Document:

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EXHIBIT 10.22

KELLOGG COMPANY 2002 EMPLOYEE STOCK PURCHASE PLAN

(As Amended and Restated Effective January 1, 2008)

1. Purpose. Kellogg Company (the “Company”) has established this Kellogg Company 2002
Employee Stock Purchase Plan, as amended (the “Plan”) to encourage and enable its eligible
employees and the eligible employees of its Subsidiaries to acquire the Company’s Common Stock, and
to align more closely the interests of those individuals and the Company’s share owners. The
Company intends that the Plan qualify as an “employee stock purchase plan” under Section 423 of the
Internal Revenue Code of 1986, as amended. The Plan was originally adopted by the Board on
December 6, 2001, to be effective July 1, 2002, and was approved by the Company’s share owners on
April 26, 2002. The following provisions constitute an amendment and restatement of the Plan
effective as of January 1, 2008.

2. Definitions. Unless the context clearly indicates otherwise, for purposes of the Plan,
the following terms shall have the following meanings:

     (a) “Board” means the Board of Directors of Kellogg Company, as constituted from time to time.

     (b) “Beneficiary” means (i) the person designated by the Participant to receive benefits under
a Company-sponsored and Company-paid life insurance program, if any, or (ii) the Participant’s
estate.

     (c) “Code” means the Internal Revenue Code of 1986, as amended.

     (d) “Committee” means the Compensation Committee of the Board.

     (e) “Common Stock” means the Common Stock, par value $0.25 per share, of the Company or any
security of the Company issued by the Company in substitution or exchange therefor.

     (f) “Company” means Kellogg Company, a Delaware corporation, any successor corporation to
Kellogg Company.

     (g) “Compensation” means with respect to a Participant, the portion of the Participant’s base
salary, commissions or wages paid to the Participant during the applicable payroll period.

     (h) “Custodian” means the individual or organization appointed by the Plan Administrator to
maintain custody of Participants’ payroll deductions, purchase Common Stock under the Plan, and
allocate Common Stock among Participants.

     (i) “Designated Subsidiary” means any Subsidiary that the Board has designated from time to
time, in its sole discretion, as eligible to participate in the Plan.

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     (j) “Disability” means disability as determined by the Committee in accordance with standards
and procedures similar to those under the long-term disability plan of the Company or Designated
Subsidiary, if any, or if the Participant is then a party to an effective employment agreement with
the Company or Designated Subsidiary that defines disability, “Disability” means disability as
defined in the Participant’s then effective employment agreement. Subject to the first sentence of
this paragraph, at any time that the Company or Designated Subsidiary does not maintain a long-term
disability plan, “Disability” shall mean any physical or mental disability that is determined to be
total and permanent by a physician selected in good faith by the Company or Designated Subsidiary.

     (k) “Effective Date” means January 1, 2008.

     (l) “Eligible Employee” means each Employee of the Company or a Designated Subsidiary.
Notwithstanding the foregoing, any Employee who is covered by a collective bargaining agreement and
whose decision not to participate in the Plan was the subject of good faith negotiations between
the Company or a Designated Subsidiary and a labor organization will not be eligible to participate
in the Plan, unless the decision not to participate in the Plan is revoked by the labor
organization upon reasonable notice to the Company.

     (m) “Employee” means each and every person employed by the Company or a Designated Subsidiary,
and whom the Company or Designated Subsidiary classifies as a common law employee; provided that,
only individuals who are paid as common law employees from the payroll of the Company or a
Designated Subsidiary shall be deemed to be Employees for purposes of the Plan.

     For purposes of this definition of Employee, and notwithstanding any other provisions of the
Plan to the contrary, who are not classified by the Company or by a Designated Subsidiary, in its
discretion, as employees under Code Section 3121(d) including, but not limited to, individuals
classified by the Company or a Designated Subsidiary as independent contractors and non-employee
consultants) and individuals who are classified by the Company or by a Designated Subsidiary, in
its discretion, as employees of any entity other than the Company or a Designated Subsidiary, do
not meet the definition of Employee and are ineligible for benefits under the Plan, if the
classification by the Company or Designated Subsidiary is later determined to be erroneous, or is
retroactively revised. In the event the classification of an individual who is excluded from the
definition of Employee under the preceding sentence is determined to be erroneous or is
retroactively revised, the individual shall nonetheless continue to be excluded from the definition
of Employee and shall be ineligible for benefits for all periods prior to the date the Company or
Designated Subsidiary determines its classification of the individual is erroneous or should be
revised.

     (n) “Exchange Act” means the Securities Exchange Act of 1934, in effect and as amended from
time to time, or any successor statute thereto, together with any rules, regulations and
interpretations promulgated thereunder or with respect thereto.

     (o) “Fair Market Value” means, with respect to any date, the closing price per share on the
New York Stock Exchange Composite Transactions Tape on such date, provided that if

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there shall be no sales of shares reported on such date, the Fair Market Value of a share on
such date shall be deemed to be equal to the closing price per share on such Composite Tape for the
last preceding date on which sales of shares were reported.

     (p) “Offering Date” means the first day of a Purchase Period, January 1, April 1, July 1 and
October 1.

     (q) “Option” means an option to purchase shares of Common Stock under the Plan, pursuant to
the terms and conditions thereof.

     (r) “Participant” means an Eligible Employee who is participating in the Plan pursuant to
Section 4.

     (s) “Plan” means the Kellogg Company 2002 Employee Stock Purchase Plan, as set forth herein,
as in effect, and as amended from time to time (together with any rules and regulations promulgated
by the Committee with respect thereto).

     (t) “Plan Account” means an account maintained by the Plan Administrator for each Participant
to which the Participant’s payroll deductions are credited, against which funds used to purchase
shares of Common Stock are charged, and to which shares of Common Stock purchased are credited.

     (u) “Plan Administrator” means such other person or persons, a committee, as the Committee may
appoint to administer the Plan.

     (v) “Purchase Date” means, except as provided in Sections 13 and 18, the last day of a
Purchase Period, each March 31, June 30, September 30 and December 31.

     (w) “Purchase Period” means each calendar quarter.

     (x) “Purchase Price” means, with respect to each Purchase Period, 95% of the Fair Market Value
of Common Stock on the Purchase Date.

     (y) “Retirement” means the voluntary retirement by the Participant from active employment with
the Company and its Designated Subsidiaries on or after the attainment of early or normal
retirement age under the pension or retirement plan sponsored by the Company or Designated
Subsidiary in which he or she participates, or any other age with the consent of the Company or
Designated Subsidiary.

