Document:

EX-10.1

Exhibit 10.1

NON-QUALIFIED STOCK OPTIONS

ISSUED UNDER

RYDER SYSTEM, INC. 2005 EQUITY COMPENSATION PLAN

2008 TERMS AND CONDITIONS

The following terms and conditions apply to the non-qualified stock option (“Option”) granted
by Ryder System, Inc. (the “Company”) under the Ryder System, Inc. 2005 Equity Compensation Plan
(the “Plan”), as specified in the Stock Option Award Notification (the “Notification”), to which
these terms and conditions are appended. Certain terms of the Option, including the number of
Shares subject to the Option, the exercise price, the vesting schedule and the expiration date, are
set forth in the Notification. The terms and conditions contained herein may be amended by the
Compensation Committee of the Company’s Board of Directors (the “Committee”) as permitted by the
Plan. Capitalized terms used herein and not defined shall have the meaning ascribed to such terms
in the Plan or in the Notification.

	 	1.	 	General. The Option represents the right to purchase Shares on the terms and
conditions set forth herein and in the Plan, the applicable terms, conditions and other
provisions of which are incorporated by reference herein. A copy of the Plan and the
documents that constitute the “Prospectus” for the Plan under the Securities Act of
1933, have been delivered to the Participant prior to or along with delivery of the
Notification. In the event there is an express conflict between the provisions of the
Plan and those set forth in these terms and conditions, the terms and conditions of the
Plan shall govern.

	 	2.	 	Exercisability of Option. Subject to Sections 4 and 5 below, the Option shall
vest and become exercisable pursuant to the vesting schedule set forth in the
Notification and shall remain exercisable until the expiration date set forth in the
Notification, or such other expiration date designated by the Committee pursuant to
Section 7 of the Plan (the “Expiration Date”).

	 	3.	 	Exercise Procedures. The Option, to the extent exercisable, may be exercised by
delivering to the Company’s stock administrator notice of intent to exercise in the
manner designated by the stock administrator on behalf of the Company which may vary
based on the Participant’s position with the Company. Payment of the aggregate
exercise price and applicable withholding taxes shall be made in the manner designated
by the stock administrator on behalf of the Company.

	 	4.	 	Termination of Option; Forfeiture. Notwithstanding the vesting and expiration
dates set forth in the Notification, the Option will terminate upon or following the
termination of the Participant’s employment with the Company and its Subsidiaries as
described below. For purposes of these terms and conditions, a Participant shall not
be deemed to have terminated his or her employment with the Company and its
Subsidiaries if he or she is then employed by the Company or another Subsidiary without
a break in service.

	 	(a)	 	Resignation by the Participant or Termination by the Company
or a Subsidiary other than for Cause: The unvested portion of the Option
will immediately terminate on the Participant’s last day of employment. The
vested portion of the Option will terminate at 12:01a.m. on the 91st day
following the Participant’s last day of employment (but not later than the
Expiration Date), provided that if the Participant dies during such 90 day
period, such portion of the Option will terminate no earlier than 12:01a.m. on
the first anniversary of the date of death (but not later than the Expiration
Date) and provided further that, if, upon such termination, the Participant is
entitled to severance benefits in the form of salary continuation, then the
vested portion of the Option will terminate at 12:01 a.m. on the 91st day
following the date that salary continuation is no longer payable to the
Participant (but not later than the Expiration Date).

	 	(b)	 	Retirement: If a Participant’s employment terminates for
any reason (other than for Cause, death or Disability) at a time when he or she
is eligible for Retirement, then the unvested portion of the Option will
immediately terminate on the Participant’s last day of employment, and the
vested portion of the Option will terminate upon the Expiration Date.

	 	(c)	 	Termination due to Death: The unvested portion of the
Option will immediately terminate on the date of death, and the vested portion
of the Option will expire upon the Expiration Date. Following the Participant’s
death, the right to exercise such vested portion will pass to the Participant’s
Beneficiary.

