exv10w3






Exhibit 10.3




This document constitutes
part
 of a prospectus
covering
 securities that
have been
 registered under
the Securities
 Act of
1933.





Foster Wheeler AG Omnibus Incentive Plan




Restated Effective as of February 9, 2009

(Incorporating the First, Second, and Third Amendments)




 









 





Contents




	 	 	 	 	 
	Article 1. Establishment, Purpose, and Duration
	 	 	1	 
	 
	 	 	 	 
	Article 2. Definitions
	 	 	1	 
	 
	 	 	 	 
	Article 3. Administration
	 	 	8	 
	 
	 	 	 	 
	Article 4. Shares Subject to This Plan and Maximum Awards
	 	 	9	 
	 
	 	 	 	 
	Article 5. Eligibility and Participation
	 	 	10	 
	 
	 	 	 	 
	Article 6. Stock Options
	 	 	11	 
	 
	 	 	 	 
	Article 7. Stock Appreciation Rights
	 	 	13	 
	 
	 	 	 	 
	Article 8. Restricted Stock and Restricted Stock Units
	 	 	16	 
	 
	 	 	 	 
	Article 9. Performance Units/Performance Shares
	 	 	18	 
	 
	 	 	 	 
	Article 10. Cash-Based Awards and Other Stock-Based Awards
	 	 	20	 
	 
	 	 	 	 
	Article 11. Forfeiture of Awards
	 	 	22	 
	 
	 	 	 	 
	Article 12. Transferability of Awards
	 	 	23	 
	 
	 	 	 	 
	Article 13. Performance Measures
	 	 	23	 
	 
	 	 	 	 
	Article 14. Director Awards
	 	 	25	 
	 
	 	 	 	 
	Article 15. Dividend Equivalents
	 	 	25	 
	 
	 	 	 	 
	Article 16. Beneficiary Designation
	 	 	25	 
	 
	 	 	 	 
	Article 17. Rights of Participants
	 	 	25	 
	 
	 	 	 	 
	Article 18. Change in Control
	 	 	26	 
	 
	 	 	 	 
	Article 19. Amendment, Modification, Suspension, and Termination
	 	 	27	 
	 
	 	 	 	 
	Article 20. Withholding
	 	 	27	 
	 
	 	 	 	 
	Article 21. Successors
	 	 	28	 
	 
	 	 	 	 
	Article 22. General Provisions
	 	 	28	 







i









 








Foster Wheeler Ltd.

Omnibus Incentive Plan




Article 1. Establishment, Purpose, and Duration




     1.1 Establishment. Foster Wheeler Ltd., a Bermuda company, established an incentive
compensation plan known as the Foster Wheeler Ltd. Omnibus Incentive Plan (the “Plan”). The Plan
superseded and replaced the Foster Wheeler Inc. 1995 Stock Option Plan, the Directors Stock Option
Plan, the 2004 Stock Option Plan, and the Management Restricted Stock Plan (the “Prior Plans”),
except that the Prior Plans shall remain in effect until the awards granted under such plans have
been exercised, forfeited, are otherwise terminated, or any and all restrictions lapse, as the case
may be, in accordance with the terms of such awards. On February 9, 2009, Foster Wheeler AG became
the ultimate parent company of Foster Wheeler Ltd. and its subsidiaries as a result of a
redomestication effected pursuant to a scheme of arrangement under Bermuda law (the
“Redomestication”), as described in Foster Wheeler Ltd.’s proxy statement dated December 19, 2008.
In the Redomestication, all of the previously-outstanding common shares of Foster Wheeler Ltd. were
cancelled and each holder of cancelled Foster Wheeler Ltd. common shares received registered shares
of Foster Wheeler AG (or cash in lieu of any fractional shares). Effective upon the completion of
the Redomestication, Foster Wheeler AG, a Swiss company (hereinafter referred to as the “Company”)
assumed the Plan, renamed it the “Foster Wheeler AG Omnibus Incentive Plan,” and made certain
amendments to the Plan. This restated Plan incorporates three amendments, each of which was
approved by Foster Wheeler Ltd.’s and/or the Company’s Board of Directors and/or Compensation
Committee, as appropriate; it is effective as of February 9, 2009.



     This Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance
Units, Cash-Based Awards, and Other Stock-Based Awards.



     This Plan shall become effective upon shareholder approval (the “Effective Date”) and shall
remain in effect as provided in Section 1.3 hereof.



     1.2 Purpose of this Plan. The purpose of this Plan is to provide a means whereby designated
Employees, Directors, and Third-Party Service Providers develop a sense of proprietorship and
personal involvement in the development and financial success of the Company, and to encourage them
to devote their best efforts to the business of the Company, thereby advancing the interests of the
Company and its shareholders. A further purpose of this Plan is to provide a means through which
the Company may attract able individuals to become Employees or serve as Directors or Third-Party
Service Providers and to provide a means whereby those individuals upon whom the responsibilities
of the successful administration and management of the Company are of importance, can acquire and
maintain ownership of Shares, thereby strengthening their concern for the welfare of the Company.



     1.3 Duration of this Plan. Unless sooner terminated as provided herein, this Plan shall
terminate ten (10) years from the Effective Date, e.g. on the day before the tenth
(10th) anniversary of the Effective Date. After this Plan is terminated, no Awards may
be granted but Awards previously granted shall remain outstanding in accordance with their
applicable terms and conditions and this Plan’s terms and conditions. Notwithstanding the
foregoing, no Incentive Stock Options may be granted more than ten (10) years after the earlier of:
(a) adoption of this Plan by the Board, or (b) the Effective Date.



Article 2. Definitions




     Whenever used in this Plan, the following terms shall have the meanings set forth below, and
when the meaning is intended, the initial letter of the word shall be capitalized:




	 	(a)	 	“Affiliate” shall mean any corporation or other entity (including, but not
limited to, a partnership or a limited liability company) that is affiliated with the
Company through stock or equity ownership or otherwise, and is designated as an
Affiliate for purposes of this Plan by the Committee.
	 
	 	(b)	 	“Annual Award Limit” or “Annual Award Limits” have the meaning set forth in
Section 4.3.




 









 






	 	(c)	 	“Applicable Laws” means the legal requirements relating to the administration
of equity plans or the issuance of share capital by a company, including under the laws
of Switzerland, applicable U.S. state corporate laws, U.S. federal and applicable state
securities laws, other U.S. federal and state laws, the Code, any stock exchange rules
and regulations that may from time to time be applicable to the Company, and the
applicable laws, rules and regulations of any other country or jurisdiction where
Awards are granted under the Plan, as such laws, rules, regulations, interpretations
and requirements may be in place from time to time.
	 
	 	(d)	 	“Award” means, individually or collectively, a grant under this Plan of
Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights,
Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units,
Cash-Based Awards, or Other Stock-Based Awards, in each case subject to the terms of
this Plan.
	 
	 	(e)	 	“Award Agreement” means either: (i) a written agreement entered into by the
Company and a Participant setting forth the terms and provisions applicable to an Award
granted under this Plan, or (ii) a written or electronic statement issued by the
Company to a Participant describing the terms and provisions of such Award, including
in each case any amendment or modification thereof. The Committee may provide for the
use of electronic, Internet, or other non-paper Award Agreements, and the use of
electronic, Internet, or other non-paper means for the acceptance thereof and actions
thereunder by a Participant.
	 
	 	(f)	 	“Beneficial Owner” or “Beneficial Ownership” shall have the meaning ascribed to
such term in Rule 13d-3 of the General Rules and Regulations under the Exchange Act.
	 
	 	(g)	 	“Board” or “Board of Directors” means the Board of Directors of the Company.
	 
	 	(h)	 	“Cash-Based Award” means an Award, denominated in cash, granted to a
Participant as described in Article 10.
	 
	 	(i)	 	“Cause” means, with respect to any Participant, unless otherwise specified in
(a) an applicable employment or other written agreement between the Company and a
Participant or (b) an applicable employment or other written agreement between an
Affiliate or a Subsidiary (which Affiliate or Subsidiary is incorporated in the United
States or Bermuda) and a Participant which has been approved by the Board or Committee
or executed by the person who is the Chief Executive Officer of the Company:






	 	(i)	 	Conviction of a felony;
	 
	 	(ii)	 	Actual or attempted theft or embezzlement of Company, any
Subsidiary, or any Affiliate assets;
	 
	 	(iii)	 	Use of illegal drugs;
	 
	 	(iv)	 	Material breach of an employment agreement between the Company,
Affiliate or Subsidiary, as the case may be, and the Participant that the
Participant has not cured within thirty (30) days after the Company, Affiliate
or Subsidiary, as applicable, has provided the Participant notice of the
material breach which shall be given within sixty (60) days of the Company’s,
Affiliate’s or Subsidiary’s, as applicable, knowledge of the occurrence of the
material breach;
	 
	 	(v)	 	Commission of an act of moral turpitude that in the judgment of
the Committee can reasonably be expected to have an adverse effect on the
business, reputation, or financial situation of the Company, any Subsidiary, or
any Affiliate and/or the ability of the Participant to perform his or her
duties;




2









 






	 	(vi)	 	Gross negligence or willful misconduct in performance of the Participant’s duties;
	 
	 	(vii)	 	Breach of fiduciary duty to the Company, any Subsidiary, or any Affiliate; or
	 
	 	(viii)	 	Willful refusal to perform the duties of the Participant’s titled position.






	 	(j)	 	“Change in Control” means, unless otherwise specified in (a) an applicable
employment or other written agreement between the Company and a Participant or (b) an
applicable employment or other written agreement between an Affiliate or a Subsidiary
(which Affiliate or Subsidiary is incorporated in the United States or Bermuda) and a
Participant which has been approved by the Board or Committee or executed by the person
who is the Chief Executive Officer of the Company,






	 	(i)	 	The acquisition by any individual, entity, or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of
Beneficial Ownership of voting securities of the Company where such acquisition
causes such Person to own twenty percent (20%) or more of the combined voting
power of the then outstanding voting securities of the Company entitled to vote
generally in the election of Directors (the “Outstanding Company Voting
Securities”), provided, however, that for purposes of this paragraph (i), the
following acquisitions shall not be deemed to result in a Change in Control:
(A) any acquisition directly from the Company or any corporation or other legal
entity controlled, directly or indirectly, by the Company, (B) any acquisition
by the Company or any corporation or other legal entity controlled, directly or
indirectly, by the Company, (C) any acquisition by any employee benefit plan
(or related trust) sponsored or maintained by the Company or any corporation or
other legal entity controlled, directly or indirectly, by the Company, or (D)
any acquisition by any corporation pursuant to a transaction that complies with
clauses (A), (B), and (C) of paragraph (iii) below; and provided, further, that
if any Person’s Beneficial Ownership of the Outstanding Company Voting
Securities reaches or exceeds twenty percent (20%) as a result of a transaction
described in clause (A) or (B) above, and such Person subsequently acquires
Beneficial Ownership of additional voting securities of the Company, such
subsequent acquisition shall be treated as an acquisition that causes such
Person to own twenty percent (20%) or more of the Outstanding Company Voting
Securities;
	 
	 	(ii)	 	Individuals who, as of the date hereof, constitute the Board
(such individuals, the “Incumbent Board”) cease for any reason to constitute at
least a majority of the Board; provided, however, that any individual becoming
a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board;
	 
	 	(iii)	 	The consummation of a reorganization, merger, amalgamation or
consolidation or sale or other disposition of all or substantially all of the
assets of the Company (“Business Combination”) or, if consummation of such
Business Combination is subject to the consent of any government or
governmental agency, the obtaining of such consent (either explicitly or
implicitly by consummation); excluding, however, such a Business Combination
pursuant to which (A) all or substantially all of the individuals and entities
who were the Beneficial Owners of the Outstanding Company Voting Securities
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than sixty percent (60%) of, respectively, the then
outstanding shares of common stock and the combined voting power of the then
outstanding voting securities entitled to vote generally in the election of
directors, as the case may be, of the corporation resulting




3









 






	 	 	 	from such Business Combination (including, without limitation, a corporation
that as a result of such transaction owns the Company or all or
substantially all of the Company’s assets either directly or through one or
more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Company
Voting Securities, (B) no Person (excluding any (x) corporation owned,
directly or indirectly, by the Beneficial Owner of the Outstanding Company
Voting Securities as described in clause (A) immediately preceding, or (y)
employee benefit plan (or related trust) of the Company or such corporation
resulting from such Business Combination, or any of their respective
subsidiaries) Beneficially Owns, directly or indirectly, twenty percent
(20%) or more of, respectively, the then outstanding shares of common stock
of the corporation resulting from such Business Combination or the combined
voting power of the then outstanding voting securities of such corporation
except to the extent that such ownership existed prior to the Business
Combination, and (C) at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such Business
Combination; or






	 	(iv)	 	Approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.






	 	(k)	 	“Change-in-Control Price” means the closing price of a Share on the last
trading day before the Change in Control occurs.
	 
	 	(l)	 	“Code” means the U.S. Internal Revenue Code of 1986, as amended from time to
time. For purposes of this Plan, references to sections of the Code shall be deemed to
include references to any applicable regulations thereunder and any successor or
similar provision, as well as any applicable interpretative guidance issued related
thereto.
	 
