Document:

Employment letter to Ajay Bansal

 Exhibit 10.9X 
 

 
 Ajay Bansal 
 Dear Ajay: 
 We are pleased
to offer you a position with Tercica, Inc., as its Chief Financial Officer and Senior Vice President of Finance, Corporate Development and Corporate Communications, reporting to me. If you decide to join us, you will receive an annual salary of
$300,000, less standard payroll deductions and all required withholdings. Your salary will be paid semi-monthly in accordance with our normal payroll procedures, and, as an employee, you will also be eligible to receive standard employee
benefits, including the benefits detailed in Exhibit A. 
 We currently anticipate that your annual bonus may be up to 35% of your
annual salary, at the Company’s discretion, dependent upon both Company and individual performance. 
 In addition, if you decide to
join us, you will receive a grant for an option to purchase 225,000 shares of common stock of Tercica. The option will have an exercise price equal to the closing price of the Company’s common stock on the NASDAQ market on your employment start
date (i.e., your first day of employment with us). During the term of your employment, 25% of the shares subject to the option will vest on the one-year anniversary of your start date, and the remaining shares will vest ratably over the next
thirty-six (36) months. All option grants will be subject to the terms and conditions of our stock option plan and form of stock option agreement. 
 We are pleased to offer you a sign-on bonus of $50,000, less standard payroll deductions and all required withholdings. You agree to return this bonus on a pro rata basis if you voluntarily resign or are terminated
for Cause within eighteen (18) months after your start date. If you leave the Company for any reason more than eighteen (18) months after the start date, you will not need to return any portion of this sign-on bonus. 
 In addition, if the Company terminates your employment without Cause (as defined in Exhibit B) and not within 12 months of a Change of Control (as
defined in Exhibit B), then, subject to your entering into and not revoking the Company’s standard form of release of claims in favor of the Company, you will receive a severance payment equal to one (1) year of your base salary in
effect at the time of termination. You will have ninety (90) days to exercise all those stock option shares that have vested as of the date of termination. 

 

 
 If the Company terminates your employment without Cause or you terminate your employment for Good Reason (as
defined in Exhibit B) in either case within 12 months of a Change of Control, then, subject to your entering into and not revoking the Company’s standard form of release of claims in favor of the Company, you will receive a severance
payment equal to one (1) year of your base salary in effect at the time of termination, and the accelerated vesting for 100% of all unvested stock option shares that have been granted to you prior to the time of termination; provided however,
if such termination for Good Reason within 12 months of a Change of Control occurs within six (6) months of your employment start date, then the accelerated vesting shall be for 50% of all unvested option shares that have been granted to you
prior to the time of termination. In either of the cases, you will have ninety (90) days to exercise the vested shares as of the date of termination. 
 We are excited about your joining Tercica and we look forward to a beneficial and productive relationship. Please note, however, that your employment with the Company constitutes at-will employment and is subject to
all the Terms and Conditions of Employment set forth in Exhibit C, including the provisions of the Company’s At-Will Employment, Confidential Information, Invention Assignment, and Arbitration Agreement (the “Agreement”), a
copy of which is attached to this letter as Annex 1. Please read both those documents carefully. A duplicate original of this letter, including Exhibit A, Exhibit B, Exhibit C and the Agreement attached as Annex 1,
is enclosed for your records. 
 This offer of employment is contingent upon demonstration of citizenship or resident alien status. If visa
is required, the granting of employment authorization through the USCIS must be received prior to your employment. The Company’s H1-B visa petition will be filed on your behalf, the costs of which will be paid by Tercica. Your first day of
employment will be within three (3) business days of receiving such USCIS approval. 
 To accept the Company’s offer, please
sign and date both this letter and the Agreement in the spaces provided and return both to the Company. This offer of employment will terminate if we do not receive your signatures to both this letter and the Agreement by Tuesday, February 28,
2006. If you accept our offer, your first day of employment will be no later than March 28, 2006, with an earlier start date if possible. You understand that, by signing this letter, you are also agreeing to the Terms and Conditions of
Employment set forth in Exhibit C. 
 This letter, including Exhibit A, Exhibit B, Exhibit C and the Agreement
attached as Annex 1, sets forth the entire terms of your employment with the Company and supersedes any prior representations or agreements, whether written or oral, and may not be modified or amended except by a written agreement signed by
you and approved by the Company’s Board of Directors. 