	 	(d)	 	Termination due to Disability: The unvested portion of
the Option that would otherwise have become vested during the 3 years following
Disability will continue to vest as scheduled (without regard to subsequent
status changes). The vested portion of the Option, including the portion that
becomes vested pursuant to the preceding sentence, will expire upon the
Expiration Date.

	 	(e)	 	Termination for Cause: Notwithstanding the foregoing
provisions of this Section 4, the entire Option, including the vested portion,
will terminate immediately upon the Participant’s termination of employment. To
the extent the Participant exercised any portion of the Option during the one
year period immediately prior to the date of such termination of employment for
Cause, the Company shall have the right to reclaim and receive from the
Participant all Shares delivered to the Participant upon such exercise, or to
the extent the Participant has transferred such Shares, the equivalent value
thereof in cash, and in each case upon receipt thereof, the Company shall return
the exercise price paid by the Participant.

	 	(f)	 	Proscribed Activity: If, during the Proscribed Period
but prior to a Change in Control, the Participant engages in a Proscribed
Activity, then any portion of the Option still outstanding shall terminate and
the Company shall have the right to reclaim and receive from the Participant all
Shares delivered to the Participant upon the exercise of the Option during the
one year period immediately prior to, or at any time following, the date of the
Participant’s termination of employment, or to the extent the Participant has
transferred such Shares, the equivalent value thereof in cash, and in each case
upon receipt thereof, the Company shall return the exercise price paid by the
Participant.

	 	5.	 	Change in Control. Notwithstanding anything contained herein to the contrary,
unless otherwise determined by the Committee prior to a Change in Control, the Option
will become fully vested and exercisable immediately prior to a Change in Control, and,
to the extent the Option is not cancelled upon such Change in Control pursuant to
Section 7 of the Plan, it shall remain outstanding until the Expiration Date, but
subject to earlier termination under the circumstances described in Section 4(e) and
(f) above. For purposes of this Section 5, the term Option shall refer only to those
Options that are outstanding at the time of the Change in Control and not to any
unvested Options that are terminated pursuant to Section 4 above, provided that, if (i)
the Participant’s employment was terminated by the Company other than for Cause or
Disability during the 12 month period prior to the Change in Control, (ii) during such
12 month period, the Participant does not engage in a Proscribed Activity, and (iii)
the Committee determines, in its sole and absolute discretion, that the decision
related to such termination was made in contemplation of the Change in Control, the
Participant shall be treated as if he or she had remained employed with the Company
until the date of the Change in Control.

	 	6.	 	U.S. Withholding Taxes. The Option will be treated as a non-qualified stock
option, and therefore will be treated as wages and subject to withholding taxes and
reporting. The Option may not be exercised unless the Participant makes arrangements
satisfactory to the Company to ensure that its withholding tax obligations will be
satisfied. This Section 6 shall only apply with respect to the Company’s U.S.
withholding obligations. The Company may satisfy any tax obligations it may have in
any other jurisdiction in any manner it deems, in its sole and absolute discretion, to
be necessary or appropriate.

	 	7.	 	Definitions.

	 	(a)	 	“Cause” shall have the meaning set forth in any individual,
valid, written agreement between the Participant and the Company or any
Subsidiary, or, if none exists, shall mean a determination of “Cause” under any
applicable Severance Plan, as in effect on the date of grant of the Option.
Notwithstanding the foregoing, unless otherwise set forth in any individual,
valid, written agreement between the Participant and the Company or any
Subsidiary, during the one year period following a Change in Control, in no
event shall a failure to meet performance expectations constitute Cause unless
such failure was willful.