	 	(m)	 	“Committee” means the Compensation Committee of the Board or a subcommittee
thereof, or any other committee designated by the Board to administer this Plan. The
members of the Committee shall be appointed from time to time by and shall serve at the
discretion of the Board. If the Committee does not exist or cannot function for any
reason, the Board may take any action under the Plan that would otherwise be the
responsibility of the Committee.
	 
	 	(n)	 	“Company” means Foster Wheeler AG, a Swiss company, and any successor thereto
as provided in Article 21 herein.
	 
	 	(o)	 	“Covered Employee” means any key Employee who is or may become a “Covered
Employee,” as defined in Code Section 162(m), and who is designated, either as an
individual Employee or class of Employees, by the Committee within the shorter of:
(i) ninety (90) days after the beginning of the Performance Period, or (ii) twenty-five
percent (25%) of the Performance Period has elapsed, as a “Covered Employee” under this
Plan for such applicable Performance Period.
	 
	 	(p)	 	“Director” means any individual who is a member of the Board of Directors of
the Company and who is not an Employee.
	 
	 	(q)	 	“Disability” means, unless otherwise specified in (a) an applicable employment
or other written agreement between the Company and a Participant or (b) an applicable
employment or other written agreement between an Affiliate or a Subsidiary (which
Affiliate or Subsidiary is incorporated in the United States or Bermuda) and a
Participant which has been approved by the Board or Committee or executed by the person
who is the Chief Executive Officer of the Company, (i) in the case of an Employee, the
Employee qualifying for long-term disability benefits under any long-term disability
program sponsored by the Company, Affiliate or Subsidiary in which the Employee
participates, and (ii) in the case of a Director or Third-Party Service Provider, the
inability of the Director or Third-Party Service Provider to engage in any




4









 






	 	 	 	substantial gainful activity by reason of any medically determinable physical or
mental impairment that can be expected to result in death, or which has lasted or
can be expected to last for a continuous period of not less than 12 months, as
determined by the Committee, based upon medical evidence and in accordance with Code
Section 22(e)(3).






	 	(r)	 	“Effective Date” has the meaning set forth in Section 1.1.
	 
	 	(s)	 	“Employee” means any individual who performs services for and is designated as
an employee of the Company, its Affiliates, and/or its Subsidiaries on the payroll
records thereof. An Employee shall not include any individual during any period he or
she is classified or treated by the Company, Affiliate, and/or Subsidiary as an
independent contractor, a consultant, or any employee of an employment, consulting, or
temporary agency or any other entity other than the Company, Affiliate, and/or
Subsidiary, without regard to whether such individual is subsequently determined to
have been, or is subsequently retroactively reclassified as a common-law employee of
the Company, Affiliate, and/or Subsidiary during such period.
	 
	 	(t)	 	“Exchange Act” means the Securities Exchange Act of 1934, as amended from time
to time, or any successor act thereto.
	 
	 	(u)	 	“Fair Market Value” or “FMV” means the closing price of a Share on the most
recent date on which Shares were publicly traded. In the event Shares are not publicly
traded at the time a determination of their value is required to be made hereunder, the
determination of their Fair Market Value shall be made by the Committee in such manner
as it deems appropriate.
	 
	 	(v)	 	“Full-Value Award” means an Award other than in the form of an ISO, NQSO, or
SAR, and which is settled by the issuance of fully paid Shares. A Full-Value Award
shall require the Participant to pay at least the par value for each Share issued out
of the Company’s conditional capital. The Company reserves the right to arrange for
payment to be made on the Participant’s behalf as part of an Award or otherwise.
	 
	 	(w)	 	“Grant Date” means the date on which the Committee approves the grant of an
Award by Committee action or such later date as specified in advance by the Committee.
	 
	 	(x)	 	“Grant Price” means the price established when the Committee approves the grant
of an SAR pursuant to Article 7, used to determine whether there is any payment due
upon exercise of the SAR. The Grant Price of any SAR will be at least the greater of
the Fair Market Value of a Share or the par value of a Share.
	 
	 	(y)	 	“Incentive Stock Option” or “ISO” means an Option to purchase Shares granted
under Article 6 to an Employee and that is designated as an Incentive Stock Option and
that is intended to meet the requirements of Code Section 422, or any successor
provision.
	 
	 	(z)	 	“Insider” means an individual who is, on the relevant date, an officer or
Director of the Company, or a more than ten percent (10%) Beneficial Owner of any class
of the Company’s equity securities that is registered pursuant to Section 12 of the
Exchange Act, as determined by the Board or Committee in accordance with Section 16 of
the Exchange Act.
	 
	 	(aa)	 	“Involuntary Termination” means the Company’s, Affiliate’s and/or Subsidiary’s
termination of a Participant’s employment or service other than for Cause.
	 
	 	(bb)	 	“Nonqualified Stock Option” or “NQSO” means an Option that is not intended to
meet the requirements of Code Section 422, or that otherwise does not meet such
requirements.
	 
	 	(cc)	 	“Non-Tandem SAR” means an SAR that is granted independently of any Option, as
described in Article 7.




5









 






	 	(dd)	 	“Option” means an Incentive Stock Option or a Nonqualified Stock Option, as
described in Article 6.
	 
	 	(ee)	 	“Option Price” means the price at which a Share may be purchased by a
Participant pursuant to an Option. The Option Price will be at least the greater of
the Fair Market Value of a Share or par value of a Share.
	 
	 	(ff)	 	“Other Stock-Based Award” means an equity-based or equity-related Award not
otherwise described by the terms of this Plan, granted pursuant to Article 10.
	 
	 	(gg)	 	“Participant” means any eligible individual as set forth in Article 5 to whom
an Award is granted.
	 
	 	(hh)	 	“Performance-Based Compensation” means compensation under an Award that is
intended to satisfy the requirements of Code Section 162(m) for certain
performance-based compensation paid to Covered Employees. Notwithstanding the
foregoing, nothing in this Plan shall be construed to mean that an Award which does not
satisfy the requirements for performance-based compensation under Code Section 162(m)
does not constitute performance-based compensation for other purposes, including Code
Section 409A.
	 
	 	(ii)	 	“Performance-Based Exception” means the exception for Performance-Based
Compensation from the tax deductibility limitations of Code Section 162(m).
	 
	 	(jj)	 	“Performance Measures” means measures as described in Article 13 on which the
performance goals are based and which are approved by the Company’s shareholders
pursuant to this Plan in order to qualify Awards as Performance-Based Compensation.
	 
	 	(kk)	 	“Performance Period” means the period of time during which the performance
goals must be met in order to determine the degree of payout and/or vesting with
respect to an Award.
	 
	 	(ll)	 	“Performance Share” means an Award under Article 9 herein and subject to the
terms of this Plan, denominated in fully paid Shares, the value of which at the time it
is payable is determined as a function of the extent to which corresponding performance
criteria or Performance Measure(s), as applicable, have been achieved.
	 
	 	(mm)	 	“Performance Unit” means an Award under Article 9 herein and subject to the
terms of this Plan, denominated in units, the value of which at the time it is payable
is determined as a function of the extent to which corresponding performance criteria
or Performance Measure(s), as applicable, have been achieved.
	 
	 	(nn)	 	“Period of Restriction” means the period when Restricted Stock or Restricted
Stock Units are subject to a substantial risk of forfeiture (based on the passage of
time, the achievement of performance goals, or the occurrence of other events as
determined by the Committee, in its discretion) by the exercise of the Company’s right
to repurchase such Restricted Stock or Restricted Stock Units, as provided in Article
8.
	 
	 	(oo)	 	“Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the
Exchange Act and used in Sections 13(d) and 14(d) thereof, including a “group” as
defined in Section 13(d) thereof.
	 
	 	(pp)	 	“Plan” means the Foster Wheeler AG Omnibus Incentive Plan.
	 
	 	(qq)	 	“Plan Year” means the Company’s fiscal year.




6









 






	 	(rr)	 	“Prior Plans” mean, collectively: (i) the Foster Wheeler Inc. 1995 Stock Option
Plan; (ii) the Directors Stock Option Plan; (iii) the 2004 Stock Option Plan; and
(iv) the Management Restricted Stock Plan.
	 
	 	(ss)	 	“Restricted Stock” means an Award granted to a Participant pursuant to Article
8.
	 
	 	(tt)	 	“Resignation for Good Reason” means, unless otherwise specified in (x) an
applicable employment or other written agreement between the Company and a Participant
or (y) an applicable employment or other written agreement between an Affiliate or a
Subsidiary (which Affiliate or Subsidiary is incorporated in the United States or
Bermuda) and a Participant which has been approved by the Board or Committee or
executed by the person who is the Chief Executive Officer of the Company, a material
negative change in the employment relationship without the Participant’s consent;
provided (a) the Participant notifies the Company of the material negative change
within ninety (90) days of the occurrence of such change, (b) the material negative
change is not cured by the Company within thirty (30) days after receiving notice from
the Participant, and (c) the material negative change is evidenced by any of the
following:






	 	(i)	 	material diminution in title, duties, responsibilities or
authority;
	 
	 	(ii)	 	reduction of base salary and benefits except for
across-the-board changes for Employees at the Participant’s level;
	 
	 	(iii)	 	exclusion from executive benefit/compensation plans;
	 
	 	(iv)	 	relocation of the Participant’s principal business location by
the Participant’s employer (the Company, Affiliate, or Subsidiary, as the case
may be) of greater than fifty (50) miles;
	 
	 	(v)	 	material breach of the Participant’s employment agreement with
the Company, Affiliate or Subsidiary, as the case may be; or
	 
	 	(vi)	 	resignation in compliance with securities/corporate governance
applicable law (such as the US Sarbanes-Oxley Act) or rules of professional
conduct specifically applicable to such Participant.






	 	(uu)	 	“Restricted Stock Unit” means an Award granted to a Participant pursuant to
Article 8, except no Shares are actually awarded to the Participant on the Grant Date.
	 
	 	(vv)	 	“Retirement” means termination of employment by the Participant after the
Participant has attained age 65.
	 
	 	(ww)	 	“Share” means a registered share of the Company, par value CHF 3.00 each, or
such other par value as may be in effect from time to time. Effective upon the
completion of the Redomestication, registered shares of the Company will be issued,
held, made available, or used to measure benefits as appropriate under the Plan in lieu
of Foster Wheeler Ltd. common shares with respect to all outstanding Awards issued
prior to or after the completion of the Redomestication.
	 
	 	(xx)	 	“Stock Appreciation Right” or “SAR” means an Award, designated as an SAR,
pursuant to the terms of Article 7 herein.
	 
	 	(yy)	 	“Subsidiary” means any corporation or other entity, whether domestic or
foreign, in which the Company has or obtains, directly or indirectly, a proprietary
interest of more than fifty percent (50%) by reason of stock ownership or otherwise.




7









 






	 	(zz)	 	“Tandem SAR” means an SAR that is granted in connection with a related Option
pursuant to Article 7, the exercise of which shall require forfeiture of the right to
purchase a Share under the related Option (and when a Share is purchased under the
Option, the Tandem SAR shall similarly be forfeited).
	 
	 	(aaa)	 	“Third-Party Service Provider” means any consultant, agent, advisor, or
independent contractor who renders services to the Company, any Subsidiary, or an
Affiliate that: (i) are not in connection with the offer or sale of the Company’s
securities in a capital raising transaction; and (ii) do not directly or indirectly
promote or maintain a market for the Company’s securities.





Article 3. Administration




     3.1 General. The Committee shall be responsible for administering this Plan, subject to this
Article 3 and the other provisions of this Plan. The Committee shall consist of not less than two
(2) Directors who are both non-employee directors, within the meaning of Rule 16b-3 of the Exchange
Act, and “outside directors,” as defined in Treasury Regulation Section 1.162-27; provided,
however, that if at any time any member of the Committee is not an outside director, as so defined,
the Committee may establish a subcommittee, consisting of all members who are outside directors,
for all purposes of any Award to a Covered Employee, unless the Committee determines that such an
Award is not intended to qualify for the Performance-Based Exception. The Committee may employ
attorneys, consultants, accountants, agents, and other individuals, any of whom may be an Employee,
and the Committee, the Company, and its officers and Directors shall be entitled to rely upon the
advice, opinions, or valuations of any such individuals. All actions taken and all interpretations
and determinations made by the Committee shall be final and binding upon the Participants, the
Company, and all other interested individuals.



     3.2 Authority of the Committee. The Committee shall have full and exclusive discretionary
power to interpret the terms and the intent of this Plan and any Award Agreement or other agreement
or document ancillary to or in connection with this Plan, to determine eligibility for Awards and
to adopt such rules, regulations, forms, instruments, and guidelines for administering this Plan as
the Committee may deem necessary or proper. Such authority shall include, but not be limited to,
selecting Award recipients, establishing all Award terms and conditions (including the terms and
conditions set forth in Award Agreements), granting Awards as an alternative to or as the form of
payment for grants or rights earned or due under compensation plans or arrangements of the Company,
construing any provision of the Plan or any Award Agreement, and, subject to Article 19, adopting
modifications and amendments to this Plan or any Award Agreement, including without limitation,
accelerating the vesting of any Award or extending the post-termination exercise period of an Award
(subject to the limitations of Code Section 409A), and any other modifications or amendments that
are necessary to comply with the laws of the countries and other jurisdictions in which the
Company, its Affiliates, and/or its Subsidiaries operate.



