock certificate, if any, representing such shares of
Stock should be mailed or delivered, or the account to which the shares of Stock
represented by book or electronic entry should be delivered. Except in the case
of exercise by a third party broker as provided below, in order for the notice
to be effective the notice must be accompanied by payment of the Option Price
(and all applicable federal, state, local and foreign withholding taxes
described in Section 17.3) by any combination of the following: (v) cash,
certified check, or bank draft for an amount equal to the Option Price under the
Option, (w) by delivery (either actual delivery or by attestation procedures
established by the Company) of shares of Stock with a Fair Market Value on the
date of exercise equal to the Option Price under the Option (if approved in
advance by the Committee or an executive officer of the Company), (x) the
Committee may permit a Holder to pay such Holder’s Option Price upon the
exercise of an Option by having the Company reduce the number of shares of Stock
that will be delivered pursuant to the exercise of the Option, (y) as described
further in (c) below, an election to make a cashless exercise through a
registered broker-dealer (if approved in advance by the Committee or an
executive officer of the Company) or (z) except as specified below, any other
form of payment which is acceptable to the Committee. Whenever an Option is
exercised by exchanging shares of Stock owned by the Holder, the Holder shall
deliver to the Company or its delegate certificates registered in the name of
the Holder representing a number of shares of Stock legally and beneficially
owned by the Holder, free of all liens, claims, and encumbrances of every kind,
accompanied by stock powers duly endorsed in blank by the record holder of the
shares represented by the certificates, (with signature guaranteed by a 14

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commercial bank or trust company or by a brokerage firm having a membership on a
registered national stock exchange). The delivery of certificates upon the
exercise of Option is subject to the condition that the person exercising the
Option provide the Company with the information the Company might reasonably
request pertaining to exercise, sale or other disposition of an Option. (b)
Issuance of Shares . Subject to Section 4.3 and Section 5.7(c), as promptly as
practicable after receipt of written notification and payment, in the form
required by Section 5.7(a), of an amount of money necessary to satisfy the
aggregate option price and any withholding tax liability that may result from
the exercise of such Option, the Company shall deliver to the Holder
certificates for the number of shares with respect to which the Option has been
exercised, issued in the Holder’s name. Delivery of the shares shall be deemed
effected for all purposes when a stock transfer agent of the Company shall have
deposited the certificates in the United States mail, addressed to the Holder,
at the address specified by the Holder or shall have transferred to the account
designated by the Holder to which the shares of Stock represented by book or
electronic entry are to be delivered. (c) Exercise Through Third-Party Broker .
The Committee may permit a Holder to elect to pay the Option Price and any
applicable tax withholding resulting from such exercise by authorizing a
third-party broker to sell all or a portion of the shares of Stock acquired upon
exercise of the Option and remit to the Company a sufficient portion of the sale
proceeds to pay the Option Price and any applicable federal, state, local and
foreign tax withholding resulting from such exercise. (d) Limitations on
Exercise Alternatives . An Option may not be exercised for a fraction of a share
of Stock. 5.8 Transferability-Incentive Stock Options . Notwithstanding anything
in the Plan or an Award Agreement to the contrary, no ISO granted under the Plan
may be sold, transferred, pledged, assigned, or otherwise alienated or
hypothecated, other than by will or by the laws of descent and distribution, and
all ISOs granted to an Employee under this Article V shall be exercisable during
his or her lifetime only by such Employee. 5.9 No Rights as Stockholder . A
Holder of an Option shall not have any rights as a stockholder with respect to
Stock covered by an Option until the date a stock certificate for such Stock is
issued by the Company. Except as otherwise provided in Section 4.5, no
adjustment for dividends, or otherwise, shall be made if the record date
therefor is prior to the date of issuance of such certificate. 5.10 $100,000
Limitation on ISOs . To the extent that the aggregate Fair Market Value of
shares of Stock with respect to which ISOs first become exercisable by a Holder
in any calendar year exceeds $100,000, taking into account both shares of Stock
subject to ISOs under the Plan and Stock subject to ISOs under all other plans
of the Company, such Options shall be treated as NQSOs. For this purpose, the
“Fair Market Value” of the shares of Stock subject to Options shall be
determined as of the date the Options were awarded. In reducing the number of
Options treated as ISOs to meet the $100,000 limit, the most recently granted
Options shall be reduced first. To the extent a reduction of simultaneously
granted Options 15

