Document:

directorplan.htm

    

    

    

    

    

    

    

    ROPER
INDUSTRIES, INC.

    DIRECTOR
COMPENSATION PLAN

    

    

    

    

    

    

    

    

    

    
      
         

      

      
         

         

      

      
         

      

    

    

    ROPER
INDUSTRIES, INC.

    DIRECTOR
COMPENSATION PLAN

    

    TABLE
OF CONTENTS

     

     

     

    
      
        
          
            	
                      ARTICLE
      1

                  	 	 PURPOSE 	
                     1

                  
	
                      1.1

                  	 	 Background 	 1
	
                      1.2

                  	 	 Purpose 	 1
	
                     1.3

                  	 	 Eligibility 	 1
	
                     ARTICLE
2

                  	 	 DEFINITIONS	 1
	
                     2.1

                  	 	 Definitions 	 1
	
                     ARTICLE
3

                  	 	 ADMINISTRATION	 3
	
                     3.1

                  	 	 Administration 	 3
	
                     3.2

                  	 	 Reliance 	 3
	
                     3.3

                  	 	 Indemnification	 4
	
                     ARTICLE
4

                  	 	 SHARES	 4
	
                     4.1

                  	 	 Source of
      Shares for the Plan	 4
	
                     ARTICLE
5

                  	 	 CASH
      COMPENSATION	 4
	
                     5.1

                  	 	 Basic
      Annual Cash Retainer 	 4
	
                     5.2

                  	 	 Supplemental
      Annual Cash Retainer 	 5
	
                     5.3

                  	 	 Meeting
      Fees	 5
	
                     5.4

                  	 	 Travel
      Expense Reimbursement 	 5
	
                     5.5

                  	 	 Deferral
      of Cash Compensation 	 5
	
                     ARTICLE
6

                  	 	 EQUITY
      COMPENSATION	 6
	
                     6.1

                  	 	 Equity
      Awards 	 6
	
                     6.2

                  	 	 Restricted
      Stock Units 	 6
	

                    6.3

                  	 	 Award
      Certificates 	 9
	

                    6.4

                  	 	 Adjustments	 9
	

                    6.5

                  	 	

                    Tax
      Matters 

                  	 9
	
                     ARTICLE
7

                  	 	 AMENDMENT,
      MODIFICATION AND TERMINATION	 9
	

                    7.1

                  	 	

                    Amendment,
      Modification and Termination 

                  	 9
	
                     ARTICLE
8

                  	 	 GENERAL
      PROVISIONS	 9
	

                    8.1

                  	 	

                    Adjustments 

                  	 9
	

                    8.2

                  	 	

                    Duration
      of the Plan 

                  	 10
	

                    8.3

                  	 	

                    Expenses
      of the Plan 

                  	 10
	

                    8.4

                  	 	

                    Effective
      Date 

                  	 10
	 	 	 SCHEDULE I – DIRECTOR
      COMPENSATION SCHEDULE	 
	 	 	 SCHEDULE II –RSU
      DEFERRAL ELECTION FORM	 
	 	 	 SCHEDULE III – FORMS OF
      AWARD CERTIFICATES	 

          

        

      

    

     

    
 

    
      
         

      

      
         

         

      

      
         

      

    

    ROPER
INDUSTRIES, INC.

    DIRECTOR
COMPENSATION PLAN

    

    

    ARTICLE
1

    PURPOSE

     

    1.1.           BACKGROUND. This plan is adopted to
formalize the compensation for non-employee directors of the
Company.  The Committee initially adopted the Roper Industries, Inc.
Director Compensation Plan on December 11, 2006, which became effective on that
date, and was amended in August 2008 (the “Prior
Plan”).  The Prior Plan is being amended and restated by the
adoption of this Director Compensation Plan (the “Plan”).

     

     

    1.2.           PURPOSE. The purpose of the Plan is
to attract, retain and compensate highly-qualified individuals who are not
employees of Roper Industries, Inc. or any of its subsidiaries or affiliates for
service as members of the Board by providing them with competitive compensation
and an ownership interest in the Stock of the Company. The Company intends that
the Plan will benefit the Company and its shareholders by allowing Non-Employee
Directors to have a personal financial stake in the Company through an ownership
interest in the Stock and will closely associate the interests of Non-Employee
Directors with that of the Company’s shareholders.

     

     

    1.3.           ELIGIBILITY.  Non-Employee
Directors of the Company who are Eligible Participants, as defined below, shall
automatically be participants in the Plan.

     

    

    ARTICLE
2

    DEFINITIONS

     

    2.1           DEFINITIONS.  Capitalized
terms used herein and not otherwise defined shall have the meanings given such
terms in the Incentive Plan.  Unless the context clearly indicates
otherwise, the following terms shall have the following meanings:

     

     

    (a)           “Base
Annual Cash Retainer” means the annual cash retainer (excluding Meeting Fees and
expenses) payable by the Company to a Non-Employee Director pursuant to Section
5.1 hereof for service as a director of the Company (i.e., excluding any
Supplemental Annual Cash Retainer), as such amount may be changed from time to
time.

     

     

    (b)           “Cash
Dividend Equivalents” has the meaning set forth in Section 6.2(e) of the
Plan.

     

     

    (c)           “Deferral
Election Deadline” has the meaning set forth in Section 6.2(d) of the
Plan.

     

     

    (d)           “Deferred
Compensation Plan” means the Roper Industries, Inc. Non-Qualified Retirement
Plan, as amended and restated as of January 1, 2009, or any subsequent
nonqualified deferred compensation plan in which Non-Employee Directors are
permitted to participate and that is designated by the Committee as the Deferred
Compensation Plan for purposes of this Plan.

     

     

    (e)           “Deferred
RSU Conversion Date” has the meaning set forth in Section 6.2(d) of the
Plan.

     

     

    (f)           "Effective
Date" of the Plan has the meaning set forth in Section 8.4 of the
Plan.

     

     

    (g)           “Eligible
Participant” means any person who is a Non-Employee Director on the Effective
Date or becomes a Non-Employee Director while this Plan is in effect; except
that during any period a director is prohibited from participating in the Plan
by his or her employer or otherwise waives participation in the Plan, such
director shall not be an Eligible Participant.

     

     

    (h)           “Equity
Award” means stock options, restricted stock, restricted stock units, stock
appreciation rights, or other awards based on or derived from the Stock which
are authorized under the Incentive Plan for award to Non-Employee
Directors.

     

     

    (i)           “Incentive
Plan” means the Roper Industries, Inc. 2006 Incentive Plan, or any subsequent
equity compensation plan approved by the shareholders of the Company and
designated by the Committee as the Incentive Plan for purposes of this
Plan.

     

     

    (j)           “Meeting
Fees” has the meaning set forth in Section 5.3 of the Plan.

     

     

    (k)           “Non-Employee
Director” means a director of the Company who is not an employee of the Company
or any of its subsidiaries.

     

     

    (l)           “Plan”
means this Roper Industries, Inc. Director Compensation Plan, as amended from
time to time.

     

     

    (m)           “Plan
Year(s)” means the approximate twelve-month periods between annual meetings of
the shareholders of the Company, which, for purposes of the Plan, are the
periods for which annual retainers are earned.

     

     

    (n)           “Restricted
Stock Unit” or “RSU” has the meaning assigned such term in the Incentive Plan.
The terms of Restricted Stock Unit awards granted under the Plan are described
in Article 6 of the Plan.

     

     

    (o)           “RSU
Conversion Date Election Form” has the meaning set forth in Section 6.2(d) of
the Plan.