     Notwithstanding the foregoing, members of the Board or the Committee who are either eligible
for Awards or have been granted Awards may vote on any and all matters, including matters affecting
the administration of the Plan or the grant of Awards pursuant to the Plan. However, no such
member shall act upon the granting of a specific Award to himself or herself, but any such member
may be counted in determining the existence of a quorum at any meeting of the Board or the
Committee during which action is taken with respect to the granting of an Award to him or her.



     3.3 Delegation. The Committee may delegate to one or more of its members or to one or more
officers of the Company, and/or its Subsidiaries and Affiliates or to one or more agents or
advisors such administrative duties or powers as it may deem advisable, and the Committee or any
individuals to whom it has delegated duties or powers as aforesaid may employ one or more
individuals to render advice with respect to any responsibility the Committee or such individuals
may have under this Plan. The Committee may, by resolution, authorize one or more officers of the
Company to do one or both of the following on the same basis as can the Committee: (a) designate
Employees to be recipients of Awards; (b) determine the size of any such Awards; provided, however,
(i) the Committee shall not delegate such responsibilities to any such officer for Awards granted
to an Employee who is considered an Insider; (ii) the resolution providing such authorization sets
forth the total number of Awards such officer(s) may grant; and (iii) the officer(s) shall report
periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the
authority delegated.



8









 





Article 4. Shares Subject to This Plan and Maximum Awards




     4.1 Number of Shares Available for Awards




	 	(a)	 	Subject to adjustment as provided in Section 4.4 herein, the maximum number of
Shares available for grant to Participants under this Plan (the “Share Authorization”)
shall be:






	 	(i)	 	Eight million one hundred sixty thousand (8,160,000) Shares;
plus
	 
	 	(ii)	 	(A) the number of Shares (not to exceed 1,400,000) which
remained available for grant under the Company’s Prior Plans as of the
Effective Date; and (B) the number of Shares (not to exceed 10,000,000) subject
to outstanding awards as of the Effective Date under the Prior Plans that on or
after the Effective Date cease for any reason to be subject to such awards
(other than by reason of exercise or settlement of the awards to the extent
they are exercised for or settled in vested and nonforfeitable Shares).






	 	(b)	 	All Shares of the Share Authorization may be granted as Full-Value Awards.
	 
	 	(c)	 	The maximum number of Shares of the Share Authorization that may be issued
pursuant to ISOs under this Plan shall be nine million five hundred sixty thousand
(9,560,000) Shares.
	 
	 	(d)	 	The maximum number of Shares of the Share Authorization that may be granted to
Directors shall be 1,000,000 Shares.





     4.2 Share Usage. Shares covered by an Award shall only be counted as used to the extent they
are actually issued. Any Shares related to Awards which terminate by expiration, forfeiture,
cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of
Shares, or are exchanged with the Committee’s permission, prior to the issuance of Shares, for
Awards not involving Shares, shall be available again for grant under this Plan. Moreover, if the
Option Price of any Option granted under this Plan is satisfied by tendering Shares to the Company
(by either actual delivery or by attestation and subject to Section 6.6), or if an SAR is
exercised, only the number of Shares issued, net of the Shares tendered, if any, will be delivered
for purposes of determining the maximum number of Shares available for delivery under this Plan.
The Company will issue new Shares either based on the Company’s conditional or authorized capital
or it may, in its full discretion, deliver treasury shares, shares available on the open market, or
otherwise existing Shares.



     4.3 Annual Award Limits. Unless and until the Committee determines that an Award to a Covered
Employee shall not be designed to qualify as Performance-Based Compensation, the following limits
(each an “Annual Award Limit” and, collectively, “Annual Award Limits”) shall apply to grants of
such Awards under this Plan:




	 	(a)	 	Options. The maximum aggregate number of Shares subject to Options granted in
any one Plan Year to any one Participant shall be 1,000,000, as adjusted pursuant to
Sections 4.4 and/or 19.2.
	 
	 	(b)	 	SARs. The maximum number of Shares subject to Stock Appreciation Rights
granted in any one Plan Year to any one Participant shall be 1,000,000, as adjusted
pursuant to Sections 4.4 and/or 19.2.
	 
	 	(c)	 	Restricted Stock Units or Restricted Stock. The maximum aggregate grant with
respect to Awards of Restricted Stock Units or Restricted Stock that a Participant may
receive in any one Plan Year shall be 600,000 Shares, as adjusted pursuant to
Sections 4.4 and/or 19.2, or equal to the value of 600,000 Shares, as adjusted pursuant
to Sections 4.4 and/or 19.2.
	 
	 	(d)	 	Performance Units or Performance Shares. The maximum aggregate Award of
Performance Units or Performance Shares that a Participant may receive in any one Plan
Year shall be 600,000 Shares, as adjusted pursuant to Sections 4.4 and/or 19.2, or
equal to the value of 600,000 Shares,




9









 






	 	 	 	as adjusted pursuant to Sections 4.4 and/or 19.2, determined as of the date of
vesting or payout, as applicable.
	 
	 	(e)	 	Cash-Based Awards. The maximum aggregate amount awarded or credited with
respect to Cash-Based Awards to any one Participant in any one Plan Year may not exceed
the greater of the value of $5,000,000 or 600,000 Shares, as adjusted pursuant to
Sections 4.4 and/or 19.2, determined as of the date of vesting or payout, as
applicable.
	 
	 	(f)	 	Other Stock-Based Awards. The maximum aggregate grant with respect to Other
Stock-Based Awards pursuant to Section 10.2 in any one Plan Year to any one Participant
shall be 600,000 Shares, as adjusted pursuant to Sections 4.4 and/or 19.2.





     4.4 Adjustments in Authorized Shares. In the event of any corporate event or transaction
(including, but not limited to, a change in the authorized number of Shares of the Company or the
capitalization of the Company) such as an amalgamation, a merger, consolidation, reorganization,
recapitalization, separation, partial or complete liquidation, stock dividend, stock split, reverse
stock split, split up, spin-off, division, consolidation or other distribution of stock or property
of the Company, combination of Shares, exchange of Shares, dividend in kind, or other like change
in capital structure, number of issued Shares or distribution (other than normal cash dividends) to
shareholders of the Company, or any similar corporate event or transaction, the Committee, in its
sole discretion, in order to prevent dilution or enlargement of Participants’ rights under this
Plan, shall substitute or adjust, as applicable, the number and kind of Shares that may be issued
under this Plan or under particular forms of Awards, the number and kind of Shares subject to
outstanding Awards, the Option Price or Grant Price applicable to outstanding Awards, the Annual
Award Limits, and other value determinations applicable to outstanding Awards.



     The Committee, in its sole discretion, may also make appropriate adjustments in the terms of
any Awards under this Plan to reflect, or related to, such changes or distributions and to modify
any other terms of outstanding Awards, including modifications of performance goals and changes in
the length of Performance Periods. The determination of the Committee as to the foregoing
adjustments, if any, shall be conclusive and binding on Participants under this Plan.



     Subject to the provisions of Article 19 and notwithstanding anything else herein to the
contrary, without affecting the number of Shares reserved or available hereunder, the Committee may
authorize the issuance or assumption of benefits under this Plan in connection with any
amalgamation, merger, consolidation, acquisition of property or stock, or reorganization upon such
terms and conditions as it may deem appropriate (including, but not limited to, a conversion of
equity awards into Awards under this Plan in a manner consistent with paragraph 53 of FASB
Interpretation No. 44 or subsequent accounting guidance), subject to compliance with the rules
under Code Sections 422 and 424, as and where applicable. The Committee shall provide to
Participants reasonable written notice (which may include, without limit, notice by electronic
means) within a reasonable time of any such determinations it makes.



Article 5. Eligibility and Participation




     5.1 Eligibility. Individuals eligible to participate in this Plan include all Employees,
Directors, and Third-Party Service Providers.



     5.2 Actual Participation. Subject to the provisions of this Plan, the Committee may, from
time to time, select from all eligible individuals, those individuals to whom Awards shall be
granted and shall determine, in its sole discretion, the nature of, any and all terms permissible
by law, and the amount of each Award.



     5.3 Leaves of Absence. Notwithstanding any other provision of the Plan to the contrary, for
purposes of determining Awards granted hereunder, a Participant shall not be deemed to have
incurred a termination of employment if such Participant is placed on military or sick leave or
such other leave of absence which is considered as continuing intact the employment relationship
with the Company, any Subsidiary, or any Affiliate. In such a case, the employment relationship
shall be deemed to continue until the date when a Participant’s right to reemployment shall no
longer be guaranteed either by law or contract.



10









 





     5.4 Transfer of Service. Notwithstanding any other provision of the Plan to the contrary, for
purposes of determining Awards granted hereunder, a Participant shall not be deemed to have
incurred a termination of employment if the Participant’s status as an Employee, Director, or
Third-Party Service Provider terminates and the Participant is then, or immediately thereafter
becomes, an eligible individual due to another status or relationship with the Company, any
Subsidiary, or any Affiliate.



     5.5 Termination of Employment. For purposes of Awards granted under this Plan, the Committee
shall have discretion to determine whether a Participant has ceased to be employed by (or, in the
case of a Director or Third Party Service Provider, has ceased providing services to) the Company,
Affiliate and/or any Subsidiary, and the effective date on which such employment (or services)
terminated, or whether any Participant is on an authorized leave of absence. The Committee further
shall have the discretion to determine whether any corporate event or transaction that results in
the sale, spinoff or transfer of a Subsidiary, business group, operating unit, division, or similar
organization constitutes a termination of employment (or services), and, if so, the effective date
of such termination, for purposes of Awards granted under this Plan.



Article 6. Stock Options




     6.1 Grant of Options. Subject to the terms and provisions of this Plan, Options may be
granted to Participants in such number, and upon such terms, and at any time and from time to time
as shall be determined by the Committee, in its sole discretion; provided that ISOs may be granted
only to eligible Employees of the Company or of any parent or subsidiary corporation (as permitted
under Code Sections 422 and 424).



     6.2 Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall
specify the Option Price, the maximum duration of the Option, the number of Shares to which the
Option pertains, the conditions upon which an Option shall become vested and exercisable, and such
other provisions as the Committee shall determine which are not inconsistent with the terms of this
Plan. The Award Agreement also shall specify whether the Option is intended to be an ISO or a
NQSO.



     6.3 Option Price. The Option Price for each grant of an Option under this Plan shall be
determined by the Committee in its sole discretion and shall be specified in the Award Agreement;
provided, however, the Option Price must be at least equal to one hundred percent (100%) of the FMV
of the Shares as determined on the Grant Date. With respect to a Participant who owns, directly or
indirectly, more than ten percent (10%) of the total combined voting power of all classes of the
stock of the Company, any Subsidiary, or any Affiliate, the Option Price of Shares subject to an
ISO shall be at least equal to one hundred and ten percent (110%) of the Fair Market Value of such
Shares on the ISO’s Grant Date. In any event, the Option Price shall not be less than the
aggregate par value of the Shares covered by the Option.



     6.4 Term of Options. Each Option granted to a Participant shall expire at such time as the
Committee shall determine when the Committee approves the grant; provided, however, no Option shall
be exercisable later than the day before the tenth (10th) anniversary of the Grant Date.
Notwithstanding the foregoing, with respect to ISOs, in the case of a Participant who owns,
directly or indirectly, more than ten percent (10%) of the total combined voting power of all
classes of stock of the Company, any Subsidiary, or an Affiliate, no such ISO shall be exercisable
later than the day before the fifth (5th) anniversary of the Grant Date.



     6.5 Exercise of Options. Options granted under this Article 6 shall be exercisable at such
times and be subject to such restrictions and conditions as the Committee shall in each instance
approve, which terms and restrictions need not be the same for each grant or for each Participant.
Notwithstanding the foregoing, the Fair Market Value of Shares to which ISOs are exercisable for
the first time by any Participant during any calendar year shall not exceed one hundred thousand
dollars ($100,000). Any ISOs that become exercisable in excess of such amount shall be deemed
Nonqualified Stock Options to the extent of such excess. In addition, in order to exercise any
ISOs granted under this Article 6, the Participant must be an Employee of the Company, any
Subsidiary, or any Affiliate from the Grant Date until at least three months before the date the
ISO is exercised.



     6.6 Payment. Options granted under this Article 6 shall be exercised by the delivery of a
notice of exercise to the Company or an agent designated by the Company in a form specified or
accepted by the Committee, or by complying with any alternative procedures which may be authorized
by the Committee, setting forth the number of Shares with respect to which the Option is to be
exercised, accompanied by full payment for the Shares.



11









 





     A condition of the issuance of the Shares as to which an Option shall be exercised shall be
the payment of the Option Price. The Option Price of any Option shall be payable, in full, to the
Company, under any of the following methods as determined by the Committee, in its sole discretion:
(a) in cash or its equivalent; (b) by tendering (either by actual delivery or attestation) to the
Company for repurchase previously acquired Shares having an aggregate Fair Market Value at the time
of exercise equal to the Option Price together with an assignment of the proceeds of the Share
repurchase to pay the Option Price (provided that any such repurchase of Shares shall be subject to
the Swiss Code of Obligations); (c) by a cashless (broker-assisted) exercise; (d) by a combination
of (a), (b) and/or (c); or (e) any other method approved or accepted by the Committee in its sole
discretion.