     (z) “Subsidiary” means any corporation, domestic or foreign, than the Company, in an unbroken
chain of corporations beginning with the Company if, at the time of the granting of the Option,
each of the corporations other than the last corporation in the unbroken chain owns stock
possessing 50% or more of the total combined voting power of all classes of stock in one of the
other corporations in such chain. Notwithstanding the foregoing, the term “Subsidiary” shall
include a limited liability company that is disregarded as an entity separate from a Subsidiary.

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3. Stock Subject to the Plan. Subject to Section 14, the aggregate number of shares of
Common Stock that may be sold under the Plan is 2,500,000. Shares of Common Stock to be issued
under the Plan may be authorized and unissued shares, issued shares that have been reacquired by
the Company (in the open-market or in private transactions) and that are being held as treasury
shares, or a combination thereof.

4. Participation in the Plan. Each Eligible Employee may participate in the Plan effective
as of any Offering Date, by completing and delivering a payroll deduction authorization to the Plan
Administrator at least 10 days in advance of the applicable Offering Date in the manner specified
by the Plan Administrator. The Offering Date as of which an Eligible Employee commences or
recommences participation in the Plan, and each Offering Date as of which an Eligible Employee
renews his or her authorization under paragraph (a), is an Offering Date with respect to that
Eligible Employee. A Participant’s payroll deductions under the Plan shall commence on his or her
initial Offering Date, and shall continue, subject to paragraph (a), until the Eligible Employee
terminates participation in the Plan, is no longer an Eligible Employee, or the Plan is terminated.

     (a) A Participant’s payroll deduction authorization shall be automatically renewed effective
on the Offering Date following the conclusion of his or her initial Purchase Period and each
subsequent Purchase Period, unless the Participant otherwise notifies the Plan Administrator in the
manner specified by the Plan Administrator at least 10 days in advance of such date.

     (b) Notwithstanding the foregoing, an Eligible Employee shall not be eligible to purchase
shares of Common Stock under the Plan if, on the Purchase Date, the Eligible Employee owns, or
could own if the Eligible Employee exercised his or her purchase right under the Plan on such
Purchase Date, stock possessing 5% or more of the total combined voting power or value of all
classes of stock of the Company or any Subsidiary. For purposes of this paragraph (b), the rules of
Code Section 424(d) shall apply in determining the stock ownership of an individual, and stock that
an Eligible Employee may purchase under outstanding options shall be treated as stock owned by the
Eligible Employee.

     (c) Notwithstanding the foregoing, an Eligible Employee shall not be permitted to elect
participation in the Plan for the next two full Purchase Periods immediately following his or her
sale, transfer (including transfer to a different brokerage account or withdrawal from the
Participant’s Plan Account), or other disposition of Common Stock that was acquired within one year
of the Purchase Date applicable to that Common Stock.

5. Payroll Deductions. An Eligible Employee may participate in the Plan only through
payroll deductions. After-tax payroll deductions shall be made from the Compensation paid to each
Participant for each Purchase Period in such whole percentage from 1% to 10% as the Participant
shall authorize in his or her election form. No Eligible Employee may be granted the right to
purchase more than $25,000 of Fair Market Value (determined as of the Purchase Date) of Common
Stock under the Plan, and any other stock purchase plan of the Company or any Subsidiary that is
qualified under Code Section 423, in any calendar year.

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6. Changes in Payroll Deductions. A Participant may not increase or decrease the amount of his or
her payroll deductions during a Purchase Period. A Participant may change his or her payroll
deductions effective as of a subsequent Purchase Period by notifying the Plan Administrator in the
manner specified by the Plan Administrator at least 10 days in advance of the next Offering Date.

7. Termination of Participation in Plan.

     (a) A Participant may, for any reason and at any time prior to each Purchase Date, voluntarily
terminate participation in the Plan by notifying the Plan Administrator in a reasonable time and
manner prior to the Purchase Date. Such Participant’s payroll deductions under the Plan shall cease
as soon as practicable following delivery of such notice. If the former Participant remains
employed by the Company or any Designated Subsidiary after termination of his or her participation
in the Plan, any payroll deductions credited to such Participant’s Plan Account may be used to
purchase shares of Common Stock on the next Purchase Date or refunded, without interest, to the
Participant, at the election of the Participant. Participants must notify the Plan Administrator
of any request for a refund at least 20 days prior to the Purchase Date. An Eligible Employee whose
participation in the Plan is terminated may rejoin the Plan no earlier than the beginning of the
Purchase Period next following his or her withdrawal, by delivering a new payroll deduction
authorization in accordance with Section 4.

     (b) A Participant’s participation in the Plan shall terminate upon termination of his or her
employment with the Company and its Designated Subsidiaries, or termination of status as an
Eligible Employee, for any reason. If a former Participant is no longer employed by the Company or
any Designated Subsidiary for any reason, including Disability or Retirement, any payroll
deductions credited to his or her Plan Account may be used to purchase shares of Common Stock on
the next Purchase Date, or refunded (subject to the 20 day advance notice requirement described in
Section 7(a)), without interest, to the Participant, at the election of the Participant (or, in the
event of the Participant’s death or Disability, the Participant’s Beneficiary), soon as practicable
following his or her termination of employment.

8. Purchase of Shares.

     (a) On each Purchase Date, each Participant shall be deemed to have been granted an Option. In
no event will a Participant be deemed to have been granted more than one Option during any Purchase
Period.

     (b) On the Purchase Date of a Purchase Period, each Participant shall be deemed, without any
further action, to have purchased that number of whole and fractional shares of Common Stock
determined by dividing the balance in the Participant’s Plan Account on the Purchase Date by the
Purchase Price (ractional shares will be calculated to the third decimal place). Except as provided
in Sections 13 and 18, in no event may a Participant purchase shares of Common Stock prior to the
Purchase Date of a Purchase Period.

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     (c) As soon as practicable after each Purchase Date, a statement shall be delivered to each
Participant that shall include the number of shares of Common Stock purchased on the Purchase Date
on behalf of such Participant under the Plan.

     (d) As of the Purchase Date of each Purchase Period, the Common Stock purchased by each
Participant shall be considered to be issued and outstanding to his or her credit as a bookkeeping
entry maintained by the Custodian in the Participant’s Plan Account. Subject to the restrictions of
Section 4(c) above, a stock certificate for shares of Common Stock credited to a Participant’s Plan
Account shall be issued upon request of the Participant at any time. Stock certificates under the
Plan shall be issued, at the election of the Participant, in the Participant’s name or in his or
her name and the name of another person as joint tenants with right of survivorship or as tenants
in common. A cash payment shall be made for any fraction of a share in such Plan Account, if
necessary to close the Plan Account.