     

     

    (p)           “Secretary”
means the Corporate Secretary of the Company.

     

     

    (q)           “Separation
from Service” means separation from service for the Company and its Affiliates
in all capacities, within the meaning of Section 409A of the Code and any
regulations, revenue procedures or revenue rulings applicable to such
law.

     

     

    (r)           “Supplemental
Annual Cash Retainer” means the annual cash retainer (excluding Meeting Fees and
expenses) payable by the Company to a Non-Employee Director pursuant to Section
5.2 hereof, as such amount may be changed from time to time.

     

     

    (s)           “Total
Annual Retainer” for any given Non-Employee Director means the Basic Annual Cash
Retainer and any Supplemental Annual Cash Retainer to which he or she is
entitled under the Plan.

     

     

    (t)           “Vesting
Date” has the meaning described in Section 6.2(b).

     

    

    ARTICLE
3

    ADMINISTRATION

     

    3.1.           ADMINISTRATION.  The Plan shall
be administered by the Board or the Committee.  Subject to the
provisions of the Plan, the Board or the Committee shall be authorized to
interpret the Plan, to establish, amend and rescind any rules and regulations
relating to the Plan, and to make all other determinations necessary or
advisable for the administration of the Plan.  The Board’s or the
Committee’s interpretation of the Plan, and all actions taken and determinations
made by the Board or the Committee pursuant to the powers vested in it
hereunder, shall be conclusive and binding upon all parties concerned including
the Company, its shareholders and persons granted awards under the
Plan.  The Board or the Committee may appoint a plan administrator to
carry out the ministerial functions of the Plan, but the administrator shall
have no other authority or powers of the Board or the Committee.

     

     

    3.2.           RELIANCE.  In
administering the Plan, the Board or the Committee may rely upon any information
furnished by the Company, its public accountants and other
experts.  No individual will have personal liability by reason of
anything done or omitted to be done by the Company or the Board or the Committee
in connection with the Plan. This limitation of liability shall not be exclusive
of any other limitation of liability to which any such person may be entitled
under the Company’s certificate of incorporation or otherwise.

     

     

    3.3.           INDEMNIFICATION.  Each
person who is or has been a member of the Committee or who otherwise
participates in the administration or operation of the Plan shall be indemnified
by the Company against, and held harmless from, any loss, cost, liability or
expense that may be imposed upon or incurred by him or her in connection with or
resulting from any claim, action, suit or proceeding in which such person may be
involved by reason of any action taken or failure to act under the Plan and
shall be fully reimbursed by the Company for any and all amounts paid by such
person in satisfaction of judgment against him or her in any such action, suit
or proceeding, provided he or she will give the Company an opportunity, by
written notice to the Board, to defend the same at the Company’s own expense
before he or she undertakes to defend it on his or her own
behalf.  This right of indemnification shall not be exclusive of any
other rights of indemnification to which any such person may be entitled under
the Company’s certificate of incorporation, bylaws, contract or Delaware
law.

     

    

    ARTICLE
4

    SHARES

     

    4.1.           SOURCE OF SHARES FOR THE
PLAN.  Equity Awards that may be
issued pursuant to the Plan shall be issued under the Incentive Plan, subject to
all of the terms and conditions of the Incentive Plan.  The terms
contained in the Incentive Plan are incorporated into and made a part of this
Plan with respect to Equity Awards granted pursuant hereto, and any such awards
shall be governed by and construed in accordance with the Incentive
Plan.  In the event of any actual or alleged conflict between the
provisions of the Incentive Plan and the provisions of this Plan, the provisions
of the Incentive Plan shall be controlling and determinative.  This
Plan does not constitute a separate source of shares for the grant of the equity
awards described herein.

     

    

    ARTICLE
5

    CASH
COMPENSATION

     

    5.1.           BASIC ANNUAL CASH
RETAINER. Each
Eligible Participant shall be paid a Base Annual Cash Retainer for service as a
director during each Plan Year.  The amount of the Base Annual Cash
Retainer shall be established from time to time by the Board or the
Committee.  The amount of the Basic Annual Cash Retainer is set forth
in Schedule I.  Unless deferred pursuant to Section 5.5, the Base
Annual Cash Retainer shall be payable in approximately equal quarterly
installments in advance, beginning on the date of the annual shareholders
meeting.

     

     

    A prorata
Base Annual Cash Retainer will be paid to any person who becomes an Eligible
Participant on a date other than the beginning of a Plan Year, based on the
number of full months he or she serves as a Non-Employee Director during the
Plan Year.  Unless deferred pursuant to Section 5.5, payment of such
prorated Base Annual Cash Retainer shall begin on the date that the person first
becomes an Eligible Participant, and shall resume on a quarterly basis
thereafter.

     

    5.2.           SUPPLEMENTAL ANNUAL CASH
RETAINER.
Certain Eligible Participants shall be paid a Supplemental Annual Cash
Retainer for service as chair of a committee of the Board during a Plan Year,
payable at the same times as installments of the Base Annual Cash Retainer are
paid (including any deferred payment date pursuant to Section 5.5). The amount
and recipients of the Supplemental Annual Cash Retainer shall be established
from time to time by the Board or the Committee and shall be set forth in
Schedule I, as amended from time to time.

     

    A prorata
Supplemental Annual Cash Retainer will be paid to any Eligible Participant who
is elected by the Board to a position eligible for a Supplemental Annual
Retainer, on a date other than the beginning of a Plan Year, based on the number
of full months he or she serves in such position during the Plan
Year.

     

     

    5.3.           MEETING FEES. Each Non-Employee Director
shall be paid meeting fees for attending meetings of the Board or its committees
(“Meeting
Fees”). The amount of the Meeting Fees shall be established from time to
time by the Board or the Committee and shall be set forth in Schedule I, as
amended from time to time.  If a Non-Employee Director attends a Board
meeting and a committee meeting on a single day, he or she shall only receive a
Meeting Fee for the Board meeting attended.  For purposes of this
provision, casual or unscheduled conferences among directors shall not
constitute an official meeting.  Unless deferred pursuant to Section
5.5, Meeting Fees shall be payable on the date of the applicable meeting to
which they relate.

     

     

    5.4.           TRAVEL EXPENSE
REIMBURSEMENT.  All Eligible
Participants shall be reimbursed for reasonable travel expenses (including
spouse’s expenses to attend events to which spouses are invited) in connection
with attendance at meetings of the Board and its committees, or other Company
functions at which the Chief Executive Officer or Chair of the Board requests
the Non-Employee Director to participate.

     

     

    5.5           DEFERAL OF CASH
COMPENSATION.  An Eligible Participant may elect to defer some
or all of his or her Total Annual Retainer, Meeting Fees and/or Cash Dividend
Equivalents pursuant to the terms of the Deferred Compensation
Plan.  Any such deferrals shall be subject to the election timing and
distributions rules set forth in the Deferred Compensation Plan.

     

    

    ARTICLE
6

    EQUITY
COMPENSATION

     

    6.1.           EQUITY AWARDS.  Under the Prior
Plan, Eligible Participants were granted annual awards of Restricted Stock
pursuant to the Incentive Plan.  The Committee is authorized to amend
this Plan from time to award other types of Equity Awards.  Beginning
with Plan Year 2009, until otherwise determined by the Committee, Equity Awards
shall be make hereunder in the form of Restricted Stock Units (“RSUs”) as provided
hereafter in this Article 6.