     Subject to any governing rules or regulations, as soon as practicable after receipt of written
notification of exercise and full payment (including satisfaction of any applicable tax
withholding), the Company shall deliver to the Participant evidence of book entry Shares in an
appropriate amount based upon the number of Shares purchased under the Option(s).



     Unless otherwise determined by the Committee, all payments under all of the methods indicated
above shall be paid in United States dollars.



     6.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any
Shares acquired pursuant to the exercise of an Option granted under this Article 6 as it may deem
advisable, including, without limitation, minimum holding period requirements, restrictions under
applicable federal securities laws, under the requirements of any stock exchange or market upon
which such Shares are then listed and/or traded, or under any blue sky or state securities laws
applicable to such Shares.



     6.8 Termination of Employment, Service as a Director or Third-Party Service Provider. Each
Participant’s Award Agreement shall set forth the extent to which the Participant shall have the
right to exercise the Option following termination of the Participant’s employment or services to
the Company, its Affiliates, and/or its Subsidiaries, as the case may be, subject to Sections 5.3
and 5.4. Such provisions shall be determined in the sole discretion of the Committee, shall be
included in the Award Agreement entered into with each Participant, need not be uniform among all
Options issued pursuant to this Article 6, and may reflect distinctions based on, among other
things, the reasons for termination, or reasons relating to breach or threatened breach of
restrictive covenants to which the Participant is subject, if any. Subject to Article 18, in the
event a Participant’s Award Agreement does not set forth such provisions, the following provisions
shall apply:




	 	(a)	 	Involuntary Termination or Resignation for Good Reason. These termination
events apply only to Participants who are Employees or Third-Party Service Providers.
In the event that a Participant’s employment, or service as a Third-Party Service
Provider with the Company, Affiliate and/or any Subsidiary terminates by reason of an
Involuntary Termination or Resignation for Good Reason by the Participant, to the
extent that an Option is not then exercisable, the Option shall immediately become
vested and exercisable with respect to all Shares covered by the Participant’s Option,
and the Option shall remain exercisable until the earlier of (A) the expiration of the
term of the Option, or (B) six (6) months (three (3) months for ISOs) after the date of
such termination.
	 
	 	(b)	 	Death or Disability. These termination events apply to all Participants. In
the event that a Participant’s employment, or service as a Director or Third-Party
Service Provider with the Company, Affiliate and/or any Subsidiary terminates by reason
of death or Disability, to the extent that an Option is not then exercisable, the
Option shall immediately become vested and exercisable with respect to all Shares
covered by the Participant’s Option, and the Option shall remain exercisable until the
earlier of (A) the expiration of the term of the Option, or (B) 12 months after the
date of such termination. In the case of the Participant’s death, the Participant’s
beneficiary or estate may exercise the Option.
	 
	 	(c)	 	Retirement. This termination event shall apply only to Participants who are
Employees. In the event that a Participant’s employment terminates by reason of
Retirement from the Company, Affiliate and/or any Subsidiary, to the extent an Option
is not then exercisable, the Option shall become vested and exercisable as to a number
of Shares determined as follows: (i) the total number of Shares covered by the Option
times (ii) a ratio, the numerator of which is the total




12









 






	 	 	 	number of months of employment from the Grant Date of the Option to the end of the
month in which such termination occurs and the denominator of which is the total
number of months of vesting required for a fully vested Option as set forth in the
Award Agreement. The vested portion of the Option, as determined under this
subsection (c), shall remain exercisable until the earlier of (A) the expiration of
the term of the Option, or (B) 36 months after the date of such termination. The
unvested portion of the Option shall be immediately forfeited.
	 
	 	(d)	 	Termination for Cause. This termination event applies to all Participants. In
the event that a Participant’s employment, or service as a Director or Third-Party
Service Provider with the Company, Affiliate and/or any Subsidiary terminates for
Cause, all Options granted to such Participant shall expire immediately and all rights
to purchase Shares (vested or nonvested) under the Options shall cease upon such
termination. In addition, the provisions of Article 11 shall apply.
	 
	 	(e)	 	Other Termination. This termination event applies to all Participants, as
follows:






	 	(i)	 	In the event that a Participant’s employment, or service as a
Third-Party Service Provider with the Company, Affiliate and/or any Subsidiary
terminates for any reason other than those set forth in subsections (a) through
(d) above, all then vested and exercisable Options shall remain exercisable
from the date of such termination until the earlier of (A) the expiration of
the term of the Option, or (B) 30 days after the date of such termination.
Such Options shall only be exercisable to the extent that they were exercisable
as of such termination date and all unvested Options shall be immediately
forfeited.
	 
	 	(ii)	 	In the event that a Participant’s service as a Director with
the Company, Affiliate and/or any Subsidiary terminates for any reason other
than those set forth in subsections (b) through (d) above, to the extent the
Option is not then exercisable, the Option shall become vested and exercisable
as to a number of Shares determined as follows: (A) the total number of Shares
covered by the Option times (B) a ratio, the numerator of which is the total
number of months of service from the Grant Date of the Option to the end of the
month in which such termination occurs and the denominator of which is the
total number of months of vesting required for a fully vested Option as set
forth in the Award Agreement. The vested portion of the Option, as determined
under this paragraph (ii) shall remain exercisable from the date of such
termination until the earlier of (x) the expiration of the term of the Option,
or (y) 30 days after the date of such termination. The unvested portion of the
Option shall be immediately forfeited.





     6.9 Notification of Disqualifying Disposition. If any Participant shall make any disposition
of Shares issued pursuant to the exercise of an ISO under the circumstances described in Code
Section 421(b) (relating to certain disqualifying dispositions), such Participant shall notify the
Company of such disposition within ten (10) calendar days thereof.



Article 7. Stock Appreciation Rights




     7.1 Grant of SARs. Subject to the terms and conditions of this Plan, SARs may be granted to
Participants at any time and from time to time as shall be determined by the Committee. The
Committee may grant Non-Tandem SARs, Tandem SARs, or any combination of these forms of SARs.



     Subject to the terms and conditions of this Plan, the Committee shall have complete discretion
in determining the number of SARs granted to each Participant and, consistent with the provisions
of this Plan, in determining the terms and conditions pertaining to such SARs.



     The Grant Price for each grant of an SAR shall be determined by the Committee and shall be
specified in the Award Agreement. Notwithstanding the foregoing, the Grant Price of a Non-Tandem
SAR on the Grant Date shall be at least equal to the greater of one hundred percent (100%) of the
FMV of the Shares as determined on the Grant Date or the par value of the Shares. The Grant Price
of a Tandem SAR on the Grant Date shall equal the Option Price of the related Option.



13









 





     7.2 SAR Agreement. Each SAR Award shall be evidenced by an Award Agreement that shall specify
the Grant Price, the term of the SAR, and such other provisions as the Committee shall determine.



     7.3 Term of SAR. The term of an SAR granted under this Plan shall be determined by the
Committee, in its sole discretion, and except as determined otherwise by the Committee and
specified in the SAR Award Agreement, no SAR shall be exercisable later than the day before the
tenth (10th) anniversary of the Grant Date. Notwithstanding the foregoing, for SARs
granted to Participants outside the United States, the Committee has the authority to grant SARs
that have a term greater than ten (10) years.



     7.4 Exercise of Tandem SARs. Tandem SARs may be exercised for all or part of the Shares
subject to the related Option upon the surrender of the right to exercise the equivalent portion of
the related Option. A Tandem SAR may be exercised only with respect to the Shares for which its
related Option is then exercisable. Notwithstanding the foregoing, with respect to a Tandem SAR
granted in connection with an ISO: (i) the Tandem SAR shall expire no later than the expiration of
the underlying ISO; (ii) the value of the payout with respect to the Tandem SAR may be for no more
than one hundred percent (100%) of the difference between the Option Price of the underlying ISO
and the Fair Market Value of the Shares subject to the underlying ISO at the time the Tandem SAR is
exercised; and (iii) the Tandem SAR may be exercised only when the Fair Market Value of the Shares
covered by the ISO exceeds the Option Price of the ISO.



     7.5 Exercise of Non-Tandem SARs. SARs may be exercised upon whatever terms and conditions the
Committee, in its sole discretion, imposes.



     7.6 Settlement of SARs. Upon the exercise of an SAR, a Participant shall be entitled to
receive payment from the Company in an amount determined by multiplying:




	 	(a)	 	The excess of the Fair Market Value of a Share on the date of exercise over the
Grant Price; by
	 
	 	(b)	 	The number of Shares with respect to which the SAR is exercised.





     At the discretion of the Committee, the payment upon SAR exercise may be in cash, fully paid
Shares, or any 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.



     7.7 Termination of Employment, Service as a Director or Third-Party Service Provider. Each
Award Agreement shall set forth the extent to which the Participant shall have the right to
exercise the SAR following termination of the Participant’s employment with or services to the
Company, its Affiliates, and/or its Subsidiaries, as the case may be, subject to Sections 5.3 and
5.4. Such provisions shall be determined in the sole discretion of the Committee, shall be
included in the Award Agreement entered into with Participants, need not be uniform among all SARs
issued pursuant to this Plan, and may reflect distinctions based on, among other things, the
reasons for termination, or reasons relating to breach or threatened breach of restrictive
covenants to which the Participant is subject, if any. Subject to Article 18, in the event a
Participant’s Award Agreement does not set forth such provisions, the following provisions shall
apply:




	 	(a)	 	Involuntary Termination or Resignation for Good Reason. These termination
events apply only to Participants who are Employees or Third-Party Service Providers.
In the event that a Participant’s employment, or service as a Third-Party Service
Provider with the Company, Affiliate and/or any Subsidiary terminates by reason of an
Involuntary Termination or Resignation for Good Reason by the Participant, to the
extent that an SAR is not then exercisable, the SAR shall immediately become vested and
exercisable with respect to all Shares covered by the Participant’s SAR, and the SAR
shall remain exercisable until the earlier of (A) the expiration of the term of the
SAR, or (B) six (6) months (three (3) months for SARs granted in tandem with ISOs)
after the date of such termination.




14









 












	 	(b)	 	Death or Disability. These termination events apply to all Participants. In
the event that a Participant’s employment, or service as a Director or Third-Party
Service Provider with the Company, Affiliate and/or any Subsidiary terminates by reason
of death or Disability, to the extent that an SAR is not then exercisable, the SAR
shall immediately become vested and exercisable with respect to all Shares covered by
the Participant’s SAR, and the SAR shall remain exercisable until the earlier of (A)
the expiration of the term of the SAR, or (B) 12 months after the date of such
termination. In the case of the Participant’s death, the Participant’s beneficiary or
estate may exercise the SAR.
	 
	 	(c)	 	Retirement. This termination event applies only to Participants who are
Employees. In the event that a Participant’s employment terminates by reason of
Retirement from the Company, Affiliate and/or any Subsidiary, to the extent an SAR is
not then exercisable, the SAR shall become vested and exercisable as to a number of
Shares determined as follows: (i) the total number of Shares covered by the SAR times
(ii) a ratio, the numerator of which is the total number of months of employment from
the Grant Date of the SAR to the end of the month in which such termination occurs and
the denominator of which is the total number of months of vesting required for a fully
vested SAR as set forth in the Award Agreement. The vested portion of the SAR, as
determined under this subsection (c), shall remain exercisable until the earlier of (A)
the expiration of the term of the SAR, or (B) 36 months after the date of such
termination. The unvested portion of the SAR shall be immediately forfeited.
	 
	 	(d)	 	Termination for Cause. This termination event applies to all Participants. In
the event that a Participant’s employment, or service as a Director or Third-Party
Service Provider with the Company, Affiliate and/or any Subsidiary terminates for
Cause, all SARs granted to such Participant shall expire immediately and all rights to
purchase Shares (vested or nonvested) under the SARs shall cease upon such termination.
In addition, the provisions of Article 11 shall apply.
	 
	 	(e)	 	Other Termination. This termination event applies to all Participants, as
follows:






	 	(i)	 	In the event that a Participant’s employment, or service as a
Third-Party Service Provider with the Company, Affiliate and/or any Subsidiary
terminates for any reason other than those set forth in subsections (a) through
(d) above, all then vested and exercisable SARs shall remain exercisable from
the date of such termination until the earlier of (A) the expiration of the
term of the SAR, or (B) 30 days after the date of such termination. Such SARs
shall only be exercisable to the extent that they were exercisable as of such
termination date and all unvested SARs shall be immediately forfeited.
	 
	 	(ii)	 	In the event that a Participant’s service as a Director with
the Company, Affiliate and/or any Subsidiary terminates for any reason other
than those set forth in subsections (b) through (d) above, to the extent the
SAR is not then exercisable, the SAR shall become vested and exercisable as to
a number of Shares determined as follows: (A) the total number of Shares
covered by the SAR times (B) a ratio, the numerator of which is the total
number of months of service from the Grant Date of the SAR to the end of the
month in which such termination occurs and the denominator of which is the
total number of months of vesting required for a fully vested SAR as set forth
in the Award Agreement. The vested portion of the SAR, as determined under
this paragraph (ii) shall remain exercisable from the date of such termination
until the earlier of (x) the expiration of the term of the SAR, or (y) 30 days
after the date of such termination. The unvested portion of the SAR shall be
immediately forfeited.