 

 
 We look forward to your favorable reply and to working with you at Tercica, Inc. 
  

	
	Sincerely,
	
	TERCICA, INC.
	
	 /s/ John A. Scarlett, M.D.

	John A. Scarlett, M.D.
	Chief Executive Officer

  

			
	Agreed to and accepted:
		
	Signature:	 	 /s/ Ajay Bansal

	Printed Name:	 	 Ajay Bansal

	
	Date: February 27, 2006

 Enclosures 
 Duplicate letter, with Exhibit A, Exhibit B, Exhibit C and Annex 1 

 

 
 Exhibit A 
 Benefits 
 Employee Benefits: You shall be entitled to all benefits, including medical, dental, vision,
life & disability and the Employee Stock Purchase Plan benefits, for which you are or may become eligible under the terms and conditions of the standard Company benefits plans that may be in effect from time to time and provided by the
Company to its employees generally. You shall be entitled to participate in the Company’s 401(k) plan, with no matching contribution. 
 Vacation
Accrual: You will be entitled to vacation at a rate of four (4) weeks per year. Vacation accrual shall be limited to five (5) weeks in the aggregate. 

 

 
 Exhibit B 
 Definitions 
 1. Definition of Cause for Termination. “Cause” for termination
means: (i) your conviction of any felony, (ii) your participation in any fraud or act of dishonesty against the Company resulting in material damage to the Company, (iii) your material breach of this offer letter or the At-Will
Employment, Confidential Information, Invention Assignment, and Arbitration Agreement between you and the Company, or (iv) other wrongful conduct by you that in the good faith and reasonable determination of the Company’s Board of
Directors demonstrates your gross unfitness to serve; provided, that in the case of any termination pursuant to the preceding clause (iii) or clause (iv), unless the Company’s Board of Directors determines that such conduct cannot
be cured within thirty (30) days, you will be given written notice of the occurrence of such ground for termination and a period of thirty (30) days in which to cure. 
 2. Definition of Resignation for Good Reason. “Good Reason” for resignation means the occurrence of any of the following events,
without your express written consent: (i) a significant reduction of your duties, position or responsibilities relative to your duties, position or responsibilities in effect immediately prior to such reduction, provided, however,
that a reduction in duties, position or responsibilities solely by virtue of the Company being acquired by and made part of a larger entity (as, for example, when, following a Change of Control, the Chief Financial Officer of the Company remains the
Chief Financial Officer of a division or subsidiary of the acquirer that contains the Company’s business) shall not constitute a “Good Reason,” (ii) a reduction by the Company of your base salary as in effect immediately prior to
such reduction (except as part of a base salary reduction generally applicable to executives), or (iii) a material reduction by the Company in the kind or level of employee benefits to which your are entitled immediately prior to such reduction
with the result that your overall benefits package is significantly reduced (except as part of a reduction generally applicable to executives); provided, that with respect to the preceding clauses (i) through (iii), the Company shall
have a period of thirty (30) days following receipt of written notice from you specifying the grounds for a purported voluntary termination for Good Reason to cure any event or failure that would otherwise constitute Good Reason. 
 3. Change of Control. “Change of Control” means the consummation of any of the following transactions: 
 (i) a business combination (such as a merger or consolidation) of the Company with any other corporation or other type of business entity (such as a
limited liability company), other than a business combination that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the surviving entity or its parent outstanding immediately after such business combination, or 

 

 
 (ii) the sale, lease, exchange or other transfer or disposition by the Company to a non-affiliate of all or
substantially all of the Company’s assets by value. 