     

     

    6.2           RESTRICTED STOCK
UNITS  Subject to share availability under the Incentive Plan,
each Eligible Participant shall receive an award of RSUs on the day following
the Annual Meeting of Shareholders held in that year (beginning with the 2009
Annual Meeting of Shareholders); provided, however, the date of grant of any
prorata award shall be made on or as soon as practicable after the date that the
grantee first becomes an Eligible Participant (“Annual
RSUs”).  Annual RSUs shall have the following terms and
conditions:

     

     

    (a)           Number of Annual
RSUs.  The number of Annual RSUs to be granted shall be
established from time to time by the Board or the Committee and shall be set
forth in Schedule I, as amended from time to time.  A prorata Annual
RSU award will be granted to any person who becomes an Eligible Participant on a
date other than the beginning of a Plan Year, based on the number of full months
he or she serves as an Eligible Participant during the Plan Year, rounded to the
next highest whole share.

     

     

    (b)           Vesting.  The
Annual RSUs shall be credited to a bookkeeping account on behalf of the grantee
on the date of grant and shall vest on the applicable date provided below (the
“Vesting
Date”).  Unless and until provided otherwise by the Board or
the Committee, the Annual RSUs shall vest as to fifty percent (50%) of the RSUs
on the six (6) month anniversary of the date of grant and as to the remaining
fifty percent (50%) on the day prior to the Annual Meeting of Shareholders held
in the year following the date of grant; provided, however, that any prorata
award of Annual RSUs granted to a person who becomes an Eligible Participant on
a date other than the beginning of a Plan Year shall vest as to fifty percent
(50%) of the RSUs on earlier of the six (6) month anniversary of the date of
grant or the day prior to the first Annual Meeting of Shareholders after the
date of grant, and as to the remaining fifty percent (50%) on the day prior to
the first Annual Meeting of Shareholders after the date of grant.

     

     

    Notwithstanding
the foregoing, the Annual RSUs shall become fully vested on the earlier
occurrence of (i) the termination of grantee’s service as a director of the
Company due to death or Disability; or (ii) the occurrence of a Change in
Control.  If the grantee’s service as a director of the Company
(whether or not in a Non-Employee Director capacity) terminates other than as
described in clause (i) of the foregoing sentence, then the grantee shall
forfeit all of his or her right, title and interest in and to any unvested RSUs
as of the date of such termination from the Board, such RSUs shall be reconveyed
to the Company without further consideration or any act or action by the
grantee, and such RSUs shall not be converted to Stock.

     

     

    (c)           Conversion to
Stock.  Each Annual RSU represents the right to receive one
share of Stock on a date that is on or after the Vesting Date (the “Conversion
Date”).  Unless the grantee has made a timely deferral election
in accordance with Section 6.2(d), the Conversion Date for the Annual RSUs shall
be the Vesting Date.

     

     

    (d)           Deferral of Conversion of
RSUs.  On or before December 31 of each year, or in the case of
a Non-Employee Director becoming an Eligible Participant for the first time,
within thirty (30) days after he or she first becomes an Eligible Participant
(as applicable, the “Deferral Election
Deadline”), each Eligible Participant may, by filing with the Secretary
an election form in such form as the Secretary shall prescribe which shall be
set forth in Schedule II hereto (the “RSU Conversion
Date Election
Form”), elect to defer the conversion of his Annual RSUs to be granted in
the next Plan Year to any of the following dates; provided such date is after
the Vesting Date for the RSUs (the “Deferred RSU Conversion
Date”): (i) the date that the Non-Employee Director incurs a Separation
from Service for any reason, (iii) the earlier of (A) a date certain specified
by the Non-Employee Director, or (B) the date that the Non-Employee Director
incurs a Separation from Service for any reason, or (iii) the earlier of (A) a
date certain specified by the Non-Employee Director, or (B) the fifth
anniversary of the date that the Non-Employee Director incurs a Separation from
Service for any reason.  If an Eligible Participant makes a deferral
election under this Section 6.2(d) for any Plan Year and does not revoke such
election before the Deferral Election Deadline for a subsequent Plan Year, such
election shall remain in effect for each such subsequent Plan Year unless and
until the Eligible Participant shall timely file a new RSU Conversion Date
Election Form with the Secretary for a subsequent Plan Year or shall indicate to
the Secretary in writing before the next Deferral Election Deadline that he or
she desires to revoke any outstanding RSU deferral election with respect to
future Plan Years.  Shares of Stock will be registered on the books of
the Company in the Non-Employee Director’s name as of the Conversion
Date.  Such Shares of Stock will remain in uncertificated, book-entry
form unless the Non-Employee Director requests a stock certificate or
certificates for the Shares.

     

     

    (e)           Dividend
Equivalents.  If and when cash dividends or other cash
distributions are paid with respect to the Stock while the RSUs are outstanding,
the dollar amount such dividends or distributions with respect to the number of
shares of Stock then underlying the RSUs shall be payable to the holder of the
RSUs (“Cash Dividend
Equivalents”).  Unless deferred pursuant to Section 5.5, Cash
Dividend Equivalents will be payable to the holder of the RSUs as of the date
such dividends or distributions were payable to shareholders.  If and
when any such dividends or distributions are paid in shares of Stock, the Fair
Market Value of such shares of Stock shall be converted into additional RSUs,
which shall be subject to the same forfeiture restrictions, restrictions on
transferability, and conversion terms as apply to the RSUs with respect to which
they were paid.

     

     

    (f)           Other Shareholder
Rights.  Non-Employee Directors shall not have voting or any
other rights as a shareholder of the Company with respect to the
RSUs.  Upon conversion of the RSUs into shares of Stock at the
Conversion Date or any applicable Deferred RSU Conversion Date, the Non-Employee
Director will obtain full voting and other rights as a shareholder of the
Company.

     

     

    (g)           Other Plan
Conditions.  To the extent not specified herein, the Annual
RSUs granted hereunder shall be subject to the terms and conditions of the
Incentive Plan.

     

     

    6.3.           AWARD
CERTIFICATES.  All Equity
Awards granted pursuant to this Plan shall be evidenced by a written award
certificate, which shall include such provisions, not inconsistent with the Plan
or the Incentive Plan, as may be specified by the Committee.  The form
of award certificates shall be set forth on Schedule III hereof, as amended from
time to time.

     

     

    6.4.           ADJUSTMENTS. The adjustment provisions
of the Incentive Plan shall apply with respect to awards of Equity Awards
granted pursuant to this Plan.

     

     

    6.5.           TAX MATTERS.  Article 6 of the
Plan is intended to be a nonqualified, unfunded plan of deferred compensation
under the Code.  A participant shall have the status of a general
unsecured creditor of the Company with respect to his or her right to receive
Stock or other payment upon settlement of the Equity Award granted under the
Plan.  None of the benefits, payments, proceeds or distributions under
Article 6 of the Plan shall be subject to the claim of any creditor of any
participant or beneficiary, or to any legal process by any creditor of such
participant or beneficiary, and none of them shall have any right to alienate,
commute, anticipate or assign any of the benefits, payments, proceeds or
distributions under Article 6 of the Plan except to the extent expressly
provided herein to the contrary.

     

    

    ARTICLE
7

    AMENDMENT,
MODIFICATION AND TERMINATION

     

    7.1.           AMENDMENT, MODIFICATION AND
TERMINATION. The
Board or the Committee may, at any time and from time to time, amend, modify or
terminate the Plan without shareholder approval; provided, however, that if an
amendment to the Plan would, in the reasonable opinion of the Board or the
Committee, require shareholder approval under applicable laws, policies or
regulations or the applicable listing or other requirements of a securities
exchange on which the Stock is listed or traded, then such amendment shall be
subject to shareholder approval; and provided further, that the Board or the
Committee may condition any other amendment or modification on the approval of
shareholders of the Company for any reason. Modification of Equity Awards
granted under this Plan shall be subject to the provisions of the Incentive
Plan.

