Document:

Amended & Restated Employment Agreement

 

Exhibit 10.6

AMENDED & RESTATED EMPLOYMENT AGREEMENT

     The parties to this Amended and Restated Employment Agreement (this “Agreement”), dated as of
March 14, 2005, are Artesyn Technologies, Inc., a Florida corporation (the “Company”), and Richard
J. Thompson (the “Executive”). The Company and the Executive currently are parties to an
Employment Agreement dated January 1, 2000 (the “Existing Employment Agreement”). The Executive is
presently the Vice President and Chief Financial Officer of the Company and the parties wish to
provide for the continued employment of the Executive in such positions, from and after the date of
this Agreement (the “Effective Date”), subject to the terms provided herein. The parties intend
that the Existing Employment Agreement be updated by this Agreement to reflect the current
employment terms and compensation arrangements between the Company and the Executive that have been
adopted and approved by the Company’s Board of Directors (the “Board) (or, as applicable, the
Compensation and Stock Option Committee of the Board (the “Compensation Committee”)), consistent
with the Existing Employment Agreement and the Company’s practices and policies.

     Accordingly, the parties, intending to be legally bound, agree that the Existing Employment
Agreement is amended and restated in its entirety as follows:

     1. Employment.

     1. 1 General. The Company hereby employs the Executive in the positions and
capacities of Vice President and Chief Financial Officer, and the Executive hereby accepts such
employment, subject to the terms and conditions herein contained. In such capacities, the
Executive agrees faithfully to perform (i) all duties delineated in the By-laws of the Company
relating to his positions as Vice President and Chief Financial Officer, (ii) such duties and
responsibilities as are customary for an executive with similar titles and positions at similar
publicly-traded companies and (iii) such additional duties (consistent with his positions as Vice
President and Chief Financial Officer) as may reasonably be assigned to the Executive from time to
time.

     1.2 Full-Time Position. The Executive hereby agrees that, during the Employment Term
he shall devote all of his business time, attention and skills to the business and affairs of the
Company and its subsidiaries, except during vacation time as provided by Section 3.4 hereof and any
periods of illness. The Executive agrees that, during the Employment Term, he will not seek
employment with another entity. Subject to the foregoing, nothing in this Agreement shall restrict
the Executive from (i) managing his personal investments, personal business affairs and other
personal matters, (ii) serving on the boards of directors of companies that do not compete directly
or indirectly with the Company, (iii) serving on civic or charitable boards or committees or (iv)
delivering lectures, fulfilling speaking engagements or teaching at educational institutions;
provided that none of such activities, either singly or in the aggregate, interfere with
the performance of his duties under this Agreement. The Executive must receive approval of the
Chief the Executive Officer and the Board prior to assuming any directorships.

 

 

     2. Compensation.

     2.1 Salary. Subject to the terms and conditions herein contained, during the
Employment Term, the Company shall pay to the Executive, and the Executive shall accept, for all
services to be rendered by him pursuant to this Agreement (including, but not limited to, any
services that may be rendered by him to any subsidiary of the Company and any services that may be
rendered by him as a member of the Board or the board of any such subsidiary or any committee(s)
thereof) a base salary of $300,000 per annum, and subject to increases, if any, as may be approved
from time to time by the Board or the Compensation Committee in its discretion (such amount,
together with any applicable increases, shall be referred to herein as the “Base Salary”). The
Executive’s Base Salary shall be payable in such installments as are in effect from time to time in
accordance with the regular payroll practices of the Company.

     2.2 Incentive Payment. In addition to his Base Salary, the Executive shall be
entitled to receive an incentive payment in respect of each calendar year during the Employment
Term (an “Incentive Payment”) as such may be awarded pursuant to, and in accordance with, the terms
of the Company’s the Executive Incentive Plan, as then in effect. For purposes of this Agreement,
a payment of one hundred thirty percent (130%) of the Base Salary, or such higher percentage as may
be approved from time to time by the Board or the Compensation Committee in its discretion, is
hereinafter referred to as the “Maximum Incentive Payment.”

     2.3 Equity Compensation. The Company agrees that the Executive shall, at the sole
discretion of the Compensation Committee, be eligible for an annual grant of stock options or other
award of equity compensation under the terms of any stock incentive plan maintained by the Company,
as then in effect.

     3. Additional Benefits.

     3.1 Expenses. The Company shall reimburse the Executive (upon the submission by him of
reasonably itemized accounts therefor), or advance to the Executive, where appropriate, an amount
for such costs and expenses as the Executive shall reasonably incur (including, among other things,
business travel and business entertainment expenses) in connection with the performance by him of
his duties hereunder in accordance with the Company’s policy with respect thereto as in effect from
time to time during the Employment Term. In addition, the Executive shall be entitled to, and the
Company shall provide, reimbursement of amounts paid by him for the annual planning and preparation
of his tax returns in an amount reasonable and customary for executives of similar status.

     3.2 General Fringe Benefits. The Executive shall be entitled to, and the Company
shall provide, such fringe benefits of the Company, including, but not limited to, participation in
employee health and benefit plans and the Company’s purchase of health and/or disability insurance,
which the Company may from time to time generally offer its senior executive officers during the
Employment Term and for which the Executive is eligible. In addition, the Executive shall be
entitled to, and the Company shall provide, an annual executive physical exam and participation in
the medical executive reimbursement plan (MERP), on a basis

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consistent with the terms, conditions and administration of such plan, and a non-accountable
pre-tax car allowance of $900 per month, subject to increases, if any, as may be approved from time
to time by the Board or the Compensation Committee in its discretion.

     3.3 Employee-Managed Time Off. The Executive shall be entitled to twenty-eight (28)
days of employee-managed time off annually during the Employment Term. The Executive shall provide
the Chief the Executive Officer of the Company with reasonable prior notice of his planned
vacation(s). To the extent under the Company’s Employee-Managed Time Off Plan the Executive has
accrued carry-over hours, the Executive shall be entitled to such accrual, or the economic
equivalent paid in a lump sum upon his termination for any reason, in an amount not to exceed 500
hours.

     3.4 Other Benefits. Nothing in this Agreement shall prevent the Company from, or
obligate the Company to, increase compensation (including without limitation any Base Salary or
Incentive Payment), any other payments or any other benefits to the Executive, or from deciding to
provide the Executive with any benefits in addition to those provided for herein. Subject to the
foregoing, the Compensation Committee, at the recommendation of the Chief the Executive Officer,
will review the Executive’s compensation annually.

     4. Term of Employment. The Executive’s employment hereunder shall commence on the
Effective Date and shall continue through December 31, 2005; provided, however,
that commencing on December 31, 2005 and on each December 31 thereafter (each, a “Renewal Date”),
the term of the Executive’s employment hereunder shall automatically be extended for one (1)
additional year unless, not later than 60 days prior to a Renewal Date, the Executive or the
Company shall have given written notice to the other that he or it does not wish to extend this
Agreement. The Executive’s employment under this Agreement shall be subject to earlier termination
under Section 5.

     The period of such employment is herein referred to as the “Employment Term”. The scheduled
expiration of the Employment Term shall not be deemed to be a termination of the Employment Term
hereunder, except as provided in Section 5.6.5 hereof.

     5. Termination.

     5.1 Death. The Employment Term shall terminate automatically in the event of the
Executive’s death during the Employment Term and upon such termination, the obligations, duties and
liabilities of the Company to the Executive shall solely be as set forth in Section 5.6.1 hereof.

     5.2 Disability. In the event of the Executive’s failure to perform his duties by
reason of his becoming Disabled (as defined herein) during the Employment Term, the Company shall
have the option to terminate the Employment Term, by giving written notice of such termination to
the Executive, which notice shall specify the effective date of termination. Upon such
termination, the Executive shall have no further duties hereunder (except as set forth in Section 7
hereof) and the obligations, duties and liabilities of the Company to the Executive shall solely be
as set forth in Section 5.6.1 hereof. For purposes of this Agreement, the term “Disabled” shall
mean the inability of the Executive, for medical reason(s) certified by a physician selected by the

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Company and reasonably satisfactory to the Executive, to substantially perform his duties hereunder
for an aggregate of at least 180 days during any period of 365 consecutive days.

     5.3 By the Company for Cause. The Company may, at its option, terminate the
Employment Term, for any of the following reasons (each a “Cause”), upon five (5) business days’
prior written notice to the Executive that a meeting of the Board will be held to consider such
action, at which meeting the Executive and his counsel shall be afforded an opportunity to be heard
(a “Hearing”). Upon such termination, the Executive shall have no further duties hereunder (except
as set forth in Section 7 hereof) and the obligations, duties and liabilities of the Company to the
Executive shall solely be as set forth in Section 5.6.2 hereof:

     5.3.1 Violation of Law. If the Executive is convicted of a felony under Federal or
state law, the Board may terminate the Employment Term by written notice to the Executive, which
termination shall be effective, if not rescinded, immediately after the date of the Hearing.

     5.3.2 Failure to Perform. If, without the prior express written consent of the Board,
the Executive fails to perform, in any material respect, any of his duties or obligations under
Sections 1.1, 1.2, 1.3, 7.2, 7.3 or 7.4 hereof (other than as a result of being Disabled as to
which Section 5.2 hereof could apply), and if such failure continues for more than thirty (30) days
after a Hearing is held in respect thereof, then the Board may terminate the Employment Term
immediately after said thirty (30) day period; provided, however, that if such
failure is incapable of being cured, in the good faith determination of the Board, the Employment
Term shall terminate immediately after the date of the Hearing.

     The parties hereto acknowledge and agree that matters of the business judgment of the
Executive or the economic performance of the Company or any segment thereof shall not be factors in
determining Cause, except to the extent that they involve gross negligence or willful misconduct.

     5.3.3 Other Actions. If, without the prior express written consent of the Board, the
Executive takes actions or omits to take actions in connection with his duties and/or
responsibilities hereunder that constitute willful misconduct or gross negligence and such actions
or omissions adversely affect the business, reputation, or financial or other condition of the
Company, the Board may terminate the Employment Term by written notice to the Executive, which
termination shall be effective immediately after the date of the Hearing.

     The parties hereto acknowledge and agree that matters of the business judgment of the
Executive or the economic performance of the Company or any segment thereof shall not be factors in
determining Cause, except to the extent that they involve gross negligence or willful misconduct.

     5.4 By the Company Without Cause. In addition (and without prejudice) to its right to
terminate the Employment Term under the provisions of Section 5.3 hereof, the Company may, at its
option, terminate the Employment Term for any reason whatsoever by giving written notice of
termination to the Executive from the Board, specifying the, date of termination. Upon such
termination, the Executive shall have no further duties hereunder (except as set forth in

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Section 7 hereof) and the obligations, duties and liabilities of the Company to the Executive shall
solely be as set forth in Section 5.6.3 hereof.

     5.5 By the Executive For “Substantial Breach.” As used herein, “Substantial Breach”
shall mean the Company’s material breach of this Agreement, including but not limited to, without
the Executive’s consent, the assignment to the Executive of positions or duties materially
inconsistent with the provisions of this Agreement, a material diminution of the Executive’s
position, authority, responsibilities or benefits to which he is then entitled hereunder or any
reduction of the compensation provided for in Section 2.1 and 2.2 hereof, the relocation of
corporate headquarters further than a fifty mile radius from the present headquarters, or the
Company’s common stock no longer being publicly traded under The Nasdaq Stock Market or a national
stock exchange. In the event that the Executive wishes to terminate the Employment Term due to a
Substantial Breach by the Company, the Executive shall send a written notice to the Company
notifying the Company of the breach within one hundred twenty (120) days of such breach. If such
breach is not corrected within thirty (30) days after receipt of such notice, then the Executive
may, in his sole discretion, elect to terminate the Employment Term by giving written notice of
such election to the Company, and upon receipt by the Company of such an election, the Employment
Term shall terminate. Upon such termination, the Executive shall have no further duties hereunder
(except as set forth in Section 7 hereof) and the obligations, duties and liabilities of the
Company to the Executive shall solely be as set forth in section 5.6.3 hereof.