9. Rights as a Share Owner. A Participant shall not be treated as the owner of Common
Stock until the Purchase Date of such stock under the Plan. As of the Purchase Date a Participant
shall be treated as the record owner of his or her shares purchased on such date pursuant to the
Plan. Unless the Participant elects otherwise in the time and manner specified by the Plan
Administrator, any dividends paid in respect of Common Stock purchased by a Participant under the
Plan and credited to his or her Plan Account will be reinvested in Common Stock in accordance with
procedures established by the Company.

10. Rights Not Transferable. Rights under the Plan are not transferable by a Participant
other than by will or the laws of descent and distribution, and are exercisable during the
Participant’s lifetime only by the Participant or by the Participant’s guardian or legal
representative. No rights or payroll deductions of a Participant shall be subject to execution,
attachment, levy, garnishment or similar process.

11. Application of Funds. All funds of Participants received or held by the Company under
the Plan before purchase of the shares of Common Stock shall be held by the Company without
liability for interest or other increment

12. Administration of the Plan. The Plan shall be administered by the Plan Administrator.
The Plan Administrator shall have authority to make rules and regulations for the administration of
the Plan, and its interpretations and decisions with regard to the Plan and such rules and
regulations shall be final and conclusive. It is intended that the Plan shall at all times meet the
requirements of Code Section 423, if applicable, and the Plan Administrator shall, to the extent
possible, interpret the provision of the Plan so as to carry out such intent.

13. Change of Control Provisions.

     (a) Notwithstanding any other provision of the Plan to the contrary, in the event of a Change
in Control, each Option outstanding under the Plan shall be assumed or an equivalent option shall
be substituted by the successor corporation or a parent or subsidiary of such successor
corporation. If the successor corporation refuses or is unable to assume or substitute for
outstanding Options, each Purchase Period then in progress shall be shortened and a new

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Purchase Date shall be set (the “New Purchase Date”), as of which date any Purchase Period
then in progress will terminate. The New Purchase Date shall be on or immediately before the
effective time of the Change in Control, the Plan Administrator shall notify each Participant in
writing, at least 10 days before the New Purchase Date, that the Purchase Date for his or her
Option has been changed to the New Purchase Date, and that the Participant’s Option will be
exercised automatically on the New Purchase Date unless the Participant has withdrawn from the
Purchase Period before the New Purchase Date, as provided in Section 7.

     (b) For purposes of the Plan, a “Change in Control” shall mean the happening of any of the
following events:

          (i) An acquisition after the Effective Date by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (a)
the then outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”)
or (b) the combined voting power of the then outstanding voting securities of the Company entitled
to vote generally in the election of directors (the “Outstanding Company Voting Securities”);
excluding, however, the following: (1) any acquisition directly from the Company, other than an
acquisition by virtue of the exercise of a conversion privilege unless the security being so
converted was itself acquired directly from the Company or approved by the Incumbent Board (as
defined below), (2) any acquisition by the Company, (3) any acquisition by any employee benefit
plan (or related trust) sponsored or maintained by the Company or any entity controlled by the
Company, (4) any acquisition by an underwriter temporarily holding Company securities pursuant to
an offering of such securities, or (5) any acquisition pursuant to a transaction that complies with
clauses (1), (2) (3) of subsection (iii) of this Section 13; or

          (ii) A change in the composition of the Board such that the individuals who, as of the
Effective Date, constitute the Board (such Board shall be hereinafter referred to as the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board; provided, however, for
purposes of this Section 13, that any individual who becomes a member of the Board subsequent to
the Effective Date, whose election, or nomination for election by the Company’s share owners, was
approved by a vote of at least a majority of those individuals who are members of the Board and who
were also members of the Incumbent Board (or deemed to be such pursuant to this proviso), either by
a specific vote or by approval of the proxy statement of the Company in which such person is named
as a nominee for director, without written objection to such nomination shall be considered as
though such individual were a member of the Incumbent Board; but, provided further, that any such
individual whose initial assumption of office occurs as a result of either an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be
so considered as a member of the Incumbent Board; or

          (iii) Consummation of a reorganization, merger or consolidation (or similar transaction), a
sale or other disposition of all or substantially all of the assets of the Company, or the
acquisition of assets or stock of another entity (“Corporate Transaction”); in each case, unless

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immediately following such Corporate Transaction (1) all or substantially all of the
individuals and entities who are the beneficial owners, respectively, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities immediately prior to such Corporate
Transaction will beneficially own, directly or indirectly, more than 60% of, respectively, the
outstanding shares of common stock, and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case may be, of the
corporation resulting from such Corporate Transaction (including, without limitation, a corporation
which as a result of such transaction owns the Company or all or substantially all of the Company’s
assets either directly or through one or more subsidiaries) in substantially the same proportions
as their ownership, immediately prior to such Corporate Transaction, of the Outstanding Company
Common Stock and Outstanding Company Voting Securities, as the case may be, (2) no Person (other
than the Company, any employee benefit plan (or related trust) the Company or such corporation
resulting from such Corporate Transaction) will beneficially own, directly or indirectly, 20% or
more of, respectively, the outstanding shares of common stock of the corporation resulting from
such Corporate Transaction or the combined voting power of the outstanding voting securities of
such corporation entitled to vote generally in the election of directors, except to the extent that
such ownership existed prior to the Corporate Transaction, and (3) individuals who were members of
the Incumbent Board at the time of the Board’s approval of the execution of the initial agreement
providing for such Corporate Transaction will constitute at least a majority of the members of the
board of directors of the corporation resulting from such Corporate Transaction; or

          (iv) The approval by the share owners of the Company of a complete liquidation or dissolution
of the Company.

14. Adjustments in Case of Changes Affecting Shares. In the event of any dividend or other
distribution (whether in the form of cash, Common Stock, other securities, or other property),
recapitalization, stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase, Change in Control or exchange of Common Stock or other
securities of the Company, or other corporate transaction or event that affects the Common Stock:
(a) the number of shares of Common Stock approved for the Plan shall be increased or decreased
proportionately, and (b) the Board may determine, in its sole discretion, that an adjustment is
necessary or appropriate in order to prevent dilution or enlargement of benefits or potential
benefits intended to be made available under the Plan.

15. No Corporate Action Restriction. The existence of the Plan and/or the Options granted
hereunder shall not limit, affect or restrict in any way the right or power of the Board or the
Company’s share owners to make or authorize (a) any adjustment, recapitalization, reorganization or
other change in the Company’s or any Subsidiary’s capital structure or its business, (b) any
merger, consolidation or change in the ownership of the Company or any Subsidiary, (c) any issue of
bonds, debentures, capital, preferred or prior preference stocks ahead of or affecting the
Company’s or any Subsidiary’s capital stock or the rights thereof, (d) any dissolution or
liquidation of the Company or any Subsidiary, (e) any sale or transfer of all or any part of the
Company’s or any Subsidiary’s assets or business, or (f) any other corporate act or proceeding by
the Company or any Subsidiary. No Participant, Employee, beneficiary or any other person shall have
any claim against any member of the Board or the Committee, the Company or any Subsidiary, or any employees, officers, share owners or agents of the Company or any
Subsidiary, as a result of any such action.