	 	(b)	 	“Change in Control” occurs when:

	 	(i)	 	any individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the “1934 Act”)) (a “Person”) becomes the beneficial owner,
directly or indirectly, of thirty percent (30%) or more of the combined
voting power of the Company’s outstanding voting securities ordinarily
having the right to vote for the election of directors of the Company;
provided, however, that for purposes of this subparagraph (i), the
following acquisitions shall not constitute a Change of Control: (A) any
acquisition by any employee benefit plan or plans (or related trust) of
the Company and its subsidiaries and affiliates or (B) any acquisition by
any corporation pursuant to a transaction which complies with clauses
(A), (B) and (C) of subparagraph (iii) below; or

	 	(ii)	 	the individuals who, as of January 1, 2007,
constituted the Board of Directors of the Company (the “Board” generally
and as of January 1, 2007 the “Incumbent Board”) cease for any reason
to constitute at least a majority of the Board, provided that any person
becoming a director subsequent to January 1, 2007 whose election, or
nomination for election, was approved by a vote of the persons
comprising at least a majority of the Incumbent Board (other than an
election or nomination of an individual whose initial assumption of
office is in connection with an actual or threatened election contest,
as such terms are used in Rule 14a-11 of Regulation 14A promulgated
under the 1934 Act) shall be, for purposes of this Plan, considered as
though such person were a member of the Incumbent Board; or

	 	(iii)	 	there is a reorganization, merger or
consolidation of the Company (a “Business Combination”), in each case,
unless, following such Business Combination, (A) all or substantially
all of the individuals and entities who were the beneficial owners,
respectively, of the Company’s outstanding Shares and outstanding voting
securities ordinarily having the right to vote for the election of
directors of the Company immediately prior to such Business Combination
beneficially own, directly or indirectly, more than fifty percent (50%)
of, respectively, the then outstanding shares of common stock and the
combined voting power of the then outstanding voting securities
ordinarily having the right to vote for the election of directors, as
the case may be, of the corporation resulting from such Business
Combination (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 Business Combination, of the Company’s
outstanding Shares and outstanding voting securities ordinarily having
the right to vote for the election of directors of the Company, as the
case may be, (B) no Person (excluding any corporation resulting from
such Business Combination or any employee benefit plan or plans (or
related trust) of the Company or such corporation resulting from such
Business Combination and their subsidiaries and affiliates) beneficially
owns, directly or indirectly, 30% or more of the combined voting power
of the then outstanding voting securities of the corporation resulting
from such Business Combination and (C) at least a majority of the
members of the board of directors of the corporation resulting from such
Business Combination were members of the incumbent Board at the time of
the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination; or

	 	(iv)	 	there is a liquidation or dissolution of the
Company approved by the shareholders; or

(v) there is a sale of all or substantially all of the assets of the Company.

Notwithstanding anything in this Section 7 to the contrary, for purposes of
the acceleration of the payment pursuant to Section 5, a Change of Control
shall only be deemed to occur if such transactions or events would give rise
to a “change in ownership or effective control” under Section 409A of the
Code, and the rulings and regulations issued thereunder

	 	(c)	 	“Disability” means an illness or injury that entitles the
Participant to long-term disability payments under the Company’s Long Term
Disability Plan, as in effect from time to time.

	 	(d)	 	“Proscribed Activity” means any of the following:

	 	(i)	 	the Participant’s breach or violation of (A) any
written agreement between the Participant and the Company or any of its
Subsidiaries, including any agreement relating to nondisclosure,
noncompetition, nonsoliciation and/or nondisparagement, or (B) any legal
obligation it may have to the Company;

	 	(ii)	 	the Participant’s direct or indirect unauthorized
use or disclosure of confidential information or trade secrets of the
Company or any Subsidiary, including, but not limited to, such matters
as costs, profits, markets, sales, products, product lines, key
personnel, pricing policies, operational methods, customers, customer
requirements, suppliers, plans for future developments, and other
business affairs and methods and other information not readily available
to the public;

