Document:

EX-10.5

Exhibit 10.5

[Form for Arduini Annual Contract Stock Grant]

INTEGRA LIFESCIENCES HOLDINGS CORPORATION

CONTRACT STOCK / RESTRICTED UNITS AGREEMENT

Pursuant to

2003 EQUITY INCENTIVE PLAN

AGREEMENT, dated as of       , 20      , by and between Integra LifeSciences Holdings
Corporation, a Delaware corporation (the “Company”), and Peter J. Arduini (the
“Executive”).

WHEREAS, the Company and Executive have previously entered into that certain employment
agreement dated as of [      ], 2010 (the “Employment Agreement”);

WHEREAS, the Company maintains the Integra LifeSciences Holdings Corporation Second Amended
and Restated 2003 Equity Incentive Plan (the “2003 Plan”), the terms of which are hereby
incorporated by reference and made part of this Agreement;

WHEREAS, the 2003 Plan provides for the award of Contract Stock on the terms and conditions
set forth therein; and

WHEREAS, the Committee has determined that, as an inducement to the Executive to enter into or
remain in the service of the Company, it would be to the advantage and in the best interest of the
Company and its stockholders to grant to Executive an aggregate of [      ] (      )
shares of Contract Stock under the 2003 Plan in the form of restricted units (the “Units”)
representing the right to receive an equal number of shares of common stock of the Company, par
value $.01 per share (“Common Stock”), on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration the legal sufficiency of which is hereby acknowledged, the parties
hereto, intending to be legally bound hereby, agree as follows:

1. Definitions. Capitalized terms not otherwise defined herein shall have the
meanings set forth in the Employment Agreement or the 2003 Plan, as applicable, unless otherwise
indicated.

2. Grant of Units. Executive is hereby granted, as of       , 20       (the
“Grant Date”), deferred compensation in the form of [      ] (      ) Units
pursuant to the terms of this Agreement and the 2003 Plan. The Executive’s right to receive the
shares of Common Stock underlying the Units shall be subject to forfeiture as provided in Section 4
of this Agreement.

3. Vesting.

(a) Subject to paragraph (b) and Section 4 below, the Units shall vest in cumulative
installments as follows:

(i) One-third of the Units shall vest on the first anniversary of the Grant
Date;

(ii) One-third of the Units shall vest on the second anniversary of the Grant
Date; and

(iii) One-third of the Units shall vest on the third anniversary of the Grant
Date;

(b) One hundred percent (100%) of the then outstanding Units shall vest in the event that:

(i) Executive incurs a Termination of Service (as defined below) (1) by reason
of the Executive’s “Disability” (as defined in Section 1 of the Employment
Agreement), or (2) by reason of the Executive’s death; or

(ii) a “Change in Control” (as defined in the Employment Agreement) occurs
prior to the Executive’s Termination of Service.

(c) For purposes of this Agreement, “Termination of Service” shall mean the time when
the Executive ceases to provide services to the Company and its Related Corporations and Affiliates
as an employee or Associate for any reason with or without cause, including, but not by way of
limitation, a termination by resignation, discharge, death, or disability. A Termination of
Service shall not include a termination where the Executive is simultaneously reemployed by, or
remains employed by, or continues to provide services to, the Company and/or one or more of its
Related Corporations and Affiliates or a successor entity thereto.

4. Forfeiture of Units. Immediately upon a Termination of Service for any reason
other than the Executive’s death or Disability, the Executive shall forfeit any and all Units which
have not vested or do not vest on or prior to such termination, and the Executive’s rights in any
such Units which are not so vested shall terminate, lapse and expire (including the Executive’s
right to receive the shares underlying such Units).