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16. Notices. All notices or other communications by an Employee or Participant to the
Company under or in connection with the Plan shall be deemed to have been duly given when received
in the form specified by the Company at the location, or by the person, designated by the Company
for the receipt thereof.

17. Amendments to the Plan. The Committee may, at any time, or from time to time, amend or
modify the Plan; provided, however, that no amendment shall be made increasing or decreasing the
number of shares authorized for the Plan (other than as provided in Section 14), and that, except
to conform the Plan to the requirements of the Code, no amendment shall be made that would cause
the Plan to fail to meet the applicable requirements of Code Section 423.

18. Termination of Plan. The Plan shall terminate upon the earlier of (a) the twelfth
anniversary of the Effective Date, (b) the date no more shares of Common Stock remain to be
purchased under the Plan, or (c) the termination of the Plan by the Board as specified below. The
Board may terminate the Plan as of any date. The date of termination of the Plan shall be deemed a
Purchase Date. If on such Purchase Date Participants in the aggregate have Options to purchase
more shares of Common Stock than are available for purchase under the Plan, each Participant shall
be eligible to purchase a reduced number of shares of Common Stock on a pro rata basis, and any
excess payroll deductions shall be returned to Participants, without interest, all as provided by
rules and regulations adopted by the Plan Administrator.

19. Costs. All costs and expenses incurred in administering the Plan shall be paid by the
Company. Any costs or expenses of selling shares of Company Stock acquired pursuant to the Plan
shall be borne by the holder thereof.

20. Governmental Regulations. The Company’s obligation to sell and deliver its Common
Stock pursuant to the Plan is subject to the approval of any governmental authority required in
connection with the authorization, issuance or sale of such stock. Shares shall not be issued with
respect to an Option unless the exercise of such Option and the issuance and delivery of such
shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign,
including, without limitation, the Securities Act of 1933, as amended, the Exchange Act, state
securities laws, the rules and regulations promulgated thereunder, and the requirements of any
stock exchange upon which the shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

     As a condition to the exercise of an Option, the Company may require the person exercising
such option to represent and warrant at the time of any such exercise that the shares of Common
Stock are being purchased only for investment and without any present intention to sell or
distribute such shares if, in the opinion of counsel for the Company, such a representation is
required by any of the aforementioned applicable provisions of law.

21. Governing Law. The Plan and all actions taken thereunder shall be governed by and
construed in accordance with the laws of the United States of America and, to the extent not

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inconsistent therewith, by the laws of the State of Delaware, without reference to the principles
of conflict of laws thereof. This Plan is not to be subject to the Employee Retirement Income
Security Act of 1974, as amended, but is intended to comply with Code Section 423. Accordingly, the
provisions of the Plan shall be construed so as to extend and limit participation in a manner
consistent with the requirements of that section of the Code. Any provisions required to be set
forth in this Plan by such Code section are hereby included as fully as if set forth in the Plan in
full. Any titles and headings herein are for reference purposes only, and shall in no way limit,
define or otherwise affect the meaning, construction or interpretation of any provisions of the
Plan.

22. Effect on Employment. The provisions of this Plan shall not affect the right of the
Company or any Designated Subsidiary or any Participant to terminate the Participant’s employment
with the Company or any Designated Subsidiary.

23. Withholding. The Company reserves the right to withhold from stock or cash distributed
to a Participant any amounts that it is required by law to withhold.

24. Other Company Benefit and Compensation Programs. For purposes of the determination of
benefits under any other employee welfare or benefit plans or arrangements, if any, provided by the
Company or any Designated Subsidiary (a) any amounts deducted from a Participant’s Compensation
pursuant to the Participant’s payroll deduction election under Section 4 shall be deemed a part of
a Participant’s compensation, and (b) payments and other benefits received by a Participant under
an Option shall not be deemed a part of a Participant’s compensation, unless expressly provided in
such other plans or arrangements, or except where the Board expressly determines in writing. The
existence of the Plan notwithstanding, the Company or any Designated Subsidiary may adopt such
other compensation plans or programs and additional compensation arrangements as it deems necessary
to attract, retain and motivate employees.

25. Effective Date. The Plan, as amended, shall be effective January 1, 2008.

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EXHIBIT 10.23

1993 KELLOGG EMPLOYEE STOCK OWNERSHIP PLAN

ARTICLE I

Purpose

The purpose of this 1993 Kellogg Employee Stock Ownership Plan (the “Plan”) is to enable Kellogg
Company (the “Company”) to offer employees of the Company and Designated Subsidiaries (defined
below) who are not eligible to participate in the Company’s Key Employee Long Term Incentive Plan
stock options to purchase shares of Company Common Stock (defined below) or other incentive awards,
thereby attracting, retaining and rewarding such employees, and strengthening the mutuality of
interests between employees and the Company’s stockholders. The Plan is intended as a means by
which such employees can enlarge their proprietary interest in the Company, thereby encouraging the
judgment, initiative and efforts of such employees for the successful conduct of the Company’s
business.

ARTICLE II

Definitions

For purposes of this Plan, the following terms shall have the following meanings:

2.1 “Administrative Committee” shall mean the Administrative Committee of the Company consisting of
two or more officers or executives (who may be non-officers) of the Company appointed by the Chief
Executive Officer of the Company, none of whom shall be eligible to receive any Award pursuant to
this Plan.

2.2 “Award” shall mean any award under this Plan of any Stock Option or Other Incentive Award.

2.3 “Board” shall mean the Board of Directors of the Company.

2.4 “Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations and rules
thereunder.

2.5 “Committee” shall mean the Compensation Committee of the Board of Directors of the Company
consisting of two or more directors of the Company, none of whom shall be eligible to receive any
Award pursuant to this Plan.

2.6 “Common Stock” or “Stock” means the Common Stock, $0.25 par value per share, of the Company.

2.7 “Designated Subsidiary” shall mean one of such subsidiaries of the Company, fifty percent (50%)
or more of the voting capital stock of which is owned, directly or indirectly, by the Company,
which is specifically designated from time to time by the Committee or the Board.

2.8 “Disability” shall mean Total Disability as defined in the Company’s Long Term Disability Plan.

2.9 “Fair Market Value” of a share of Common Stock means, with respect to any date, the officially
quoted closing price of the Common Stock on the New York Stock Exchange—Composite Transactions Tape
on such date, provided that if there shall be no sales of shares reported on such date, the Fair
Market Value of a share of Common Stock on such date shall be deemed to be the officially quoted
closing price of the Common Stock on such Composite Tape for the last preceding date on which sales
of shares were reported.