 

 
 Exhibit C 
 Terms and Conditions of Employment 
 You should be aware that your employment with the Company is for
no specified period and constitutes at-will employment. As a result, you are free to resign at any time, for any reason or for no reason. Similarly, the Company is free to conclude its employment relationship with you at any time, with or without
cause, and with or without notice. We request that, in the event of resignation, you give the Company at least two weeks notice. In addition, the Company reserves the right to modify job titles, salaries and benefits from time to time as it deems
necessary. 
 As we’re sure you can understand, we need to reserve the right to conduct background investigations and/or reference
checks on all of our potential employees, and we must condition our offers of employment on clearance of such inquiries, if any. In this regard, for purposes of federal immigration law, you will be required to provide us with documentary evidence of
your identity and eligibility for employment in the United States. This documentation must be provided to us within three (3) business days of your date of hire, or we may have to terminate our employment relationship with you. 
 We also ask that, if you have not already done so, you disclose to us any and all agreements relating to your prior employment that may affect your
eligibility to be employed by Tercica. By signing this letter you represent to Tercica that no agreements prevent you from performing the duties of your position. 
 As a condition of your employment, you are required to sign and comply with the Company’s At-Will Employment, Confidential Information, Invention Assignment, and Arbitration Agreement (the
“Agreement”), a copy of which attached to this letter as Annex 1. The Agreement requires, among other provisions, the assignment to Tercica of patent rights to any inventions made during your employment with us, the
non-disclosure of Tercica proprietary information, and the arbitration of all disputes relating to our employment relationship under this letter or otherwise. Please read the Agreement carefully. Please note that we must receive your signed
Agreement before your first day of employment. 
 As a Company employee, you will be expected to abide by the Company’s rules and
standards. Specifically, you will be required to sign an acknowledgment that you have read and that you understand the Company’s rules of conduct that are included in the Company Handbook, which the Company will soon complete and distribute to
you. 
 In the event of any dispute or claim relating to or arising out of our employment relationship, whether under this letter, the
Agreement or otherwise, you and the Company agree that (i) any and all disputes between you and the Company shall be fully and finally resolved by binding arbitration, (ii) you are waiving any and all rights to a jury trial but all court
remedies will be available in arbitration, (iii) all disputes shall be 

 

 
 resolved by a neutral arbitrator who shall issue a written opinion, (iv) the arbitration shall provide for adequate
discovery, and (v) the Company shall pay all arbitration fees except that you shall pay the first $200.00 of any filing fees associated with any arbitration you initiate. 

 

 
 Annex 1 
 At-Will Employment, Confidential Information, Invention Assignment, and Arbitration Agreement 
 Attached.SUPERVALU INC. Long-Term Incentive Plan, as amended

 Exhibit 10.10 
 SUPERVALU INC. 
 LONG-TERM INCENTIVE PLAN, as amended 
  

	SECTION I.  	ESTABLISHMENT 

 On February 13, 2002, the Board
of Directors of SUPERVALU INC. (the “Company”), upon recommendation by the Executive Personnel and Compensation Committee (the “Committee”), approved an incentive plan for executives as described herein, which plan shall be known
as the “SUPERVALU INC. Long-Term Incentive Plan” (the “Plan”). The Plan shall be submitted for approval by the stockholders of the Company at the 2002 Annual Meeting of Stockholders. The Plan shall be effective as of
February 13, 2002, subject to its approval by the stockholders of the Company, and no shares shall be issued pursuant to the Plan until after the Plan has been approved by the stockholders of the Company. 
  

	SECTION II.  	PURPOSE 

 The purpose of the Plan is to advance the
interests of the Company and its stockholders by attracting and retaining key employees, and by stimulating the efforts of such employees to contribute to the continued success and progress of the business. The Plan is further intended to provide
such employees with an opportunity to increase their ownership of the Company’s common stock with the increased personal interest in the long-term success of the business that such stock ownership can produce. 
  