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is necessary to meet the $100,000 limit, the Committee may, in the manner and to
the extent permitted by law, designate which shares of Stock are to be treated
as shares acquired pursuant to the exercise of an ISO. 5.11 Separation from
Service . Each Award Agreement shall set forth the extent to which the Holder of
an Option shall have the right to exercise the Option following the Holder’s
Separation from Service. Such provisions shall be determined in the sole
discretion of the Committee, need not be uniform among all Options issued
pursuant to the Award Agreement or the Plan, and may reflect distinctions based
on the reasons for termination or severance. ARTICLE VI STOCK APPRECIATION
RIGHTS 6.1 Authority to Grant SAR Awards . Subject to the terms and provisions
of the Plan, the Committee, at any time, and from time to time, may grant SARs
under the Plan to eligible persons under Article III in such number and upon
such terms as the Committee shall determine. Subject to the terms and conditions
of the Plan, the Committee shall have complete discretion in determining the
number of SARs granted to each Holder and, consistent with the provisions of the
Plan, in determining the terms and conditions pertaining to such SARs. 6.2 Type
of Stock Appreciation Rights Available . The Committee may grant Freestanding
SARs, Tandem SARs, or any combination of these forms of SARs. 6.3 General Terms
. Subject to the terms and conditions of the Plan, a SAR granted under the Plan
shall confer on the recipient a right to receive, upon exercise thereof, an
amount equal to the excess of (a) the Fair Market Value of one share of the
Stock on the date of exercise over (b) the grant price of the SAR, which shall
not be less than one hundred percent (100%) of the Fair Market Value of one
share of the Stock on the date of grant of the SAR except in the case of
Substitute Awards. The grant price of Tandem SARs shall not be less than the
Option Price of the related Option. A SAR granted under the Plan may not be
granted with any Dividend Equivalents rights. Notwithstanding the foregoing, in
the case of an SAR that is a Substitute Award, the grant price per share of the
shares subject to such SAR may be less than 100% of the Fair Market Value per
share on the date of grant, provided, that the excess of: (a) the aggregate Fair
Market Value (as of the date such Substitute Award is granted) of the shares
subject to the Substitute Award, over (b) the aggregate base price thereof does
not exceed the excess of: (i) the aggregate fair market value (as of the time
immediately preceding the transaction giving rise to the Substitute Award, such
fair market value to be determined by the Committee) of the shares of the
predecessor company or other entity that were subject to the grant assumed or
substituted for by the Company, over (ii) the aggregate base price of such
shares. 6.4 SAR Agreement . Each Award of SARs granted under the Plan shall be
evidenced by an Award Agreement that shall specify (a) the grant price of the
SAR, (b) the 16

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term of the SAR, (c) the vesting and termination provisions of the SAR and (d)
such other provisions as the Committee shall determine that are not inconsistent
with the terms and provisions of the Plan. The Committee may impose such
additional conditions or restrictions on the exercise of any SAR as it may deem
appropriate. 6.5 Term of SAR. The term of a SAR granted under the Plan shall be
determined by the Committee, in its sole discretion; provided that no SAR shall
be exercisable on or after the tenth anniversary date of its grant.
Notwithstanding any other provision of this Plan to the contrary, with respect
to a Tandem SAR granted in connection with an ISO: (a) the Tandem SAR will
expire no later than the expiration of the underlying ISO; (b) the value of the
payout with respect to the Tandem SAR may be for no more than one hundred
percent (100%) of the excess of the Fair Market Value of the shares of Stock
subject to the underlying ISO at the time the Tandem SAR is exercised over the
Option Price of the underlying ISO; and (c) the Tandem SAR may be exercised only
when the Fair Market Value of the shares of Stock subject to the ISO exceeds the
Option Price of the ISO. 6.6 Exercise of Freestanding SARs . Subject to the
terms and provisions of the Plan and the applicable Award Agreement,
Freestanding SARs may be exercised in whole or in part from time to time by the
delivery of written notice in the manner designated by the Committee stating (a)
that the Holder wishes to exercise such SAR on the date such notice is so
delivered, (b) the number of shares of Stock with respect to which the SAR is to
be exercised and (c) the address to which the payment due under such SAR should
be delivered. In accordance with applicable law, a Freestanding SAR may be
exercised subject to whatever additional terms and conditions the Committee, in
its sole discretion, imposes. 6.7 Exercise of Tandem SARs . Subject to the terms
and provisions of the Plan and the applicable Award Agreement, Tandem SARs may
be exercised for all or part of the shares of Stock subject to the related
Option upon the surrender of the right to exercise the equivalent portion of the
related Option and by the delivery of written notice in the manner designated by
the Committee stating (a) that the Holder wishes to exercise such SAR on the
date such notice is so delivered, (b) the number of shares of Stock with respect
to which the SAR is to be exercised and (c) the address to which the payment due
under such SAR should be delivered. A Tandem SAR may be exercised only with
respect to the shares of Stock for which its related Option is then exercisable.
In accordance with applicable law, a Tandem SAR may be exercised subject to
whatever additional terms and conditions the Committee, in its sole discretion,
imposes. 6.8 Payment of SAR Amount . Upon the exercise of a SAR, a Holder shall
be entitled to receive payment from the Company in an amount determined by
multiplying the excess of the Fair Market Value of a share of Stock on the date
of exercise over the grant price of the SAR by the number of shares of Stock
with respect to which the SAR is exercised. The payment upon SAR exercise may be
in cash, in Stock of equivalent value, in some combination thereof or in any
other manner approved by the Committee in its sole discretion. The Committee’s
determination regarding the form of SAR payout shall be set forth in the Award
Agreement pertaining to the grant of the SAR. 17