5. Dividend Equivalents. Executive shall be entitled to receive, with respect to all
outstanding vested Units (as such Units may be adjusted under Section 8), dividend equivalent
amounts equal to the regular quarterly cash dividend payable to holders of Common Stock (to the
extent regular quarterly cash dividends are paid) as if Executive were an actual shareholder with
respect to the number of shares of Common Stock equal to his outstanding vested Units. Such
dividend equivalent amounts shall be aggregated on a quarterly basis while the Units are
outstanding and paid to Executive within thirty (30) days following the first business day that
occurs immediately following the 6-month period after the date of Executive’s “separation from
service” from the Company (within the meaning of Section 409A(a)(2)(A)(i) of the Internal Revenue
Code of 1986, as amended (the “Code”) and its corresponding regulations) (a “Separation
from Service”). For the avoidance of doubt, such dividend equivalent amounts shall only be
paid with respect to Units that are vested as of the applicable dividend payment date, and
Executive shall not be entitled to receive any dividend equivalent amounts with respect to Units
that are not vested as of such dividend payment date. The dividend equivalents and any amounts
that may become payable in respect thereof shall be treated separately from the Units and the
rights arising in connection therewith for purposes of the designation of time and form of payments
required by Code Section 409A.

6. Payment of Units.

(a) The shares of Common Stock underlying Units which are then vested under Section 3(a) or
3(b) (the “Unit Shares”) shall be paid out to Executive within thirty (30) days following
the first business day that occurs immediately following the 6-month period after the date of
Executive’s Separation from Service.

(b) All payments of Unit Shares shall be made by the Company in the form of whole shares of
Common Stock, and any fractional share shall be distributed in cash in an amount equal to the value
of such fractional share determined based on the Fair Market Value (as defined in the 2003 Plan) as
of the date immediately prior to such distribution.

(c) Any Unit Shares delivered shall be deposited in an account designated by Executive and
maintained at a brokerage house selected by Executive. Any such Unit Shares shall be duly
authorized, fully paid and non-assessable shares, listed with NASDAQ or the principal United States
securities exchange on which the Common Stock is admitted to trading and, so long as the Company is
required to file reports under Section 13 or 15(d) of the Securities Exchange Act of 1934,
registered on a Form S-8 registration statement maintained by the Company, if registration is
requested by Executive.

(d) Except as otherwise provided in this Agreement, Executive shall not be deemed to be a
holder of any Common Stock pursuant to a Unit until the date of the issuance of a certificate to
him for such shares and, except as otherwise provided in this Agreement, Executive shall not have
any rights to dividends or any other rights of a shareholder with respect to the shares of Common
Stock covered by a Unit until such shares of Common Stock have been issued to him, which issuance
shall not be unreasonably delayed.

(e) The Company shall be entitled to withhold in cash, shares or deduction from other
compensation payable to the Executive any sums required by federal, state or local tax law to be
withheld with respect to the grant, vesting, distribution or payment of the Units or the Unit
Shares. In satisfaction of the foregoing requirement with respect to the grant, vesting,
distribution or payment of the Units or Unit Shares, to the extent permitted by Section 409A of the
Code, including Treas. Reg. Section 1.409A-3(j)(4)(vi), the Company shall withhold shares of Common
Stock otherwise issuable upon payment of the Units having a Fair Market Value equal to the sums
required to be withheld. Subject to the following sentence, the number of shares of Common Stock
which shall be so withheld in order to satisfy the Executive’s federal, state and local withholding
tax liabilities with respect to the grant, vesting, distribution or payment of the Units or Unit
Shares shall be limited to the number of shares which have a Fair Market Value on the date of
withholding equal to the aggregate amount of such liabilities based on the minimum statutory
withholding rates for federal, state and local tax purposes that are applicable to such
supplemental taxable income. In the event that the number of shares of Common Stock having a Fair
Market Value equal to the sums required to be withheld is not a whole number of shares, the number
of shares so withheld shall be rounded up to the nearest whole share.

(f) Executive’s right to receive payment of any amounts under this Agreement shall be an
unfunded entitlement and shall be an unsecured claim against the general assets of the Company.

(g) After payment in accordance with this Section 6, the Unit Shares may not be sold,
transferred or otherwise disposed of by Executive for a period of five days after receipt of such
shares by Executive, except that no such restrictions shall apply in the case of a Change in
Control or in the event that Unit Shares are sold or withheld in order to satisfy any obligations
Executive may have with respect to any applicable tax withholding requirements on vesting or
receipt of Unit Shares (including, without limitation, pursuant to Section 6(e) above).