	SECTION III.  	ADMINISTRATION 

 3.1 Composition of the
Committee. The Plan shall be administered by the Committee, which shall consist of members appointed from time to time by the Board of Directors and shall be comprised of not less than such number of directors as shall be required to permit
Awards granted under the Plan to qualify under Rule 16b-3 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or any successor rule or regulation (“Rule
16b-3”). All members of the Committee shall be members of the Board of Directors of the Company who are “Non-Employee Directors” within the meaning of Rule 16b-3. To the extent required by Section 162(m) of the Internal Revenue
Code of 1986, as amended (such statute, as it may be amended from time to time and all proposed, temporary or final Treasury Regulations promulgated thereunder shall be referred to as the “Code”), the Committee administering the Plan shall
be composed solely of “outside directors” within the meaning of Section 162(m) of the Code. 
 3.2 Power and Authority of
the Committee. The Committee shall have full power and authority, subject to all the applicable provisions of the Plan and applicable law, to (a) establish, amend, suspend or waive such rules and regulations and appoint such agents as it
deems necessary or advisable for the proper administration of the Plan, (b) construe, interpret and administer the Plan and any instrument or agreement relating to, or Award (as defined below in Section 4.2) made under, the Plan, and
(c) make all other determinations and take all other 

  

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actions necessary or advisable for the administration of the Plan. Unless otherwise expressly provided in the Plan, each determination made and each action
taken by the Committee pursuant to the Plan or any instrument or agreement relating to, or Award made under, the Plan shall be (x) within the sole discretion of the Committee, (y) may be made at any time and (z) shall be final,
binding and conclusive for all purposes on all persons, including, but not limited to, holders of Awards, and their legal representatives and beneficiaries, and employees of the Company or of any “Affiliate” of the Company. For purposes of
the Plan and any instrument or agreement relating to, or Award made under, the Plan, the term “Affiliate” shall mean any entity that, directly or indirectly through one or more intermediaries, is controlled by the Company and any entity in
which the Company has a significant equity interest, in each case as determined by the Committee in its sole discretion. 
 3.3
Delegation. The Committee may delegate its powers and duties under the Plan to one or more officers of the Company or any Affiliate or a committee of such officers, subject to such terms, conditions and limitations as the Committee may
establish in its sole discretion; provided, however, that the Committee shall not delegate its power (i) to amend the Plan as provided in Section XI hereof (ii) with respect to any Performance Based Awards pursuant to Section 6.7 of
the Plan, (iii) to make determinations regarding officers or directors of the Company or any Affiliate who are subject to Section 16 of the Exchange Act, and (iv) in such a manner as would contravene Section 157 of the Delaware
General Corporation Law. 
  

	SECTION IV.  	ELIGIBILITY AND PARTICIPATION 

 4.1
Eligibility. The Plan is unfunded and is maintained by the Company for a select group of management or highly compensated employees. In order to be eligible to participate in the Plan, an employee of the Company or of its Affiliates must be
selected by the Committee. In determining the employees who will participate in the Plan, the Committee may take into account the nature of the services rendered by the respective employees, their present and potential contributions to the success
of the Company and such other factors as the Committee, in its sole discretion, shall deem relevant. A director of the Company or of an Affiliate who is not also an employee of the Company or an Affiliate shall not be eligible to participate in the
Plan. 
 4.2 Participation. The Committee shall determine the employees to be granted an award opportunity (the “Award”),
the amount of each Award, the time or times when Awards will be made, the period of time over which such Awards are intended to be earned, and all other terms and conditions of each Award. The provisions of the Awards need not be the same with
respect to any recipient of an Award (the “Participant”) or with respect to different Participants. The Committee’s decision to approve an Award to an employee in any year shall not require the Committee to approve a similar Award or
any Award at all to that employee or any other employee or person at any future date. The Company and the Committee shall not have any obligation for uniformity of treatment of any person, including, but not limited to, Participants and their legal
representatives and beneficiaries and employees of the Company or of any Affiliate of the Company. 
 4.3 Award Agreement. Any
employee selected for participation by the Committee shall, as a condition of participation, execute and return to the Committee a written agreement 

  

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setting forth the terms and conditions of the Award (the “Award Agreement”). A separate Award Agreement will be entered into between the Company
and each Participant for each Award. 
 4.4 Employment. In the absence of any specific agreement to the contrary, no Award to a
Participant under the Plan shall affect any right of the Company, or of any Affiliate of the Company, to terminate, with or without cause, the Participant’s employment at any time. 
  