     

    

    ARTICLE
8

    GENERAL
PROVISIONS

     

    8.1           ADJUSTMENTS..  The adjustment
provisions of the Incentive Plan shall apply with respect to awards of
Restricted Stock or other equity awards outstanding or to be granted pursuant to
this Plan.

     

     

    8.2           DURATION OF THE
PLAN..  The Plan shall
remain in effect until terminated by the Board or the Committee.

     

     

    8.3           EXPENSES OF THE
PLAN.  The expenses of administering the Plan shall be borne by
the Company.

     

     

    8.4           EFFECTIVE
DATE.  The Plan was originally adopted by the Committee on
December 11, 2006, and became effective on that date (the “Effective
Date”).

     

     

    The
foregoing is hereby acknowledged as being the Roper Industries, Inc. Amended and
Restated Director Compensation Plan adopted by the Committee on December 29,
2008.

     

     

    ROPER
INDUSTRIES, INC.

     

    

    /s/ Brian D.
Jellison

    By:           Brian
D. Jellison

    Chairman
of the Board, President and Chief Executive Officer

     

    

     

    
      
         

      

      
         

         

      

      
         

      

    

    

     

    SCHEDULE
I

     

    DIRECTOR
COMPENSATION SCHEDULE

    

    The
following shall become effective as of January 1, 2009

    

    Basic Annual Cash Retainer (all
Directors): $42,500

    

    Supplemental
Annual Cash Retainers:

    Chair of
Audit Committee:  $5,000

    Chair of
Compensation Committee:  $5,000

    Chair of
Nominating and Corporate Governance Committee: $5,000

    

    Meeting
Fees:

    Board
meeting, attendance in person: $2,000

    Board
meeting at which minutes are kept, attendance by telephone: $1,000

    

    Committee
meeting, attendance in person: $1,000

    Committee
meeting at which minutes are kept, attendance by telephone: $500

    

    Annual
Award of Restricted Stock Units:

    4,000
shares

    

    

    
      
        
          SI-

          

        

         

      

      
         

         

      

      
         

      

    

    

    SCHEDULE
II

    

    Director
Election

    as
to Conversion Date for Annual Restricted Stock Units (“RSUs”)

    

    The
following constitutes the irrevocable election of the undersigned under the
Roper Industries, Inc. Director Compensation Plan (the “Plan”) with respect to
the undersigned’s Annual RSUs to be received at the annual shareholders meeting
in 2009 and in any future Plan Year for which I have not, before the Deferral
Election Deadline for such Plan Year, either (i) revoked this RSU Conversion
Date Election Form, or (ii) filed a different RSU Conversion Date Election
Form.  Capitalized terms used herein and not otherwise defined have
the meanings assigned such terms in the Plan.

    

    I hereby
elect the following as the Conversion Date for the RSUs that may become vested
[the
Conversion Date is the date upon which the Restricted Stock Units will be
converted to shares of Stock and become taxable to you]:

    

    Indicate a percentage after one or more
of the following (not to exceed 100% in the aggregate):

    

    _____  The
Vesting Date.

    

    _____  The
date of my Separation from Service from the Company for any reason.

    

    _____  The
earlier of (i) the following date: ______________ [insert any
specific future date, but not earlier than one year from the date of
grant], or (ii) the date of my Separation from Service from the Company
for any reason.

    

    _____  The
earlier of (i) the following date: ______________ [insert any
specific future date, but not earlier than one year from the date of
grant], or (ii) the fifth anniversary of the date of my Separation from
Service from the Company for any reason.

    

    Executed this _____ day of December,
2008.

    

    

    [NAME OF
DIRECTOR]

     

    

    

    

    
      
        
          SII-

          

        

         

      

      
         

         

      

      
         

      

    

    

    SCHEDULE
III

    

    Form
of RSU Certificate

    

    RESTRICTED  STOCK  UNIT  AWARD  CERTIFICATE

    for
Non-Employee Directors

    

    Non-transferable

    GRANT
TO

    

    _____________________________

    (“Grantee”)

    

    by Roper
Industries, Inc. (the “Company”) of

    

    [_______]

    restricted
stock units convertible into shares of its common stock, par value $0.01 (the
“Units")

    

    pursuant
to and subject to the provisions of the Roper Industries, Inc. Director
Compensation Plan (the “Director Compensation Plan”), which is operated as a
subplan of the Roper Industries, Inc. Amended and Restated 2006 Incentive Plan
(the “Incentive Plan” and, together with the Directors Compensation Plan, the
“Plans”), and to the terms and conditions set forth on the following
page.  Unless vesting is accelerated in accordance with the Plans, the
Units shall vest (become non-forfeitable) in accordance with the following
schedule:

    

    
      	
              Continuous Service as a Director from Grant Date
      to:

               

            	 
      	
              Percent of Units Vested

            
	
              6-month
      anniversary of the Grant Date

            	 
      	
              50%

               

            
	
              1
      day prior to the next annual meeting

              of
      shareholders of the Company

            	 
      	
              100%

            

    

    

    IN
WITNESS WHEREOF, Roper Industries, Inc. has caused this Certificate to be
executed as of the Grant Date, as indicated below.

    

    ROPER
INDUSTRIES, INC.

    

    By:  _________________________________________

    Its:  Authorized
Officer

    

    Grant
Date:  ________________________________

    
      
        
          Director
RSU Certificate -- Appd. October 26, 2005

        

         

      

      
         

         

      

      
         

      

    

    TERMS
AND CONDITIONS

    

    1. Grant of Units. The
Company hereby grants to the Grantee named on page 1 hereof, subject to the
restrictions and the terms and conditions set forth in the Plans and in this
award certificate (this “Certificate”), the number of restricted stock units
indicated on page 1 hereof (the “Units”) which represent the right to receive an
equal number of Shares of the Company’s Stock on the terms set forth in this
Certificate. Capitalized terms used herein and not otherwise defined shall have
the meanings assigned to such terms in the Plans.

    

    2. Vesting of Units. The
Units have been credited to a bookkeeping account on behalf of Grantee. The
Units will vest and become non-forfeitable on the earliest to occur of the
following (the “Vesting Date”):

    
      	
              (a)

            	
              as
      to the percentages of the Units specified on page 1 hereof, on the dates
      specified on page 1 hereof; provided Grantee is then still a director of
      the Company on such date, or

            

    

    
      	
              (b)

            	
              as
      to all of the Units, upon Grantee’s Separation from Service due to death
      or Disability, or

            

    

    
      	
              (c)

            	
              as
      to all of the Units, upon the occurrence of a Change in
      Control.

            

    

    If
Grantee’s service as a director terminates prior to the Vesting Date for any
reason other than as described in (b) above, Grantee shall forfeit all right,
title and interest in and to the unvested Units as of the date of such
termination, the Units will be reconveyed to the Company without further
consideration or any act or action by Grantee, and the Units will not be
converted to Stock for Grantee.