     5.6 Payments Upon Termination. In the event that the Employment Term is terminated
hereunder, the Company shall pay to the Executive the following amounts and any amounts due under
Section 3.3 hereof, and the Company shall thereupon have no liability or other obligation of any
kind or character under or in connection with this Agreement (the effective date of any such
termination is hereinafter referred to as the “Termination Date”):

     5.6.1 Death or Disability. In the event that the Employment Term is terminated
pursuant to Section 5.1 or Section 5.2 hereof, the Company shall pay to the Executive or to the
Executive’s executor, administrator, beneficiary or personal representative (the “Representative”),
as the case may be, the following:

     (i) the Base Salary due and owing through the Termination Date, payable in accordance with the
Company’s regular payroll practices;

     (ii) the Base Salary from the Termination Date through one year from the date thereof, payable
in accordance with the Company’s then regular payroll practices; provided, however,
that any Company-funded disability or life insurance or substantially similar disability or death
benefits payable to the Executive or to his Representative, as the case may be, solely an account
of such death or disability shall offset payments of Base Salary under this subsection (ii) if such
insurance and/or benefit amounts are payable prior to the due date(s) of such payment(s) hereunder;
and further provided, that any life insurance proceeds shall not be utilized to offset any payments
made to the Executive on account of any disability; and

     (iii) the Maximum Incentive Payment.

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     In addition, the Executive or his Representative, as the case may be, shall, to the extent
allowable under the law, COBRA limits or the provisions of the applicable plan, continue to receive
during such twelve (12) month period following the Termination Date all benefits and service
credits for benefits under medical, insurance and other employee benefit plans and programs
described in Sections 3.2 and 3.4 hereof and to which he was entitled at the Termination Date
(collectively, the “Benefits”).

     5.6.2 By the Company for Cause. In the event that the Employment Term is terminated
pursuant to Section 5.3 hereof, the Company shall pay to the Executive his Base Salary due and
owing to him through the Termination Date payable in accordance with the Company’s regular payroll
practices.

     5.6.3 By the Company without Cause or By the Executive for Substantial Breach. In the
event that the Employment Term is terminated pursuant to Section 5.4 or Section 5.5 hereof, the
Company shall pay to the Executive (i) the balance of the Base Salary and Maximum Incentive Payment
due and owing through the Termination Date payable in accordance with the Company’s regular payroll
practices; (ii) an amount equal to two times the sum of the Base Salary and Maximum Incentive
Payment, payable in twenty-four (24) equal monthly installments after the Termination Date, in
accordance with the Company’s then regular payroll practices, provided, however,
that the last twelve (12) payments may be withheld from the Executive by the Company if the
Executive is in breach of Section 7 hereof; and (iii) the costs and expenses of outplacement
related services which the Executive shall reasonably incur in an amount not to exceed $45,000
(upon the submission by him of reasonably itemized invoices therefor).

     In addition, the Executive shall continue to receive, to the extent allowable by law, the
Benefits during the period set forth in clause (ii) above. To the extent such Benefits under COBRA
cannot be provided by law after a period of eighteen (18) months, the Company will reimburse the
Executive an amount equivalent to the cost of such Benefits under COBRA to the Executive for the
remaining six (6) month period.

     5.6.4 Effect of Change of Control.

     (a) Payment Upon Termination.

     If a Change of Control (as hereinafter defined) occurs prior to a termination of the
Employment Term, then in the event of the subsequent termination of the Employment Term pursuant to
section 5.4 or Section 5.5 hereof, the Company shall, in lieu of the amount otherwise payable under
Section 5.6.3 hereof, immediately upon the Termination Date, pay to the Executive a lump-sum
payment equal to (i) the sum of the Executive’s Base Salary and the Maximum Incentive Payment
multiplied by three (3), and (ii) the value of the Benefits to which the Executive would otherwise
be entitled if such Benefits were continued for a period of three (3) years after the Termination
Date (which, if the Executive and the Company cannot agree on such value, shall be conclusively
determined by Watson Wyatt & Company within fifteen (15) days of the Termination Date).
Notwithstanding the foregoing, the Executive shall not be entitled to receive any payments under
Section 5.6.4 hereof, in the event the Company sells its Power Conversion business but still
continues to own at least fifty one (51%) percent interest in its Communications Products business.

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     In order for the Executive to become entitled to the payments pursuant to this subsection (a)
as a result of a termination pursuant to Section 5.5 hereof, he shall be required to provide the
notice referred to in such Section.

     (b) Change of Control Defined. A “Change of Control” shall be deemed to have occurred
upon any of the following events:

     (i) The consummation of any of the following transactions: (A) a merger, recapitalization or
other business combination of the Company with or into another corporation, or an acquisition of
securities or assets by the Company, pursuant to which the Company is not the continuing or
surviving corporation or pursuant to which all or substantially all of the shares of the Company’s
common stock are converted into cash, securities of another corporation or other property, other
than a transaction in which the holders of the Company’s common stock immediately prior to such
transaction (including any preliminary or other transactions relating to such transaction) shall
continue to own at least 50% of the total voting power of the then-outstanding securities of the
surviving or continuing corporation immediately after such transaction, (B) any sale, lease,
exchange, or other transfer (in one transaction or a series of related transactions) of all, or
substantially all, of the assets of the Company or (C) the liquidation or dissolution of the
Company, except in connection with the voluntary or involuntary declaration of bankruptcy or
insolvency under applicable Federal and/or state law;

     (ii) A transaction in which any Person (as such term is used in Sections 13 (d) (3) and 14
(d) (2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), corporation or
other entity (other than the Company, an affiliate of the Company, or any profit-sharing, employee
ownership or other employee benefit or similar plan sponsored by the Company or any of its
subsidiaries, or any trustee of or fiduciary with respect to any such plan when acting in such
capacity, or any group comprised solely of such entities): (A) shall purchase common stock (or
securities convertible into common stock) representing at least 40% of the total voting power of
the then-outstanding securities of the Company for cash, securities or any other consideration
pursuant to a tender offer or exchange offer, or (B) shall become the “beneficial owner” (as such
term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly (in one transaction
or a series of related transactions), of securities of the Company representing 50% or more of the
total voting power of the then-outstanding securities of the Company ordinarily (and apart from the
rights accruing under special circumstances) having the right to vote in the election of the
Company’s directors; or

     (iii) If, during any period of two (2) consecutive years, individuals who at the beginning of
such period constituted the entire Board and any new director whose election by the Board or
nomination for election by the Company’s stockholders was approved by a vote of at least a majority
of the directors then still in office who either were directors at the beginning of the period or
whose election or nomination for election by the stockholders was previously so approved, cease for
any reason to constitute a majority thereof.

     (c) Certain Additional Payments by the Company.

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     (i) Anything in this Agreement to the contrary notwithstanding, in the event it shall be
determined that any payment or distribution to or for the benefit of the Executive (whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement or any other plan,
arrangement or agreement with the Company, any person whose actions result in a Change in Control
or any Person affiliated with the Company or such Person, but determined without regard to any
additional payments required under this Section 5.6.4(c) (a “Payment”)) would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”) or
any interest or penalties are incurred by the Executive with respect to such excise tax (such
excise tax, together with any such interest and penalties, are hereinafter collectively referred to
as the “Excise Tax”), then the Executive shall be entitled to receive an additional payment (a
“Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes (including
any interest or penalties imposed with respect to such taxes), including, without limitation, any
income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up Payment equal to the
Excise Tax imposed upon the Payments.

     (ii) Subject to the provisions of paragraph (ii) of this Section 5.6.4(c), all determinations
required to be made under this Section 5.6.4(c), including whether and when a Gross-Up Payment is
required and the amount of such Gross-up Payment and the assumptions to be utilized in arriving at
such determination, shall be made by a nationally recognized certified public accounting firm
designated by the Executive (the “Accounting Firm”), which shall provide detailed supporting
calculations both to the Company and the Executive within fifteen (15) business days after receipt
of notice from the Executive that there has been a Payment, or such earlier time as is requested by
the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any
Gross-Up Payment, as determined pursuant to this Section 5.6.4(c), shall be paid by the Company to
the Executive within five (5) days of the receipt of the Accounting Firm’s determination. Any
determination by the Accounting Firm shall be binding upon the Company and the Executive. As a
result of the uncertainty in the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments which will
not have been made by the Company should have been made (“Underpayment”) consistent with the
calculations required to be made hereunder. In the event that the Company exhausts its remedies
pursuant to paragraph (iii) of this Section 5.6.4(c) and the Executive thereafter is required to
make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of the Executive.

     (iii) The Executive shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the Gross-Up Payment. Such
notification shall be given as soon as practicable but no later than ten (10) business days after
the Executive is informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid. The Executive shall not pay
such claim prior to the expiration of the thirty- (30) day period following the date on which it
gives such notice to the Company (or such shorter period ending on the date that any payment of
taxes with respect to such claim is due). If the Company notifies the Executive in writing prior to
the expiration of such period that it desires to contest such claim, the Executive shall:

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(A) give the Company any information reasonably requested by the Company relating to such
claim;

(B) take such action in connection with contesting such claim as the Company shall
reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by the
Company;

(C) cooperate with the Company in good faith in order effectively to contest such claim; and

(D) permit the Company to participate in any proceedings relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection with such contest and
shall indemnify and hold the Executive harmless, on an after-tax basis, for any Excise Tax or
income tax (including interest and penalties with respect thereto) imposed as a result of such
representation and payment of costs and expenses. Without limitation on the foregoing provisions of
this paragraph (iii) of Section 5.6.4(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forego any and all
administrative appeals, proceedings, hearings and conferences with the taxing authority in respect
of such claim and may, at its sole option, either direct the Executive to pay the tax claimed and
sue for a refund or contest the claim in any permissible manner, and the Executive agrees to
prosecute such contest to a determination before any administrative tribunal, in a court of initial
jurisdiction and in one or more appellate courts, as the Company shall determine; provided,
however, that if the Company directs the Executive to pay such claim and sue for a refund,
the Company shall advance the amount of such payment to the Executive, on an interest-free basis
and shall indemnify and hold the Executive harmless, on an after-tax basis, from any Excise Tax or
income tax (including interest or penalties with respect thereto) imposed with respect to such
advance or with respect to any imputed income with respect to such advance; and provided,
further, that any extension of the statute of limitations relating to payment of taxes for
the taxable year of the Executive with respect to which such contested amount is claimed to be due
is limited solely to such contested amount. Furthermore, the Company’s control of the contest shall
be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and the
Executive shall be entitled to settle or contest, as the case may be any other issue raised by the
Internal Revenue Service or any other taxing authority.

     (d) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
paragraph (c) of this Section 5.6.4, the Executive becomes entitled to receive any refund with
respect to such claim, the Executive shall (subject to the Company’s complying with the
requirements of paragraph (iii) of this Section 5.6.4(c) promptly pay to the Company the amount of
such refund (together with interest paid or credited thereon after taxes applicable thereto). If
after the receipt by the Executive of an amount advanced by the Company pursuant to paragraph (iii)
of this Section 5.6.4(c), a determination is made that the Executive shall not be entitled to any
to any refund with respect to such claim and the Company does not notify the Executive in writing
of its intent to contest such denial of refund prior to the expiration of thirty (30) days after
such determination, then such advance shall be forgiven and shall not be required

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to be repaid and the amount of such advance shall offset, to the extent thereof, the amount of
Gross-Up Payment required to be paid.