7. Representations. The Company represents and warrants that this Agreement has been
authorized by all necessary action of the Company, has been approved by the Board and is a valid
and binding agreement of the Company enforceable against it in accordance with its terms and that
the Unit Shares will be issued pursuant to and in accordance with the 2003 Plan, will be listed
with NASDAQ or the principal United States securities exchange on which the Common Stock is
admitted to trading, and will be validly issued, fully paid and non-assessable shares. The Company
further represents and warrants that the grant of Units under this Agreement has been approved by
the Company’s Compensation Committee, that the 2003 Plan has and will have sufficient shares
available to effect the distribution of the Unit Shares.

8. Changes in the Common Stock and Adjustment of Units.

(a) In the event the outstanding shares of the Common Stock shall be changed into an increased
number of shares, through a share dividend or a split-up of shares, or into a decreased number of
shares, through a combination of shares, then immediately after the record date for such change,
the number of Units then subject to this Agreement shall be proportionately increased, in case of
such share dividend or split-up of shares, or proportionately decreased, in case of such
combination of shares. In the event the Company shall issue any of its shares of stock or other
securities or property (other than Common Stock which is covered by the preceding sentence), in a
reclassification of the Common Stock (including without limitation any such reclassification in
connection with a consolidation or merger in which the Company is the continuing entity), the kind
and number of Units subject to this Agreement immediately prior thereto shall be adjusted so that
the Executive shall be entitled to receive the same kind and number of shares or other securities
or property which the Executive would have owned or have been entitled to receive after the
happening of any of the events described above, had he owned the shares of the Common Stock
represented by the Units under this Agreement immediately prior to the happening of such event or
any record date with respect thereto, which adjustment shall become effective immediately after the
effective date of such event retroactive to the record date, if any, for such event.

(b) In the event the Company shall distribute to all holders of the Common Stock evidences of
its indebtedness or assets (including leveraged recapitalizations with special cash distributions,
but excluding regular quarterly cash dividends), then in each case the number of Units thereafter
subject to this Agreement shall be determined by multiplying the number of Units theretofore
subject to this Agreement by a fraction, (i) the numerator of which shall be the then current
market price per share of Common Stock (as determined in paragraph (c) below) on the record date
for such distribution, and (ii) the denominator of which shall be the then current market price per
share of the Common Stock less the then fair value (as mutually determined in good faith by the
Board and the Executive) of the portion of the assets or evidences of indebtedness so distributed
applicable to a share of Common Stock. Such adjustment shall be made whenever any such
distribution is made, and shall become effective on the date of distribution retroactive to the
record date for the determination of shareholders entitled to receive such distribution.

(c) For the purpose of any computation under paragraph (b) of this Section 8, the current
market price per share of the Common Stock at any date shall be deemed to be the average of the
daily Stock Prices (as defined herein) for 15 consecutive Trading Days (as defined herein)
commencing 20 Trading Days before the date of such computation. “Stock Price” for each
Trading Day shall be the “Fair Market Value” of the Common Stock (as defined in the 2003 Plan, as
in effect on the date of this Agreement) for such Trading Day. “Trading Day” shall be each
Monday, Tuesday, Wednesday, Thursday and Friday, other than any day on which the Common Stock is
not traded on the exchange or in the market which is the principal United States market for the
Common Stock.

(d) For the purpose of this Section 8, the term “Common Stock” shall mean (i) the
class of Company securities designated as the Common Stock at the date of this Agreement, or (ii)
any other class of equity interest resulting from successive changes or reclassifications of such
shares consisting solely of changes in par value, or from par value to no par value, or from no par
value to par value. In the event that at any time, as a result of an adjustment made pursuant to
the second sentence of Section 8(a) above, the Executive shall become entitled to Units
representing any shares other than the Common Stock, thereafter the number of such other shares
represented by a Unit shall be subject to adjustment from time to time in a manner and on the terms
as nearly equivalent as practicable to the provisions with respect to the shares contained in this
Section 8, and the provisions of this Agreement with respect to the shares of Common Stock
represented by the Units shall apply on like terms to any such other shares.