	SECTION V.  	SHARES SUBJECT TO THE PLAN 

 5.1 Shares Subject
to Plan. Subject to adjustment as provided in Section 5.3 hereof, the maximum number of shares or units equivalent to shares with respect to which Awards may be granted under the Plan shall not exceed in the aggregate 800,000 shares (the
“Shares”) of the Company’s common stock, par value $1.00 per Share (the “Common Stock”). The payment of cash dividends or dividend equivalents in conjunction with an Award shall not be counted against the Shares available
for grant. Shares to be issued pursuant to the Plan shall be made available from treasury, from authorized but unissued shares of Common Stock, or from shares reacquired by the Company, including shares purchased in the open market. For purposes of
this Section V, the maximum number of Shares to which an Award relates shall be counted on the date such Award was made against the aggregate number of Shares available for grant under the Plan. 
 5.2 Reacquired Shares. If any Shares to which an Award relates are forfeited, or if an Award is otherwise canceled or terminated or expires
without delivery of the maximum number of Shares (or cash for the maximum number of Shares) to which such Award relates, then the number of Shares with respect to such Award, to the extent of any such forfeiture, cancellation, termination or
expiration, shall again be available for grant under the Plan. 
 5.3 Adjustments Upon Changes In Capitalization. In the event that
the Committee shall determine that any dividend or other distribution (whether in the form of cash, Common Stock, other securities or other property), stock split, reverse stock split, reorganization, recapitalization, merger, consolidation,
combination, split-up, spin-off, repurchase or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other securities of the Company, or other similar corporate transaction or
event affects the Common Stock such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the
Committee may make such adjustments, if any, as it may deem appropriate in the aggregate number of and class of Shares (or other securities or other property) issuable pursuant to Section 5.1 and pursuant to any outstanding Award under the
Plan. The Committee’s determination of such adjustments shall be final, binding and conclusive. 
  

	SECTION VI.  	AWARDS 

 6.1 General. The Committee shall
determine the Award or Awards to be made to each Participant, and each Award shall be subject to the terms and conditions of the Plan and the applicable Award Agreement. An Award may be made in the form of Shares or in the form of units equivalent
to Shares (the “Stock Units”). Awards may be granted singly or in 

  

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combination, or in addition to, in tandem with or in substitution for any grants or rights under any employee or compensation plan of the Company or of any
Affiliate. All or part of an Award may be subject to conditions and forfeiture provisions established by the Committee, and set forth in the Award Agreement, which may include, but are not limited to, continuous service with the Company or an
Affiliate, achievement of specific business objectives, and other measurement of individual, business unit or Company performance. 
 6.2
Award of Shares. If an Award is granted in the form of Shares, such Award shall, at the option of the Company, be evidenced by book entry Shares held in the Participant’s name on the records of the Company’s transfer agent or by the
issuance of a stock certificate or certificates, which certificate or certificates shall be held by the Company. Such book entry Shares or certificate or certificates shall be registered in the name of the Participant and shall bear an appropriate
legend referring to the terms, conditions and restrictions applicable to such Award to indicate restriction on transferability (“Restricted Stock”) until the Participant has met designated performance and/or length of employment
requirements, if any, and the determination of the number of Shares, if any, that are to be forfeited pursuant to the terms of the Award is made. Until such time as all restrictions are removed, Restricted Stock shall not be transferable.