     5.6.5 Non-Renewal By the Employer. If the Company shall give notice of non-renewal of
the Employment Term in accordance with the provisions of Section 4 hereof, the Company shall pay to
the Executive an amount equal to two times the sum of the Base Salary and the Maximum Incentive
Payment, payable in twenty-four (24) equal monthly installments after the end of the Employment
Term payable in accordance with the Company’s then regular payroll practices.

     The parties hereto hereby agree that, for the purposes of this Section 5.6.5, the Termination
Date shall be the date upon which the Executive’s employment hereunder is scheduled to expire
pursuant to Section 4 hereof, unless the parties hereto mutually agree to an earlier date.

     Upon the payment of the foregoing amount to the Executive, the Company shall have no liability
or other obligation of any kind or character under or in connection with this Agreement, except
with respect to Section 7 hereof.

     Following the Executive’s attainment of the age of 65 years, all obligations and liabilities
of the Company under this Section 5.6.5 in respect of its decision not to renew the Executive shall
forthwith terminate.

     6. Arbitration.

     6.1 General. Any dispute under this Agreement arising out of or relating to Section 5
hereof shall be settled by arbitration in accordance with this Section 6.

     6.2 Commencement. Either party may serve upon the other party written notice that the
dispute, specifying the nature thereof, shall be submitted to arbitration. Within ten (10) days
after the service of such notice, each of the parties shall designate a person as an arbitrator and
serve written notice of such appointment upon the other party. If either party fails within the
specified time to appoint such arbitrator, the other party (if such party shall timely designate an
arbitrator) shall be entitled to appoint both arbitrators. The two arbitrators so appointed shall
appoint a third arbitrator. If the two arbitrators appointed shall fail to agree upon a third
arbitrator within ten (l0) days after their appointment, then an application may be made by either
party hereto, upon written notice to the other party, to the American Arbitration Association, or
any successor thereto, or if the American Arbitration Association or its successor shall fail to
appoint a third arbitrator within ten (10) days after such request, then either party may apply,
with written notice to the other, to any court of competent jurisdiction for the appointment of a
third arbitrator, and any such appointment so made shall be binding upon both parties hereto.

     6.3 Applicable Rules and Procedures. The arbitration shall be conducted, to the
extent consistent with this Section 6, in accordance with the then prevailing rules and procedures
of the American Arbitration Association or its successor. The arbitrators shall have the right to
retain and consult experts and competent authorities skilled in the matters under arbitration, but
all consultations shall be made in the presence of both parties, who shall have full right to
cross-examine the experts and authorities. Unless otherwise agreed by the parties, any such
arbitration

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shall take place in Boca Raton, Florida, and shall be conducted in accordance with the
Commercial Arbitration Rules of the American Arbitration Association.

     6.4 Decision. The arbitrators shall render their award, upon the concurrence of at
least two of their number, not later than thirty (30) days after the appointment of the third
arbitrator. Their decision and award shall be in writing, and counterpart copies shall be
delivered to each of the parties. Such decision of the arbitrators shall be final and binding upon
the parties hereto. In rendering their award, the arbitrators shall have no power to modify any of
the provisions of this Agreement, and the jurisdiction and power of the arbitrators are expressly
limited accordingly. Judgment may be entered on the award of the arbitrators and may, be enforced
in any court having jurisdiction.

     Each of the parties hereto shall bear all of its/his own fees, costs and expenses, including
attorneys’ fees, incurred by it in connection with any arbitration proceeding pursuant to this
Section 6. Notwithstanding the foregoing, in the event any party fails to comply with the decision
of the arbitrators and the other party undertakes any action(s) or proceeding(s) to enforce such
compliance, all costs and expenses (including reasonable legal fees) incurred by the party seeking
to enforce such compliance shall be borne by the party failing to so comply.

     7. Non-disclosure; Non-compete; Availability.

     7.1 “Confidential Information” Defined. “Confidential Information” shall mean any and
all information (verbal and written) of the Company or any of its subsidiaries or with respect to
any of their activities including, but not limited to, information relating to the Company’s
technology; research; test procedures and results; manufacturing machinery and equipment;
manufacturing processes; financial information; products; identity of raw materials and services
used; purchasing; trade secrets; costs; pricing; engineering; customers and prospects; marketing;
and selling and servicing; provided, that Confidential Information shall not include
information of a general, non-proprietary nature generally known in the industry and Company
specific information that in such form is or becomes publicly available other than through improper
means in which the Executive participated or of which he has knowledge.

     7.2 Non-Disclosure of Confidential Information. The Executive hereby agrees that he
shall not, at any time during the Employment Term (other than as may be required in connection with
the performance by him of his duties hereunder) or thereafter, directly or indirectly, use,
communicate, disclose or disseminate any Confidential Information in any manner whatsoever (except
as may be required under legal process by subpoena or other court order), without the prior written
consent of the Company.

     7.3 Non-compete Covenant. The Executive hereby agrees that he shall not, during the
Employment Term and for a period of twelve (12) months after the Termination Date (as long as he is
entitled to and duly receives any payments due to him pursuant to Section 5.6.3 hereof), directly
or indirectly engage in any business (whether as owner, manager, operator, lender, partner,
stockholder, licensor, licensee, joint venturer, employee, consultant or otherwise) in which the
Company or any of its subsidiaries, as of the Termination Date, is engaged as a significant portion
of its business (it is hereby agreed that (i) any business that constitutes at least twenty (20%)
percent of the Company’s prior fiscal year’s revenues and (ii) the Company’s

11

 

Power Conversion and Communications Products business areas shall automatically be deemed
“significant” hereunder) in any geographic area in which the Company or any of its subsidiaries
then is so engaged. Notwithstanding the foregoing, the Executive shall be permitted to own (as a
passive investment) not more than two (2%) percent of the economic interests of a person or entity;
provided, however, that said two (2%) percent limitation shall apply to the
aggregate holdings of the Executive and those of all other persons and entities with whom the
Executive has agreed to act for the purpose of acquiring, holding, voting or disposing of such
securities, except pursuant to a bona fide operating agreement in respect of such person or entity,
such as a stockholders’ agreement or partnership agreement. In the event of a termination of the
Employment Term as a result of a change in a “Change of Control”, the non-compete covenant
contained in this paragraph shall not apply to the Executive.

     7.4 Certain Activities. For purposes of clarification, but not of limitation, the
Executive hereby acknowledges and agrees that, in addition to the provisions of Section 7.3 above,
he shall not, during the period referred to therein, directly or indirectly, hire, offer to hire,
entice away or in any other manner persuade or attempt to persuade any officer, employee, agent,
lessor, lessee, licensor, licensee, customer (including those that are being actively solicited to
become customers), creditor or supplier (each, a “Solicited Person”) of the Company or any of its
subsidiaries to discontinue or adversely alter his or its relationship with the Company or any of
its subsidiaries so that such person can start or develop a relationship with any other person in
which the Executive has an interest as referred to in Section 7.3 hereof. For purposes of this
Section 7.4, a Solicited Person shall be deemed to include any person or entity who was an officer,
employee, agent, lessor, lessee, licensor, licensee, customer, prospective customer, creditor or
supplier at any time during the six-month period prior to the termination of the Employment Term.

     7.5 Injunctive Relief, etc. The parties hereto hereby acknowledge and agree that (i)
the Company would be irreparably injured in the event of a breach by the Executive of any of his
obligations under this Section 7; (ii) monetary damages would not be an adequate remedy for any
such breach; and (iii) the Company shall be entitled to injunctive relief, in addition to any other
remedies that it may have, in the event of any such breach. It is hereby also agreed that the
existence of any claims that the Executive may have against the Company or any of its subsidiaries,
whether under this Agreement or otherwise, shall not be a defense to the enforcement by the Company
of any of its rights under this Section 7.

     If the Company shall commence an injunctive action against the Executive in a court of
competent jurisdiction, the Executive may commence an action in such court, in lieu of the
arbitration of claims under Section 6 hereof, and upon the Executive’s commencement of such action,
the provisions of Section 6 hereof shall be null and void and of no further effect.

     7.6 Scope of Restrictions. It is the intent of the parties hereto that the covenants
and restrictions contained in this Section 7 shall be enforced to the fullest extent permissible
under the laws and public policies of each jurisdiction in which enforcement is sought. The
Executive hereby acknowledges that said restrictions are reasonably necessary for the protection of
the Company. Accordingly, it is hereby agreed that if any provision of this Section 7 shall be
adjudicated to be invalid or unenforceable for any reason whatsoever, said provision shall be (only
with respect to the operation thereof in the particular jurisdiction in which such

12

 

adjudication is made) construed by limiting and reducing it so as to be enforceable to the
fullest extent permissible, without invalidating or limiting the remaining provisions of this
Agreement or affecting the validity or enforceability of said provision in any other jurisdiction.

     7.7 Non-exclusivity. The undertakings and obligations of the Executive contained in
this Section 7 shall be in addition to, and not in lieu of, any obligations which he may have with
respect to the subject matter hereof, whether by contract, as a matter of law or otherwise.

     7.8 Availability. Reasonably subject to his employment commitments elsewhere, the
Executive hereby agrees to make himself available to the Company after the termination of the
Employment Term, at such reasonable time or times as may be required by the Company in connection
with any pending or threatened litigation or governmental investigation involving the Company, not
to exceed five (5) days in any calendar quarter unless otherwise mutually agreed. The Company shall
advance or reimburse the Executive for any out-of-pocket expenses reasonably incurred by him in
fulfilling his obligations under this Section 7.8 upon the submission by him of reasonably itemized
accounts therefor, and shall pay the Executive a mutually agreed upon per diem fee for any days in
excess of two (2) hereunder, including reasonable preparation time.

     7.9 Survival of Provisions of Section 7. It is understood and agreed that the
provisions of this Section 7 shall survive the date of termination or expiration of the Employment
Term.

     8. Miscellaneous Provisions.

     8.1 Withholding. All payments required to be made to the Executive by the Company
hereunder shall be subject to any applicable withholding under applicable Federal, state and local
income tax laws. Any such withholding shall be based upon the most recent Form W-4 filed by the
Executive with the Company, and the Executive may from time to time revise such filing.

     8.2 Severability. If in any jurisdiction any term or provision hereof is adjudicated
to be invalid or unenforceable, (i) the remaining terms and provisions hereof shall be unimpaired,
(ii) any such invalidity or unenforceability in any jurisdiction shall not invalidate, limit or
render unenforceable such provision in any other jurisdiction and (iii) the invalid or
unenforceable term or provision shall, for purposes of such jurisdiction, be deemed replaced by a
term or provision that is valid and enforceable and that comes closest to expressing the intention
of the invalid or unenforceable term or provision.

     8.3 Indemnification. The Company shall indemnify the Executive to the fullest extent
permitted by applicable law for all amounts (including without limitation, judgments, fines,
settlement payments, costs, expenses and attorneys’ fees and expenses) reasonably incurred or paid
by the Executive in connection with any claim, action, suit, investigation or proceeding arising
out of or relating to performance by the Executive of services for, or actions of the Executive as
(or the Executive’s serving in the position of) a director, officer or employee of, the Company,
any subsidiary or affiliate of the Company or any enterprise at the Company’s request, and shall
advance to the Executive (subject to the Executive’s undertaking to repay any advances if it is
determined that he is not entitled to them) the reasonable costs, including attorneys fees, of

13

 

defending any such notion. The provisions of this Section 8.3 shall survive the termination of
this Agreement.