(e) In case of any Change in Control, consolidation of the Company, or merger of the Company
with another corporation as a result of which Common Stock is converted or modified, or in case of
any sale or conveyance to another corporation of the property, assets and business of the Company
as an entirety or substantially as an entirety, the Company shall modify the Units so as to provide
the Executive with Units reflecting the kind and amount of shares and other securities and property
(or cash, as applicable) that he would have owned or have been entitled to receive immediately
after the happening of such Change in Control, consolidation, merger, sale or conveyance had his
Units immediately prior to such action actually been shares and, if applicable, other securities of
the Company represented by those Units. The provisions of this Section 8(e) shall similarly apply
to successive consolidations, mergers, sales or conveyances.

(f) If the Company distributes rights or warrants to all holders of its Common Stock entitling
them to purchase shares of Common Stock at a price per share less than the current market price per
share on the record date for the distribution, the Company shall distribute to Executive equivalent
amounts of such rights or warrants as if Executive were an actual shareholder with respect to the
number of shares of Common Stock equal to his outstanding Units. Such rights or warrants shall be
exercisable at the same time, on the same terms and for the same price as the rights or warrants
distributed to holders of the Common Stock; provided, however, that if such rights or warrants are
deemed to be deferred compensation subject to the requirements of Section 409A of the Code, such
rights or warrants shall be distributed to Executive in a manner that complies with such
requirements.

(g) In case any event shall occur as to which the provisions of this Section 8 are not
applicable but the failure to make any adjustment would not fairly protect the rights represented
by the Units in accordance with the essential intent and principles of this Section 8 then, in each
such case, the Company shall make an adjustment, if any, on a basis consistent with the essential
intent and principles established in this Section 8, necessary to preserve, without dilution, the
rights represented by the Units. The Company will promptly notify the Executive of any such
proposed adjustment.

(h) Notwithstanding anything to the contrary contained herein, the provisions of Section 8
shall not apply to, and no adjustment is required to be made in respect of, any of the following:
(i) the issuance of shares of Common Stock upon the exercise of any other rights, options or
warrants that entitle the holder to subscribe for or purchase such shares (it being understood that
the sole adjustment pursuant to this Section 8 in respect of the issuance of shares of Common Stock
upon exercise of rights, options or warrants shall be made at the time of the issuance by the
Company of such rights, options or warrants, or a change in the terms thereof); (ii) the issuance
of shares of Common Stock to the Company’s employees, directors or consultants pursuant to bona
fide benefit plans adopted by the Company’s Board; (iii) the issuance of shares of Common Stock in
a bona fide public offering pursuant to a firm commitment offering; (iv) the issuance of shares of
Common Stock pursuant to any dividend reinvestment or similar plan adopted by the Company’s Board
to the extent that the applicable discount from the current market price for shares issued under
such plan does not exceed 5%; and (v) the issuance of shares of Common Stock in any arm’s length
transaction, directly or indirectly, to any party.

(i) Notwithstanding anything in this Agreement to the contrary, in the event of a spin-off by
the Company to its shareholders, Executive’s participation in such spin-off with respect to the
Units and the adjustment of the Units shall be determined in an appropriate and equitable manner,
and it is the intention of the parties hereto that, to the extent practicable, such adjustment
shall include an equity interest in the spin-off entity.

(j) In the event the parties hereto cannot agree upon an appropriate and equitable adjustment
to the Units, the services of an independent investment banker mutually acceptable to Executive and
the Company shall (at the sole expense of the Company) be retained to determine an appropriate and
equitable adjustment, and such determination shall be binding upon the parties.

(k) Each additional Unit which results from adjustments made pursuant to this Section 8 or the
2003 Plan shall be subject to the same terms and conditions regarding vesting and forfeiture as the
underlying Unit to which such additional Unit relates.

(l) Notwithstanding the foregoing, no adjustment shall be made and no action shall be taken
under this Section 8 to the extent that such adjustment or action shall cause the Units to fail to
comply with Section 409A of the Code or the Treasury Regulations thereunder (to the extent
applicable to the Units).