     7.8 Other Restrictions. The Committee shall impose such other conditions and/or restrictions
on any Shares received upon exercise of an SAR granted pursuant to this Plan as it may deem
advisable or desirable. These restrictions may include, but shall not be limited to, a requirement
that the Participant hold the Shares received upon exercise of an SAR for a specified period of
time.



15









 





Article 8. Restricted Stock and Restricted Stock Units




     8.1 Grant of Restricted Stock or Restricted Stock Units. Subject to the terms and provisions
of this Plan, the Committee, at any time and from time to time, may grant Restricted Stock and/or
Restricted Stock Units to Participants in such amounts as the Committee shall determine.
Restricted Stock Units shall be similar to Restricted Stock except that no Shares are actually
awarded.



     8.2 Restricted Stock or Restricted Stock Unit Agreement. Each Restricted Stock and/or
Restricted Stock Unit grant shall be evidenced by an Award Agreement that shall specify the
Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted
Stock Units granted, and such other provisions as the Committee shall determine.



     8.3 Other Restrictions. The Committee shall impose such other conditions and/or restrictions
on any Shares of Restricted Stock or Restricted Stock Units granted pursuant to this Plan as it may
deem advisable including, without limitation, a requirement that Participants pay a stipulated
purchase price for each Share of Restricted Stock or each Restricted Stock Unit, restrictions based
upon the achievement of specific performance goals, time-based restrictions on vesting following
the attainment of the performance goals, time-based restrictions, and/or restrictions under
Applicable Laws or under the requirements of any stock exchange or market upon which such Shares
are listed or traded, or holding requirements or sale restrictions placed on the Shares by the
Company upon vesting of such Restricted Stock or Restricted Stock Units.



     8.4 [deleted]



     8.5 Voting Rights. Unless otherwise set forth in a Participant’s Award Agreement and
permitted by Applicable Law, a Participant holding Shares of Restricted Stock granted hereunder
shall be granted the right to exercise full voting rights with respect to those Shares during the
Period of Restriction. A Participant shall have no voting rights with respect to any Restricted
Stock Units granted hereunder.



     8.6 Termination of Employment, Service as a Director or Third-Party Service Provider. Each
Award Agreement shall set forth the extent to which the restrictions placed on Restricted Stock
and/or Restricted Stock Units shall lapse following termination of the Participant’s employment
with or services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be,
subject to Sections 5.3 and 5.4. Such provisions shall be determined in the sole discretion of the
Committee, shall be included in the Award Agreement entered into with each Participant, need not be
uniform among all Shares of Restricted Stock or Restricted Stock Units issued pursuant to this
Plan, and may reflect distinctions based on, among other things, the reasons for termination, or
reasons relating to breach or threatened breach of restrictive covenants to which the Participant
is subject, if any. Subject to Article 18, in the event a Participant’s Award Agreement does not
set forth such provisions, the following provisions shall apply:




	 	(a)	 	Involuntary Termination or Resignation for Good Reason. These termination
events apply only to Participants who are Employees or Third-Party Service Providers.






	 	(i)	 	If the Award is not intended to qualify for the
Performance-Based Exception, in the event that a Participant’s employment or
service, as the case may be, with the Company, Affiliate and/or any Subsidiary
terminates by reason of an Involuntary Termination or Resignation for Good
Reason by the Participant, to the extent any Shares of Restricted Stock or
Restricted Stock Units, as the case may be, are not then vested, all Shares of
Restricted Stock or all Restricted Stock Units, as the case may be, shall
immediately become fully vested on the date of such termination and any
restrictions shall lapse.
	 
	 	(ii)	 	If the Award granted to Participants who are Employees is
intended to qualify for the Performance-Based Exception, the Award shall become
fully vested and any restrictions shall lapse upon attainment of the applicable
Performance Measures.






	 	(b)	 	Death or Disability. These termination events apply to all Participants.




16









 












	 	(i)	 	If the Award is not intended to qualify for the
Performance-Based Exception, in the event that a Participant’s employment, or
service as a Director or Third-Party Service Provider with the Company,
Affiliate and/or any Subsidiary terminates by reason of death or Disability, to
the extent any Shares of Restricted Stock or Restricted Stock Units, as the
case may be, are not then vested, all Shares of Restricted Stock or all
Restricted Stock Units, as the case may be, shall immediately become fully
vested on the date of such termination and any restrictions shall lapse.
	 
	 	(ii)	 	If the Award granted to Participants who are Employees is
intended to qualify for the Performance-Based Exception, the Award shall become
fully vested and any restrictions shall lapse upon attainment of the applicable
Performance Measures.






	 	(c)	 	Retirement. This termination event applies only to Participants who are
Employees.






	 	(i)	 	If the Award is not intended to qualify for the
Performance-Based Exception, in the event that a Participant’s employment
terminates by reason of Retirement from the Company, Affiliate and/or any
Subsidiary, to the extent any Award covering Shares of Restricted Stock or
Restricted Stock Units, as the case may be, are not then vested, the Award
shall become vested on the date of such termination (for Shares of Restricted
Stock, upon attainment of age 65 regardless of whether there is a termination
of employment) and any restrictions shall lapse as to a number of Shares or
Units, as the case may be, determined as follows: (A) the total number of
Shares of Restricted Stock or Restricted Units, as applicable, times (B) a
ratio, the numerator of which is the total number of months of employment from
the Grant Date of the Award to the end of the month in which the Participant’s
termination occurs (for Shares of Restricted Stock, attainment of age 65
occurs) and the denominator of which is the total number of months of vesting
required for a fully vested Award as set forth in the Award Agreement.
	 
	 	(ii)	 	If the Award is intended to qualify for the Performance-Based
Exception, the Award shall become vested to the extent described in this
subsection (c) and any restrictions on the vested portion shall lapse upon
attainment of the applicable Performance Measures.






	 	(d)	 	Termination for Cause. This termination event applies to all Participants. In
the event that a Participant’s employment, or service as a Director or Third-Party
Service Provider with the Company, Affiliate and/or any Subsidiary terminates for Cause
all vested and unvested Shares of Restricted Stock or all vested and unvested
Restricted Stock Units, as the case may be, shall be forfeited to the Company. In
addition, the provisions of Article 11 shall apply.
	 
	 	(e)	 	Other Termination. This termination event applies to all Participants, as
follows:






	 	(i)	 	In the event that a Participant’s employment, or service as a
Third-Party Service Provider with the Company, Affiliate and/or any Subsidiary
terminates for any reason other than as described in subsections (a) through
(d), all unvested Shares of Restricted Stock or all unvested Restricted Stock
Units, as the case may be, shall be immediately forfeited to the Company.
	 
	 	(ii)	 	In the event that a Participant’s service as a Director with
the Company, Affiliate and/or any Subsidiary terminates for any reason other
than as described in subsections (b) through (d), to the extent any Award
covering Shares of Restricted Stock or Restricted Stock Units, as the case may
be, are not then vested, the Award shall become vested on the date of such
termination and any restrictions shall lapse as to a number of Shares or Units,
as the case may be, determined as follows: (A) the total number of Shares of
Restricted Stock or Restricted Units, as applicable, times (B) a ratio, the
numerator of which is the total number of months of service from the Grant Date
of the Award to the end of the month in which the Participant’s termination
occurs and the denominator of which is the total number of months of vesting
required for a fully vested Award as set




17









 






	 	 	 	forth in the Award Agreement. The unvested portion of the Award shall be
immediately forfeited to the Company.





     8.7 Forfeiture and Right of Repurchase. In the event that any Shares are required to be
forfeited under any circumstances set forth in this Article 8, Article 20 or otherwise under this
Plan or an Award Agreement, then the Company shall have the right (but not the obligation) to
repurchase any or all of such forfeited Shares for $0.001 per Share repurchased. The Company shall
have 90 days from the date of any event giving rise to forfeiture within which to effect a
repurchase of any or all of the Shares subject to such forfeiture conditions. The Company’s right
to repurchase the Shares is assignable by the Company, in its sole discretion, to a Subsidiary,
Affiliate or other party to whom such rights can be assigned under Applicable Laws.



     8.8 Section 83(b) Election. The Committee may provide in an Award Agreement that the Award of
Restricted Stock is conditioned upon the Participant making or refraining from making an election
with respect to the Award under Code Section 83(b). If a Participant makes an election pursuant to
Code Section 83(b) concerning a Restricted Stock Award, the Participant shall be required to file
promptly a copy of such election with the Company.



Article 9. Performance Units/Performance Shares




     9.1 Grant of Performance Units/Performance Shares. Subject to the terms and provisions of
this Plan, the Committee, at any time and from time to time, may grant Performance Units and/or
Performance Shares to Participants in such amounts and upon such terms as the Committee shall
determine.



     9.2 Performance Unit/Performance Shares Agreement. Each Performance Unit and/or Performance
Share grant shall be evidenced by an Award Agreement that shall specify the number of Performance
Shares or the number of Performance Units granted, the applicable Performance Period, and such
other terms and provisions as the Committee shall determine.



     9.3 Value of Performance Units/Performance Shares. Each Performance Unit shall have an
initial value that is established by the Committee at the time of grant. Each Performance Share
shall have an initial value equal to the Fair Market Value of a Share on the Grant Date. The
Committee shall set performance goals in its discretion which, depending on the extent to which
they are met, will determine the value and/or number of Performance Units/Performance Shares that
will be paid out to the Participant.



     9.4 Earning of Performance Units/Performance Shares. Subject to the terms of this Plan, after
the applicable Performance Period has ended, the holder of Performance Units/Performance Shares
shall be entitled to receive payout on the value and number of Performance Units/Performance Shares
earned by the Participant over the Performance Period, to be determined as a function of the extent
to which the corresponding performance goals have been achieved.



     9.5 Form and Timing of Payment of Performance Units/Performance Shares. Payment of earned
Performance Units/Performance Shares shall be as determined by the Committee and as evidenced in
the Award Agreement. Subject to the terms of this Plan, the Committee, in its sole discretion, may
pay earned Performance Units/Performance Shares in the form of cash or in fully paid Shares (or in
a combination thereof) equal to the value of the earned Performance Units/Performance Shares at the
close of the applicable Performance Period, or as soon as practicable after the end of the
Performance Period. Any Shares may be granted subject to any restrictions deemed appropriate by
the Committee. The determination of the Committee with respect to the form of payout of such
Awards shall be set forth in the Award Agreement pertaining to the grant of the Award.



     9.6 Termination of Employment, Service as a Director or Third-Party Service Provider. Each
Award Agreement shall set forth the extent to which the Participant shall have the right to receive
payment for any Performance Units and/or Performance Shares following termination of the
Participant’s employment with or services to the Company, its Affiliates, and/or its Subsidiaries,
as the case may be, subject to Sections 5.3 and 5.4. Such provisions shall be determined in the
sole discretion of the Committee, shall be included in the Award Agreement entered into with each
Participant, need not be uniform among all Awards of Performance Units or Performance Shares issued
pursuant to this Plan, and may reflect distinctions based on, among other things, the reasons for
termination, or reasons relating to the breach or threatened breach of restrictive covenants to
which the



18









 







Participant is subject, if any. Subject to Article 18, in the event that a Participant’s
Award Agreement does not set forth such termination provisions, the following termination
provisions shall apply:




	 	(a)	 	Involuntary Termination or Resignation for Good Reason. These termination
events apply only to Participants who are Employees or Third-Party Service Providers.






	 	(i)	 	If the Award is not intended to qualify for the
Performance-Based Exception, in the event that a Participant’s employment or
service, as the case may be, with the Company, Affiliate and/or any Subsidiary
terminates by reason of an Involuntary Termination or Resignation for Good
Reason by the Participant, the Participant shall receive a full payout of the
Performance Units and/or Performance Shares.
	 
	 	(ii)	 	If the Award granted to Participants who are Employees is
intended to qualify for the Performance-Based Exception, the Participant shall
receive a payout as determined under this subsection (a) upon attainment of the
applicable Performance Measures.






	 	(b)	 	Death or Disability. These termination events apply to all Participants.






	 	(i)	 	If the Award is not intended to qualify for the
Performance-Based Exception, in the event that a Participant’s employment or
service, as the case may be, with the Company, Affiliate and/or any Subsidiary
terminates by reason of death or Disability, the Participant shall receive a
full payout of the Performance Units and/or Performance Shares.
	 
	 	(ii)	 	If the Award granted to Participants who are Employees is
intended to qualify for the Performance-Based Exception, the Participant shall
receive a payout as determined under this subsection (b) upon attainment of the
applicable Performance Measures.






	 	(c)	 	Retirement. This termination event applies only to Participants who are
Employees.






	 	(i)	 	If the Award is not intended to qualify for the
Performance-Based Exception, in the event that a Participant’s employment with
the Company, Affiliate and/or any Subsidiary, terminates during a Performance
Period due to Retirement, the Participant shall receive a prorated payout of
the Performance Units and/or Performance Shares, unless the Committee
determines otherwise. The prorated payout shall be determined by the
Committee, shall be based upon the length of time that the Participant held the
Performance Units and/or Performance Shares during the Performance Period, and
shall further be adjusted based on the achievement of the pre-established
performance goals.
	 
	 	(ii)	 	If the Award is intended to qualify for the Performance-Based
Exception, the Participant shall receive a payout as determined under this
subsection (c) upon attainment of the applicable Performance Measures.