	 	(iii)	 	the Participant’s direct or indirect engaging or
becoming a partner, director, officer, principal, employee, consultant,
investor, creditor or stockholder in/for any business, proprietorship,
association, firm or corporation not owned or controlled by the Company
or its Subsidiaries which is engaged or proposes to engage in a business
competitive directly or indirectly with the business conducted by the
Company or its Subsidiaries in any geographic area where such business
of the Company or its Subsidiaries is conducted, provided that the
Participant’s investment in one percent (1%) or less of the outstanding
capital stock of any corporation whose stock is listed on a national
securities exchange shall not be treated as a Proscribed Activity;

	 	(iv)	 	the Participant’s direct or indirect, either on
the Participant’s own account or for any person, firm or company,
soliciting, interfering with or inducing, or attempting to induce, any
employee of the Company or any of its Subsidiaries to leave his or her
employment or to breach his or her employment agreement;

	 	(v)	 	the Participant’s direct or indirect taking away,
interfering with relations with, diverting or attempting to divert from
the Company or any Subsidiary any business with any customer of the
Company or any Subsidiary, including (A) any customer that has been
solicited or serviced by the Company within one (1) year prior to the
date of termination of Participant’s employment with the Company and (B)
any customer with which the Participant has had contact or association,
or which was under the supervision of Participant, or the identity of
which was learned by the Participant as a result of Participant’s
employment with the Company;

	 	(vi)	 	the Participant’s making of any remarks
disparaging the conduct or character of the Company or any of its
Subsidiaries, or their current or former agents, employees, officers,
directors, successors or assigns; or

	 	(vii)	 	the Participant’s failure to cooperate with the
Company or any Subsidiary, for no additional compensation (other than
reimbursement of expenses), in any litigation or administrative
proceedings involving any matters with which the Participant was
involved during the Participant’s employment with the Company or any
Subsidiary.

	 	(e)	 	“Proscribed Period” means the period beginning on the date of
termination of Participant’s employment and ending on the later of (A) the one
year anniversary of such termination date or (B) if the Participant is entitled
to severance benefits in the form of salary continuation, the date on which
salary continuation is no longer payable to the Participant.

	 	(f)	 	“Retirement” means termination of employment for any reason
(other than for Cause or by reason of death or Disability) upon or following
attainment of age 55 and completion of 10 years of service, or upon or following
attainment of age 65 without regard to years of service.

	 	 	 	8. Other Benefits. No amount accrued or paid under this Award shall be deemed
compensation for purposes of computing a Participant’s benefits under any retirement
plan of the Company or its Subsidiaries, nor affect any benefits under any other
benefit plan now or subsequently in effect under which the availability or amount of
benefits is related to the Participant’s level of compensation.EX-10.2

Exhibit 10.2

PERFORMANCE-BASED RESTRICTED STOCK RIGHTS

ISSUED UNDER

RYDER SYSTEM, INC. 2005 EQUITY COMPENSATION PLAN

2008 TERMS AND CONDITIONS

The following terms and conditions apply to the performance-based restricted stock rights (the
“PBRSRs”) granted by Ryder System, Inc. (the “Company”) under the Ryder System, Inc. 2005 Equity
Compensation Plan (the “Plan”), as specified in the Performance-Based Restricted Stock Rights Award
Notification (the “Notification”), to which these terms and conditions are appended. Certain terms
of the PBRSRs including the number of shares of Ryder common stock underlying the PBRSRs, are set
forth in the Notification. The Compensation Committee of the Company’s Board of Directors (the
“Committee”) shall administer the PBRSRs in accordance with the Plan. Capitalized terms used
herein and not defined shall have the meaning ascribed to such terms in the Plan or in the
Notification.