9. No Right to Employment. Nothing in this Agreement shall confer upon Executive the
right to remain in employ of the Company or any subsidiary of the Company.

10. Nontransferability. This Agreement shall not be assignable or transferable by
the Company (other than to successors of the Company) and this Agreement and the Units shall not be
assignable or transferable by the Executive otherwise than by will or by the laws of descent and
distribution, and the Units may be paid out during the lifetime of the Executive only to him. More
particularly, but without limiting the generality of the foregoing, the Units may not be assigned,
transferred (except as provided in the preceding sentence), pledged, or hypothecated in any way
(whether by operation of law or otherwise), and shall not be subject to execution, attachment or
similar process. Any attempted assignment, transfer, pledge, hypothecation or other disposition of
the Units contrary to the provisions of this Agreement, and any levy of any attachment or similar
process upon the Units, shall be null and void and without effect.

11. Entire Agreement. This Agreement and the Employment Agreement contain all the
understandings between the parties hereto pertaining to the matters referred to herein, and
supersede all undertakings and agreements, whether oral or in writing, previously entered into by
them with respect thereto. The Executive represents that, in executing this Agreement, he does not
rely and has not relied upon any representation or statement not set forth herein made by the
Company with regard to the subject matter, basis or effect of this Agreement or otherwise.

12. Amendment or Modification; Waiver. No provision of this Agreement may be
amended, modified or waived unless such amendment or modification is agreed to in writing, signed
by the Executive and by a duly authorized officer of the Company, and such waiver is set forth in
writing and signed by the party to be charged. No waiver by any party hereto of any breach by
another party hereto of any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of a similar or dissimilar condition or provision at the same time,
any prior time or any subsequent time.

13. Notices. Any notice to be given hereunder shall be in writing and shall be
deemed given when delivered personally, sent by courier or telecopy or registered or certified
mail, postage prepaid, return receipt requested, addressed to the party concerned at the address
indicated below or to such other address as such party may subsequently give notice of hereunder in
writing:

To the Executive: at Executive’s most recent address on the records of the
Company

To the Company:

Integra LifeSciences Holdings Corporation

311 Enterprise Drive

Plainsboro, NJ 08536

Attention: Chairman

Facsimile: 609-275-9006

(with a copy to the Company’s Chief Executive Officer and the Company’s General
Counsel)

Any notice delivered personally or by courier under this Section 13 shall be deemed given on
the date delivered and any notice sent by telecopy or registered or certified mail, postage
prepaid, return receipt requested, shall be deemed given on the date telecopied or mailed.

14. Severability. If any provision of this Agreement or the application of any such
provision to any party or circumstances shall be determined by any court of competent jurisdiction
to be invalid and unenforceable to any extent, the remainder of this Agreement or the application
of such provision to such person or circumstances, other than those to which it is so determined to
be invalid and unenforceable, shall not be affected thereby, and each provision hereof shall be
validated and shall be enforced to the fullest extent permitted by law.

15. Noncontravention. The Company represents that the Company is not prevented from
entering into, or performing, this Agreement by the terms of any law, order, rule or regulation,
its certificate of incorporation or by-laws, or any agreement to which it is a party.

16. Survivorship. The respective rights and obligations of the parties hereunder
shall survive any termination of this Agreement or Executive’s employment to the extent necessary
for the intended preservation of such rights and obligations.

17. Successors. This Agreement shall inure to the benefit of and be binding upon
each successor of the Company, and upon the Executive’s beneficiaries, legal representatives or
estate, as the case may be.

18. Construction. Except as would be in conflict with any specific provision herein,
this Agreement is made under and subject to the provisions of the 2003 Plan as in effect on the
Grant Date and, except as would conflict with the provisions of this Agreement, all of the
provisions of the 2003 Plan as in effect on the Grant Date are hereby incorporated herein as
provisions of this Agreement. In the event of any such conflict, the terms of this Agreement shall
govern.

19. Governing Law. This agreement will be governed by and construed in accordance
with the laws of the State of Delaware, without regard to its conflicts of laws principles.

20. Headings. All descriptive headings of sections and paragraphs in this Agreement
are for convenience of reference only, and they form no part of this Agreement and shall not affect
its interpretation.