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6.9 Separation from Service . Each Award Agreement shall set forth the extent to
which the Holder of a SAR shall have the right to exercise the SAR following the
Holder’s Separation from Service. Such provisions shall be determined in the
sole discretion of the Committee, may be included in the Award Agreement entered
into with the Holder, need not be uniform among all SARs issued pursuant to the
Plan, and may reflect distinctions based on the reasons for termination or
severance. 6.10 No Rights as Stockholder . A grantee of a SAR award, as such,
shall have no rights as a stockholder. 6.11 Restrictions on Stock Received . The
Committee may impose such conditions and restrictions on any shares of Stock
received upon exercise of a SAR granted pursuant to the Plan as it may deem
advisable or desirable. These restrictions may include, but shall not be limited
to, a requirement that the Holder hold the shares of Stock received upon
exercise of a SAR for a specified period of time. ARTICLE VII RESTRICTED STOCK
AWARDS 7.1 Restricted Stock Awards . Subject to the terms and provisions of the
Plan, the Committee, at any time, and from time to time, may make Awards of
Restricted Stock under the Plan to eligible persons under Article III in such
number and upon such terms as the Committee shall determine. The amount of and
the vesting, transferability and forfeiture restrictions applicable to any
Restricted Stock Award shall be determined by the Committee in its sole
discretion. If the Committee imposes vesting, transferability and forfeiture
restrictions on a Holder’s rights with respect to Restricted Stock, the
Committee may issue such instructions to the Company’s share transfer agent in
connection therewith as it deems appropriate. The Committee may also cause the
certificate for shares of Stock issued pursuant to a Restricted Stock Award to
be imprinted with any legend which counsel for the Company considers advisable
with respect to the restrictions or, should the shares of Stock be represented
by book or electronic entry rather than a certificate, the Company may take such
steps to restrict transfer of the shares of Stock as counsel for the Company
considers necessary or advisable. 7.2 Restricted Stock Award Agreement . Each
Restricted Stock Award shall be evidenced by an Award Agreement that contains
any vesting, transferability and forfeiture restrictions and other provisions
not inconsistent with the Plan as the Committee may specify. 7.3 Holder’s Rights
as Stockholder . Subject to the terms and conditions of the Plan, each recipient
of a Restricted Stock Award shall have all the rights of a stockholder with
respect to the shares of Restricted Stock included in the Restricted Stock Award
during the Period of Restriction established for the Restricted Stock Award.
Dividends paid with respect to Restricted Stock in cash or property other than
shares of Stock or rights to acquire shares of Stock shall be deposited with the
Company and shall be subject to the same restrictions as the shares of Stock
with respect to which such distribution was made. Dividends paid in shares of
Stock or rights to acquire shares of Stock shall be added to and become a part
of the 18

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Restricted Stock. During the Period of Restriction, certificates representing
the Restricted Stock shall be registered in the Holder’s name and bear a
restrictive legend to the effect that ownership of such Restricted Stock, and
the enjoyment of all rights appurtenant thereto, are subject to the
restrictions, terms, and conditions provided in the Plan and the applicable
Award Agreement. Such certificates shall be deposited by the recipient with the
Secretary of the Company or such other officer or agent of the Company as may be
designated by the Committee, together with all stock powers or other instruments
of assignment, each endorsed in blank, which will permit transfer to the Company
of all or any portion of the Restricted Stock which shall be forfeited in
accordance with the Plan and the applicable Award Agreement. ARTICLE VIII
RESTRICTED STOCK UNIT AWARDS 8.1 Authority to Grant RSU Awards . Subject to the
terms and provisions of the Plan, the Committee, at any time, and from time to
time, may grant RSU Awards under the Plan to eligible persons under Article III
in such amounts and upon such terms as the Committee shall determine. The amount
of and the vesting, transferability and forfeiture restrictions applicable to
any RSU Award shall be determined by the Committee in its sole discretion. The
Committee shall maintain a bookkeeping ledger account which reflects the number
of RSUs credited under the Plan for the benefit of a Holder. 8.2 RSU Award . An
RSU Award shall be similar in nature to a Restricted Stock Award except that no
shares of Stock are actually transferred to the Holder until a later date
specified in the applicable Award Agreement. Each RSU shall have a value equal
to the Fair Market Value of a share of Stock. 8.3 RSU Award Agreement . Each RSU
Award shall be evidenced by an Award Agreement that contains any Substantial
Risk of Forfeiture, vesting, transferability and forfeiture restrictions, form
and time of payment provisions and other provisions not inconsistent with the
Plan as the Committee may specify. 8.4 Dividend Equivalents . An Award Agreement
for an RSU Award may specify that the Holder shall be entitled to the payment of
Dividend Equivalents under the Award; provided, however, that any Dividend
Equivalents with respect to an RSU Award that is subject to vesting conditions
shall be subject to the same vesting conditions as the underlying Award. 8.5
Form of Payment Under RSU Award . Payment under an RSU Award shall be made in
cash, shares of Stock or any combination thereof, as specified in the applicable
Award Agreement. 8.6 Time of Payment Under RSU Award . A Holder’s payment under
an RSU Award shall be made at such time as is specified in the applicable Award
Agreement. The Award Agreement shall specify that the payment will be made (a)
by a date that is no later than the date that is two and one-half (2 1/2) months
after the end of the calendar year in 19