	 	1.	 	General. Each PBRSR represents the right to receive one Share on a future date
based upon the attainment of certain financial performance goals, on the terms and
conditions set forth herein, in the Notification and in the Plan, the applicable terms,
conditions and other provisions of which are incorporated by reference herein
(collectively, the “Award Documents”). A copy of the Plan and the documents that
constitute the “Prospectus” for the Plan under the Securities Act of 1933, have been
delivered to the Participant prior to or along with delivery of the Notification. In
the event there is an express conflict between the provisions of the Plan and those set
forth in any other Award Document, the terms and conditions of the Plan shall govern.
It is intended that the PBRSRs qualify as “performance-based compensation” for purposes
of Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”),
including any successor provisions and regulations.

The terms and conditions contained herein may be amended by the Committee as permitted by
the Plan; none of the terms and conditions of the PBRSRs may be amended or waived without
the prior approval of the Committee. Any amendment or waiver not approved by the
Committee will be void and have no force or effect. Any employee or officer of the
Company who authorizes any such amendment or waiver without the prior approval of the
Committee will be subject to disciplinary action up to and including forfeiture of his or
her PBRSRs and/or termination of employment (unless otherwise prohibited by law). All
decisions and determination made by the Committee relating to the PBRSRs shall be final
and binding on the Participant, his or her beneficiaries and any other person having or
claiming an interest under the Plan.

	 	2.	 	Financial Performance Goals; Performance Period. The PBRSRs will vest only if,
for the three-year period specified in the Notification (the “Performance Period”), the
Company’s Total Shareholder Return meets or exceeds the Total Shareholder Return for
the S&P Composite Index for the Performance Period as published by Standard & Poor’s as
the “S&P 500 TR”, or, if no such publication is available, based on a comparable
publication selected by the Committee (the “Performance Goal”). As used herein, the
term “Total Shareholder Return” shall mean the percentage change in the stock price or
index, as applicable, assuming reinvestment of dividends on the ex-dividend date.

	 	3.	 	Delivery of Shares. Subject to this Section 3 and Section 4 below, if the
Performance Goal is attained and the Committee otherwise approves the issuance of the
PBRSRs, the PBRSRs will vest, provided the Participant is, on the date of such
approval, and has been from the date of grant of the PBRSRs to the date of such
approval, continuously employed by the Company or one of its Subsidiaries. For
purposes of these terms and conditions, the Participant shall not be deemed to have
terminated his or her employment with the Company and its Subsidiaries if he or she is
immediately thereafter employed by the Company or another Subsidiary.

Upon vesting, the Shares subject to the vested PBRSRs will be transferred to an account
held in the name of the Participant by the Company’s independent stock plan administrator
and the Participant will receive notice of such transfer together with all relevant
account details.

	 	4.	 	Termination of PBRSRs; Forfeiture. The PBRSRs will terminate upon or following
the termination of the Participant’s employment with the Company and its Subsidiaries
as described below.

	 	(a)	 	Resignation by the Participant or Termination by the Company or a
Subsidiary: All outstanding PBRSRs will be forfeited and the Participant will
not have any right to delivery of Shares that did not vest prior to such
termination. If the Participant’s employment is terminated by the Company or a
Subsidiary for Cause (as defined in Section 11), then the Company shall have the
right to reclaim and receive (at the time and in the manner set forth in Section 3)
from the Participant any Shares delivered to the Participant upon the vesting of any
PBRSRs within the one year period before the date of the Participant’s termination
of employment, or to the extent the Participant has transferred such Shares, the
equivalent value thereof in cash.

	 	(b)	 	Termination by reason of Death, Disability or Retirement: If the
death, Disability (as defined in Section 11) or Retirement (as defined in
Section 11) occurs after the end of the Performance Period, the Participant (or his
or her Beneficiary, in the event of death) shall be entitled to receive the number
of Shares due to him or her under the Award. If the death, Disability or Retirement
occurs during the Performance Period and, based on actual performance during the
Performance Period the Participant would have received a payment under the Award but
for his or her death, Disability or Retirement, the Participant (or his or her
Beneficiary, in the event of death) will be entitled to receive a pro-rata number of
Shares based on the number of days worked during the Performance Period, payable at
the time and manner specified in Section 3 above. On the date of death, Disability
or Retirement, the Company shall calculate the pro-rata number of Shares that the
Participant would be entitled to receive if the Performance Goals are achieved and
shall cancel the balance of the PBRSRs to which the Participant will no longer be
entitled.