 6.3 Award of Stock Units. If an Award is granted in the form of Stock Units, no certificates shall be issued with respect to such
Stock Units, but the Company shall maintain a bookkeeping account in the name of the Participant to which the Stock Units shall relate. Each Stock Unit shall represent the right to receive a payment of one Share, or cash of equivalent value to the
“fair market value” of the Company’s Common Stock at the time payment is made, or a continuing Stock Unit, or other Awards, or a combination thereof, with such restrictions and conditions as the Committee may determine in its sole
discretion, including, but not limited to, the restriction of such Shares as Restricted Stock. For purposes of the Plan, “fair market value” shall be determined by such methods or procedures as may be established from time to time by the
Committee in its sole discretion. 
 6.4 Voting Rights, Dividends and Dividend Equivalents. The Committee, in its sole discretion, may
provide that Awards of Shares may contain voting rights and may earn dividends and that any Award may earn dividend equivalents. Such dividends or dividend equivalents may be paid currently or may be credited to an account established by the
Committee under the Plan in the name of the Participant. Any crediting of dividend or dividend equivalents may be subject to such restrictions and conditions as the Committee may establish in its sole discretion, including reinvestment in additional
Shares or Share equivalents. 
 6.5 Payment of Awards. Payment of Awards may be made at such times, with such restrictions and
conditions, and in such forms (cash, stock, including Restricted Stock, Stock Units, other Awards, or combinations thereof) as the Committee in its sole discretion may determine at the time of grant of the Awards. 
 6.6 Securities Matters. No Shares shall be issued under the Plan prior to such time as counsel to the Company shall have determined that the
issuance and delivery of such Shares will not violate any federal or state securities or other laws. Participants may be required by the Company, as a condition to the grant of an Award or the issuance of Shares under the Plan, to agree in writing
that all Shares to be acquired pursuant to the Plan shall be held for his 

  

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or her own account without a view to any further distribution thereof, that the certificates for the Shares shall bear an appropriate legend to that effect,
and that such Shares will not be transferred or disposed of except in compliance with applicable federal and state laws. The Company may, in its sole discretion, defer the effectiveness of any Award or the payment of any Award under the Plan in
order to allow the issuance of Shares pursuant thereto to be made pursuant to registration or an exemption from registration or other methods for compliance available under federal or state securities laws. The Company shall be under no obligation
to effect the registration pursuant to the Securities Act of 1933, as amended, of any Shares to be issued under the Plan or to effect similar compliance under any state law. If Shares are traded on a securities exchange, the Company shall not be
required to deliver to the Participant certificates representing any Shares unless and until such Shares have been admitted for trading on such securities exchange. 
 6.7 Qualified Performance-Based Compensation. From time to time, the Committee may designate an Award granted pursuant to the Plan as an award of “qualified performance-based compensation” within the
meaning of Section 162(m) of the Code (hereinafter referred to as a “Performance-Based Award(s)”). Notwithstanding any other provision of the Plan to the contrary, the following additional requirements shall apply to all
Performance-Based Awards made to any Participant under the Plan: 
 (a) Any Performance Based Award shall be null and void and have no effect
whatsoever unless the Plan shall be approved by the stockholders of the Company at the 2002 annual meeting of stockholders. 
 (b) For
purposes of Section 162(m) of the Code, the only employees eligible to receive Performance-Based Awards shall be the employee’s identified in Section 4.1 hereof. 
 (c) The right to obtain Restricted Stock or the right to have a Stock Unit become payable in any fashion pursuant to a Performance-Based Award shall be
determined solely on account of the attainment of one or more preestablished, objective performance goals for a performance period selected by the Committee at the time of the grant of the Performance-Based Award. Such goals shall be based solely on
one or more of the following business criteria, which may apply to the individual in question, an identifiable business unit or the Company as a whole: stock price, market share, sales, earnings per share, return ratios, cumulative total return to
shareholders, consolidated pre-tax earnings, net revenues, net earnings, operating income, earnings before interest and taxes, and cash flow, for the applicable performance period based on absolute Company or business unit performance and/or
performance as compared to a pre-selected peer group of companies or external financial index and subject to such other special rules and conditions as the Committee may establish at any time ending on or before the 90th day of the applicable
performance period. The foregoing shall constitute the sole business criteria upon which the performance goals under this Plan shall be based. 
 (d) The maximum number of Shares, whether or not in the form of Restricted Stock, which may be issued to any Participant pursuant to any Performance-Based Award in any calendar year period beginning with the period commencing
January 1, 2002, shall not exceed 100,000 shares (subject to adjustment as provided for in Section 5.3). 
  

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 (e) Not later than 90 days after the beginning of each performance period selected by the Committee for a
Performance-Based Award, the Committee shall: 
  

	 	(i)	designate all Participants for such performance period; and 

  

	 	(ii)	establish the objective performance factors for each Participant for that performance period on the basis of one or more of the business criteria set forth herein.