	 	(d)	 	Termination for Cause. This termination event applies to all Participants. In
the event that a Participant’s employment, or service as a Director or Third-Party
Service Provider with the Company, Affiliate and/or any Subsidiary terminates for Cause
during a Performance Period, all Performance Units and/or Performance Shares (vested or
unvested) shall be immediately forfeited to the Company. In addition, the provisions
of Article 11 shall apply.
	 
	 	(e)	 	Other Termination. This termination event applies to all Participants, as
follows:






	 	(i)	 	In the event that a Participant’s employment, or service as a
Third-Party Service Provider with the Company, Affiliate and/or any Subsidiary
terminates during a Performance Period for any reason other than as described
in subsections (a) through (d), all unvested




19









 






	 	 	 	Performance Units and/or Performance Shares shall be immediately forfeited
to the Company.
	 
	 	(ii)	 	In the event that a Participant’s service as a Director with
the Company, Affiliate and/or any Subsidiary terminates during a Performance
Period for any reason other than as described in subsections (b) through (d),
to the extent any Award covering Performance Units and/or Performance Shares
are not then vested, the Award shall become vested on the date of such
termination and any restrictions shall lapse as to a number of Performance
Units or Performance Shares, as the case may be, determined as follows: (A)
the total number of Performance Shares or Performance Units, as applicable,
times (B) a ratio, the numerator of which is the total number of months of
service from the Grant Date of the Award to the end of the month in which the
Participant’s termination occurs and the denominator of which is the total
number of months of vesting required for a fully vested Award as set forth in
the Award Agreement. The unvested portion of the Award shall be immediately
forfeited to the Company.





     9.7 Forfeiture and Right of Repurchase. In the event that any Shares are required to be
forfeited under any circumstances set forth in this Article 9, Article 20 or otherwise under this
Plan or an Award Agreement, then the Company shall have the right (but not the obligation) to
repurchase any or all of such forfeited Shares for $0.001 per Share repurchased. The Company shall
have 90 days from the date of any event giving rise to forfeiture within which to effect a
repurchase of any or all of the Shares subject to such forfeiture conditions. The Company’s right
to repurchase the Shares is assignable by the Company, in its sole discretion, to a Subsidiary,
Affiliate or other party to whom such rights can be assigned under Applicable Laws.



Article 10. Cash-Based Awards and Other Stock-Based Awards




     10.1 Grant of 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 to Participants in such
amounts and upon such terms as the Committee may determine.



     10.2 Other Stock-Based Awards. The Committee may grant other types of equity-based or
equity-related Awards not otherwise described by the terms of this Plan (including the grant or
offer for sale of unrestricted Shares) in such amounts and subject to such terms and conditions, as
the Committee shall determine. Such Awards may involve the transfer of actual fully paid Shares to
Participants, or payment in cash or otherwise of amounts based on the value of Shares 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.



     10.3 Cash-Based Award or Stock-Based Award Agreement. Each Cash-Based Award or Stock-Based
Award grant shall be evidenced by an Award Agreement that shall specify the amount of the
Cash-Based Award or Stock-Based Award granted and such other terms and provisions as the Committee
shall determine; provided that no Award Agreement shall provide for the issuance of Shares except
on a fully paid basis.



     10.4 Value of Cash-Based and Other Stock-Based Awards. Each Cash-Based Award shall specify a
payment amount or payment range as determined by the Committee. Each Other Stock-Based Award shall
be expressed in terms of Shares or units based on Shares, as determined by the Committee. The
Committee may establish performance goals in its discretion. If the Committee exercises its
discretion to establish performance goals, the number and/or value of Cash-Based Awards or Other
Stock-Based Awards that will be paid out to the Participant will depend on the extent to which the
performance goals are met, and provided the cash or services received by the Company in exchange
for Shares shall have a value not less than the aggregate par value of any Shares issued as part of
such other Stock-Based Award.



     10.5 Payment of Cash-Based Awards and Other Stock-Based Awards. Payment, if any, with respect
to a Cash-Based Award or an Other Stock-Based Award shall be made in accordance with the terms of
the Award, in cash or fully paid Shares as the Committee determines.



     10.6 Termination of Employment, Service as a Director or Third-Party Service Provider. The
Committee shall determine the extent to which the Participant shall have the right to receive
Cash-Based Awards or



20









 







Other Stock-Based Awards following termination of the Participant’s employment with or
provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be,
subject to Sections 5.3 and 5.4. Such provisions shall be determined in the sole discretion of the
Committee, such provisions may be included in an agreement entered into with each Participant, but
need not be uniform among all Awards of Cash-Based Awards or Other Stock-Based Awards issued
pursuant to the Plan, and may reflect distinctions based on the reasons for termination, or reasons
relating to the breach or threatened breach of restrictive covenants to which the Participant is
subject, if any. Subject to Article 18, in the event that a Participant’s Award Agreement does not
set forth such termination provisions, the following termination provisions shall apply:




	 	(a)	 	Involuntary Termination or Resignation for Good Reason. These termination
events apply only to Participants who are Employees or Third-Party Service Providers.






	 	(i)	 	If the Award is not intended to qualify for the
Performance-Based Exception, in the event that a Participant’s employment or
service, as the case may be, with the Company, Affiliate and/or any Subsidiary
terminates by reason of an Involuntary Termination or Resignation for Good
Reason by the Participant, the Participant shall receive a full payout of the
Performance Units and/or Performance Shares.
	 
	 	(ii)	 	If the Award granted to Participants who are Employees is
intended to qualify for the Performance-Based Exception, the Participant shall
receive a payout as determined under this subsection (a) upon attainment of the
applicable Performance Measures.






	 	(b)	 	Death or Disability. These termination events apply to all Participants.






	 	(i)	 	If the Award is not intended to qualify for the
Performance-Based Exception, in the event that a Participant’s employment or
service, as the case may be, with the Company, Affiliate and/or any Subsidiary
terminates by reason of death or Disability, the Participant shall receive a
full payout of the Award.
	 
	 	(ii)	 	If the Award granted to Participants who are Employees is
intended to qualify for the Performance-Based Exception, the Participant shall
receive a payout as determined under this subsection (b) upon attainment of the
applicable Performance Measures.






	 	(c)	 	Retirement. This termination event applies only to Participants who are
Employees.






	 	(i)	 	If the Award is not intended to qualify for the
Performance-Based Exception, in the event that a Participant’s employment with
the Company, Affiliate and/or any Subsidiary, terminates during a Performance
Period due to Retirement, the Participant shall receive a prorated payout of
the Award, unless the Committee determines otherwise. The prorated payout
shall be determined by the Committee, shall be based upon the length of time
that the Participant held the Award during the Performance Period, and shall
further be adjusted based on the achievement of the pre-established performance
goals. Unless the Committee determines otherwise in the event of Retirement,
payment of the earned Award shall be made at the same time as payments are made
to Participants who did not terminate employment during the applicable
Performance Period.
	 
	 	(ii)	 	If the Award is intended to qualify for the Performance-Based
Exception, the Participant shall receive a payout as determined under this
subsection (c) upon attainment of the applicable Performance Measures.






	 	(d)	 	Termination for Cause. This termination event applies to all Participants. In
the event that a Participant’s employment, or service as a Director or Third-Party
Service Provider with the Company, Affiliate and/or any Subsidiary terminates for Cause
the Award (vested or unvested) shall be immediately forfeited to the Company. In
addition, the provisions of Article 11 shall apply.




21









 












	 	(e)	 	Other Termination. This termination event applies to all Participants, as
follows:






	 	(i)	 	In the event that a Participant’s employment, or service as a
Third-Party Service Provider with the Company, Affiliate and/or any Subsidiary
terminates during a Performance Period for any reason other than as described
in subsections (a) through (d), the unvested portion of the Award shall be
immediately forfeited to the Company.
	 
	 	(ii)	 	In the event that a Participant’s service as a Director with
the Company, Affiliate and/or any Subsidiary terminates during a Performance
Period for any reason other than as described in subsections (b) through (d),
to the extent the Award is unvested, the Award shall become vested on the date
of such termination and any restrictions shall lapse as to a portion of the
Award determined as follows: (A) the total value of the Award times (B) a
ratio, the numerator of which is the total number of months of service from the
Grant Date of the Award to the end of the month in which the Participant’s
termination occurs and the denominator of which is the total number of months
of vesting or the performance period required for a fully vested Award as set
forth in the Award Agreement. The unvested portion of the Award shall be
immediately forfeited to the Company.





     10.7 Forfeiture and Right of Repurchase. In the event that any Shares are required to be
forfeited under any circumstances set forth in this Article 10, Article 20 or otherwise under this
Plan or an Award Agreement, then the Company shall have the right (but not the obligation) to
repurchase any or all of such forfeited Shares for $0.001 per Share repurchased. The Company shall
have 90 days from the date of any event giving rise to forfeiture within which to effect a
repurchase of any or all of the Shares subject to such forfeiture conditions. The Company’s right
to repurchase the Shares is assignable by the Company, in its sole discretion, to a Subsidiary,
Affiliate or other party to whom such rights can be assigned under Applicable Laws.



Article 11. Forfeiture of Awards.




     11.1 General. Notwithstanding anything else to the contrary contained herein, the Committee
in granting any Award shall have the full power and authority to determine whether, to what extent
and under what circumstances such Award shall be forfeited, cancelled or suspended. Unless an
Award Agreement includes provisions expressly superseding the provisions of this Article 11, the
provisions of this Article 11 shall apply to all Awards. Any such forfeiture shall be effected by
the Company in such manner and to such degree as the Committee, in its sole discretion, determines,
and will in all events (including as to the provisions of this Article 11) be subject to the
Applicable Laws.



     In order to effect a forfeiture under this Article 11, the Committee may require that the
Participant sell Shares received upon exercise or settlement of an Award to the Company or to such
other person as the Company may designate at such price and on such other terms and conditions as
the Committee in its sole discretion may require. Further, as a condition of each Award, the
Company shall have, and each Participant shall be deemed to have given the Company, a proxy on each
Participant’s behalf, and each Participant shall be required and be deemed to have agreed to
execute any other documents necessary or appropriate to carry out this Article 11.



     11.2 Forfeiture Events. Unless otherwise specified by the Committee, in addition to any
vesting or other forfeiture or repurchase conditions that may apply to an Award and Shares issued
pursuant to an Award, each Award granted under the Plan will be subject to the following forfeiture
conditions:




	 	(a)	 	Competitive Activity. All outstanding Awards and Shares issued pursuant to an
Award held by an Participant will be forfeited in their entirety (including as to any
portion of an Award or Shares subject thereto that are vested or as to which any
repurchase or resale rights or forfeiture restrictions in favor of the Company or its
designee with respect to such Shares have previously lapsed) if the Participant,
without the consent of the Company, while employed or in service, as the case may be,
or within six (6) months after termination of employment or service, establishes an
employment or similar relationship with a competitor of the Company or engages in any
similar activity that is in conflict with or adverse to the interests of the Company,
as determined by the Committee in its sole discretion; provided, that if an Participant
has sold Shares issued upon




22









 






	 	 	 	exercise or settlement of an Award within six (6) months prior to the date on which
the Participant would otherwise have been required to forfeit such Shares or the
Option under this subsection (a) as a result of the Participant’s competitive or
similar acts, then the Company will be entitled to recover any and all profits
realized by the Participant in connection with such sale.
	 
	 	(b)	 	Termination for Cause. All outstanding Awards and Shares issued pursuant to an
Award held by an Participant will be forfeited in their entirety (including as to any
portion of an Award or Shares subject thereto that are vested or as to which any
repurchase or resale rights or forfeiture restrictions in favor of the Company or its
designee have previously lapsed) if the Participant’s employment or service is
terminated by the Company for Cause; provided, however, that if an Participant has sold
Shares issued upon exercise or settlement of an Award within six (6) months prior to
the date on which the Participant would otherwise have been required to forfeit such
Shares under this subsection (b) as a result of termination of the Participant’s
employment or service for Cause, then the Company will be entitled to recover any and
all profits realized by the Participant in connection with such sale; and provided
further, that in the event the Committee determines that it is necessary to establish
whether grounds exist for termination for Cause, the Award will be suspended during any
period required to conduct such determination, meaning that the vesting, exercisability
and/or lapse of restrictions otherwise applicable to the Award will be tolled and if
grounds for such termination are determined to exist, the forfeiture specified by this
subsection (b) will apply as of the date of suspension, and if no such grounds are
determined to exist, the Award will be reinstated on its original terms.





Article 12. Transferability of Awards




     12.1 Transferability. Except as provided in Section 12.2 below, during a Participant’s
lifetime, his or her Awards shall be exercisable only by the Participant or the Participant’s legal
representative. Except as permitted by the Committee, Awards shall not be transferable other than
by will or the laws of descent and distribution; no Awards shall be subject, in whole or in part,
to attachment, execution, or levy of any kind; and any purported transfer in violation hereof shall
be null and void. The Committee may establish such procedures as it deems appropriate for a
Participant to designate a beneficiary to whom any amounts payable or Shares deliverable in the
event of, or following, the Participant’s death, may be provided.



     12.2 Committee Action. The Committee may, in its discretion, determine that notwithstanding
Section 12.1, any or all Awards (other than ISOs) shall be transferable to and exercisable by such
transferees, and subject to such terms and conditions, as the Committee may deem appropriate;
provided, however, no Award may be transferred for value (as defined in the General Instructions to
Form S-8).