    

    3. Conversion to Stock.
Unless the Units are forfeited prior to the Vesting Date as provided in
Paragraph 2, the vested Units will be converted to actual shares of Stock on
SELECT ONE BASED ON THE PRE-GRANT ELECTION OF THE DIRECTOR: [the Vesting Date]
[the date of Grantee’s Separation from Service for any reason] [the earlier of
_________, 20__ or the date of Grantee’s Separation from Service for any reason]
[the earlier of _________, 20__ or the fifth anniversary of the date of
Grantee’s Separation from Service for any reason] (the “Conversion Date”).
Shares of Stock will be registered on the books of the Company in Grantee’s name
as of the Conversion Date and will remain in uncertificated, book-entry form
unless Grantee requests a stock certificate or certificates for the
Shares.

    

    4. Dividend Equivalents.
Grantee shall be entitled to receive cash payments with respect to each Unit
equal to any cash dividends and other distributions paid with respect to a share
of Stock, provided that if any such dividends or distributions are paid in
shares of Stock, the Fair Market Value of such shares of Stock shall be
converted into additional restricted stock units, which shall be subject to the
same forfeiture restrictions, restrictions on transferability, and conversion
terms as apply to the Units with respect to which they were paid.

    

    5. Rights as
Shareholder. The Units do not confer to Grantee any rights of a
shareholder of the Company unless and until shares of Stock are in fact
registered in connection with the Units. Grantee shall not have voting or any
other rights as a shareholder of the Company with respect to the Units. Upon
conversion of the Units into shares of Stock, Grantee will obtain full voting
and other rights as a shareholder of the Company.

    

    6. Changes in Capital
Structure. The provisions of Article 15 of the Incentive Plan shall apply
to this award and are incorporated herein by reference. Without limiting the
foregoing, in the event the Stock shall be changed into or exchanged for a
different number or class of shares of stock or securities of the Company or of
another company, whether through reorganization, recapitalization, statutory
share exchange, reclassification, stock split-up, combination of shares, merger
or consolidation, or otherwise, there shall be substituted for each share of
Stock then underlying a Unit subject to this Certificate the number and class of
shares into which each outstanding share of Stock shall be so
exchanged.

    

    7. Restrictions on Transfer and
Pledge. No right or interest of Grantee in the Units may be pledged,
hypothecated or otherwise encumbered to or in favor of any party other than the
Company or an Affiliate, or be subjected to any lien, obligation or liability of
Grantee to any other party other than the Company or an Affiliate. Units are not
assignable or transferable by Grantee other than by will or the laws of descent
and distribution.

    

    8. No Right to Continued
Service. Nothing in this Certificate shall interfere with or limit in any
way the right of the Company to terminate Grantee’s service as a director at any
time, nor confer upon Grantee any right to continue as a director of the
Company.

    

    9. Amendment. The
Committee may amend, modify or terminate this Certificate without approval of
Grantee; provided, however, that such amendment, modification or termination
shall not, without Grantee’s consent, reduce or diminish the value of this Award
determined as if it had been fully vested and settled on the date of such
amendment or termination.

    

    10. Plans Control. The
terms contained in the Plans are incorporated into and made a part of this
Certificate and this Certificate shall be governed by and construed in
accordance with the Plans. In the event of any actual or alleged conflict
between the provisions of the Plans and the provisions of this Certificate, the
provisions of the Plans shall be controlling and determinative. In the event of
any actual or alleged conflict between the provisions of the two Plans, the
provisions of the Incentive Plan shall be controlling and
determinative.

    

    11. Notice. Notices and
communications under this Certificate must be in writing and either personally
delivered or sent by registered or certified United States mail, return receipt
requested, postage prepaid. Notices to the Company must be addressed to Roper
Industries, Inc., 6901 Professional Parkway East, Suite 200, Sarasota, Florida
34240; Attention: Corporate Secretary, or any other address designated by the
Company in a written notice to Grantee. Notices to Grantee will be directed to
the address of Grantee then currently on file with the Company, or at any other
address given by Grantee in a written notice to the Company.

    
      

    

    

    

    
      
        
          SIII-exv10w1

Exhibit 10.1

Employment Agreement

          This Employment Agreement (the “Agreement”) is entered into by and between Scott C.
Stromatt, M.D. (the “Executive”) and Trubion Pharmaceuticals, Inc., a Delaware corporation (the
“Company”) as of March 10, 2009 (the “Effective Date”).

          1. Duties and Scope of Employment. For the term of this Agreement (“Employment”), the Company
agrees to employ the Executive in the position of Senior Vice President and Chief Medical Officer.
The Executive shall report directly to the Company’s Chief Executive Officer. The Executive shall
have such duties, authority and responsibilities that are commensurate with his being a senior
executive officer of the Company. During his Employment, the Executive shall devote substantially
his full business efforts and time to the Company and, so long as such activities do not interfere
with the performance of his responsibilities to the Company under this Agreement, the Executive may
engage in civic and charitable activities and serve on the boards of directors (or managers or
trustees) of civic or charitable organizations and, subject to the consent of the Board, may serve
on the board of directors of corporations or other businesses. The Executive’s primary work place
shall be at the Company’s corporate headquarters in Seattle, Washington.

          2. Cash and Incentive ompensation.

               (a) Salary. The Company shall pay the Executive as compensation for his services a base
salary at a gross annual rate of not less than $315,000.00. Such salary shall be payable in
accordance with the Company’s standard payroll procedures. The annual compensation specified in
this Section 2(a), together with any increases in such compensation that the Company may grant from
time to time, is referred to in this Agreement as “Base Compensation.”

               (b) Incentive Bonuses. The Executive shall be eligible to receive an annual fiscal year
incentive bonus that the Board or Compensation Committee of the Board (the “Committee”) shall
determine and award in its discretion. Such incentive bonus shall be awarded based upon the
achievement of specific milestones that will be determined by the Board and/or the Committee and
confirmed to the Executive no later than ninety (90) days after the start of each fiscal year.
Payment for each year’s bonus actually earned shall be made to the Executive no later than the
fifteenth day of the third month after the later of the end of the calendar year or the Company’s
taxable year in which the bonus payment is no longer subject to a substantial risk of forfeiture
for purposes of Section 409A of the Internal Revenue Code, as amended (“Section 409A”).

               (c) Equity Terms. During the Executive’s Employment, at the discretion of the Committee, the
Executive shall be entitled to participate in the Company’s equity compensation plans, as in effect
from time to time, and the Executive shall be eligible to receive grants of Company equity
(“Compensatory Equity”), as determined by Committee, in its discretion from time to time.

 

 

               (d) Employee Benefits. During the Executive’s Employment, the Executive will be entitled to
participate in the employee benefit plans of general applicability to other employees of the
Company, as in effect from time to time, including, without limitation, the Company’s group
medical, dental, vision, disability, life insurance, director and officer liability insurance and
flexible-spending account plans. The Company reserves the right to cancel or change the benefit
plans and programs it offers to its employees at any time.

               (e) Service Definition. For purposes of Section 3(b) of this Agreement, “Service” shall mean
service by the Executive as an employee, director and/or consultant of the Company (or any
subsidiary or parent or affiliated entity of the Company).

          3. Vacation and Indemnification.

               (a) Vacation. The Executive will be eligible for paid vacation in accordance with the
Company’s vacation policy. Under the Company’s current vacation policy, the Executive is eligible
for three (3) weeks per year of paid vacation and would become eligible for four (4) weeks per year
of paid vacation commencing on the third anniversary of the Executive’s employment with the
Company.

               (b) Indemnification. The Company shall indemnify the Executive to the maximum extent
permitted by applicable law and the Company’s bylaws with respect to the Executive’s Service.
During the Executive’s Employment, the Company shall maintain directors’ and officers’ liability
insurance for the Executive’s benefit on terms and conditions no less favorable than the terms and
conditions generally applicable to the Company’s other senior executives. The Company’s
obligations under this Section 3(b) shall survive termination of the Executive’s Service and also
termination or expiration of this Agreement.