	 	(c)	 	Proscribed Activity: If, during the Proscribed Period (as
defined in Section 11) but prior to a Change of Control (as defined in Section 11
below), the Participant engages in a Proscribed Activity, then the Company shall
have the right to reclaim and receive from the Participant all Shares delivered to
the Participant upon the vesting of any PBRSRs during the one year period
immediately prior to, or at any time following, the date of the Participant’s
termination of employment, or to the extent the Participant has transferred such
Shares, the equivalent value thereof in cash.

	 	5.	 	Change of Control. Notwithstanding anything contained herein to the contrary,
unless otherwise determined by the Committee prior to a Change of Control, all
outstanding PBRSRs will become fully vested immediately prior to any such Change of
Control, and all Shares subject to such PBRSRs will be delivered to the Participant at
that time in accordance with Section 3 above. To the extent (i) Participant’s
employment was terminated by the Company other than for Cause or Disability within the
12 months prior to the date on which the Change of Control occurred, (ii) during such
12 month period the Participant did not engage in a Proscribed Activity, and (iii) the
Committee determines, in its sole and absolute discretion, that the decision related to
such termination was made in contemplation of the Change of Control, then the
Participant shall be treated as if he or she had remained employed with the Company
until the date of the Change of Control.

	 	6.	 	Rights as a Shareholder; Dividend Equivalents. The Participant will not have
the rights of a shareholder of the Company with respect to Shares subject to the PBRSRs
until such Shares are actually delivered to the Participant. However, the Company will
pay cash dividend equivalents with respect to each PBRSR at the same time and in the
same amount as cash dividends are paid on a Share.

	 	7.	 	U.S. Withholding Taxes. The PBRSRs will not be taxable until the Shares are
delivered, provided that cash dividend equivalents will be taxable to the Participant
as ordinary income, subject to wage-based withholding and reporting. The Shares when
delivered will be taxable to the Participant at their then fair market value as
ordinary income, subject to wage-based withholding and reporting. The Company will
first satisfy this withholding obligation by reducing the performance-based cash to be
paid at the time of such delivery in an amount sufficient to satisfy the withholding
obligations. If the amount of performance-based cash to be delivered is insufficient
to pay the taxes, the Company will reduce the number of Shares to be delivered to the
Participant in an amount sufficient to satisfy its withholding obligations (based on
the Fair Market Value of the Shares on the vesting date for the related PBRSRs). This
Section 7 shall only apply with respect to the Company’s U.S. withholding obligations.
The Company may satisfy any tax obligations it may have in any other jurisdiction in
any manner it deems, in its sole and absolute discretion, to be necessary or
appropriate.

	 	8.	 	Statute of Limitations and Conflicts of Laws. All rights of action by, or on
behalf of the Company or by any shareholder against any past, present, or future member
of the Board of Directors, officer, or employee of the Company arising out of or in
connection with the PBRSRs or the Award Documents, must be brought within three years
from the date of the act or omission in respect of which such right of action arises.
The PBRSRs and the Award Documents, shall be governed by the laws of the State of
Florida, without giving effect to principles of conflict of laws, and construed
accordingly.

	 	9.	 	No Employment Right. Neither the grant of the PBRSRs nor any action taken
hereunder shall be construed as giving any employee or any Participant any right to be
retained in the employ of the Company. The Company is under no obligation to grant
PBRSRs hereunder. Nothing contained in the Award Documents shall limit or affect in
any manner or degree the normal and usual powers of management, exercised by the
officers and the Board of Directors or committees thereof, to change the duties or the
character of employment of any employee of the Company or to remove the individual from
the employment of the Company at any time, all of which rights and powers are expressly
reserved.