2.10 “Non-Qualified Stock Option” shall mean any Stock Option which does not comply with the
requirements of Section 422 of the Code, or any successor provision.

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2.11 “Other Incentive Award” shall mean an Award under Article 7 of this Plan that is valued in
whole or in part by reference to, or is payable in or otherwise based on, Common Stock or an Award
based on Company and/or subsidiary performance including, without limitation, bonus stock,
performance shares, performance units or stock appreciation rights.

2.12 “Participant” shall mean an employee to whom an Award has been made pursuant to this Plan.

2.13 “Retirement” shall mean termination of employment by an employee who is at least 55 years of
age after at least 5 years of employment by the Company and/or a Designated Subsidiary.

2.14 “Stock Option” or “Option” shall mean any option to purchase shares of Common Stock granted
pursuant to Article 6.

2.15 “Termination of employment” shall mean a termination of service for reasons other than a
military or personal leave of absence granted by the Company.

2.16 “Withholding Election” shall have the meaning set forth in Section 10.4.

ARTICLE III

ADMINISTRATION

3.1 The Committee. The Plan shall be administered and interpreted by the Committee and/or the
Administrative Committee, as provided for by the following sentence. The Committee may delegate
some or all of its powers and authority hereunder to the Administrative Committee, as the Committee
may from time to time deem appropriate, consistent with the requirements of the Delaware General
Corporation Law. With respect to matters so delegated hereunder to the Administrative Committee,
the term “Committee” as used herein shall be deemed to mean the Administrative Committee.

3.2 Awards. The Committee shall have full authority to grant, pursuant to the terms of this Plan,
to employees eligible under Article 5: (i) Stock Options, and (ii) Other Incentive Awards. In
particular, the Committee shall have the authority:

(a) to select the eligible employees of the Company to whom Stock Options and Other Incentive
Awards may from time to time be granted hereunder;

(b) to determine whether and to what extent Stock Options and Other Incentive Awards, or any
combination thereof, are to be granted hereunder to one or more eligible employees;

(c) to determine the number of shares of Common Stock, if any, to be covered by each such Award
granted hereunder;

(d) to determine the terms and conditions, not inconsistent with the terms of this Plan, of any
Award granted hereunder (including, but not limited to, the share price, any restriction or
limitation, any vesting schedule or acceleration thereof, or any forfeiture restrictions or waiver
thereof, regarding any Stock Option or Other Incentive Award and the shares of Common Stock
relating thereto, based on such factors as the Committee shall determine, in its sole discretion);

(e) to determine whether, to what extent and under what circumstances grants of Options and Other
Incentive Awards under this Plan are to operate on a tandem basis and/or in conjunction with or
apart from other cash awards made by the Company outside of this Plan;

(f) to determine whether and under what circumstances an Award may be settled in cash or Common
Stock under Subsection 6.3(j);

(g) to determine whether, to what extent and under what circumstances Common Stock and other
amounts payable with respect to an Award under this Plan shall be deferred either automatically or
at the election of the Participant;

(h) to authorize foreign Designated Subsidiaries to adopt plans as provided in Section 5.2 hereof;
and

2

 

(i) to determine the terms and conditions of Awards for, and to make such adjustments or
modifications to Awards to, Participants working outside the United States as are necessary and
advisable to fulfill the purposes of this Plan.

3.3 Guidelines. The Committee shall have the authority (a) to adopt, alter and repeal such
administrative rules, guidelines and practices governing this Plan (“Guidelines”) as it shall, from
time to time, deem advisable; (b) to interpret the terms and provisions of this Plan, the
Guidelines and any Award issued under this Plan (and any agreements relating thereto); and (c) to
otherwise supervise the administration of this Plan. The Guidelines may specify such additional
terms and conditions applicable to Awards under this Plan which the Committee in its discretion
determines to be appropriate and not inconsistent with the terms of this Plan, including such terms
and conditions as it may deem necessary or desirable to make available tax or other benefits of the
laws of any foreign jurisdiction to Participants who are subject to such laws or to the Company or
any of its Designated Subsidiaries. The Committee may correct any defect, supply any omission or
reconcile any inconsistency in this Plan or in any Award granted in the manner and to the extent it
shall deem necessary to carry this Plan into effect. Notwithstanding the foregoing, except as
permitted by Section 8.1 and the Plan provisions referred to therein, no action of the Committee
under this Section 3.3 shall impair the rights of any Participant with respect to any outstanding
Award without the Participant’s consent.

3.4 Decisions Final. Any decision, interpretation or other action made or taken in good faith by
the Committee arising out of or in connection with the Plan shall be final, binding and conclusive
on the Company and all employees and their respective heirs, executors, administrators, successors
and assigns. Determinations by the Committee under this Plan, including without limitation
determinations of employee eligibility, the form, amount and timing of Awards, the terms and
provisions of Awards, and the agreements evidencing Awards, need not be uniform and may be made
selectively among eligible employees who receive or are eligible to receive Awards hereunder,
whether or not such eligible employees are similarly situated.

ARTICLE IV

SHARE LIMITATION

4.1 Shares. The maximum aggregate number of shares of Common Stock which may be issued under this
Plan shall not exceed six million (6,000,000) shares (subject to any increase or decrease pursuant
to Section 4.2) which may be either authorized and unissued Common Stock or issued Common Stock
reacquired by the Company or both. If any Option or Other Incentive Award granted under this Plan
shall expire, terminate, be forfeited or be canceled for any reason without having been exercised
in full, the number of unpurchased shares thereunder shall again be available for the purposes of
the Plan; provided, however, that if such expired, terminated, forfeited or canceled Option or
Other Incentive Award shall have been issued in conjunction with another Award, none of such
unpurchased shares thereunder shall again become available for purposes of this Plan to the extent
that the related Award granted under this Plan is exercised. If an Option is exercised using Common
Stock already owned by the Participant who is exercising the Option, the number of shares that
shall be treated as issued under the Plan shall be (i) the number of shares issued minus (ii) the
number of shares exchanged in satisfaction of the Option Price, and the number of shares so
exchanged shall be added to the total number of shares of Common Stock available under the Plan.
Further, if any shares of Common Stock granted hereunder are forfeited or such Award otherwise
terminates without the delivery of such shares upon the lapse of restrictions, the shares subject
to such grant, to the extent of such forfeiture or termination, shall again be available under this
Plan.