     8.4 Execution in Counterparts. This Agreement may be executed in one or more
counterparts, and by each of the parties hereto in separate counterparts, each of which shall be
deemed to be an original but all of which taken together shall constitute one and the same
agreement, and this Agreement shall become effective when one or more counterparts has been signed
by each of the parties hereto and delivered to the other party hereto.

     8.5 Notices. All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed duly given when delivered by hand, or when delivered if mailed by
registered or certified mail or private courier service, postage prepaid, to the respective
addresses as follows:

If to the Company, to:

		
	           	Artesyn Technologies, Inc.

7900 Glades Road — Suite 500

Boca Raton, FL 33434

Attn: Chief Executive Officer

If to the Executive, to:

		
	           	Richard J. Thompson

6256 NW 23rd Terrace

Boca Raton, Florida 33496

or to such other address(es) as either party hereto shall have designated by like notice to the
other Party hereto.

     8.6 Amendment. No provision of this Agreement may be modified, amended or discharged
in any manner, except by a written instrument executed by each of the parties hereto.

     8.7 Entire Agreement. This Agreement constitutes the entire agreement of the parties
hereto with respect to the subject matter hereof, and supersedes all prior agreements and
understandings of the parties hereto, oral and written, including all prior or existing employment
agreements. Each party hereto hereby acknowledges and agrees that, other than as contained herein,
no other representations or warranties, oral or written, have been made, expressly or impliedly, by
the other party hereto.

     8.8 Applicable Law. This Agreement shall be governed by the laws of the State of
Florida applicable to contracts made and to be wholly performed therein.

     8.9 Headings. The headings contained herein are for the sole purpose of convenience
of reference, and shall not in any way limit or affect the meaning or interpretation of any of the
terms or provisions of this Agreement.

     8.10 Non-assignability.

14

 

     8.10.1 By the Executive. Neither this Agreement nor any right, duty, obligation or
interest hereunder shall be assignable or delegable by the Executive without the Company’s prior
written consent; however, that the Executive may designate any of his beneficiaries to receive (and
such beneficiaries shall receive) any compensation, payments or other benefits payable hereunder
upon or after his death, or the foregoing may be transferred by the laws of descent or
distribution.

     8.10.2 By the Company. This Agreement and all of the Company’s rights and obligations
hereunder may be assigned or transferred by it through a merger, consolidation or other business
combination, including a Change of Control. Upon the occurrence of such a transaction, any such
successor company resulting therefrom shall be deemed to be substituted for all purposes as the
Company hereunder.

     8.11 Binding Effect; Benefits. This Agreement shall inure to the benefit of, and be
binding upon, the parties hereto and their respective heirs, legal representatives, successors and
permitted assigns.

     8.12 Waiver. The failure of either of the parties hereto at any time to enforce any
provision of this Agreement shall not be deemed or construed to be a waiver of any such or any
other provision, nor to in any way affect the validity of this Agreement or any provision hereof or
the right of either of the parties hereto to thereafter enforce each and every provision of this
Agreement. No waiver of any breach of any of the provisions of this Agreement shall be effective
unless set forth in a written instrument executed by the party against whom or which enforcement of
such waiver is sought, and no waiver of any such breach shall be construed or deemed to be a waiver
of any other or subsequent breach.

     8.13 Capacity, etc. The Executive hereby represents and warrants to the Company and
the Company hereby represents and warrants to the Executive that: (i) he (or it) has full power,
authority and capacity to execute and deliver this Agreement, and to perform his (or its)
obligations hereunder, (ii) said execution, delivery and performance will not (and with the giving
of notice or lapse of time, or both, would not) result in the breach of any agreement or other
obligation to which he (or it) is a party or is otherwise bound and (iii) this Agreement is his (or
its) valid and binding obligation enforceable in accordance with its terms.

15

 

     IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto as of
the date first above written.

	 	 	 	 	 
	 	ARTESYN TECHNOLOGIES, INC.

 	 
	 	BY: /s/ Joseph M. O’Donnell
 	 
	 	TITLE: Chairman, President and 	 
	 	Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	                                              /s/ Richard J. Thompson
 	 
	 	Richard J. Thompson 	 
	 	 	 
	 

AGREED AND ACCEPTED:

/s/ Phillip A. O’Reilly

Phillip A. O’Reilly

Chairman – Compensation Committee

162000 Performance Equity Plan

 

Exhibit 10.9

Artesyn Technologies, Inc.

2000 Performance Equity Plan

(As Amended and Restated Effective March 8, 2004)

ARTICLE 1. INTRODUCTION.

          The purpose of the Plan is to promote the long-term success of the Company and its
subsidiaries, as well as the creation of stockholder value, by (a) encouraging Employees and
Consultants to focus on critical long-range objectives, (b) attracting and retaining Employees and
Consultants with exceptional qualifications and (c) linking Employees and Consultants directly to
stockholder interests through increased stock ownership. The Plan seeks to achieve this purpose by
providing for stock-based Awards in the form of Options, Stock Appreciation Rights, Restricted
Stock, Performance Awards and Stock Units, as well as providing for other long-term performance
awards related to the Company’s stock or its stock performance. The Plan is further intended to
enable cash incentive awards to qualify as performance-based for purposes of the tax deduction
limitations under Section 162(m) of the Code.

          This is an amendment and restatement of the Plan effective March 8, 2004, subject to the
approval of the Company’s stockholders. With respect to Awards granted prior to March 8, 2004, the
provisions of the Plan as in effect prior to this amendment and restatement shall continue to
govern. In the event that the Company’s stockholders do not approve this amendment and restatement
of the Plan, the Plan as in effect prior to this amendment and restatement shall remain in full
force and effect in accordance with its terms.

          The Company previously adopted the 1990 Performance Equity Plan (restated as of March 11,
1997) (the “Prior Plan”). Awards granted under the Prior Plan prior to the effective date of this
Plan (the “Prior Awards”) shall not be affected by the adoption or restatement of this Plan, and
the Prior Plan shall remain in effect following the effective date to the extent necessary to
administer the Prior Awards.

          The Plan shall be governed by, and construed in accordance with, the laws of the State of
Florida (excluding their choice-of-law provisions).

ARTICLE 2. ADMINISTRATION.

          2.1 Committee Composition. The Plan shall be administered by the Committee. The Committee shall
consist exclusively of two or more Directors of the Company, who shall be appointed by the Board.
In addition, the composition of the Committee shall satisfy:

 

 

          (a) Such requirements as the Securities and Exchange Commission may establish for
administrators acting under plans intended to qualify for exemption under Rule 16b-3 (or its
successor) under the Exchange Act; and

          (b) Such requirements as the Internal Revenue Service may establish for Outside Directors
acting under plans intended to qualify for exemption under Section 162(m)(4)(C) of the Code.

          2.2 Committee Responsibilities. The Committee shall have the discretion to (a) select the
Employees and Consultants who are to receive Awards under the Plan, (b) determine the type, number,
vesting requirements and other features and conditions of such Awards, (c) interpret the Plan, and
(d) make all other decisions relating to the operation of the Plan. The Committee may adopt such
rules or guidelines as it deems appropriate to implement the Plan. The Committee’s determinations
under the Plan shall be final and binding on all persons. The Committee may make any other
provision in individual Awards, including provisions for dispute resolution, that the Committee
deems appropriate. The Committee may allocate all or any portion of its responsibilities and
powers under the Plan to any one or more of its members, the CEO or other senior members of
management as the Committee deems appropriate and may delegate all or any part of its
responsibilities and powers to any such person or persons, provided that any such allocation or
delegation be in writing; provided, however, that only the Committee, or other committee consisting
of two or more Directors, all of whom are both a “Non-Employee Director” within the meaning of Rule
16b-3 under the Exchange Act and an “outside director” within the meaning of the definition of such
term as contained in Proposed Treasury Regulation Section 1.162-27(e)(3), or any successor
definition adopted under Section 162(m) of the Code, may select and grant Awards to Holders who are
subject to Section 16 of the Exchange Act or are “Covered Employees” (within the meaning of the
definition of such term under Section 162(m) of the Code and any applicable regulations). The
Committee may revoke any such allocation or delegation at any time for any reason with or without
prior notice. In the event of such allocation or delegation of authority, references in the Plan
to the Committee shall be deemed to refer to the delegate of the Committee.

          2.3 Indemnification. Each person 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 is delegated in accordance
with the Plan 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
the 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 judgment 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 or her own behalf; provided, however, that the foregoing indemnification shall not apply
to any loss, cost, liability, or expense that is a result of his or her own willful misconduct.
The foregoing right of indemnification shall not be exclusive of any other rights of
indemnification to which such persons may be entitled under the Company’s Certificate of
Incorporation or Bylaws, conferred in a separate agreement with the

2

 

Company, as a matter of law, or otherwise, or any power that the Company may have to indemnify them
or hold them harmless.

ARTICLE 3. SHARES AVAILABLE FOR GRANTS.

          3.1. Basic Limitations. Common Stock issued pursuant to the Plan may be authorized but unissued
shares or treasury shares. The aggregate number of shares of Common Stock issued under the Plan
shall not exceed 4,400,000 shares. No more than 4,400,000 shares of Common Stock may be issued
under the Plan as Incentive Stock Options. The limitations of this Section 3.1 shall be subject to
adjustment pursuant to Article 11.

          3.2 Shares Subject to Terminated Awards (Including Prior Awards). Common Stock covered by any
unexercised portions of terminated Options or Stock Appreciation Rights (including canceled Options
or Stock Appreciation Rights) granted under Article 5, Common Stock subject to any Awards that are
forfeited, and Common Stock subject to any Awards that are otherwise surrendered by the Holder may
again be subject to new Awards under the Plan. In addition, Common Stock covered by any
unexercised portions of terminated Prior Awards (including canceled Prior Awards), or Prior Awards
which are otherwise surrendered by the Holder, may again be subject to new awards under this Plan.
Common Stock subject to Options, or portions thereof, which have been surrendered in connection
with the exercise of Stock Appreciation Rights shall not be available for subsequent Awards under
the Plan, but Common Stock issued in payment of such Stock Appreciation Rights shall not be charged
against the number of shares of Common Stock available for the grant of Awards hereunder. In the
event of the exercise of Stock Appreciation Rights not granted in tandem with Options, only the
number of shares of Common Stock actually issued in payment of such Stock Appreciation Rights shall
be charged against the number of shares of Common Stock available for the grant of Awards
hereunder.

ARTICLE 4. ELIGIBILITY.

          4.1 Awards Generally. Except as provided in Section 4.2, Employees and Consultants shall be
eligible for Awards under the Plan. The designation of an individual to receive awards or grants
under one portion of the Plan does not require the Committee to include such Holder under other
portions of the Plan. In order to be eligible to participate in the deferral arrangements
described in Section 9.3(c), (d) or (e), an individual must be specifically designated by the
Committee as an Holder for purposes of those provisions.

          4.2 Incentive Stock Options. Only Employees of the Company, a Parent, or a Subsidiary shall be
eligible for the grant of ISOs. In addition, an Employee who owns more than 10% of the total
combined voting power of all classes of outstanding stock of the Company or any of its Parents or
Subsidiaries shall not be eligible for the grant of an ISO unless the requirements set forth in
Section 422(c)(5) of the Code are satisfied.

          4.3 Prospective Employees. For purposes of this Article 4, the term “Employee” shall include a
prospective Employee who holds an outstanding offer of regular employment on specific terms from
the Company, a Parent or a Subsidiary. If an ISO is granted

3

 

to a prospective Employee, the date when his or her service as an Employee commences shall be
deemed to be the date of grant of such ISO for all purposes under the Plan (including, without
limitation, Section 5.1(c)). No Award granted to a prospective Employee shall become exercisable
or vested unless and until his or her service as an Employee commences.