          4. Business Expenses. During his Employment, the Executive shall be authorized to incur
necessary and reasonable travel, entertainment and other business expenses in connection with his
duties hereunder. The Company shall promptly reimburse the Executive for such expenses upon
presentation of appropriate supporting documentation, all in accordance with the Company’s
generally applicable policies.

          5. Term of Employment.

               (a) Employment-at-Will. The Company and the Executive hereby acknowledge that the Executive’s
Employment is at-will. The Company may terminate the Executive’s Employment with or without Cause,
by giving the Executive thirty (30) days’ advance notice in writing. The Executive may terminate
his Employment by giving the Company thirty (30) days’ advance notice in writing. The Executive’s
Employment shall terminate automatically in the event of his death.

               (b) Rights Upon Termination. Upon the termination of the Executive’s Employment for any
reason (including death or Disability (as defined below)), the Executive shall be entitled to the
compensation, benefits and reimbursements described in this Agreement through the effective date of
the termination (the “Termination Date”), and the
Company shall make the following payments to the Executive (or his beneficiary) on his

2

 

Termination Date: (i) all unpaid salary and unpaid vacation accrued through the Termination Date,
(ii) any accrued, unpaid bonuses for any fiscal year of the Company ended prior to the Termination
Date and (iii) any unreimbursed business expenses. The Executive may also be eligible for other
post-Employment payments and benefits as provided in this Agreement or pursuant to other agreements
or plans with the Company. Upon the Termination Date, the Executive shall have no further rights
to receive compensation or benefits from the Company except as set forth in Section 6 and pursuant
to the terms of any benefit plans (including without limitation any equity compensation plans) of
the Company in which the Executive is a participant.

          6. Termination Benefits.

               (a) Severance Pay. If there is an Involuntary Termination (as defined below) of the
Executive’s Employment, then subject to the Executive’s execution, delivery and non-revocation of a
Release (defined below) within the time period described below, following the Executive’s
“separation from service” within the meaning of Section 409A, the Company shall pay the Executive a
single lump sum of cash in an amount equal to the sum of twelve (12) months of the Executive’s then
annual Base Compensation (not giving effect to any reduction in Base Compensation made in
connection with such Involuntary Termination or giving rise to Good Reason). The cash lump sum
amount payable under this Section 6(a) shall be made to the Executive on the first payroll date in
the month following the month containing the Release Deadline. The Executive shall also receive
the benefits provided in Sections 6(b) and 6(c), and all such payments and benefits shall not be
subject to mitigation or offset (except as specified in Section 6(b)). In order to be entitled to
receive the severance described in this Section 6(a) (including the benefits provided in Sections
6(b), 6(c) and, if applicable, 6(d)), the Executive must execute, deliver and not revoke the
Release within forty-five (45) calendar days following the Executive’s separation from service (the
date that is forty-five (45) calendar days following the Executive’s separation from service is the
“Release Deadline”). The Company shall furnish the Release to the Executive on the date of his
Involuntary Termination. The “Release” shall be a general release of all litigation and other
claims by the Executive and on Executive’s behalf in a form satisfactory to the Company.
Notwithstanding the foregoing, if the Executive’s Involuntary Termination occurs in 2008, an amount
of the severance pay otherwise payable under this Section 6(a) in a lump sum equal to the amount
that would have been payable under the Prior Agreement (had it been in effect on the date of such
Involuntary Termination) shall instead be paid in twelve (12) equal monthly installments commencing
on the first payroll date in the month following the month containing the Release Deadline.

               (b) Health Insurance. If the Executive is entitled to receive the severance payment in
Section 6(a), and if the Executive elects to continue his (and his dependents’) health insurance
coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), then the
Company shall pay up to twelve (12) months of the Executive’s monthly premium under COBRA, provided
that the Company’s obligation to pay the monthly premium shall cease at such time as the Executive
commences receiving substantially equivalent health insurance coverage in connection with new
employment and that the Company may require that the Executive substantiate his COBRA coverage.

3

 

               (c) Equity Vesting. If the Executive is entitled to receive the payments in Section 6(a),
then the time-based vesting restrictions shall immediately lapse on an additional number of shares
of Company common stock under all of the Executive’s outstanding Compensatory Equity that is equal
to the number of shares that would have time-vested if the Executive had continued in employment
for twelve (12) additional months following the Termination Date. In addition, the Executive shall
have three (3) months following the Termination Date to exercise any of his outstanding
Compensatory Equity (subject to the original term duration of each equity grant).

               (d) Effect of Change in Control. If there is an Involuntary Termination of the Executive’s
Employment (i) within the period beginning three (3) months before and ending twelve (12) months
after a Change in Control (as defined below) or (ii) more than three (3) months prior to a Change
in Control but in connection with a Change in Control (each, a “Qualifying Change in Control
Termination”), then the vesting restrictions shall immediately lapse on all of the Executive’s
Compensatory Equity provided that the Executive executes, delivers, and does not revoke the
Release as described in Section 6(a). In addition, in the event of a Qualifying Change in Control
Termination, the Executive will be entitled to all benefits described in Sections 6(a) and 6(b) of
this Agreement subject to the same terms and conditions and payment dates described above, except
that (x) the cash payment amount under Section 6(a) shall be an amount equal to the sum of fifteen
(15) months of the Executive’s then annual Base Compensation (not giving effect to any reduction in
Base Compensation made in connection with such Involuntary Termination or giving rise to Good
Reason) and (y) the Company’s payment of monthly COBRA premiums under Section 6(b) shall be for up
to fifteen (15) months. For purposes of the preceding sentence, an Involuntary Termination shall
be deemed to be in connection with a Change in Control if such termination (i) is required by the
merger agreement, purchase agreement or other instrument relating to such Change in Control or (ii)
is made at the express request of the other party (or parties) to the transaction constituting such
Change in Control.

               (e) Parachute Payments. In the event that the payments and benefits provided for in this
Agreement and the payments and/or benefits provided to, or for the benefit of, the Executive under
any other Company plan or agreement (such payments or benefits are hereinafter collectively
referred to as the “Benefits”) (i) constitute “parachute payments” within the meaning of Section
280G of the Internal Revenue Code and (ii) but for this Section 6(e), would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code (the “Excise Tax”), then the
Benefits shall either be:

               (i) delivered in full, or

               (ii) delivered as to such lesser extent which would result in no portion of
such Benefits being subject to the Excise Tax (such reduced amount is hereinafter
referred to as the “Limited Amount”),

whichever of the foregoing amounts, taking into account the applicable federal, state and local
income taxes and the Excise Tax, results in the receipt by the Executive on an after-tax basis, of
the greatest amount of Benefits, notwithstanding that all or some portion of such Benefits may be

4

 

subject to the Excise Tax. If applicable, in order to effectuate the Limited Amount, the Company
shall first reduce those Benefits which are payable in cash and then reduce non-cash payments, in
each case in reverse order beginning with Benefits which are to be paid the farthest in time from
the date of determination that the Benefits will be limited by (e)(ii) above. Any calculations and
determinations required under this Section 6(e) shall be made in writing by the Company’s
independent auditor (the “Accountant”) whose determination shall be conclusive and binding. The
Executive and the Company shall furnish the Accountant such documentation as the Accountant may
reasonably request in order to make a determination. The Company shall pay for all costs that the
Accountant may reasonably incur in connection with performing any calculations contemplated by this
Section 6(e).