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which the RSU Award payment is no longer subject to a Substantial Risk of
Forfeiture or (b) at a time that is Permissible under Section 409A. 8.7 Holder’s
Rights as Stockholder . Except as set forth in Section 8.4, each recipient of an
RSU Award shall have no rights of a stockholder with respect to the Holder’s
RSUs. A Holder shall have no voting rights with respect to any RSU Awards.
ARTICLE IX PERFORMANCE STOCK AWARDS AND PERFORMANCE UNIT AWARDS 9.1 Authority to
Grant Performance Stock Awards and Performance Unit Awards . Subject to the
terms and provisions of the Plan, the Committee, at any time, and from time to
time, may grant Performance Stock Awards and Performance Unit Awards under the
Plan to eligible persons under Article III in such amounts and upon such terms
as the Committee shall determine. The amount of and the vesting, transferability
and forfeiture restrictions applicable to any Performance Stock Award or
Performance Unit Award shall be based upon the attainment of such Performance
Goals as the Committee may determine; provided, however, that the performance
period for any Performance Stock Award or Performance Unit Award shall not be
less than one year. If the Committee imposes vesting, transferability and
forfeiture restrictions on a Holder’s rights with respect to Performance Stock
Award or Performance Unit Awards, the Committee may issue such instructions to
the Company’s share transfer agent in connection therewith as it deems
appropriate. The Committee may also cause the certificate for shares of Stock
issued pursuant to a Performance Stock Award or Performance Unit Award to be
imprinted with any legend which counsel for the Company considers advisable with
respect to the restrictions or, should the shares of Stock be represented by
book or electronic entry rather than a certificate, the Company may take such
steps to restrict transfer of the shares of Stock as counsel for the Company
considers necessary or advisable. 9.2 Performance Goals . Performance Goals upon
which the payment or vesting of an Award under this Plan may be based on one or
more of the following business criteria that apply to the Holder, one or more
business units or subsidiaries of the Company, or the Company as a whole:
earnings per share, earnings per share growth, total stockholder return,
economic value added, cash return on capitalization, increased revenue, revenue
ratios (per employee or per customer), net income, stock price, market share,
return on equity, return on assets, return on capital, return on capital
compared to cost of capital, return on capital employed, return on invested
capital, stockholder value, net cash flow, operating income, earnings before
interest and taxes (“EBIT”), earnings before interest, taxes, depreciation and
amortization (“EBITDA”), cash flow, cash flow from operations, cost reductions,
cost ratios (per employee or per customer), proceeds from dispositions, project
completion time and budget goals, net cash flow before financing activities,
customer growth, total market value, successful closing of transactions,
utilization rates, safety and environmental performance measures (including
total recordable incident rates (“TRIR”)) , or such other goals as the Committee
may determine whether or not listed herein. Performance Goals may also be based
on performance relative to a peer group of companies. Performance Goals may
apply to results obtained relative to a specific industry or a specific index.
Unless otherwise stated, such a Performance Goal need not be based upon an
increase or positive result under a 20

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particular business criterion and could include, for example, maintaining the
status quo or limiting economic losses. The terms, conditions and limitations
applicable to any Performance Stock Award or Performance Unit Award made
pursuant to the Plan shall be determined by the Committee. 9.3 Written Agreement
. Each Performance Stock Award or Performance Unit Award shall be evidenced by
an Award Agreement that contains any vesting, transferability and forfeiture
restrictions and such other provisions not inconsistent with the Plan as the
Committee may specify. 9.4 Form of Payment Under Performance Unit Award .
Payment under a Performance Unit Award shall be made in cash, shares of Stock or
any combination thereof, as specified in the applicable Award Agreement. 9.5
Time of Payment Under Performance Unit Award . A Holder’s payment under a
Performance Unit Award shall be made at such time as is specified in the
applicable Award Agreement. The Award Agreement shall specify that the payment
will be made (a) by a date that is no later than the date that is two and
one-half (2 l/2) months after the end of the calendar year in which the
Performance Unit Award payment is no longer subject to a Substantial Risk of
Forfeiture or (b) at a time that is Permissible under Section 409A. 9.6 Holder’s
Rights as Stockholder With Respect to a Performance Stock Award . Subject to the
terms and conditions of the Plan, each Holder of a Performance Stock Award shall
have all the rights of a stockholder with respect to the shares of Stock issued
to the Holder pursuant to the Award during any period in which such issued
shares of Stock are subject to forfeiture and restrictions on transfer,
including without limitation, the right to vote such shares of Stock.
Notwithstanding the foregoing, dividends paid with respect to a Performance
Stock Award shall be deposited with the Company and shall be subject to the same
forfeiture and other restrictions as the shares of Stock with respect to which
such distribution was made. 9.7 Holder’s Rights as Stockholder With Respect to a
Performance Unit Award . Each recipient of a Performance Unit Award shall have
no rights of a stockholder with respect to the Holder’s Performance Unit Award.
A Holder shall have no voting rights with respect to any Performance Unit Award.
9.8 Dividend Equivalents . An Award Agreement for a Performance Unit Award may
specify that the Holder shall be entitled to the payment of Dividend Equivalents
under the Award; provided, however, that any Dividend Equivalents with respect
to a Performance Unit Award that is subject to vesting conditions shall be
subject to the same vesting conditions as the underlying Award. ARTICLE X ANNUAL
CASH INCENTIVE AWARDS 10.1 Authority to Grant Annual Cash Incentive Awards .
Subject to the terms and provisions of the Plan, the Committee, at any time, and
from time to time, may grant Annual Cash Incentive Awards under the Plan to
Employees in such amounts and upon such 21