          4.4 Limitations on Annual Awards. Subject to adjustment in accordance with Article 11, in any
calendar year, no Holder shall be granted Awards in respect of more than 500,000 shares of Common
Stock (whether through grants of Options, Stock Appreciation Rights or any other Awards under this
Plan) and $2,000,000 in cash.

ARTICLE 5. STOCK OPTIONS AND STOCK APPRECIATION RIGHTS

          5.1 Option Awards.

          (a) Award Agreement. Each grant of an Option under the Plan shall be evidenced by a
written Award Agreement between the Holder and the Company. Such Option shall be subject to all
applicable terms of the Plan and may be subject to any other terms that are consistent with the
Plan. The Award Agreement shall specify whether the Option is an ISO or an NSO. The provisions of
the various Award Agreements entered into under the Plan need not be identical.

          (b) Number of Shares. Each Award Agreement shall specify the number of shares of
Common Stock subject to the Option and shall provide for the adjustment of such number in
accordance with Article 11.

          (c) Exercise Price. Each Award Agreement shall specify the Exercise Price; provided
that, except as otherwise provided in Section 11.4 in the case of Options granted to replace stock
options issued by acquired companies, the Exercise Price per share shall in no event be less than
100% of the Fair Market Value of a share of Common Stock as of the date of grant. In the case of
an NSO, an Award Agreement may specify an Exercise Price that varies in accordance with a
predetermined formula while the NSO is outstanding.

          (d) Buyout Provisions. The Committee may at any time (a) offer to buy out for a
payment in cash or cash equivalents an Option previously granted, or (b) authorize an Holder to
elect to cash out an Option previously granted, in either case at such time and based upon such
terms and conditions as the Committee shall establish.

          (e) Transferability. Unless otherwise authorized by the Committee, an Option shall not
be transferable by the Holder otherwise than by will or by the laws of descent and distribution.
The Committee may, in the manner established by the Committee, allow for the transfer without
payment of consideration, of a NSO by an Holder to a member of the Holder’s immediate family or to
a trust or partnership whose beneficiaries are members of the Holder’s immediate family. In such
case, the Option shall be exercisable only by such transferee. For purposes of this provision, an
Holder’s “immediate family” shall mean the Holder’s spouse, children and grandchildren.

4

 

          (f) Incentive Stock Option Share Limitation. No Holder may be granted ISOs under the
Plan (or any other plans of the Company and its Subsidiaries) that would result in shares with an
aggregate Fair Market Value (measured on the Date of Grant) of more than $100,000 first becoming
exercisable in any one calendar year.

          (g) Deferral of Stock Option Gains. Stock Option Gains with respect to NSOs granted
under this Plan may be deferred in accordance with Section 9.3 by any Holder who is designated by
the Committee as eligible to participate in such deferral arrangement.

          5.2 Stock Appreciation Rights.

          (a) Stock Appreciation Right Awards. The Committee is authorized to grant to any
Holder one or more Stock Appreciation Rights. Such Stock Appreciation Rights may be granted either
independent of or in tandem with Options granted to the same Holder. Stock Appreciation Rights
granted in tandem with Options may be granted simultaneously with, or, in the case of NSOs,
subsequent to, the grant to such Holder of the related Option; provided however, that: (i) any
Option covering any share of Common Stock shall expire and not be exercisable upon the exercise of
any Stock Appreciation Right with respect to the same share, (ii) any Stock Appreciation Right
covering any share of Common Stock shall expire and not be exercisable upon the exercise of any
related Option with respect to the same share, and (iii) an Option and Stock Appreciation Right
covering the same share of Common Stock may not be exercised simultaneously. Upon exercise of a
Stock Appreciation Right with respect to a share of Common Stock, the Holder shall be entitled to
receive an amount equal to the excess, if any, of (A) the Fair Market Value of a share of Common
Stock on the date of exercise over (B) the Exercise Price of such Stock Appreciation Right
established in the Award Agreement, which amount shall be payable as provided in Section 5.2(c).

          (b) Exercise Price. The Exercise Price established under any Stock Appreciation Right
granted under this Plan shall be determined by the Committee, but in the case of Stock Appreciation
Rights granted in tandem with Options shall not be less than the Exercise Price of the related
Option.

          (c) Payment of Incremental Value. Any payment which may become due from the Company
by reason of an Holder’s exercise of a Stock Appreciation Right may be paid to the Holder as
determined by the Committee (i) all in cash, (ii) all in Common Stock, or (iii) in any combination
of cash and Common Stock. In the event that all or a portion of the payment is made in Common
Stock, the number of shares of Common Stock delivered in satisfaction of such payment shall be
determined by dividing the amount of such payment or portion thereof by the Fair Market Value on
the Exercise Date. No fractional share of Common Stock shall be issued to make any payment in
respect of Stock Appreciation Rights; if any fractional share would be issuable, the combination of
cash and Common Stock payable to the Holder shall be adjusted as directed by the Committee to avoid
the issuance of any fractional share.

          (d) Deferral of Certain Stock Appreciation Rights. In the case of Stock Appreciation
Rights that are payable solely in shares of Common Stock, the shares of Common Stock issuable upon
the exercise thereof may be deferred in accordance with Section 9.3 by any

5

 

Holder who is designated by the Committee as eligible to participate in such deferral arrangement.

ARTICLE 6. TERMS OF STOCK OPTIONS AND STOCK APPRECIATION RIGHTS.

          6.1 Conditions on Exercise. An Award Agreement with respect to Options and/or Stock Appreciation
Rights may contain such waiting periods, exercise dates and restrictions on exercise (including,
but not limited to, periodic installments) as may be determined by the Committee at the time of
grant.

          6.2 Duration of Options and Stock Appreciation Rights.

          (a) Termination Events. Unless otherwise provided by the Committee in the applicable
Award Agreement, Options and Stock Appreciation Rights shall terminate upon the first to occur of
the following events:

          (i) Expiration of the Option or Stock Appreciation Right as provided in the Award
Agreement; or

          (ii) Termination of the Award in the event of an Holder’s disability, retirement, death
or other termination of service as provided in the Award Agreement; or

          (iii) Ten years from the Date of Grant; or

          (iv) Solely in the case of a Stock Appreciation Right granted in tandem with an Option,
upon the expiration of the related Option.

          (b) Acceleration or Extension of Exercise Time. Subject to the limit under Section
6.2(a)(iii), the Committee, in its sole discretion, shall have the right (but shall not be
obligated), exercisable on or at any time after the Date of Grant, to permit the exercise of an
Option or Stock Appreciation Right (i) prior to the time such Option or Stock Appreciation Right
would become exercisable under the terms of the Award Agreement, (ii) after the termination of the
Option or Stock Appreciation Right under the terms of the Award Agreement, or (iii) after the
expiration of the Option or Stock Appreciation Right.

          6.3 Exercise Procedures. Each Option and Stock Appreciation Right granted under the Plan shall be
exercised under such procedures and by such methods as the Committee may establish or approve from
time to time. The Exercise Price of shares purchased upon exercise of an Option granted under the
Plan shall be paid in full in cash by the Holder pursuant to the Award Agreement; provided,
however, that the Board may (but shall not be required to) permit payment to be made by delivery to
the Company of either (a) shares of Common Stock held by the Holder for at least six months or (b)
any combination of cash and Common Stock or (c) any other consideration that the Board deems
appropriate and in compliance with applicable law. In the event that any Common Stock shall be
transferred to the Company to satisfy all or any part of the Exercise Price, the part of the
Exercise Price deemed to have been satisfied by such transfer of Common Stock shall be equal to the
product derived by multiplying the Fair

6

 

Market Value as of the date of exercise times the number of shares of Common Stock transferred to
the Company. The Holder may not transfer to the Company in satisfaction of the Exercise Price any
fractional share of Common Stock. Any part of the Exercise Price paid in cash upon the exercise of
any Option shall be added to the general funds of the Company and may be used for any proper
corporate purpose. Unless the Committee shall otherwise determine, any Common Stock transferred to
the Company as payment of all or part of the Exercise Price upon the exercise of any Option shall
be held as treasury shares.

          6.4 Change in Control. Unless otherwise provided by the Committee in the applicable Award
Agreement, in the event of a Change in Control, all Options outstanding on the date of such Change
in Control, and all Stock Appreciation Rights shall become immediately and fully exercisable. The
provisions of this Section 6.4 shall not be applicable to any Options or Stock Appreciation Rights
granted to an Holder if any Change in Control results from such Holder’s beneficial ownership
(within the meaning of Rule 13d-3 under the Exchange Act) of Common Stock.

ARTICLE 7. RESTRICTED STOCK

          7.1 Restricted Stock Grants. The Committee may make grants of Restricted Stock to Holders.
Whenever the Committee deems it appropriate to grant Restricted Stock, notice shall be given to the
Holder, stating the number of shares of Restricted Stock granted and the terms and conditions to
which the Restricted Stock is subject. This notice, when accepted in writing by the Holder, shall
become an Award Agreement between the Company and the Holder. Restricted Stock may be awarded by
the Committee at its discretion without cash consideration.

          7.2 Transferability. No shares of Restricted Stock may be sold, assigned, transferred (other than
by will or the laws of descent and distribution, or to an inter vivos trust with respect to which
the Holder is treated as the owner under Sections 671 through 677 of the Code, except to the extent
that Section 16 of the Exchange Act limits an Holder’s right to make such transfers), pledged,
hypothecated, or otherwise encumbered or disposed of until the restrictions on such shares, as set
forth in the Holder’s Award Agreement, have lapsed or been removed pursuant to Section 7.4 below.

          7.3 Rights as a Stockholder. Upon the acceptance by an Holder of an Award of Restricted Stock,
such Holder shall, subject to the restrictions set forth in the Award, have all the rights of a
stockholder with respect to such shares of Restricted Stock, including, but not limited to, the
right to vote such shares of Restricted Stock and the right to receive all dividends and other
distributions paid thereon. Certificates, if any, representing Restricted Stock shall bear a
legend referring to the restrictions set forth in the Plan and Holder’s Award Agreement. Such
certificates may be held in custody by the Company until the lapse of the restrictions on the
Restricted Stock.

          7.4 Terms and Conditions of Award. Each Award of Restricted Stock shall be subject to such terms,
conditions and restrictions, whether based on performance standards, periods of service, retention
by the Holder of ownership of specified shares of Common Stock or other criteria, as the Committee
shall establish. With respect to performance-based Awards of

7

 

Restricted Stock intended to qualify for deductibility under the “performance-based” compensation
exception contained in Section 162(m) of the Code, performance targets will consist of specified
levels of one or more of the Performance Goals. Except to the extent inconsistent with the
performance-based compensation exception under Section 162(m) of the Code, in the case of
Restricted Stock granted to Employees to whom such Section is applicable, the Committee, in its
discretion, but only under extraordinary circumstances as determined by the Committee, may change
any prior determination of performance targets at any time prior to the final determination of the
Award when events or transactions occur to cause the performance targets to be an inappropriate
measure of achievement. Such Restricted Stock Awards may provide for, without limitation, the
lapsing of such restrictions as a result of the disability, death or retirement of the Holder.
Notwithstanding the provisions of Section 7.2 above, the Committee may at any time, at its sole
discretion, modify or extend Awards of Restricted Stock or accelerate the time at which any or all
restrictions will lapse or remove any and all such restrictions.

          7.5 Change in Control. Unless otherwise provided by the Committee in the applicable Award
Agreement, in the event of a Change in Control, all restrictions with respect to Awards of
Restricted Stock outstanding on the date of such Change in Control shall lapse upon such Change in
Control. The provisions of this Section 6.4 shall not be applicable to any Options or Stock
Appreciation Rights granted to an Holder if any Change in Control results from such Holder’s
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) of Common Stock.