21. Counterparts. This Agreement may be executed in counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument.

22. Section 409A of the Code. This Agreement is intended to comply with the
requirements of Section 409A of the Code, and shall in all respects be administered and interpreted
in accordance with Section 409A. Notwithstanding anything in the Agreement to the contrary,
payment may only be made under the Agreement upon an event and in a manner permitted by Section
409A of the Code. If a payment is not made by the designated payment date under the Agreement, the
payment shall be made by December 31 of the calendar year in which the designated date occurs. Any
payment to be made upon a termination of employment under this Agreement may only be made upon a
Separation from Service. To the extent that any provision of the Agreement would cause a conflict
with the requirements of Section 409A of the Code, or would cause the administration of the
Agreement to fail to satisfy the requirements of Section 409A, such provision shall be deemed null
and void to the extent permitted by applicable law.

[Signature page follows]

1

IN WITNESS WHEREOF, the parties hereto have executed this Contract Stock / Restricted Units
Agreement as of the date first above written.

INTEGRA LIFESCIENCES HOLDINGS CORPORATION

By:

Name:

Title:

EXECUTIVE

Peter J. Arduini

2EX-10.6

Exhibit 10.6

	 	 	 
	Notice of Grant of Stock Options

and Option Agreement
	 	Integra LifeSciences Holdings

Corporation

ID: 51-0317849

311 Enterprise Drive

Plainsboro, New Jersey 08536

	 
	 	 

	[NAME AND ADDRESS OF GRANTEE]
	 	Option Number:

	 	 	Plan: [NAME OF PLAN]

ID:

	 
	 	 

Effective [DATE OF GRANT], you have been granted a Non-Qualified Stock Option to buy        shares of
Integra LifeSciences Holdings Corporation (the Company) stock at $[CLOSING PRICE OF COMMON STOCK ON
DATE OF GRANT] per share.

The total option price of the shares granted is $     .

Shares in each period will become fully vested on the date shown.

	 	 	 	 	 	 	 
	Shares	 	Vest Type	 	Full Vest	 	Expiration
	1/4th of SHARES
	 	On Vest Date
	 	ONE YEAR

ANNIVERSARY OF

GRANT DATE

	 	SIX YEAR

ANNIVERSARY OF

GRANT DATE
	3/4th of SHARES
	 	Monthly, as set

forth in the Option

Agreement
	 	FOUR YEAR

ANNIVERSARY OF

GRANT DATE

	 	SIX YEAR

ANNIVERSARY OF

GRANT DATE

By your signature and the Company’s signature below, you and the Company agree that these options
are granted under and governed by the terms and conditions of the Company’s Second Amended and
Restated 2003 Equity Incentive Plan and the Option Agreement, all of which are attached and made a
part of this document.

	 	 	 
	Integra LifeSciences Holdings Corporation

	 	Date
	 

	 	 
	Name

	 	Date

INTEGRA LIFESCIENCES HOLDINGS CORPORATION

2003 EQUITY INCENTIVE PLAN

NON-QUALIFIED STOCK OPTION AGREEMENT

NON-QUALIFIED STOCK OPTION AGREEMENT (together with the attached Notice of Grant of Stock
Options and Option Agreement (“Notice of Grant”), the “Option Agreement”) made as of the date (the
“Grant Date”) set forth in Notice of Grant, between Integra LifeSciences Holdings Corporation, a
Delaware corporation (the “Company”), and the named Key Employee of the Company, a Related
Corporation, or an affiliate (the “Employee”).

WHEREAS, the Company desires to afford the Employee an opportunity to purchase shares of
common stock of the Company, par value $.01 per share (“Common Stock”), as hereinafter provided, in
accordance with the provisions of the Integra LifeSciences Holdings Corporation Second Amended and
Restated 2003 Equity Incentive Plan (the “Plan”)[, which can be found on Integra’s Intranet at
]. Requests for hardcopies of the “Plan” should be directed to [ ]
at the Plainsboro, New Jersey Corporate Office.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration the legal sufficiency of which is hereby acknowledged, the parties
hereto, intending to be legally bound hereby, agree as follows:

1. Grant of Option. The Company hereby grants to the Employee a non-qualified stock
option (the “Option”) to purchase all or any part of an aggregate of the number of shares of Common
Stock as set forth in the attached Notice of Grant, subject to adjustment in accordance with
Section 8 of the Plan.