4.2 Changes. In the event of any merger, reorganization, consolidation, recapitalization, dividend
(other than a dividend or its equivalent which is credited to a Plan Participant or a regular cash
dividend), stock split, issuance of warrants, rights or convertible securities or other material
change in corporate structure affecting the Common Stock, such substitution or adjustment shall be
made in the maximum aggregate number of shares which may be issued under this Plan, in the number
and option price of shares subject to outstanding Options granted under this Plan, and in the
number of shares subject to other outstanding Awards granted under this Plan, as may be determined
to be appropriate by the Committee, in its sole discretion, provided that the number of shares
subject to any Award shall always be a whole number.

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4.3 Grant Date. The date of grant of an Award under this Plan shall be the date on which the
Committee grants the Award or such later date as is specified in advance by the Committee.

ARTICLE V

ELIGIBILITY

5.1 Eligible Employees. Employees of the Company and its Designated Subsidiaries, who (a) are
neither an officer nor a director of the Company, and
(b) are not eligible to participate in the Company’s Key Employee Long Term Incentive Plan or any
subsequent or successor plan intended to provide similar benefits, are eligible to be granted
Options and other Awards under this Plan. Eligibility under this Plan shall be determined by the
Committee in its sole discretion.

5.2 Foreign Equity Incentive Plans. The Committee may from time to time authorize any foreign
Designated Subsidiary to adopt a plan for granting Awards (a “Foreign Equity Incentive Plan”). All
awards granted under such Foreign Equity Incentive Plans shall be treated as Awards under this Plan
and must have the prior approval of the Committee. Such Foreign Equity Incentive Plans shall have
such terms and provisions as the Committee permits not inconsistent with the provisions of this
Plan and which may be more restrictive than those contained herein. Awards granted under such
Foreign Equity Incentive Plans shall be governed by the terms of this Plan except to the extent
that the provisions of the Foreign Equity Incentive Plans are more restrictive than the terms of
this Plan, in which case such terms of the Foreign Equity Incentive Plans shall control. This Plan
shall be deemed to include any such authorized Foreign Equity Incentive Plans, which together with
this Plan shall constitute one Plan.

ARTICLE VI

STOCK OPTIONS

6.1 Options. Stock Options may be granted alone or in addition to other Awards granted under this
Plan. Each Stock Option granted under this Plan shall be a Non-Qualified Stock Option.

6.2 Grants. The Committee shall have the authority to grant to any Participant one or more
Non-Qualified Stock Options.

6.3 Terms of Options. Stock Options granted under this Plan shall be subject to the following terms
and conditions and shall be in such form and contain such additional terms and conditions, not
inconsistent with the terms of this Plan, as the Committee shall deem desirable:

(a) Option Price. The option price per share of Common Stock purchasable under a Stock Option shall
be determined by the Committee on or before the date of grant but shall be not less than 100% of
the Fair Market Value of the Common Stock on the date of grant.

(b) Option Term. The term of each Stock Option shall be fixed by the Committee, but no Stock Option
shall be exercisable more than ten years and one day after the date the Option is granted.

(c) Exercisability. Stock Options shall be exercisable at such time or times and subject to such
terms and conditions as shall be determined by the Committee at grant; provided, however, that the
Committee may waive such installment exercise provisions at any time at or after grant in whole or
in part, based on such factors as the Committee shall determine, in its sole discretion. The
Committee may limit the number of times that Participants may exercise their Options in any
calendar year or other relevant period.

(d) Method of Exercise. Subject to whatever installment exercise and waiting period provisions
apply under subsection (c) above, Stock Options may be exercised in whole or in part at any time
during the option term, by giving written notice of exercise to the Company specifying the number
of shares to be purchased. Such notice shall be accompanied by payment in full of the purchase
price in such form as the Committee may accept. At or after grant, the Committee, in its sole
discretion, may permit payment in full or in part of the option price in the form of Common Stock
duly owned by the Participant (and for

4

 

which the Participant has good title free and clear of any liens and encumbrances) based on the
Fair Market Value of the Stock on the date of exercise as determined by the Committee. No shares of
Stock shall be issued under any Stock Option until payment therefor, as provided herein, has been
made. A Participant shall generally have the rights to dividends or other rights of a stockholder
with respect to shares subject to the Option only when the Participant has given written notice of
exercise, has paid for such shares as provided herein, and, if requested, has given the
representation described in Section 10.1 hereof. A Participant may exercise a Stock Option with
respect to such minimum number of shares or such minimum percentage of each Stock Option Award as
may be determined from time to time by the Committee, but a Participant must exercise the Stock
Option in full shares of Common Stock and no fractional shares shall be issued as a result of
exercising an Option.

(e) Non-Transferability of Options. Except as provided in Section 10.5 hereof, no Stock Option
shall be transferable by the Participant otherwise than by will or by the laws of descent and
distribution, and all Stock Options shall be exercisable, during the Participant’s lifetime, only
by the Participant.

(f) Termination by Death. If a Participant’s employment by the Company or a Designated Subsidiary
terminates by reason of death, any Stock Option held by such Participant may terminate, become
fully vested or continue to vest as determined by the Committee in the Option Agreement and may
thereafter (if not terminated) be exercised by the legal representative of the estate for a period
following the date of such death to the extent so specified.

(g) Termination by Reason of Disability. If a Participant’s employment by the Company or a
Designated Subsidiary terminates by reason of Disability, any Stock Option held by such Participant
may terminate, become fully vested or continue to vest as determined by the Committee in the Option
Agreement and may thereafter (if not terminated) be exercised by the Participant for a period
following the date of such termination of employment to the extent so specified; provided, however,
that, if the Participant dies within the exercise period described in the preceding sentence, any
unexercised Stock Option held by such Participant may thereafter be exercisable, to the extent to
which it was exercisable at the time of death, for a period determined at grant by the Committee.

(h) Termination by Reason of Retirement. If a Participant’s employment by the Company or a
Designated Subsidiary terminates by reason of Retirement, any Stock Option held by such Participant
may terminate, become fully vested or continue to vest as determined by the Committee in the Option
Agreement and may thereafter (if not terminated) be exercised by the Participant for a period
following the date of such termination of employment to the extent so specified; provided, however,
that, if the Participant dies within the exercise period described in the preceding sentence, any
unexercised Stock Option held by such Participant may thereafter be exercisable, to the extent to
which it was exercisable at the time of death, for a period determined at grant by the Committee.

(i) Other Termination. Subject to the applicable provisions of the Award agreement and this Article
6, if a Participant’s employment by the Company terminates for any reason other than death,
Disability or Retirement, any Stock Options held by such participant shall thereupon terminate,
vest, continue to vest, or remain exercisable for a fixed period in accordance with the terms and
conditions established by the Committee in the Option Agreement or as the Committee may determine
thereafter.

(j) Buy Out of Options. The Committee shall have the right, at any time, in its sole discretion and
without the consent of the Award holder, to buy out any Option previously granted based on such
terms and conditions as the Committee shall establish and communicate to the Participant at the
time that such offer is made. In no event shall the Company be required to deliver a fractional
share of Common Stock in satisfaction of this buyout provision. Payments of any such buyout amounts
shall be made net of any applicable foreign, federal (including FICA), state and local withholding
taxes.