ARTICLE 8. PERFORMANCE AWARDS

          8.1. Performance Awards.

          (a) Award Periods and Calculations of Potential Incentive Amounts. The Committee may
grant Performance Awards to Holders. A Performance Award shall consist of the right to receive a
payment (measured by the Fair Market Value of a specified number of shares of Common Stock,
increases in such Fair Market Value during the Award Period and/or a fixed cash amount) contingent
upon the extent to which certain predetermined performance targets have been met during an Award
Period. Performance Awards may be made in conjunction with, or in addition to, other Awards made
under this Plan. The Award Period shall be two or more fiscal or calendar years as determined by
the Committee. The Committee, in its discretion and under such terms as it deems appropriate, may
permit newly eligible Employees, such as those who are promoted or newly hired, to receive
Performance Awards after an Award Period has commenced.

          (b) Performance Targets. The performance targets may include such goals related to
the performance of the Company or, where relevant, any one or more of its Subsidiaries or divisions
and/or the performance of an Holder as may be established by the Committee in its discretion. With
respect to Performance Awards intended to qualify for deductibility under the “performance-based”
compensation exception contained in Section 162(m) of the Code, the targets will be limited to
specified levels of one or more of the Performance Goals. The performance targets established by
the Committee may vary for different Award Periods and need not be the same for each Holder
receiving a Performance

8

 

Award in an Award Period. Except to the extent inconsistent with the performance-based
compensation exception under Section 162(m) of the Code, in the case of Performance Awards granted
to Employees to whom such section is applicable, the Committee, in its discretion, but only under
extraordinary circumstances as determined by the Committee, may change any prior determination of
performance targets for any Award Period at any time prior to the final determination of the Award
when events or transactions occur to cause the performance targets to be an inappropriate measure
of achievement.

          (c) Earning Performance Awards. The Committee, at or as soon as practicable after the
date of grant, shall prescribe a formula to determine the percentage of the Performance Award to be
earned based upon the degree of attainment of performance targets.

          (d) Payment of Earned Performance Awards. Subject to the requirements of Article 13,
payments of earned Performance Awards shall be made in cash or Common Stock, or a combination of
cash and Common Stock, in the discretion of the Committee. The Committee, in its sole discretion,
may define such terms and conditions with respect to the payment of earned Performance Awards as it
may deem desirable.

          8.2. Terms of Performance Awards. Unless otherwise provided by the Committee in the
applicable Award Agreement, the following terms shall apply to Performance Awards granted under the
Plan.

          (a) Termination of Employment. Unless otherwise provided below, in the case of an
Holder’s termination of employment prior to the end of an Award Period, the Holder will not have
earned any Performance Awards.

          (b) Retirement, Death or Disability. If an Holder’s termination of employment is due
to Retirement, death or disability (as determined in the sole and exclusive discretion of the
Committee) prior to the end of an Award Period, the Holder or the Holder’s personal representative
shall be entitled to receive a pro-rata share of his or her Award as determined under Subsection
(c).

          (c) Pro-Rata Payment. The amount of any payment made to an Holder whose employment is
terminated by Retirement, death or disability (under circumstances described in Subsection (b))
will be the amount determined by multiplying the amount of the Performance Award which would have
been earned, determined at the end of the Award Period, had such employment not been terminated, by
a fraction, the numerator of which is the number of whole months such Holder was employed during
the Award Period, and the denominator of which is the total number of months of the Award Period.
Any such payment made to an Holder whose employment is terminated prior to the end of an Award
Period under this Section 8.2 shall be made at the end of the respective Award Period, unless
otherwise determined by the Committee in its sole discretion.

          (d) Other Events. Notwithstanding anything to the contrary in this Article 8, the
Committee may, in its sole and exclusive discretion, determine to pay all or any portion of a
Performance Award to an Holder who has terminated employment prior to the end of an Award

9

 

Period under certain circumstances (including the death, disability or Retirement of the
Holder or the occurrence of a Change in Control) and subject to such terms and conditions as the
Committee shall deem appropriate.

ARTICLE 9. OTHER STOCK-BASED AWARDS

          9.1. Grant of Other Stock-Based Awards. Other stock-based awards, consisting of stock
purchase rights, Awards of Common Stock, or Awards valued in whole or in part by reference to, or
otherwise based on, Common Stock, may be granted either alone or in addition to or in conjunction
with other Awards under the Plan. Subject to the provisions of the Plan, the Committee shall have
sole and complete authority to determine the persons to whom and the time or times at which such
Awards shall be made, the number of shares of Common Stock to be granted pursuant to such Awards,
and all other terms and conditions of the Awards. Any such Award shall be confirmed by an Award
Agreement executed by the Committee and the Holder, which Award Agreement shall contain such
provisions as the Committee determines to be necessary or appropriate to carry out the intent of
this Plan with respect to such Award.

          9.2. Terms of Other Stock-Based Awards. In addition to the terms and conditions specified in
the Award Agreement, Awards made pursuant to this Article 9 shall be subject to the following:

          (a) Any Common Stock subject to Awards made under this Article 9 may not be sold, assigned,
transferred, pledged or otherwise encumbered prior to the date on which the shares are issued, or,
if later, the date on which any applicable restriction, performance or deferral period lapses.

          (b) If specified by the Committee in the Award Agreement, the recipient of an Award under this
Article 9 shall be entitled to receive, currently or on a deferred basis, interest or dividends or
dividend equivalents with respect to the Common Stock or other securities covered by the Award.

          (c) The Award Agreement with respect to any Award shall contain provisions dealing with the
disposition of such Award in the event of a Change in Control or in the event of a termination of
employment prior to the exercise, realization or payment of such Award, whether such termination
occurs because of Retirement, disability, death or other reason, with such provisions to take
account of the specific nature and purpose of the Award.

          (d) With respect to performance-based Awards of Stock Units intended to qualify for
deductibility under the “performance-based” compensation exception contained in Section 162(m) of
the Code, performance targets will consist of specified levels of one or more of the Performance
Goals. Except to the extent inconsistent with the performance-based compensation exception under
Section 162(m) of the Code, in the case of Stock Units granted to Employees to whom such section is
applicable, the Committee, in its discretion, but only under extraordinary circumstances as
determined by the Committee, may change any prior determination of performance targets at any time
prior to the final determination of the Award

10

 

when events or transactions occur to cause the performance targets to be an inappropriate
measure of achievement.

          9.3 Stock Unit Awards.

          (a) In General. Without limiting the generality of the foregoing provisions of this
Article 9, and subject to such terms, limitations and restrictions as the Committee may impose,
Holders designated by the Committee as Holders for purposes of this Section 9.3 may receive Awards
of Stock Units: (i) as Restricted Stock Unit Awards in lieu of or in addition to other Awards under
the Plan, (ii) in connection with the deferral of Stock Option Gains, (iii) in connection with the
deferral of restricted stock (whether granted under this Plan or any other plan sponsored by the
Company) and (iv) in connection with the deferral of stock appreciation rights payable solely in
shares of Common Stock (whether granted under this Plan or any other plan sponsored by the
Company). The Committee shall establish rules and regulations governing the deferrals and the
Stock Unit Awards under any such arrangement as may be established.

          (b) Restricted Stock Unit Awards. The Committee may grant Restricted Stock Unit
Awards representing the right to receive shares of Common Stock in the future subject to the
achievement of one or more goals relating to the completion of service by the Holder and/or the
achievement of performance or other objectives. Restricted Stock Unit Awards shall be subject to
the restrictions, terms and conditions contained in the Plan and the applicable Award Agreements
entered into by the appropriate Holders. Until the lapse or release of all restrictions applicable
to an Award of Restricted Stock Units, no shares of Common Stock shall be issued in respect of such
Awards and no Holder shall have any rights as a stockholder of the Company with respect to the
shares of Common Stock covered by such Restricted Stock Unit Award. Upon the lapse or release of
all restrictions with respect to a Restricted Stock Unit Award or at a later date if distribution
has been deferred, one or more share certificates, registered in the name of the Holder, for an
appropriate number of shares, free of any restrictions set forth in the Plan and the related Award
Agreement shall be delivered to the Holder. A Holder’s Restricted Stock Unit Award shall not be
contingent on any payment by or consideration from the Holder other than the rendering of services.
Notwithstanding anything contained in this Section 9.3(b) to the contrary, the Committee may, in
its sole discretion, waive the forfeiture period and any other conditions set forth in any Award
Agreement under appropriate circumstances (including the death, disability or Retirement of the
Holder or the occurrence of a Change in Control) and subject to such terms and conditions
(including forfeiture of a proportionate number of the Restricted Stock Units) as the Committee
shall deem appropriate.

          (c) Deferral of Stock Option Gains. Subject to such timing rules as the Committee may
establish, an Holder may irrevocably elect to defer receipt of all or any portion of Stock Option
Gains and receive a credit under his or her Stock Unit Account of an equivalent number of Stock
Units in accordance with such limitations, terms and conditions as the Committee may determine.
Any such deferral election must occur in a time period designated by the Committee from time to
time. Nothing in this Section 9.3(c) of the Plan shall be interpreted to permit an Holder to
exercise any stock option to the extent such stock option is not vested or is not otherwise
exercisable in accordance with the applicable plan and agreement. A Holder’s election to defer
Stock Option Gains shall only apply to stock option exercises in connection with which the Holder,
in accordance with the applicable plan and agreement, pays the total

11

 

amount of the exercise price of such stock option by the delivery (or deemed delivery) of
shares of Common Stock held by the Holder for at least the period of time required by the
applicable plan and agreement.

          (d) Deferral of Restricted Stock. Subject to such timing rules as the Committee may
establish, an Holder may irrevocably elect to defer receipt of all or any number of shares of
restricted stock (whether granted under this Plan or any other plan sponsored by the Company) and
receive a credit under his or her Stock Unit Account of an equivalent number of Stock Units. Any
such deferral election must be made in a time period designated by the Committee from time to time.
If an Holder elects to defer all or a portion of a restricted stock award that has previously been
granted, the Holder shall transfer the restricted stock subject to such restricted stock award to
the Company. Upon such transfer, the restricted stock shall be canceled by the Company and held as
treasury stock, and shall no longer be considered outstanding shares. The Stock Units credited to
an Holder’s Stock Unit Account with respect to a deferral of shares of restricted stock shall vest
and shall be forfeited subject to the same terms and conditions as were applicable to the original
restricted stock. The number of Stock Units credited to an Holder’s Stock Unit Account shall be
reduced by the number of Stock Units so forfeited.

          (e) Deferral of Stock Appreciation Rights. The Committee may, in its discretion,
permit Holders to defer receipt of shares of Common Stock issuable upon the exercise of stock
appreciation rights payable solely in Common Stock (whether granted under this Plan or any other
plan sponsored by the Company), in accordance with such restrictions, terms and conditions as the
Committee shall determine.

          (f) Dividend Equivalents. A Holder’s Stock Unit Account shall be credited with a
number of Stock Units equal in value to the amount of any cash dividends or stock distributions
that would be payable with respect to such Stock Units had such Stock Units been outstanding shares
of Common Stock (“dividend equivalents”). The number of Stock Units credited with respect to cash
dividends shall be determined by dividing the amount of cash dividends that would be payable by the
Fair Market Value of Common Stock as of the date such cash dividends would be payable. Dividend
equivalents credited to an Holder’s Stock Unit Account that are attributable to Stock Units that
are subject to vesting and forfeiture restrictions as a result of a deferral of receipt of
restricted stock shall be forfeited at such time as any such underlying Stock Units are forfeited.