     For the sole purpose of enabling electronic trading of awarded Shares, the awarded Shares must
be assigned and transferred to Cede & Co., the Nominee of the Bank Depository Trust Company, a U.S.
clearing agency. Any Shares not held by Cede & Co. must be separately registered by a Participant
prior to sale or trading.



Article 13. Performance Measures




     13.1 Performance Measures. The performance goals upon which the payment or vesting of an
Award to a Covered Employee that is intended to qualify as Performance-Based Compensation shall be
limited to the following Performance Measures:




	 	(a)	 	Net earnings or net income (before or after taxes);
	 
	 	(b)	 	Earnings per share (basic or fully diluted);
	 
	 	(c)	 	Net sales or revenue growth;
	 
	 	(d)	 	Net operating profit;
	 
	 	(e)	 	Return measures (including, but not limited to, return on assets, capital,
invested capital, equity, sales, or revenue);
	 
	 	(f)	 	Cash flow (including, but not limited to, operating cash flow, free cash flow,
cash flow return on equity, and cash flow return on investment);
	 
	 	(g)	 	Earnings before or after taxes, interest, depreciation, and/or amortization;
	 
	 	(h)	 	Booking activity and Backlog growth (including, but not limited to, as measured
in man-hours, future revenues, Foster Wheeler scope and/or contract profit);




23









 






	 	(i)	 	Gross or operating margins;
	 
	 	(j)	 	Productivity ratios;
	 
	 	(k)	 	Share price (including, but not limited to, growth measures and total
shareholder return);
	 
	 	(l)	 	Expense targets;
	 
	 	(m)	 	Leverage targets (including, but not limited to, absolute amount of
consolidated debt, EBITDA/consolidated debt ratios and/or debt to equity ratios);
	 
	 	(n)	 	Credit rating targets;
	 
	 	(o)	 	Margins;
	 
	 	(p)	 	Operating efficiency;
	 
	 	(q)	 	Safety;
	 
	 	(r)	 	Market share;
	 
	 	(s)	 	Customer satisfaction;
	 
	 	(t)	 	Working capital targets;
	 
	 	(u)	 	Economic value added or EVA® (net operating profit after tax minus
the sum of capital multiplied by the cost of capital);
	 
	 	(v)	 	Developing new products and lines of revenue;
	 
	 	(w)	 	Reducing operating expenses;
	 
	 	(x)	 	Developing new markets;
	 
	 	(y)	 	Meeting completion schedules;
	 
	 	(z)	 	Developing and managing relationships with regulatory and other governmental
agencies;
	 
	 	(aa)	 	Managing cash;
	 
	 	(bb)	 	Managing claims against the Company, including litigation; and
	 
	 	(cc)	 	Identifying and completing strategic acquisitions.





     Any Performance Measure(s) may be used to measure the performance of the Company, any
Subsidiary, or an Affiliate as a whole or any business unit of the Company, any Subsidiary, or an
Affiliate or any combination thereof, as the Committee may deem appropriate, or any of the above
Performance Measures as compared to the performance of a group of comparator companies, or
published or special index that the Committee, in its sole discretion, deems appropriate, or the
Committee may select Performance Measure (j) above as compared to various stock market indices.
The Committee also has the authority to provide for accelerated vesting of any Award based on the
achievement of performance goals pursuant to the Performance Measures specified in this Article 13.



     Notwithstanding the foregoing, for each Award designed to qualify for the Performance-Based
Exception, the Committee shall establish and set forth in the Award the applicable performance
goals for that Award no later than the latest date that the Committee may establish such goals
without jeopardizing the ability of the Award to qualify for the Performance-Based Exception and
the Committee shall be satisfied that the attainment of such Performance Measure(s) shall represent
value to the Company in an amount not less than the par value of any related Performance Shares.



     13.2 Evaluation of Performance. Subject to Section 13.3, the Committee may provide in any
such Award that any evaluation of performance may include or exclude any of the following events
that occurs during a Performance Period: (a) asset write-downs and other asset revaluations, (b)
litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting
principles, or other laws or provisions affecting reported results, (d) any reorganization and
restructuring programs, (e) extraordinary nonrecurring items as described in Accounting Principles
Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and
results of operations appearing in the Company’s annual report to shareholders for the applicable
year, (f) acquisitions or divestitures, (g) foreign exchange gains and losses, and (h) changes in
material liability estimates. To the extent such inclusions or exclusions affect Awards to Covered
Employees, they shall be prescribed in a form that meets the requirements of Code Section 162(m)
for deductibility.



     13.3 Adjustment of Performance-Based Compensation. The degree of payout and/or vesting of
Awards designed to qualify for the Performance-Based Exception shall be determined based upon the
written certification of the Committee as to the extent to which the performance goals and any
other material terms and conditions precedent to such payment and/or vesting have been satisfied.
The Committee shall have the sole discretion to adjust the determinations of the value and degree
of attainment of the pre-established performance goals; provided, however, that the performance
goals applicable to Awards which are designed to qualify for the



24









 







Performance-Based Exception, and which are held by Covered Employees, may not be adjusted so
as to increase the payment under the Award (the Committee shall retain the sole discretion to
adjust such performance goals upward, or to otherwise reduce the amount of the payment and/or
vesting of the Award relative to the pre-established performance goals).



     13.4 Committee Discretion. In the event that applicable tax and/or securities laws change to
permit Committee discretion to alter the governing Performance Measures without obtaining
shareholder approval of such changes, the Committee shall have sole discretion to make such changes
without obtaining shareholder approval. In addition, in the event that the Committee determines
that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the
Committee may make such grants without satisfying the requirements of Code Section 162(m) and base
vesting on Performance Measures other than those set forth in Section 13.1.



Article 14. Director Awards




     The Board shall determine all Awards to Directors. The terms and conditions of any grant to
any such Director shall be set forth in an Award Agreement and shall be otherwise subject to the
Plan.



Article 15. Dividend Equivalents




     Any Participant selected by the Committee may be granted dividend equivalents based on the
dividends declared on Shares that are subject to any Award, to be credited as of dividend payment
dates, during the period between the date the Award is granted and the date the Award is exercised,
vests or expires, as determined by the Committee. Such dividend equivalents shall be converted to
cash or additional Shares by such formula and at such time and subject to such limitations as may
be determined by the Committee. Notwithstanding the foregoing, no dividend equivalent described in
this Article 15 which is conditioned on exercise of a Nonqualified Stock Option or a Stock
Appreciation Right may be provided under this Plan.



     Notwithstanding the foregoing, if the grant of an Award to a Covered Employee is designed to
comply with the requirements of the Performance-Based Exception, the Committee may apply any
restrictions it deems appropriate to the payment of dividends declared with respect to such Award,
such that the dividends and/or the Award maintain eligibility for the Performance-Based Exception.
With respect to Restricted Stock and/or Restricted Stock Units, in the event that any dividend
constitutes a derivative security or an equity security pursuant to the rules under Section 16 of
the Exchange Act, such dividend shall be subject to a vesting period equal to the remaining vesting
period of the Shares of Restricted Stock and/or Restricted Stock Unit with respect to which the
dividend is paid.



Article 16. Beneficiary Designation




     Each Participant under this Plan may, from time to time, name any beneficiary or beneficiaries
(who may be named contingently or successively) to whom any benefit under this Plan is to be paid
in case of his death before he receives any or all of such benefit. Each such designation
shall revoke all prior designations by the same Participant, shall be in a form prescribed by the
Committee, and will be effective only when filed by the Participant in writing with the Company
during the Participant’s lifetime. In the absence of any such beneficiary designation, benefits
remaining unpaid or rights remaining unexercised at the Participant’s death shall be paid to or
exercised by the Participant’s spouse, executor, administrator, or legal representative, as
determined by the Committee, in its sole discretion.



Article 17. Rights of Participants




     17.1 Employment. Nothing in this Plan or an Award Agreement shall interfere with or limit in
any way the right of the Company, its Affiliates, and/or its Subsidiaries, to terminate any
Participant’s employment or service on the Board or to the Company at any time or for any reason
not prohibited by law, nor confer upon any Participant any right to continue his employment or
service as a Director or Third-Party Service Provider for any specified period of time.



     Neither an Award nor any benefits arising under this Plan shall constitute an employment
contract with the Company, its Affiliates, and/or its Subsidiaries and, accordingly, subject to
Articles 3 and 19, this Plan and the benefits hereunder may be terminated at any time in the sole
and exclusive discretion of the Committee without giving rise to any liability on the part of the
Company, its Affiliates, and/or its Subsidiaries.



25









 





     17.2 Participation. No individual shall have the right to be selected to receive an Award
under this Plan. In addition, the receipt of any Award shall not create a right to receive a
future Award.



     17.3 Rights as a Shareholder. Except as otherwise provided herein, a Participant shall have
none of the rights of a shareholder with respect to Shares covered by any Award until the
Participant becomes the registered holder of such Shares.



Article 18. Change in Control




     18.1 Change in Control of the Company. Upon the occurrence of a Change in Control while the
Participant is employed or in service with the Company, an Affiliate and/or any Subsidiary, unless
otherwise specifically prohibited under Applicable Laws, or by the rules and regulations of any
governing governmental agencies or national securities exchanges, or unless the Committee shall
determine otherwise in the Award Agreement:




	 	(a)	 	Any and all Options and SARs granted hereunder shall become immediately vested
and exercisable.
	 
	 	(b)	 	Any Period of Restriction for Restricted Stock and Restricted Stock Units
granted hereunder that have not previously vested shall end, and such Restricted Stock
and Restricted Stock Units shall become fully vested.
	 
	 	(c)	 	The target payout opportunities attainable under all outstanding Awards which
are subject to achievement of any of the Performance Measures specified in Article 13,
or any other performance conditions or restrictions that the Committee has made the
Award contingent upon, shall be deemed to have been earned as of the effective date of
the Change in Control, and such Awards treated as follows:






	 	(i)	 	The vesting of all such Awards denominated in Shares shall be
accelerated as of the effective date of the Change in Control, and there shall
be paid out to Participants a pro rata number of fully paid Shares based upon
an assumed achievement of all relevant targeted performance goals and upon the
length of time within the Performance Period, if any, that has elapsed prior to
the Change in Control. The Committee has the authority to pay all or any
portion of the value of the Shares in cash.
	 
	 	(ii)	 	All such Awards denominated in cash shall be paid pro rata to
Participants, with the proration determined as a function of the length of time
within the Performance Period, if any, that has elapsed prior to the Change in
Control, and based on an assumed achievement of all relevant targeted
performance goals.






	 	(d)	 	Subject to Article 19, herein, the Committee shall have the authority to make
any modifications to the Awards as determined by the Committee to be appropriate before
the effective date of the Change in Control.





     18.2 Treatment of Awards. In the event of a Change in Control where the Company ceases to
have publicly traded equity securities, after the consummation of the Change in Control, if no
replacement awards are issued in lieu of outstanding Awards under the Plan, then the Plan and all
outstanding Awards granted hereunder shall terminate, and the Company (or successor) shall pay
Participants an amount for their outstanding Awards determined using the Change-in-Control Price.
Participants with outstanding Options and SARs shall be given an opportunity to exercise all their
Options and SARs in connection with the consummation of the Change in Control and receive payment
for any acquired Shares using the Change-in-Control Price. In each case where payment is required
under this Section 18.2, such payment shall be made no later than ten (10) business days after the
consummation of such Change in Control.



     18.3 Employment or Other Agreement. Notwithstanding the foregoing, to the extent that an
employment or other agreement with the Company, Affiliate or Subsidiary provides benefits of
greater value upon a



26









 







Change in Control than those provided in this Article 18, the rights set forth in such other
agreement shall supercede the provisions of this Article 18. In addition, to the extent that
another employment or change in control agreement provides benefits with respect to Awards covered
by this Plan that are of lesser value than the benefits provided under a Award granted under the
Plan, the Award shall supersede such other employment or change in control agreement to such
extent.



Article 19. Amendment, Modification, Suspension, and Termination




     19.1 Amendment, Modification, Suspension, and Termination. Subject to Section 19.3, the
Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate this
Plan and any Award Agreement in whole or in part; provided, however, that, without the prior
approval of the Company’s shareholders and except as provided in Section 4.4, Options or SARs
issued under this Plan will not be repriced, replaced, or regranted through cancellation, or by
lowering the Option Price of a previously granted Option or the Grant Price of a previously granted
SAR, and no material amendment of this Plan shall be made without shareholder approval if
shareholder approval is required by Applicable Laws.



     19.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The
Committee may make adjustments in the terms and conditions of, and the criteria included in, Awards
in recognition of unusual or nonrecurring events (including, without limitation, the events
described in Section 4.4 hereof) affecting the Company or the financial statements of the Company
or of changes in Applicable Laws, regulations, or accounting principles, whenever the Committee
determines that such adjustments are appropriate in order to prevent unintended dilution or
enlargement of the benefits or potential benefits intended to be made available under this Plan.
The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and
binding on Participants under this Plan.



     19.3 Awards Previously Granted. Notwithstanding any other provision of this Plan to the
contrary (other than Section 19.4), no termination, amendment, suspension, or modification of this
Plan or an Award Agreement shall adversely affect in any material way any Award previously granted
under this Plan, without the written consent of the Participant holding such Award.