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terms as the Committee shall determine. Subject to the following provisions in
this Article X, the amount of any Annual Cash Incentive Awards shall be based on
the attainment of such Performance Goals as the Committee may determine and the
term, conditions and limitations applicable to any Annual Cash Incentive Awards
made pursuant to the Plan shall be determined by the Committee. 10.2 Written
Agreement . Each Annual Cash Incentive Award shall be evidenced by an Award
Agreement that contains any vesting, transferability and forfeiture restrictions
and other provisions not inconsistent with the Plan as the Committee may
specify. 10.3 Form of Payment Under Annual Cash Incentive Award . Payment under
an Annual Cash Incentive Award shall be made in cash. 10.4 Time of Payment Under
Annual Cash Incentive Award . A Holder’s payment under an Annual Cash Incentive
Award shall be made at such time as is specified in the applicable Award
Agreement. The Award Agreement shall specify that the payment will be made (a)
by a date that is no later than the date that is two and one-half (2 1/2) months
after the end of the calendar year in which the Annual Cash Incentive Award
payment is no longer subject to a Substantial Risk of Forfeiture or (b) at a
time that is Permissible under Section 409A. ARTICLE XI OTHER STOCK-BASED AWARDS
11.1 Authority to Grant Other Stock-Based Awards . Subject to the terms and
provisions of the Plan, the Committee, at any time, and from time to time, may
grant other types of equity-based or equity-related Awards not otherwise
described by the terms and provisions of the Plan (including the grant or offer
for sale of unrestricted shares of Stock) under the Plan to eligible persons
under Article III in such number and upon such terms as the Committee shall
determine. Such Awards may involve the transfer of actual shares of Stock to
Holders, or payment in cash or otherwise of amounts based on the value of shares
of Stock and may include, without limitation, Awards designed to comply with or
take advantage of the applicable local laws of jurisdictions other than the
United States. 11.2 Value of Other Stock-Based Award . Each Other Stock-Based
Award shall be expressed in terms of shares of Stock or units based on shares of
Stock, as determined by the Committee. 11.3 Written Agreement . Each Other
Stock-Based Award shall be evidenced by an Award Agreement that contains any
vesting, transferability and forfeiture restrictions and other provisions not
inconsistent with the Plan as the Committee may specify. 11.4 Payment of Other
Stock-Based Award . Payment under an Other-Stock Based Award shall be made in
cash, shares of Stock or any combination thereof, as specified in the applicable
Award Agreement. 22

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11.5 Separation from Service . The Committee shall determine the extent to which
a Holder’s rights with respect to Other Stock-Based Awards shall be affected by
the Holder’s Separation from Service. Such provisions shall be determined in the
sole discretion of the Committee and need not be uniform among all Other
Stock-Based Awards issued pursuant to the Plan. 11.6 Time of Payment of Other
Stock-Based Award . A Holder’s payment under an Other Stock-Based Award shall be
made at such time as is specified in the applicable Award Agreement. If a
payment under the Award Agreement is subject to Section 409A, the Award
Agreement shall specify that the payment will be made (a) by a date that is no
later than the date that is two and one-half (2 1/2) months after the end of the
calendar year in which the Other Stock-Based Award payment is no longer subject
to a Substantial Risk of Forfeiture or (b) at a time that is Permissible under
Section 409A. ARTICLE XII CASH-BASED AWARDS 12.1 Authority to Grant Cash-Based
Awards . Subject to the terms and provisions of the Plan, the Committee, at any
time, and from time to time, may grant Cash- Based Awards under the Plan to
eligible persons under Article III in such amounts and upon such terms as the
Committee shall determine. 12.2 Value of Cash-Based Award . Each Cash-Based
Award shall specify a payment amount or payment range as determined by the
Committee. 12.3 Written Agreement . Each Cash-Based Award shall be evidenced by
an Award Agreement that contains any vesting, transferability and forfeiture
restrictions and other provisions not inconsistent with the Plan as the
Committee may specify. 12.4 Payment of Cash-Based Award . Payment, if any, with
respect to a Cash- Based Award shall be made in accordance with the terms of the
Award, in cash. 12.5 Time of Payment of Cash-Based Award . Payment under a
Cash-Based Award shall be made at such time as is specified in the applicable
Award Agreement. If a payment under the Award Agreement is subject to Section
409A, the Award Agreement shall specify that the payment will be made (a) by a
date that is no later than the date that is two and one-half (2 1/2) months
after the end of the calendar year in which the Cash-Based Award payment is no
longer subject to a Substantial Risk of Forfeiture or (b) at a time that is
Permissible under Section 409A. 12.6 Separation from Service . The Committee
shall determine the extent to which a Holder’s rights with respect to Cash-Based
Awards shall be affected by the Holder’s Separation from Service. Such
provisions shall be determined in the sole discretion of the Committee and need
not be uniform among all Cash-Based Awards issued pursuant to the Plan. 23