	 	10.	 	No Assignment. A Participant’s rights and interest under the PBRSRs may not be
assigned or transferred, except as otherwise provided herein, and any attempted
assignment or transfer shall be null and void and shall extinguish, in the Company’s
sole discretion, the Company’s obligation under the PBRSRs or the Award Documents.

	 	11.	 	Definitions.

	 	(a)	 	“Cause” shall have the meaning set forth in any individual,
valid, written agreement between the Participant and the Company or any
Subsidiary, or, if none exists, shall mean a determination of “Cause” under any
applicable Severance Plan, as in effect on the date of grant of the PBRSRs.
Notwithstanding the foregoing, unless otherwise set forth in any individual,
valid, written agreement between the Participant and the Company or any
Subsidiary, during the one year period following a Change of Control, in no
event shall a failure to meet performance expectations constitute Cause unless
such failure was willful.

	 	(b)	 	“Change of Control” occurs when:

	 	(i)	 	any individual, entity or group (within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (the “1934 Act”)) (a “Person”) becomes the beneficial owner,
directly or indirectly, of thirty percent (30%) or more of the combined
voting power of the Company’s outstanding voting securities ordinarily
having the right to vote for the election of directors of the Company;
provided, however, that for purposes of this subparagraph (i), the
following acquisitions shall not constitute a Change of Control: (A) any
acquisition by any employee benefit plan or plans (or related trust) of
the Company and its subsidiaries and affiliates or (B) any acquisition by
any corporation pursuant to a transaction which complies with clauses
(A), (B) and (C) of subparagraph (iii) below; or

	 	(ii)	 	the individuals who, as of January 1, 2007,
constituted the Board of Directors of the Company (the “Board” generally
and as of January 1, 2007 the “Incumbent Board”) cease for any reason
to constitute at least a majority of the Board, provided that any person
becoming a director subsequent to January 1, 2007 whose election, or
nomination for election, was approved by a vote of the persons
comprising at least a majority of the Incumbent Board (other than an
election or nomination of an individual whose initial assumption of
office is in connection with an actual or threatened election contest,
as such terms are used in Rule 14a-11 of Regulation 14A promulgated
under the 1934 Act) shall be, for purposes of this Plan, considered as
though such person were a member of the Incumbent Board; or

	 	(iii)	 	there is a reorganization, merger or
consolidation of the Company (a “Business Combination”), in each case,
unless, following such Business Combination, (A) all or substantially
all of the individuals and entities who were the beneficial owners,
respectively, of the Company’s outstanding Shares and outstanding voting
securities ordinarily having the right to vote for the election of
directors of the Company immediately prior to such Business Combination
beneficially own, directly or indirectly, more than fifty percent (50%)
of, respectively, the then outstanding shares of common stock and the
combined voting power of the then outstanding voting securities
ordinarily having the right to vote for the election of directors, as
the case may be, of the corporation resulting from such Business
Combination (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 Business Combination, of the Company’s
outstanding Shares and outstanding voting securities ordinarily having
the right to vote for the election of directors of the Company, as the
case may be, (B) no Person (excluding any corporation resulting from
such Business Combination or any employee benefit plan or plans (or
related trust) of the Company or such corporation resulting from such
Business Combination and their subsidiaries and affiliates) beneficially
owns, directly or indirectly, 30% or more of the combined voting power
of the then outstanding voting securities of the corporation resulting
from such Business Combination and (C) at least a majority of the
members of the board of directors of the corporation resulting from such
Business Combination were members of the Incumbent Board at the time of
the execution of the initial agreement, or of the action of the Board,
providing for such Business Combination; or

	 	(iv)	 	there is a liquidation or dissolution of the
Company approved by the shareholders; or

(v) there is a sale of all or substantially all of the assets of the
Company.