(k) Agreement. Each Stock Option Award shall be evidenced by, and subject to the terms of, a Stock
Option agreement executed by the Company and the Participant.

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ARTICLE VII

OTHER INCENTIVE AWARDS

7.1 Other Incentive Awards. If deemed necessary or desirable by the Committee, in its sole
discretion, in order to comply with, or obtain approval, qualification or exemption under, any
applicable tax or other laws of any foreign jurisdiction, the Committee may grant (a) incentive
awards that are valued in whole or in part by reference to, or are made payable in or otherwise
based on Common Stock, and/or (b) incentive awards that are valued in whole or in part by reference
to or otherwise based on Company and/or subsidiary performance, including under (a) or (b), without
limitation, Awards of bonus stock, performance shares, performance units or stock appreciation
rights (the Awards described in this Section 7.1 being collectively referred to herein as “Other
Incentive Awards”). Other Incentive Awards may be granted either alone or in tandem with Stock
Options, as the Committee shall determine.

Subject to the provisions of this Plan, the Committee shall have authority to determine the persons
to whom and the time or times at which such Other Incentive Awards shall be made, the number of
shares of Common Stock (if any) to be awarded pursuant to such Other Incentive Awards, and all
other conditions of the Other Incentive Awards. The Committee may also provide for the grant of
Common Stock or cash, or a combination of both, under such Other Incentive Awards upon the
completion of a specified performance period or otherwise. The Committee shall have full authority
to amend the terms of any outstanding Other Awards prospectively or retroactively so as to comply
with, or obtain approval, qualification or exemption under, any applicable tax or other laws of any
foreign jurisdiction.

The provisions of Other Incentive Awards need not be the same with respect to each Participant and
such Awards to individual Participants need not be the same in subsequent years.

7.2 Terms and Conditions. Other Incentive Awards made pursuant to this Article 7 shall be subject
to the following terms and conditions and such additional terms and conditions as may be contained
in the Guidelines or the agreement referred to in Section 7.2(e):

(a) Non-Transferability. Subject to the provisions of this Plan and the Award agreement referred to
in subsection (e) below, neither the Awards nor shares of Common Stock subject to Awards made under
this Article 7 may be sold, assigned, transferred, pledged or otherwise encumbered except that the
shares of Common Stock may be free of such restriction after the date on which the shares are
issued, or, if later, the date on which any applicable restriction, performance or deferral period
lapses.

(b) Dividends. If so determined by the Committee at the time of Award, subject to the provisions of
this Plan and the Award agreement, the recipient of an Award under this Article 7 shall be entitled
to receive, currently or on a deferred basis, dividends or dividend equivalents with respect to the
number of shares of any Common Stock covered by the Award, as determined at the time of the Award
by the Committee, in its sole discretion.

(c) Vesting. Any Award granted under this Article 7 and any Common Stock covered by any such Award
shall vest or be forfeited to the extent so provided in the Award agreement, as determined by the
Committee, in its sole discretion.

(d) Waiver of Limitation. In the event of the Participant’s Retirement, Disability or death, or in
cases of special circumstances, the Committee may, in its sole discretion, waive in whole or in
part any or all of the limitations imposed hereunder (if any) with respect to any or all of an
Award under this Article 7.

(e) Agreement. Each Award granted under this Article 7 shall be evidenced by, and subject to the
terms of, an agreement or other instrument executed by the Company and the Participant.

(f) Price. Common Stock awarded on a bonus basis under this Article 7 may be awarded for no cash
consideration. Common Stock purchased pursuant to a purchase right awarded under this Article 7
shall be priced as determined by the Committee.

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ARTICLE VIII

TERMINATION OR AMENDMENT OF THE PLAN

8.1 Termination or Amendment. The Board or the Committee may at any time amend, discontinue or
terminate this Plan or any part hereof including, without limitation, any amendment deemed
necessary by the Board or the Committee, as the case may be, in its sole discretion to ensure that
the Company complies with any applicable law or regulatory requirement; provided, however, that,
unless otherwise required by, or deemed necessary under, applicable law or regulation, the rights
of a Participant with respect to Options or Other Incentive Awards granted prior to such amendment,
discontinuance or termination, may not be impaired without the consent of such Participant.

The Committee may amend the terms of any Stock Option or Other Incentive Award theretofore granted,
prospectively or retroactively, but, subject to Article 4, Section 7.1 and the proviso in the
preceding paragraph above, no such amendment or other action by the Committee shall impair the
rights of any Participant without the Participant’s consent.

ARTICLE IX

UNFUNDED PLAN

9.1 Unfunded Status of Plan. This Plan is intended to constitute an “unfunded” plan for incentive
and deferred compensation. With respect to any payments not yet made to a Participant by the
Company, nothing contained herein shall give any such Participant any rights that are greater than
those of a general creditor of the Company.

ARTICLE X

GENERAL PROVISIONS

10.1 Legend. The Committee may require each person purchasing or otherwise receiving shares
pursuant to a Stock Option or Other Incentive Award under the Plan to represent to and agree with
the Company in writing that the Participant is acquiring the shares without a view to distribution
thereof. The Committee may require any other investment intent representations it deems necessary
in order to comply with applicable laws and regulations. In addition to any legend required by this
Plan, the certificates for such shares and certificates representing any Award may include any
legend which the Committee deems appropriate to reflect any restrictions on transfer.

All certificates for shares of Common Stock delivered under the Plan shall be subject to such stock
transfer orders and other restrictions as the Committee may deem advisable under the rules,
regulations and other requirements of the Securities and Exchange Commission, any stock exchange
upon which the Stock is then listed, any applicable Federal or state securities law, any applicable
corporate law, and any applicable foreign law, and the Committee may cause a legend or legends to
be put on any such certificates to make appropriate reference to such restrictions.

10.2 Other Plans. Nothing contained in this Plan shall prevent the Board from adopting other or
additional compensation arrangements, subject to stockholder approval if such approval is required;
and such arrangements may be either generally applicable or applicable only in specific cases.

10.3 No Right to Employment; Agreement to Serve. Neither this Plan nor the grant of any Option or
Other Incentive Award hereunder shall give any Participant or other employee any right with respect
to continuance of employment by, or length of employment with, the Company or any subsidiary, nor
shall there be a limitation in any way on the right of the Company or any subsidiary by which an
employee is employed to terminate his employment at any time. Unless otherwise determined by the
Committee on the date of grant, each Participant who is granted an Award shall, by executing such
Participant’s Award Agreement, agree that, as a condition of his Award, such Participant shall
remain in the employ of the Company or any of its Designated Subsidiaries for at least one year
after the date of grant of the Award.