     19.4 Amendment to Conform to Law. Notwithstanding any other provision of this Plan to the
contrary, the Committee may amend the Plan or an Award Agreement, to take effect retroactively or
otherwise, as deemed necessary or advisable for the purpose of conforming the Plan or an Award
Agreement to any present or future law relating to plans of this or similar nature (including, but
not limited to, Code Section 409A), and to the administrative regulations and rulings promulgated
thereunder. By accepting an Award under this Plan, each Participant agrees to any amendment made
pursuant to this Section 19.4 to any Award granted under the Plan without further consideration or
action.



Article 20. Withholding




     20.1 General. The Company shall have the power and the right to deduct or withhold, or
require a Participant to remit to the Company, the amount necessary to satisfy federal, state, and
local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any
taxable event arising as a result of this Plan.



     20.2 Stock Settled Awards. Each Participant shall make such arrangements as the Committee may
require, within a reasonable time prior to the date on which any portion of an Award settled in
Shares is scheduled to vest, for the payment of all withholding tax obligations through either
(i) giving instructions to a broker for the sale on the open market of a sufficient number of
Shares to pay the withholding tax in a manner that satisfies all Applicable Laws, (ii) depositing
with the Company an amount of funds equal to the estimated withholding tax liability, or (iii) such
other method as the Committee in its discretion may approve, including a combination of (i) and
(ii). If a Participant fails to make such arrangements, or if by reason of any action or inaction
of the Participant the Company fails to receive a sufficient amount to satisfy the withholding tax
obligation, then, anything else contained in this Plan or any Award to the contrary
notwithstanding, the Shares that would otherwise have vested on such date shall be subject to
forfeiture, as determined by the Committee, regardless of the Participant’s status as an Employee,
Director or Third-Party Service Provider; provided, that the Committee, in its sole discretion, may
permit a Participant to cure any failure to provide funds to meeting the withholding tax obligation
(including any penalties or interest thereon), if the Committee determines that the failure was due
to factors beyond the Participant’s control.



27









 





Article 21. Successors




     All obligations of the Company under this Plan with respect to Awards granted hereunder shall
be binding on any successor to the Company, whether the existence of such successor is the result
of a direct or indirect purchase, amalgamation, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the Company.



Article 22. General Provisions




     22.1 Forfeiture Events.




	 	(a)	 	The Committee may specify in an Award Agreement that the Participant’s rights,
payments, and benefits with respect to an Award shall be subject to reduction,
cancellation, forfeiture (including repurchase of Shares for nominal consideration), 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, failure to remit the amounts necessary to satisfy
the Participant’s tax withholding obligations, termination of employment for Cause,
termination of the Participant’s provision of services to the Company, Affiliate,
and/or Subsidiary, violation of material Company, Affiliate, and/or Subsidiary
policies, breach of noncompetition, confidentiality, or other restrictive covenants
that may apply to the Participant, or other conduct by the Participant that is
detrimental to the business or reputation of the Company, its Affiliates, and/or its
Subsidiaries.
	 
	 	(b)	 	If the Company is required to prepare an accounting restatement due to the
material noncompliance of the Company, as a result of misconduct, with any financial
reporting requirement under the securities laws, if the Participant knowingly or
grossly negligently engaged in the misconduct, or knowingly or grossly negligently
failed to prevent the misconduct, or if the Participant is one of the individuals
subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002,
the Participant shall reimburse the Company the amount of any payment in settlement of
an Award earned or accrued during the twelve (12) month period following the first
public issuance or filing with the United States Securities and Exchange Commission
(whichever just occurred) of the financial document embodying such financial reporting
requirement.





     22.2 Right of Offset. The Company, any Subsidiary, or an Affiliate may, to the extent
permitted by applicable law, deduct from and set off against any amounts the Company, any
Subsidiary, or an Affiliate, as the case may be, may owe to the Participant from time to time,
including amounts payable in connection with any Award, owed as wages, fringe benefits, or other
compensation owed to the Participant, such amounts as may be owed by the Participant to the
Company, any Subsidiary, or an Affiliate, as the case may be, although the Participant shall remain
liable for any part of the Participant’s payment obligation not satisfied through such deduction
and setoff. By accepting any Award granted hereunder, the Participant agrees to any deduction or
setoff under this Section 22.2.



     22.3 Compliance with Code Section 162(m). The Company intends that the Awards granted to
Covered Employees shall satisfy the requirements of the Performance-Based Exception, unless
otherwise determined by the Committee when the Award is granted. Accordingly, the terms of this
Plan, including the definition of Covered Employee and other terms used therein, shall be
interpreted in a manner consistent with Code Section 162(m) and regulations thereunder.
Notwithstanding the foregoing, because the Committee cannot determine with certainty whether a
given Participant will be a Covered Employee with respect to a fiscal year that has not yet been
completed, the term Covered Employee as used herein shall mean only a person designated by the
Committee as likely to be a Covered Employee with respect to a fiscal year. If any provision of
the Plan or any Award Agreement designated as intended to satisfy the Performance-Based Exception
does not comply or is inconsistent with the requirements of Code Section 162(m) or regulations
thereunder, such provision shall be construed or deemed amended to the extent necessary to conform
to such requirements, and no provision shall be deemed to confer upon the Committee or any other
person sole discretion to increase the amount of compensation otherwise payable in connection with
such Award upon attainment of the applicable performance objectives. Payment of any amount that
the Company reasonably determines would not be deductible by reason of Code



28









 







Section 162(m) shall be deferred until the earlier of the earliest date on which the Company
reasonably determines that the deductibility of the payment will not be so limited, or the year
following the termination of employment.



     22.4 Legend. The certificates for Shares may include any legend which the Committee deems
appropriate to reflect any restrictions on transfer of such Shares.



     22.5 Gender and Number. Except where otherwise indicated by the context, any masculine term
used herein also shall include the feminine, the plural shall include the singular, and the
singular shall include the plural.



     22.6 Severability. In the event any provision of this Plan shall be held illegal or invalid
for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, and
this Plan shall be construed and enforced as if the illegal or invalid provision had not been
included.



     22.7 Requirements of Law. The granting of Awards and the issuance of Shares under this Plan
shall be subject to all Applicable Laws, and to such approvals by any governmental agencies or
stock exchange as may be required.



     22.8 Securities Law Compliance. With respect to Insiders, transactions under the Plan are
intended to comply with all applicable conditions of Rule 16b-3 or its successor under the Exchange
Act. To the extent any provision of the Plan or action by the Committee fails to so comply, it
shall be deemed null and void, to the extent permitted by law and deemed advisable by the
Committee.



     22.9 Delivery of Title. The Company shall have no obligation to issue or deliver evidence of
title for Shares issued under this 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 Shares under any
applicable national or foreign law or ruling of any governmental body that the Company
determines to be necessary or advisable.





     22.10 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 hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.



     22.11 Investment Representations. The Committee may require any individual receiving Shares
pursuant to an Award under this Plan to represent and warrant in writing that the individual is
acquiring the Shares for investment and without any present intention to sell or distribute such
Shares.



     22.12 Employees Based Outside of the United States. Notwithstanding any provision of this
Plan to the contrary, in order to comply with the laws in other countries in which the Company, its
Affiliates, and/or its Subsidiaries operate or have Employees, Directors, or Third-Party Service
Providers, the Committee, in its sole discretion, shall have the power and authority to:




	 	(a)	 	Determine which Affiliates and Subsidiaries shall be covered by this Plan;
	 
	 	(b)	 	Determine which Employees, Directors, and/or Third-Party Service Providers
outside the United States are eligible to participate in this Plan;
	 
	 	(c)	 	Modify the terms and conditions of any Award granted to Employees and/or
Third-Party Service Providers outside the United States to comply with applicable
foreign laws;




29









 






	 	(d)	 	Establish subplans and modify exercise procedures and other terms and
procedures, to the extent such actions may be necessary or advisable. Any subplans and
modifications to Plan terms and procedures established under this Section 22.12 by the
Committee shall be attached to this Plan document as appendices; and
	 
	 	(e)	 	Take any action, before or after an Award is made, that it deems advisable to
obtain approval 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 applicable law.



     22.13 Uncertificated Shares. To the extent that this Plan provides for issuance of
certificates to reflect the transfer of Shares, the transfer of such Shares may be effected on a
noncertificated basis, to the extent not prohibited by Applicable Laws.



     22.14 Unfunded Plan. Participants shall have no right, title, or interest whatsoever in or to
any investments that the Company, and/or its Subsidiaries, and/or its Affiliates may make to aid it
in meeting its obligations under this Plan. Nothing contained in this 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 Participant, beneficiary, legal representative,
or any other individual. To the extent that any individual acquires a right to receive payments
from the Company, its Subsidiaries, and/or its Affiliates under this Plan, such right shall be no
greater than the right of an unsecured general creditor of the Company, any Subsidiary, or an
Affiliate, as the case may be. All payments to be made hereunder shall be paid from the general
funds of the Company, any Subsidiary, or an Affiliate, as the case may be 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 this Plan.



     22.15 No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to
this Plan or any Award. The Committee shall determine whether cash, Awards, or other property
shall be issued or paid in lieu of fractional Shares or whether such fractional Shares or any
rights thereto shall be forfeited or otherwise eliminated.



     22.16 Retirement and Welfare Plans. Neither Awards made under this Plan nor Shares or cash
paid pursuant to such Awards may be included as “compensation” for purposes of computing the
benefits payable to any Participant under the Company’s, any Subsidiary’s, or an 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.



     22.17 Deferred Compensation. It is the Company’s intent that any Awards granted under this
Plan are structured to be exempt from Code Section 409A, or are structured to comply with the
requirements of deferred compensation subject to Code Section 409A. To the extent any Award under
this Plan constitutes deferred compensation (after taking into account the definition of
Resignation for Good Reason as provided in Section 2(tt), and any applicable exemptions from Code
Section 409A), and to the extent required by Code Section 409A, no payment will be made to a
Participant who is a “specified employee” (as defined by Code Section 409A) until the earlier of:
(i) the first day following the sixth month anniversary of the Participant’s “separation from
service,” as defined by Code Section 409A, or (ii) the Participant’s date of death; provided,
however, that any payments delayed during this six month period shall be paid in the aggregate as
soon as administratively practicable following the sixth month anniversary of the Participant’s
separation from service. For purposes of Code Section 409A, each “payment” (as defined by Code
Section 409A) made under this Plan shall be considered a “separate payment” for purposes of Code
Section 409A. Notwithstanding the Company’s intentions, if any Award granted under this Plan would
be considered deferred compensation as defined under Code Section 409A (after taking into account
any applicable exemptions), and if this Plan or the terms of an Award fail to meet the requirements
of Code Section 409A with respect to such Award, then such Award shall remain in effect and be
subject to taxation in accordance with Code Section 409A. The Company shall have no liability for
any tax imposed on a Participant by Code Section 409A, and if any tax is imposed on the
Participant, the Participant shall have no recourse against the Company for payment of any such
tax.



30









 





     22.18 Nonexclusivity of this Plan. The adoption of this Plan shall not be construed as
creating any limitations on the power of the Board or Committee to adopt such other compensation
arrangements as it may deem desirable for any Participant.



     22.19 No Constraint on Corporate Action. Nothing in this Plan shall be construed to: (a)
limit, impair, or otherwise affect the Company’s, any Subsidiary’s, or an Affiliate’s right or
power to make adjustments, reclassifications, reorganizations, or changes of its capital or
business structure, or to amalgamate, merge or consolidate, or dissolve, liquidate, sell, or
transfer all or any part of its business or assets; or (b) limit the right or power of the Company,
any Subsidiary, or an Affiliate to take any action which such entity deems to be necessary or
appropriate.



     22.20 Governing Law. The Plan and each Award Agreement shall be governed by the laws of the
state of New Jersey, excluding any conflicts or choice of law rule or principle that might
otherwise refer construction or interpretation of this Plan to the substantive law of another
jurisdiction. Unless otherwise provided in the Award Agreement, recipients of an Award under this
Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of
New Jersey, to resolve any and all issues that may arise out of or relate to this Plan or any
related Award Agreement.



     22.21 Indemnification. Subject to requirements of New Jersey law, each individual who is or
shall have been a member of the Board, or a Committee appointed by the Board, or an officer of the
Company to whom authority was delegated in accordance with Article 3, shall be indemnified and held
harmless by the Company against and from any loss, cost, liability, or expense that may be imposed
upon or reasonably incurred by him or her in connection with or resulting from any claim, action,
suit, or proceeding to which he or she may be a party or in which he or she may be involved by
reason of any action taken or failure to act under this Plan and against and from any and all
amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or
her in satisfaction of any judgement in any such action, suit, or proceeding against him or her,
provided he or she shall give the Company an opportunity, at its own expense, to handle and defend
the same before he or she undertakes to handle and defend it on his/her own behalf, unless such
loss, cost, liability, or expense is a result of his/her own willful misconduct or except as
expressly provided by statute.



     The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such individuals may be entitled under the Company’s Articles of
Association and its organizational regulations, as a matter of law, or otherwise, or any power that
the Company may have to indemnify them or hold them harmless.



	 	 	 	 	 
	 	FOSTER WHEELER AG

 	 
	 	By:  	/s/ Peter J. Ganz
 	 
	 	Name:	Peter J. Ganz 	 
	 	Title:	Executive Vice President, General 

Counsel & Secretary 	 
	 




31