 (f) Following the close of each performance period and prior to payment of any amount to any Participant under a
Performance-Based Award, the Committee must certify in writing as to the attainment of all factors (including the performance factors for a Participant) upon which any payments to a Participant for that performance period are to be based.

 (g) Each of the foregoing provisions and all of the other terms and conditions of the Plan as it applies to any Performance-Based Award
shall be interpreted in such a fashion so as to qualify all compensation paid thereunder as “qualified performance-based compensation” within the meaning of Section 162(m) of the Code. 
  

	SECTION VII.  	TERMINATION OF EMPLOYMENT 

 Each Award Agreement
shall include provisions governing the disposition of an Award in the event of the retirement, disability, death or other termination of a Participant’s employment with the Company or an Affiliate. 
  

	SECTION VIII.  	CHANGE IN CONTROL 

 Notwithstanding any other
provision in the Plan to the contrary, at the time of the grant of an Award, the Committee may determine to include provisions in such Award providing that upon the occurrence of a “Change in Control,” (i) all outstanding Awards
(including Restricted Stock and Stock Units) shall immediately become fully vested (which, in the case of any Award which is subject to the achievement of designated performance objectives during a designated performance period, shall mean vested as
if all such performance objectives had been achieved at the 100% award level at the end of such performance period) and (ii) all restrictions, conditions and limitations on all Awards (including Restricted Stock and Stock Units) which are
outstanding at the time of such “Change in Control” or become outstanding by virtue of the operation of clause (i) hereof shall immediately lapse, provided that the provisions of clauses (i) and (ii) may be subject to such
restrictions, conditions and limitations as the Committee may determine at the time of grant of the Award as set forth in the Award Agreement relating thereto. 
 For purposes of the Plan, “Change in Control” shall mean any of the following events: 
 1. The
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) of beneficial ownership (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either (A) the then outstanding shares of common stock of the Company 

  

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or (B) the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors;
provided, however, that for purposes of this subsection 1, the following acquisitions shall not constitute a Change in Control; (A) any acquisition directly from the Company or (B) any acquisition by any employee benefit plan (or related
trust) sponsored or maintained by the Company or any corporation controlled by the Company; or 
 2. The consummation of any merger or other
business combination of the Company, sale or lease of all or substantially all of the Company’s assets or combination of the foregoing transactions (the “Transactions”) other than a Transaction immediately following which the
shareholders of the Company and any trustee or fiduciary of any Company employee benefit plan immediately prior to the Transaction own at least 60% of the voting power, directly or indirectly, of (A) the surviving corporation in any such merger
or other business combination; (B) the purchaser or lessee of the Company’s assets; or (C) both the surviving corporation and the purchaser or lessee in the event of any combination of Transactions; or 
 3. Within any 24 month period, the persons who were directors immediately before the beginning of such period (the “Incumbent Directors”) shall
cease (for any reason other than death) to constitute at least a majority of the Board of Directors of the Company or the board of directors of a successor to the Company. For this purpose, any director who was not a director at the beginning of
such period shall be deemed to be an Incumbent Director if such director was elected to the Board of Directors of the Company by, or on the recommendation of or with the approval of, at least three-fourths of the directors who then qualified as
Incumbent Directors (so long as such director was not nominated by a person who has expressed an intent to effect a Change in Control or engage in a proxy or other control contest); or 
 4. Such other event or transaction as the Board of Directors of the Company shall determine constitutes a Change in Control. 
  

	SECTION IX.  	NON-TRANSFERABILITY 

 Except as otherwise determined
by the Committee or set forth in the applicable Award Agreement, no Restricted Stock or Stock Unit, and no right under such Restricted Stock or Stock Unit, shall be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of during
the time in which the requirement of continued employment or attainment of performance objectives has not been achieved. Each right under any Award shall be exercisable during the Participant’s lifetime only by the Participant or, if
permissible under applicable law, by the Participant’s legal representatives. 
  