2. Purchase Price. The purchase price per share of the shares of Common Stock covered
by the Option shall be that set forth in the attached Notice of Grant, subject to adjustment in
accordance with Section 8 of the Plan. It is the determination of the Company’s Compensation
Committee (the “Committee”) that on the Grant Date the per share Option exercise price was not less
than the greater of one hundred percent (100%) of the fair market value of the Common Stock, or the
par value thereof.

3. Term. Unless earlier terminated pursuant to any provision of this Option
Agreement, this Option shall expire on the date set forth in the attached Notice of Grant (the
“Expiration Date”). Notwithstanding anything herein to the contrary, this Option shall not be
exercisable after the Expiration Date.

4. Exercise of Option. This Option shall vest and become exercisable with respect to
1/4th of the shares subject hereto on the first anniversary of the Grant Date. Thereafter, this
Option shall vest and become exercisable with respect to 1/36th of the remaining shares on the
first business day of each following month.

Any portion of the Option that becomes exercisable in accordance with the foregoing shall
remain exercisable, subject to the provisions contained in this Option Agreement, until the
expiration of the term of this Option as set forth in Paragraph 3 or until other termination of the
Option as set forth in this Option Agreement.

Notwithstanding anything contained herein, no portion of the Option which has not become
vested and exercisable as of the Employee’s termination of employment or in connection with
Employee’s termination of employment shall thereafter become vested or exercisable.

5. Method of Exercising Option. Subject to the terms and conditions of this Option
Agreement, the Option may be exercised in whole or in part by written notice to the Company, at its
principal office, which currently is located at 311 Enterprise Drive, Plainsboro, New Jersey 08536.
Such notice shall state the election to exercise the Option, and the number of shares with respect
to which it is being exercised; shall be signed by the person or persons so exercising the Option;
shall, unless the Company otherwise notifies the Employee, be accompanied by the investment
certificate referred to in Paragraph 6; and shall be accompanied by payment of the full Option
price of such shares.

The Option price shall be paid to the Company: (i) in cash; (ii) in cash equivalent; (iii) in
Common Stock of the Company, in accordance with Section 7.1(f)(ii) of the Plan (as in effect on the
date of this Option Agreement); (iv) by delivering a properly executed notice of exercise of the
Option, in accordance with Section 7.1(f)(iii) of the Plan (as in effect on the date of this Option
Agreement); (v) in Common Stock of the Company issuable pursuant to the exercise of the Option or
otherwise withheld in net settlement of the Option, in accordance with Section 7.1(f)(iv) of the
Plan (as in effect on the date of this Option Agreement); or (v) by any combination of (i)-(v).

Upon receipt of such notice and payment, the Company, as promptly as practicable, shall
deliver or cause to be delivered a certificate or certificates representing the shares with respect
to which the Option is so exercised. Such certificate(s) shall be registered in the name of the
person or persons so exercising the Option (or, if the Option is exercised by the Employee and if
the Employee so requests in the notice exercising the Option, shall be registered in the name of
the Employee and the Employee’s spouse, jointly, with right of survivorship) and shall be delivered
as provided above to or upon the written order of the person or persons exercising the Option. In
the event the Option is exercised by any person or persons after the legal disability or death of
the Employee, such notice shall be accompanied by appropriate proof of the right of such person or
persons to exercise the Option. All shares that are purchased upon the exercise of the Option as
provided herein shall be fully paid and not assessable by the Company.