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ARTICLE XIII SUBSTITUTE AWARDS Substitute Awards may be granted under the Plan
from time to time in substitution for stock options and other awards held by
employees of other entities who are about to become Employees, or whose employer
is about to become an Affiliate as the result of a merger or consolidation of
the Company with another corporation, or the acquisition by the Company of
substantially all the assets of another corporation, or the acquisition by the
Company of at least fifty percent (50%) of the issued and outstanding stock of
another corporation as the result of which such other corporation will become a
subsidiary of the Company. The terms and conditions of the Substitute Awards so
granted may vary from the terms and conditions set forth in the Plan to such
extent as the Board at the time of grant may deem appropriate to conform, in
whole or in part, to the provisions of the awards in substitution for which they
are granted. If shares of Stock are issued under the Plan with respect to a
Substitute Award such shares of Stock will not count against the aggregate
number of shares of Stock with respect to which Awards may be granted under the
Plan. ARTICLE XIV ADMINISTRATION 14.1 Awards . The Plan shall be administered by
the Committee or, in the absence of the Committee or in the case of awards
issued to Outside Directors, the Plan shall be administered by the Board. The
members of the Committee (that is not itself the Board) shall serve at the
discretion of the Board. The Committee shall have full and exclusive power and
authority to administer the Plan and to take all actions that the Plan expressly
contemplates or are necessary or appropriate in connection with the
administration of the Plan with respect to Awards granted under the Plan. 14.2
Authority of the Committee . (a) The Committee shall have full and exclusive
power to interpret and apply the terms and provisions of the Plan and Awards
made under the Plan, and to adopt such rules, regulations and guidelines for
implementing the Plan as the Committee may deem necessary or proper, all of
which powers shall be exercised in the best interests of the Company and in
keeping with the objectives of the Plan. A majority of the members of the
Committee shall constitute a quorum for the transaction of business relating to
the Plan or Awards made under the Plan, and the vote of a majority of those
members present at any meeting shall decide any question brought before that
meeting. Any decision or determination reduced to writing and signed by a
majority of the members shall be as effective as if it had been made by a
majority vote at a meeting properly called and held. All questions of
interpretation and application of the Plan, or as to Awards granted under the
Plan, shall be subject to the determination, which shall be final and binding,
of a majority of the whole Committee. In carrying out its authority under the
Plan, the Committee shall have full and final authority and discretion,
including but not limited to the following rights, powers and authorities to (i)
determine the persons to whom and the time or times at which Awards will be
made; (ii) determine the type or types of Awards to 24

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be granted; (iii) determine the number and exercise price of shares of Stock
covered in each Award subject to the terms and provisions of the Plan; (iv)
determine the terms, provisions and conditions of each Award, which need not be
identical and need not match the default terms set forth in the Plan; (v)
determine whether, to what extent, and under what circumstances Awards may be
settled or exercised in cash, Stock, other securities, other Awards or other
property, or canceled, forfeited, or suspended and the method or methods by
which Awards may be settled, exercised, canceled, forfeited, or suspended; (vi)
prescribe, amend and rescind rules and regulations relating to administration of
the Plan; and (vii) make all other determinations and take all other actions
deemed necessary, appropriate or advisable for the proper administration of the
Plan. [The Committee may, in its sole discretion and for any reason at any time
(including, without limitation, in an Award Agreement or upon a termination of
employment), take action such that (i) any or all outstanding Options and SARs
shall become exercisable in part or in full, (ii) all or a portion of the Period
of Restriction applicable to any outstanding Awards shall lapse, (iii) all or a
portion of the Performance Period applicable to any outstanding Awards shall
lapse and (iv) the Performance Goals (if any) applicable to any outstanding
Awards shall be deemed to be satisfied at the target, maximum or any other level
.] 1 (b) The Committee may make an Award to an individual who the Company
expects to become an Employee of the Company or any of its Affiliates within six
(6) months after the date of grant of the Award, with the Award being subject to
and conditioned on the individual actually becoming an Employee within that time
period and subject to other terms and conditions as the Committee may establish.
(c) The Committee may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or in any Award to a Holder in the manner and to the
extent the Committee deems necessary or desirable to further the Plan’s
objectives. Further, the Committee shall make all other determinations that may
be necessary or advisable for the administration of the Plan. The Committee may
employ attorneys, consultants, accountants, agents, and other persons, any of
whom may be an Employee, and the Committee, the Company, and its officers and
Board shall be entitled to rely upon the advice, opinions, or valuations of any
such person. (d) The Committee may delegate some or all of its power and
authority hereunder to the Board (or any members thereof) or, subject to
applicable law, to a subcommittee of the Board, a member of the Board, the Chief
Executive Officer or other executive officer of the Company as the Committee
deems appropriate; provided, however, that the Committee may not delegate its
power and authority to a member of the Board, the Chief Executive Officer or
other executive officer of the Company with regard to the selection for
participation in this Plan of an officer, director or other person subject to
Section 16 of the Exchange Act or decisions concerning the timing, pricing or
amount of an Award to such an officer, director or other person. 1 ISS EPSC
Factor. Consider design feature in evaluating points under EPSC analysis. 25

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(e) No member of the Board or Committee, and neither the Chief Executive Officer
nor any other executive officer to whom the Committee delegates any of its power
and authority hereunder, shall be liable for any act, omission, interpretation,
construction or determination made in connection with this Plan in good faith,
and the members of the Board and the Committee and the Chief Executive Officer
or other executive officer shall be entitled to indemnification and
reimbursement by the Company in respect of any claim, loss, damage or expense
(including attorneys’ fees) arising therefrom to the full extent permitted by
law (except as otherwise may be provided in the Company’s Amended and Restated
Certificate of Incorporation and/or Amended and Restated By-laws) and under any
directors’ and officers’ liability insurance that may be in effect from time to
time. 14.3 Decisions Binding . All determinations and decisions made by the
Committee or the Board, as the case may be, pursuant to the provisions of the
Plan and all related orders and resolutions of the Committee or the Board, as
the case may be, shall be final, conclusive and binding on all persons,
including the Company, its Affiliates, its stockholders, Holders and the estates
and beneficiaries of Holders. 14.4 No Liability . Under no circumstances shall
the Company, its Affiliates, the Board or the Committee incur liability for any
indirect, incidental, consequential or special damages (including lost profits)
of any form incurred by any person, whether or not foreseeable and regardless of
the form of the act in which such a claim may be brought, with respect to the
Plan or the Company’s, its Affiliates’, the Committee’s or the Board’s roles in
connection with the Plan. ARTICLE XV AMENDMENT OR TERMINATION OF PLAN 15.1
Amendment, Modification, Suspension, and Termination . Subject to Section 15.2,
the Board may, at any time and from time to time, alter, amend, modify, suspend,
or terminate the Plan and the Committee may, at any time and from time to time,
alter, amend, modify, suspend, or terminate any Award Agreement in whole or in
part; provided, however, that, without the prior approval of the Company’s
stockholders, (i) except as provided in Section 4.5, the Committee shall not
directly or indirectly lower the Option Price of a previously granted Option or
the grant price of a previously granted SAR, cancel a previously granted Option
or previously granted SAR for a payment of cash or other property if the
aggregate fair market value of such Option or SAR is less than the gross Option
Price of such Option or the gross grant price of such SAR, (ii) amend the Plan
if stockholder approval is required with respect to such amendment by applicable
law or stock exchange rules, or (iii) amend the director compensation limits set
forth in Section 4.2(c). 15.2 Awards Previously Granted . Notwithstanding any
other provision of the Plan to the contrary, no termination, amendment,
suspension, or modification of the Plan or an Award Agreement shall adversely
affect in any material way any Award previously granted under the Plan, without
the written consent of the Holder holding such Award. 26