	SECTION X.  	TAXES 

 In order to comply with all applicable
federal or state income, social security, payroll, withholding or other tax laws or regulations, the Company may take such action, and may require a Participant to take such action, as it deems appropriate to ensure that all applicable federal or
state income, social security, payroll, withholding or other taxes, which are the sole and absolute responsibility of the Participant, are withheld or collected from such Participant. In order to assist a Participant in paying all or part of the
federal and state taxes to be withheld or collected upon receipt or payment of (or the lapse of restrictions relating to) an Award, the 

  

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Committee, in its sole discretion and subject to such additional terms and conditions as it may adopt, may permit the Participant to satisfy such tax
obligation by (a) electing to have the Company withhold a portion of the shares of Common Stock otherwise to be delivered upon receipt or payment of (or the lapse of restrictions relating to) such Award with a fair market value equal to the
amount of such taxes or (b) delivering to the Company shares of Common Stock other than the shares issuable upon receipt or payment of (or the lapse of restrictions relating to) such Award with a fair market value equal to the amount of such
taxes. 
  

	SECTION XI.  	AMENDMENT AND TERMINATION 

 11.1 Term of
Plan. Unless the Plan shall have been discontinued or terminated as provided in Section 11.2 hereof, the Plan shall terminate on the last day of the Company’s fiscal year ending in 2008. No Awards may be granted after such termination,
but termination of the Plan shall not alter or impair any rights or obligations under any Award theretofore granted, without the consent of the Participant or holder or beneficiary thereof, except as otherwise provided in the Plan or the Award
Agreement. 
 11.2 Amendments to Plan. Except to the extent prohibited by applicable law and unless otherwise expressly provided in
the Plan, the Committee may amend, alter, suspend, discontinue or terminate the Plan; provided, however, that notwithstanding any other provision of the Plan or any Award Agreement, without the approval of the stockholders of the Company, no such
amendment, alteration, suspension, discontinuation or termination shall be made that, absent such approval: 
 (a) would cause
Performance-Based Awards not to qualify as “qualified performance-based compensation” within the meaning of Section 162(m) of the Code; or 
 (b) would violate the rules or regulations of any securities exchange that are applicable to the Company. 
 11.3 Amendments to Awards. Except to the extent prohibited by applicable law and unless otherwise expressly provided in the Plan or an Award Agreement, the Committee may waive any condition of, or rights of the Company under, any
outstanding Award, prospectively or retroactively. The Committee may not amend, alter, suspend, discontinue or terminate any outstanding Award, prospectively or retroactively, in any manner that adversely affects any Award, without the consent of
the Participant or holder or beneficiary thereof, except as otherwise provided in the Plan or the Award Agreement. 
 11.4 Correction of
Defects, Omissions and Inconsistencies. Except to the extent prohibited by applicable law and unless otherwise expressly provided in the Plan or an Award Agreement, the Committee may correct any defect, supply any omission or reconcile any
inconsistency in the Plan, any Award or any Award Agreement in the manner and to the extent it shall deem desirable to carry the Plan into effect. 
  

 8 

	SECTION XII.  	MISCELLANEOUS 

 12.1 Governing Law. The Plan
and any Award Agreement shall be governed by and construed in accordance with the internal laws, and not the laws of conflicts, of the State of Delaware. 
 12.2 Severability. If any provision of the Plan, any Award or any Award Agreement is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or would disqualify the Plan, any Award
or any Award Agreement under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the
Committee, materially altering the purpose or intent of the Plan, the Award or the Award Agreement, such provision shall be stricken as to such jurisdiction, and the remainder of the Plan, any such Award or any such Award Agreement shall remain in
full force and effect. 
 12.3 No Trust or Fund Created. Neither the Plan nor any Award or Award Agreement shall create or be
construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company or any Affiliate and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Company or
any Affiliate pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company or of any Affiliate. 
 12.4 Headings. Headings are given to the sections and subsections of the Plan solely as a convenience to facilitate reference. Such headings shall not be deemed in any way material or relevant to the
construction or interpretation of the Plan or any provision thereof. 
 Adopted April 30, 2002 
  

 9

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