               (f) “Change in Control” Definition. For purposes of this Agreement, “Change in Control” shall
mean the occurrence of any of the following events:

          (i) the consummation of a merger or consolidation of the Company with or into
another entity or any other corporate reorganization, if the Company’s stockholders
immediately prior to such merger, consolidation or reorganization cease to directly
or indirectly own immediately after such merger, consolidation or reorganization at
least a majority of the combined voting power of the continuing or surviving
entity’s securities outstanding immediately after such merger, consolidation or
other reorganization;

          (ii) the consummation of the sale, transfer or other disposition of all or
substantially all of the Company’s assets (other than (1) to a corporation or other
entity of which at least a majority of its combined voting power is owned directly
or indirectly by the Company, (2) to a corporation or other entity owned directly or
indirectly by the stockholders of the Company in substantially the same proportions
as their ownership of the common stock of the Company or (3) to a continuing or
surviving entity described in subsection (i) in connection with a merger,
consolidation or corporate reorganization which does not result in a Change in
Control under subsection (i));

          (iii) a change in the composition of the Board, as a result of which fewer than
one-half of the incumbent directors are directors who either (1) had been directors
of the Company on the date twenty-four (24) months prior to the date of the event
that may constitute a Change in Control (the “original directors”) or (2) were
elected, or nominated for election, to the Board with the affirmative votes of at
least a majority of the aggregate of the original directors who were still in office
at the time of the election or nomination and the directors whose election or
nomination was previously so approved;

          (iv) the consummation of any transaction as a result of which any person
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing at least
thirty-five percent (35%) of the total voting power represented by the Company’s
then outstanding voting securities. For purposes of this subsection, the
term “person” shall have the same meaning as when used in sections 13(d)

5

 

and
14(d) of the Exchange Act but shall exclude:

          (1) a trustee or other fiduciary holding securities under an employee
benefit plan of the Company or an affiliate of the Company;

          (2) a corporation or other entity owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as their
ownership of the common stock of the Company;

          (3) the Company; and

          (4) a corporation or other entity of which at least a majority of its
combined voting power is owned directly or indirectly by the Company; or

          (v) a complete winding up, liquidation or dissolution of the Company.

          For purposes of this Section 6(f), a transaction shall not constitute a Change in Control if
its sole purpose is to change the state of the Company’s incorporation or to create a holding
company that will be owned in substantially the same proportions by the persons who held the
Company’s securities immediately before such transactions.

               (g) “Cause” Definition. For all purposes under this Agreement, “Cause” shall mean any of the
following committed by the Executive:

          (i) Willful failure to follow the reasonable and lawful directions of the
Board;

          (ii) Conviction of a felony (or a plea of guilty or nolo contendere by the
Executive to a felony) that materially harms the Company;

          (iii) Acts of fraud, dishonesty or misappropriation committed by the Executive;

          (iv) Willful misconduct by the Executive in the performance of the Executive’s
material duties required by this Agreement; or

          (v) A material breach of this Agreement.

          The foregoing is an exclusive list of the acts or omissions that shall be considered “Cause”
for the termination of the Executive’s Employment by the Company. With respect to the acts or
omissions set forth in clauses (i), (iii), (iv) and (v) above, (x) the Board shall provide the
Executive with thirty (30) days’ advance written notice detailing the basis for the termination of
Employment for Cause, (y) during the 30-day period after the Executive has received such notice,
the Executive shall have an opportunity to cure such alleged Cause events and to present
his case to the full Board (with the assistance of his own counsel) before any termination for
Cause is finalized by a vote of a majority of the Board and (z) the Executive shall continue to

6

 

receive the compensation and benefits provided by this Agreement during the 30-day cure period. In
addition, no act or failure to act of the Executive shall be willful or intentional if performed in
good faith with the reasonable belief that the action or inaction was in the best interest of the
Company.

               (h) “Involuntary Termination” Definition. For all purposes under this Agreement, “Involuntary
Termination” shall mean any of the following: (i) termination of the Executive’s Employment by the
Company without Cause or (ii) the Executive’s resignation of Employment for Good Reason.

               (i) “Good Reason” Definition. For all purposes under this Agreement, “Good Reason” shall mean
any of the following that occurs without the Executive’s prior written consent: (i) a material
diminution in Executive’s authority, duties, or responsibilities, (ii) a material diminution in the
Executive’s Base Compensation, other than any such reduction which is a part of, and generally
consistent with, a general reduction of officer or employee salaries, (iii) any material breach by
the Company of any material provision of this Agreement, or (iv) a refusal by the Executive,
following a request by the Company, to relocate to a facility or location more than forty (40)
miles from the Company’s current location; provided, that (A) the Executive provides notice to the
Company of the existence of the applicable condition described in this Section 6(i) within 90 days
of the initial existence of the condition and the Company fails to remedy the condition within 30
days thereafter and (B) within the sixty (60) day period immediately following such failure
to remedy, the Executive elects to terminate his employment for Good Reason; provided,
however, that none of the foregoing shall constitute Good Reason to the extent that the
Executive has agreed in writing to such material change, reduction, breach or refusal.

               (j) “Disability” Definition. For all purposes under this Agreement, “Disability” shall mean
the Executive’s incapacity due to physical or mental illness to perform his full-time duties with
the Company for a continuous period of three months or an aggregate of six (6) months in any
eighteen (18) month period.

          7. Non-Solicitation, Non-Compete and Non-Disparagement.

               (a) Non-Solicitation. During the period commencing on the date of this Agreement and
continuing until the first anniversary of the Termination Date, the Executive shall not directly or
indirectly, personally or through others, solicit, recruit, or attempt to solicit or recruit any
employee, agent, licensor, content provider, supplier, distributor, customer or partner of the
Company to curtail, cancel or terminate such employment, agency or business relationship that it
has with the Company or its affiliates.

               (b) Non-Compete. During the period commencing on the date of this Agreement and continuing
until the first anniversary of the Termination Date, the Executive shall not directly or
indirectly, personally or through others, own, manage, operate, control, participate in, perform
services for, make any investment in, assist, or otherwise carry on, the Company
business or any business that directly competes with the Company business (other than in the
course of performing duties to Company or any of its affiliates as an employee or other service
provider). Notwithstanding the foregoing, nothing contained in this Section 7(b) shall

7

 

limit or
otherwise affect the ability of the Executive to own not more than 1.0% of the outstanding capital
stock of any entity that is engaged in a business competitive with Company, provided that such
investment is a passive investment and the Executive is not directly or indirectly involved in the
management or operation of such business or otherwise providing consulting services to such
business.

               (c) Confidential Information. Except as required in the good faith opinion of the Executive
in connection with the performance of the Executive’s duties hereunder or as specifically set forth
in this Section 7(e), the Executive shall, in perpetuity, maintain in confidence and shall not
directly, indirectly or otherwise, use, disseminate, disclose or publish, or use for his benefit or
the benefit of any person, firm, corporation or other entity any confidential or proprietary
information or trade secrets of or relating to the Company, including, without limitation,
information with respect to the Company’s operations, processes, products, inventions, business
practices, finances, principals, vendors, suppliers, customers, potential customers, marketing
methods, costs, prices, contractual relationships, regulatory status, business plans, designs,
marketing or other business strategies, compensation paid to employees or other terms of
employment, or deliver to any person, firm, corporation or other entity any document, record,
notebook, computer program or similar repository of or containing any such confidential or
proprietary information or trade secrets. The Company and the Executive stipulate and agree that
as between them the foregoing matters are important, material and confidential proprietary
information and trade secrets and affect the successful conduct of the businesses of the Company
(and any successor or assignee of the Company). Upon termination of the Executive’s employment
with the Company for any reason, the Executive shall promptly deliver to the Company all
correspondence, drawings, manuals, letters, notes, notebooks, reports, programs, plans, proposals,
financial documents, or any other documents concerning the Company’s customers, business plans,
designs, marketing or other business strategies, products or processes, provided that the Executive
may retain his rolodex, address book and similar information.