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10.4 Withholding of Taxes. The Company shall have the right to deduct from any payment to be made
pursuant to this Plan, or to otherwise require, prior to the issuance or delivery of any shares of
Common Stock or the payment of any cash hereunder, payment by the Participant of, any Federal,
state, local, or foreign taxes required by law to be withheld.

Subject to any terms and conditions which the Committee may impose, the Committee may permit any
such withholding obligation to be satisfied by reducing the number of shares of Common Stock
otherwise deliverable.

10.5 No Assignment of Benefits. Except as otherwise specifically provided in this Plan, no Option,
Award or other benefit payable under this Plan shall be subject in any manner to anticipation,
alienation, attachment, sale, transfer, assignment, pledge, encumbrance or charge, and any attempt
to anticipate, alienate, attach, sell, transfer, assign, pledge, encumber or charge any such
benefit shall be void, and any such benefit shall not in any manner be liable for or subject to the
debts, contracts, liabilities, engagements or torts of any person who shall be entitled to such
benefit, nor shall it be subject to attachment or legal process for or against such person;
provided, however, that a Participant may, in a manner specified by the Committee and to the extent
provided in an Award agreement, designate in writing a beneficiary to exercise his Awards after the
Participant’s death.

10.6 Listing and Other Conditions.

(a) As long as the Common Stock is listed on the New York Stock Exchange or a national securities
exchange or system sponsored by a national securities association, the issue of any shares of
Common Stock pursuant to an Option or Other Incentive Award shall be conditioned upon such shares
being listed on such exchange or system and any applicable listing requirements having been met.
The Company shall have no obligation to issue such shares unless and until such shares are so
listed, and the right to exercise any Option or Other Incentive Award with respect to such shares
shall be suspended until such listing has been effected.

(b) If at any time counsel to the Company shall be of the opinion that any sale or delivery of
shares of Common Stock pursuant to an Option or Other Incentive Award is or may in the
circumstances be unlawful, not in compliance with any applicable regulation, rule or order or
result in the imposition of excise taxes or penalties under the statutes, rules or regulations of
any applicable jurisdiction, the Company shall have no obligation to make such sale or delivery, or
to make any application or to effect or to maintain any qualification or registration under the
Securities Act of 1933, as amended, or other applicable law with respect to shares of Common Stock
or Awards, and the right to exercise any Option or Other Incentive Award shall be suspended until,
in the opinion of said counsel, such sale or delivery shall be lawful, in compliance with such
applicable regulations, rules or orders and free of such excise taxes or penalties.

(c) Upon termination of any period of suspension under this Section 10.6, any Award affected by
such suspension which shall not then have expired or terminated shall be reinstated as to all
shares available before such suspension and as to shares which would otherwise have become
available during the period of such suspension, but no such suspension shall extend the term of any
Option.

10.7 Governing Law. This Plan and actions taken in connection herewith shall be governed and
construed in accordance with the laws of the State of Delaware (regardless of the law that might
otherwise govern under applicable Delaware principles of conflict of laws).

10.8 Construction. Wherever any words are used in this Plan in the masculine gender they shall be
construed as though they were also used in the feminine gender in all cases where they would so
apply, and wherever any words are used herein in the singular form they shall be construed as
though they were also used in the plural form in all cases where they would so apply.

10.9 Liability of Committee. No member of the Board of Directors or of the Committee nor any
employee of the Company shall be liable for any act or action hereunder, whether of omission or
commission, by any other member or employee or by any agent to whom duties in connection with the
administration of the

8

 

Plan have been delegated or, except in circumstances involving his bad faith, gross negligence or
fraud, for anything done or omitted to be done by himself.

10.10 Other Benefits. No Award payment under this Plan shall be deemed compensation for purposes of
computing benefits under any retirement plan of the Company or its subsidiaries nor affect any
benefits under any other benefit plan (including but not limited to life insurance programs) now or
subsequently in effect under which the availability or amount of benefits is related to the level
of compensation.

10.11 Costs. The Company shall bear all expenses incurred in administering this Plan, including
expenses of issuing Common Stock pursuant to any Awards hereunder; provided, however, that, unless
the Committee determines otherwise, any commissions, charges, taxes or other amounts of any kind or
nature incurred by a Participant in receiving or exercising his Award, selling shares under an
Award, obtaining share certificates or otherwise, shall be the sole responsibility of such
Participant.

10.12 Limitations. No eligible employee shall be granted Awards under this Plan permitting the
purchase in the aggregate of more than 2% of the shares covered by this Plan.

10.13 Notification Under Section 83(b). The Committee may, on the date of grant of an Award or any
later date, prohibit a Participant from making the election described below in this Section 10.13.
If the Committee has not prohibited such Participant from making such election, and the Participant
shall, in connection with the exercise of any Option, or the grant of any Other Incentive Award,
make the election permitted under Section 83(b) of the Code, or any successor provision (i.e., an
election to include in such Participant’s gross income in the year of transfer the amounts
specified in Section 83(b) of the Code), such Participant shall notify the Company of such election
within 10 days of filing notice of the election with the Internal Revenue Service, in addition to
any filing and notification required pursuant to regulations issued under the authority of Section
83(b) or any successor provision.

10.14 Misconduct. In the event a Participant has (a) used for personal gain or disclosed to
unauthorized persons any confidential or proprietary information or trade secrets of the Company or
its subsidiaries, (b) breached any agreement with, or violated any other fiduciary obligation owed
to, the Company or its subsidiaries, or (c) engaged in unlawful trading in the securities of the
Company or of its subsidiaries or of another company based on information gained as a result of
that Participant’s employment with the Company or its subsidiaries, all outstanding Awards granted
to such Participant shall automatically be terminated and forfeited unless the Committee shall, in
its discretion, determine otherwise.

10.15 No Acquired Rights. The grant of an Award to an eligible employee shall not be deemed to
create any right of such employee or any other employee to receive additional Awards in the future.

10.16 Captions. The captions to the several sections of this Plan are not a part of this Plan, but
are merely guides or labels to assist in locating the several sections hereof.

ARTICLE XI

EFFECTIVE DATE OF PLAN

This Plan shall be effective as of the date it is approved by the holders of a majority of the
issued and outstanding shares of the Company entitled to vote and present in person or represented
by proxy at a meeting of stockholders duly called in accordance with applicable law, where a quorum
is present.

ARTICLE XII

TERM OF PLAN

No Stock Option or Other Incentive Award shall be granted pursuant to this Plan on or after April
22, 2004 (the tenth anniversary of the approval of this Plan by the Stockholders of the Company),
but Awards granted prior to such date may extend beyond that date.

9

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