          (g) Distribution of Stock Units. The Stock Units in an Holder’s Stock Unit Account
shall be distributed, or commence to be distributed, to the Holder only in the form of Common Stock
(with fractional shares being payable in cash) at such time and under such method as shall be
provided in the applicable Award Agreement. A Holder shall be entitled to receive a distribution
of one share of Common Stock for each Stock Unit credited to his or her Stock Unit Account and cash
equal to the Fair Market Value of any fractional Stock Unit credited to his or her Stock Unit
Account. Such distribution shall occur at such time, and subject to such terms and conditions, as
may be specified in the applicable Award Agreement or as may be otherwise determined by the
Committee.

12

 

ARTICLE 10. SHORT-TERM CASH INCENTIVE AWARDS

          10.1. Eligibility. Executive officers of the Company who are from time to time determined by
the Committee to be “covered employees” for purposes of Section 162(m) of the Code will be eligible
to receive short-term cash incentive awards under this Article 10.

          10.2. Awards.

          (a) Performance Targets. For each fiscal year of the Company, the Committee shall
establish objective performance targets based on specified levels of one or more of the Performance
Goals. Such performance targets shall be established by the Committee on a timely basis to ensure
that the targets are considered “preestablished” for purposes of Section 162(m) of the Code.
Except to the extent inconsistent with the performance-based compensation exception under Section
162(m) of the Code, the Committee, in its discretion, but only under extraordinary circumstances as
determined by the Committee, may change any prior determination of performance targets at any time
prior to the final determination of the Award when events or transactions occur to cause the
performance targets to be an inappropriate measure of achievement.

          (b) Amounts of Awards. In conjunction with the establishment of performance targets
for a fiscal year, the Committee shall adopt an objective formula (on the basis of percentages of
Holders’ salaries, shares in a bonus pool or otherwise) for computing the respective amounts
payable under the Plan to Holders if and to the extent that the performance targets are attained.
Such formula shall comply with the requirements applicable to performance-based compensation plans
under Section 162(m) of the Code and, to the extent based on percentages of a bonus pool, such
percentages shall not exceed 100% in the aggregate.

          (c) Payment of Awards. Awards will be payable to Holders in cash each year upon prior
written certification by the Committee of attainment of the specified performance targets for the
preceding fiscal year.

          (d) Negative Discretion. Notwithstanding the attainment by the Company of the
specified performance targets, the Committee shall have the discretion, which need not be exercised
uniformly among the Holders, to reduce or eliminate the award that would be otherwise paid.

          (e) Guidelines. The Committee shall adopt from time to time written policies for its
implementation of this Article 10. Such guidelines shall reflect the intention of the Company that
all payments hereunder qualify as performance-based compensation under Section 162(m) of the Code.

          (f) Non-Exclusive Arrangement. The adoption and operation of this Article 10 shall
not preclude the Board or the Committee from approving other short-term incentive compensation
arrangements for the benefit of individuals who are Holders hereunder as the Board or Committee, as
the case may be, deems appropriate and in the best of the Company.

13

 

ARTICLE 11. PROTECTION AGAINST DILUTION.

          11.1 Adjustments. In the event of a subdivision of the outstanding Common Stock, a declaration of
a dividend payable in Common Stock, a declaration of a dividend payable in a form other than Common
Stock in an amount that has a material effect on the price of Common Stock, a combination or
consolidation of the outstanding Common Stock (by reclassification or otherwise) into a lesser
number of Common Stock, a recapitalization, a spin-off or a similar occurrence, the Committee shall
make such equitable adjustments as it, in its sole discretion, deems appropriate in one or more of
(a) the number and kind of securities available for future Awards under Article 3, (b) the
limitations set forth in Section 4.4 or (c) the number and kind of securities subject to
outstanding Awards and the Exercise Price under each outstanding Option. Except as provided in
this Article 11, an Holder shall have no right by reason of any issue by the Company of stock of
any class or securities convertible into stock of any class, any subdivision or consolidation of
shares of stock of any class, the payment of any stock dividend, or any other increase or decrease
in the number of shares of stock in any class.

          11.2 Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the
Company, the Committee shall notify each Holder as soon as practicable prior to the effective date
of such proposed transaction. The Committee at its discretion, may provide for an Holder to have
the right to exercise his or her Options and receive payment of other Awards to the extent
determined by the Committee until 10 days prior to such transaction as to some or all of the Common
Stock covered thereby, including Common Stock as to which the Options would not otherwise be
exercisable. In addition, the Committee may provide that any Company repurchase options applicable
to any shares of Common Stock purchased upon exercise of an Option shall lapse as to some or all
such shares, provided the proposed dissolution or liquidation takes place at the time and in the
manner contemplated. To the extent not previously exercised or paid, Awards shall terminate
immediately prior to the consummation of such proposed action.

          11.3 Reorganization. In the event that the Company is a party to a merger or other reorganization,
outstanding Awards shall be subject to the agreement of merger or reorganization. Such agreement
may provide, without limitation, for the continuation of outstanding Awards by the Company (if the
Company is a surviving corporation), for their assumption by the surviving corporation or its
parent or subsidiary, for the substitution by the surviving corporation or its parent or subsidiary
of its own awards for such Awards, for accelerated vesting and accelerated expiration, or for
settlement in cash or cash equivalents.

          11.4 Awards for Acquired Companies. After any merger, consolidation, reorganization, stock or
asset purchase or similar transaction in which the Company or a Subsidiary shall be the surviving
corporation, the Committee may grant Options under the provisions of the Plan, pursuant to Section
424 of the Code or as is otherwise permitted under the Code, in full or partial replacement of or
substitution for stock options granted under a plan of another party to the transaction whose
shares of stock subject to the old options may no longer be issued following the transaction. The
manner of application of the foregoing provisions to such options and any appropriate adjustments
in the terms of such awards shall be determined by the Company in its sole discretion. Any such
adjustments may provide for the elimination of any

14

 

fractional shares which might otherwise become subject to any awards. The foregoing shall not be
deemed to preclude the Company from assuming or substituting for stock options of acquired
companies other than pursuant to this Plan.

ARTICLE 12. LIMITATION ON RIGHTS.

          12.1 Retention Rights. Neither the Plan nor any Award granted under the Plan shall be deemed to
give any individual a right to remain an Employee or Consultant. The Company and its Parents,
Subsidiaries and Affiliates reserve the right to terminate the service of any Employee or
Consultant at any time, with or without cause, subject to applicable laws, the Company’s
Certificate of Incorporation and By-Laws and a written Employment Agreement (if any).

          12.2 Stockholders’ Rights. A Holder shall have no dividend rights, voting rights or other rights
as a stockholder with respect to any shares of Common Stock covered by his or her Award prior to
the time when a stock certificate for such Common Stock is issued or, in the case of an Option, the
time when he or she become entitled to receive such shares of Common Stock by filing a notice of
exercise and paying the Exercise Price. No adjustment shall be made for cash dividends or other
rights for which the record date is prior to such time, except as expressly provided in the Plan or
in the applicable Award Agreement.

          12.3 Regulatory Requirements. Any other provision of the Plan, notwithstanding the obligation of
the Company to issue shares of Common Stock under the Plan, shall be subject to all applicable
laws, rules and regulations and such approval by any regulatory body as may be required. The
Company reserves the right to restrict, in whole or in part, the delivery of Common Stock pursuant
to any Award prior to the satisfaction of all legal requirements relating to the issuance of such
Common Stock, to their registration, qualification or listing or to an exemption from registration,
qualification or listing.

          12.4 Surrender or Substitution of Awards. Any Award granted under the Plan may be surrendered to
the Company for cancellation on such terms as the Committee and the holder approve. With the
consent of the Holder, the Committee may substitute a new Award under this Plan in connection with
the surrender by the Holder of an equity compensation award previously granted under this Plan or
any other plan sponsored by the Company; provided, however, that no such substitution shall be
permitted without the approval of the Company’s stockholders in the event that such substitution
would be considered a “repricing” under the rules of any stock exchange or market quotation system
on which the Common Stock is listed. Notwithstanding the foregoing, if the Company elects or
otherwise is required to expense the cost of Options for accounting purposes, the Committee shall
have the ability to substitute, without the consent of the Holder, Stock Appreciation Rights
payable only in Common Stock for outstanding Options; provided, the terms of the substituted Stock
Appreciation Rights Awards are the same as the terms for the Options and the difference between the
Fair Market Value of the underlying shares and the Exercise Price of the Stock Appreciation Rights
is equivalent to the difference between the Fair Market Value of the underlying shares and the
Exercise Price of the Options. Any such substitution shall be subject to the approval of the
Company’s stockholders if it would be considered a “repricing” under the rules of any stock
exchange or market quotation

15

 

system on which the Common Stock is listed. If this provision creates adverse accounting
consequences for the Company, it shall be considered void and of no further effect.

          12.5 Forfeiture of Awards Upon Violation of Restrictive Covenants. This Section 12.5 shall apply
to all Awards granted under this Plan except to the extent that the applicable Award Agreement
provides otherwise. Notwithstanding any provision in this Plan to the contrary, in any instance
where the rights of the Holder of an Award granted under the Plan extend past the date of
termination of the Holder’s employment, all of such rights shall immediately and automatically
terminate and be forfeited if, in the determination of the Committee, the Holder at any time during
a twenty-four (24)-month period following his or her termination of employment, directly or
indirectly, either (a) personally or (b) as an employee, agent, partner, stockholder, officer or
director of, consultant to, or otherwise of any entity or person engaged in any business in which
the Company or any of its Subsidiaries is engaged, or is actively proposing to engage at the time
of such termination of employment, engages in conduct that breaches his or her duty of loyalty to
the Company or any of its Subsidiaries or that is in material competition with the Company or any
of its Subsidiaries or is materially injurious to the Company or any of its Subsidiaries,
monetarily or otherwise, which conduct shall include, but not be limited to: (i) disclosing or
using any confidential information pertaining to the Company or any of its subsidiaries; (ii) any
attempt, directly or indirectly, to induce any employee of the Company or any of its Subsidiaries
to be employed or perform services elsewhere; or (iii) any attempt, directly or indirectly, to
solicit the trade of any customer or supplier or prospective customer or supplier of the Company or
any or its Subsidiaries; or (iv) disparaging the Company or any of its Subsidiaries or any of their
respective officers or directors. The determination of whether any conduct, action or failure to
act falls within the scope of activities contemplated by this Section shall be made by the
Committee, in its discretion, and shall be final and binding upon the holder. A determination that
any particular conduct, action or failure falls outside the scope of activities contemplated by
this Section shall not imply that, or be determinative of whether, such conduct, action or failure
is otherwise lawful or appropriate. For purposes of this paragraph, an Holder shall not be deemed
to be a stockholder of a competing entity if the Holder’s record and beneficial ownership of equity
securities of such entity amounts to not more than one percent (1%) of the outstanding equity
securities of any company subject to the periodic and other reporting requirements of the Exchange
Act. In the event the existence of any circumstance which would trigger the forfeiture of an Award
pursuant to this Section 12.5 but for the fact that such Award has previously been converted into
or exercised for other securities of the Company (e.g., upon the exercise of Options), or converted
into cash or other property (e.g., upon the sale by or for the account of the Holder of Common
Stock acquired by him or her upon the exercise of Options), whether before or after the termination
of employment, then, in such event, such securities, or cash or other property, as the case may be,
shall be deemed to be held in trust for the Company and shall be promptly paid over to the Company
upon demand (net of any amounts that may have been theretofore actually paid by the Holder to the
Company in respect thereof (e.g., as the cash exercise price of an Option). By virtue of his or
her acceptance of the Award under the Plan, the Holder shall be irrevocably deemed to have agreed
to be bound by the provisions of this Section 12.5. The Company shall be entitled to injunctive
relief, in addition to any other remedies that it may have, in the event of any breach by the
Holder of this Section 12.5.