Notwithstanding anything in this Section 11 to the contrary, for purposes of
the acceleration of the payment pursuant to Section 5, a Change of Control
shall only be deemed to occur if such transactions or events would give rise
to a “change in ownership or effective control” under Section 409A of the
Code, and the rulings and regulations issued thereunder.

	 	(c)	 	“Disability” means an illness or injury that entitles the
Participant to long-term disability payments under the Company’s Long Term
Disability Plan or any successor plan, as in effect from time to time.

	 	(d)	 	“Proscribed Activity” means any of the following:

	 	(i)	 	the Participant’s breach of any written agreement
between the Participant and the Company or any of its Subsidiaries,
including any agreement relating to nondisclosure, noncompetition,
nonsoliciation and/or nondisparagement;

	 	(ii)	 	the Participant’s direct or indirect unauthorized
use or disclosure of confidential information or trade secrets of the
Company or any Subsidiary, including, but not limited to, such matters
as costs, profits, markets, sales, products, product lines, key
personnel, pricing policies, operational methods, customers, customer
requirements, suppliers, plans for future developments, and other
business affairs and methods and other information not readily available
to the public;

	 	(iii)	 	the Participant’s direct or indirect engaging or
becoming a partner, director, officer, principal, employee, consultant,
investor, creditor or stockholder in/for any business, proprietorship,
association, firm or corporation not owned or controlled by the Company
or its Subsidiaries which is engaged or proposes to engage in a business
competitive directly or indirectly with the business conducted by the
Company or its Subsidiaries in any geographic area where such business
of the Company or its Subsidiaries is conducted, provided that the
Participant’s investment in one percent (1%) or less of the outstanding
capital stock of any corporation whose stock is listed on a national
securities exchange shall not be treated as a Proscribed Activity;

	 	(iv)	 	the Participant’s direct or indirect, either on
the Participant’s own account or for any person, firm or company,
soliciting, interfering with or inducing, or attempting to induce, any
employee of the Company or any of its Subsidiaries to leave his or her
employment or to breach his or her employment agreement;

	 	(v)	 	the Participant’s direct or indirect taking away,
interfering with relations with, diverting or attempting to divert from
the Company or any Subsidiary any business with any customer of the
Company or any Subsidiary, including (A) any customer that has been
solicited or serviced by the Company within one (1) year prior to the
date of termination of Participant’s employment with the Company and (B)
any customer with which the Participant has had contact or association,
or which was under the supervision of Participant, or the identity of
which was learned by the Participant as a result of Participant’s
employment with the Company;

	 	(vi)	 	the Participant’s making of any remarks
disparaging the conduct or character of the Company or any of its
Subsidiaries, or their current or former agents, employees, officers,
directors, successors or assigns; or

	 	(vii)	 	the Participant’s failure to cooperate with the
Company or any Subsidiary, for no additional compensation (other than
reimbursement of expenses), in any litigation or administrative
proceedings involving any matters with which the Participant was
involved during the Participant’s employment with the Company or any
Subsidiary.

	 	(e)	 	“Proscribed Period” means the period beginning on the date of
termination of Participant’s employment and ending on the later of (A) the one
year anniversary of such termination date or (B) if the Participant is entitled
to severance benefits in the form of salary continuation, the date on which
salary continuation is no longer payable to the Participant.

	 	(f)	 	“Retirement” means termination of employment for any reason
(other than for Cause or by reason of death or Disability) upon or following
attainment of age 55 and completion of 10 years of service, or upon or following
attainment of age 65 without regard to years of service.

	 	 	 	12. Other Benefits. No amount accrued or paid under the PBRSRs shall be deemed
compensation for purposes of computing a Participant’s benefits under any retirement
plan of the Company or its Subsidiaries, nor affect any benefits under any other
benefit plan now or subsequently in effect under which the availability or amount of
benefits is related to the Participant’s level of compensation.

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