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ARTICLE XVI MISCELLANEOUS 16.1 Unfunded Plan/No Establishment of a Trust Fund .
Holders shall have no right, title, or interest whatsoever in or to any
investments that the Company or any of its Affiliates may make to aid in meeting
obligations under the Plan. Nothing contained in the Plan, and no action taken
pursuant to its provisions, shall create or be construed to create a trust of
any kind, or a fiduciary relationship between the Company and any Holder,
beneficiary, legal representative, or any other person. To the extent that any
person acquires a right to receive payments from the Company under the Plan,
such right shall be no greater than the right of an unsecured general creditor
of the Company. All payments to be made hereunder shall be paid from the general
funds of the Company and no special or separate fund shall be established and no
segregation of assets shall be made to assure payment of such amounts, except as
expressly set forth in the Plan. No property shall be set aside nor shall a
trust fund of any kind be established to secure the rights of any Holder under
the Plan. The Plan is not intended to be subject to the Employee Retirement
Income Security Act of 1974, as amended. 16.2 No Employment Obligation . The
granting of any Award shall not constitute an employment or service contract,
express or implied, and shall not impose upon the Company or any Affiliate any
obligation to employ or continue to employ, or to utilize or continue to utilize
the services of, any Holder. The right of the Company or any Affiliate to
terminate the employment of, or the provision of services by, any person shall
not be diminished or affected by reason of the fact that an Award has been
granted to him, and nothing in the Plan or an Award Agreement shall interfere
with or limit in any way the right of the Company or its Affiliates to terminate
any Holder’s employment or service relationship at any time or for any reason
not prohibited by law. 16.3 Tax Withholding . (a) The Company or any Affiliate
shall be entitled to deduct from other compensation payable to each Holder any
sums required by federal, state, local or foreign tax law to be withheld (“ Tax
Withholding Obligation ”) with respect to the vesting or exercise of an Award or
lapse of restrictions on an Award. In the alternative, the Company may require
the Holder (or other person validly exercising the Award) to pay such sums for
taxes directly to the Company or any Affiliate in cash or by check within one
day after the date of vesting, exercise or lapse of restrictions. (b) The
Committee may, in its discretion, permit a Holder to satisfy any Tax Withholding
Obligation arising upon the vesting of or payment under an Award by delivering
to the Holder a reduced number of shares of Stock in the manner specified
herein. If permitted by the Committee and acceptable to the Holder, at the time
of vesting of shares under the Award, the Company shall (a) calculate the amount
of the Company’s or an Affiliate’s Tax Withholding Obligation on the assumption
that all such shares of Stock vested under the Award are made available for
delivery, (b) reduce the number of such shares of Stock made available for
delivery so that the Fair Market Value of the shares 27

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of Stock withheld on the vesting date approximates the Company’s or an
Affiliate’s Tax Withholding Obligation and (c) in lieu of the withheld shares of
Stock, remit cash to the United States Treasury or other applicable governmental
authorities, on behalf of the Holder, in the amount of the Tax Withholding
Obligation. The Company shall withhold only whole shares of Stock to satisfy its
Tax Withholding Obligation. Where the Fair Market Value of the withheld shares
of Stock does not equal the amount of the Tax Withholding Obligation, the
Company shall withhold shares of Stock with a Fair Market Value less than the
amount of the Tax Withholding Obligation and the Holder must satisfy the
remaining withholding obligation in some other manner permitted under this
Section 16.3. Shares of Common Stock to be delivered or withheld may not have an
aggregate Fair Market Value in excess of the amount determined by applying the
minimum statutory withholding rate (or, if permitted by the Company, such other
rate as will not cause adverse accounting consequences under the accounting
rules then in effect, and is permitted under applicable IRS withholding rules).
The withheld shares of Stock not made available for delivery by the Company
shall be retained as treasury shares or will be cancelled and the Holder’s
right, title and interest in such shares of Stock shall terminate. (c) The
Company shall have no obligation upon vesting or exercise of any Award or lapse
of restrictions on an Award until the Company or an Affiliate has received
payment sufficient to cover the Minimum Statutory Tax Withholding Obligation
with respect to that vesting, exercise or lapse of restrictions. Neither the
Company nor any Affiliate shall be obligated to advise a Holder of the existence
of the tax or the amount which it will be required to withhold. 16.4 No Rights
to Awards. No Employee, Outside Director, Third Party Service Provider or other
person shall have any claim to be granted any Award, and there is no obligation
for uniformity of treatment of among such Persons. The terms and conditions of
Awards need not be the same with respect to each recipient. 16.5 No Guarantee of
Tax Consequences . The Company makes no commitment or guarantee to any Employee,
Outside Director, Third Party Service Provider or other person that any federal,
state, local or other tax treatment will (or will not) apply or be available to
any person with respect to Awards under this Plan or the granting, holding,
vesting, transfer or settlement of any such Award and assumes no liability
whatsoever for the tax consequences to any Employee, Outside Director, Third
Party Service Provider or to any other person with respect to Awards under this
Plan or the granting, holding, vesting, transfer or settlement of any such
Award. 16.6 Gender and Number . If the context requires, words of one gender
when used in the Plan shall include the other and words used in the singular or
plural shall include the other. 16.7 Severability . In the event any provision
of the Plan shall be held illegal or invalid for any reason, the illegality or
invalidity shall not affect the remaining parts of the Plan, and the Plan shall
be construed and enforced as if the illegal or invalid provision had not been
included. 28