16

 

          12.6 Limitation on Transfer. Except as may be provided in the applicable Award Agreement, and
subject to the provisions of Section 5.1(e) (with regard to Options) and Section 7.2 (with regard
to Restricted Stock Awards), an Holder’s rights and interest under the Plan may not be assigned or
transferred other than by will or the laws of descent and distribution and, during the lifetime of
a Participant, only the Participant personally (or the Participant’s personal representative) may
exercise rights under the Plan. The Holder’s designated beneficiary may exercise the Holder’s
rights to the extent they are exercisable under the Plan following the death of the Holder.

ARTICLE 13. WITHHOLDING OF TAXES AND MISCELLANEOUS PROVISIONS.

          13.1 General. To the extent required by applicable federal, state, local or foreign law, an Holder
or his or her successor shall make arrangements satisfactory to the Company for the satisfaction of
any withholding tax obligations that arise in connection with the Plan. The Company shall not be
required to issue any Common Stock or make any cash payment under the Plan until such obligations
are satisfied.

          13.2 Share Withholding. The Committee may permit an Holder to satisfy all or part of his or her
minimum withholding or income tax obligations by having the Company withhold all or a portion of
any Common Stock that otherwise would be issued to him or her or by delivering (or being deemed to
have delivered) all or a portion of any Common Stock that he or she previously acquired. Such
Common Stock shall be valued at its Fair Market Value as of the date when taxes otherwise would be
withheld in cash.

          13.3 Common Stock Certificates. Notwithstanding anything to the contrary contained in the Plan,
whenever certificates representing shares of Common Stock subject to an Award are required to be
delivered pursuant to the terms of the Plan, the Company may in lieu of such delivery requirement
comply with the provisions of Section 607.0626 of the Florida Business Corporation Act. All
certificates for shares of Common Stock delivered under the Plan shall be subject to such
stop-transfer orders and other restrictions as the Committee may deem advisable under the rules,
regulations, and other requirements of the Securities and Exchange Commission, any stock exchange
upon which the Common Stock is then listed, any applicable Federal or state securities law, and any
applicable corporate law, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

          13.4 Unfunded Status of Plan. The Plan is intended to constitute an “unfunded” plan for incentive
compensation. With respect to any payments not yet made to an Holder by the Company, nothing
contained herein shall give any such Holder any rights that are greater than those of a general
creditor of the Company. However, the Company may, in its discretion, establish one or more
vehicles for payment of its obligations under this Plan, including a trust, known as a “rabbi
trust,” for use in funding the benefits under the Plan with a trustee to be selected by the Company
in accordance with a trust agreement meeting the requirements of Rev. Proc. 92-64, as it may be
amended or supplemented in the future.

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ARTICLE 14. FUTURE OF THE PLAN.

          14.1 Term of the Plan. The Plan shall remain in effect until it is terminated under Section 14.2,
except that no Awards shall be granted after August 27, 2010.

          14.2 Amendment or Termination. The Board may, at any time and for any reason, amend or terminate
the Plan. An amendment of the Plan shall be subject to the approval of the Company’s stockholders
only (a) if the amendment increases the number of shares of Common Stock which are available
pursuant to the Plan (except as provided in Article 3), (b) to the extent required by applicable
laws, regulations or rules (including rules of the applicable stock exchange or market quotation
system on which the Common Stock is listed), or (c) as to the extent necessary to maintain
compliance with Section 162(m) of the Code (or any successor to such Section). No Awards shall be
granted under the Plan after the termination thereof. The termination of the Plan, or any
amendment thereof, shall not affect any Award previously granted under the Plan.

ARTICLE 15. DEFINITIONS.

          15.1 “Affiliate” means any entity other than a Subsidiary, if the Company and/or one or more
Subsidiaries own not less than 80% of such entity.

          15.2 “Award” means any award of an Option, Stock Appreciation Rights, Restricted Stock,
Performance Award, Stock Unit or short-term cash incentive Award under the Plan.

          15.3 “Award Agreement” means a written agreement between the Company and an Holder or a
written acknowledgment from the Company to an Holder specifically setting forth the terms and
conditions of an Award granted under the Plan.

          15.4 “Award Period” means, with respect to an Award, the period of time set forth in the Award
Agreement during which specified target performance goals must be achieved or other conditions set
forth in the Award Agreement must be satisfied.

          15.5 “Board” means the Company’s Board of Directors, as constituted from time to time.

          15.6 “Change in Control” means the occurrence of any of the following:

          (a) The consummation of any of the following transactions: (i) any merger, recapitalization or
other business combination of the Company with or into another corporation, or an acquisition of
securities or assets by the Company, pursuant to which the Company is not the continuing or
surviving corporation or pursuant to which shares of the Common Stock would be converted into cash,
securities of another corporation or other property, other than a transaction in which the holders
of Common Stock immediately prior to such transaction (including any preliminary or other
transactions relating to such transaction) will continue to own at least 50% of the total voting
power of the then-outstanding securities of the surviving or

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continuing corporation immediately after such transaction, (ii) any sale, lease, exchange, or
other transfer (in one transaction or a series of related transactions) of all, or substantially
all, of the assets of the Company, or (iii) the liquidation or dissolution of the Company, except
in connection with the voluntary or involuntary declaration of bankruptcy or insolvency under
applicable Federal and/or state law; or

          (b) A transaction in which any person (as such term is defined in Sections 13(d)(3) and
14(d)(2) of the Exchange Act), corporation or other entity (other than the Company, an Affiliate of
the Company, or any profit-sharing, employee ownership or other employee benefit plan or similar
plan sponsored by the Company or any of its Subsidiaries, or any trustee of or fiduciary with
respect to any such plan when acting in such capacity, or any group comprised solely of such
entities): (i) shall purchase any Common Stock (or securities convertible into Common Stock)
representing at least 40% of the total voting power of the then-outstanding securities of the
Company for cash, securities or any other consideration pursuant to a tender offer or exchange
offer, without the prior consent of the Board, or (ii) shall become the “beneficial owner” (as such
term is defined in Rule 13d-3 under the Exchange Act), directly or indirectly (in one transaction
or a series of transactions), of securities of the Company representing 50% or more of the total
voting power of the then-outstanding securities of the Company ordinarily (and apart from the
rights accruing under special circumstances) having the right to vote in the election of directors;
or

          (c) If, during any period of two (2) consecutive years, individuals who at the beginning of
such period constituted the entire Board and any new director whose election by the Board, or
nomination for election by the Company’s stockholders was approved by a vote of at least a majority
of the directors then still in office who either were directors at the beginning of the period or
whose election or nomination for election by the stockholders was previously so approved, cease for
any reason to constitute a majority thereof.

          15.7 “Code” means the Internal Revenue Code of 1986, as amended.

          15.8 “Committee” means the Compensation Committee of the Board, as further described in Article 2.

          15.9 “Common Stock” means the common stock, par value $0.01 per share, of the Company.

          15.10 “Company” means Artesyn Technologies, Inc., a Florida corporation, and its successors.

          15.11 “Consultant” means the consultants, advisors and independent contractors retained from
time to time by the Company and who are not otherwise deemed to be an Employee. Service as a
Consultant shall be considered employment for all purposes of the Plan other than Section 4.2.

          15.12 “Employee” means a common-law employee of the Company, a Parent or a Subsidiary.

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          15.13 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          15.14 “Exercise Price” means the amount for which one share of Common Stock may be purchased upon
exercise of such Option, as specified in the applicable Award Agreement.

          15.15 “Fair Market Value” means, as of the applicable date determined under the Plan terms or
otherwise in the discretion of the Committee, the opening, closing, actual, high, low or average
selling price of Common Stock, as reported on the composite tape or by NASDAQ/NMS System
Statistics, as the case may be. If an applicable price of Common Stock cannot reasonably be
determined as provided in the preceding sentence, the Fair Market Value of Common Stock shall be
determined by the Committee in good faith on such basis as it deems appropriate. The determination
of Fair Market Value by the Committee shall be conclusive and binding on all persons.

          15.16 “Holder” means an Employee Consultant of the Company, a Parent or a Subsidiary who has
received an Award under the Plan.

          15.17 “ISO” means an incentive stock option described in Section 422(b) of the Code.

          15.18 “NSO” means a stock option not described in Sections 422 or 423 of the Code.

          15.19 “Option” means an ISO or NSO granted under the Plan and entitling the holder to purchase
Common Stock.

          15.20 “Outside Director” means a member of the Board who is not an Employee.

          15.21 “Parent” means any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, if each of the corporations other than the Company owns stock
possessing 80% or more of the total combined voting power of all classes of stock in one or the
other corporations in such chain. A corporation that attains the status of a parent on a date
after the adoption of the Plan shall be considered a parent commencing as of such date.

          15.22 “Performance Awards” means Awards granted in accordance with Article 8.

          15.23 “Performance Goals” means one or more of the following metrics: operating income,
operating profit (earnings from continuing operations before interest and taxes), return on net
assets, earnings before taxes, depreciation and amortization, operating profit (earnings before
depreciation and amortization), earnings per share, return on investment or working capital, return
on stockholders’ equity, economic value added (the amount, if any, by

20

 

which net operating profit after tax exceeds a reference cost of capital) and sales, any one
of which may be measured with respect to the Company or any one or more of its Subsidiaries and
either in absolute terms or as compared to another company or companies, and quantifiable,
objective measures of individual performance relevant to the particular individual’s job
responsibilities.

          15.24 “Plan” means this Artesyn Technologies, Inc. 2000 Performance Equity Plan, as amended
and restated effective March 5, 2004, and as further amended from time to time.

          15.25 “Restricted Stock” means Common Stock awarded upon the terms and subject to the restrictions
set forth in Article 7.

          15.26 “Restricted Stock Units” means Stock Units awarded upon the terms and subject to the
restrictions set forth in Section 9.3(b).

          15.27 “Retirement” means the Holder’s termination of employment at or after attaining age 65 or
early or normal retirement under a pension plan or arrangement of the Company, a Parent or a
Subsidiary in which the Holder participates.

          15.28 “Rule 16b-3” means Rule 16b-3 promulgated by the Securities and Exchange Commission
under Section 16 of the Exchange Act, as the same may be amended from time to time, and any
successor rule.

          15.29 “Stock Appreciation Rights” means awards granted in accordance with Article 5.

          15.30 “Stock Unit” means a unit of value, equal at any relevant time to the Fair Market Value
of a share of Common Stock, established by the Committee as a means of measuring the value of an
Holder’s Stock Unit Account, and shall include Restricted Stock Units.

          15.31 “Stock Unit Account” means the bookkeeping account maintained by the Committee on behalf
of each Holder who is credited with Stock Units and dividend equivalents thereon pursuant to
Section 9.3.

          15.32 “Stock Option Gain” means, with respect to the exercise of a NSO (whether an option
granted under this Plan or any other plan sponsored by the Company), the number of shares of Common
Stock issuable with respect to such exercise that exceed the number of shares of Common Stock
delivered to the Company (or deemed delivered to the Company) as payment of the exercise price for
such stock option.

          15.33 “Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company, if each of the corporations other than the last
corporation in the unbroken chain owns stock possessing 80% or more of the total combined voting
power of all classes of stock in one or the other corporations in such chain. A

21

 

corporation that
attains the status of a subsidiary on a date after the adoption of the Plan shall be
considered a subsidiary commencing as of such date.

22

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