6. Shares to be Purchased for Investment. Unless the Company has theretofore notified
the Employee that a registration statement covering the shares to be acquired upon the exercise of
the Option has become effective under the Securities Act of 1933 and the Company has not thereafter
notified the Employee that such registration statement is no longer effective, it shall be a
condition to any exercise of this Option that the shares acquired upon such exercise be acquired
for investment and not with a view to distribution, and the person effecting such exercise shall
submit to the Company a certificate of such investment intent, together with such other evidence
supporting the same as the Company may request. The Company shall be entitled to delay the
transferability of the shares issued upon any such exercise to the extent necessary to avoid a risk
of violation of the Securities Act of 1933 (or of any rules or regulations promulgated thereunder)
or of any state laws or regulations. Such restrictions may, at the option of the Company, be noted
or set forth in full on the share certificates.

7. Non-Transferability of Option. This Option is not assignable or transferable, in
whole or in part, by the Employee other than by will or by the laws of descent and distribution,
and during the lifetime of the Employee the Option shall be exercisable only by the Employee or by
his or her guardian or legal representative.

8. Termination of Employment. If the Employee’s employment with the Company and all
Related Corporations is terminated for any reason other than death or disability prior to the
Expiration Date, this Option may be exercised, to the extent of the number of shares with respect
to which the Employee could have exercised it on the date of such termination of employment, or to
any greater extent permitted by the Committee, by the Employee at any time prior to the earlier of:

(a) The Expiration Date; or

(b) Six (6) months after such termination of employment.

9. Disability. If the Employee incurs a disability, as defined in the Plan, during
his or her employment with the Company and Related Corporations and, prior to the Expiration Date,
the Employee’s employment is terminated as a consequence of such disability, this Option may be
exercised, to the extent of the number of shares with respect to which the Employee could have
exercised it on the date of such termination of employment, or to any greater extent permitted by
the Committee in its discretion, by the Employee, or in the event of the Employee’s legal
disability, by the Employee’s legal representative, at any time prior to the earlier of:

(a) The Expiration Date; or

(b) One year after the date of such termination of employment.

10. Death. If the Employee dies during his or her employment with the Company and
Related Corporations and prior to the Expiration Date, or if the Employee’s employment is
terminated for any reason (as described in Paragraphs 8 or 9 above) and the Employee dies following
his or her termination of employment but prior to the earliest of the Expiration Date or the
expiration of the period determined under Paragraph 8 or 9 above, this Option may be exercised, to
the extent of the number of shares with respect to which the Employee could have exercised it on
the date of his or her death, or to any greater extent permitted by the Committee, by the
Employee’s estate, personal representative or beneficiary who acquired the right to exercise this
Option by bequest or inheritance or by reason of the Employee’s death, at any time prior to the
earlier of:

(a) The Expiration Date; or

(b) One year after the date of the Employee’s death

11. Withholding of Taxes. The obligation of the Company to deliver shares of Common
Stock upon the exercise of the Option shall be subject to applicable federal, state and local tax
withholding requirements. If the exercise of any Option is subject to the withholding requirements
of applicable federal, state or local tax laws, the Committee, in its discretion, may permit the
Employee, subject to the provisions of the Plan and such additional withholding rules (the
“Withholding Rules”) as shall be adopted by the Committee, to satisfy the withholding tax, in whole
or in part, by electing to have the Company withhold (or by returning to the Company) shares of
Common Stock, which shares shall be valued, for this purpose, at their fair market value on the
date of exercise of the Option (or, if later, the date on which the Employee recognizes ordinary
income with respect to such exercise). An election to use shares of Common Stock to satisfy tax
withholding requirements must be made in compliance with and subject to the Withholding Rules. The
Committee may not withhold shares in excess of the number necessary to satisfy the minimum tax
withholding requirements.

12. Construction. Except as would be in conflict with any specific provision herein,
this Option Agreement is made under and subject to the provisions of the Plan as in effect on the
Grant Date and, except as would conflict with the provisions of this Option Agreement, all of the
provisions of the Plan as in effect on the Grant Date are hereby incorporated herein as provisions
of this Option Agreement. Notwithstanding the foregoing, provisions of this Option Agreement that
conflict with the Plan will be given effect only to the extent they do not exceed the Committee’s
discretion under the Plan.

13. Governing Law. This Non-Qualified Stock Option Agreement shall be governed by
applicable federal law and otherwise by the laws of the State of Delaware.

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