               (d) Confidential Information, Invention Assignment, Non-Competition and Arbitration Agreement.
Sections 7(a), 7(b) and 7(c) hereinabove shall be in addition to and not in lieu of Sections 2 and
9 of the Confidential Information, Invention Assignment, Non-Competition and Arbitration Agreement,
dated August 12, 2008 between the Executive and the Company.

               (e) Non-Disparagement. The Executive and the Company mutually agree not to disparage or
defame, in writing or orally, the other party, and as applicable, its or his services, products,
subsidiaries and affiliates, and/or their respective directors, officers, employees, agents, family
members, successors and assigns. This non-disparagement provision shall not apply to statements
made by non-management employees of the Company, so long as such statements did not originate from
and were not induced or encouraged (directly or indirectly) by an officer, director or management
employee of the Company. Notwithstanding the foregoing, nothing in this Section 7(e) shall limit
the ability of the Company or the Executive,
as applicable, to provide truthful testimony as required by law or any judicial or
administrative process.

8

 

               (e) Remedies. Without limiting the right of the Company to pursue all other legal and
equitable rights available to the for violation of the provisions of this Section 7 by the
Executive, it is agreed that (i) other remedies cannot fully compensate the Company for such a
violation, (ii) such a violation will cause the Company irreparable harm which may not be
adequately compensated by money damages and (iii) the Company shall each be entitled to temporary,
preliminary and permanent injunctive or other equitable relief, without proving actual damages or
posting a bond therefore, to prevent a violation, continuing violation or threatened violation of
the provisions of this Section 7.

          8. Successors.

               (a) Company’s Successors. This Agreement shall be binding upon any successor (whether direct
or indirect and whether by purchase, lease, merger, consolidation, liquidation or otherwise) to all
or substantially all of the Company’s business and/or assets. For all purposes under this
Agreement, the term “Company” shall include any successor to the Company’s business and/or assets
which becomes bound by this Agreement.

               (b) Employee’s Successors. This Agreement and all rights of the Executive hereunder shall
inure to the benefit of, and be enforceable by, the Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and legatees.

          9. Section 409A of the Internal Revenue Code. In the event that the Company determines that
any of the benefits payable under this Agreement would violate Section 409A, then the Company and
the Executive shall, in good faith, agree to implement adjustments needed to comply with Section
409A. Additionally, notwithstanding anything contained in this Agreement to the contrary, if the
Executive is deemed by the Company at the time of the Executive’s “separation from service” to be a
“specified employee,” each within the meaning of Section 409A, any compensation or benefits to
which the Executive becomes entitled under this Agreement (or any agreement or plan referenced in
this Agreement) in connection with such separation that are subject to Section 409A shall not be
made or commence until the date which is six (6) months after the Executive’s “separation from
service” (or, if earlier, the Executive’s death). Such deferral shall only be effected to the
extent required to avoid adverse tax treatment to the Executive, including (without limitation) the
additional twenty percent (20%) tax for which the Executive would otherwise be liable under Section
409A(a)(1)(B) in the absence of such deferral. Upon the expiration of the applicable deferral
period, any compensation or benefits which would have otherwise been paid during that period
(whether in a single lump sum or in installments) in the absence of this Section 9 shall be paid to
the Executive or the Executive’s beneficiary in one lump sum.

          10. Repayment Provisions. If the Company is required to prepare an accounting restatement
due to its material noncompliance, as a result of the Executive’s misconduct, with any financial
reporting requirement under United States securities laws, then,
and only if Section 304 of the Sarbanes-Oxley Act of 2002, or a successor provision, is then
in effect, the Company may require the Executive to reimburse the Company for (a) any bonus or
other incentive-based or equity-based compensation received by the Executive from the

9

 

Company
during the 12-month period following the first public issuance or filing with the Securities
Exchange Commission (whichever first occurs) of the financial documents embodying such financial
reporting requirement and (b) any profits realized from the sale of securities of Company during
such 12-month period.

          11. Miscellaneous Provisions.

               (a) Notice. Notices and all other communications contemplated by this Agreement shall be in
writing and shall be deemed to have been duly given when personally delivered or when mailed by
overnight courier, U.S. registered or certified mail, return receipt requested and postage prepaid.
In the case of the Executive, mailed notices shall be addressed to him at the home address that he
most recently communicated to the Company in writing. In the case of the Company, mailed notices
shall be addressed to its corporate headquarters, and all notices shall be directed to the
attention of its Secretary.

               (b) Modifications and Waivers. No provision of this Agreement shall be modified, waived or
discharged unless the modification, waiver or discharge is agreed to in writing and signed by the
Executive and by an authorized officer of the Company (other than the Executive). No waiver by
either party of any breach of, or of compliance with, any condition or provision of this Agreement
by the other party shall be considered a waiver of any other condition or provision or of the same
condition or provision at another time.

               (c) Whole Agreement. Except for those agreements or plans referenced herein (including
without limitation any Employee Benefits Plans in which the Executive is a participant in as of the
Effective Date), this Agreement contains the entire understanding of the parties with respect to
the subject matter hereof and supersedes any other agreements, representations or understandings
(whether oral or written and whether express or implied) with respect to the subject matter hereof.
In the event of any conflict in terms between this Agreement and any other agreement executed by
and between the Executive and the Company, the terms of this Agreement shall prevail and govern.

               (d) Withholding Taxes. All payments made under this Agreement shall be subject to reduction
to reflect taxes or other charges required to be withheld by law.

               (e) Reporting Requirements. As the Executive is a Section 16 officer, the Company will assist
the Executive and facilitate the Executive’s compliance with applicable Section 16 reporting
requirements.

               (f) Choice of Law. The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the state of Washington (except their provisions
governing the choice of law).

               (g) Severability; Blue-Penciling. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of any other provision
hereof, which shall remain in full force and effect. Furthermore, it is the intent, agreement and
understanding of each party hereto that if, in any action before any court or agency legally
empowered to enforce this Agreement, any term, restriction, covenant or promise

10

 

in this Agreement
is found to be unreasonable and for that or any other reason unenforceable, then such term,
restriction, covenant or promise shall be deemed modified to the minimum extent necessary to make
it enforceable by such court or agency; provided further that any such court or agency shall have
the power to modify such provision, to the extent necessary to make it enforceable (for the maximum
duration and geographic scope permissible), and such provision as so modified shall be enforced.

               (h) Assignment. The Company may assign its rights under this Agreement to any entity that
expressly in writing assumes the Company’s obligations hereunder in connection with any sale or
transfer of all or substantially all of the Company’s assets to such entity.

               (i) Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.

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          IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the
Company by its duly authorized officer, as of the Effective Date.

	 	 	 	 	 
	 	 	 
	 	/s/ Scott C. Stromatt
 	 
	 	Scott C. Stromatt, M.D. 	 
	 	 	 
	 
	 	Trubion Pharmaceuticals, Inc.

 	 
	 	By:  	/s/ Peter A. Thompson
 	 
	 	 	Name:  	Peter A. Thompson 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 

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