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16.8 Headings . Headings of Articles and Sections are included for convenience
of reference only and do not constitute part of the Plan and shall not be used
in construing the terms and provisions of the Plan. 16.9 Other Compensation
Plans . The adoption of the Plan shall not affect any other option, incentive or
other compensation or benefit plans in effect for the Company or any Affiliate,
nor shall the Plan preclude the Company from establishing any other forms of
incentive compensation arrangements for Employees, Outside Directors or Third
Party Service Providers. 16.10 Retirement and Welfare Plans . Neither Awards
made under the Plan nor shares of Stock or cash paid pursuant to such Awards,
may be included as “compensation” for purposes of computing the benefits payable
to any person under the Company’s or any Affiliate’s retirement plans (both
qualified and non-qualified) or welfare benefit plans unless such other plan
expressly provides that such compensation shall be taken into account in
computing a participant’s benefit. 16.11 Other Awards . The grant of an Award
shall not confer upon the Holder the right to receive any future or other Awards
under the Plan, whether or not Awards may be granted to similarly situated
Holders, or the right to receive future Awards upon the same terms or conditions
as previously granted. 16.12 Law Limitations/Governmental Approvals . The
granting of Awards and the issuance of shares of Stock under the Plan 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.
16.13 Delivery of Title . The Company shall have no obligation to issue or
deliver evidence of title for shares of Stock issued under the Plan prior to (a)
obtaining any approvals from governmental agencies that the Company determines
are necessary or advisable; and (b) completion of any registration or other
qualification of the Stock under any applicable national or foreign law or
ruling of any governmental body that the Company determines to be necessary or
advisable. 16.14 Inability to Obtain Authority . The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company’s counsel to be necessary to the lawful issuance and
sale of any shares of Stock hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such shares of Stock as to
which such requisite authority shall not have been obtained. 16.15 Investment
Representations . The Committee may require any person receiving Stock pursuant
to an Award under the Plan to represent and warrant in writing that the person
is acquiring the shares of Stock for investment and without any present
intention to sell or distribute such Stock. 16.16 Persons Residing Outside of
the United States . Notwithstanding any provision of the Plan to the contrary,
in order to comply with the laws in other countries in which the Company or any
of its Affiliates operates or has employees, the Committee, in its 29

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sole discretion, shall have the power and authority to (a) determine which
Affiliates shall be covered by the Plan; (b) determine which persons employed
outside the United States are eligible to participate in the Plan; (c) amend or
vary the terms and provisions of the Plan and the terms and conditions of any
Award granted to persons who reside outside the United States; (d) establish
subplans and modify exercise procedures and other terms and procedures to the
extent such actions may be necessary or advisable (and any subplans and
modifications to Plan terms and procedures established under this Section 16.16
by the Committee shall be attached to the Plan document as Appendices); and (e)
take any action, before or after an Award is made, that it deems advisable to
obtain or comply with any necessary local government regulatory exemptions or
approvals. Notwithstanding the above, the Committee may not take any actions
hereunder, and no Awards shall be granted, that would violate the Code, any
securities law or governing statute or any other applicable law. 16.17
Arbitration of Disputes . Any controversy arising out of or relating to the Plan
or an Award Agreement shall be resolved by arbitration conducted in Houston,
Texas pursuant to the arbitration rules of the American Arbitration Association.
The arbitration shall be final and binding on the parties. 16.18 No Fractional
Shares . No fractional shares of Stock shall be issued or delivered pursuant to
the Plan or any Award. The Committee shall determine whether cash, additional
Awards, or other property shall be issued or paid in lieu of fractional shares
of Stock or whether such fractional shares or any rights thereto shall be
forfeited or otherwise eliminated. 16.19 Governing Law . The provisions of the
Plan and the rights of all persons claiming thereunder shall be construed,
administered and governed under the laws of the State of Delaware, excluding any
conflicts or choice of law rule or principle that might otherwise refer
construction or interpretation of the Plan to the substantive law of another
jurisdiction. Unless otherwise provided in the Award Agreement, recipients of an
Award under the Plan are deemed to submit to the sole and exclusive jurisdiction
and venue of the federal or state courts of the State of Texas to resolve any
and all issues that may arise out of or relate to the Plan or any related Award
Agreement. 30

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